History Great Depression Study Review

Year of the stock market crash

1929

Name of a market that is going up

bull market

Name of a market that is going down

bear market

Major problems of the Great Depression

Sales of goods and construction of factories falling rapidly while stock values climbed.

What was the single most devastating day in the history of the NY stock exchange?

Black Tuesday

In 1929, how many banks closed?

659

What percentage of the nations total banks had failed by 1933?

25%

Between 1929 and 1932 how many businesses went bankrupt?

over 85,000

What was the unemployment rate in 1929?

3%

What was the unemployment rate in 1933?

25%

What were shantytowns?

Towns comprised of shacks mainly lived in by migrants searching for work

Why was there racial violence during this time?

Whites were angry with African Americans and Mexican Americans because of job competition

How many African Americans died by lynching in 1933?

24

How many farms were foreclosed on between 1929 and 1932?

400,000

What were the societal consequences of the Depression?

Increased malnutrition, schools shut down, suicide rates rose, and the psychological effect of being poor/distrust

What was the Dust Bowl?

A period of extreme drought and frequent dust storms during the 1930’s

What region endured the Dust Bowl (What north state to what south state)

North Dakota to Texas

Why did the Dust Bowl happen?

The land was over-plowed and overproduced, along with lack of crop rotation and rain leading to very fine dry soil that would easily pick up with the wind

What was Herbert Hoover known as

The man of “the people”

What is the term used by Hoover where he believed the Depression would sort itself out without any intermission needed?

Laissez-faire

What were “Hoovervilles”?

Shantytowns

What were “Hoover blankets”?

Newspapers

What were “Hoover flags”?

Empty pockets

What major American city is very close to the Hoover Dam?

Las Vegas

What is The Bonus Army?

A group of veterans

What happened with The Bonus Army?

A group of veterans marched, demanding ensured pay, Hoover told them no and ordered the Army to remove them. Many people were injured, which deeply hurt Hoover’s reputation.

What happened at the 1923 presidential elections?

Roosevelt received a landslide victory

What was the Wagner Act?

Established the act of the federal government supporting the right of workers to join unions and engage in collective bargaining.

What did the labor reform establish?

Minimum and maximum wages, first minimum hourly wage and 44 hour work week.

What did the social security act establish?

Insurance for people 65 or older, unemployment compensation, and aid to families in need

Who was Frances Perkins?

First female cabinet member, major factor in creating in social security.

What was seen as an escape from the reality in the 1930’s?

Going to the movies

What percentage of the population attended a movie at least once a week in the 1930’s?

65%

What is “welfare capitalism”?

A system of government that combines free-range capitalism with social welfare.

What is a stock

A fraction of ownership in a corporation

What is a share?

not on test

Who won the presidency in 1920?

Warren G. Harding

Who won the presidency in 1924?

Calvin Coolidge

Who won the presidency in 1928

Herbert Hoover

Who ran against Hoover in 1928, and why was this significant?

Alfred E. “Al” Smith, he was the first Roman Catholic to be nominated for presidency candidate

How would uneven wealth distribution be a fiscal problem?

The money stops circulating which stops the economy, because money circulation is what runs the economy. The poor run out of money and the rich don’t spend their money.

What does buying on margin mean?

free card

What is the Federal Reserve System?

The central bank of the United States, founded to provide a safer, more reliable money system

Who was Roger Babson and what warning did he give to the economy?

He was an American entrepreneur, economist, and founder. He stated “sooner or later a crash is coming, and it may be terrific.”

What does the term hobo mean?

A migratory worker, however they were seen as independent, proud, and industrious workers instead of lazy.

What does foreclosure mean?

When a lender reclaims control of a property due to the owner not making the necessary payments

Who were the Okies?

Displaced farmers, searching for a job living in makeshift shelters.

What does rugged individualism mean?

The American belief that individuals are capable of doing anything without the intervention of the government

What does cooperative mean?

A group of people that come together to voluntarily fix issues facing the nation through a jointly controlled enterprise.

What did the Snoot-Hawley Tariff Act do?

Raised US taxes on over 20,000 products by 20%. The intention was for it to shield the economy but it made the Depression worse by weakening the connection of the US with other countries

What’s the nickname given to all the programs Roosevelt enacted to pull the US out of the depression?

The New Deal

What does FDIC stand for?

Federal Deposit Insurance Corporation

Is the FDIC still around today?

Yes

How much money does the FDIC protect?

up to $250k

What does CCC stand for?

Civilian Conservation Corp

What did the CCC do?

Supplied 3 million men with jobs, got money circulating, and boosted overall moral

What does AAA stand for and what did it do?

Agricultural Adjustment Act and they paid farmers to NOT plant crops

What does boondoggles mean?

An old word for a waste of time

What was the court packing scheme?

Roosevelt’s failed attempt at getting 6 new Supreme Court Judges in the court. The idea was to retire the older judges or have them die so he could fill the court with judges that would vote in favor of all his bills.

Who was Huey P. Long?

Nicknamed “the kingfish” he proposed the idea of “sharing the wealth” to help support the poor during the depression.

Who was Francis Townsend?

A doctor/veteran that proposed a pension plan: every American over 60 would recieve $200 monthly

Who was Father Charles Coughlin?

The most famous priest in the country, anti-semitic, and against communism.