Chapter 25 Summary

What conditions in the 1920s led to the 1929 stock market crash?

Easy credit, speculation, and a culture of risk-taking set the stage for economic collapse.

Why did the crash affect people who weren’t invested in the stock market?

Bank failures and loan foreclosures spread economic hardship throughout society.

What were some major causes of the economic spiral after the crash?

International economic instability, income inequality, and widespread panic

Why did the automotive and construction industries suffer post-crash?

Lack of consumer funds led to reduced purchases and halted construction projects.

What was President’s Hoover’s core belief regarding government role?

He believed in individualism and opposed direct government intervention

What was the Reconstruction Finance Corporation?

A Hoover program aimed at stabilizing financial institution to boost public confidence

Why did Hoover’s relief efforts largely fail?

They were too limited, delayed, and didn’t adequately help individuals in need.

What was the Bonus Army, and what was the outcome of their protest?

WWI veterans demanding early bonus payments; Hoover sent the military to disband them violently, worsening his image.

Which groups were hit hardest by the Great Depression?

African Americans, rural Americans, and migrant farmers (especially Dust Bowl refugees).

What caused the Dust Bowl?

Over-farming and prolonged drought led to massive dust storms and land degradation

Who were the "Okies," and what challenges did they face?

Dust Bowl refugees, mainly from Oklahoma, who moved to California and were met with discrimination.

How did Americans cope with the Depression in their daily lives?

They relied on charity, shared resources, begged, and turned to entertainment for escape.

How did American cultural attitudes shift during the Depression?

From rugged individualism to a stronger emphasis on community support and interdependence.

Why did Americans initially support Hoover?

He followed the successful free-market Republican tradition that had dominated the 1920s.

What ultimately doomed Hoover’s presidency?

His slow and limited response to the Depression and refusal to provide direct federal aid.

Did Hoover have any achievements during his presidency?

Yes, particularly in foreign policy (especially Latin America, Good Neighbor Policy) and improving Native American living conditions.

What was the main philosophical disconnect between Hoover’s approach and the Depression’s demands?

The situation required proactive federal intervention, while Hoover clung to limited government ideals.