Great Depression

Siler US History

Q: What were the major causes of the Great Depression?

Tariffs, overproduction, Dust Bowl, easy credit, unequal income, stock market crash.

Q: What did high tariffs cause?

Other countries couldn’t pay their war debts → less global trade.

Q: What caused overproduction?

Factories and farms produced more goods than people could afford to buy.

Q: What was the Dust Bowl?

A: Severe drought + dust storms in the Great Plains.

Q: Who were the “Okies”?

Farmers who moved west (mainly to California) during the Dust Bowl.

Q: Why was easy credit a problem?

A: People borrowed too much money and couldn’t pay it back.

Q: What does ‘unequal distribution of income’ mean?

A: Wealth gap; rich got richer while most families had little savings.

Q: What was the Dow Jones Industrial Average?

A: A measure of stock market health.

Q: What happened during the Stock Market Crash of 1929?

A: Prices fell, panic selling, market collapsed — signaled start of Great Depression.

Q: What does it mean that banks were “unregulated”?

A: No rules; banks could invest your money however they wanted.

Q: What were bank runs?

A: Everyone trying to withdraw money at once → banks ran out and closed.

Q: What was unemployment like in 1932?

25% unemployment.

Q: Who were forgotten men?

A: Men traveling the country looking for jobs.

Q: What was the Bonus Army?

A: WWI veterans who marched to D.C. asking for early bonus payment.

Q: Why did people go to movies during the Depression?

A: Escape from reality.

Q: What was Hoover’s economic belief?

Laissez-faire and rugged individualism.

Q: What is “rugged individualism”?

Belief that people should solve their own problems without government help.

Q: What were Hoovervilles?

Shantytowns named after Hoover because people blamed him for the Depression.

Q: What was the Federal Loan Bank Act?

Lowered mortgage rates; let farmers refinance.

Q: What was the Reconstruction Finance Corporation (RFC)?

Gave loans to banks, railroads, and big businesses.

Q: Why was Hoover criticized for the RFC?

People felt he helped big businesses, not regular citizens.

What was the new deal

A: FDR’s plan to fix the Depression using big government programs.

Q: Who won the election of 1932?

FDR (defeated Hoover).

Q: What were the “First 100 Days”?

Period of major reforms and new programs under FDR.

Q: What was the 1933 Bank Holiday?

Closed all banks to restore trust and stop bank runs.

Q: What were the goals of the New Deal?

Relief, Recovery, Reform.

Q: What did the CCC do?

Gave young men jobs planting trees and conservation work.

What did the WPA do

A: Built roads, airports, schools, and public buildings.

Q: What did the TVA do?

Built dams → electricity, flood control, jobs in the South.

Q: What is eminent domain?

Government can take private property for public use (with payment).

Q: What did the NRA do?

Allowed unions to bargain; set fair prices and standards.

Q: What did the Social Security Act do?

Provided pensions for the elderly, disabled, unemployed.

What did the FDIC do?

Insured bank deposits to prevent bank runs.

Q: Who opposed the New Deal?

Business leaders and the Supreme Court.

Q: Why was the AAA declared unconstitutional?

Government paying farmers to grow less was seen as overreach.

Q: What was FDR’s “court-packing” plan?

Wanted to add more justices to protect the New Deal.

Q: What does the SEC do?

Regulates the stock market and prevents fraud.

Q: What did the Fair Labor Standards Act do?

Minimum wage, limited hours, ended child labor.

Q: What actually ended the Great Depression?

WWII (job creation + increased production).

Q: What were the results of the Great Depression/New Deal?

A: Stronger federal gov, safety nets (Social Security), bank/market reforms, and many federal programs.