Causes and Effects of the Great Depression

These flashcards cover the key concepts and events related to the causes and effects of the Great Depression as discussed in the lecture notes.

What were the weaknesses in the American economy in the 1920s that contributed to the Great Depression?

Weaknesses included wage inequality, reliance on credit, and overproduction combined with a lack of consumer spending.

What event marked the beginning of the Great Depression?

The Stock Market Crash of 1929.

What was a significant impact of the stock market crash on banks?

The crash led to a loss of confidence, resulting in numerous bank failures.

What percentage of American workers were unemployed by 1933?

Nearly 25 percent.

What was the Hawley-Smoot Tariff and its impact?

A tariff that raised taxes on foreign imports, leading to retaliation from other countries and a decline in international trade.

Who were the two economists mentioned regarding the causes of the Great Depression?

Milton Friedman and John Maynard Keynes.

What did Milton Friedman argue caused the Great Depression?

A contraction in the money supply.

According to John Maynard Keynes, what led to the Great Depression?

The lack of government interference in the economy.

How did the Great Depression affect American farmers?

Farmers faced falling prices, rising debt, and many lost their farms.

What were Hoovervilles?

Makeshift shantytowns built by homeless people during the Great Depression.

What was the Dust Bowl?

A severe drought that, combined with poor farming practices, led to massive dust storms and severe agricultural damage.

What program did FDR create to assist young men during the Great Depression?

The Civilian Conservation Corps (CCC).

What was the significance of the Social Security Act?

It established a pension system for retirees and unemployment insurance.

What was the National Labor Relations Act?

It recognized the right of employees to join unions and engage in collective bargaining.

What was the impact of Eleanor Roosevelt on the New Deal?

She advocated for civil rights and uplifted women and minority groups within the policies.

What was Roosevelt's Court-Packing Scheme?

A proposal to add more justices to the Supreme Court to favor New Deal policies.

What did the WPA achieve during the New Deal?

It provided jobs for millions and significantly improved national infrastructure.

How did the New Deal change the role of the federal government?

It expanded the government's responsibility in economic welfare and intervention.