The Great Depression

These flashcards cover the key concepts related to the causes and effects of the Great Depression, important figures, and government responses.

What were some underlying causes of the Great Depression?

Stock Market Crash, Lack of Diversification in industries, wealth gap, and consumer debt.

What effect did the Great Depression have on employment in America?

It caused an estimated 25% of the nation to be unemployed.

What was the stock market trend leading up to the Great Depression?

A boom in stock prices followed by a sharp crash in October 1929.

What is the significance of the Smoot-Hawley Tariff?

It was one of the highest tariffs in US history, exacerbating the global economic downturn.

How did the Great Depression affect farm income?

Farm income decreased significantly from $12 billion in 1929 to $5 billion in 1932.

What role did consumer debt play in the Great Depression?

Many consumers relied on credit to maintain living standards, leading to defaults and bankruptcies.

What was the impact of the Dust Bowl during the Great Depression?

It caused severe hardship for farmers due to drought and over-cultivation, contributing to the economic crisis.

What was Hoover's approach to handling the Great Depression?

He promoted 'rugged individualism' and voluntary measures with insufficient government intervention.

What major program did FDR implement in response to the Great Depression?

The New Deal, which included the Agricultural Adjustment Act and the Federal Emergency Relief Administration.

What was one of the lasting legacies of the New Deal?

The establishment of the welfare state and increased federal government regulations on the economy.