U.S. History 13.1 - 13.3 Review

What was the business cycle?

The periodic growth and contraction of the economy.

Who was Herbert Hoover?

The president when the Great Depression began; blamed for the Depression and lost the 1932 election

What was speculation?

Making risky inventions in hopes to make a larger profit

What was Black Tuesday?

October 29, 1929, when stock prices fell sharply during the stock market

What was the Hawley-Smoot Tariff?

A tax on imports to protect American businesses that ended up hurting international trade, as European countries responded with their own tariffs.

How did overproduction hurt the economy?

Businesses and farmers produced more goods than people could afford to buy.

How did unequal wealth contribute to the Depression?

Wealth was concentrated among the rich, so a majority of Americans could not afford the goods that businesses were producing.

How did easy credit contribute to economic problems?

People borrowed and spent more than they could afford, creating large amounts of debt.

Why was buying stocks on margin risky?

People used borrowed money to buy stocks, so they could lose money they didn’t actually have.

How did the stock market crash affect banks?

People rushed to withdraw their money, causing many banks to run out of money and fail.

How did the stock market crash affect businesses?

Businesses had less money and less customers, so they had to cut production, lessen wages and work hours, and lay off workers.

How did the Great Depression spread to other countries?

Many European countries depended on American loans, which were reduced due to the Depression.

What were the major causes of the Great Depression?

Overproduction, Underconsumption, Unequal Wealth Distribution, Speculation, Personal Debt from Buying on Credit

What did Friedman believe caused the Depression?

The Federal Reserve's policies and bank failures left too little money circulating in the economy.

What did Keynes believe caused the Depression?

The government failed to address economic problems effectively. He supported increased government spending to keep people employed during downturns.

What did Mises and Hayek believe caused the Depression?

They criticized centralized economic planning and government management of the economy.

What is a bread line?

A line of people waiting to receive free food from charities or government agencies.

What were Hoovervilles?

Makeshift communities where homeless people lived during the Great Depression; named after Hoover, the person they blamed.

What is a tenant farmer?

A farmer who rents land from a landowner to farm it.

What was the Dust Bowl?

A region of the Great Plains that suffered from severe drought and dust storms during the 1930s, destroying farmland and forcing families to move.

Who were the Okies?

Refugees who left their farms in the Dust Bowl region to find work elsewhere, such as California and other western states.

How did farming practices contribute to the Dust Bowl?

Farmers removed natural grasses and heavily famed the land, leaving the soil exposed to wind erosion.

What geographical conditions contributed to the Dust Bowl?

Severe drought, limited rainfall, strong winds.

How did the Great Depression affect family life?

Parents worried about losing work, children left school, teens left their families to relieve burdens, families separated.

Why were African Americans especially affected by unemployment during the Great Depression?

Faced discrimination; “last hired, first fired”.

How did the Great Depression affect Mexican Americans?

Job competition, discrimination, repatriation (pressured or forced to return to Mexico).

How did migration during the Great Depression affect different states?

Some rural areas lost residents while cities and areas with more jobs gained residents.

How did the Great Depression change farming in some areas?

Wealthier farmers bought cheap abandoned land from the Okies and created larger commercial farms.

What was Hoover’s policy of localism?

The belief that state and local governments, rather than the federal government, should provide most economic relief.

What was the Reconstruction Finance Corporation (RFC)?

A federal agency that gave emergency loans to banks, railroads, and large businesses.

What was trickle-down economics?

The idea that helping banks and large businesses would eventually benefit smaller businesses and workers.

What was the purpose of the Hoover Dam?

Provide power for millions, provide irrigation for farmland, provide jobs for thousands.

Who were the Bonus Army?

World War I veterans who marched to Washington in 19332 to demand their promised bonuses early.

Why did the Bonus Army hurt Hoover’s reputation?

Hoover responded by ordering troops to remove the veterans, making him seem uncaring toward struggling Americans.

What was Franklin D. Roosevelt’s main approach to the Great Depression?

The government should take a more direct active role in providing relief and creating jobs.

What was the New Deal?

A series of programs and laws created by Roosevelt to promote relief, recovery, and reform.

What were fireside chats?

Radio broadcasts in which Roosevelt explained issues and government programs directly to the people.

What did the Federal Deposit Insurance Corporation (FDIC) do?

Insured people’s bank deposits so they would not lose their savings if a bank failed.

What did the Tennessee Valley Authority (TVA) do?

Built dams to control flooding and generate electricity in the Tennessee Valley.

What did the Civilian Conservation Corps (CCC) provide?

Jobs for young men working on environmental conservation projects.

What did the National Recovery Administration (NRA) do?

Regulated production, prices, and wages to help businesses and workers.

What did the Public Works Administration (PWA) do?

Created jobs by funding construction projects such as dams, bridges, airports, and public buildings.

How did Eleanor Roosevelt help during the Great Depression?

She traveled around the country promoting help for women, children, and poor people.

How did Hoover and Roosevelt differ in their approaches to the Depression?

Hoover favored limited federal intervention and local relief, while Roosevelt used the federal government to provide direct relief and create jobs.

What did conservatives criticize about the New Deal?

They believed it gave the federal government too much power, increased debt, and threatened free businesses.

Why did some socialists and communists criticize the New Deal?

They believed that it did not do enough to help poor and working Americans.

What did Father Charles Coughlin criticize about the New Deal?

He eventually argued that the New Deal did not do enough to help Americans.

What did Huey Long want to do with the nation’s wealth?

”Share Our Wealth” plan, tax the wealthy and large corporations and redistribute the money to poorer Americans.

What was Francis Townsend’s proposal?

He wanted the government to give people aged 60 and older $200 a month.

What was the Agricultural Adjustment Administration (AAA)?

Paid farmers to reduce production and raise crop prices, but made food more expensive, and some tenant farmers lost jobs or were excluded.