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1. Explain the causes of the Stock Market Crash/Great Depression.
The Stock Market Crash of 1929 was caused by a combination of factors: excessive buying on margin, where investors borrowed money to purchase stocks, leading to inflated stock prices; overspeculation, where stocks were bought based on the expectation of quick profit rather than their actual value; panic selling, where fear of losing money led to massive sell-offs; and a reckless business system, characterized by unregulated financial practices and lack of oversight, which created an unstable economic environment.
1. Explain the impacts of the Great Depression on Americans.
he Great Depression had severe and wide-reaching impacts on Americans, including widespread unemployment, with rates soaring to about 25% as businesses closed or reduced their workforce; significant loss of income, leading to increased poverty levels and diminished spending power; a collapse in the banking system, resulting in bank failures and loss of savings for many; food shortages and malnutrition, as families struggled to afford basic necessities; and psychological impacts, such as increased stress and anxiety, which contributed to a decline in mental health. The era also saw a rise in homelessness and the establishment of shantytowns, known as 'Hoovervilles,' named after President Herbert Hoover. Additionally, the Great Depression fostered a sense of resilience and led to social changes, such as increased activism for workers' rights and the emergence of government programs aimed at economic recovery.
1. Explain the three parts to the New Deal.
The New Deal, introduced by President Franklin D. Roosevelt, consisted of three key components: Relief, Recovery, and Reform. Relief aimed to provide immediate assistance to those suffering from the economic distress of the Great Depression through programs like the Civilian Conservation Corps (CCC) and the Federal Emergency Relief Administration (FERA). Recovery focused on stimulating the economy and restoring jobs, which included efforts such as the National Industrial Recovery Act (NIRA) and the Public Works Administration (PWA) that promoted infrastructure development. Reform sought to implement lasting changes to prevent future economic downturns, exemplified by the creation of the Securities and Exchange Commission (SEC) and the Social Security Act, which aimed to regulate financial markets and provide support for the elderly and unemployed.