US History - Great Depression

What caused the Great Depression – Stock Market Crash

Buying on margin and over speculation increased people’s debt

Immediate effect of Stock Market Crash

People went into debt when the market collapsed

What caused the Great Depression – Banking Crisis

Banks closed because the government didn’t regulate the stock market

Immediate effect of Banking Crisis

People lost all their savings

What caused the Great Depression – Overproduction/Underconsumption

Too many goods were produced and not enough people were buying

Immediate effect of Overproduction/Underconsumption

Prices dropped and unemployment increased

What caused the Great Depression – Federal Reserve Raised Interest Rates

Borrowing money became more expensive for businesses

Immediate effect of Raised Interest Rates

Economy slowed; businesses struggled

What caused the Great Depression – Hawley-Smoot Tariff

U.S. raised tariffs and Europe raised theirs too

Immediate effect of Hawley-Smoot Tariff

Worldwide trade declined

Significance of 1929

Stock market crash and start of the Great Depression

Why farmers didn’t prosper in the 1920s

Overproduction caused low crop prices and low income

Effects of the Great Depression

Economic collapse, high unemployment, business and bank failures, foreclosures, Hoovervilles, breadlines

Intent of the Mexican Repatriation Act

Deport Mexican immigrants and Mexican Americans to reduce job competition

Cause of the Dust Bowl

Over-farming, drought, heat, and locusts

How farmers responded to the Dust Bowl

Moved to California to find work as migrant laborers

How the Depression changed attitudes toward government

People wanted more government involvement to solve problems

Hoover’s response to the Great Depression

Limited government, rugged individualism, conservative approach, Hoovervilles

Roosevelt’s response to the Great Depression

Liberal approach, strong government involvement, New Deal, fireside chats

How Roosevelt justified expanding government (New Deal)

Old methods weren’t working; government needed to help people

How the New Deal helped farmers

AAA paid farmers not to grow crops

How the New Deal changed American political thinking

People believed government should help solve economic and social problems

How New Deal agencies changed the role of government

Government became more involved in everyday life

Contributions of Eleanor Roosevelt

Supported the poor, women, and African Americans’ civil rights

Republican response to the New Deal

Thought it threatened free enterprise, was similar to socialism, and promoted dependence on government

Who was Huey Long?

New Deal critic who wanted to redistribute wealth

Who was Father Coughlin?

New Deal critic; proposed guaranteed income for the elderly

Who was Francis Townsend?

New Deal critic; proposed guaranteed income for the elderly

Why the Supreme Court blocked New Deal programs

They believed they were unconstitutional and violated property rights (5th) and states’ rights (10th)

How Roosevelt responded to Court blocking programs

Tried to pack the Supreme Court with more justices

Why Congress blocked the court-packing plan

It gave the president too much power and violated checks and balances

Purpose of TVA, CCC, and WPA

To create jobs and improve standard of living

Purpose of Social Security Administration

Provided income to elderly and disabled people

How Social Security changed government

Government became responsible for people’s economic welfare

Purpose of the SEC

Regulate the stock market and protect investors

How Roosevelt addressed the banking crisis

Declared a Bank Holiday and created the FDIC to insure deposits

Role of the FHA

Helps people get mortgage loans to buy homes