The Great Depression Flashcards

Flashcards for reviewing The Great Depression lecture notes.

What event is considered a prominent, visible sign that something was very wrong in 1929, though not the only cause of the economic downturn?

The stock market crash

How many people were displaced from Illinois to Louisiana as a result of the Great Mississippi Flood of 1927?

640,000

What percentage did the average cost of stocks rise from 1921 to September 1929?

600%

What does it mean to buy stocks 'on margin'?

Paying just 10% of the stock price and putting the rest on credit

What were the names of the days associated with the Stock Market Crash of 1929?

Black Thursday, Black Monday, and Black Tuesday

By how much did the stock market fall from its previous high by the summer of 1932?

89%

What was President Hoover's background in disaster relief?

He had been called 'The Great Humanitarian' for his handling of the Great Mississippi Flood (1927).

What was President Hoover's belief regarding the US Constitution and action against the Great Depression?

He did not believe the US Constitution gave him the power to take the kinds of actions necessary to address the Great Depression.

By 1933, what percentage of their previous value were stocks worth?

20%

What percentage of US banks failed by 1933?

Half (50%)

What level did unemployment reach by 1933?

Almost 30%

What was Langston Hughes doing from 1934-1935?

Living in California

When had the Great Depression already begun for farmers?

1920

When World War I ended, what affect did this have on farmers being able to payback their loans?

Less demand for crops after end of WWI – unable to pay back loans

What was the total agricultural income in the US between 1919-1921

total agricultural income in the US falls from $10 billion to $4 billion

Explain what tariffs are

Taxes on imported agricultural goods

What was the purpose of the Agricultural Marketing Act in 1929?

Loans to farm co-ops

What years are known as 'The Dirty Thirties'?

The Dust Bowl years

What practices exposed topsoil leading to the Dust Bowl?

Tilling, cutting down trees, getting rid of native prairie grasses

Name one significant dust storm from this time

5/11-12/1934: 2-day long storm, 4/14/1935: 'Black Sunday'

What was one thing that the Farmer's Holiday Association wanted?

Wanted the government to set price controls on farm goods, pay for surplus products

What did Penny Auctions do?

Community action/support – gave property back to original owners

What states did the Farmers who moved during the internal migration move to?

West Coast (California)

What were the 3 R's of the New Deal?

RELIEF, RECOVERY, and REFORM

What as the goal of the AAA?

lower supply and stabilize market

What steps were taken during the Soil Conservation Service?

Erosion control–planting trees for wind barriers, buying back fields and planting native grasses, better farming practices, etc

What does FSA stand for?

Farm Security Administration

What was the purpose of the Rural Electrification Act?

Loans to install electricity in homes and structures in rural areas

Recognizing that the Tennessee Valley was one of the worst hit areas during the Great Depression, what did the TVA do?

Damming the river provided: flood control, navigability, electricity production, jobs

What good did the works Progress Administration do for the US?

500k miles of highway; 1 million bridges; 2500 hospitals; 1000 airports 5900 schools; 85k court houses, police and fire houses, arenas, paid for art, documentation of life in the 1930s

What was the goal of the Federal Act Project

create a sense of shared American culture

What did the Civilian Conservation Corps aim to do?

Aimed at young men coming of age during Great Depression

What did the Fair Labor Standards Act introduce?

Minimum wage, Part of the push for the 8-hour work day, Overtime pay (>40 hours)

What areas did the Social Security Act create?

Guarantees retired workers 65+ income after retirement (“Social Security”), Unemployment insurance, Old-age assistance (welfare, pensions), Aid for dependent children, Creation of Social Security numbers (SSN)