the great depression test

Deflation

decrease in general price level of goods and services

credit

arrangement in which consumers agreed to buy now and pay later

Dow Jones Industrial Average

index of 30 major stocks that is barometer of stock market's health

speculation

buying stocks and bonds on chance of a quick profit, while ignoring the risks

buying on margin

paying a small percentage of stock's price and borrowing the rest from the bank

"Black Tuesday"

Stock market crashes on October 29, 1929

Great Depression

Period from 1929-1940 in which economy plummeted and unemployment skyrocketed

Hawley-Smoot Tariff Act

highest protective tariff in U.S. history

Shantytowns

little towns consisting of shacks

Soup kitchens

offered free or low-cost food

Bread lines

lines of people waiting to receive food from charitable organizations

Dust Bowl

Drought and winds led to topsoil being blown away

Direct Relief

cash payments or food provided by government to poor

Bonus Army

WWI veterans who marched on Washington demanding their $1,000 bonus pay before the 1945 due date.

causes of the Great Depression

credit buying, overproduction, less consumer spending, falling stocks

effects of the Great Depression, but short and long term

Suicide rate between 1928-1932 increased 30%
3x people admitted to state mental hospitals
People learned to be thrifty and save (carry this rest of lives)
Families learned to help one another, building community

"Hoovervilles"

Shantytowns

causes of the Dust Bowl

Farmers had overgrown crops on grasslands, depleting it of nutrients

Rugged individualism

Herbert Hoover's belief that people must be self-reliant and not depend upon the federal government for assistance.

the candidates running for president in 1932

Roosevelt and Hoover

what problems farmers faced in the 1920s

grow more crops in hopes of making more money
Greater supply drops price even further

How did Hoover try to help the economy after the stock market crash

Asked businesses not to lay off employees

Was the Great Depression an American or a World event?

World wide

Hoover's view on direct relief

Believed charities and organizations should handle that

what Hoover Dam had originally been known as

Boulder Dam

who opened up soup kitchens in America's cities

Al Capone

How were children affected by the depression?

suffered from malnutrition

what the overall unemployment rate was during the Great Depression

1 in 4 American

what psychological effects were left on the American public due to the Great Depression

Suicide rate between 1928-1932 increased 30%