Great Depression 8th grade

Radical

Desires big and fast societal changes to address unfairness.

Conservative

Prefers tradition and gradual change to avoid potential problems.

Liberal

Believes in using government to promote fairness and protect rights.

Speculation

Engaging in risky investments.

Buying on margin

Paying only 10% of stock price, hoping to pay back later with profits.

Banking collapses

Failures leading to loss of individual savings and funding.

Hawley-Smoot Tariff Act of 1930

Raised tariffs to protect US products but provoked international backlash.

Tariff

A tax on imported and exported goods.

Dust Bowl

Severe drought that devastated agriculture and displaced farming families.

Protectionist philosophy

Aims to protect industry through tariffs on imports and exports.

Consequences of the stock market crash of 1929

Inability to repay margin led to widespread bank and company losses.

Bank failures impact on consumer confidence

Loss of trust in banks causing people to fear losing savings.

Decreased spending due to bank failures

Consumers hoarded money instead of spending due to fear of bank insolvency.

Migration of farming families due to Dust Bowl

Families relocated to seek better opportunities, notably to California.

High tariffs like Smoot-Hawley

Reduced international trade, harming economic growth.

Unemployment effects during the Great Depression

Increased job loss led to decreased consumer spending, worsening the economy.