The Great Depression

What was one major cause of the Great Depression? The 1929 stock market crash and panic selling. How did overproduction contribute to the Great Depression? Production rose while demand fell, causing prices to collapse. How did overproduction affect farmers? Many borrowed money, then could not repay loans when prices fell. What was the Dust Bowl? Severe droughts and overfarming caused massive dust storms in the 1930s. When did the major Dust Bowl drought begin? 1934. What did the Smoot-Hawley Tariff do? It raised U.S. tariffs; other countries retaliated, reducing world trade. How did reduced international trade worsen the Depression? Falling trade reduced demand and hurt economies worldwide. What was the gold standard's effect during the Depression? It linked currencies to gold and helped spread financial problems internationally. Who was president at the start of the Great Depression? Herbert Hoover. How did Hoover view government relief? He opposed direct federal relief and favored rugged individualism. What did Hoover believe about federal intervention? He believed government should have limited involvement in the economy. What approach did FDR favor? Active federal government intervention. What was the New Deal? FDR's program of federal actions to provide relief, recovery, and reform. What were the 3 Rs of the New Deal? Relief, Recovery, and Reform. What did Relief mean in the New Deal? Immediate help for people suffering from the Depression. What did Recovery mean in the New Deal? Programs designed to restart the economy. What did Reform mean in the New Deal? Changes intended to prevent future economic crises. What did the Agricultural Adjustment Act (1933) try to do? Stabilize farm prices by reducing surplus production. Did the Agricultural Adjustment Act end overproduction? No; it did not fully solve the problem. What was the Emergency Banking Act (1933)? It allowed banks to be inspected and reopened after a bank holiday. What did the Glass-Steagall Banking Act (1933) do? Separated commercial and investment banking and created the FDIC. What did the FDIC originally insure? Bank deposits up to $5,000. What did the Civilian Conservation Corps (CCC) do? Provided jobs for young men on conservation and public projects. What was the Federal Emergency Relief Administration (1933)? It directed federal relief to states for people in need. What did the Works Progress Administration (1935) do? Employed millions on public projects such as roads and buildings. What did the National Industrial Recovery Act (1933) do? Regulated industry and promoted economic recovery; it was later struck down. What did the Agricultural Adjustment Administration (1933) do? Paid farmers to reduce crops, raising prices and reducing surpluses. What did the Civil Works Administration (1933) do? Created jobs through public works and infrastructure projects. What did the Social Security Act (1935) create? Old-age pensions and unemployment insurance. What did the Wagner Act (1935) do? Gave workers rights to form unions and bargain collectively.

What was one major cause of the Great Depression?

The 1929 stock market crash and panic selling.

How did overproduction contribute to the Great Depression?

Production rose while demand fell, causing prices to collapse.

How did overproduction affect farmers?

Many borrowed money, then could not repay loans when prices fell.

What was the Dust Bowl?

Severe droughts and overfarming caused massive dust storms in the 1930s.

When did the major Dust Bowl drought begin?

1934.

What did the Smoot-Hawley Tariff do?

It raised U.S. tariffs; other countries retaliated, reducing world trade.

How did reduced international trade worsen the Depression?

Falling trade reduced demand and hurt economies worldwide.

What was the gold standard's effect during the Depression?

It linked currencies to gold and helped spread financial problems internationally.

Who was president at the start of the Great Depression?

Herbert Hoover.

How did Hoover view government relief?

He opposed direct federal relief and favored rugged individualism.

What did Hoover believe about federal intervention?

He believed government should have limited involvement in the economy.

What approach did FDR favor?

Active federal government intervention.

What was the New Deal?

FDR's program of federal actions to provide relief, recovery, and reform.

What were the 3 Rs of the New Deal?

Relief, Recovery, and Reform.

What did Relief mean in the New Deal?

Immediate help for people suffering from the Depression.

What did Recovery mean in the New Deal?

Programs designed to restart the economy.

What did Reform mean in the New Deal?

Changes intended to prevent future economic crises.

What did the Agricultural Adjustment Act (1933) try to do?

Stabilize farm prices by reducing surplus production.

Did the Agricultural Adjustment Act end overproduction?

No; it did not fully solve the problem.

What was the Emergency Banking Act (1933)?

It allowed banks to be inspected and reopened after a bank holiday.

What did the Glass-Steagall Banking Act (1933) do?

Separated commercial and investment banking and created the FDIC.

What did the FDIC originally insure?

Bank deposits up to $5,000.

What did the Civilian Conservation Corps (CCC) do?

Provided jobs for young men on conservation and public projects.

What was the Federal Emergency Relief Administration (1933)?

It directed federal relief to states for people in need.

What did the Works Progress Administration (1935) do?

Employed millions on public projects such as roads and buildings.

What did the National Industrial Recovery Act (1933) do?

Regulated industry and promoted economic recovery; it was later struck down.

What did the Agricultural Adjustment Administration (1933) do?

Paid farmers to reduce crops, raising prices and reducing surpluses.

What did the Civil Works Administration (1933) do?

Created jobs through public works and infrastructure projects.

What did the Social Security Act (1935) create?

Old-age pensions and unemployment insurance.

What did the Wagner Act (1935) do?

Gave workers rights to form unions and bargain collectively.