The Great Depression

Flashcards about the Great Depression, causes, and effects.

What were the main causes of the Great Depression?

Increasing unemployment, fluctuating stock prices, declining industries, growing debt, decline in overseas trade, and consumer investment mistakes.

What factors contributed to the collapse of agriculture during the Great Depression?

Farming more ground and growing more crops than ever before, overproduction driving down prices, farmers living on credit, and bank foreclosures.

What were the main drivers of overproduction during the Great Depression?

Consumer demand/advertisement leading to more production, technological advancements increasing output, and stagnant wages for workers.

What was the impact of the Smoot-Hawley Tariff?

It angered Europe, leading them to raise tariffs, causing world trade to almost stop entirely.

How did the unequal distribution of wealth contribute to the Great Depression?

The rich getting richer while the poor got poorer, widespread credit buying, and insufficient purchasing power to consume excess goods.

What characterized speculation on Wall Street before the crash?

Risky investments and a 'get rich quick' mentality.

What does 'buying on margin' mean?

Making a small down payment on stocks while borrowing the rest of the money.

What is Black Tuesday?

October 29th, 1929, the day the stock market crashed.

How did banking policies contribute to bank failures during the Great Depression?

Banks invested deposits in the stock market, leading to widespread failures when the market crashed.

What is 'Laissez-Faire' in the context of banking during the Great Depression?

A philosophy of no government regulation on banks to keep deposits safe.

What caused the run on banks?

People panicked and rushed to withdraw their money, causing many banks to close.

What was the Dust Bowl?

A period of severe dust storms in the 1930s that greatly damaged the ecology and agriculture of the US prairies.

What foods were common during the Great Depression?

Soups, 'Hoover stew' (Vienna sausage & macaroni), Poor Man’s meal (Hot Dogs & potatoes), prune pudding, boiled cabbage, fried bologna, and dandelion salad.

What was President Hoover's approach to providing aid during the Great Depression?

He believed it was not the federal government's job to provide aid, relying instead on states and local organizations.

What terms were used to mock President Hoover during the Great Depression?

Terms like 'Hoovervilles,' 'Hoover Flags,' 'Hoover mobiles,' and 'Hoover stew'.

What was FDR's approach to addressing the Great Depression?

Federal and state government action, work relief programs, and a 'New Deal' with federal programs to provide relief and stabilize the economy.

What was Herbert Hoover's belief about the government's role in helping during the Great Depression?

He believed the government should play a limited role, with relief primarily provided by churches and local organizations.

What cautious steps did Herbert Hoover take to combat the Great Depression?

Asking businesses not to cut wages or lay off workers.

What were the benefits of the Boulder Dam (Hoover Dam) project?

Flood control, electricity, water supply, and jobs.

Who were the Bonus Army?

WWI veterans who marched on Washington D.C. to demand early payment of their promised bonus.

What were the key promises of Roosevelt's New Deal?

Relief for the needy, economic recovery, and financial reform.

What was the 'Brain Trust'?

A group of experts Roosevelt created to fight the Depression.

What role did Eleanor Roosevelt play during FDR's presidency?

She urged FDR to appoint women to government offices and pushed for equal rights for women and minorities.

What actions were taken during the First Hundred Days?

Banking Holiday & the Emergency Banking Relief Act closed banks, propped up failing banks, restored America’s faith in banking

What does the FDIC do?

Insures bank deposits.

What does the SEC do?

Regulates the stock market.

What did the Tennessee Valley Authority (TVA) do?

Built dams along the Tennessee River, providing cheap electricity and jobs.

What is eminent domain?

Government can take your land but must pay you for it.

What did the Civilian Conservation Corps (CCC) do?

Builds roads, plants trees, and improves national parks.

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

Established the National Recovery Administration (NRA), minimum wage, banned child labor, and set working hours.

What does the Federal Housing Administration (FHA) do?

Loans to homeowners.