Study Guide for U.S. History: Chapters 9 and 10
CHAPTER 9 - The Great Depression Begins
1. Bonus Army
The Bonus Army was a group of World War I veterans who marched to Washington, D.C. in 1932 to demand early payment of a bonus they had been promised due to their service.
Their protest highlighted the struggles faced by many veterans during the Great Depression.
The government responded by forcibly removing them from the city, leading to public outrage.
2. How Did the Stock Market Crash Hurt Banks?
The stock market crash of 1929 led to a significant loss of savings for banks that had invested heavily in stocks.
As a result, many banks failed, leading to a lack of confidence in the banking system. People began withdrawing their deposits, causing banks to become insolvent.
This resulted in a widespread banking crisis and further exacerbated the economic downturn.
3. Hawley-Smoot Tariff
The Hawley-Smoot Tariff was a law passed in 1930 that raised tariffs on many imported goods.
The intention was to protect American industry, but it led to retaliatory tariffs from other countries, further reducing international trade.
It is widely considered to have worsened the Great Depression by shrinking the economy and increasing unemployment.
4. President Hoover’s Beliefs on Direct Federal Relief to the Unemployed
President Herbert Hoover was opposed to direct federal relief for the unemployed, believing it would undermine individual self-reliance and responsibility.
He thought that aid should come from state and local governments or private charity, rather than the federal government.
5. Bull Market vs. Bear Market
A Bull Market is characterized by rising stock prices and investor confidence. It reflects an optimistic economic outlook.
Conversely, a Bear Market is marked by falling stock prices and widespread pessimism. It signifies a downturn in economic confidence.
6. Dust Bowl
The Dust Bowl was a severe drought that affected the southern Great Plains during the 1930s, resulting in massive dust storms.
Poor agricultural practices combined with drought led to crop failures, displacing thousands of farming families.
Many farmers migrated to California and other states in search of better living conditions.
7. Reconstruction Finance Corporation
Established in 1932, the Reconstruction Finance Corporation (RFC) was a government agency designed to provide financial support to banks, businesses, and state governments.
The goal was to stimulate economic recovery by providing loans to help stabilize institutions during the Great Depression.
8. 1st Feature-length Animated Film
"Snow White and the Seven Dwarfs" was released in 1937 and became the first-ever feature-length animated film, breaking new ground in cinema.
Its success represented an innovative advancement in the film industry and provided an avenue for entertainment during the somber time of the Great Depression.
9. Why Some Farmers Destroyed Their Crops
During the Great Depression, farmers destroyed their crops as a strategy to raise prices by reducing the supply of goods.
Instances included the destruction of cotton and livestock, which was a desperate measure to combat falling prices.
10. Why Did Many Americans Go to the Movies and Listen to Radio Programs During the Great Depression?
Many Americans turned to movies and radio as forms of escapism during the hardships of the Great Depression.
These forms of entertainment offered a break from reality and provided a sense of hope, connection, and community.
11. What Percentage of American Households Owned Stocks by 1929?
By the end of 1929, approximately 10% of American households owned stocks.
This statistic reflects the widespread speculative investments and growth of the stock market leading up to the crash.
12. Reasons for Stock Market Crashing
Speculation and excessive investments without knowledge of market fundamentals.
Over-leverage, where investors borrowed heavily to purchase stocks, magnifying their losses.
Lack of regulatory oversight contributed to the bubble that eventually led to the crash.
13. Why Were They Called “Soap Operas”?
The term “soap opera” originated from the early radio dramas that were sponsored by soap manufacturers and aimed primarily at housewives.
These melodramatic serials provided entertainment and escapism during the day.
14. Why Did Many Immigrants Leave the U.S. During the Great Depression?
Many immigrants left the U.S. due to loss of jobs and economic instability.
The onset of the Great Depression led to widespread discrimination and hostility, prompting some to return to their home countries or seek better opportunities elsewhere.