Great Depression Study Guide

Part 1: Vocabulary

  • Black Tuesday: The day the stock market crashed (October 29, 1929), marking the beginning of the Great Depression.

  • Dust Bowl: A drought-stricken region in the southern plains of the United States during the 1930s, characterized by severe dust storms caused by over-farming and a prolonged drought.

  • Hoovervilles: Shantytowns built by unemployed and destitute individuals during the early 1930s Depression, named sarcastically after President Herbert Hoover.

  • The New Deal: A series of programs and projects implemented by President Franklin D. Roosevelt during the Great Depression aimed at restoring prosperity to Americans and providing relief and recovery.

  • Fireside Chats: A series of approximately 30 speeches made by Franklin D. Roosevelt, broadcasted over radio, in order to address American public concerns and inform them of government actions during the Depression.

  • Alphabet Agencies: Federal government agencies created as part of the New Deal, aimed at combating the Great Depression. Many of the earliest agencies were established during FDR’s first 100 days in office in 1933.

Part 2: Short Answer

  1. What were the main causes of the stock market collapse?

    • Buying Stocks on Margin: Investors purchased stocks by borrowing funds, leading to inflated prices.

    • Overproduction of Goods: Resulting in surplus and a sharp decline in prices, causing economic instability.

    • Laissez Faire Government Policies: Government did not intervene in the economy, contributing to the conditions leading to the crash.

  2. What caused bank failures to sweep across the country in the early 1930s?

    • Banks held significant amounts of bad debt linked to stock market losses and high unemployment.

    • Erosion of public trust in banks led to mass withdrawals of deposits, resulting in widespread bank bankruptcies. At that time, failing banks led to all depositors losing their money.

  3. What caused the Dust Bowl and what impact did it have on Americans?

    • Causes: Overfarming, overgrazing, and severe drought.

    • Impact: Resulted in the loss of topsoil, making land infertile. Approximately 2.5 million people migrated to different states, and about 7,000 deaths occurred from related health issues.

  4. Describe the Smoot-Hawley Tariff Act.

    • Intended to protect American farmers by increasing tariffs on imported goods; however, it led to increased trade tensions and worsened the Depression due to retaliatory tariffs from other countries.