1920's/Great Depression Review

Question 1

What are the causes of the Great Depression? Explain them.

Answer 1

Farm Prices/Farmers:
Farmers faced falling crop prices due to overproduction, debt, and the impact of the Dust Bowl. Many lost their land, contributing to widespread poverty in rural America.

Wealth disparity: Wealth in the hands of a few and they cannot buy enough goods to keep the economy going

Credit: In the 1920s, people and businesses borrowed excessively, leading to an unsustainable level of debt. When the economy faltered, they couldn’t repay loans, contributing to bank failures and economic instability.

Buying on Margin: Investors borrowed money to buy stocks, paying only a small fraction of the stock’s price upfront. This was risky because if stock prices fell, investors couldn’t repay their loans, amplifying the economic crash.

Surplus: Overproduction of goods by factories and farms led to a surplus. Since demand couldn’t keep up, prices fell, leading to business losses and widespread unemployment.

The Stock Market Crash of 1929 was a major trigger of the Great Depression. A rapid decline in stock prices caused panic, massive losses, and led to widespread economic collapse.

Question 2

Explain the effects of the Great Depression.

Answer 2

Unemployment: Business close plants and fire workers to save money since consumption decreased.
Unemployment skyrocketed as businesses failed and banks closed. By 1933, nearly 25% of the workforce was unemployed, leading to widespread poverty and a loss of income for millions of families.

Homelessness: As many lost their jobs and homes, homelessness became rampant. Shantytowns, often called “Hoovervilles” sprang up in cities, where people lived in makeshift shelters made of scraps.

Farmers/Farm Prices: Farmers faced plummeting crop prices due to overproduction, and many lost their land to foreclosure. The Dust Bowl exacerbated the crisis, worsening conditions for rural farmers and contributing to mass migration.

Family Life: Family life was strained as many struggled to meet basic needs. With unemployment and economic stress, families often experienced tension, and the traditional family structure was challenged by the pressure to survive.

Migration: A significant migration occurred, especially from rural areas. Many farmers, particularly in the Midwest, moved west to California in search of work and better living conditions, driven by both the Depression and the environmental disaster of the Dust Bowl.

Question 3

What was buying on margin? Why was it risky?

Answer 3

Buying on margin meant borrowing money from a broker to purchase stocks, paying only a fraction of the stock’s value upfront. It was risky because if stock prices fell, investors could lose more than their initial investment and still owe the borrowed money.

Question 4

What event marked the beginning of the Great Depression?

Answer 4

The Stock Market Crash of October 1929.

Question 5

How long did the Great Depression last, roughly?

Answer 5

The Great Depression lasted about a decade, from 1929 until the U.S. entry into World War II in 1941.

Question 6

Who was president during the late 1920s, early 1930s?

Answer 6

Herbert Hoover

Question 7

Why did the Stock Market crash?

Answer 7

The Stock Market crashed due to speculative investments, buying on margin, and economic instability. Prices of stocks were inflated, and when confidence faltered, a panic sell-off occurred, leading to the crash.

Question 8

What was “black Tuesday”?

Answer 8

“Black Tuesday,” October 29, 1929, was the day the U.S. stock market collapsed, with billions of dollars in stock value wiped out, triggering the Great Depression.

Question 9

What was Hoover’s philosophy concerning the role of the government with the downturn in the economy?

Answer 9

Hoover believed in limited government intervention. He believed the Government shouldn’t provide direct aid, but instead help people help themselves.

Two things he tried were:
Volunteerism–creating public works programs reverse the cycle of depression
Trickle-Down Economics-theory that money invested in businesses and banks would work it’s way to the base of economies: laborers

Question 10

a. Gross National Product (GNP)

Answer 10

The total market value of all goods and services produced by a country’s residents over a specific time period, including income earned abroad.

Question 11

Bonus Army

Answer 11

A group of WW1 veterans who marched on Washington, D.C., in 1932 to demand early payment of a promised bonus due to the economic hardship of the Great Depression. The protest was forcibly dispersed by the U.S. Army.

Question 12

Smoot-Hawley Tariff (and its effects)

Answer 12

A 1930 U.S. law that raised tariffs on imported goods to protect American industries.

It worsened the Great Depression by triggering retaliatory tariffs from other countries, leading to a sharp decline in international trade.

Question 13

The New Deal

Answer 13

A series of programs and reforms initiated by President Franklin D. Roosevelt to combat the Great Depression, focusing on relief, recovery, and reform of the U.S. economy.

Question 14

Relief

Answer 14

Government programs designed to provide immediate assistance to those suffering during the Great Depression, such as direct aid to the unemployed and impoverished.

Question 15

Recovery

Answer 15

Economic policies aimed at stimulating the economy and restoring growth during the Depression, such as job creation programs and industry stabilization efforts.

Question 16

Deficit

Answer 16

The amount by which government spending exceeds its revenue in a given period, leading to borrowing to cover the shortfall.

Question 17

Reform

Answer 17

Long-term changes intended to prevent future economic crises, such as financial regulations, labor laws, and social security systems.

Question 18

Rugged individualism

Answer 18

A term used by President Herbert Hoover to describe the belief that individuals should be responsible for their own success and that the government should not provide direct aid to people in need.

Question 19

Bank Holiday

Answer 19

A temporary closure of all banks, declared by President Roosevelt in 1933, to prevent further bank runs and stabilize the banking system during the Great Depression.

Question 20

The Dust Bowl

Answer 20

A severe drought and dust storms in the Great Plains during the 1930s that ruined crops, displaced thousands of farmers, and contributed to the economic hardships of the Depression.

Question 21

Hundred Days

Answer 21

The first 100 days of Franklin D. Roosevelt’s presidency, during which he implemented numerous New Deal programs to address the Depression.

Question 22

Economic Depression

Answer 22

A severe and prolonged downturn in economic activity, marked by high unemployment, declining GDP, and widespread poverty.

Question 23

Subsidy

Answer 23

A financial assistance or support provided by the government to businesses or individuals, often to encourage certain economic activities or reduce costs.

Question 24

What were the homeless villages/communities called during the Great Depression?

Answer 24

They were called “Hoovervilles”, named mockingly after President Herbert Hoover, where many people who lost their homes lived in makeshift shelters.

Question 25

What happened to the millions of people who lost their jobs during the Great Depression?

Answer 25

Many became unemployed, struggled to survive, and lived in poverty. Some relied on government relief programs, while others moved to search for work or better living conditions, especially during the Dust Bowl.

Question 26

Who ran in the presidential election of 1932? Who won and by how much?

Answer 26

Franklin D. Roosevelt (Democrat) ran against Herbert Hoover (Republican). Roosevelt won by a landslide, securing over 57% of the popular vote and 84% of the electoral vote.

Question 27

What happened during the Banking Holiday of 1933?

Answer 27

President Franklin D. Roosevelt declared a nationwide Bank Holiday, temporarily closing all banks to stop panic withdrawals and allow for government inspection. This restored public confidence in the banking system.

Question 28

Why did FDR want to “pack the court”?

Answer 28

FDR proposed increasing the number of Supreme Court justices to ensure that his New Deal programs would be upheld, as the Court had struck down several key pieces of New Deal legislation.

Question 29

Why was FDR worried about the Supreme Court?

Answer 29

FDR was concerned that the Supreme Court was blocking New Deal legislation, particularly laws that would regulate business and provide social welfare.

Question 30

Who were the critics of FDR and what didn’t they like?

Answer 30

Critics included conservatives who believed the New Deal went too far in expanding government power, and liberals or populists like Huey Long and Father Coughlin, who thought the reforms did not go far enough to help the poor or redistribute wealth.

Question 31

What were the overall results of the New Deal?

Answer 31

The New Deal helped alleviate some of the worst effects of the Great Depression, including high unemployment, but it did not end the Depression. It led to lasting reforms, including Social Security, labor rights, and financial regulations, and expanded the role of the federal government.

Question 32

How did Eleanor Roosevelt change the role of the First Lady?

Answer 32

Eleanor Roosevelt redefined the role of the First Lady by actively engaging in social and political issues (stop lynching African Americans), advocating for civil rights, women’s rights, and the poor, and serving as an important advisor to FDR.
Wrote “My Day” her own newspaper column.

Question 33

Who was the first woman appointed to a Presidential Cabinet position?

Answer 33

Frances Perkins was appointed Secretary of Labor by FDR, becoming the first woman to serve in a U.S. presidential cabinet.

Question 34

New Deal Act: TVA

Answer 34

(Tennessee Valley Authority)
The TVA aimed to provide economic development, flood control, and electricity to the Tennessee Valley region, which was hard-hit by the Depression. It built dams, power plants, and infrastructure.

Question 35

New Deal Act: SSA (Social Security Act)

Answer 35

The Social Security Act created a system of old-age pensions, unemployment insurance, and welfare programs for the disabled and dependent children.

Question 36

New Deal Act: WPA (Works Progress Administration)

Answer 36

The WPA provided jobs for millions of Americans by funding large-scale public works projects, including bridges, roads, schools, and public buildings.

Question 37

New Deal Act: FDIC (Federal Deposit Insurance Corporation)

Answer 37

The FDIC insured bank deposits, which helped restore public confidence in the banking system by protecting people’s savings in the event of bank failures.

Question 38

New Deal Act: Wagner Act (National Labor Relations Act)

Answer 38

The Wagner Act protected workers’ rights to form unions, engage in collective bargaining, and take collective action, such as strikes, without fear of employer retaliation.

Question 39

New Deal Act: Rural Electrification Act

Answer 39

This act provided federal loans to extend electricity to rural areas that were previously without power, improving the quality of life and fostering economic development in rural America.

Question 40

New Deal Act: Federal Emergency Relief Act (FERA)

Answer 40

FERA provided direct relief to the unemployed and needy through grants to state and local governments for food, shelter, and other forms of assistance.

Question 41

New Deal Act: Civilian Conservation Corps (CCC)

Answer 41

The CCC employed young, unmarried men in conservation and environmental projects, including planting trees, building national parks, and fighting soil erosion.

Question 42

New Deal Act: Emergency Banking Act

Answer 42

This act allowed for the closure and inspection of banks, restoring public confidence in the banking system. It also provided for the reopening of sound banks and reorganization of troubled ones.

Question 43

New Deal Act: Securities and Exchange Commission (SEC)

Answer 43

The SEC was established to regulate the stock market, prevent fraud, and protect investors by ensuring transparency and fairness in financial markets.

Question 44

New Deal Act: FLSA (Fair Labor Standards Act)

Answer 44

The FLSA established minimum wage, maximum working hours, and child labor laws to protect workers’ rights and improve working conditions.

Question 45

New Deal Act: AAA (Agricultural Adjustment Act)

Answer 45

The AAA sought to raise crop prices by reducing overproduction. It paid farmers to reduce their acreage of certain crops, thus aiming to stabilize agricultural prices.

Question 46

What was the economy like from 1932-1935? What about in 1936-1937? What happened then in 1938?

Answer 46

1932-1935: The economy was in severe depression, with high unemployment, widespread poverty, and significant economic contraction. However, with the implementation of New Deal programs (like the WPA, CCC, and Social Security), the economy began to show signs of recovery by 1935.

1936-1937: The economy improved significantly, with GDP growth and decreasing unemployment. However, in 1937, the economy hit a setback, partly due to reduced government spending and fears of inflation. This led to another recession in 1937-1938.

1938: The economy faced a second downturn, as the U.S. fell into another mild recession. Recovery was slow, and it wasn’t until World War II that full recovery from the Great Depression occurred.

Question 47

What/who do Americans credit with getting the country out of the Great Depression?

Answer 47

Americans credit Franklin D. Roosevelt (FDR) and his New Deal programs for helping to alleviate the suffering caused by the Great Depression. His leadership, combined with the expansion of federal government intervention in the economy, helped stabilize the financial system, create jobs, and improve living conditions.

Question 48

What New Deal programs helped African Americans specifically?

Answer 48

Several New Deal programs helped African Americans, though often in limited ways:

The Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) provided jobs to African Americans, though segregation in these programs was common.

The National Youth Administration (NYA) offered educational opportunities and part-time jobs to young African Americans.

The Public Works Administration (PWA) funded projects that employed Black workers, though it faced criticism for racial segregation.
Eleanor Roosevelt, FDR’s wife, played a key role in advocating for African American rights and meeting with civil rights leaders.

Question 49

What were some accomplishments of the New Deal?

Answer 49

Key accomplishments of the New Deal include:

Economic Recovery: Initiated programs like the WPA, CCC, and TVA that created millions of jobs and helped rebuild the nation’s infrastructure.

Social Security: Established the Social Security Act, providing pensions for the elderly, unemployment insurance, and aid to disabled and dependent children.

Banking Reforms: Created the FDIC to insure bank deposits and the SEC to regulate the stock market and prevent fraud.

Labor Rights: Passed the Wagner Act, protecting workers’ rights to unionize and bargain collectively.
Rural Assistance: Helped electrify rural America through the Rural Electrification Act and supported farmers with the AAA.

Financial Stability: Implemented the Emergency Banking Act to restore confidence in the banking system and prevent further bank runs.

Question 50

Dorothea Lange

Answer 50

Dorothea Lange was a renowned American photographer, best known for her powerful images documenting the effects of the Great Depression. Her most famous photograph, Migrant Mother, captured the hardship of displaced families and became an iconic symbol of the era. Lange’s work for the Farm Security Administration (FSA) helped bring attention to the struggles of the poor and dispossessed.

Question 51

Frances Perkins

Answer 51

Frances Perkins was the first woman appointed to a U.S. Cabinet position, serving as Secretary of Labor under President Franklin D. Roosevelt from 1933 to 1945. She played a key role in the development of New Deal programs, including the Social Security Act, and was instrumental in advocating for labor rights, minimum wage laws, and the protection of workers.

Question 52

Mary McLeod Bethune

Answer 52

Mary McLeod Bethune was an African American educator, civil rights leader, and government official. She founded the National Council of Negro Women and served as an advisor to President Roosevelt on African American affairs. Bethune worked to improve educational and employment opportunities for African Americans and was a prominent advocate for racial equality during the New Deal era. She also served as the Director of the Division of Negro Affairs in the National Youth Administration (NYA).

Question 53

What happened with the GM strike in 1937?

Answer 53

In 1937, a major labor dispute occurred at General Motors (GM) in Flint, Michigan, known as the Flint Sit-Down Strike. Workers, represented by the United Auto Workers (UAW), occupied the factories and refused to work, demanding better wages, working conditions, and recognition of their union. The strike ended in February 1937 with GM agreeing to recognize the UAW as the official union for its workers, marking a significant victory for labor unions and a major milestone in the labor movement.

Question 54

Who did NOT benefit from the Social Security Act?

Answer 54

The Social Security Act of 1935 initially excluded several groups, including:

Farm workers and domestic workers, who were predominantly African American and women, making them ineligible for benefits.

Self-employed individuals and many low-wage workers also didn’t qualify for Social Security benefits at first.