Bust/Depression - 2 Flashcards
What was a popular way of making money during the 1920s?
Playing the stock market
What term is used to describe the events of October 24, 1929?
Black Thursday
What did many Americans do in September 1929 due to falling profits?
Began to sell their shares
What was the consequence of shareholders trying to sell their shares on Black Thursday?
Share prices began to drop
How many shares were sold on the New York Stock Exchange on Black Thursday?
13 million shares
What was the average price drop of shares on October 29, 1929?
40 cents
True or False: 659 banks went bankrupt in 1929 alone.
True
What major bank failed in December 1930?
Bank of the United States
What were the two primary functions of American banks during this time?
- Savings
- Loans
Fill in the blank: The American economy faced a crisis due to ______, where factories produced more goods than could be sold.
overproduction
What tragic event occurred to George Gallies after the bank failure?
He hanged himself in despair
What did many Americans do with bank loans they took out to buy shares?
Could not pay back their loans
What did many investors realize about their shares when trying to sell them?
Shares were only worth something if someone was willing to buy them
What was the total loss for shareholders after the panic selling?
58 billion dollars
Why did foreign governments impose tariffs on US-made goods?
To encourage consumers to buy domestic goods
What was the effect of the Wall Street Crash on ordinary people?
Many faced ruin and financial despair
What did banks do with the savings deposited by people?
Loaned it to other people
What was the impact of the collapse in share prices on those who never bought shares, like George Gallies?
They were affected due to bank failures
What is the definition of the term ‘Great Depression’?
‘Great Depression’ refers to a time in a country’s history when factories close, banks fail, and unemployment reaches record levels.
How did the Great Depression affect factory owners?
Factory owners faced underconsumption as people could afford to buy less, leading to cut production, wages, and job losses.
What is underconsumption?
Underconsumption is when the production of goods exceeds the demand, resulting in unsold products.
How did the Great Depression impact banks?
Many banks went bankrupt due to unpaid loans, leading to job losses for bank managers and staff.
What was the effect of the Great Depression on factory workers?
Many factory workers lost their jobs, which also affected local businesses that relied on their patronage.
How did the Great Depression affect the very rich?
The very rich lost some wealth but often had property and land to fall back on, leading to lifestyle changes rather than severe hardship.
How were farmers affected by the Great Depression?
Farmers faced declining prices due to overproduction and struggled to repay loans, leading to loss of farms and job losses for farm workers.
True or False: African-Americans were less likely than white Americans to be unemployed during the Great Depression.
False.
Fill in the blank: The term used to describe the economic downturn following the Wall Street Crash is _______.
[Great Depression]
What were some coping mechanisms for the very rich during the Great Depression?
They had to make changes such as sacking chauffeurs and cleaners and doing the work themselves.
What was a notable consequence for factory closures during the Great Depression?
Closure of factories led to reduced patronage for local businesses like restaurants and shops.
How did the Great Depression create a cycle of economic decline?
Factory closures led to job losses, reducing consumer spending, which further harmed businesses.
What was one significant emotional impact of the Great Depression on families, as described in the interpretations?
Families faced emotional distress from losing their homes and livelihoods.
What factors contributed to the differing experiences of people during the Great Depression?
Factors included socio-economic status, occupation, and geographic location.
What percentage of the labor force was unemployed by 1932 due to the Great Depression?
Nearly 25 percent
Approximately 13 million people lost their jobs.
What was the unemployment rate in Cleveland by 1931?
50 percent
This was indicative of the severe economic impact in industrial cities.
What significant drop in factory production occurred between 1929 and 1932?
45 percent
This drop was due to decreased consumer purchasing.
What were breadlines?
Queues for charity food during the Great Depression
Many people relied on soup kitchens for basic sustenance.
How many free meals was the YMCA giving away in a small district of New York in 1932?
12,000 free meals a day
This illustrates the scale of need during the Depression.
What term refers to homeless camps built from scrap materials during the Great Depression?
Hoovervilles
Named sarcastically after President Herbert Hoover.
What was the Dust Bowl?
A period of severe drought and poor farming practices that led to soil erosion
This environmental disaster worsened the plight of farmers.
By 1932, how many farmers had been evicted from their land?
One in 20 farmers
Economic hardship led many farmers to lose their properties.
What was President Hoover’s belief regarding individual responsibility during the Great Depression?
Rugged individualism
Hoover believed people could overcome their problems through hard work.
What economic measure did Hoover implement in 1930 to stimulate spending?
Cut taxes by $130 million
This was aimed at increasing disposable income.
What was the purpose of the Reconstruction Finance Corporation?
To lend money to struggling businesses and farmers
This was one of Hoover’s steps to alleviate the economic crisis.
What was the outcome of the Hawley-Smoot tariff introduced by Hoover?
American exports dropped dramatically
This tariff led to retaliatory tariffs from other nations.
True or False: The Bonus Army was a group of unemployed ex-soldiers who protested for early payment of war pensions.
True
Their march to Washington DC in 1932 became a significant protest event.
Fill in the blank: Many homeless people lived in makeshift camps called _______.
Hoovervilles
These camps often lacked basic sanitation.
What did many unemployed workers, known as hobos, do during the Great Depression?
Traveled the country looking for work
They often moved illegally on freight trains.
What violent response did Hoover have to the Bonus Army’s protest?
He sent the army to disperse them
The confrontation involved guns, tanks, and tear gas.
What was a major consequence of the Dust Bowl for landowners?
Many moved away, often to California and Oregon
They sought work on fruit farms but faced further disappointment.
What was the effect of the Great Depression on American food prices?
Farmers couldn’t get good prices for their food
This contributed to widespread financial difficulties among farmers.
Who were the main candidates in the 1932 presidential election?
Herbert Hoover and Franklin Delano Roosevelt (FDR)
What significant economic event was occurring during the 1932 election?
The Great Depression
What was Herbert Hoover’s political party affiliation?
Republican Party
What does the term ‘laissez-faire’ mean in the context of Hoover’s beliefs?
Leave alone; government should not interfere in daily lives
How did Hoover initially respond to the Great Depression?
He believed in ‘rugged individualism’ and did not provide immediate help
What was one of Hoover’s major beliefs about Americans?
They could overcome problems through hard work
What was a key aspect of Hoover’s public image during the election?
He was not a great public speaker and was seen as uncaring
What political party did Franklin Delano Roosevelt belong to?
Democratic Party
What personal challenge did FDR face in his life?
He contracted polio and used a wheelchair for the rest of his life
What were the ‘3 Rs’ that FDR promised during his campaign?
- Relief
- Recovery
- Reform
What was FDR’s plan called that aimed to help Americans during the Depression?
A New Deal for the American people
How did FDR communicate his campaign message to the public?
Through speeches and a campaign song ‘Happy Days Are Here Again’
Fill in the blank: FDR’s plan included providing _______ for the unemployed.
Relief
What did many voters see in FDR that made him an appealing candidate?
His empathy and personal experience with adversity
How did FDR’s early life differ from Hoover’s?
FDR was raised in wealth and was educated privately
True or False: Hoover was known for his effective public speaking skills.
False
What was one of the reasons Hoover lost the 1932 election?
His belief in rugged individualism made him appear uncaring
What did FDR do as Governor of New York that demonstrated his commitment to helping the unemployed?
Spent $20 million of tax money helping the unemployed
What was a notable aspect of the public’s response to FDR during the election campaign?
They felt hope for the future and believed someone was on their side
What was a significant reason for Roosevelt’s victory in the 1932 election?
Public perception of Hoover’s ‘do nothing’ reputation during the Depression
Many people believed Hoover did not act quickly enough to help, instead telling them to ‘keep smiling’.
What was Roosevelt’s pledge in his New Deal speech in July 1932?
A New Deal for the American people
It was described as a call to action, not just a political campaign.
What other promise did FDR make that contributed to his popularity?
To end Prohibition
Ending Prohibition was a significant factor as it appealed to many voters.
What was the outcome of the 1932 presidential election?
FDR won 42 out of 48 states
This was the largest victory recorded in a US election.
What did Hoover do during the ‘lame duck’ months after the 1932 election?
Spent money and gave out loans to businesses
Despite his efforts, the Depression worsened during this period.
What innovative communication method did FDR use as president?
Radio broadcasts known as ‘fireside chats’
This allowed him to explain his policies directly to the public.
Fill in the blank: FDR’s campaign emphasized the ‘_______’.
3 Rs
The 3 Rs refer to Relief, Recovery, and Reform.
True or False: FDR’s physical problems hindered his campaign efforts.
False
He showed that his physical challenges were no barrier to him.
What did Hoover mean by describing the 1932 election as ‘a contest between two styles of government’?
A contrast between Republican and Democratic approaches to governance
This highlighted the ideological differences between the two parties.
