cause and impact of the great depression

Question 1

The main features of the Great Crash (October 1929)

Answer 1

• 40% paper values of common stock lost
• Millions lost their life savings, jobs, and homes
• Banks had also invested their money without permission
• billions of dollars in losses
• Businesses failed (Laid off workers and International trade fell)
• Decline in industrial production

Question 2

Responses of Hoover government and industry to the Great Crash

Answer 2

Many policies passed by Hoover did too little to help the crises and sometimes made the situation worse.

Question 3

The Hawley-Smoot Tariff Act of 1930

Answer 3

increased tariffs on manufactured goods

Question 4

Hoover limited investment and the supply of money in the US due to borrowed money

Answer 4

led to deflation

Question 5

Hoover rejected attempts by the senate to implement pump priming, a welfare program for unemployment insurance. He believed that it would decrease the federal budget

Answer 5

actually would have helped people afford food and increase employment

Question 6

Reconstruction Finance Corporation

Answer 6

failed to restore business confidence

Question 7

Efforts to make government credit available did what?

Answer 7

saved the banks but did not promote business growth

Question 8

Relief and Recronstruction Act of 1932

Answer 8

redirected $1.5 billion in federal spending on public works projects to create jobs. $300 million were also put into welfare and feeding the hungry.

Question 9

collapse of financial system

Answer 9

• US banking industry lacked federal regulation
• States lost their welfare funds and national unemployment reached over 13 million
• 50-60 million were living in poverty
• Led to increase in crime
• Family income dropped by 40%
• Hundreds of thousands were losing jobs and being evicted every week
• Financial system was in debt due to risky investments which had failed

Question 10

Mass unemployment and its social impact

Answer 10

By 1932 25% of the population was unemployed (and 50% of African Americans)
- Hoovervilles began to appear
- Some families had to split to look for jobs
- Others left the country to work abroad
Marches and violent protests rose against eviction and the inability to pay mortgages.

Question 11

hoovervilles

Answer 11

Shantytowns constructed of cardboard, tarpaper, glass, tin, etc.
Posed health risks