Great Depression Flashcards
Who emerged the most prosperous country on earth after WWI?
The United States
What is some evidence for the United States’s prosperity during the 1920s?
- average unemployment never rose above 3.7%
- inflation never rose above 1%
- employees worked fewer hours
- employees were paid more
- the average real wage of Americans was 2-3 times higher than the average in Europe
- there was huge economic growth
What did economic prosperity mean for the people?
More Americans had more time for leisure and more money to spend on it
What new technology made life easier for Americans in the 1920s and why?
- vacuum cleaners
- washing machines
- cars
all these inventions were labor-saving and had become more affordable for more people
Why was there prosperity in the US in the 1920s?
- government policies of tariffs, tax reductions, and benevolent foreign policy
- technological advances
- new business methods
- easy credit
- advantageous foreign markets
How did the government intervene to support business with benevolent policies?
- High Tariffs: made foreign goods more expensive than domestic goods;
- tax reductions: benefited the wealthy
- Fewer regulations: Lack of government regulation can help boost a company’s profits, but there was no organization to prevent things (like child labor)
- Foreign policy: President Coolidge avoided intervention in foreign affairs whenever possible; he did not want Americans to be caught up in foreign disputes
Why was the motor industry important?
henry Ford’s new method of mass production allowed for cars to be built quickly and in bulk, which lowered the prices and allowed more people to buy them. Many people found jobs in the motor industry, however, this became a problem when Ford shut down company to produce the Model A and when the Great Depression hit
When did the New York Stock Exchange crash?
Thursday, October 24, 1929
what were the signs that the economy was failing?
- uneven distribution of wealth: between regions and ethnic groups
- rural poverty
- instability of ‘get-rick-quick’ schemes
- problems with the banking system
- cycle of international debt
- slowdown in the economy
What happened to women during the Great Depression?
- they did not enjoy improved career opportunities
- they tended to remain in low-paid and menial jobs
- number of women who received a college education fell by 5% in this time
- women were expected to concentrate on marriage and homemaking
What happened to Native Americans during the Great Depression?
- assimilation: belief that natives should adopt American lifestyle and beliefs
- allotment: each family was given land to farm; went against traditional beliefs; meant tribal units were broken up
- often swindled out of their land
What happened to African Americans during the Great Depression?
- most lived in the South
- KKK terrorized midwest and South
- some migrated North, but still faced discrimination
Problems of rural poverty
- prices fell after WWI because of prohibition (cut demand for grain) and advancement in technology (made farmers produce so much that they were forced to compete with each other)
- overproduction
- agricultural businesses took over small farms
What was Herbert Hoover’s downfall?
He could not shift from his fundamental beliefs of self-reliance (government should not interfere with individual problems) and ‘American Individualism’ (believed in equality of opportunity; saw government as a way to help others help themselves)
What were the economic effects of the Great Depression in the US?
- uneven distribution of unemployment: African Americans were paid less and whites and had a higher unemployment rate; Women were laid off before men and many businesses refused to hire married women
- effects on individual industries: some industries did well (oil boom in texas and cigarettes) while other industries fell (construction because no one could afford to build anything new)
- problems with credit and banking: credit vanished; bank closures multiplied
