Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

World History V > Great Depression 1930s > Flashcards

Great Depression 1930s Flashcards

1
Q

What is a stock?

A

Shares of a company bought and sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What causes stock market prices to increase/decrease? /2

A

Increase: demand is high

Decrease: demand is low or non-existent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What was the lifestyle of the wealthy in the 1930s? /4

A

Huge housings (multiple rooms and floors)

Having their own railway cars

In-house service (maids, servants)

Parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is consumer credit? /2

A

Borrowing money for purchasing power

“Buy now, pay later”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is “buying on margin”?

A

Means to borrow money to buy stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What were the two economic problems that existed in 1929? /4

A

Many people have accumulated debt

Car sales drop

Steal production declines

Majority of the population is poor and getting poorer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What was the crash of 1929? /2(4)

A

October 29th, 1929 (Black Tuesday)

Everyone tries to sell their stocks all at once,
|-> causes demand to decrease substantially
|-> due to prices being so high—can’t be paid back

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How often does a stock market crash happen? /2

A

Every 20 to 30 years (a generation or so)

People start losing faith in the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Why do people start losing faith in the economy? /2

A

Decrease in production

Stock market decreasing to a crash makes it worst

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Did the Great Depression start immediately after the stock market crash?

A

No.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is a speculator?

A

Someone who does something very risky, but that could yield profits

Ex. Buying on margin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the Bread line?

A

Lining up to get free bread

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Why were there so many men in suits (middle class) occupying the Bread line? /2

A

Consequence of the stock market crashing

Those men lost all their money and savings in buying stocks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is economic free-fall? /2

A

US economy was slowing down

Stock market crash accelerated the downturn in the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is recession? /2

A

Gross Domestic Product falls for 2/4 of six months only

Common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is Gross Domestic Product? /2(3)

A

The total value of all goods and services produced in a country in 1 year

Increase GDP:

  • People are employed
  • Production/economy is stable/flourishing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a depression? /3

A

A sustained, long-term downturn in an economy

Prolonged recession

Falls for over 2 years straight (rare)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the consequences of the American depression? /5

A

High unemployment: 25% unemployment rate in the 1930s

Lack available credit

Low production

Bankruptcies

Reduced trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is lack of credit in the 1930s? /3

A

Banks can not give loans

Due to not having enough of a revenue (money) to meet everyone’s request to borrow

Why:
Banks can only have a certain amount of money in their reserve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is overproduction in the late 1920s to early 1930s? /3

A

One of the major causes of the Great Depression

Farmers experience this cause first

Companies are producing at a rate where they BELIEVE demand has/will increase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the cause of overproduction in the 1930s? /4

A

Companies banked on the fact that demand was high in the 1920s,

Companies expand and increase their production, BELIEVING it would continue in the 1930s’

Eventually more goods are produced than can realistically be sold

The gap between production and demand is too big

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the consequence of overproduction in the 1930s? /3

A

Companies try to rid of their goods by lowering the prices

Companies slow down production by 1930

Massive lay-off of workers (eventually firing them)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does lay-off mean? /2

A

Workers start to work less, resulting finally in unemployment

Full-time 
⬇️
Part-time (payed half of their usual salary)
⬇️
Fired/unemployed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are bank failures in the late 1920s to early 1930s? /3

A

One of the major causes of the Great Depression

Borrowers can not pay back their loans to banks

Money disappears LITERALLY

25
What is the cause of bank failures in the 1930s? /2
Banks also played in the stock market (BAD IDEA), using the money from their reserves ``` Banks play in the stock market ⬇️ Market crashes ⬇️ Banks lose money ⬇️ Banks can not give loans/unable to open people’s savings account ⬇️ Money disappears ⬇️ Banks close ```
26
What are the consequences of bank failures in the 1930s? /7
Americans owe banks approx. $45 Billion due to the inability to pay them back on the 1930s Money disappears LITERALLY Fewer banks to get a loan from Savings account disappear Lack of credit available People lose their money with no hope of borrowing more American money supply reduced by almost 1/3
27
Why are banks cautious of who they loan money to after the stock market crash?
If they were to loan to anyone, they too will become bankrupt
28
What was the worst year of depression for banks?
1933 4004 banks closed
29
What did it mean that you’re money would disappear LITERALLY in the Great Depression?
You must get your savings money out of the bank before it goes bankrupt and ultimately disappear
30
What is the distribution of wealth in the 1930s? /5
One of the major causes of the Great Depression Unequal distribution of wealth 5% of Americans owned 33% of the nation’s wealth 70% of population at or below a decent wage Disposable income of rest of population changed little
31
What is the cause of distribution of wealth in the 1930s?
The wealthy stopped spending/investing because they don’t need to
32
What are the consequences of the unequal distribution of wealth in the 1930s? /4
Consumer spending drops, when spending could have stimulated the economy Disparity between the rich and the poor Economy is at a still Wages do not increase regardless of high employment
33
What ends the Great Depression?
WWII
34
What did the lower class do as employment in the late 1920s early 1930s? /3
Road workers Have small wages Cultivate other people’s land
35
What prolonged the Great Depression? /4
Little government attention (for 2 years) Laissez-faire economics Hawley-Smoot Tariffs Drought/ Dust bowl
36
Why was there little government intervention during the Great Depression? /2
The government did not identify it as a depression yet Saw it as a normal downturn in the economy
37
Who is the US president during the Great Depression?
Republican Herbert Hoover
38
What did president Herbert Hoover do for the Great Depression?
Introduced laissez-faire economics
39
What is laissez-faire economics? /2
The idea of the market fixing itself Not something the American government should intervene/meddle with and wait for an outcome
40
What are the Hawley-Smoot Tariffs? /4
Designed to increase production in the US Putting tax on imported goods = more expensive goods People will want to buy domesticated goods FAILS
41
Why does the Hawley-Smoot Tariffs fail? /2
Trading countries get mad Put barriers in trading networks with the US
42
What is the SMILETTE poster? /4
Created by the Democratic government Used as commentary on the republican “laissez-faire economy”/government Stating the Republican government is not good for the nation (Also) Election poster for future president: Franklin Delano Roosevelt
43
What is the drought of the 1930s?
Dust storms ravage the region until the late 1930s
44
What is the cause of the drought of the 1930s? /2
Overgrazing/excessive ploughing of the American plains in the 1920s rendered the soil fragile Rains stop in 1930
45
What are the consequences of the 1930 drought? /4
Tracker introduced: good for speed and bad for ploughing High infant/elderly death rate: pneumonia/suffocation on dust Plagues of grasshoppers The Great Depression is also called the Dirty Thirties
46
How does the depression spread worldwide? /5
``` US banks call in loans from foreign countries ⬇️ Foreign countries’ exports decrease |-> can no longer pay back their loans ⬇️ US banks fails ⬇️ With no exports to the US, foreign economics fail ⬇️ Britain, France, Japan are affected ```
47
What is the process (causes) that leads to the Great Depression? /6
``` High production ⬇️ Low demand ⬇️ Prices fall ⬇️ Lay-offs (potential firing) ⬇️ Demand decreases further ↗️ Production decreases further/prices fall again ```
48
What is unemployment like in the 1930s? /8
Over 1/2 of all households are impacted by the Depression Companies closed Reduced demand Lay-offs became common Large companies made all jobs part-time Car industry laid-off almost half their employees 25% of Americans are unemployed People use CV boards
49
How did the working class cope with unemployment? /10
Hover flag Don’t go to doctors : buy sketchy medicine Turn down heat/ wear lots of clothes= decrease living costs Move to smaller apartments = decrease living costs Do not buy meat or dairy: most expensive foods Buy potato, onion and cheap food Used all their savings Bandit buggy: tie a horse to a car |-> people can’t afford gas People live with other families Do chores for money
50
What is the Hover flag? /2
Empty pockets Make front of Hover who did little changes
51
How did the middle and upper class affected by the Great Depression? /2
Lost a lot in the stock market, were ruined Other lost their jobs, unemployed
52
How come some in the middle and upper classes were not impacted by the Great Depression? /3
Some investors profited from low stock market prices Other industries, like advertising companies, exploded thanks to companies trying to increase demand Sit on money, are patient
53
What consequence did the drought have on Canada? /5
Rural families leave for the cities Single men find work Many depend on soup kitchens Kindness of strangers to survive ALOT of immigration
54
What are hobos? /5
Leave their homes Ride on rail and go around the country to find jobs Illegal Not a lot of jobs in cities either Uses signs to help each other
55
What consequence did the Great Depression have on American migration? /4
Families leave the plains Called “Okies” or “exodusters” Many Americans leave for California Find work as seasonal farm labourers or remained unemployed |-> ex. Picking berries
56
Why do many Americans move to califomis Ain the 1930s? /3
Since California holds a lot of berries for farming Good food resource
57
What is the FDR? /2
The Franklin Delano Roosevelt political party Introduced programs to improve the economy
58
Why does the FDR take over?
1932 voters are dissatisfied with President Hoover and want to change

World History V (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions