Great Depression Flashcards
Why were farmers losing money during the 1920’s and 1930’s?
Europe wasn’t buying food after the war. Farmers also made too much food.
What hardships did families face during the depression? (3 examples)
People didn’t have jobs, so they didn’t have money. They couldn’t pay for their house, so many were homeless. They couldn’t pay for food, so many would be hungry and received support from bread lines. Children also din’t want to burden their families so they left their families. Boys also dropped out of school to work. Some families were separated during the depression.
What was life like for farmers in the dust bowl? (3 examples)
Their crops were buried, so they lost their source of income. Their homes were damaged or filled with dust, so they set out west. Many farmers also got dust-pneumonia.
What is the CCC?
Civilian Conservation Corps. They created jobs and conserved the environment.
What is the TVA?
Tennessee Valley Authority. They built dams, provided electricity, and created jobs.
What is the AAA?
Agricultural Adjustment Administration. hey regulated farm production and promoted soil conservation. This made sure farmers didn’t grow too much.
What is buying on the margin? What problems can arise when you do this?
This is paying a little bit of a stock and borrowing the rest from a bank to purchase it. If the stock goes down, you lose money and can’t repay the bank. The bank then lost money. This can lead to bank failure.
How did businesses and factories play a role in creating the depression?
They made too many products that they couldn’t sell. The prices then wen down, businesses lost money, and couldn’t pay for materials, shipping, and salaries. Workers were then laid off.
Why did banks fail during the depression?
People borrowed money to buy stocks, and couldn’t repay their loans. Banks lost money, and when people withdrew their money, their wasn’t much left in the bank. People then got nervous and withdrew as much as they could. Banks had no money left, and then failed.
Why did Hoover’s projects not boost the economy?
The were too little and too late.
Why did many people blame Hoover for their suffering?
He provided little support while unemployment, hunger, and homelessness grew.
What was a downfall of buying on credit?
People couldn’t repay the loans as the debt grew. People couldn’t buy things, so things weren’t sold. This made the economic circle slow down.
What happened on October 23, 1929, and why?
The stock market crashed because a lot of people sold their stocks and lowered the prices.
How was the Great Depression different than earlier depressions?
It was bigger, lasted longer, and affected more people. Its effects were also felt globally.
How did FDR restore confidence in banks? (3 ways)
He shut down the banks, which gave them a break so people couldn’t withdraw their money. He also let only good banks open which made sure they didn’t make bad loans and didn’t lose peoples’ money. He also ensured people that their money was safer in a bank than at their house. He did this through fireside radio chats.
