Great Depression Review

Question 1

While the Great Depression began in 1929, which group of Americans was in depression in the 1920s? Why was this so?

Answer 1

Farmers, because overproduction of crops led to lower prices.

Question 2

What caused the Dust Bowl? What were its effects?

Answer 2

Farmers plowed land in the Great Plains. When a drought came there was no vegetation to protect the soil and it blew away. People known as “Okies” left the Great Plains for California and urban, industrial areas to find work.

Question 3

In what phase of the business cycle was the US economy during the 1920s?

Answer 3

Expansion (Boom!)

Question 4

What weaknesses in the US economy helped lead to the Great Depression?

Answer 4

The uneven distribution of wealth, easy credit , farmers were already in a depression

Question 5

Why were weaknesses in the US economy hidden in the 1920s?

Answer 5

Easy credit (borrowing) for consumer goods hid these weaknesses for a while.

Question 6

What event was given the name Black Tuesday?

Answer 6

The stock market crash of Oct. 29, 1929 – 16 million shares were sold and billions of dollars were lost

Question 7

Why did the stock market crash in 1929?

Answer 7

People lost faith in the market’s ability to make a profit

Question 8

Why did the US Great Depression spread worldwide?

Answer 8

The US quit lending money in Europe and withdrew money from the European economy. The US also raised tariffs.

Question 9

What caused the collapse of international trade during the Great depression

Answer 9

The Hawley-Smoot Tariff

Question 10

What caused rapidly increasing unemployment during the Great depression

Answer 10

reduced consumer spending and business closings

Question 11

What caused bank runs during the Great depression

Answer 11

People believed that banks would close and they would lose their money

Question 12

Contrast the policies of Hoover and Roosevelt in responding to the Great Depression. Why did they react so differently?

Answer 12

Hoover – believed in laissez–faire policies and that state and local governments should solve the problems of the Great Depression. Roosevelt believed the Great Depression was a national problem that required a national solution.

Question 13

Hoover believed the country suffered from a lack of credit. What did he urge Congress to create to create credit?

Answer 13

Reconstruction Finance Corporation

Question 14

Why did Hoover’s volunteerism fail?

Answer 14

Businesses and individuals did what was in their best interest (lay-off workers, cut spending), which was not in the best interests of the country.

Question 15

Why did the Bonus Army march on Washington? What was the response of the Hoover Administration to the protest?

Answer 15

For early payment of a bonus promised them in 1945. The US military forced them to disperse.

Question 16

Which was the first bill passed by Congress after FDR’s inauguration? Why?

Answer 16

Emergency Banking Bill – to restore faith in the banking system and stop bank runs

Question 17

Describe the differing views of opponents of the New Deal. What group organized in opposition to the New Deal?

Answer 17

Some thought that Roosevelt was making the government too powerful and destroying freedom. Others thought he did not go far enough and favored banks and businesses. The Right (the too far people) formed the American Liberty League.

Question 18

What is another name for the Fair Labor Relations Act?

Answer 18

Wagner Act

Question 19

What was a consequence of the economic downturn of 1938?

Answer 19

The Republicans made gains in Congress

Question 20

What was the response of the UAW when General Motors refused to recognize them?

Answer 20

The UAW participated in a sit-down strike

Question 21

What precedent did the Federal Art Project set?

Answer 21

Federal funding of the arts

Question 22

What flaw was in the original Social Security Act?

Answer 22

Domestic workers and farm workers were excluded

Question 23

How did New Deal programs benefit the West?

Answer 23

Irrigation and dam projects provided electricity and water for farmers and cities

Question 24

During the Great Depression the US economy declined severely. Identify two problems that resulted from the Great Depression and describe a solution attempted for each problem. (four points)

Answer 24

The NRA aimed at reducing production and raising wages and prices. AAA was there to try to help raise crop prices.