Summarys (depression + new deal)

Question 0

Did the new deal help the American economy to recover (6 no’s)

Answer 0

1. Limited helps to black people and farmers
2. Unemployment reduced, but stayed high
3. The attempt to reduce funding in 1937 failed
4. America stayed on the gold standard, which continued to damage exports
5. Interest rates high, held back industry
6. Needed World War II and lend-lease to get the economy going again

Question 1

Did the new deal help the American economy to recover (5 yes’)

Answer 1

1. Restored confidence-fireside chats
2. Ended banking crisis
3. Alphabet agencies combat unemployment and homelessness, creating jobs, supported business and farming
4. TVA
5. Social benefits of the second new deal

Question 2

How did Roosevelt try and end the Depression? (give 7 examples)

Answer 2

1. Bank holiday (financial security)
2. AAA (farming)
3. NRA (industry)
4. CWA, PWA, WPA (reduce unemployment)
5. HOLC (address homelessness)
6. FERA (alleviate poverty)
7. TVA

Question 3

did Hoover fail to act against the Depression? (give 5 “yes, he did fail”’s)

Answer 3

1. Hoover believed in rugged individualism and laissez-faire economics
2. Smoot-Hawley Tariff ruined Americas exports
3. Attacked by Bonus Army
4. Just hoped America would ‘turn the corner’
5. Blamed by Americans, ‘in Hoover we trusted…’

Question 4

Did hoover fail to act against the Depression (give 4 “no, he didnt fail”’s)

Answer 4

1. Cut taxes
2. $4 billion for building projects (Hoover Dam)
3. Emergency Relief Act ($300 million to unemployed)
4. Reconstruction Finance Corp ($1.5 billion loans to businesses

Question 5

give 7 serious effects of the great depression on americans between 1929-1932

Answer 5

1. fall in exports, production, sales, wages
2. banks bankrupted = run on banks/banking crisis
3. farmers bankrupted = Cali drift
4. Unemployment - esp. in north and among black communities = hobos and beggars
5. homelessness = hoovervilles
6. charity = soup kitchens + breadlines
7. bonus army, riots and demonstrations

Question 6

give a not so serious effect of the great depression on americans between 1929-32

Answer 6

Not everyone suffered

–> ‘new industries’ prospered, people will steady wages befitted from falling prices

Question 7

give 5 reasons why the Wall st crash was the main cause of the depression in the USA

Answer 7

Kick-started a cycle of depression 1. Loss of confidence

2. 600,000 individuals ruined = reduce spending
3. Companies were ruined= workers laid off
4. banks ruined = run on the banks = banks call in loans = world trade ruined
5. Kick-started the cycle of depression

Question 8

give four other causes that the Wall Street crash was the main cause of the depression in the USA but not as serious

Answer 8

1. Underlying weaknesses of American economy (especially credit schemes, such as hire purchase, buying on margin )
2. Tariff war cause a drop in American exports
3. America stayed on the gold standard, so the exchange rate damaged American exports
4. The cycle of depression