the great depression

Question 1

causes

Answer 1

• Long term sustained downturn in economic activity
• Very high unemployment
• Very low consumer demand
• Very low production and deflation
• Wall street crash led to the depression
• Stock market crash

Question 2

the business cycle

Answer 2

• Economic activity is the amount of production taking place. over time, the level of economic activity in a country tends to move up and down in a business cycle
• In a downturn or slump output falls and many businesses shed staff because sales are falling. The economy experiences a recession
• In an upturn or boom, businesses increase output and hire more staff to keep up with extra demand. The economy experiences economic growth

Question 3

voluntarism

Answer 3

o Encourages businesses to go into voluntary agreements with workers to keep wages from falling and maintaining levels of production
o Navigate own way out of depression
o Agreements were rare
o Didn’t work because the economy was in such a depresses state that argument would have meant that businesses would become bankrupt without being able to cut wages, lay off worker and reduce production

Question 4

limited charity relief

Answer 4

o Wasn’t federal role to provide aid to the people struggling, would create lazy people
o Believed it was the charities role and local governments
o Ohio unemployment was 50% in 1932, council rain out of money and stopped giving aid to 50,000 families, Hoover wouldn’t give money

Question 5

reconstruction bank corporation

Answer 5

o 2nd half of presidency provided aid
o Large gov agency
o $2 billion worth loans to banks, insurance companies and rail roads
o Good move, but wasn’t seen to after his presidency

Question 6

tax increases

Answer 6

o Increasing taxes by more than 100% for poor people
o For high payers 23% to 63%
o Gov needed to have surplus so interest rates went down, more borrowing

Question 7

public work schemes

Answer 7

o	Increased federal spending 
o	Hoover dam
o	Limited immigration to protect US workers
o	$423 million in spending
o	Impact seen after his admin

Question 8

emergency relief act

Answer 8

Passed $300 million in loans to state gov to give unemployment relief

Question 9

Hawley-smoot tariff

Answer 9

o To protect US industries against competition against foreign imports
o Made US goods more expensive for other countries