The Great Depression Flashcards
What event marked the beginning of the Great Depression in the USA?
The Wall Street Crash of 1929.
What was a significant cause of the Wall Street Crash?
Overproduction and underconsumption in agriculture.
How did Prohibition affect the demand for grain in America?
It led to a decrease in demand for grain.
What was the impact of overproduction on farmers?
Thousands fell into debt and lost their farms.
What economic policy contributed to the decline in trade with Europe?
Protectionism, specifically the Fordney-McCumber Tariff Act of 1922.
How did the laissez-faire policy affect the banking sector?
There were insufficient regulations, leading to instability.
What was Black Thursday?
On October 24, 1929, 12.8 million shares were sold, causing prices to plummet.
What was the unemployment rate in the USA during the Great Depression?
Unemployment rose to 25% of the national workforce.
What were Hoovervilles?
Shanty towns made from waste materials, housing displaced people during the Great Depression.
What was the Hawley-Smoot Act of 1930?
An act that increased tariffs by 50% on imported manufactured items.
What was the purpose of the Reconstruction Finance Corporation (RFC)?
To provide loans to rescue businesses, banks, and insurance companies.
How did Hoover’s actions impact the Great Depression?
His actions did not halt the depression; it continued to deepen.
What was the Bonus Army?
A protest by WWI veterans demanding early payment of their war bonuses.
What happened during the dispersal of the Bonus Army?
They were removed by armed troops, leading to injuries and deaths.
What was the Dust Bowl?
A series of droughts in the Mid-West that devastated farmland.
How did the Great Depression affect consumer goods?
People could no longer afford to buy them, leading to layoffs.
What was the effect of rising unemployment on wages?
Wages fell as competition for jobs increased.
