The Great Depression 1929-1939

Question 1

Causes of the Great Depression

Answer 1

• Overproduction of goods, specifically in the agriculture industry, which led to a drop in the price of goods.
• Buying too many goods on credit during the 1920’s-this led to people going into debt and they stopped buying goods which hurt the economy.
• Buying stocks on margin-pay 10% down and pay of rest of stock as price goes up. Caused problems if stock goes down.
• BLACK TUESDAY-October 29, 1929 when the stock market crashed, signaling the start of the Great Depression.

Question 2

Herbert Hoover and the Great Depression

Answer 2

-Did not believe in welfare for the people, invested believed in rugged individualism, in which people should fight through the Great Depression by themselves.
-People were upset by his response and therefore named several things after him:
~Hooverville.
~Hoover Blanket.
~Hoover Flags.

Question 3

Franklin Delano Roosevelt and the Great Depression

Answer 3

• Very different response to Great Depression, believed that the government should help the people.
• New deal- his policy of getting the United States out of the Great Depression. 3 Goals: Relief, Recovery, Reform.
• Fireside chats- weekly radio broadcasts in which he would announce his plans and try to reassure the American people that they would get through this.
• Alphabet soup-nickname for new deal policies. Overall, he gave jobs to people working for the government so they would spend money and spark the economy.
• Social Security-money for the elderly and those unable to work. It is still around today.
• Ending of Prohibition- created 500,000 jobs instantly.
• Overall, changed the way the government deals with the people. The government is now responsible for the well-being for the citizens of the United States.