The Great Depression

Question 1

Give a brief description of the Great Depression. (2)

Answer 1

1. The aftermath of the 1929 Wall Street Crash that resulted in a worldwide economic depression that was worsened by the Dust Bowl.
2. Lasted from 1929-39

Question 2

Explain two reasons why the Wall Street Crash happened.

Answer 2

1. Laissez-faire - Republican policy separated the economy from the powers of the state, which left its basic parts unregulated - this means that growing problems e.g in stock market investments were left unnoticed.
2. Hire-purchase - many shares were bought on credit so ppl lost their money as their value fell.

Question 3

What three main groups were affected by or created by the Great Depression?

Answer 3

1. Businessmen
   - 1929-33, 100,000+ business = bankrupt, b/c they produced more than ppl could afford.
2. Unemployed workers

• Lack of welfare state = no state benefits even after being made redundant
• 1932: 2 mil men were homeless

3. Farmers
   - 1/5 of all farmers lost their farms.

Question 4

Who was the acting president at the start of the Great Depression?

Answer 4

Hoover

Question 5

When and what was the Bonus March?

Answer 5

1. 1932
2. Veterans promised a bonus in 1945 wanted it earlier (b/c G.D), camped outside the White House in D.C
3. Bonus marchers dispersed by military with tanks and tear gas, causing the death of two babies

Question 6

How did views of Hoover change after the march?

Answer 6

1. Worse - stayed with the laissez-faire approach during the G.D and refusal to help those suffering b/c of rugged individualism frustrated Americans + used armed forced against citizens
2. Better - Bonus marchers were accused of being criminals and communists, so he could’ve been seen as protecting society.

Question 7

What were Hoovervilles?

Answer 7

Shanty towns found all over the US made to mock Hoover.

Question 8

When and what was the Dust Bowl?

Answer 8

1. 1932

2. Dust storms caused by severe droughts.

Question 9

What was the main effect of the Dust Bowl?

Answer 9

Approx. 35 mil acres of cultivated land were made useless.

Question 10

What was President Hoover’s response to the Great Depression?

Answer 10

1. 1930: cut taxes by $130 mil to give ppl more spending money - redundant b/c they had no money
2. 1930: Hawley-Smoot tariff which placed a higher tax on foreign goods

• hoped Americans would start buying cheaper American food.
• resulted in other nations taxing US goods = American exports dropping and even more businesses failed.