Great Depression

• What economic struggles did many Americans face during the 'Roaring 20s'?

  Financial struggles in rural areas
• Why did farmers struggle financially in the 1920s?

  They raised more crops than needed
• What happened to profits in farming from 1920 to 1929?

  Profits declined from $10 billion to $4 billion
• How did industries struggle during the 1920s?

  They struggled to maintain profits
• What impact did cars and trucks have on other industries?

  They negatively affected railroads and steel companies
• What was the McNary-Haugen Bill proposed to do?

  Provide price supports for surplus crops
• Who vetoed the McNary-Haugen Bill?

  President Coolidge
• How did income inequality change in the 1920s?

  The wealthiest 1% had a 75% income increase
• What was the average yearly income for Americans in the 1920s?

  $2,500
• Who were the sponsors of the McNary-Haugen Bill?

  1. Charles McNary and Rep. Gilbert Haugen
• Who was elected President in 1928?

  Herbert Hoover
• What economic condition did the Dow Jones Industrial Average measure in the 1920s?

  A bull market with rising stock prices
• How many Americans invested in stocks during the 1920s?

  4 million
• What is speculation in the context of stock buying?

  Buying stocks for quick profits
• What does buying on margin mean?

  Buying stocks with loans
• What significant event occurred on October 29, 1929?

  Black Tuesday, stock prices plummeted
• What was the record number of stocks sold on Black Tuesday?

  Approximately 16.4 million stocks
• What was the financial impact of the stock market crash by November 1929?

  Up to $30 billion lost
• What did the stock market crash signify?

  The start of the Great Depression
• What were some factors that led to reduced demand for goods during the Great Depression?

  High tariffs, farming crisis, income inequality
• How did easy distribution of credit contribute to the Great Depression?

  It led to overproduction despite lower demand
• What happened to banks as the stock market crashed?

  People panicked and went on bank runs
• How many banks closed in 1929?

  Approximately 600 banks
• What was the unemployment rate rise from 1929 to 1933?

  From 3% to 25%
• How did the Great Depression affect people with jobs?

  They suffered pay cuts and reduced work time
• What was the global impact of the Great Depression on European countries?

  Heavily impacted due to post-WWI recovery
• What was the effect of the Hawley-Smoot Tariff?

  Raised import taxes and hindered trade
• How much did world trade drop due to the Great Depression?

  By 40%
• What was President Hoover's initial approach to the economy during the Great Depression?


  Reassured Americans that the economy would improve
• What did Hoover promote as a solution for individuals during the Great Depression?

  Rugged individualism and self-sufficiency
• Why did Hoover oppose welfare programs?

  He believed they promoted dependency
• What actions did Hoover take to stabilize the economy?

  Called bank and labor leaders to cooperate
• What did Hoover ask employers to do during the Great Depression?

  Not to lay off workers or cut pay
• What did Hoover organize to help the poorest during the Great Depression?

  Charity groups
• What major construction project did Hoover approve to help the economy?

  The Boulder Dam (now Hoover Dam)
• What was the public's reaction to Hoover's policies by 1930?

  They lost hope and mocked him
• What were "Hoovervilles"?


  Shantytowns of people who lost homes
• What did "Hoover flags" symbolize?

  Empty pockets pulled outwards
• What were "Hoover blankets" used for?

  Newspapers used by the homeless
• What did farmers do during "farm holidays"?

  Refused to work and destroyed products