7.5 The Great Depression and the New Deal

• The economy produced more goods than consumers could afford to buy, leading to overproduction and reduced prices
• The stock market crash of 1929 led to a loss of trillions of dollars in wealth.


  True
• The Great Depression was caused by a single factor: the stock market crash of 1929.

  False
• Hoover's initial response to the Great Depression relied on voluntary cooperation from businesses
• Reduced production, consumption, and investment created a prolonged economic crisis known as the Great Depression
• Hoover's voluntary measures proved insufficient because the crisis required more aggressive government action
• What were the three main goals of FDR's New Deal program?

  Relief, recovery, reform
• Order the following New Deal programs by their primary focus:

  1️⃣ Civilian Conservation Corps (CCC) - Jobs and conservation

  2️⃣ Tennessee Valley Authority (TVA) - Regional development

  3️⃣ Social Security - Retirement benefits

  4️⃣ Securities and Exchange Commission (SEC) - Financial regulation
• The Securities and Exchange Commission (SEC) was established to prevent fraud and protect investors
• Weaknesses in the banking system caused a loss of public confidence
• The stock market crash shattered public confidence in the economy
• Overproduction and underconsumption led to surpluses and reduced prices, harming businesses during the Great Depression.

  True
• What led to the loss of public confidence and a credit crunch during the Great Depression?

  Investment in the stock market
• What type of cooperation did Hoover rely on to address the Great Depression?

  Voluntary cooperation
• Franklin D. Roosevelt believed in aggressive government intervention to address the Great Depression.

  True
• FDR's New Deal replaced reliance on voluntary cooperation with direct government action
• What was the primary goal of Social Security during the New Deal?

  Financial security for the elderly
• What were the key causes of the Great Depression?

  Overproduction, stock market crash, wealth inequality
• How did weaknesses in the banking system contribute to the Great Depression?

  Bank failures and credit crunch
• What event triggered the Great Depression?

  Stock market crash of 1929
• The stock market crash of 1929 led to a loss of consumer confidence and reduced spending.


  True
• Many banks invested heavily in the stock market and failed when it crashed
• Hoover's voluntary measures were sufficient to halt the economic decline during the Great Depression.

  False
• President Hoover believed in limited government intervention to address the Great Depression.

  True
• Match the approach of Hoover with the approach of FDR during the Great Depression:

  Hoover ↔️ Limited government intervention

  FDR ↔️ Expanded government role
• The Civilian Conservation Corps (CCC) provided jobs for young men during the Great Depression.

  True
• Social Security provided retirement benefits and disability insurance to Americans.


  True
• The stock market crash of 1929 reduced consumer confidence and spending.


  True
• The stock market crash of 1929 shattered public confidence in the economy.


  True
• The stock market crash shattered public confidence in the economy
• Wealth inequality during the Great Depression limited overall consumer demand.


  True
• What philosophy guided President Hoover's initial response to the Great Depression?

  Limited government intervention
• What belief distinguished Franklin D. Roosevelt from Herbert Hoover regarding government intervention in the economy?

  Aggressive government intervention
• What were two key programs of the New Deal aimed at providing jobs and infrastructure?

  CCC and TVA
• Which New Deal program regulated the stock market and financial industry to prevent fraud?

  SEC
• The Civilian Conservation Corps improved the quality of life through conservation projects.


  True
• What was a major criticism of the New Deal regarding the role of government?

  Expanded role of government
• Arrange the following long-term effects of the Great Depression and the New Deal in chronological order:

  1️⃣ Increased role of government in the economy

  2️⃣ Expanded social welfare programs

  3️⃣ Debates about government intervention in the economy
• Arrange the following impacts of the stock market crash in chronological order:

  1️⃣ Loss of trillions of dollars in wealth

  2️⃣ Reduced consumer spending and investment

  3️⃣ Exacerbation of the economic downturn
• Many banks invested heavily in the stock market and subsequently failed