Economic Boom and Great Depression Quiz

Economic Boom and Collapse

• The 1920s in the U.S. marked a significant economic boom characterized by rapid stock market growth.
• Many investors engaged in speculative stock purchases, anticipating ongoing economic expansion.
• The optimism ended in 1929 with a stock market collapse driven by panic, leading to widespread economic damage.

The Great Depression

• The stock market crash severely impacted the U.S. economy, causing a spike in unemployment and reduced industrial production.
• The period following the crash is known as the Great Depression, a time of severe economic hardship.

Franklin D. Roosevelt’s New Deal

• In 1932, Franklin D. Roosevelt was elected and introduced the New Deal to combat the Great Depression.
• The New Deal consisted of a series of programs aiming to provide immediate relief, economic recovery, and systemic reform.

Relief Programs

• The New Deal's relief initiatives included unemployment aid and the establishment of Social Security for the elderly.
• Significant employment programs were created, including the Public Works Administration and the Works Progress Administration, which constructed infrastructure like roads, bridges, and schools.

Economic Recovery Efforts

• The government initiated the Blue Eagle campaign, led by the National Recovery Administration, to promote fair labor practices and price increases.
• This campaign encouraged employers to treat workers more equitably to stimulate economic recovery.

Economic Reforms

• To stabilize the financial system, the government insured bank deposits, providing confidence to depositors.
• The U.S. Securities and Exchange Commission was established to regulate the stock market and prevent future collapses.

Legacy of the New Deal

• Historians and economists largely agree that the New Deal aided the U.S. economy during the Great Depression.
• Full economic recovery and a significant drop in unemployment were eventually achieved, largely due to increased production during World War II.

Test your knowledge of the economic boom of the 1920s, the subsequent Great Depression, and Franklin D. Roosevelt's New Deal. This quiz covers key events, programs, and impacts of this transformative period in U.S. history.