Effects of the Great Depression Flashcards

Questions and Answers

What were the overall effects of the Great Depression?

High unemployment, poverty, low profits, deflation, plunging farm incomes, lost opportunities for economic growth and personal advancement.

Which of the following were statistics related to the Great Depression? (Select all that apply)

Housing prices dropped by 30% (correct)

The US economy shrank by 10%

The unemployment rate reached a high of 25% (correct)

50% of all US banks failed (correct)

How did the Great Depression change Americans' beliefs about government?

Americans began to demand that the government take action to end the Depression and support new laws and programs.

Most Americans trusted banks during the Great Depression.

False Signup and view all the answers

What was one reason for ending Prohibition during the Great Depression?

To assist farmers by allowing them to sell more crops needed for alcohol production. Signup and view all the answers

What were Hoovervilles?

Shantytowns built by homeless families during the Great Depression. Signup and view all the answers

Did the effects of the Great Depression extend beyond the United States?

Yes, the Depression spread globally, affecting many countries, especially in Europe. Signup and view all the answers

What was the impact of the Great Depression on national debt?

The American government accumulated a tremendous national debt due to large expenditures without raising taxes. Signup and view all the answers

How did migration patterns change during the Great Depression?

Many former farmers moved to other regions, especially the West Coast, in search of work. Signup and view all the answers

What effect did the Great Depression have on family life?

Fathers felt shame for not supporting their families, and families coped in various ways, either banding together or breaking apart. Signup and view all the answers

Did the Great Depression affect all Americans equally?

No, minority groups, especially African Americans, suffered the most during this time. Signup and view all the answers

Study Notes

Overall Effects of the Great Depression

High unemployment, poverty, low profits, and deflation characterized the era.
Farm incomes plummeted, leading to widespread economic hardship and lost opportunities for advancement.
The interconnectedness of the US economy was starkly revealed during this period.

Great Depression Statistics

50% of all US banks failed.
US economy contracted by 50%.
The unemployment rate soared to 25%.
Housing prices fell by 30%.
International trade decreased by 65%.
Prices of manufactured goods dropped by 10% annually.
Wages for American workers fell by 42%.
Homelessness surged dramatically.

Effect on Government

Shift in American beliefs about government roles occurred, moving from laissez-faire capitalism to increased governmental intervention.
Citizens began blaming the government for the economic crisis and demanded active measures for relief.
Emergence of politicians advocating for new laws and regulatory programs aimed at preventing future economic disasters.

Effect on Banking Industry

Trust in banks eroded significantly due to bank failures and mismanagement of depositors' funds.
Many people avoided banks altogether, fearing further losses.

The End of Prohibition

Prohibition was repealed partly to aid farmers by allowing them to sell crops for alcohol production.
The government sought to generate tax revenue through alcohol sales to fund national recovery efforts.

Hoovervilles

Homeless populations constructed makeshift shantytowns called Hoovervilles, named after President Herbert Hoover.
These shanties were built from salvaged materials like cardboard, tin, and lumber.

International Effects

The Great Depression's impacts extended beyond the US, worsening existing economic troubles in war-torn European nations.
A global economic crisis developed as American economic woes spread internationally.

National Debt

The US government increased its spending significantly in attempts to combat the Depression without raising taxes.
This led to a substantial accumulation of national debt.

Effect on Migration Patterns

The devastation of the farming industry forced many displaced former farmers to migrate in search of work, particularly to California and urban centers.
Population decline in rural Southern and Midwestern states resulted as families sought jobs in more populated areas.

Effect on Family Life

The economic pressures led to feelings of shame among fathers unable to support their families, with some abandoning their families.
Mothers often took on multiple jobs to help sustain the household.
Families faced various outcomes: some grew closer through adversity, while others broke apart, amplifying feelings of loneliness.

Effect on Minorities

While all demographics experienced hardship, minority groups, especially African Americans, faced disproportionately severe consequences during the Great Depression.

Description

Explore the profound impacts of the Great Depression through these flashcards. This quiz covers the overall effects on employment, poverty, and economic growth during this historical period in America. Perfect for students looking to understand this critical event in U.S. history.