Great Depression Causes and Effects

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following are root causes of the Great Depression? (Select all that apply)

Factories and farms produce more goods than people can buy (correct)

Banks make loans that borrowers can pay back

Food production increased significantly

After the stock market crash, many businesses cannot find people who will invest in their growth (correct)

Which of the following are effects of the Great Depression? (Select all that apply)

More families unite

Many banks fail (correct)

Increased job opportunities

Millions of Americans are out of work (correct)

What is buying on margin?

A practice that allows people to buy stock with a down payment of a portion of the value.

What does Black Tuesday refer to?

The day the stock market crashed, signaling the start of the Great Depression. Signup and view all the answers

What was the main cause of the Great Depression?

The stock market crash of October 1929. Signup and view all the answers

What does it mean to be bankrupt?

Unable to pay debts. Signup and view all the answers

What is a relief program?

A government program to help the needy. Signup and view all the answers

What is a soup kitchen?

A place where food is provided to the needy at little or no charge. Signup and view all the answers

What is a Hooverville?

A group of shacks in which homeless lived during the Great Depression. Signup and view all the answers

What did the Hawley-Smoot Tariff do?

Raised import duties by as much as 50%, worsening the worldwide depression. Signup and view all the answers

What is the National Industrial Recovery Act?

Develops rules for doing business. Signup and view all the answers

What does the Federal Deposit Insurance Corporation do?

Insures savings accounts in banks approved by the government. Signup and view all the answers

What were some hardships faced by women during the Great Depression?

Faced difficulty finding jobs; men usually hired before women. Signup and view all the answers

What were some hardships faced by African Americans during the Great Depression?

Often first to lose jobs; faced continued discrimination; a few leaders became advisers to President Roosevelt. Signup and view all the answers

What were some hardships faced by Mexican Americans during the Great Depression?

Faced discrimination; some forced to return to Mexico. Signup and view all the answers

What were some hardships faced by Asian Americans during the Great Depression?

Faced discrimination; competition over jobs led to calls that they leave the country. Signup and view all the answers

What were some hardships faced by Native Americans during the Great Depression?

Faced terrible poverty; however, Congress passed new laws giving them more control over their own affairs. Signup and view all the answers

What is the Dust Bowl?

A region in the central Great Plains that was hit by a severe drought. Signup and view all the answers

What is a migrant worker?

A person who moves from one region to another in search of work. Signup and view all the answers

Study Notes

Root Causes of the Great Depression

Overproduction by farms and factories led to goods exceeding consumer demand.
Banks offered loans that borrowers were unable to repay, contributing to financial instability.
Stock market crash initiated a lack of investor confidence, hampering business growth.

Effects of the Great Depression

Widespread bank failures led to loss of savings for many individuals.
Numerous businesses and factories shut down, causing economic turmoil.
Millions of Americans lost jobs, resulting in homelessness and hunger.
Families experienced fragmentation and severe societal suffering.

Buying on Margin

A financial practice allowing consumers to purchase stocks by paying only a fraction of the stock's value upfront.

Black Tuesday

The date of the significant stock market crash that marked the onset of the Great Depression.

Overview of the Great Depression

The 1929 stock market crash ended the economic boom of the 1920s, leading to a major global crisis.
The U.S. experienced a staggering 89% decline in stock prices.
Manufacturing output declined to 54% of the 1929 level by 1932, with unemployment rates soaring to 25-30%.
Rural areas, particularly the Great Plains, suffered from devastating droughts and dust storms, impacting farmers significantly.
A surge in protests, hunger marches, and union activities occurred, while many suffered in silence.
Countries adopted protectionist trade laws in response to economic chaos.
By late 1932, U.S. stock prices were only 20% of their previous value, with over 11,000 banks failing by 1933.

Bankruptcy

Defined as the inability to pay off debts, affecting individuals and businesses alike.

Relief Programs

Government initiatives designed to provide assistance to those in need during the Great Depression.

Soup Kitchen

Facilities providing food at little or no cost to individuals requiring assistance.

Hooverville

Makeshift communities of shacks where many homeless individuals resided during the Great Depression.

Hawley-Smoot Tariff

1930 legislation that raised import duties significantly, worsening the global economic situation.

National Industrial Recovery Act

Legislation aimed at establishing regulations for business operations to stabilize the economy.

Federal Deposit Insurance Corporation (FDIC)

A government agency that insures deposits in approved banks to maintain public confidence in the financial system.

Hardships Faced by Women

Women often struggled to find jobs as hiring preference was typically given to men.

Hardships Faced by African Americans

African Americans were among the first to lose jobs during the Depression, facing ongoing discrimination, though some became advisers to President Roosevelt.

Hardships Faced by Mexican Americans

They encountered significant discrimination, leading to some being coerced back to Mexico.

Hardships Faced by Asian Americans

Discrimination persisted, resulting in job competition and calls for repatriation.

Hardships Faced by Native Americans

Experienced intense poverty, yet new congressional laws provided them greater control over their affairs.

Dust Bowl

A severe drought affected the central Great Plains, exacerbating the economic situation for farmers.

Migrant Worker

Individuals who move from one area to another in search of employment, often related to agricultural work.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the root causes and significant effects of the Great Depression through this interactive flashcard quiz. Understand how overproduction, bank failures, and unemployment shaped this critical period in history.