Stock Market Crash and Great Depression Overview

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Questions and Answers

What was one major consequence of the declining auto sales in 1930?

Increased wages for workers

A rise in business profits

Layoffs of workers to reduce costs (correct)

Higher prices for vehicles

What was the unemployment rate during the Great Depression as described?

Over 10 percent

Around 15 percent

Less than 20 percent

More than 25 percent (correct)

What effect did the Great Depression have on banks?

Banks were closed for extended periods (correct)

Banks increased loan approvals

Most banks remained open throughout

Banks expanded their services

What environmental factor contributed to the difficult conditions faced by farmers during the Great Depression?

Drought conditions Signup and view all the answers

Which term describes the devastating agricultural conditions during the 1930s due to drought?

The Dust Bowl Signup and view all the answers

How did the economic crisis affect entrepreneurs who thrived in the 1920s?

Many lost their businesses and became penniless Signup and view all the answers

What was a response people began to consider as the economic situation worsened?

Government intervention to assist the unemployed Signup and view all the answers

What was the general sentiment towards the government during the Great Depression?

Low confidence in both economy and government Signup and view all the answers

What was Franklin D. Roosevelt's primary belief regarding government intervention during the Great Depression?

The government must help the people during economic crises. Signup and view all the answers

What did the Tennessee Valley Authority (TVA) primarily aim to provide during the Great Depression?

Jobs and electricity to the southern states. Signup and view all the answers

What was one of the main goals of the New Deal programs introduced by Roosevelt?

To stimulate economic recovery through increased government spending. Signup and view all the answers

Which economic theory significantly influenced Roosevelt's approach to the Great Depression?

Keynesian economics. Signup and view all the answers

How did Canada's approach to the Great Depression differ from the United States' approach?

Canada introduced social programs while keeping liberal economic policies. Signup and view all the answers

What was a significant aspect of Robert Bennett's economic plan for Canada?

Implementing a progressive income tax and minimum wage. Signup and view all the answers

What ideology did the Co-operative Commonwealth Federation (CCF) promote during its formation?

Universal cooperation for the common good and social responsibility. Signup and view all the answers

How did James Shaver Woodsworth view unemployment during the Great Depression?

As a systemic issue requiring government intervention. Signup and view all the answers

What aspect of Keynes' theories influenced the Canadian government's actions during the Great Depression?

Social programs to aid citizens during economic crises. Signup and view all the answers

Why did some Americans fear Roosevelt's New Deal programs?

They thought it resembled communist ideologies. Signup and view all the answers

What was a common belief among classical liberalists regarding government intervention during the Great Depression?

The economy should recover on its own with no interference. Signup and view all the answers

What was one of the main goals of the social programs introduced by the Canadian government during the Great Depression?

To maintain a minimum standard of living for citizens. Signup and view all the answers

What group was formed in Canada during the Great Depression advocating for social reforms?

The Co-operative Commonwealth Federation. Signup and view all the answers

Study Notes

Stock Market Crash and the Great Depression

The 1929 stock market crash triggered a prolonged depression, diminishing faith in Adam Smith's ideals in many liberal democracies.
Auto sales declined sharply in May 1930, causing prices to fall. Wages remained stagnant, making it difficult for entrepreneurs to profit.
Falling sales and prices led to job losses and a surge in unemployment, exceeding 25%.
Banks closed for an extended period, halting financial transactions and leading to widespread economic disruption.
Rural areas were severely affected by falling farm product prices and a devastating drought, creating the Dust Bowl.
Farmers lost their land and migrated to cities seeking work, but employment remained scarce.
Many entrepreneurs lost their fortunes, resulting in a decade-long economic crisis.
The crisis sparked debate over government intervention to aid the unemployed.

Laissez-Faire Capitalism in Crisis

The Great Depression sparked differing views on economic management.
Confidence in the economy and government plummeted, necessitating action to boost employment, spending, and economic confidence.

FDR and the New Deal (USA)

The US free market faced severe challenges due to poverty, monopolies, unemployment, and the Great Depression.
Franklin D. Roosevelt, elected in 1932, championed interventionist policies to combat the crisis.
Roosevelt proposed "Alphabet Agencies" in his New Deal initiative to create jobs, stimulate the economy, and provide relief focused on recovery and reforms.
The Tennessee Valley Authority (TVA) was an example, providing electricity and jobs spanning seven Southern states.
The New Deal diverged significantly from Adam Smith's capitalist principles but responded to public demand for government action.
Roosevelt's actions generated both support and opposition from those who believed in classical liberal principles (no government intervention) or viewed the policies as communist threats.

Canada's Response

The Canadian government adopted social programs to address economic hardship while maintaining its capitalist system.
This shift towards a mixed economy combined collectivist ideologies with free market principles.
Prime Minister Robert Bennett implemented reforms similar to the US New Deal, including progressive taxation, minimum wage, and social welfare programs.

Co-operative Commonwealth Federation (CCF)

The CCF emerged during the Great Depression, emphasizing collective action and social welfare.
The party believed capitalism fostered inequality and advocated for government responsibility in economic planning.
Its leader, James Shaver Woodsworth, attributed unemployment to systemic failures, opposing individual blame.
Facing opposition from some who viewed it as a communist threat.
The CCF later transformed into the New Democratic Party (NDP), with various adopted policies like unemployment insurance, family allowances etc.

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Description

Explore the causes and consequences of the 1929 stock market crash that initiated the Great Depression. This quiz delves into the economic downturn, unemployment rise, and the impact on various sectors including agriculture and finance. Understand the crisis's influence on government intervention debates and market philosophies.