The Great Depression Overview

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Questions and Answers

Which program was established to create jobs through public infrastructure projects during the New Deal?

National Industrial Recovery Act

Civilian Conservation Corps

Works Progress Administration

Public Works Administration (correct)

What economic situation helped signal the end of the Great Depression in the United States?

The increase in agricultural exports

The New Deal's major reforms

The outbreak of World War II (correct)

The establishment of the Social Security Act

Which act established important labor rights and remains influential in American society today?

Glass-Steagall Act

Wagner Act (correct)

Fair Labor Standards Act

National Labor Relations Act

What critical lesson about government role in the economy was emphasized by the Great Depression?

Government intervention can mitigate economic crises. Signup and view all the answers

What is one consequence of the collapse of the Glass-Steagall Act in 1999?

It is often linked to the financial crisis of 2008. Signup and view all the answers

What was a significant event that marked the beginning of the Great Depression?

The Stock Market Crash of 1929 Signup and view all the answers

Which factor contributed to the agricultural sector's decline in the 1920s?

Declining consumer demand Signup and view all the answers

What was Herbert Hoover's approach to combating the Great Depression?

Limited government intervention Signup and view all the answers

Which statement describes the impact of the Stock Market Crash of 1929?

It caused a loss of confidence in the economy and decreased spending. Signup and view all the answers

What was one consequence of the bank failures in the years following the crash?

Widespread job losses Signup and view all the answers

What was a major flaw of the Smoot-Hawley Tariff Act?

It triggered a global trade war. Signup and view all the answers

Unemployment during the peak of the Great Depression reached what estimated percentage of the workforce?

20-30% Signup and view all the answers

Which program was part of Franklin D. Roosevelt's response to the Great Depression?

The National Recovery Administration Signup and view all the answers

Study Notes

The New Deal and Public Works

The Works Progress Administration (WPA) was established during the New Deal to create jobs through public infrastructure projects. This program employed millions of Americans in construction, arts, and cultural projects, boosting the economy and providing much-needed relief.

The End of the Great Depression

The entry of the United States into World War II in 1941 is widely considered to have signaled the end of the Great Depression. The war effort created massive demand for industrial goods, boosting production and employment, leading to a significant economic recovery.

Labor Rights and the National Labor Relations Act

The National Labor Relations Act (NLRA), also known as the Wagner Act, enacted in 1935 established important labor rights, including the right to form unions, engage in collective bargaining, and strike. It remains influential in American society today as it protects workers' rights to form unions and negotiate with employers.

The Great Depression and Government Intervention

The Great Depression emphasized the critical lesson about the government's role in the economy. It demonstrated that government intervention is necessary to stabilize the economy during periods of crisis. The government's role in providing social safety nets, regulating financial markets, and stimulating economic activity through public spending became accepted principles in economic policy.

Consequences of the Glass-Steagall Act Repeal

The repeal of the Glass-Steagall Act in 1999, which had separated commercial and investment banking, allowed for the creation of large financial institutions offering both services. This led to increased risk-taking and greater vulnerability to financial crises, culminating in the financial crisis of 2008, highlighting the potential dangers of deregulation in financial markets.

The Beginning of the Great Depression

The Stock Market Crash of 1929 is considered a significant event marking the beginning of the Great Depression. This event caused widespread panic and eroded investors' confidence, resulting in a decline in business investment and consumer spending, leading to a cascading economic downturn.

Agricultural Decline in the 1920s

Overproduction and a decline in agricultural prices contributed to the agricultural sector's decline in the 1920s. This decline affected farmers' incomes and led to a decrease in demand for industrial goods, further exacerbating the economic downturn.

Herbert Hoover's Approach to the Great Depression

Herbert Hoover, the President of the United States during the early years of the Great Depression, believed in limited government intervention. He initially pursued a policy of "rugged individualism," encouraging private sector efforts to resolve the crisis, and later implemented some government measures, but these proved insufficient to address the severity of the depression.

The Impact of the Stock Market Crash of 1929

The Stock Market Crash of 1929 marked the beginning of a prolonged economic downturn, leading to a loss of investor confidence, decreased business investment, and a decline in consumer spending. This had a devastating impact on the US economy and sent ripples throughout the global financial system.

Consequences of Bank Failures

Bank failures in the years following the crash resulted in a loss of savings for many individuals and businesses, hindering their ability to access credit and further slowing down economic activity. This compounded the depression by making it more difficult for people to recover financially.

Flaws of the Smoot-Hawley Tariff Act

The Smoot-Hawley Tariff Act, passed in 1930, dramatically increased tariffs on imports, aiming to protect American industries from foreign competition. However, this backfired by prompting other countries to retaliate with their own tariffs, leading to a global trade war and shrinking international trade, further weakening the fragile global economy.

Unemployment During the Great Depression

Unemployment during the peak of the Great Depression reached an estimated 25% of the workforce. This massive unemployment left millions of Americans without jobs and income, leading to widespread poverty, homelessness, and social unrest.

Franklin D. Roosevelt's Response to the Great Depression

The New Deal is the name given to a series of programs and reforms implemented by President Franklin D. Roosevelt in response to the Great Depression. These programs aimed to provide relief to the unemployed, stimulate economic recovery, and reform the financial system. Key programs included:
- Civilian Conservation Corps (CCC): employed young men in conservation projects, providing jobs and contributing to environmental protection.
- Works Progress Administration (WPA): created jobs through public works projects, including construction, arts, and cultural projects.
- Social Security Act: established a system of social insurance for retirees, unemployed, and disabled individuals, creating a social safety net for those in need.
- Tennessee Valley Authority (TVA): a large-scale project aimed at developing the Tennessee Valley region through hydroelectric power, flood control, and other infrastructure projects.
- National Labor Relations Act (NLRA) or Wagner Act: protected workers' rights to organize unions and bargain collectively.
- Securities and Exchange Commission (SEC): established to regulate financial markets and protect investors.

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Description

Explore the major events and causes of the Great Depression, a pivotal economic disaster spanning the 1920s to the 1940s. Understand how factors like the Stock Market Crash of 1929 and the ramifications of World War I contributed to widespread hardship. This quiz will enhance your knowledge of this significant historical period.