The Roaring Twenties Economy

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Questions and Answers

What was the primary reason why economic problems in the 1920s were initially hidden?

The strong agricultural sector

The decline in unemployment rates

The rise of consumer spending on credit (correct)

The government's intervention in the economy

Which group was most affected by the economic downturn in the early 1920s?

Small business owners

Bankers

Industrial workers

Farmers (correct)

What was the primary cause of the stock market crash in 1929?

A surplus of shares on the market (correct)

Overproduction by industries

A rise in interest rates

A decline in consumer spending

Why did President Hoover respond cautiously to the Great Depression?

He thought that the business cycle would correct itself Signup and view all the answers

What was the main goal of the Reconstruction Finance Corporation (RFC)?

To stimulate economic activity by lending to businesses Signup and view all the answers

What was the primary consequence of the Hawley-Smoot Tariff?

Taxation of American imports by European countries Signup and view all the answers

What was the term used to describe the central and southern Great Plains during the 1930s?

The Dust Bowl Signup and view all the answers

What was the outcome of President Hoover's veto of the bill providing for early payment of bonuses to WWI veterans?

The Bonus Army marched on Washington, D.C. Signup and view all the answers

Why did African Americans and Mexican Americans face an especially difficult time during the Great Depression?

They faced discrimination when competing for a limited number of jobs Signup and view all the answers

What was the main goal of the Securities Exchange Commission (SEC)?

To regulate the stock market Signup and view all the answers

What was a significant flaw of the Social Security Act?

It did not cover a wide range of groups Signup and view all the answers

What was the main concern of conservatives (Republicans) regarding the New Deal?

It threatened individual freedom Signup and view all the answers

What was the primary purpose of the Tennessee Valley Authority?

To develop regional economic development and electric utility Signup and view all the answers

What was the main achievement of the WPA?

Putting roughly 8.5 million Americans to work Signup and view all the answers

What was the significance of the Civilian Conservation Corps?

It extended job opportunities to Mexican Americans and other minority youth Signup and view all the answers

What was the main impact of radio on American culture in the 1920s and 1930s?

It fostered a real-time national conversation Signup and view all the answers

What was the response of Americans to escapist films in the 1930s?

They provided relief from everyday problems Signup and view all the answers

How did New Deal programs affect capitalism?

They strengthened capitalism Signup and view all the answers

What was a significant consequence of the demand for automobiles in the 1920s?

Stimulated growth in many other industries Signup and view all the answers

What was a primary reason for nativists' opposition to immigration?

Immigrants were willing to work for any wage, making it harder for native-born citizens to find jobs Signup and view all the answers

What was a notable difference between urban and rural lifestyles in the 1920s?

Urban Americans had more free time Signup and view all the answers

What was the primary focus of the literature produced during the Harlem Renaissance?

The experiences of African American urban life Signup and view all the answers

What was the Harlem Renaissance a celebration of?

African American urban culture Signup and view all the answers

What was Jazz music characterized as?

A fusion of African and European musical influences Signup and view all the answers

Study Notes

Factors Hiding Economic Problems in the 1920s

Americans' excessive purchasing of consumer goods on credit contributed to hiding economic problems
Many farmers experienced an early depression in the 1920s

The Business Cycle

The US economy was in the expansion phase of the business cycle during the 1920s

The Stock Market Crash

Black Tuesday occurred on October 29, 1929, when stock prices sharply fell
The stock market crashed in 1929 due to a surplus of shares on the market, causing prices to plummet
The crash affected banks initially, as numerous depositors tried to withdraw their money simultaneously

International Reactions

European countries reacted to the Hawley-Smoot Tariff by taxing American imports

Presidential Response

President Hoover responded cautiously to the Great Depression, believing the business cycle would self-correct
He believed in volunteerism, which failed as individuals and businesses acted in their own self-interest

Economic Theories

Trickle-down economics holds that benefits given to banks and large businesses will benefit smaller businesses and consumers
This theory did not work in the 1930s

Government Response

The Reconstruction Finance Corporation (RFC) was established to provide loans to banks, enabling them to stimulate economic activity
The RFC was a response to the growing economic crisis

Environmental Disasters

The Dust Bowl referred to the central and southern Great Plains during the 1930s, which suffered from drought and dust storms
The Dust Bowl was caused by intensive farming practices that removed protective grasses

The Bonus Army

President Hoover's veto of a bill providing early payment of bonuses to WWI veterans led to the Bonus Army marching on Washington, D.C.

Minority Groups

African Americans and Mexican Americans faced discrimination when competing for a limited number of jobs during the Great Depression, making their situation even more difficult

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Description

Explore the factors that hid economic problems in the 1920s, including consumer credit and the Great Crash of 1929. Quiz yourself on the economic downturn and its effects on American life.