24 Questions
What was the primary reason why economic problems in the 1920s were initially hidden?
The rise of consumer spending on credit
Which group was most affected by the economic downturn in the early 1920s?
Farmers
What was the primary cause of the stock market crash in 1929?
A surplus of shares on the market
Why did President Hoover respond cautiously to the Great Depression?
He thought that the business cycle would correct itself
What was the main goal of the Reconstruction Finance Corporation (RFC)?
To stimulate economic activity by lending to businesses
What was the primary consequence of the Hawley-Smoot Tariff?
Taxation of American imports by European countries
What was the term used to describe the central and southern Great Plains during the 1930s?
The Dust Bowl
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.
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
What was the main goal of the Securities Exchange Commission (SEC)?
To regulate the stock market
What was a significant flaw of the Social Security Act?
It did not cover a wide range of groups
What was the main concern of conservatives (Republicans) regarding the New Deal?
It threatened individual freedom
What was the primary purpose of the Tennessee Valley Authority?
To develop regional economic development and electric utility
What was the main achievement of the WPA?
Putting roughly 8.5 million Americans to work
What was the significance of the Civilian Conservation Corps?
It extended job opportunities to Mexican Americans and other minority youth
What was the main impact of radio on American culture in the 1920s and 1930s?
It fostered a real-time national conversation
What was the response of Americans to escapist films in the 1930s?
They provided relief from everyday problems
How did New Deal programs affect capitalism?
They strengthened capitalism
What was a significant consequence of the demand for automobiles in the 1920s?
Stimulated growth in many other industries
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
What was a notable difference between urban and rural lifestyles in the 1920s?
Urban Americans had more free time
What was the primary focus of the literature produced during the Harlem Renaissance?
The experiences of African American urban life
What was the Harlem Renaissance a celebration of?
African American urban culture
What was Jazz music characterized as?
A fusion of African and European musical influences
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
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.
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