Questions and Answers
What was The Great Depression?
A time period during the 1930s when there was a worldwide economic depression and mass unemployment.
Which of the following were causes of the Great Depression? (Select all that apply)
What were some long-term causes of the Great Depression?
Workers reduced their spending, the amount of money in circulation decreased, and businesses suffered.
How did farmers fare during the Great Depression?
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What was one effect of income uncertainty on consumers during the Great Depression?
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What were some social effects of the Great Depression?
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What event is known as the Wall Street Crash of 1929?
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What contributed to the gradual decline of the economy leading to the Great Depression?
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Who was Herbert Hoover?
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What was Herbert Hoover's approach to the Great Depression?
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Who was Franklin D. Roosevelt?
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What was FDR's program called that aimed to restore confidence in the U.S. economic system?
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Study Notes
The Great Depression
- The Great Depression spanned from 1929 to 1939, marking a global economic downturn and widespread unemployment.
Causes of the Great Depression
- Major causes included credit buying, overproduction, decreased consumer spending, and plummeting stock prices.
- Significant factors:
- Tariffs on foreign goods
- Easy credit availability
- Farm sector crisis
- Weak banking system leading to bankruptcies
Long-term Causes
- Workers reduced spending to manage debts, decreasing the money supply and worsening business conditions.
- The Stock Market Crash served as an immediate trigger but was preceded by prolonged economic weaknesses.
Farmers in Trouble
- Farmers faced low prices throughout the 1920s, with the situation deteriorating after 1929 as many businesses laid off workers.
Consumers in Trouble
- Income uncertainty led to reduced spending on both durable and non-durable goods, particularly after the 1931 gold standard crisis.
- Consumer expenditures declined from 1928 to 1933, despite adjustments for inflation.
Society in Trouble
- The Great Depression drastically altered American social structures, impacting unemployment, living conditions, education, and family dynamics.
Stock Market in Trouble
- The Wall Street Crash of 1929, also known as Black Tuesday on October 29, was the most devastating in U.S. history, signaling worsening economic conditions.
Short-term Causes
- Rising debts led to credit restrictions, contributing to a cycle of lower prices, increased bankruptcies, and a loss of consumer confidence.
- The Stock Market Crash is widely recognized as the beginning of the Great Depression, though underlying issues like bank failures and income inequality predated it.
Struggling to Solve the Great Depression
- Various efforts were made to address the crisis, though the effectiveness of these attempts is debated.
Herbert Hoover
- Served as President from 1928 to 1932 during the onset of the Great Depression.
- His initial approach was marked by a commitment to minimal government intervention, leading to accusations of inaction during the economic collapse.
Hoover's Government Response
- Contrary to perceptions of passivity, Hoover enacted policies similar to those later implemented by Franklin D. Roosevelt, influencing the prolonged duration of the Depression.
Franklin D. Roosevelt
- FDR was President for most of the Depression and World War II, implementing substantial economic reforms.
FDR's Government Response
- Roosevelt sought to restore public confidence with his sweeping economic program known as The New Deal, focusing on immediate relief and recovery efforts.
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Description
Explore key concepts and definitions related to 'The Great Depression' with this set of flashcards. Understand the causes, effects, and the timeline of this significant historical event during the 1930s. Perfect for students looking to reinforce their knowledge in US History.
