Great Depression Review

Great Depression Review

Vocabulary

Key Concepts

Economy

• wealth and resources of a country or region

• focused on the production (making) and consumption (using) of goods

Supply and Demand

• As a supply of a product goes up and the demand is steady; the price will fall

• As demand for a product goes up and supply stays the same; the price will rise

• if prices are high; people will demand less of a product

Say's Law

• You will never produce too many goods

• Lower the price; people will buy up the supply

• Raise the price if demand is too high to maintain the supply

Business Cycle

• businesses are always going up and down

• as more people get employed; people spend more money

• as people spend more money more businesses keep spending

• eventually there is a peak where people stop buying; businesses fire people

• people stop spending

Multiple Choice

If Jamel is selling lemonade for $0.50 a cup and cannot keep up his supply; the law of supply and demand says that

• he should raise prices

• he should lower prices

• he should keep prices the same

Multiple Choice

The pandemic has caused a decrease in the wealth and resources of many people. This describes a downturn in our

• economy

• supply

• demand

Causes

Stock Market Crash

• In the 1920's, people were investing in the stock market

• Many people were borrowing money to make investments.

• Stock Market CRASHED

• People lost all of their investments.

Bank Failures

• 9,000 banks FAILED

• Banks were investing too - they lost money as well.

• Banks were uninsured. They didn't have to have your money.

• Banks stopped offering loans.

Reduction in Purchasing Across the Board

• 1. People stopped purchasing items.

• 2. Companies had surplus items

• 3. Companies had no need to make items

• 4. Companies fire employees.

• 5. Go back to 1

Economic Policy with Europe

• USA taxed foreign goods.

• Foreign goods now cost more - the hope was people would then "buy American"

• Foreign countries then taxed our goods

• Foreigners stopped buying our goods

Dust Bowl

• Not necessarily a cause - but it made things worse!

• Farmers had plowed up the prairie in previous years.

• Plowing leads to no roots in the ground.

• New plants didn't grow due to lack of rain

• Soil turns to dust.

• No crops! No money for farmers. Reduction in spending.

Multiple Choice

Before the Great Depression; many Americans ______________ in the stock market as stock prices continued to rise.

• supplied

• demanded

• insured

• invested

Multiple Choice

As the stock market crashed, many banks also lost money and then closed. People lost their savings because banks did not have _______________.

• Say's Law

• Economy

• insurance

Multiple Choice

The Dust Bowl was an effect of the Great Depression.

• True

• False

Multiple Select

When the USA put extra taxes on goods sold to European countries,

• those countries had to pay extra for our goods

• those countries probably bought less goods from the USA

• those countries put taxes on goods they sold to the USA

Poll

I know the difference between an economic depression and depression.

• Yes

• No

Poll

I can explain why the Great Depression happened.

• Definitely

• Mostly

• I still have lots of questions.

Responses

Hoover, Roosevelt and the New Deal

President Hoover

• Was President for the first 3 years of the Great Depression

• Did not want to intervene.

• Thought Say's Law would help.

• Prices would drop and at some point, people's spending would increase.

• Many people began living in "Hoovervilles" - shacks made of anything they could find

President Roosevelt

• Won in 1932 by a wide margin.

• Wanted the government to intervene.

• Created many government programs.

• Created the New Deal

• Focused on Relief, Recovery, Reform

TVA - Tennessee Valley Authority

• built new dams in the southern USA

• brought electricity to people who never had it

• created jobs - paid for by taxpayers and debt

CCC - Civilian Conservation Corps

• employed young people - mostly men - in camps throughout the USA

• built trails, roads, lodges in national and state parks

• got people jobs and money

• paid for by taxpayers and debt

• run by US Army - camps were segregated

Works Progress Administration

• employed 8.5 million Americans

• Sponsored infrastructure and arts

• storm drains, new school buildings were built, sewer lines were built

• employed 5300 artists like Jackson Pollock

• paid for by taxpayers and debt

Multiple Choice

Which President thought the economy would fix itself?

• President Hoover

• President Roosevelt

Multiple Select

New Deal Programs often

• attempted to employ many people

• were started under President Roosevelt

• created debt for the government

Poll

I can explain how the government responded to the Great Depression.

• Definitely

• Mostly; I still have a couple of questions

• I'm lost!