Great Depression & New Deal Review

Why did many of America’s banks fail after the stock market crash of 1929?

• The banks foresaw the need for charity in the 1930s, so they donated all the cash to soup kitchens.

• The Hawley-Smoot Tariff taxed the banks heavily and took all the cash.

• Laissez-faire politics caused the banks to liquidate all their cash in an effort to save the stock market.

• People rushed to the banks and withdrew all their money in a panic after the stock market crashed.

How did excess consumerism, buying on margin, and the overextension of credit contribute to the beginning of the Great Depression?

• Factories could not withstand the amount of excess consumerism and were forced to close, beginning the Depression.

• Buying on margin caused the banks to run out of cash and thus began the Depression.

• Americans were in large amounts of debt that they had no way to pay back.

• The overextension of credit was alleviated by the Hawley-Smoot tariff, but excess consumerism was too much for the economy.

Why was “laissez-faire” politics a problem when the Great Depression occurred?

• Laissez-faire politics created high taxes that consumers could not pay, causing the Depression.

• The government had no plan to fix the economy and no safety net for the American people.

• Under laissez-faire, the government over-regulated the stock market, which caused the crash.

• Laissez-faire encouraged Rugged Individualism, and fierce competition caused the market to crash

What was the purpose of the Hawley-Smoot Tariff, and how did it affect American/global trade?

• The Hawley-Smoot Tariff was meant to protect American businesses by taxing foreign goods, but it hurt global trade.

• The Hawley-Smoot Tariff was created to start the New Deal, but it was shut down by the Supreme Court.

• The tariff was meant to forgive consumer debt, and it caused the economy to recovery almost immediately.

• The tariff offered loans to banks and stimulated global trade to record highs.

What was the ultimate effect of all the causes of the Great Depression? What level did this effect reach by 1933?

• The ultimate effect was a rise in violent protests across America and a civil war in 1933.

• Rising levels of unemployment and homelessness; Unemployment reached 25% of the population by 1933.

• The effect was an increase in taxes; taxes were as high as 90% of Americans’ income by 1933.

• The result was government expansion and loan forgiveness; the Depression was over by 1933.

Why did farmers expand their planting after World War I?

• Farmers expanded their planting to reduce the amount of meat Americans were consuming.

• The expansion of planting came as a result of the high taxes after the passage of the Hawley-Smoot Tariff.

• Wheat prices dropped after WWI, so farmers planted more to try to make money.

• Farmers expanded their planting to hold the dust in and stop the Dust Bowl.

Describe the social impacts of the Dust Bowl on farmers, including ‘Okies’.

• The Dust Bowl caused many farmers to embrace the policies of Social Darwinism and Okie-ism.

• The Dust Bowl caused farmers and Okies to riot on the Great Plains and attempt to secede from the US.

• Farmers and Okies united against the government and marched to Washington, D.C.

• Many farmers were forced to migrate west looking for work; ‘Okies’ were Oklahomans who moved to California.

How did the government respond to the Dust Bowl?

• The government essentially did nothing and continued to operate under a laissez-faire system.

• The government created the RFC to give money to farmers to begin new professions.

• The government paid farmers to farm less and use different farming techniques in an effort to stop the Dust Bowl.

• The government brought in the Bonus Army to help farmers plant more.

Why did many people migrate around America during the Great Depression?

• Americans moved around the country so they could compare how bad the Depression was in different regions.

• Many Americans moved all over the country looking for work.

• Americans moved to different regions of the country where the Hawley-Smoot Tariff was not in effect.

• Americans moved around the country to demonstrate the ideals of Rugged Individualism.

What are Hoovervilles?

• Hoovervilles are homeless camps or shantytowns named for President Hoover.

• Hoovervilles are large homes that Americans built after receiving loans from the RFC.

• Hoovervilles are towns where the Dust Bowl created a layer of dust two feet thick.

• Hoovervilles are towns that President Hoover visited and taught Americans to be Rugged Individuals.