The USA, 1929-41

Identify three reasons for the Wall Street Crash:

• The demand for shares in the 1920s had driven up share prices far beyond what they were actually worth

• Americans had great confidence in the economy and kept buying shares, believing prices would keep on rising

• A bull pool encouraged inexperienced traders to speculate, artificially increasing prices

• American goods were no longer regarded as being good quality

How much had the value of shares fallen by mid-November 1929?

• $260m

• $2.6bn

• $26bn

• $260bn

Why were banks not able to help struggling business during/after the Wall Street Crash?

• They had invested the money people deposited with them in the stock market so were struggling themselves

• They didn't believe it was their role to interfere in the economy

• They didn't need to as the US Government was helping businesses instead

• They were hoping that businesses would fail to buy their assets cheaply afterwards

In addition to the Wall Street Crash, the Great Depression had several other causes. One of the key reasons was under-consumption. Because there was a huge disparity in wealth in the USA, ​ (a)   of Americans were on low incomes, which meant they were not buying the new luxury goods that were being produced. This led to ​ (b)   as workers who produced goods were no longer needed. ​ (c)   were another group who struggled. This was because of the problems over-production had caused after the First World War, and made worse by the severe ​ (d)   in the early 1930s which led to huge dust storms. Lastly, the Great Depression also caused significant problems in ​ (e)   , and countries there could no longer afford to buy American goods, lowering demand even further.

• 71%
• 31%
• unemployment
• higher wages
• Farmers
• Women
• droughts
• famine
• Europe
• Asia

How many banks were part of the Federal Reserve System, meaning that the money people saved in the bank were protected in case the bank got intro trouble?

• One-quarter

• One-third

• Half

• Two-thirds

Unemployment had been 3.2% in 1929. What was it by 1933?

• 4.9%

• 14.9%

• 24.9%

• 34.9%

Match the reason why different disadvantaged groups suffered particularly badly during the Great Depression:

• The elderly

• People could no longer afford luxuries like domestic servants.

• Women

• Preference given to white workers. Many were deported or forced to leave.

• Immigrant workers

• Could not afford to retire as only 11 states had a pension scheme

• African Americans

• Most likely to lose their jobs. In areas of high tensions, organisations formed calling for white people to be given preference in the jobs market.

Congress had passed a law in 1924 giving First World War veterans a bonus of up to ​ (a)   each to make up for the wages they lost whilst fighting for their country. Most would have to wait until ​ (b)   to receive the bonus, but due to the Great Depression many felt they needed it sooner. In 1932, ​ (c)   people, known as the ​ (d)   , marched to Washington DC to try and force Congress to listen to their demands. However, tensions rose after some of the marchers ignored the deadline to leave and the US Army were sent in to clear the marchers, resulting in 100 marchers being injured and a child being killed. These events destroyed the reputation of President ​ (e)   .

• $625
• $1,300
• 1945
• 1965
• 20,000
• 200,000
• Bonus Marchers
• Veterans' Movement
• Roosevelt
• Hoover

What was the main reason why Hoover's government struggled to deal with the effects of the Great Depression?

• The economic problems were do big there was nothing the government could do

• The government couldn't keep up with the pace of events

• As Republicans, the government were opposed to government intervention in the running of the economy

• President Hoover was personally profiting from the events of the Great Depression

What phrase describes Roosevelt's plan of the government stimulating economic recovery by creating jobs?