500 likes | 531 Views
The Stock Market Crash, the Great Depression, and the New Deal. What was the Great Depression?. Period of severe economic hardship that lasted from 1929 to World War II. What were three causes of the Great Depression?. Overspeculation in stocks Collapse of the banking system
E N D
The Stock Market Crash, the Great Depression, and the New Deal
What was the Great Depression? • Period of severe economic hardship that lasted from 1929 to World War II
What were three causes of the Great Depression? • Overspeculation in stocks • Collapse of the banking system • Hawley-Smoot Tariff
What is speculation? • Buying something at a low price in the hope of selling it later at a profit
What is the largest stock market in the United States? • The New York Stock Exchange
What does it mean to buy stock on margin? • Buy stock on credit
What event triggered the Great Depression? • The Stock Market Crash
What functions as the central bank of the United States? • The Federal Reserve System
What acts as a banker’s bank? • The Federal Reserve
What controls the nation’s money supply? • The Federal Reserve
What is inflation? • When prices increase and the dollar buys less
What does the Federal Reserve do to stop inflation? • Raises interest rates
The Federal Reserve’s power to set ________ ______ enables it to control the nation’s money supply? • Interest rates
What does the Federal Reserve do if it believes the economy is overheating and causing inflation? • Raises interest rates
What does the Federal Reserve do if it believes the economy is slowing down? • Lowers interest rates
What is a protective tariff? • A tax on imports that is so high that Americans cannot afford to buy foreign goods
What was the Hawley-Smoot Tariff? • Protective tariff • The highest tariff rates in history
The Hawley-Smoot Tariff was supposed to help American business. Why did this tariff law hurt the American economy?
Foreign countries retaliated by passing high tariffs of their own. • This meant foreigners could no longer afford to buy American-made goods. • The decrease in foreign sales was greater than the increase in the sale of American-made goods within the United States.
What were five effects of the Great Depression on the United States?
Unemployment increased • Banks closed • Consumer demand for goods dropped • Political unrest increased • Farm foreclosures increased
What was the unemployment rate among Americans by 1932? • 25%
Who was president when the Great Depression began? • Herbert Hoover
What was Herbert Hoover’s political party? • Republican
What president started the New Deal? • Franklin D. Roosevelt
What was President Franklin Roosevelt’s program to end the Great Depression? • The New Deal
Who said, “The only thing we have to fear is fear itself?” • Franklin D. Roosevelt
What the three R’s of the New Deal? • Relief • Recovery • Reform
What is reform? • Change for the better
What was the purpose of the New Deal “relief” programs? • Ease the suffering of the unemployed
What did WPA do? • Paid people to work on public works projects
What are public works projects? • Construction projects paid for by the government • Benefit everyone
Roads • Schools • Bridges • Post offices • Parks • Libraries • Dams
What was the purpose of the New Deal “recovery” programs? • Help Business Recover
For what did AAA stand? • Agricultural Adjustment Administration
What did AAA do? • Paid farmers not to raise crops and livestock • By limiting supply, tried to raise livestock and crop prices
What was the purpose of New Deal “reform” programs? • Bring about change for the better in American society
Give two examples of New Deal “reform” programs. • FDIC • Social Security
For what does FDIC stand? • Federal Deposit Insurance Corporation
What does FDIC do? • Deposits at FDIC-insured banks are now insured up to at least $250,000 per depositor through December 31, 2013
What did the Social Security Act provide? • Unemployment insurance • Old-age pensions
What brought an end to the Great Depression? • World War II
What three rights did workers gain during the New Deal? • Right to form a Union • Right to Strike • Minimum Wage
Since the New Deal, who do Americans hold responsible for bringing prosperity to the U.S. economy? • The federal government, especially the President