The Stock Market Crash, the Great Depression, and the New Deal

1
The Stock Market Crash, the Great Depression, and
the New Deal
2
What was the Great Depression?

• Period of severe economic hardship that lasted
  from 1929 to World War II

3
What were three causes of the Great Depression?

• Overspeculation in stocks
• Collapse of the banking system
• Hawley-Smoot Tariff

4
What is speculation?

• Buying something at a low price in the hope of
  selling it later at a profit

5
What is the largest stock market in the United
States?

• The New York Stock Exchange

6
What does it mean to buy stock on margin?

• Buy stock on credit

7
What event triggered the Great Depression?

• The Stock Market Crash

8
What functions as the central bank of the United
States?

• The Federal Reserve System

9
What acts as a bankers bank?

• The Federal Reserve

10
What controls the nations money supply?

• The Federal Reserve

11
What is inflation?

• When prices increase and the dollar buys less

12
What does the Federal Reserve do to stop
inflation?

• Raises interest rates

13
The Federal Reserves power to set ________
______ enables it to control the nations money
supply?

• Interest rates

14
What does the Federal Reserve do if it believes
the economy is overheating and causing inflation?

• Raises interest rates

15
What does the Federal Reserve do if it believes
the economy is slowing down?

• Lowers interest rates

16
What is a protective tariff?

• A tax on imports that is so high that Americans
  cannot afford to buy foreign goods

17
What was the Hawley-Smoot Tariff?

• Protective tariff
• The highest tariff rates in history

18
The Hawley-Smoot Tariff was supposed to help
American business. Why did this tariff law hurt
the American economy?
19

• 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.

20
What were five effects of the Great Depression on
the United States?
21

• Unemployment increased
• Banks closed
• Consumer demand for goods dropped
• Political unrest increased
• Farm foreclosures increased

22
What was the unemployment rate among Americans by
1932?

• 25

23
Who was president when the Great Depression began?

• Herbert Hoover

24
What was Herbert Hoovers political party?

• Republican

25
What president started the New Deal?

• Franklin D. Roosevelt

26
What was Franklin Roosevelts political party?

• Democrat

27
What was President Franklin Roosevelts program
to end the Great Depression?

• The New Deal

28
Who said, The only thing we have to fear is fear
itself?

• Franklin D. Roosevelt

29
What the three Rs of the New Deal?

• Relief
• Recovery
• Reform

30
What is reform?

• Change for the better

31
What was the purpose of the New Deal relief
programs?

• Ease the suffering of the unemployed

32
Give an example of a New Deal relief program.

• WPA

33
What did WPA do?

• Paid people to work on public works projects

34
What are public works projects?

• Construction projects paid for by the government
• Benefit everyone

35
Give examples of public works projects.
36

• Roads
• Schools
• Bridges
• Post offices
• Parks
• Libraries
• Dams

37
What was the purpose of the New Deal recovery
programs?

• Help Business Recover

38
Give an example of a New Deal recovery program.

• AAA

39
For what did AAA stand?

• Agricultural Adjustment Administration

40
What did AAA do?

• Paid farmers not to raise crops and livestock
• By limiting supply, tried to raise livestock and
  crop prices

41
What was the purpose of New Deal reform
programs?

• Bring about change for the better in American
  society

42
Give two examples of New Deal reform programs.

• FDIC
• Social Security

43
For what does FDIC stand?

• Federal Deposit Insurance Corporation

44
What does FDIC do?

• Deposits at FDIC-insured banks are now insured up
  to at least 250,000 per depositor through
  December 31, 2013

45
What did the Social Security Act provide?

• Unemployment insurance
• Old-age pensions

46
What brought an end to the Great Depression?

• World War II

47
What is another name for organized labor?

• Unions

48
Were labor unions active during the Great
Depression?

• Yes

49
What three rights did workers gain during the New
Deal?

• Right to form a Union
• Right to Strike
• Minimum Wage

50
Since the New Deal, who do Americans hold
responsible for bringing prosperity to the U.S.
economy?

• The federal government, especially the President