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9 Cards in this Set
- Front
- Back
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Long-Term Causes of the Great Depression |
Economic weaknesses
Smoot-Hawley Tariff protected American markets from foreign competition
Speculation
Expansion of credit
Buying on margin
Stock market crash "Black Tuesday" |
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Effects of the Stock Market Crash |
People who lost money on the market could no longer invest or but as many goods.
Businesses went bankrupt and laid off workers
Unemployment
Banks failed |
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The Human Impact of the Great Depression |
More than 10 million Americans became unemployed
Many people lost homes and had to beg for food.
Series of droughts combined with the effects of unsuitable plowing techniques to cause the "Dust Bowl" |
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The first Presidential Response: Herbert Hoover |
Republican who believed in laissez faire economics
Believed the strong work ethic of independent Americans would end the crisis
Cut taxes
Increased federal spending
Established the Reconstruction Finance Corporation to keep banks from going bankrupt
Federal Reserve made the Depression worse by shrinking the money supply
Became so unpopular that Americans called the shantytowns of homeless people "Hoovervilles" |
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The Second Presidential Response: FDR |
Possessed excellent communication skills
Used radio to give reassuring "fireside chats"
Roosevelts "New Deal" was based on: relief, recovery, and reform |
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The First New Deal |
1933-1935 and focused on relief and recovery
FDIC insured bank deposits
Securities and Exchange Commission was created to regulate the stock market.
National Recovery Administration (NRA) encouraged businesses to promote cooperation and fairness
Agricultural Adjustment Act (AAA) limited production of crops and livestock to prevent surpluses
"relief" programs: Civilian Conservation Corps, Public Works Administration, Civil Works Administration; provided young men with work on public projects |
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The Second New Deal |
Aimed for reform and security
Works Progress Administration created new public works projects to increase employment and stimulate the arts
Social Security Act created a "safety-net" for Americans in the event of another Depression
"Wagner Act" gave workers the right to unionize and to submit their grievances to the National Labor Relations Board |
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Reactions to the New Deal |
Supported by many Americans
New Deal did aid the economy but only World War II ended the depression |
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The Cultural Impact of the Great Depression |
John Steinback's novel The Grapes of Wrath depicted the plight of the "Okies"
Dorothea Lange took pictures of migrants and sharecroppers
These works of art gave a human face to the Depression |
