9.2: Great Depression

Hoover's response to the Great Depression

At first nothing; but later he used relief checks, loans to businesses, and construction projects like Hoover Dam

Causes of the Dust Bowl

Drought, over-farming/deep farming techniques

Westward Migration in the 1930s

Farmers move from Great Plains to California to escape the Dust Bowl

Political Impact of the Great Depression

Hoover loses re-election to FDR

Social Impact of the Great Depression

Hoovervilles, Bread Lines/Soup Kitchens, 25% Unemployment rate

Great Depression

Huge economic downturn that left 25% of the population unemployed

Negative effects of buying "on the margin"

If stock prices go down, the speculator owes the bank money and can be in debt

Stock Market Crash

Known as "Black Tuesday," stock prices began to fall rapidly due to everyone wanting to sell their stocks; $40 bil were lost

Bank Run

People rush to banks to withdraw all of their money

Okies/Arkies

People who moved westward from Oklahoma and Arkansas to escape the Dust Bowl

Dust Bowl

Severe dust storms that originated in the Great Plains

Hoovervilles

Slums built during the Great Depression

Effects of the Dust Bowl

Soil unsuitable for farming, giant dust storms, and westward migration of farmers

Causes of the Great Depression

Stock market crash, overproduction, under-consumption, "get rich quick", income gap, bank failures

25%

Unemployment rate during Great Depression

Buying "on the margin"

Using money from the bank to buy stocks in hopes of making a profit; a "get rich quick" scheme

Franklin Delano Roosevelt

Winner of the 1932 Election

Underconsumption

one of the causes of the Great Depression; everyone stopped buying goods, which led to companies laying off workers, which led to even less consumption

Overproduction

one of the causes of the Great Depression; more goods were being produced than could be consumed

"Get rich quick"

one of the causes of the Great Depression; people tried to buy goods and investments with money they did not have

Bank Failures

one of the causes of the Great Depression; people tried to withdraw their life savings, but banks did not have enough money so they closed; people lost their life savings

Gap in wealth

one of the causes of the Great Depression; the wealth continued to get wealthy, but the poor stayed poor