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