11 terms

USII.6d The Causes an Impact of the Great Depression

This is a review for SOL USII.6d The Causes and Impact of the Great Depression.
The Great Depression
Ended the prosperity of the Roaring 20's with high unemployment, a weak economy and a stock market crash (October 1929)
World War II
Ended the Great Depression
Owning a small piece of a company
Stock Market Crash
People overspeculated on stock, borrowed too much money and in October 1929, too many people tried to sell their stocks, but no one wanted to buy many stocks. This caused the price of a stocks to drop dramatically (crash), basically wiping out peoples' savings. This was a cause of the Great Depression.
Federal Reserve
The "papa bank": in charge of helping out American banks. Its failure to prevent a lot of banks closing was a cause of the Great Depression.
Taxes on imported goods. These were high during the beginning of the Great Depression, which made it worse.
Impacts of the Great Depression
-25% unemployment
-banks and businesses failed
-large numbers of hungry, homeless people
-Farmers' income fell to low levels
Farmers' income
Fell to low levels because of a surplus of supplies left over from World War I (surplus=low prices, low profit)
Supply goes up
Demand and Price goes down
Demand and Price go up
Supply goes down
Dust Bowl
A severe drought in the Great Plains covered part of it with dust, hurting famers even more.