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The Great Depression
Terms in this set (13)
why was FDR hated by some?
welfare and government Assistance supposedly saps initiative and self-reliance
stock market crash
in early september 1929 stock market prices peaked and then fell. Confidence in the market started to waver, and some investors quickly sold their stocks and pulled out. On October 24, the market took a plunge. panicked investors unloaded their shares. But the worst was yet to come.
On October 29 the bottom fell out of the market and the nations confidence. shareholders frantically tried to sell before prices plunged even lower. The number of shares dumped the day was a record 16.4 million dollars.
The stock market crash signaled the beginning of the great depression the period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed. The crash alone did not cause the great depression,but it hastened the collapse of the economy and made the depression more severe.
Bank and Business Failures
After the crash, many people panicked and withdrew their money from banks. But some couldnt get their money because the banks had invested it in the stock market. In 1929 600 banks closed. By 1933 11000 of the nations 25000 banks had failed. because the government did not protect or insure bank accounts, millions of people lost their saving accounts.
world wide shock waves
the united states was not the only county gripped by the great depression. Much of Europe for an example had suffered throughout the 1920s. European countries trying to recover from the ravages of World war 1 faced high war debts. in addition, Germany had to pay war reparation paymenys to compensate the allies for the damages Germany had caused. The Great Depression compounded these problems by limiting Americans ability to import European goods. This made in difficult to sell american farm products and manufactured goods abroad.
four causes of the great depression
1. tariffs and war debt policies that cut down the foreign market for American goods.
2. a crisis in the farm sector
3. the availability of easy credit
4. an unequal distribution of income
reasons that these things led to the depression
these factors led to falling demand for consumer goods, even as newly merchandise factories produced more products. the federal government contributed to the crisis by keeping the interest rates low, thereby allowing companies and individuals to borrow easly and and build up large debts. Some of this borrowed money was used to buy the stocks that later led to the crash.
global effects on the depression
As the American economy collapsed, so to did Europe's. The worlds nations had become interdependent. International trade was important to most countries. However, when the US economy failed, american investors withdrew their money from European markets. To keep U.S dollars in america, the government raised tariffs on goods imported from other countries. World trade dropped. Unemployment rates around the world soared. Germany and Austria were particularly hard hit.
results of the depression
Many people were devastated by the Great Depression. Thousands of people lost their life savings. in result of this many people started to jump out of their work window to commit suicide. Suicide rate during the 1930s were high because many people were starting to realize that because of the lose of their money they would not be able to live freely
The Dust Bowl
the drought that began in the early 1930s wreaked havoc on the great plains. During the previous decade, farmers from Texas to North Dakota had used trackers to break up the grassland and plaint millions of acres of new farmland. When the droughts began in the early 1930s, little grass and few trees were left to hold the soil down. wind scattered the topsoil, exposing sand and grit underneath. the dust traveled hundreds of miles.
The New Deal
e New Deal was a series of domestic programs enacted in the United States between 1933 and 1938. They involved laws passed by Congress as well as presidential executive orders during the first term of President Franklin D. Roosevelt. The programs were in response to the Great Depression, and focused on what historians call the "3 Rs": Relief, Recovery, and Reform. That is Relief for the unemployed and poor; Recovery of the economy to normal levels; and Reform of the financial system to prevent a repeat depression.
critics on the new deal
-conservation felt it bordered on socialism
-to much economic control by the government
- liberals didn't think the new deal went far enough
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