The Great Depression
Causes
-Over speculating in stock market, using borrowed money. When
stock market crashed money could not be repaid
-Failures in the banking industries—money was not insured
-High tariff, known as Hawley Smoot Tariff (tax on imports)
restrict trade
Effects
-Unemployment and Homelessness
-Bank Closings
-Political unrest
-Farm and home foreclosures
Solution: F. Roosevelt’s
New Deal
-Change government’s role to a more active one in the economy
-FDR rallied a frighten nation with words: “The only thing we have
to fear…is fear itself”
-Relief payments to people in need---WPA
-Recovery programs to bring people out of depression--AAA
-Reform measures to correct problems in economy
FDIC
-Social Security system created to help workers and elderly
Questions
1. The title of this chart is the_______________________
2. One cause of the depression is that Americans used
__________________money to over speculate in the stock market
3. The _________________Smoot Tariff restricted trade
4. As a result of the Great Depression ____________________closed
5. The New Deal made government more_____________________in the
economy
6. FDR helped the nation with his words the Only thing we have
to_______________ is ___________________itself
7. The three “Rs” in helping the nation were ______________________,
recovery and____________________
8. The __________________________System helped workers and the
elderly