UNIT V:
The
great
depression
Name: ______________________________________
1
1930’s VOCABULARY
Bull Market - continuing rise in stock prices
Buying on Margin - buying stocks on credit with a loan from a broker
Speculation - putting money in a high-risk investment with the hope of a profit
Stock Market Crash - October 29, 1929 the stock market completely collapsed
Bear Market - continuing drop in stock prices
Great Depression - a time of high unemployment and low productivity.
Hoovervilles - shacks where the homeless lived. Many people blamed President
Hoover for not doing enough to help America get out of the Great Depression so
the shacks were named after him.
Dust Bowl – severe drought hit the Great Plains destroying millions of acres of
farm land.
Okies - migrant farm workers from Oklahoma who moved west during the Dust
Bowl.
Fireside chats - FDR gave speeches over the radio sitting by his fireplace;
families gathered around their radios because they felt that FDR understood
their problems
New Deal - FDR’s plan for getting America out of the Great Depression; He
started hundreds of programs - relief for the unemployed, plans to recover the
economy from a depression, and reforms to prevent another depression
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1930’s POWERPOINT PRESENTATION
1. What is a Bull Market?
continuing rise in stock prices
2. What was Buying on Margin?
buying stocks on credit with a loan from a broker
3. What was Speculation?
Buying stocks with the hope of a profit
4. When stock prices dropped, what happened?
People sold their stocks, and prices fell
5. What happened when the Stock Market crashed?
Banks had no money- people lost life savings
6. What is a Bear Market?
continuing drop in stock prices
Bull Market, Buying on Margin, Speculation,
Stock Market Crash, Bear Market
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7. What were the causes of the Great Depression?
INSTALLMENT BUYING
AND BUYING STOCKS ON
MARGIN
T
H
E
OVERPRODUCTION OF
GOODS AND CROPS LEAD
TO EXTREMELY LOW
PRICES
U.S. GAVE LOANS TO
EUROPE, BUT HAD TO
STOP CAUSING THE SAME
CYCLE OF DISASTER
AROUND THE WORLD
Great Depression
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G
R
E
A
T
BANKS LOANED MONEY
WITHOUT HAVING
ANYTHING TO BACK IT UP
(NO COLLATERAL)
D
E
P
R
E
S
S
I
O
N
CYCLE OF DISASTER –
BUSINESSES CAN’T GET
LOANS, SO THEY LAY OFF
WORKERS, WORKERS
CAN’T BUY STUFF, SO
BUSINESSES SHUT DOWN
8. How were the black blizzards of the Dust Bowl formed?
Dry soil and high winds
9. How many acres of land were destroyed?
5,000,000 acres
10. What happened to the temperature?
Changed 70 degrees in one day, record highs
11. Where were many farmers forced to move?
California
12. Who were Okies?
Migrant farmers who moved from Oklahoma to California
13. What did President Hoover believe about the economy?
It would recover on its own
14. What is a Hooverville?
Shacks where poor people lived
15. What were the results of the Great Depression? (Where were people forced
to go?)
Breadlines, soup kitchens
Dust Bowl, Okies, Hoovervilles
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16. What was the bonus army? How did President Hoover respond?
WWI veterans who wanted their bonus early due to the Depression. Hoover
refused.
17. Why did FDR win a landslide victory?
People were fed up with Hoover
18. What was FDR criticized for by some republicans?
Taking over businesses which was too much like communism
19. What were fireside chats?
FDR spoke to the American public over the radio
20. What was discussed?
FDR told people what he was doing and planned to do to help them.
21. What was the New Deal?
FDR’s plan for getting the US out of the Depression
Bonus Army, Fireside Chats, New Deal
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22.
Name of New Deal program
SSA – Social Security Act
Describe the program
Provided unemployment
benefits and retirement
pensions
Built dams and power plants in
the Tennessee Valley –
Provided Jobs.
TVA – Tennessee Valley
Authority
CCC – Civilian Conservation
Corporation
Employed young men on
Public-Works Projects
AAA – Agricultural Adjustment
Agency
Paid farmers to voluntarily
limit crop production.
FDIC – Federal Deposit
Insurance Corporation
Insured money held in a bank
up to a certain amount.
PWA – Public Works
Administration
Set up public works to provide
jobs.
SEC – Securities and Exchange
Commission
Regulated the stock market
FERA – Federal Emergency
Relief Act
Provided relief for the needy.
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21. FDR’s New Deal programs helped
jobs, food, and shelter. It
relieve some problems by giving people
reformed some problems, such as the banking
system (FDIC) and pay for the elderly and handicapped (SSA). However it
did NOT
recover America’s economy from a depression.
22. What programs still exist today?
SSA, FDIC, SEC
24. Explain some of the criticisms of the New Deal.
25. Was there good reason for these criticisms? Why or why not?
26. What pulled the US out of the Great Depression?
Producing goods for WWII
27. What were some famous movies of the 1930’s? Gone With the Wind, King
Kong, Snow White
28. What happened to Amelia Earhart? No one knows. While flying over
the Pacific her plane disappeared.
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CAUSES OF THE GREAT DEPRESSION:
1.) overproduction of goods and
crops
EFFECTS ON THE AMERICAN PEOPLE:
2.) installment buying, buying on
margin
Hoovervilles
30 % unemployment rate
Bread lines, soup kitchens
People lost life savings
3.) banks loaned money without
any to back it up
4.) cycle of disaster – businesses
can’t get loans, lay off workers,
workers can’t buy stuff, so
businesses shut down
FDR CREATES THE NEW DEAL
WHICH DOES WHAT?
100’s of programs to give relief the
poor, reform problems, and recover
the economy from the Depression
PROGRAMS MEANT TO HELP
PEOPLE:
SSA
TVA
CCC
THE U.S. FINALLY GETS OUT OF
AAA
THE GREAT DEPRESSION, BUT NOT
BECAUSE OF FDR’S
FERA
NEW DEAL, BUT
BECAUSE OF WWII
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