US II Chapter 22
Causes of the Great Depression Study Guide
1. Direct Relief Programs-cash or food given to poor, no federal programs existed at start of
depression
2. Dustbowl-poor farming tech, drought and windstorms were the cause; Great Plains states
were most affected
3. Price supports-Government supports prices at or above market value
4. G.N.P.-Gross National Product, Market value of all goods and services produced by a nation
in a year
5. Bonus Army (4 facts)
a. WWI Vets
b. Led by Waters
c. Hoover had US Army destroy their camps
d. Wanted combat bonus pay
6. Bank Failures-by 1933 4 failed
7. Hoover (4 facts)
a. believed in rugged individual
b. felt government should foster cooperation between groups in society
c. was against government intervention in economy at start of Great Depression
d. was president at start of Depression
8. Farm pricing during 1920s-fell sharply after WWI
9. FDIC-insured bank deposits, 1st attempt to reform banks
10. Long term causes of Great Depression -mass production of durable goods throws off supply
ordered, too many people live on credit, US industry not keeping up with technology, unequal
distribution of wealth
11. The Great Depression dates-1929-1941
12. Economic depression-long time, high prices and unemployment, small money supply, less
business activity
13. Mellon (2)-Secretary of Treasury who felt tickled down economics could help economy down
swing
14. Farmers reaction to Hoovers polices-destroy crops instead of sell at loss
15. Glass Steagall Banking Act-created FDIC
16. Boom industries-autos and home building
17. 1930 congressional elections-Dems win majority in House, cut Republican majority in
Senate
18. Impact of Depression on children-many had health problems due to poor diets and no
doctor visits
19. Speculation-high risk stock trading
20. Shantytowns-created by homeless outside all US cities
21. Urban reaction to Depression-soup kitchens, bread lines, shantytowns
22. RFC-purpose was to jumpstart failed US industries
23. Smith-lost 1928 election
24. Margin call-request by broker to investor for all money owed at end of trading day
25. Hawley Smoot Tariff-raised import taxes to highest rate ever
26. Hooverville-name given to shantytowns
27. Dow Jones Industrial Average-gauge to measure stock market health
28. 1932 Presidential election-won by FDR
29. Black Tuesday-Oct. 29th, 1929, day stock market crashed
30. Buying on margin-buying stocks with borrowed money
31. Impact of Depression on families-many stayed together by relying on each other, playing
board games, going to movies, and listens to elders