The Great
Depression and the
New Deal
What were 3 causes of
the Great Depression?
• Overspeculation in stocks
• Collapse of the banking
system
• Hawley-Smoot Tariff
What event
triggered the Great
Depression?
•The Stock Market
Crash
What is reform?
•Change for the
Better
What is
speculation?
• Buying something at a
low price in the hope of
selling it later at a profit
What functions as
the central bank of
the United States?
•The Federal
Reserve System
What controls the
nation’s money
supply?
•The Federal
Reserve
What is
inflation?
•When prices
increase and the
dollar buys less
What does the
Federal Reserve do
to stop inflation?
•Raise interest
rates
What acts as a
banker’s bank?
•The Federal
Reserve
The Federal Reserve’s
power to set ______
_____ enables it to
control the nation’s
money supply.
•Interest Rates
What was the
unemployment rate
in 1932?
•25%
What was the Great
Depression?
• A period of economic
hardship between 1929
and World War II
What were 4 effects of
the Great Depression?
• Unemployment and
homelessness increased
• Bank Closings -- the collapse of
the nation’s financial system
• Political Unrest
• Farm Foreclosures
What does the Federal
Reserve do if it believes
the economy is
overheating and causing
inflation?
•Raises interest rates
What does the Federal
Reserve do if it
believes the economy is
slowing down?
•Lowers interest
rates
What is the largest
stock market in the
United States?
• The New York Stock
Exchange
What does it mean
to buy stock on
margin?
•Buy stock on
credit
What is a
protective tariff?
• A tax on imports that is
so high that Americans
cannot afford to buy
foreign goods
What was the HawleySmoot Tariff?
• Protective Tariff
• the Highest Tariff Rates
in History
Who was president when
the Great Depression
began?
•Herbert Hoover
What was Herbert
Hoover’s political
party?
•Republican
What president
started the New
Deal?
•Franklin
Roosevelt
What was FDR’s
political party?
•Democrat
What was FDR’s
program to end the Great
Depression?
•The New Deal
Who said, “The only
thing we have to fear is
fear itself?”
•Franklin D.
Roosevelt
What were the 3 R’s of
the New Deal?
• Relief
• Recovery
• Reform
What was the purpose of
the New Deal Relief
programs?
•Ease the Suffering
of the Unemployed
What was the purpose of
New Deal Recovery
programs?
•Help Business
Recover
What was the purpose of
New Deal Reform
programs?
• Bring about Change
for the Better in U.S.
society
Identify FDIC.
• Today insures bank
deposits up to
$100,000
For what does FDIC
stand?
• Federal Deposit
Insurance
Corporation
For what did AAA
stand?
• Agricultural
Adjustment
Administration
What did AAA do?
• Limited farm
production to raise
livestock and crop
prices
What was WPA?
• Federal gov’t.
program that paid
people to work on
public works projects
What are public
works projects?
• Gov’t. programs that
build roads, schools
bridges, post offices,
parks….
For what did the Social
Security Act provide?
•Unemployment
Insurance
•Old-Age Pensions
What 3 rights did
Organized Labor gain
during the New Deal?
• Right to form a Union
• Right to Strike
• Minimum Wage
When did the Great
Depression end?
•World War II
Since the New Deal, who
do Americans hold
responsible for bringing
prosperity to the U.S.
economy?
• The federal gov’t.,
especially the President