Chapter 9 & 10 Test Review

I Intro: The Great Depression was caused by various factors, including farm failure, overspeculations, an unstable economy, and was finally triggered by the stock market crash of 1929. It not only affected Americans, with over 1/3 of the population becoming homeless, but the whole world because other countries could not trade with the U.S. Things did not get any better with Hoover in office and kept getting worse until Roosevelt was elected and put the New Deal into action.

II Causes (The causes of the great depression were farm failure, too much borrowed money, stock market crash)

A overspeculation

• Too much money borrowed in order to buy stocks.
• People unable to repay loans.

B Govt Policy

• Bull market and buying on margin.
• Only so many shares of stock can be bought.

C Unstable Economy

• Too much borrowed money.
• Stocks growing to fast.

1 uneven prosperity

• Rich get richer, poor get poorer.
• No middle class which is needed for stability.

2 overproduction

• Too much product being produced.
• Nobody to buy it so the company sits on it.

3 worker issues / farm issues

• Many unemployed, make barely any money.
• Government fearful of riots.

III Effects

A Poverty

• 1/3 of americans unemployed.
• No money being put into the economy.

B Society

• People homeless and live in HooverVilles.
• Hobo riots start up.

C World

• Other countries couldn't trade with the U.S.
• The depression affected everyone.

IV Solutions

A Hoover

• Hoover did not do much.
• Tried but not that hard.

1 Volunteerism

• Help the poor.
• Soup kitchens.

2 Public Works

• Put people to work.
• Made bridges and dams.

3 Hawley Smoot

• Raised tariffs on international trade.
• Contributed to the fall of the economy.

4 RFC

• Reconstruction finance corporation.
• Made loans to railroads, banks,and other businesses.

B Roosevelt

• Elected over Hoover.
• Willing to try anything to help.

1 new deal

• Acts to pull the country out of the depression.
• Helped just about everyone.

a alphabet soup

• CCC
• CWA
• WPA

b Criticsim?

• Left and Right wings.
• Some thought too much some thought not enough.

2 2nd new deal

a. Improved use of natural resources.

b. Social Security

c. Welfare

V Criticicism

B Political Criticism (ex. Came from both the left and right.)

A Conservatives

• Too much government control.

B Liberals (ex: criticised the new deal also. They....)

Ex: Not enough government control.

ex: Tax the rich and give to the poor.

VI Effectiveness

A Changes in US

• People called for government assistance.

B Unions

• Unions were granted more power and privileges.

C Culture

• Modern entertainment became more popular.

VII Conclusion: Without Roosevelt, the U.S. may never have came out of the depression, because of the drastic changes he was willing to make. His New Deal and established programs provided relief to the people, and his fireside chats instilled more confidence in the government, making the population willing to back Roosevelt and not only beat the Great Depression, but prosper.