US History II -Chapter 21 – Review Questions

How did the prosperity of the 1920’s give way to the Great Depression?
In the 20’s consumption went up, the gross national product (GNP) went up and the stock market went up = “bull market”

Stock prices made the rich, richer. Consumers piled up huge debts as they purchased goods on credit, and living beyond what they could afford.

Farmers went into debt and overproduced, to much product no buyers. There was declining trade from the US to other countries and higher taxes.

How did the Great Depression affect the lives of urban and rural Americans?
the large number of people requiring assistance led to a focus on social reform and group work,
spending decreased, unemployment grew, banks closed, taxes rose, reparations, and trade collapsed

Americans lost their homes; unemployment rose; people could not afford to get married or have children; farmers crop prices dropped and they couldn’t make money; people moved to shantytowns/Hoovervilles; bread lines & soup kitchens opened; children quit school to help their families earn money

Why did Herbert Hoover’s polices fail to solve the country’s economic crisis?
As the U.S failed, American people looked to Hoover for leadership, many were starving, homeless and dying but Hoover refused to believe or give any government assistance to those who needed it. He believed that the people could help themselves and he also referred to the Great Depression as “a temporary hault in the prosperity of a great people.” He also feared that by giving American people assistance it would inflate the federal budget and reduce the self-respect of the Americans reciving the aid. So instead of getting involved and helping out Hoover remained optimistic and kind of just let the people suffer.

What happened on October 29, 1929?
The Great Stock Market Crash which led to the Great Depression

How did the Stock Market Crash contribute to the Great Depression?
It sparked a chain of evens that quickened the collapse of the U.S. economy.

People bought stocks (shares w companies), stock values rose (bull market), and buying on margin encouraged more customers, people overspeculated on stocks, using borrowed money.

Banks also invested in the stocks so they suffered big losses in the market crash. Individuals pulled their money out further wekening the banks. The banks also took out loans that they couldn’t pay off, losing their investors whom could not repay loans. Dwindling reserves caused banks to close.

American banks stopped making loans abroad and demanded repayment of previous foreign loans. Other countries could not handle this loss and depression set in.

How did the uneven distribution of the nation’s weatlh weaken the American economy?
Farmers had huge surpluses of crops but demand for them decreased drastically so they went into debt, acquiring a line of credit was easy, but it caused more debt for people who could not make payments and wealthy people grew wealthier and had money to spend on consumer products, but this spending was not enough to keep the economy booming

, The wealthier people weren’t buying enough goods to keep the economy booming therefore the low income workers couldn’t buy what they needed or wanted.

How did the Great Depression affect cities in the 1930’s?
the large number of people requiring assistance led to a focus on social reform and group work.

By the early 1930’s, 1 in 4 workers was jobless. Others had shortened hours or pay cuts. Many lost their homes. People sold apples and pencils on the street, begged, and picked through garbage.

people lost their homes; unemployment rose; people could not afford to get married or have children; farmers crop prices dropped and they couldn’t make money; people moved to shantytowns/Hoovervilles; bread lines & soup kitchens opened; children quit school to help their families earn money

How did the Dust Bowl make life even more difficult for farmers on the Great Plain?
they were unable to grow crops, couldn’t pay mortgages which lead many to lose their farms.

For farmers living in the Midwest, the Dust Bowl changed their lives permanently. Whole towns were forced to move because of the failing soil and bug attacks. The whole Midwest was deserted after the Dust Bowl because it was unsuitable for living. In some ways, the Dust Bowl was brought upon the farmers by themselves, by overworking the soil, they made the ground hard and dry, causing drought. The are was hit so bad because most of the Midwest’s industry is agriculture.

Many people fled from the drought seeking work in California where work was already hard to come by.

How did the deression take a toll on women, children, and minorities in America?
Families declined, birthrates plummeted to the lowest in American history. Mothers worked to stretch small family incomes, children quit school, some ran away from home. Some families came togehter, others fell apart.

Minorities suffereed too – “Last to be hired, and first to be fired” . Mexican Americans faced repatrition (convining minority to return to their country of origin), Okies looked for work in California.

How were the exeriences of the urban unemployed and the rural poor similar? How were they different?
Both feared a terrible plight, both had debt so bad they lost their houses, farms, etc.

Rural poor suffered more, farmers lost overseas market, rural poor went through a drought which caused farmers to lose their farms.

Why was Hoover relucant to have the federal government interfere with the economy?
He didn’t want federal involvement becaus he feared that intervention with the stock market would casuse panic.
President Hoover believed that too much intervention on the part of the federal government during the Depression would destroy American individuality and self-reliance, and that public-private cooperation was the way to achieve high long-term growth.

What actions did Herbert Hoover take to fight the effects of the depression?
Hoover prevented deficit by refusing to over-fund welfare programs, issued the Mexican Repatriation Act, and signed the Smoot Hawley Tariff

In 1929, in an effort to reduce municipal aid services burdens and combat white American unemployment, Hoover instituted the Mexican Repatriation program. This resulted in the forced migration of over 500,000 Mexicans and Mexican Americans to Mexico

Smoot-Hawley Tariff raised the tariff on thousands of imported items as part of a failed effort to encourage the purchase and growth of American-made goods, raise federal revenue, and protect farmers.

Why did Hoover order the removal of the Bonus Army from its campus?
He felt bad, but said that the vetrans were a gang of revolutionaries bent on taking over the government.

How did Hoover’s view on government influcene his response to the depression? Two examples..
Belief in volunteerism and loans, rather than direct relief – restricted his actions.

He believed in “rugged individualism” and relied on the individual, the churches and private charities, and the local and state governments to handle most of the economic help that was needed.

He broke with Republicans and did away with the taxes that had been placed on citizens during the Coolidge administration. He thought that would allow for more income being spent to help the economy rebound. He spent $500 million a year on public works and government programs to build or improve government properties. The most famous was the Hoover (Boulder) Dam. Congress established the Reconstruction Finance Corporation (continued by FDR) which created an agency to help banks, railroads, and other key businesses to stay in business thus helping the economy

European countries reacted to the Hawley-Smoot Tariff by passing higher protective tariffs What economic condition did economist John Maynard Keynes believe caused the Great Depression? lack of government intervention WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY …

Which group experienced an early depression in the 1920’s? Farmers During the 1920’s, the United States economy moved through which phase of the business cycle? Expansion WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR …

Which group experienced an early depression in the 1920’s? Farmers During the 1920’s, the United States economy moved through which phase of the business cycle? Expansion WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR …

Which group experienced an early depression in the 1920s? farmers during the 1920s, the US economy moved through which phase of the business cycle expansion/peak WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY …

Which group experienced an early depression in the 1920s? farmers during the 1920s, the US economy moved through which phase of the business cycle expansion WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY …

the day of the stock market crash october 29th, 1929 black tuesday another name for the periodic expansion & contraction of the economy business cycle WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY …

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