The Great Depression and the New Deal What
- Slides: 40
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 Hawley. Smoot 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