The Great Depression and the New Deal What

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