The Great The Great Depression and the Depression and the

New DealNew Deal

What were 3 causes of What were 3 causes of the Great Depression?the Great Depression?

• Overspeculation in stocks

• Collapse of the banking system

• Hawley-Smoot Tariff

What event What event triggered the Great triggered the Great

Depression?Depression?

•The Stock Market Crash

What is reform?What is reform?

•Change for the Better

What is What is speculation?speculation?

• Buying something at a low price in the hope of selling it later at a profit

What functions as What functions as the central bank of the central bank of the United States?the United States?

•The Federal Reserve System

What controls the What controls the nation’s money nation’s money

supply?supply?

•The Federal Reserve

What is What is inflation?inflation?

•When prices increase and the dollar buys less

What does the What does the Federal Reserve do Federal Reserve do to stop inflation?to stop inflation?

•Raise interest rates

What acts as a What acts as a banker’s bank?banker’s bank?

•The Federal Reserve

The Federal Reserve’s The Federal Reserve’s power to set ______ power to set ______ _____ enables it to _____ enables it to control the nation’s control the nation’s

money supply.money supply.

•Interest Rates

What was the What was the unemployment rate unemployment rate

in 1932?in 1932?

•25%

What was the Great What was the Great Depression?Depression?

• A period of economic hardship between 1929 and World War II

What were 4 effects of What were 4 effects of the Great Depression?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 What does the Federal Reserve do if it believes Reserve do if it believes

the economy is the economy is overheating and causing overheating and causing

inflation?inflation?

•Raises interest rates

What does the Federal What does the Federal Reserve do if it Reserve do if it

believes the economy is believes the economy is slowing down?slowing down?

•Lowers interest rates

What is the largest What is the largest stock market in the stock market in the

United States?United States?•The New York Stock Exchange

What does it mean to What does it mean to buy stock on buy stock on

margin?margin?

•Buy stock on credit

What is a What is a protective tariff?protective tariff?

• A tax on imports that is so high that Americans cannot afford to buy foreign goods

What was the Hawley-What was the Hawley-Smoot Tariff?Smoot Tariff?

• Protective Tariff

• the Highest Tariff Rates in History

Who was president when Who was president when the Great Depression the Great Depression

began?began?

•Herbert Hoover

What was Herbert What was Herbert Hoover’s political Hoover’s political

party?party?

•Republican

What president What president started the New started the New

Deal?Deal?

•Franklin Roosevelt

What was FDR’s What was FDR’s political party?political party?

•Democrat

What was FDR’s What was FDR’s program to end the Great program to end the Great

Depression?Depression?

•The New Deal

Who said, “The only Who said, “The only thing we have to fear is thing we have to fear is

fear itself?”fear itself?”

•Franklin D. Roosevelt

What were the 3 R’s of What were the 3 R’s of the New Deal?the New Deal?

• Relief

• Recovery

• Reform

What was the purpose of What was the purpose of the New Deal the New Deal ReliefRelief

programs?programs?

•Ease the Suffering of the Unemployed

What was the purpose of What was the purpose of New Deal New Deal RecoveryRecovery

programs?programs?

•Help Business Recover

What was the purpose of What was the purpose of New Deal Reform New Deal Reform

programs?programs?

•Bring about Change for the Better in U.S. society

Identify FDIC.Identify FDIC.

•Today insures bank deposits up to $100,000

For what does FDIC For what does FDIC stand?stand?

•Federal Deposit Insurance Corporation

For what did AAA For what did AAA stand?stand?

•Agricultural Adjustment Administration

What did AAA do?What did AAA do?

•Limited farm production to raise livestock and crop prices

What was WPA?What was WPA?•Federal gov’t. program that paid people to work on public works projects

What are public What are public works projects?works projects?

• Gov’t. programs that build roads, schools bridges, post offices, parks….

For what did the Social For what did the Social Security Act provide?Security Act provide?

•Unemployment Insurance

•Old-Age Pensions

What 3 rights did What 3 rights did Organized Labor gain Organized Labor gain during the New Deal?during the New Deal?

•Right to form a Union

•Right to Strike

•Minimum Wage

When did the Great When did the Great Depression end?Depression end?

•World War II

Since the New Deal, who Since the New Deal, who do Americans hold do Americans hold

responsible for bringing responsible for bringing prosperity to the U.S. prosperity to the U.S.

economy?economy?

• The federal gov’t., especially the President