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Chapter 22: Crash and the Great Depression (1929-1933)
Section 1:The Stock Market Crash
What events led to the stock market’s Great Crash in 1929?
Why did the Great Crash produce a ripple effect throughout the nation’s economy?
What were the main causes of the Great Depression?
I.The ______Crashes
A.The market crash in October of 1929 happened very quickly.
B.In September, the Dow Jones Industrial Average, an average of stock prices of major industries, had reached an all-time high of 381.
C.On October 23 and 24, the Dow Jones Average quickly plummeted, which caused a panic.
D.On ______, October 29, 1929, most people sold their stocks at a tremendous loss.
E.This collapse of the stock market is called the Great Crash. Overall losses totaled $30 billion.
F.The Great Crash was part of the nation’s ______cycle, a span in which the economy grows, and then contracts.
II.Effects of the Great Crash, 1929
III.The Great Depression
A.The economic contraction that began with the Great Crash triggered the most severe economic downturn in the nation’s history—the ______.
B.The Great Depression lasted from ______until the United States entered World War II in ______.
C.The stock market crash of 1929 did not cause the Great Depression. Rather, both the Great Crash and the Depression were the result of deep underlying problems with the country’s economy.
IV.Underlying ______of the Depression
Section 2:Social Effects of the Depression
How did poverty spread during the Great Depression?
What social problems were caused by poverty in the 1930s?
How did some people struggle to survive hard times?
I.Poverty Spreads
A.People of all levels of society faced hardships during the Great Depression.
B.Unemployed laborers, unable to pay their rent, became ______.
C.Sometimes the homeless built ______of tar paper or scrap material. These shanty town settlements came to be called ______.
D.Farm families suffered from low crop prices.
E.As a result of a severe drought and farming practices that removed protective prairie grasses, dust storms ravaged the central and southern Great Plains region. This area, stripped of its natural soil, was reduced to dust and became known as the ______.
F.The combination of the terrible weather and low prices caused about 60 percent of Dust Bowl families to lose their farms.
II.Poverty Strains Society
Section 3:Surviving the Great Depression
In what ways did Americans pull together to survive the Great Depression?
What signs of change did Americans begin to notice in the early 1930s?
I.Americans Pull Together
A.Throughout the country, people ______together to help one another.
B.Neighbors in difficult circumstances helped those they saw as worse off than themselves.
C.When banks ______on a farm, neighboring farmers would bid ______on land and machines, which they would then return to the original owners. These sales became known as ______auctions.
D.Some Americans called for ______political and economic change.
1.They believed that a fairer distribution of wealth would help to end the hard times.
E.Jokes and humor helped many people to fight everyday despair.
II.Signs of Change
Section 4:The Election of 1932
How did President Hoover respond to the Great Depression?
What did Roosevelt mean when he offered Americans a “New Deal”?
Why was the election of 1932 a significant turning point for American politics?
I.Hoover’s ______Strategy
A.Hoover convinced business leaders to help maintain public confidence in the economy.
B.To protect domestic industries, Congress passed the ______-______tariff, the highest import tax in history. European countries also raised their tariffs, and international trade suffered a slowdown.
C.Hoover set up the ______Finance Corporation (RFC), which gave government credit to banks, industries, railroads, and insurance companies. The theory was that ______at the top would help the economy as a whole. Many Americans saw it as helping ______and big businessmen, while ordinary people went hungry.
D.Hoover did not support federal public assistance because he believed it would destroy people’s self-respect and create a large bureaucracy.
E.Finally, public opinion soured for Hoover when he called the United States Army to disband a ______of 20,000 unemployed World War I veterans called the ______.
II.A “______” for America
A.FDR promised a New Deal for the American people.
B.He was ready to experiment with government roles in an effort to end the Depression.
C.As governor of New York, Roosevelt had set up an unemployment commission and a relief agency.
D.FDR’s wife, Eleanor, was an experienced social reformer. She worked for public housing legislation, state government reform, birth control, and better conditions for working women.
E.When the Roosevelts campaigned for the presidency, they brought their ideas for political action with them.
III.The Election of 1932
A.Herbert Hoover
1.Believed that federal government should ______try to fix people’s problems.
2.Argued that federal aid and government policies to help the poor would alter the foundation of our national life.
3.He argued for ______aid to help the poor and argued against giving the national government more power.
4.Hoover gave very few campaign speeches and was jeered by crowds.
B.Franklin Roosevelt
1.Believed that government had a ______to help people in need.
2.Called for a ______of values and more controls on big business.
3.Helped many Americans reassess the importance of “making it on their own” without any help.
4.Much of his support came from urban workers, coal miners, and immigrants in need of federal relief.
5.Roosevelt won ______of the popular vote and almost ______of the electoral vote.
Key People, Terms, and Questions:
Define the following terms and answer the questions in complete sentences on a separate sheet of paper.
NOT all answers are found in the notes; you will have to use your textbook to answer some of the questions.
Section 1: The Stock Market Crash
Dow Jones Industrial Average
Black Tuesday
Great Crash
Business Cycle
Great Depression
1.What is the Dow Jones Industrial Average?
2.What Happened on Black Tuesday?
3.Which part of the business cycle did the Great Depression represent?
4.What could cause a country’s Gross National Product to decrease?
5.How did the unstable economy in the 1920s contribute to the Great Depression?
Section 2:Social Effects of the Depression
Hooverville
Dust Bowl
6.Who lived in Hoovervilles?
7.What factors led to the creation of the Dust Bowl in the 1930s?
8.What were some causes and effects of increased discrimination during the Great Depression?
Section 3:Surviving the Great Depression
Penny Auctions
21st Amendment
9.What were penny auctions and how did they help farmers overcome some of the hardships of the Great Depression?
10.Why was there an interest among some Americans in radical and reform movements?
11.Why was the 21st Amendment passed?
Section 4:The Election of 1932
Hawley-Smoot Tariff
Reconstruction Finance Corporation (RFC)
Bonus Army
12.What did President Hoover hope to end the Depression and its hardships?
13.What was the intent of the Hawley-Smoot Tariff and the Reconstruction Finance Corporation?
14.How did the Bonus Army conflict contribute to Hoover’s downfall?
15.Describe FDR’s appeal to the American Voter in 1932.