Effects of the great depression quizlet

In this famous photograph by Dorothea Lange, a destitute, thirty-two-year-old mother of seven captures the agonies of the Great Depression. Library of Congress. Please click here to improve this chapter.

Over , businesses shut down between and , contributing to the rise of unemployment. Some had borrowed money to keep going before the crash and could not afford to pay back their loans. Others had been hit by falling demand for goods as people had started to spend less money, especially on goods they did not consider to be essential. Most of the people who initially lost their jobs worked in the older industries, such as coal mining, textiles and steel production. By , other industries, such as banking, domestic services and teaching, were also affected. Unemployment rates were high among unskilled workers , women and African Americans , who were more likely to lose their jobs first because of discrimination. This downward trend of business closures leading to more unemployment was part of the economic depression.

Effects of the great depression quizlet

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Such relief was nowhere to be found in the s.

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The Great Depression of devastated the U. A third of all banks failed. Housing prices plummeted, international trade collapsed, and deflation soared. It took 25 years for the stock market to recover. While the Great Depression took a huge toll on the U. For example, the New Deal programs installed safeguards to make it less likely that the Depression could happen again. Overall, the Great Depression had a tremendous impact on nine principal areas of the U. The economy began shrinking in August

Effects of the great depression quizlet

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The size and scope of the Depression overpowered the radically insufficient capacity of private volunteer organizations to mediate the crisis. Markets crashed through no fault of their own. While such a strategy saved the program from suspicions, social security became the centerpiece of the modern American social welfare state. For American farmers, meanwhile, hard times began long before the markets crashed. Retailers lowered prices and, when that did not attract enough buyers to turn profits, they laid off workers to lower labor costs. Farms were often bought up by large industrial farming businesses. Spurred by the ongoing agricultural depression, Hoover signed into law the highest tariff in American history, the Smoot-Hawley Tariff of , just as global markets began to crumble. In , he was appointed assistant secretary of the navy, a position he held during the defense emergency of World War I. Two out of every five banks open in had been shuttered and some Federal Reserve banks were on the verge of insolvency. When thousands failed to heed the vacation order, General Douglas MacArthur, accompanied by local police, infantry, cavalry, tanks, and a machine gun squadron, stormed the tent city and routed the Bonus Army. Such bank runs were not uncommon in the s, but in , with the economy worsening and panic from the crash accelerating, 1, banks failed. Long proposed a Share Our Wealth program in which the federal government would confiscate the assets of the extremely wealthy and redistribute them to the less well-off through guaranteed minimum incomes. Middle- and working-class Americans might rely on disappearing credit at neighborhood stores, default on utility bills, or skip meals. But in an agricultural world of landowners and landless farmworkers such as tenants and sharecroppers , the benefits of the AAA bypassed the southerners who needed them most.

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Voices of Protest X. Four years after the crash, the Great Depression reached its lowest point: nearly one in four Americans who wanted a job could not find one and, of those who could, more than half had to settle for part-time work. Rising inequality, declining demand, rural collapse, overextended investors, and the bursting of speculative bubbles all conspired to plunge the nation into the Great Depression. Over twenty-seven thousand Share the Wealth clubs sprang up across the nation as Long traveled the country explaining his program to crowds of impoverished and unemployed Americans. The minimum wage disproportionately affected low-paid southern workers and brought southern wages within the reach of northern wages. During the s, modernisation of farming, including the use of new fertilisers and farm machinery, had led to overproduction. Even though the New Deal never achieved as much as its proponents hoped or its opponents feared, it did more than any other peacetime program to change how Americans saw their country. American suppositions about family structure meant that women suffered disproportionately from the Depression. Farmers found themselves unable to make payments on loans taken out during the good years, and banks in agricultural areas tightened credit in response. This family, captured by Lange in , was in the process of traveling miles by foot, across Oklahoma, because the father was ill and therefore unable to receive relief or WPA work. The pro-business policies of the s were designed for an American economy built on the production and consumption of durable goods. In , nearly 2, banks collapsed, taking personal deposits, savings, and credit with them. In , concerned that the Court might overthrow social security in an upcoming case, Roosevelt called for legislation allowing him to expand the Court by appointing a new, younger justice for every sitting member over age seventy.