What is overproduction in economic terms?
Production exceeding consumers' purchasing power, causing supply-demand gap.
What did American industrial growth rely on in the 1920s?
Mass consumption and products like automobiles and appliances.
How did wages compare to productivity growth in 1920s America?
Wages increased more slowly than productivity.
Why did American agricultural prices fall starting in 1925?
European reconstruction reduced demand for American farm products.
What was the effect of falling agricultural prices on American farmers?
It caused widespread indebtedness among farmers.
Why was the speculative rise of American shares amplified in the 1920s?
Investors could buy shares on credit with only 10% coverage.
When did the "Black Thursday" panic begin on Wall Street?
On 24 October 1929.
What event occurred on 29 October 1929 during the Wall Street Crash?
"Black Tuesday" intensified the crash with 16 million shares sold.
By how much did the Dow Jones index rise between 1924 and 1929?
It rose by 300%.
How much did the Dow Jones index lose in three days during the crash?
It lost 30%.
By 1932, what percentage of its 1929 value had the Dow Jones index lost?
It lost 89% of its 1929 value.
How did the financial crash lead to an economic depression?
Through falling asset values, reduced consumption, declining production, mass layoffs, and further consumption drops.
What was the unemployment rate in the US in 1933?
25%.
How many American banks failed between 1929 and 1933?
More than 5,000 banks.
What effect did the Hawley-Smoot tariffs have on international trade?
They helped reduce international trade by 25% between 1929 and 1932.
When did the UK devalue the pound sterling during the Depression?
September 1931.
When did the US abandon the gold standard under Roosevelt?
In 1933.
Which US cities had unemployment rates reaching 50% in 1933?
Detroit and Cleveland had unemployment rates reaching 50%.
How many people were unemployed in Germany in 1932?
More than 6 million people were unemployed in Germany in 1932.
What percentage of Germany's active population was unemployed in 1932?
30% of the active population was unemployed in Germany in 1932.
What was the Dust Bowl?
A period of dust storms affecting the American Great Plains in the mid-1930s.
What was a major consequence of the Dust Bowl for farmers?
Hundreds of thousands of farmers migrated to California.
How did the crisis affect women, young people, and families?
It changed household roles, limited employment access, and encouraged distrust of democratic systems among some youth.
What did initial liberal policies rely on in the 1930s?
Austerity, deflation, and limited state intervention.
What marked the turning point in US politics in 1932?
Franklin D. Roosevelt’s election.
When was the New Deal implemented?
From 1933 to 1938.
What reforms did the first New Deal include from 1933 to 1935?
Banking reform, dollar devaluation, public works, and fair-competition codes.
Which agency carried out public works in the first New Deal?
The Tennessee Valley Authority.
What did the second New Deal create between 1935 and 1938?
Social Security and recognized trade-union rights.
Which act recognized trade-union rights in the second New Deal?
The Wagner Act.
What effects did public works and rearmament have in Nazi Germany?
They reduced unemployment but suppressed freedoms and prepared for war.
What does Keynesian economics argue about full employment?
Full employment is not automatic.
According to Keynesian economics, what should the state do during recessions?
The state should support demand, including accepting public deficits.
Who published the General Theory of Employment, Interest and Money in 1936?
John Maynard Keynes.
In which year was the General Theory of Employment, Interest and Money published?
1936.
What major economic approach did Keynes's 1936 work express?
The new Keynesian economic approach.
Which policies progressively dominated economic thought until the 1970s?
Keynesian policies favoring demand stimulus and accepted public deficits.
What does the welfare state provide?
Social protection systems to cushion future economic shocks.
What did the United States Social Security Act of 1935 introduce?
Unemployment insurance and pensions.
What labor reforms did France's Popular Front introduce from 1936 to 1938?
Paid holidays and a 40-hour workweek.
What did the Glass-Steagall Act of 1933 do?
Separated deposit banks from investment banks.
What role did the Securities and Exchange Commission have after 1933?
It supervised financial markets.
What did the Bretton Woods agreements of 1944 address?
Monetary instability from the collapse of the gold-standard system.
Test your knowledge with 22 questions on The Great Depression of 1929.
1. What does overproduction mean in the context of the 1920s economy?
2. Why did American agricultural prices begin falling in 1925?
Review the complete course in the study sheet for The Great Depression of 1929.
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