What Were the Effects of the Great Depression

on America?
1. How much money was lost on the stock market on Wall Street on 29th October 1929?

2. Why did the Wall Street Crash lead to bankruptcies?




3. Why were there so many evictions and repossessions following the Wall Street Crash?




4. Explain how industry was affected by the Great Depression.




5. What was the increase in unemployment in America from 1929 to 1933?

6. What effect would the breadwinner being out of work have on a family?




7. Why did banks not lend money during the Great Depression?




8. Why would a run on the bank cause it to close?




9. Why did the banks lose the trust of the American people during the Great Depression?




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 What were the effects of the Great Depression on America?

10. How did credit create illusion of wealth in America in the 1920s?




11. Why was poverty considered shameful in society in the 1930s?




12. What was a Hooverville?

13. Describe what a breadline is.

14. Explain what the Welfare State is.




15. Who were hoboes?

16. What did the ‘Bonus Marchers’ want?




17. Why were the government seen as being unhelpful and unsupportive during the Great Depression?




18. What happened to the ‘Bonus Marchers’?




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 What were the effects of the Great Depression on America?

19. What did Hoover do to deal with the Great Depression?




20. What do you think should have been done to help America in the 1930s?




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What Were the Effects of the Great Depression
on America? Answers
1. How much money was lost on the stock market on Wall Street on 29th October 1929?
$10bn

2. Why did the Wall Street Crash lead to bankruptcies?

The value of shares dropped drastically and wiped out the value of companies and their stock.

3. Why were there so many evictions and repossessions following the Wall Street Crash?
People were unable to pay their debts, rents and mortgages once they had lost their savings and
jobs.

4. Explain how industry was affected by the Great Depression.

Consumers had less money – fewer products bought – less profit – less production by industry –
need fewer staff – workers lose jobs – workers have less money – buy less.

5. What was the increase in unemployment in America from 1929 to 1933?

From 1.5 million to 13 million people unemployed – 11.5 million increase.

6. What effect would the breadwinner being out of work have on a family?
Disastrous effect – no money for rent/food/childcare/transport/health.

7. Why did banks not lend money during the Great Depression?
Banks were afraid they would lose the money they had left so they didn’t loan money easily.

8. Why would a run on the bank cause it to close?

Banks reinvest money deposited in their vaults, so no bank can honour all their customers’
requests if they demanded it on one day. Runs on the bank cause panic and distrust in the bank
and may cause customers to stop using them.

9. Why did the banks lose the trust of the American people during the Great Depression?
Over 5000 banks closed as they ran out of funds – Americans were reluctant to deposit their
money in the bank thinking they might lose it.

10. How did credit create illusion of wealth in America in the 1920s?
Many bought consumer goods and cars and lived the high life in society with jazz clubs, movies
and speakeasies. A lot of this was bought on credit and not paid in full. There was a great deal
of debt in 1920s America.

11. Why was poverty considered shameful in society in the 1930s?

The Republican government had preached that “rugged individualism” was the way to prosperity
and spread the idea that only lazy people were poor. Most Americans believed if you worked hard
then you would be able to provide for yourself.

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 What were the effects of the Great Depression on America? Answers

12. What was a Hooverville?

A shanty town on the outskirts of a town where homeless people would gather to make temporary
homes, usually made from cardboard or other scraps.

13. Describe what a breadline is.

A queue for free food provided by a charity.

14. Explain what the Welfare State is.

A country’s ability to look after vulnerable people in times of hardship – if someone loses their
job or is too ill to work, or a pension for an elderly person.

15. Who were hoboes?

Homeless men who travelled to find work and shelter.

16. What did the ‘Bonus Marchers’ want?

They wanted their $500 bonus for serving in the armed forces to be paid earlier than 1945 as
many were destitute.

17. Why were the government seen as being unhelpful and unsupportive during the Great Depression?
The lack of welfare state and Republican ideas of “rugged individualism” and “laissez faire”.

18. What happened to the ‘Bonus Marchers’?

The Army violently evicted them from their camps in Washington DC

19. Was Hoover right to evict the ‘Bonus Marchers’?

Yes – Hoover couldn’t afford to pay the bonuses - stalemate
No – destitute and desperate veterans – damaged his reputation

20. What do you think should have been done to help America in the 1930s?
Trust restored to the banks, employment found for millions, housing for homeless and
industry restarted.

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