Much of the 1920s large-scale domestic consumption of consumer products was fueled by

Question

, which turned out to be
unsustainable. The
sector also
suffered throughout the 1920s and farm prices kept dropping.
2. A lot of rich people lost money in the stock market, but what made the Great Depression the Great Depression was massive
and accompanying hardship.
3. How was America's weak banking system a major cause of the Great Depression?
4. Why was deflation so bad for the econom?
5. In his memoir, Herbert Hoover claimed the primary cause of the Great Depression was
The war did set the stage for a global economic
disaster because of the web of
and
that it created.
6. It was really hard to imagine the Federal government doing anything on such a large scale to address a national problem because it had
7. What was the Reconstruction Finance Corporation?
8. By carly 1923, over
people were out of work which was
of the labor
force. In big cities, the numbers were even worse, especially for poople of
9. What was Hoover's response to Americans asking for relief during the Great Depression?
10. Thousands of Americans took to the road in search of work and thousands more stood in
There were
homeless called Hoovervilles, and there were
like the Bonus March
on Washington by veterans secking early payment of a bonus due to them in 1945.

Answer 1

1. Much of the 1920s large-scale domestic consumption of consumer products was fueled by excessive credit, which turned out to be unsustainable. The agricultural sector also suffered throughout the 1920s, and farm prices kept dropping.

2. A lot of rich people lost money in the stock market, but what made the Great Depression the Great Depression was massive economic contraction and accompanying hardship.

3. America's weak banking system was a major cause of the Great Depression because it lacked proper regulations and oversight. Banks engaged in risky practices, such as making speculative investments with people's deposits, leading to a collapse of the banking system when the stock market crashed.

4. Deflation was so bad for the economy because it meant a general decrease in prices and wages. This led to a decrease in consumer spending, as people postponed purchases in the hope of getting better prices later. It also increased the burden of debt for individuals and businesses, worsening their financial situations.

5. In his memoir, Herbert Hoover claimed the primary cause of the Great Depression was the aftermath of World War I. The war set the stage for a global economic disaster because of the web of interconnected international trade and finance that it created.

6. It was really hard to imagine the Federal government doing anything on such a large scale to address a national problem because it had limited powers and responsibilities at the time. The concept of government intervention and social welfare programs was not well-developed, and many people believed in the laissez-faire approach to economics.

7. The Reconstruction Finance Corporation (RFC) was a government agency created in response to the Great Depression. It aimed to provide financial support to banks, railroads, and other industries by providing loans and assistance to stabilize the economy.

8. By early 1923, over three million people were out of work, which was about 20% of the labor force. In big cities, the numbers were even worse, especially for people of marginalized communities.

9. Hoover's response to Americans asking for relief during the Great Depression was focused on voluntary efforts and local initiatives. He believed that private charities and community organizations should take the lead in helping those in need, rather than relying on federal government intervention.

10. Thousands of Americans took to the road in search of work, becoming migrants searching for employment opportunities. In addition, thousands more stood in unemployment lines seeking government assistance. There were makeshift communities of homeless people called Hoovervilles, and there were protests like the Bonus March on Washington by veterans seeking early payment of a bonus due to them in 1945.