Friday, March 11, 2011

Hooked on the Horn of Plenty

82. What is one basic explanation for the Great Depression?
One basic explanation was overproduction by the farm and the factory. At this time, the supply was high while the demand wasn't as high.

83. Too much money was going into what? Instead of what?
Too much money was going into the hands of a few wealthy people who invested it in factories and other agents of production. Not enough was going into the salaries and wages of normal workers.

84. Another cause was the overexpansion of what? Which stimulated what?
Overexpansion of credit through installment plan buying over-stimulated production. This caused many consumers to dive in beyond their depth and stimulated in unemployment from the rise of new technologies.
85. What added to this burden of tough economic times?
The normal technological unemployment added to the burden of new labor saving machines.
86. What helped push America's economy further downward?
Economic anemia darkened an already "bleak" picture as Europe hadn't fully recovered from the Great War. America was actually pushed down by this due to a drying up of international trade.

87. What natural disaster made things worse in 1930?
A drought scorched the Mississippi Valley in 1930 as thousands of farms were sold at auction for taxes. Farm rental was spreading at an alarming rate.

88. What made the Depression a baffling wraith for Americans? In what ways did it challenge their most cherished assumptions and sense of identity?
The depression was a baffling wraith that they couldn't grasp in the sense that ragged individuals slept under old newspapers and 'Hoovervilles' were paper shantytowns. People fought over garbage cans and cooked whatever they could find in oil drums.

Next is Maria Jenkins

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