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26 Cards in this Set
- Front
- Back
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During the ____market of 1920s people bought stocks eagerly because their values were increasing as opposed to a ____ market where stock prices are falling or expected to fall |
Bull market Bear market |
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People were also buying on margin which meant? |
They only paid 10% of the stock price initially in hopes it would go up quickly so they could resale for a profit |
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On October 29, 1929 a day known as _____ the stock market crashed. |
Black Tuesday |
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Black Tuesday was the beginning of? |
The Great Depression |
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How did the illusion of wealth also contribute to Great Depression? |
Overproduction of goods in fact But in reality few people could afford to purchase Created a surplus of goods Caused prices to fall and workers to be laid off Due to unemployment even more people couldn’t afford goods and it snowballed |
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How did banks play a role in Great Depression? |
People panicked and withdrew as much money as they could and this put more banks out of business, layoffs followed and this snowballed as well |
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What were Hoover’s beliefs in economics and the depression? |
Laissez faire economics It was not the job of the federal government to take care of people Crisis would take care of itself |
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Results of depression? |
High unemployment Hunger Homelessness |
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What were shantytown? |
Neighborhoods of informal houses for poor usually made from discarded materials |
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What did Hoover also do to ruin his reputation with war veterans? |
WW1 vets marches to Washington to demand early payment of bonus pay from war. Hoover and congress refused and some war vets stayed in area. General mcArthur (under direction of Hoover) led the military to drive out the “bonus army” using tanks and tear gas. Several Great War vets were killed |
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Who ran against Hoover when he sought re-election and who won? |
Franklin Roosevelt (FDR) and fdr won |
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FDR has a strong group of advisors known as? |
The brain trust |
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What did FDR promise in his campaign? |
A New Deal |
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What did FDR famously say in his first inauguration speech? |
The only thing we have to fear is fear itself |
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What book written about the dust bowl? |
Grapes of wrath |
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What did FDR do when he took office to get ready for policies of his new deal? |
Called a special session of congress known as the hundred days He instituted a bank holiday and closed all banks for a few days while the emergency banking relief act was passed He only reopened the ones that were stable Have fireside chats in which he explained the new banking policy and eased fears |
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What agencies did FDR form in the new deal? |
I HATE F PICS Agricultural adjustment admin Tennessee authority Emergency relief act Federal deposit insurance co Public works admin Industrial recovery act Civilian conservation corp Securities and exchange commission |
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Roosevelt was re-elected and began his second new deal. What was one of the most important aspects of second new deal? |
Social security act created and gave birth to the modern welfare of America |
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What were Americans hit with in addition to the Great Depression in 1931 our west? |
A severe drought struck the Great Plains and turned the area into a Dust Bowl that lasted more than a decade |
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What was passed after congress shut down the NIRA as unconstitutional? |
Congress passed the national labor relations act or the Wagner act guaranteeing certain rights to unions |
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Unions began using _____ which were strikes that took place within the factories |
Sit down strikes |
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Describe Roosevelt’s stance on civil rights and who advised him? |
He supported the civil rights greatly and relied on his wife, Eleanor, and the “black cabinet” to advise him on matters affecting the black population |
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What did Eleanor Roosevelt become a sign of? And who did FDR appoint to show his support?? |
Advancement of women’s rights and FDR appointed first female cabinet member, Frances Perkins as secretary of labor |
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What did Roosevelt do at the end of the depression when it seemed as though the new deal was working?? |
He cut the deficit and he decreased spending on recovery programs |
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What happened when FDR cut spending on recovery programs at the end of the depression? |
He miscalculated the stability of the economy and the decision led to another dip in nations economy known as Roosevelt recession |
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A severe drought known as the dust bowl directly affected what states? |
Kansas Colorado. Texas. Oklahoma |
