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41 Cards in this Set
- Front
- Back
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What was the economy like after WWI?
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America experienced a recession for about 2 years, due to millions of soldiers return to economy and les demands for goods from governmant for the war effort
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What was the economy like in second portion of 1920s?
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The economy had a steady growth
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What were the changes in business that led to the economy?
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Scientific management (expert come in to analyze business to make it more productive), better relations with workers (safety programs, health insurance, encourage to buy stock in company), successful companies purchased their competitors.
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What were changes in the consumers that lead to change in economy?
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60% of American households had electricity; created big demand for electric appliances. Prices dropped, companies started selling by installment plans allowed consumers to buy things the otherwise couldn't afford
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Understand the presidency of Harding
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FAILIURE, appointed corrupt leaders which were his friends (teapot dome scandal), 1923-became ill and died promised return to normalcy.
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Understand the presidency of Coolidge
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became pres. when Harding died, reelected in '24, didn't run again in 28. Promised normalcy. Didn't want US to be very involved in foreign affairs
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US foreign policy throughout the 20s.
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Harding, Coolidge believed in limited affairs. Didn't want US to join League of Nations.
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Understand the presidency of Hoover.
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Hoover was elected in '28. promoted cooperation between business and government.
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Five Power Treaty.
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Japan, US, Britain, Italy and France signed a treaty limited the sizes of their navies.
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Kellog-Briand Pact
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US+ 14 other countries signed this pact outlawing war. within a few years 48 other countries signed it, but their wasn't any effective way to prevent wars completely.
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Progress of economy during sept and oct of 1929
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early sept prices began to slip (after 7 years of rising), in late oct. things got much worse, oct 24= Black Thurs. panic selling began, causing prices to rapidly drop, Black Tues, Oct. 29, 16 million shares sold for close to nothing.
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Outcomes of stock market crash
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People who had been millionaires 1 week were penniless the next. People began to panic sell (following Black Tues. market closed for a few days to prevent panic selling)
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Causes of crash
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Investments made on speculation instead of actual financial info, buying stock on margin (when prices fell, investors could not pay back their loans), consumers were satisfied with what they had so consumer demand slowed.
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Summarize events of 1929
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In Sept. market began to fall, oct 24 the market fell drastically because no one wanted to buy. Panic selling began, people went crazy trying to sell their stocks. stocks lost 11 billion of their value. a group of bankers pooled their money to buy stocks and they temporarily stopped the fall. Oct. 29 was the biggest crash. Millions of stocks were sold for almost nothing. By Nov. stocks had lost 30 billion of their value.
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Buying on margin and speculation, how they attributed to crash
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People who had bought shares on margin lost their down payments and creditors lost their loans. Buying on speculation was what a investor thought would happen instead of using financially correct resources so they invested incorrectly.
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Understand different views of economist and public on slow down in economy.
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[fill in]
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Causes of Dust Bowl
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Farm prices were way up. Farmers over planted and let their livestock graze on more acres. Plowing and grazing ripped off sod and farmers did not plant new grass on place the they used. The farming practices got much worse. then prices started to fall and there was a drought. winds picked up lots of dust since there was no sod to hold it down. Technology ripped up sod, problematic because roots of grass held dirt in place. GIANT DUST CLOUDS!
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Repercussions of dust bowl
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Farmers traveled to CA/Peach Bowl, and most became migrant workers, conditions were horrible in camps for migrant workers, they were unwelcome in CA. Dust piled up on houses, caused dust pneumonia,
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Response to dust bowl-FSA
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FSA=Farm Security Agency. Tried to help migrant workers and farmers that had not left the dust bowl area. Built new migrant camps. Bought empty land in dust bowl and turned it in to forests and pastures. FSA agents taught farmers to hold down soil, and trees and shrubs to hold back the winds.
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Roosevelt's response to Depression
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Roosevelt first closed all banks for 4 days, Roosevelt created the New Deal which consisted of many different organizations to help the unemployed and the poor.
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First 100 Days
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The first 100 days of FDR's 1st term, during which the special session of congress lasted. Was an extremely productive time.
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New Deal
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All of the laws congress passed in Roosevelts 100 days. laws and regulations concerned banking, stock market, industry, agriculture, public works, relief for poor, conservation of resources.
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New Deal
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All of the laws congress passed in Roosevelts 100 days. laws and regulations concerned banking, stock market, industry, agriculture, public works, relief for poor, conservation of resources.
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New Deal
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All of the laws congress passed in Roosevelts 100 days. laws and regulations concerned banking, stock market, industry, agriculture, public works, relief for poor, conservation of resources.
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the Agricultural Adjustment Administration
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Paid farmers not to grown certain crops, taxed companies that bought farm products to pay farmers, to bring farm prices back up.
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Works Progress Administration
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Employed men and women to build hospitals, schools, parks and airports; employed aritsts, writers and musicians, they created 150 albums of Life in America, folk song and Native American history
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Assessment of New Deal
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Did not completely take the US out of the depression but the darkest days were over. A measure of confidence had been restored.
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The Second New Deal
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A second wave of programs FDR created. The laws passed in this time changed American life even more than the first new deal.
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Supreme Court, New Deal and Court Packing.
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People who opposed new deal challenged many laws in court. the Supreme court ruled the National Industrial Recovery Act and the Agricultural Adjustment Administration. It seemed as tho the Supreme court would ruin the New Deal. Roosevelt wanted to put 6 new justices on the court to have 15 instead of 9 and he would get to appoint justices that supported the New Deal. People thot that he was trying to "pack" the court and ruin the system of checks and balances set up in the constitution. But then the court ruled in favor of many acts so the new deal was no longer in danger.
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Roosevelt Recession
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The depression seemed like it was over so Roosevelt pulled government funding out of his programs to start to reduce the governments debt. The economy faltered immediately. The new recession was called the Roosevelt Recession.
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stock
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a share of ownership in a publicly traded company
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stock exchange
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a place where sercurities such as bonds and stocks are sold and bought
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New York Stock Exchange
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the largest stock exchange in the world based on market capitilazation
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Volume
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amount of shares of stock bought and sold in a given time period
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Portfolio
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All of the investment holdings of an individual sum of their investments
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Stock Symbol
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A unique series of letters assigned to a security for trading purposes. NYSE have 3 character or less. AKA ticker symbols
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Margin
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borrowed money that is used to purchase sercurities. This practice is referred to a "buying on margin"
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Speculation
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proccess of selecting investments with higher risk in order to profit from an anticipated price movement
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Dow Jones Industrial Average (DJIA)
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a weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896
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Bull Market
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a financial market of a group of securities in which prices are rising or expected to rise
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Bear Market
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A market condition in which prices of stocks are falling and pessimism cause it to be self sustaining. a downturn of 20% or more in broad market indexes such ad the DJIA over a t least a 2 month period in considered an entry in to a bear market
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