Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
68 Cards in this Set
- Front
- Back
|
A time period from 1929 to 1941 when the US fell into an economic depression caused by many things added together with the stock market crash of 1929 is called _________________
|
The Great Depression
|
|
|
stock
|
a share in a company/corporation that increases or decreases in value depending on how the company is doing
|
|
|
stock market
|
refers to the business of buying or selling stocks
|
|
|
Calvin Coolidge
|
The Vice President when the Depression started--agreed with Herbert Hoover that it was not the federal government's responsibility to give direct aid to the people.
|
|
|
Herbert Hoover
|
President during the Depression who believed it was not the federal government's responsibility to give direct aid to the people.
|
|
|
bull market
|
A prolonged period in which investment and stock prices rise faster than their historical average.
|
|
|
bear market
|
a prolonged period in which investment and stock prices fell
|
|
|
speculation
|
the practice of investing in risky business in the hopes of making a large profit
|
|
|
Buying on a margin
|
Refers to the practice of buying stock by paying 10% of the value and borrowing the remaining 90%. This can only work if the stock value increases. It was a big problem when the stock market crashed because the lender and stock owner both lost their money.
|
|
|
October 29, 1929
|
Black Tuesday
|
|
|
Black Tuesday
|
October 29, 1929 --day the sudden drop in the value of stocks on the NY Stock Exchange caused millions of shares to be sold until there were no buyers left, leaving people penniless.
|
|
|
Official beginning of Great Depression
|
Black Tuesday, October 29, 1929
|
|
|
public works projects
|
government funded projects to build things like roads, bridges, and dams which not only provided jobs to the unemployed but helped build up the infrastructure of the United States.
|
|
|
a slow gradual decline of economic activity is called an____________ _____________.
|
Economic Recession
|
|
|
a severe decline in economic activity is called an ___________ ______________.
|
Economic Depression
|
|
|
Bonus Army
|
refers to the nickname given to ex-WWI vets who wanted early payment of a "bonus" that was granted by the 1924 Congress for their service but was not due/payable until 1945. In 1932 the Depression was hitting them very hard and they were desperate to receive their money.
|
|
|
Fireside Chats
|
refers to radio broadcasts given by FDR what were friendly and inviting. He told about his plans for the New Deal.
|
|
|
New Deal
|
A series of Government sponsored plans/programs created by FDR that worked together to get the US out of the depression.
|
|
|
Hundred Days
|
a time right after Roosevelt was elected in 1932 when almost every law that he proposed was passed in the Congress.
|
|
|
Relief, Recovery and Reform is also know as ___ ______ _____.
|
The Three R's
|
|
|
Social Security Act
|
a government sponsored program that provided workers with unemployment insurance and retirement benefits. It also gave help to laid off workers, disabled workers, and needy families with dependent children. This program was part of the "Second New Deal"
|
|
|
____________ was elected President in 1932.
|
Franklin Delano Roosevelt
|
|
|
This president believed in the "trickle down theory" of economics.
|
Herbert Hoover
|
|
|
Trickle Down Theory
|
an economic theory that suggested that to improve the economy, big business should be helped, strengthened first, then improvments will "trickle down" to the lower elements (small businesses, labor)
|
|
|
During the Stock Market Crash of 1929, people's stocks became_____________.
|
worthless
|
|
|
Dust Bowl
|
refers to the geographical area of the Great Plains that suffered severe drought and dust storms between 1933 and 1936.
|
|
|
When the government spending exceeds its income this is called _________ _________.
|
Deficit Spending
|
|
|
Roosevelt fights the Supreme Court
|
Refers to Roosevelt's attempt in 1937 (his second term) when he tried to expand the Supreme Court. Most of the justices were over 70 and he had not appointed any of them. He encouraged them to resign. When that did not work, he tried to expand the number of justices to help prevent any opposition to his reforms. This damaged his reputation greatly.
|
|
|
What was a "Sit Down Strike"
|
When workers went on strike by remaining idle (not working) inside the plant
|
|
|
Congress of Industrial Organization
|
Came about in response to the American Federation of Labor's refusal to organize unskilled & semiskilled labor. The CIO was an organization that offered to help union ized skilled and unskilled workers.
|
|
|
A person that believes that the government should take action to help people is called a ______________.
|
Liberal
|
|
|
A person that believes that people can care for themselves and the government should stay out of people's business is called a _______________.
|
Conservative
|
|
|
The market is best when the demand is a little greater than the supply. This is known as the ________ ____ __________ ___ __________.
|
The Law of Supply and Demand
|
|
|
Why does the Law of Supply & Demand say that the market is best when demand is a little greater than supply?
|
Businesses can charge more for their products when the demand is greater that the supply.
|
|
|
Which market should you invest in-- Bull or Bear? Why?
|
Bull Market because the stock value has increased more than average, so you can make an increased profit.
|
|
|
Franklin Delano Roosevelt was elected in _____________
|
1932
|
|
|
Who was FDR's wife?
|
Eleanor Roosevelt
|
|
|
Peak (greatest) number of unemployed people in the US happened in which year?
|
1933
|
|
|
True or False:
The leaders of Big Business were in favor of the New Deal. |
False-- they were generally opposed to The New Deal.
|
|
|
When elected in 1932, Franklin Delano Roosevelt promised the country what?
|
A New Deal
|
|
|
She helped her husband who was disabled by traveling around the country and communicating what she saw & heard.
|
Eleanor Roosevelt
|
|
|
WPA stands for ____ _____ _____.
|
Works Progress Administration
|
|
|
Works Progress Administration
|
Was one of the largest New Deal agencies. It was a large scale national work program. It provided relief to unemployed works by giving jobs to men and women to build hospitals, schools, parks, airports.
|
|
|
By the fall of 1934 the programs that passed in the Hundreds Days had produced a limited degree of recovery. Roosevelt knew he had to do more to help people so he proposed _____ _________ ________ ________
|
The Second New Deal
|
|
|
Key measures (3) in the Second New Deal were:
|
Social Security Act,
Works Progress Administration, National Labor Relations Act (Wagner Act) |
|
|
What does Relief, Recovery and Reforms stand for?
|
Relief for the hungry & jobless
Recovery for agriculture & industry Reforms to change the way the economy work |
|
|
Stock Market Crash led to:
|
more poverty
|
|
|
More poverty led to Hoover implementing his:
|
Trickle Down Theory
|
|
|
The Trickle Down Theory led to:
|
The big businesses / rich getting richer and the poor getting poorer
|
|
|
The big business began to use ____________ instead of people.
|
machines
|
|
|
This industrialization let to ____ jobs.
|
LESS
|
|
|
Less jobs led to more___________.
|
poverty
|
|
|
more poverty and unemployment led to :
|
The Great Depression
|
|
|
Oakies and Arkies
|
People from Oklahoma and Arkansas whose farms and homes were destroyed by the drought and dust storms. They moved to the west coast but found they were not welcome.
|
|
|
Shack villages built by the homeless during the Depression were called _____________.
|
Hoovervilles.
By 1933 a million people were living in Hoovervilles. |
|
|
What happened when the Bonus Army protested and demanded their money?
|
When they marched on Washington, they were treated very poorly by Hoover and the police and military. It was chaos and several vets were killed. The public was outraged and supported the vets.
|
|
|
Factor of the Depression:
Overextension of Credit |
People went into debt and couldn't pay back the loans which affected businesses.
|
|
|
Factor of the Depression:
Dust Bowl |
Affected 150,000 miles of the US. People lost their farms and property and moved. This created more unemployment and competition for jobs
|
|
|
Factor of the Depression:
Republic Domestic Economic Policies (Trickle Down Theory) |
Hoover believed in a pro-business approach and that eventually wealth would trickle down to all Americans. He did not think it was the government's role to help individuals.
|
|
|
Factor of the Depression:
Republic international economic policies |
During WW I the US had loaned over $11 billion to the European Allies. They could not pay it back so the US raised tariffs which ended up hurting the US even more.
|
|
|
Factor of the Depression:
Unchecked Speculation |
People were buying on margin and investing all of their money in the stock market. When the market crashed they lost everything and creditors were hurt.
|
|
|
Factor of the Depression:
Stock Market Crash of 1929 |
Everyone got nervous and tried to sell their stocks at the same time. Stock values became worthless, people lost all their money and no one bought stocks.
|
|
|
Factor of the Depression:
Overproduction of Goods |
Industrialization helped to increase production so their was a high supply. People lost jobs and money and were no longer able to buy so companies went out of business.
|
|
|
Factor of the Depression:
Decline of the Farming Industry |
Unemployment and poverty from the Crash made people unable to buy fresh food. Farmers went out of business.
|
|
|
Factor of the Depression:
Unequal Distribution of Wealth |
Industrial workers were replaced with machines (lost jobs & income) & banks and businesses encouraged spending by giving credit which created more poverty.
|
|
|
Factor of the Depression:
Unregulated Banking Industry |
Republican policies of "leave it alone" (no regulations) & the banks overextending credit ended up causing banks to fail. People lost the money they had put into the banks.
|
|
|
Factor of the Depression:
Declining Demand for Products |
People could not afford to buy things, businesses went bankrupt.
|
|
|
Factor of the Depression:
High Rate of Unemployment |
Technology & inventions led to laid off workers. This led to unequal distribution of wealth
|
