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22 Cards in this Set
- Front
- Back
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Define a depression and the 4 points it includes.
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- severe economic downturn
-high unemployment/ wage cuts -bank failures -decrease in product prices -high rate of business failure |
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Name 4 underlying causes of the Great Depression.
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-Buying on margin- Banks loaned out a lot of money but were not giving enough in.
-Farmers/Industry- "overproduction" Drout due to the Dust Bowl -Income Gap between rich and poor -American banks loan billions to Europe, banks lost money and stop loaning and Europe stops buying American goods |
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Immediate Spark
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Stock Market Crash- "Black Tuesday"
Oct. 29, 1929 |
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People who believe the economy will fix itself and it is only part of a cycle.
Elastic band theory- when the economy grows, it can only grow so much before it burst, but it will grow again if the government does not touch it. Lassiez-faire |
Classic economist
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President's Hoover's view on the economy
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The government should not regulate the economy. In inauguration, he promised permanent prosperity. The governments place is not create job, but volunteers should create soup kitchens, ect. to help and local gov. should help. "Tighten your belt. Prosperity is just around the corner."
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"Priming the Pump" Government should step in if they put public money to use to easy systems and prevent the "snap." First to predict screwing Germany ->economic devastation in the world -> they will cause another was
Did not trust FDR to get US out of the Depression |
John Maynard Keynes
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Encourages dictatorship
Benito Mussolini- Italy Adolf Hitler-Germany State control of the economy- runs everything, no private ownership. Rule by fear- propaganda Use military to promote goals Return to past glory (Roman Empire) Reactionary Conservative Federal ownership |
Fascists
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Same as fascists except politically communists want to tear down history, cast society into a new mold, radical liberal, destruction of natural borders
Hate fascists, Hitler sees com as Jewish plot Collective ownership |
Communists
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political party in some parts of Europe, government should use government money to ease depression
Keynes |
Social Democrats
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NRA
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creates codes of fair competition
sets minimum wages maximum hours |
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AAA
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restricts production by paying farmers to reduce crop surplus
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FERA
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unemployment relief
state assistance |
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TVA
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navigation, flood control, fertilizer manufacturing, economic development in Tennessee Valley
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CCC
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work relief program for men providing vocational training for men through conservation/natural resource development work
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FDIC
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provides deposit insurance, safety of deposits in banks
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WPA
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employs people to carry out public works projects
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SSI
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help aged, blind disabled, poor, and provides cash for basic needs
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5 Legacies of the Great Depression
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-social security system (retired, elderly, kids with dead parents, disabled)
-more regulation of the stock market, close market, early if theres a large slide -FDIC, protects money as a depositer -minimum wage -unemployment benefit- collect for a year- if lost job through no fault of your own |
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Charles Coughlin
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main complaint: helping big business, communist
Solution: extend the deal further, seizure of the banking system, state control completley Response from FDR: fireside chats on the radio weekly |
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Huey Long
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main complaint: doesnt do enough, good attempt, helps businesses more
ideas" "share our wealth" promised min income to every family, redistribute wealth FDR: no response, Huey is assassinated |
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US Supreme Court
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complaint: NRA/AAA unconstitutional, too much power
ideas: none FDR: appoints new judges to offset the 6 that vote against him |
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Conservatives
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complaint: too much power
ideas: laissez- faire government policy, support Hoover FDR: no response, Herbert- no voice |
