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56 Cards in this Set

  • Front
  • Back
bull market
upward trend of stock prices
bear market
downward trend of stock prices
margin buying
purchase stock with borrowed money which was very risky becuz as long as market was bull it was okay but if market went to bear people feel into debt
black tuesday
tuesday, october 29, 1929--16 million shares of stock dumped on the market
black thursday
thursday october 24, 1929
what caused the market crash
4 things
1. rapid buying and selling inflated prices making stock more than their worth.
2. interest rates increased causing large investors to sell shares
3. margin buying
4. as prices decreased brokers called margin customers and demanded money that they didn't have so they were forced to sell their shares as losses.
why did american invest in the stock market
hoping to earn profits from rising stock prices. quick money
what is the great depression
1929 to 1933 the us economy sank into a deep economic downturn between 1929 and wwII
what is GNP
gross national product. The total value of all goods and services produced in a year in the US
What was the GNP prior to the market crash
103 billion
What was the GNP in 1933
56 billion
What happened during the depression
1. GNP fel
2. Income fell by 1/2
3. Banks closed becuz they couldn't collect on debt
4. millions lost jobs
25% of workforce unemployed
5. factories,mines, auto and stell inductries reduced production or shut down
6. depositors fearing bank failure, pulled money out
7. banks went out
what caused the depression
1. stock market crash
2. world economy faced debt from WWI
3. Dependence on credit
4. unequal distribution of wealth
5. overproduction
explain unequall distribution of wealth and its effects
Unequal distribution of wealth means that in 1923 to 1929 the wealthiest 1% of nation income increased 63% while the rest of the population decreased 4%. This created lack of money for most of the population to boost the economy.
smoot-hawley tariff
highest tariff on imported goods in u.s. history in 1930. The u.s was taxing goods coming into country in hopes to boost economy, but this just raised prices.
business cycle
ups an downs of doing business. Industries increase production and hire more workers until surpluses pile up. Industries then cut back on production and lay off workers causing recession or depression
How many americans unemployed in 1929
1.5 million
how many americans unemployed in 1932
12 million
what caused unemployment
industry production fell and caused unemployment. Those not unemployment took cuts in pay to just keep jobs
Racial discrimination during the depression
Black workers were first laid off
Bronx Slave market
Black women stand on the street corners and try to obtain work as maids
Why did the % of women in the work force increase during the depression
Women were cheaper help
What percent of the workforce lost their jobs
Mexian-American communities formed mutal aid societies to help local residents living in the city
Rent parties
Large social gatherings that charged small admission to help pay someone's rent
Bread and water given out throught charities such as the red cross
in 1932 how many children suffered malnutrition
1 out of 5
collection of shelters build out of packing boxes, lumbers or other thrown away items
nickname for shantytowns
hoovervilles--mocking hoover
newspaper used as blankets were called
hoover blankets
What was rural life like during the depression were letting crops rot becuz no one could buy them
2. famers had to slaughterrr cattle they couldn't afford to feed
3. banks foreclosed on farms
4. southern farmers suffered with no food at all
What happened during a farm auction
Neighbors of the farmers banded together and bid very low prices on items up for auction. Banks didn't get much money for auctioning of farm. After auction, farmer would get back items from neighbors
What happended to tenant farmers in the south
lost land altogether
What effect did the depression have on families?
1. divorce rose
2. less marriages
3. birthrate declined
What was the psychological impact on people during the depression
1. 20,000 committed suicide
2. habits of saving and making evey penny count
3. wanted financial stablity and material comfort
what type of movies were most popular during depression
ganster movies
popular musical
The gold diggers of 1933
popular song from musical
We're in the Money
What popular icon started during the depression
Walt Disney
popular "free entertainment" during the depression
How did the american people feel about the gov't prior to the crash.
Americans felt that the gov't should not interfer with the free-enterprise system
When depression hit, what did Americans ask of Hoover
get gov't involved and offer assistance
Did Hoover believe that is was the gov't job to relieve individual suffering during the depression
Famous quote of the times by Hoover
"people support the gov't, the gov't doesn't support the people"
So, what did Hoover initial do when depression hit?
1. encouraged hard work and strength of the american people during this time.
2. Encouraged private charities and local communities to provide relief
Rugged Individualism
Hoovers theory that sucess comes from individual effort and private enterprises
Committee for Unemployment Relief
Gov't committee that formed and encourraged state and local relief efforts by urging Americans to contribut more to charity to get thru this depression.---FAILED
What did Hoover do to attempt to stimulate the economy?
1. urged employers to maintain employment and wages.
2. Had congress fund several public works programs--800 million given to do this.
3. Instructed Federal Farm Board to buy excess surplus wheat,corn, cotton. Gov't would store these and sell them when prices were higher.
4. Provided money to banks, building and loan associations for low interest rate mortages hoping to increase construction and boost economy.
5. Lent large sums of money to railroads, insurance companies, banks hoping to strenghten these business and create more jobs
What is Committee for Unemployment relief
Gov't committee formed by Hoover to help during depression. They did nothing but encourage state and local relief to help unemployed americans
Hoover Dam
A public works project started by Hoover in an attempt to stimulate business and employ workers
Agricultural Marketing Act of 1929
Hoover instucted the Farm Board to buy excess surplus from farmers.
Home Loan Bank Act of 1932
Act provided money to Banks, building and LOAN associations for low interst rates mortages. Hoping to increase home construction, and boost economy
Reconstruction Finance Corp of 1932
lent large sums of money to railroads, insurance companies and banks hoping to strengthen these key business thru federal loans (cheap) and hoping this wouldn increase employment and decreased bank failures
How did Americans respond to Hoover
"In Hoover we Trusted and Now We're Busted"
Scottsboro Boys
trial which unfairly convicted black men
Bonus Army
WWI vets who went to Hoover to collect early payment on their pensions for serving their country. They needed this money to survive the depression