Boom to Bust Flashcards
Prohibition
nationwide constitutional ban on the production, importation, transportation and sale of alcoholic beverages that remained in place from 1920-1933
Flappers
modern woman of 20s, new freedoms, “buck” traditional role of woman, make a point “why can’t we be like men?”, wearing less clothes, drank and smoke
Presidents of 20s
Warren G Harding, Calvin Coolidge, Herbert Hoover
Model T-Henry Ford
First time car ownership became a reality for average American workers, revolutionary advancements in assembly-line automobile manufacturing
buying on margin
like credit, borrowing the balance from a bank or broker, down payment made to the broker for the asset being purchased
Types of markets
“bull”-someone expects market to rise, “Bear”-someone expects market to fall
“Black Tuesday”
Oct 29th-worst, $14 billion lost, NY Times reported, “stock prices virtually collapsed”
Banking Crisis
banked forced to close, run on the banks-everyone comes to bank, fearful bank will run out of money
Causes of Great Depression
The stock market crash, Global depression, the business cycle, income gap, consumer debt, the banking crisis
Rugged Individualism
success comes through individual effort and private enterprise
Bank Holiday
Closes banks for 4 days in hopes of stopping the run on the banks
Dust Bowl
Top soil of mid America came off
Bonus Army
Gathering of WWI veterans who, with their wives and children, converged on Washington DC in 1932, demanding immediate bonus payment for war time services to alleviate the economic hardship of the Great Depression
Fireside Chats
initially to tell people about bank holiday by radio, so popular chats continue through Great Depression, brought people courage/encouragement, clam people down/gave comfort/keeping people positive
Great Depression Distractions
recreation and entertainment, comedies, dance marathons, radios, celebrities, attended sports-baseball-horse racing-betting on horses, gambling, movies
FDIC
Federal Deposit Insurance Corporation- June 1933, creates a system to guarantee individual bank deposits, get money back if bank fails, successful-still exists today, won’t have problem if banks close-you will get your money back
FERA
Federal Emergency Relief Administration- May, 1933, used federal funds to give to state agencies so that state agencies could pass out cash to people for groceries and necessities, ends in 3 years, get through worst of crisis, effective-assist most needy people
CCC
Civilian Conservation Corps (Tree Army)- March 1933, provided work relief for 250,000 jobless young people who would plant national forests, clear trails, restore historic sights, battle forest fires, successful- helped young people be employed, extra money could be sent back to family, greatest successful program, ends in 1942
TVA
Tennessee valley Authority- May 18, 1933, new agency to tackle important problems facing the valley, such as flooding, providing electricity to homes and businesses, and replanting forests, successful-today largest public power company in U.S., give energy and electricity to people and protect water quality
SEC
Securities and Exchange Commission, June 1934, Protects public and private investments in stock, still exists today, successful-policies stock market, everyone has to know info at the same time, no unfair advantage
Economic Change
- stock market crashing causes changes
- Banks forced to close and run on banks
- Business cycle-business stayed in depression for a longer/worse period of time
- Global Depression-Americans unable to sell products to foreign countries, U.S placed high tariffs on imported goods
Social Change
- KKK resurfaces
- Harlem Renaissance
- New African Americans present in society
- Jesse Owens, Louis Armstrong
Political Change
- Big changes in presidents
- 20s presidents not involved, FDR very involved
- many new government organizations
- FDIC, SEC
- Prohibition Laws change
- 18th Amendment outlaws alcohol but 21st amendment repeals prohibition
