Chapter 21

Question 1

Speculation

Answer 1

• Practice of making high-risk investments inhopes of obtaining large profits
• Investors gambled w/ money they didn’t have, used it to buy stocks

Question 2

Black Tuesday

Answer 2

• October 29, 1929, when stock prices fellsharply in the Great Crash
• People started to sell their stocks in order to try to save their money
• Many people commit suicide

Question 3

Business Cycle

Answer 3

-Periodic growth and contraction of theeconomy

Question 4

Great Depression

Answer 4

-Period lasting from 1929 to 1941 inwhich the U.S. economy faltered and unemploymentsoared (25% of people)

Question 5

Hawley-Smoot Tariff

Answer 5

-Protective import tax authorized byCongress in 1930

Question 6

Bread Lines

Answer 6

• Line of people waiting for food handouts fromcharities or public agencies
• Sometimes handed out my churches
• Eventually the handed out soup too

Question 7

Hooverville

Answer 7

-Term used to describe makeshift shantytownsset up by homeless people during the Great Depression

Question 8

Tenant Farmers

Answer 8

• Farmers who gave a portion of their profit to the person who owned the land
• Rented the land
• Worked the farms, got a place to live

Question 9

Dust Bowl

Answer 9

• Term used for the central and southern GreatPlains during the 1930s when the region suffered fromdrought and dust storms
• People would migrate to cities for jobs (creates pressure for cities)

Question 10

Okies

Answer 10

• General term used to describe Dust Bowl refugees

- Migrated to cities for jobs (creates pressure for cities)

Question 11

Repatrition

Answer 11

• Process by which Mexican Americans wereencouraged, or forced, by local, state, and federal officialsto return to Mexico during the 1930s
• Created more job for American citizens

Question 12

Localism

Answer 12

• Policy relied on by President Hoover in the earlyyears of the Great Depression whereby local and state governmentsact as primary agents of economic relief
• Problems are solved at state and local levels

Question 13

Reconstruction Finance Cooperation (RFC)

Answer 13

• Federalagency
• Created by Hoover
• Set up by Congress in 1932
• Provides emergencygovernment credit to banks, railroads, and other largebusinesses
• Believed the money would trickle-down

Question 14

Trickle-Down Economics

Answer 14

• Idea that money poured from the top of the economic pyramid to the base
• Did not work because businesses would invest in companies over-seas

Question 15

Hoover Dam

Answer 15

• Dam on the Colorado River that was builtduring the Great Depression
• Created jobs for Americans

Question 16

Bonus Army

Answer 16

• Group of World War I veterans who marchedon Washington, D.C., in 1932 to demand early payment ofa bonus promised them by Congress
• Congress holds the bonus’
• Bonus used to support war veterans so they would spend the money and money would circulate throughout the system

Question 17

Douglas MacArthur

Answer 17

• General of the American Army
• Fired tear gas at the Bonus Army w/ his federal troops, and fought them until they left DC
• People didn’t know a lot about it because radio and TV didn’t exist yet (newspaper had some impact)

Question 18

Herbert Hoover

Answer 18

• Orphan who was born in Iowa
• Graduated from Stanford University (degree in geology)
• Nominated as the Republican for the 1928 election & 1932 (president Roosevelt won)
• Coordinated the Belgium relief program & was head of the Food Administration during WWI
• Served as Secretary of Commerce during the Harding and Coolidge administrations
• Believed American greatness showed itself when owners, workers, and the government converged on common goals

Question 19

What does Hoover do when the Great Depression occurs

Answer 19

• Localism
  
  • Hawley-Smoot Tariff: People will buy American goods
    
    • Doesn’t work because Americans don’t really have money
    • Foreign countries now tax our goods
  • Takes government money & gives it to big businesses
    
    • RFC
    • Gives money to railroads, banks, and big businesses
    • Hope it will create jobs & trickle down economics
    • Uneven distribution of wealth= cause of the Great Depression
  • Starts to create the public works project (Hoover Dam)
    
    • Employ people to create the dam
    • The money they make will be spent & the wealth will spread

Question 19

Causes of the Great Depression

Answer 19

• Uneven distribution of wealth= cause of the Great Depression
  
  • 1% of population controls wealth
• Droughts
  
  • Dust Bowl
• Poor response by President Hoover and Congress
  
  • Can be avoided by Keene approach, but we used a trickle down economics approach
    
    4. Speculation
  • People made risky investments with money they do not have on stocks hoping that money will be made -When stock market crashed, no one could pay for their stocks
    
    5. Over production of agricultural and manufactured products
  • Too many goods were being produced and not enough people were buying it
  • People are then fired or receive pay cuts to maintain profit margins

Question 19

Markers of the Great Depression

Answer 19

• Banks closing
• Businesses failing
• Unemployment