GD & New Deal Quiz Flashcards
What were the 4 main causes of GD?
- Overproduction
- Laissez-faire policies and their effects
- Speculation and buying goods on margin
- Stock Market crash
What were 5 effects of the GP?
- Unemployment: loss of jobs
- Hoovervilles
- Bonus Army
- Dust Bowl
- Impact of the Great Depression on minority groups
What is GNP?
total price of goods & services a country makes in a time period that measures the economic growth
What is a recession?
when business slows down and people loose jobs in a period of time
What is laissez-faire?
the government decreases its role in economy
Who is Herbert Hoover?
a Republican commerce secretary who became president
What did Hoover make? (4)
organized crime in Chicago, Wickersham Commission, made national parks, Federal Farm Board
What is speculation?
investing lots of money to sometimes make quick or large profits
What is the stock market?
allowed people to buy and sell shares in companies
What is margin? (3)
borrowing money to buy stocks
banks made money
was risky
When and what was black Thursday? (3)
October 24, 1929
traders sold $13 mil shares of stocks
share prices dropped dramatically
Effects of Hoover elected?
more people speculated
contribution of roaring 20s to GD (3)
wealth not distributed
overproduced goods
industrial growth stopped so unemployment increased
contribution of government encouragement for farm production during an following WWI on GD (3)
high priced goods because of war that lead to them buying more and borrowed money
factories layed off workers
contribution of rise of stock prices on GD (2)
people bought stocks because they thought it was their only source of income
companies sold shares to pay for their companies
contribution of banks issuing more loans on GD (2)
more people borrowed money to buy stocks
interest increased
contribution of speculation on GD (2)
this could get people in deep debt if their stocks did bad
stockbrokers WANTED people to buy stocks
contribution of lack of regulation in the stock markets on GD
if stocks went down, people lost a lot of their money
What was black Tuesday? (2)
October 29, 1929
the stock market collapsed and $16 mil shares of stocks were sold and banks failed because black Thursday didn’t work
What is the Federal Reserve System?
told banks to keep some cash which caused money prices to go up and rate on loans increased so banks failed and companies went into bankruptcy
What was the Bonus Army?
a group of WWI veterans that wanted $1,000 each and hoped their marching on D.C. would presume the Senate to give them the money
What was the Dust Bowl? (2)
large dust storms in the 1930s that was caused by overgrazed topsoil after droughts that turned the soil into duct that blew to middle countries and thr ocean
people got sick and crops couldn’t be grown
What are Okies?
Oklahoma migrant workers that moved to California for jobs
Effects of GD/DB on farmers? (5)
ruined farms & equipment left Great Plains took seasonal jobs in new states when season over, moved migrant workers
