GDND Study Guide Flashcards
Process of EBRA (Emergency Banking Relief Act)
- close banks
- give emergency funds
- ensure that the bank won’t fail again
- reopen bank to public
What does the EBRA accomplish? What R is it?
relief - solves buying on credit
stops the downward spiral of the economy by ensuring the banks don’t fail again
Process of CCC - Civilian Conservation Corps
also called the “tree army”; provides young adults with jobs to serve the community, support their family, and reduce crime
What does the CCC accomplish? What R is it?
relief - solves wealth inequality
gives job opportunities to young Americans by having them plant trees, build roads, etc.
Process of TVA - Tennessee Valley Authority
put young men to work in Tennessee to build dams, which helped control flood waters and provided electricity with the generated power
What does the TVA accomplish? What R is it?
relief - solves wealth inequality
gives men jobs to support their families
Process of SEC - Security Exchange Commission
investigates the stock market, eliminates unfair business practices that led to the crash; required companies to report on their business honestly
What does the SEC accomplish? What R is it?
reform - solves stock market practice
changed the way businesses were running and stopped them from taking advantage of customers
Process of AAA - Agricultural Adjustment Act
limiting farm production to raise prices (supply down, demand up, value up) - the gov’t pays farmers to kill millions of pigs and not sell the meat
Why was the AAA unconstitutional? Why were so many people upset?
too much gov’t involvement; millions of Americans were starving and there was so much free meat being thrown away instead of given to the poor
What does the AAA accomplish? What R is it?
recovery - solves overproduction of farming
tries to bring peace to suffering farmers who couldn’t afford their job & lifestyle
Process of NRA - National Recovery Administration
sets prices for different goods; the goal is to eliminate competition, set uniform prices, and set a standard minimum wage for workers
Why was the NRA unconstitutional? Why were so many people upset?
too much gov’t involvement; they were too involved in businesses and the general market
What does the NRA accomplish? What R is it?
recovery - solves stock market practice
tries to remedy the business practices that caused the Great Depression in the first place
Process of FDIC - Federal Deposit Insurance Corporation
restores faith in banks by promising to protect or insure a civilian’s deposit up to $250,000
What does the FDIC accomplish? What R is it?
reform - solves stock market practice
changes how the banks take customers to support the economy
Process of Wagner Act
National Labor Relations Board is created to give employees the right to form and join unions; obligated employers to negotiate with union leaders
What does the Wagner Act accomplish? What R is it?
recovery - solves wealth inequality (?)
provides job security for Americans
Process of WPA - Works Progress Administration
attempted to create as many different types of jobs as possible to put people back to work
What does the WPA accomplish? What R is it?
relief - solves stock market practice / wealth inequality
gives people jobs and a way to earn money so they can boost themselves and participate in growing the economy
Process of SSA - Social Security Administration - or just “social security”
program pays a small pension (retirement money) to retired workers, disabled people, single parents, etc. who need assistance
What does the SSA accomplish? What R is it?
all three R’s; solves wealth inequality
the idea was that giving these people money would not only help improve their life, but it would help the economy because they would have more money to spend on different goods
4 long-term causes of the Great Depression
- wealth inequality - many people were below the poverty line
- stock market practice - made it seem like the economy was doing better than it was
- overproduction in farming - WW1 caused mass production for farmers, but that demand dwindled immediately after
- buying on credit - left people in debt, gave the illusion of success, they never actually thought they’d have to pay it back
1 short-term cause of the Great Depression
The stock market crash of 1929
(V) buying on margin
borrowing money from a broker to purchase stock
(V) buying on credit
purchasing goods and paying for them over time through installment plans - “buy now, pay later”
(V) New Deal
FDR’s plan to rehabilitate America after the Great Depression
(V) 3 R’s and definitions
- relief - for the unemployed
- recovery - of the economy by federal spending and creating jobs
- reform - of capitalism by new programs and legislation
Explain the process of Trickle Down economics
- gov’t gives loans/lower taxes to banks and businesses
- businesses hire workers + expand industry, banks give more loans
- new jobs = more money in circulation
- more money = more spending
- more spending = more demand = more factories hiring
Explain the process of Pump Up economics
- gov’t gives temporary jobs to people
- new jobs = more money in circulation
- more money = more spending
- more spending = more demand = more permanent jobs in factories
(V) deficit spending
spending more money than you’re receiving
(V) multiplier effect
the idea that economic change, whether negative or positive, can have a negative or positive affect in other economic areas
(V) business cycle
the market goes through highs and lows; the lows are recessions, but the lowest point(s) is a depression
expansion - peak - recession - back up with expansion
(V) Bonus Army
WW1 veterans who were promised compensation by 1945, but protested to have it immediately
(V) The Dust Bowl
Overproduction in farming from WW1 caused the soil to dry up. This, combined with a drought, caused massive tornadoes of dust, and many people fled from their homes to escape
(V) laissez-faire
“a policy or attitude of letting things take their own course, without interfering” - hands-off
(V) 22nd amendment
amended after FDR, states that a president can only serve 2 terms total
Benefits and downsides of Trickle Down economics; which President supports?
- gov’t is much more hands-off, less business corruption from the gov’t
- creates greater wealth inequality as business pocket the money
- Hoover
Benefits and downsides of Pump Up economics; which President supports?
- hands-on, gov’t cares about the people
- too much federal spending, how do you make more jobs if you’re in debt?
- FDR
How did the Cult of Domesticity affect the Great Depression?
The Cult of Domesticity believes that a woman’s rightful place is in the home. However, with the Great Depression, most people could not afford to stay at home, and they needed to find multiple sources of income. This shattered many people’s senses of purposes, leading to mental health challenges and even suicide.
True or False; the Hoover Dam was funded by Hoover’s gov’t
False; the gov’t supported the dam but did not fund it, the businesses did
