great depression Flashcards
what makes the economy go
spending
what is a recession
what does it lead to
the economy shrinks
leads to job loss
what is an economic depression
a really bad recession
*someone has to name a depression
confidence
when people have confidence they spend
housing
1 indicator of the health of the economy; creates millions of jobs
what do banks do with the money you give them
loan it out
define mortgage
house loan
define foreclosure
bank takes it back (usually a house)
2008 housing crisis
housing created a bubble. all bubbles pop
2 trillion vanished- in the house, didn’t vanish
what does it mean if you own a share/stock in a company
you own part of the company
when do you make money in a stock
when you sell it
when do you lose money on a stock
when you sell it. if you sell it for less than you bought it for
who is the president when the great depression begins
herbert hoover
what is the dow jones industrial average
barometer of the stock markets health
top 30 american businesses
ex) walmart. amazon. nike.
bull vs bear market
bull- period of rising stock prices
bear- period of sinking stock prices
what is black tuesday
the day the stock market crashed
what day did the stock market crash
october 29, 1929
by november, how much money was lost in the stock market
30 billion- went into stocks and investments
why couldn’t people get their money out of the banks
all their money was loaned out
how many people were unemployed at the height of the depression? what happened to those who kept their jobs?
25 % unemploymed, 13 million
pay cuts and reduced hours
what is a tariff?
what impact did the tariff make?
tariff- tax on imports
hurts the economy
raise tariffs so people buy american
what is trade
buying and selling
when should you raise taxes?
raise- economy up
lower- economy down
when should you save/spend your money
save: economy up
spend: economy down
causes of the great depression
(in the 1920’s some americans were getting rick but most could not earn a decent living)
1.) industries in trouble
companies are not making a profit, they are overproducing and people cannot afford the product.
*quickest way for a company to save money is to lay off employees
*when workers are laid off they cant spend
2.) farmers in trouble
during the 1920’s farmers took out more loans and could not repay them. would lose their farms
3.) uneven distribution of income
the rich got richer and the poor got poorer
4.) living in credit
bought items in credit- buy now and pay later w/ interest
when do people stop spending
when they go into debt
what is the quickest way for a company to save money
lay off workers
when they are laid off they cant spend
shanty towns
little towns consisting of shacks. often in big cities
where could people go to get free food
food pantries
soup kitchens
bread lines
what were the conditions for minorities
highest unemployment rates
paid the lowest
one advantage of living in rural areas
farmers could grow their family food
with ______ prices and rising _____ thousands of farmers lost their land
falling
debt
what is the dust bowl? what caused it?
drought that lasted 8 years
didn’t rain enough, lots of dust storms, farmers overproduced and plowed wheat
what 5 states were the hardest hit by the dust bowl? where did people move to?
kansas, oklahoma, texas, new mexico, colorado
california
how did families entertain themselves
board games ( monopoly )
radio
go to the movies
what does it mean to be “sent away”
send your kids to another family who can support them
why were men having a hard time with the depression
they were accustomed to work and support their family, many were unemployed
what did some men do to their families
abandon
what were men who wandered from town to town called
hoboes
did the federal gov. give food stamps and welfare out at the beginning of the great depression ?
no
what did women do to try and help their families survive during the depression
can food
sew clothes
manage household budgets
why were working women targets of resentment
women shouldn’t work when there are men unemployed
why did people assume women had an easier time with the depression
few women were seen begging in food lines
2 health problems children had to deal with
malnutrition
rickets
what happened to schools
falling tax revenues
shorten school year / close
where did some children end up working
sweatshops
where did teenagers go? why was this so dangerous?
freight trains
riders would get beaten or jailed
prey to murderous criminals
what happens to the suicide rate during the 1930’s
up 30%
what did adults and young people stop doing
adults - going to dentist and doctor
young - go to college/ have a family
many people developed habits of saving and ____
thriftiness
who become president in 1933? what is different about him physically?
FDR
he is in a wheelchair, has polio
in the first 100 days of FDR presidency how many new laws were passed? what are they supposed to do?
15
deal with the country’s economic problems
what is the new deal
fdrs plan
why did people not want the government getting involved in the economy
seemed like communism
what is the most critical problem FDR faced
banking system / banks
what were the banks doing that hurt so many average americans? why did this happen?
closing
loaned out all their money to people who couldn’t pay it back
what is the purpose of the FDIC
if the banks fail, people are guaranteed their money back
what affect did FDR’s new laws have on americas confidence in the banks
PEOPLE HAD CONFIDENCE IN THE BANKS
why were FDRs laws called alphabet soup
he created them into acronyms
how many people worked for the CCC
how much money did they get paid?
what were their jobs?
how old?
stands for?
250,000 men
18-25 years old
30 a month and a room+board
^25 sent home
built dams, roads, improve national parks, drain marshes
civilian conservation corp
the AAA came to the conclusion many of the farmers supplies needed to be destroyed. why?
pay the farmers not to farm
what did the TVA do ?
public works
the CWA provided work for 4 million people doing what?
public works
construction
social work
teaching of literacy
how did roosevelt tackle americas unemployment problem?
PUBLIC WORKS JOBS
how many new deals were there?
2
the social security act had 3 parts to it. explain
- disability: you can spend even if you don’t work.
- unemployment insurance: you can spend if you don’t have a job
- old age retirement: retired people can still spend. keeps them out of poverty.
SOCIAL SECURITY POT. EXPLAIN.
workers put in.
government, grandparents, disability and unemployment take out.
explain public works
public gets the benefit
roads
dams
bridges
parks
schools
creates jobs. people will spend.
how does the united states get out of the depression?
government spends its way out.
2 things hitler promises the german people
1) solve the depression
2) make them a world power
compare FDR and hitler
both take office in 1933, both die in 1945
balanced budget
take in as much money as you spend.
- gov is supposed to have this
budget surplus
make more money than you spend
budget deficit
spend more money than you take in
- measured in one year
national debt
all the deficits combined
* what fdr did to get out out of depression
4 problems with social security now.
1) in 1935 there were 15 workers for every 1 person withdrawing money, in 2020 it’s 3:1
2) people are living longer which means they are withdrawing money from the SS longer
3) gov has borrowed over 1 trillion from ss fund.
4) baby boomers- largest and richest generation. withdrawing money and not paying in anymore
