Great depression Flashcards
name four distinct important events that I think are most responsible for the Great Depression.
manipulating the stock market, lack of buyers, the collapse of international trade, and living large
describe manipulating the stock market
This affected America because people were buying stocks but bought too many than they could handle. This meant that they borrowed money to buy more stocks than they couldn’t afford. This wiped out millions of investors and this meant no more money for the banks.
describe lack of buyers
This was a big bummer in the early 1930s, big and small businesses were at their lowest when no one had the money to buy their products because they didn’t have a lot of money.
describe the collapse of international trade
the collapse of international trade. Many countries imposed high tariffs and trade barriers. This caused many countries to not want to trade with each other.
describe living large
The slogan for this was “Buy now pay later.” This meant people bought anything they wanted in the roaring 20s cars, houses, appliances, etc. But there began to be a high expense for these buyers.
what were two approaches that president Hoover tried to stop the Depression?
volunteerism and localism
what is volunteerism?
This was “part of the business cycle”, it asked employment leaders to keep wages and prices even, and asked the wealthy to give more money to charity. Basically it asked the country to “volunteer” to combat the depression. This was not a solution because businesses did what they needed to do in order to survive.
what is localism?
The state and local action would be relied upon to fix concerns not the federal government. It basically said people can fix things themselves.
What were alphabet agencies?
government agencies made to help the American economy recover from the Great Depression.
what was the Civilian Conservative Corps?
his agency provides jobs for men to work on public projects like planting trees, building parks, highways, etc.
what are 3 alphabet agencies?
Civilian Conservative Corps, Federal Deposit Insurance Corporation, and Federal Housing Administration.
What is the Federal Deposit Insurance Corporation?
insured bank deposits that helped restore trust throughout the banking systems.
what is the Federal Housing Administration?
provided mortgage insurance on loans. The Federal Housing Administration still exists today in the 21st century.
who led the pecora hearings?
Ferdinand Pecora
What were 3 things that were reveled during the hearings?
Stock Market Manipulation, insider trading, and banking practices.
