Great Depression Flashcards
decline of homes built led to…
job losses in industries
more Americans on credit led to…
more debt, less consumer spending
Hawley-Smoot Tariff
raised protective tariffs and increased unemployment, industries could no longer export goods to Europe
Effects on Rural Areas
400,000 farms foreclosed, tenant farming, and the Dust Bowl
Effects on women & children
women were only supporters of the family and children couldn’t go to school and didn’t have healthcare and many died of diseases
Cooperatives
when farmers stored crops with other farmers and sold them when supply was down & made prices higher
Federal Home Loan Bank Act
allowed families to refinance their homes at lower interest rates- many families could not do this because they didn’t have the money to do so
Reconstruction Finance Corporation
provides money for industries to keep people employed and to produce more goods
How are stocks valued?
in demand–> prices go up
not in demand–> prices go down
Charles Mitchell & Jesse Livermore
made money buying and selling stocks
Hoover promised in his campaign that…
poverty would be banished
Buying on margin
borrowing money to buy stocks
consumer credit changed by…
“buy now, pay later”
