great depression and new deal Flashcards
list the causes of the great depression
stock market crash,
tariff of world trade,
stock market speculation, bank failures/ regulation problems,
suffering of farmers,
buying on margin,
dust bowl.
what was the stock market crash?
market crash of 1929, a sharp decline in U.S. stock market values
what is tariff of world trade?
the smoot-hawley act that increased tariffs on foreign imports to the usa by 20%. other countries reply to this by raising the tariff on the us goods, which causes global trade to plumet.
describe stock market speculation
effort of investing causes speculation to begin. causes people to buy stocks on margin and falsely drove up price of stocks.
describe bank failures and regulation problems
also known as shaky banking- banks couldn’t invest peoples moneys into buisnesses and pay interest on deposits.
describe suffering of farmers
the weather and enviorment was extremely dry and was not good for farming.
what was the dust bowl?
over farming, drought and wind patterns caused the dust bowl. on april 13, 1935 dust rolls into plains. causes a great migration to other places (primarily california)
who was herbert hoover?
31st president- was widely disliked due to his inability to maintain or control the economic state of the country during the great depression
what is black tuesday and what day was it on?
october 29, 1929- major stock market crash that sent the country into the great depression.
describe buying on margin
buying on credit with the mindset that it would be able to be payed off later- paying down payment, assuming to pay off after selling stock for profit.
what were hoovervilles?
shanty towns that were built by unemployed americans (lost homes due to foreclosure)
explain rugged individualism
was a term Hoover used often during his presidency to explain the idea that individuals should be able to help themselves without government involvement in personal economic affairs or national economics in general.
what did the new deal focus on
sought to end suffering, regulate private industry and grow the economy
explain who fdr is
franklin d roosevelt; took office in 1933 and set out to stabilize the economy by issuing a series of programs and projects that focused on relief, recovery and reform.
describe the 3 r’s
relief- for the unemployed
recovery- of economy through federal spending / job creation
reform capitalism, regulatory legislation, creation of new social welfare programs
describe gold standard
value of gold/ money drops
describe the 1st hundred days
march-june of 1933, roosevelt and democratic congress pass legislation aimed at adressing banking crisis, unemployment, and weak industrial performance. was nicknamed the alphabet soup of new laws and agencies
describe deficient spending
occurs when government spending exceeds its revenue
what was court packing
fdr’s idea of adding justices to the Supreme Court or lower courts to shift the balance in a liberal, conservative or other direction
what is the sec
securities and exchange commission- monitoring markets, enforces security laws, develop new regulation. passed due to stock failure, still around today.
what is the ssa
social security administration- 1935 pay financial benefits to retired- 65 and above, still around to this day
what is the fdic
federal deposit insurance coorporaation- ensures money is being deposited. protects the consumer
what is the ccc
civillian consereration corps- work relief program, enviormental, helps to build national state parks and forest.
what is the wpa
work progress administration- 1935- employment. construction on gov. buildings such as roads or buildings
