History Exam 2

Question 1

1. what new ideas undermine Victorian morality? How did these changes affect women, youth culture, and american cities?

Answer 1

Albert Einstein- theory of relativity contradicted Newton a bit. People freaked out turns into moral relativity

Great Depression made it difficult for the “Man” of the house to realistically provide for entire family

Moral Relativity- Morals depend on context (Premarital sex is ok when engaged)

Sigmund freud- psychologist everything you do is based on sex

Jazz musicians are mostly black. Jazz = satan Victorians like classical mozart

Question 2

2. What were the major economic changes of 1920’s what was the(consumer revolution)? What weaknesses caused the stock market to crash and created the depression?

Answer 2

70% of Americans were in debt New economy ideology led to under-consumption and overproduction

Buying on margin- Investing on borrowed money

Economy of scale- businesses lose money by doing nothing

Market saturation- too much product on market not enough demand

High tariffs- Foreign good taxes on both sides

Gini coefficient- gap between rich and poor people. Bad as stable middle class is most important to the economy

Banks close- Bad loans cannot be paid back

Question 3

3. FDR promised a new deal what methods did he use to fight the depression?

Answer 3

AAA- Agricultural adjustment act- pays farmers not to farm prevents overproduction crushes small farmers.

CCC- Civilian conservation corps- works for government building parks strict environment pays families.

FDIC- Federal deposit insurance corporation- insures government bails out banks that join

SEC- Securities and Exchange Commision- companies must give accurate stock numbers lying is a crime.

Glass-Steagall Act- Banks CANNOT get involved in stock market got repealed when internet was invented.

sherman antitrust act- prevents companies from working together

NIRA- National industrial recovery act- gets rid of sherman antitrust act allows businesses to work together to set prices and set wages.

PWA- grants given to build roads, bridges, and dams

Question 4

AAA- Agricultural adjustment act

Answer 4

pays farmers not to farm prevents overproduction crushes small farmers.

Question 5

CCC- Civilian conservation corps-

Answer 5

works for government building parks strict environment pays families.

Question 6

FDIC- Federal deposit insurance corporation

Answer 6

Federal deposit insurance corporation- insures government bails out banks that join

Question 7

SEC- Securities and Exchange Commission

Answer 7

companies must give accurate stock numbers lying is a crime.

Question 8

Glass-Steagall Act-

Answer 8

Banks CANNOT get involved in stock market got repealed when internet was invented.

Question 9

Sherman antitrust act-

Answer 9

prevents companies from working together(

Question 10

NIRA- National industrial recovery act-

Answer 10

gets rid of Sherman antitrust act allows businesses to work together to set prices and set wages.

Question 11

PWA- Public works admistration

Answer 11

grants given to build roads, bridges, and dams

Question 12

4.5 What changes did FDR make to appease democrats?

Answer 12

FICA- Social Security Act- Most important thing FDR did. you can retire now (Keynesian) old poor people have money can pay off debt no longer have to work. Young can take jobs that old leave
If you make more than $120,000 a year you don’t have to pay social security

Wagner Act (National Labor Relations Act)- minimum wage, negotiate wages, can legally go on strike. 50% of Americans in unions immediately.

Question 13

Keynesian economics?

Hayak- classical economics?

Answer 13

(Keynesian) Government should regulate economy

(Hayak classical economics) Government should not regulate economy