Review Flashcards
Why was the 1920s called the “roaring 20’s”?
The 1920’s was called the “roaring 20’s” because it was an era of change (society & culture was changing).
How did the role of women change in the 1920’s?
Traditional roles of women changed, as concept of new women emerged. The new women sought career/income; they smoked, drank alcohol, etc., which depleted the moral influence they previously had on the society.
How did the society react to the changes occurring in the 1920’s?
Society was fearful of the changes.
What was the economic state in the 1920s?
Economy was booming and consumer debt was growing.
What was the Big Plow Up?
Millions of acres were used for overproduction; overproduction lead to less demand of crops, which created agricultural recession in the 1920s.
What did the Keynesian Theory suggest?
This theory suggested that federal government spending can recover and sustain the economy.
What were the symptoms of the Great Depression?
Stock market crash/black Tuesday.
What were the causes of the great depression?
Consumer debt -> society stopped consuming -> unemployment increases -> economy slows down and eventually crashes.
Define the Glass Steagall Act.
This act introduced the Federal Deposit Insurance Corporation (FDIC), which insures peoples’ money in the bank.
Why were banks failing during the Great Depression?
Due to fear of the economic condition, people withdrew money from banks. Moreover, the banking system was structurally weak from raising tariffs and income taxes. Also, government was trying to reinforce money through gold standard, which created economic deflation.
What is the “New Deal”?
FDR created the New Deal, which consisted of the 3 r’s (recovery, relief, & reform), to fight the effects of the Great Depression by using federal power to rebuild the economy.
What did Hoover’s “Reconstruction Finance Corporation” (RFC) do?
Empowered states by providing them with money to lend to local governments and big businesses (e.g., banks, railroads, etc.).
What did President Roosevelt do when he took office?
established the Bank Holiday.
What did the Social Security Act do?
Provided general welfare of the public by paying benefits to the elderly, disabled, maternal, and children. However, this act was a pyramid/ponzi scheme, as it claimed to provide retirement money at 65 years old, although the average life expectancy was 61 years old at that time. Nevertheless, this act strengthens the relationship between government and individual, as it creates dependency of individual on the government.
What was the purpose of the Agricultural Adjustment Act (AAA)?
This act purposed to balance the supply and demand by paying the farmers to stop the production of crops, which is effective in reducing production and increasing prices. However, this was problematic, as people stopped consuming due to the increased prices, which results in undernourished children and starving adults. This act also ends sharecropping.
