The Great Depression Flashcards
installment buying
buying on credit cards, paying later
how could lower class Americans afford to buy stocks?
they bought on credit
what would happen if the stock prices fell?
you wouldn’t be able to pay the bank back and you would be in debt
why was oct 29, 1929 referred to as “Black Tuesday?”
everyone was trying to sell their stocks
How did the banking crisis trickle down to the public?
businesses- small banks suffered from the farmers not being able to pay, large banks who invested in stock suffered huge losses, banks closed b/c they ran out of money
people- rushed to get to banks to sell their stocks, major debt all around
tarifff
tax on imported goods
hurt foreign economies, they now taxed our goods less money, less jobs
Hawley Smoot Tariff
placed a tariff on goods
What were the factors that led to the Great Depression?
unequal distribution of $, credit, stock market crashes, banks collapse, international depression led to unemployment
CCC
Civilian conversion corps
Employed people
Relief
SEC
Security exchange commission
Regulate commerce, stocks, bonds,
Reform
AAA
Agricultural adjustment act
Raised farm prices, controlled production
Recovery
WPA
Works progression administration
Put people to work
Relief
TVA
Tennessee valley authority
Control flooding, promote conservation, electricity
Relief
SSA
Social security act
Welfare, old age benefits
Reform
FDIC
Federal deposit insurance corp
Insure bank deposits
Reform
