The Great Depression Flashcards
Financial failure caused by an inability to pay one’s debt.
Bankruptcy
Spending funds in excess of income, especially by the government.
Deficit Spending
The collecting of a tax against the amount of wages and salaries paid workers.
Payroll tax
When companies make too much of a product they are unable to sell.
Overproduction
Sum of money paid regularly as a retirement benefit.
Pension
Something promised as a security for the repayment of a loan. It has to be given up in the event of a default.
Collateral
Loan in which a house is used as collateral.
Mortgage
What is the difference between a recession and a depression?
A recession is a period of negative economic growth. A depression is a recession that is much more severe and long lasting.
What does “Laissez Faire” mean when referring to the government and economics?
Government does not intervene in the economy
What was “Black Tuesday?” What date did it occur on?
It was the day the stock market crashed, and it occurred on October 29, 1929.
The day after Roosevelt was inaugurated, what action did he take to resolve the bank crisis?
Roosevelt ordered all banks closed for four days. Congress passed the Emergency Banking Relief Act to help banks reorganize. Those that passed government inspection could then reopen.
What was the Reconstruction Finance Corporation? Which President is responsible for starting the RFC?
It lent money to businesses, and provided direct unemployment relief through the creation of public work projects. President Hoover was responsible for it. It was supposed to help end the Great Depression.
What were “Hoovervilles?”
Makeshift villages the homeless gathered in.
What were the causes of the Great Depression? (list at least 3)
Overproduction, stock market crash, and the banking and credit crisis
What were the effects of the Great Depression? (list at least 3)
Unemployment, bankruptcy, poverty
What was Hoover’s approach to ending the Great Depression
Public works, and the RFC.
What was Roosevelt’s approach to ending the Great Depression
Government creation of programs to assist the jobless and reforming the American economy.
What were the goals of the New Deal?
Relief, recovery, and reform.
What was the Bonus Army? How did Hoover handle the Bonus Army? What was the result of Hoover’s actions?
The Bonus Army was a group of WW1 veterans who demanded the bonus Congress had promised them in 1945 when the Great Depression started. Hoover called the U.S. troops to burn their camp. The public was shocked he would attack war veterans, so this turned their opinion firmly against him.
What was the Court Packing Plan? Why did Roosevelt try this?
The Court Packing Plan was when Roosevelt asked Congress to change the number of seats from 9 to 15. He tried it so he could fill the seats with people who supported the New Deal.
What does WPA stand for and what did it do?
Works Progress Administration. It built libraries, schools, hospitals, and roads as well as hiring artists and writers.
What does CCC stand for and what did it do?
It stands for Civilian Conservation Corps. It improved public lands by planting trees, clearing trails, fighting forest fires, etc.
What does FDIC stand for and what did it do
It stands for Federal Deposit Insurance Corporation. It insured money deposited in banks.
What did the Social Security Act do?
Provided insurance for unemployment and retirement.
What ended the Great Depression?
World War 2, because the unemployed suddenly had jobs with enlisting for the army.
