the great Depression Flashcards
Speculating on stocks
the person who buys the stocks or invests in stocks (the average joe) a better on the stocks buy low sell high
On-margin buying and margin calls (forced selling)
is the percentage of the purchase price of securities (that can be purchased on margin) that the investor must pay for with his own cash or marginable securities; it is also called the initial margin requirement.
panic and hysteria
the stock market crashed everyone lost there money and it lead to people going mad
Bank failures (spread from Wall Street to Main Street)
the bank also invest your money in the stocks, when it crashed the people that put money in the bank lost it all
High consumer debt loads
Debts that are owed as a result of purchasing goods that are consumable and/or do not appreciate. Possessing high levels of consumer debt is not typically beneficial for the average individual because it increases the strain on one’s sources of income to maintain regular payments. If not managed well, consumer debt can lead to bankruptcy.
factories close and/or lay
the factories also lost money from the stock markcet so they fired people or closed down which eliminated jobs
prices of many things fall further dampening economy activity
they cant print out more money for themselves beaucase that will start inflation.
Trickle down
Trickle-down economics is a theory that says benefits for the wealthy trickle down to everyone else. These benefits are usually tax cuts on businesses, high-income earners, capital gains, and dividends. … They use any extra cash from tax cuts to expand business growth.
reliance on private relief
on unfair, deceptive, and unconscionable acts or practices in the conduct of any trade or commerce. It explores the standards for proving practices deceptive and for recovery of actual damages by or on behalf of individual and business consumers. It also discusses whether non consumer private plaintiffs can bring any claims under the act.
“Self-reliance”
reliance on one’s own powers and resources rather than those of others.
Rugged Individualism
The belief that all individuals, or nearly all individuals, can succeed on their own and that government help for people should be minimal. The phrase is often associated with policies of the Republican party
bonus army
assemblage of some 43,000 marchers—17,000 U.S. World War I veterans, their families, and affiliated groups—who gathered in Washington, D.C. in the summer of 1932 to demand cash-payment
a. Upbringing, confidence and optimism, “fear itself,” fireside chats
when fdr talked to the people of the USA about whats happening in the gov
bank holiday
Fdr closed all the banks to inspect them to see if they can be trusted
first 100 days
The President greets enthusiastic supporters in Warm Springs, Ga., on Dec. 1, 1933. March 4, 1933, was perhaps the Great Depression’s darkest hour. The stock market had plunged 85% from its high in 1929, and nearly one-fourth of the workforce was unemployed.
brain trust
Fdr gathered a team of smart people to solve all the problems in the US
Keynesian Economics (priming the pump with deficit spending)
are the various theories about how in the short run, and especially during recessions, economic output is strongly influenced by aggregate demand
the three R’s
- Relief - Immediate action taken to halt the economies deterioration.
- Recovery - “Pump - Priming” Temporary programs to restart the flow of consumer demand.
- Reform - Permanent programs to avoid another depression and insure citizens against economic disasters.
