Unit 5 Test Flashcards
price support
the government would buy surplus crops at guaranteed prices and sell them on the world market
credit
an arrangement in which a consumer agreed to buy now and pay later for purchases
Dow Jones Industrial Average
It was the most widely used barometer of the stock market’s health. The Dow is a measure based on the stock prices of 30 representative large firms trading on the New York Stock Exchange.
speculation
people bought stocks and bonds on the chance of a quick profit, while ignoring the risks
buying on a margin
paying a small percentage of stock’s price as a down payment and borrowing the rest
Black Tuesday
The bottom fell out of the market and the nation’s confidence. Shareholders frantically tried to sell before prices plunged even further.
The Great Depression
the period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed
Hawley-Smoot Tariff Act
It established the highest protective tariff in US history. Designed to protect American farmers and manufacturers from foreign competition, but had the opposite effect. By reducing the flow of goods into the US, the tariff prevented other countries from earning American currency to buy American goods.
shantytowns
little towns consisting of shacks
soup kitchens
offered free or low cost food to the poor
Dust Bowl
Kansas, Oklahoma, Texas, New Mexico, and Colorado became plagued with dust storms and evictions
direct relief
cash payments or food provided by the government to the poor
Herbert Hoover
In his view, Americans needed to be optimistic and go about their business as usual. A period of rapid growth always follows a depression. Limited government role in solving problems.
Federal Home Loan Bank Act
Passed in 1932, lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.
Reconstruction Finance Corporation (RFC)
Authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses
Bonus Army
10,000+ WWI veterans and their families arrived in DC, from all over the country. Rebelled against Congress for not passing the Patman Bill, which authorized the government to pay a bonus to WWI veteran s who hadn’t been compensated for their service.
FDR
Distant cousin of Theodore Roosevelt, reform-minded leader, working to combat the problems of unemployment and poverty
New Deal
Roosevelt promised “a new deal for the American people.” Policies focused on: relief for the needy, economic recovery, and financial reform.
Federal Securities Act
Required corporations to provide complete information on all stock offerings and made them liable for any misinterpretations
AAA
Sought to raise crop prices by lowering production, which the government achieved by paying farmers to leave a certain amount of every acre of land unseeded.
CCC
Put young men aged 18-25 to work on building roads, developing parks, planting trees, and helping in soil-erosion and flood control projects
NIRA
Provided money to states to create jobs chiefly in the construction of schools and other community buildings
deficit spending
spending more money than the government receives in the revenu
Eleanor Roosevelt
She was a social reformer who combined her deep humanitarian impulses with great political skills
WPA
Set out to create as many jobs as possible as soon as possible. Provided jobs for 8 million people. Produced public works of lasting value to the nation and gave working people a sense of hope and purpose.
France’s Perkins
Became America’s first female cabinet member. As secretary of labor, she played a major role in creating the Social Security system and supervised labor legislation.
Social Security Act
Created by Secretary of Labor Frances Perkins. 3 main parts: old age insurance for retirees 65+ and their spouses, unemployment compensation system, aid to families with dependent children, and the disabled.
Mary McLead Bethune
An educator who dedicated herself to promoting opportunities for young African Americans.
New Deal Coalition
An alignment of diverse groups dedicated to supporting r Democratic Party.
“Gone with the Wind”
A 1939 movie dealing with the life of Southern plantation owners during the Civil War, one of the most popular films of all time
Richard Wright
An African American author, wrote the novel “Native Son” which was about a young man trying to survive in a racist world
“The Grapes of Wrath”
A 1939 movie which reveals the lives of Oklahomans who left the Dust Bowl and ended in California, where their hardships continued.
FDIC
An agency created in 1933 to ensure individuals’ back accounts, protecting people against losses due to bank failures.
SEC
An agency, created in 1934, that monitors the stock market and enforces laws, regulating the sale of stocks and bonds
NLRB
The Wagner Act established it. Acts as a mediator in labor disputes between unions and employers.
TVA
A federal corporation established in 1033 to construct dams and power plants in the Tennessee Valley region to generate electricity as well as to prevent floods.
