us history final sem 2 Flashcards
What happened on October 29, 1929?
black tuesday
stock prices fell sharply
huge debts bc of buying on credit
signaled beginning of great depression
How did the stock market crash help cause the Great Depression?
The 1929 crash didn’t cause the Great Depression outright, with only 10% of Americans invested in the market, but it lowered consumer spending, caused panic that worsened an ongoing recession, reduced corporations’ assets and hurt their future prospects, and contributed to a banking crisis
What happened to banks and businesses in the economic collapse?
-many withdrew money from banks, but many couldn’t bc banks had no money
-ppl lost savings bc gov didn’t protect bank accounts
-gross national product cut in half, 90k businesses bankrupt
-1/3 workers lost jobs
What were the causes of the G.D?
- tariffs and war debt policies reduced foreign market for american goods
- crisis in farm sector
- avaliablity of easy credit
- unequal distribution of income
- overproduction w/ agriculture
- overproduction w/ industry
- installment buying and overuse of credit
- overspeculation in stock market
bank run
widespread panic in which great numbers of people try to redeem their paper money
Initially, what was President Hoover’s response to the economic crisis?
-resisted gov involvement
then:
-turned to congress to pass measures
-federal home loan bank act=less mortgage rates and refinance loans
-glass-stegall banking act=seperated investments from commerical banking
shantytown
a deprived area on the outskirts of a town consisting of large numbers of crude dwellings.
breadline
line of people waiting for food handouts from charities or public agencies
What were the three goals of the New Deal?
Relief - immediate (food, money) not meant to be long term
Recovery -moderate term (NRA, AAA, CCC, WPA) rebuildng
Reform - Long term -> won’t happen again (SEC, FDIC, social security)
What was the New Deal?
program to alleviate problems from GD, needy, economy recovery, financial reform, etc.
What was the first action that President Roosevelt took to address the economic crisis?
he closed all banks in a banking holiday
What did President Roosevelt do during the Hundred Days?
passed more than 15 major pieces of the New Deal, declared bank holiday and closed all banks to prevent further withdraws, Emergency Banking Relief Act (inspect banks and good ones stayed open), gave fireside chats, and more
bank holiday
all banking transactions were suspended in an effort to stem bank failures and ultimately restore confidence in the financial system.
Federal Securities Act
corporations must provide complete info on all stocks, liable for misrepresentations (no rigging)
Agricultural Adjustment Act
raise crop prices by paying farmers to leave a certain amount of land unplanted, lowering production
Tennesse River Valley
renovated 5 dams, new jobs, flood control, hydroelectric power, relocation for people who lived there, failed
Civilian conservation corps
put young unemployed men to work building roads, parks, trees, erosion-control, flood-control, they got free food and clothes
SEC
-restore investor confidence in capital markets by providing investors and the markets with more reliable information
FDIC
-insure and protect bank depositors’ funds against loss in the event of a bank failure
deficit spending
spending more money than it recieves in revenue
Dorthea Lange
photographer who documented american life during GD and ND
-spent time getting to know subjects who were migrant workers
-had polio as a child so she had sufferred too
What benefits did the Social Security System provide?
-1935
-provide aid to retirees, unemployed, disabilities, families with dependent children