Shared Flashcard Set

Details

History Test 3
n/a
21
History
11th Grade
01/30/2011

Additional History Flashcards

 


 

Cards

Term
Buying "on MARGIN"
Definition
Paying only a fraction of a stock's dollar value.
Term
No Regulations on...
Definition
a. Disclosure
b. Bank investments
c. Insider trading
Term
1920's Agriculture Problems
Definition
New technology had increased productivity, leading to crop surpluses, lower prices. and hard times.
Term
1920's Market Saturation
Definition
Investors speculated in overvalued stocks. They borrowed from bokers, who borrowed from bands, who loaned out the savings of depositors. Feder reserve restricts money supply after the crash, making recovery difficult.
Term
Wealth Distribution (income disparity)
Definition
Growing gap in wealth between rich people and Americans of more ordinary means contributed to depression. This resulted in a reduced consumer buying power.
Term
Federal Reserve System
Definition
In charge of regulating the amount of money in circulation
Term
Monetary Policy
Definition
A restrictive Federal Reserve System policy that dried up credit. Left the country with a supply of money in circulation that was not large enough to allow the economy to bounce back after the crash.
Term
Hawley Smoot Tariff
Definition
Raised US level tariffs to record levels which declined international trade. This decline fed into the cycle of underconsumption, weakening the American economy even more.
Term
Hoover's "Voluntary Action" Response
Definition
Hoover called a meeting of businesses leaders and asked them to pledge not to cut wages or productions of goods. He suggested that city and state government stimulate their local economies by funding building projects to provide new jobs.
Term
Reconstruction Finance Corporation
Definition
Largest federal program of economic aid proposed. The agency was authorized to dispense $2 billion in loans to faltering banks, insurance companies, and railroads.
Term
Dispersal of the Bonus Army
Definition
Bonus army (a large group of protestors trying to persaude congress to grant them their bonus 13 years early) moved from Portland to D.C.
Term
The Multiplier Effect
Definition
The idea that an initial amount of spending (usually by the government) leads to increased consumption spending and so results in an increase in national income.
- Ex. the government multiplies its spending to compensate for the fall in demand in durable goods industries.
Term
Stock Market Crash of 1929
Definition
Momentous decline of stock
Term
1920's Industry
Definition
Overproduction and underconsumption had been developing which caused businesses to fail.
Term
Bank Failures
Definition
Term
Herbet C. Hoover
Definition
- Occupied the white house when the depression began.
- Nicknamed the "Great Engineer"
- Elected by wide margarin.
- Graduated from Stanford.
- Hoover had Quaker upbringing, wanted to serve humanity
-Confident and Optimistic
Term
Gold Standard
Definition
A county under the gold standard would set a price for gold, say $100 an ounce and would buy and sell gold at that price. In 1929 investors suddenly realized all the dollars in circulation couldn't possibly be backed by Gold, which caused a mass sell off of stocks called the "crash".
Term
What combination tends to cause unemployment?
Definition
A decrease in consumer and business spending and an increase in the money supply.
Term
Economic Problems in Urban Areas
Definition
Hoovervilles - Homeless skyrocketed. Temporary shelters build from scraps creating cities.
- 1 out of 4 people were out of work
- People tried to make profits selling on the street
- The better off: even rich people had to depend on the aid and charity of their neighbors during the depression
Term
Economic Problem in Agrarian Areas
Definition
- Dust Bowl: A period of severe dust storms causing major ecological and agricultural damage to American prairie lands from 1930 to 1936. Caused by severe drought coupled with decades of extensive farming without crop rotation.
-Banks foreclosed many farms because of unpaid loans
- Penny auctions for farm property
- Migration of Okies (farmers) to CA
-Tenant Farmers: rented land to farm (vulnerable to changes in farm economy during the 30's)
-Mexican American Workers: people wanted to send them back to mexico to because they thought they were taking all the farm jobs
Term
Economic Problems in the Families
Definition
- Father: Lost self esteem because he couldn't make money. Often headed west to find Jobs but came back empty handed. Ashamed to go back to families.
- The Woman: Traditional homeworkers, but were forced to work often. Families were more dependent on the woman. Often created small home businesses.
- Growing up: Dad's and Mom's working long hours took tole on families. Some families were brought closer together.
Supporting users have an ad free experience!