What was stock market speculation?
People of all classes thpught they could get rich by "playing the markets" and they borrowed money to buy the stocks.
What was the distribution of wealth like?
How did production contribute to the stock market crash?
goods were being overproduced. the wages workers were being paid were not enough to continue purchasing
What was the farm economy like before the depression?
weak all throughout the 20s.
How did government policies contribute to the crash?
in the 20s the politions did nothing to regulate or control business.
What was the Hawley Smoot Tariff?
one of the highest tariffs on foreign goods ever
What was the reaction to the tariff?
europeans retaliated by setting a tariff on US goods, which hurt trade for all of the nations. And both sank further into economic depression
What was the debt moratorium?
Hoover proposed a suspension on the payment of war debts
What was the Reconstruction Finance Corporation?
a measure that proped up railroads, banks, insurance companies, etc and Hoover hoped that by rebuilding these, it would be a "trickle down" effect and help everyone
What was the bonus march?
veterans marched on washington in 1932 to demand the payment of bonuses that were promised to them in 1945. They camped out near the Capitol in "Hoovervilles"
What was the result of the bonus march?
the bonus bill they proposed wasnt passed and measures were taken to drive these veterans from the capital. Many Americans regarded Hoover as bad after this.
What was the 20th amendment?
shortened the time between presidential election and inauguration
What did FDR propose?
The New Deal
What were the three "R"s of the New Deal?
Relief (for unemployed), recovery(for the economy) and reform(of American economic institutions)
What was the Bank Holiday?
Roosevelt ordered the banks closed so that they could have enough time to reorganize.
What was the 21st amendment?
repealed the 18th amendment (prohibition)
What were fireside chats?
roosevelt connected with his people over the radio
What was the Emergency Banking Relief Act?
chose which banks would reopen after the banking holoday based on if tey were sound or not
What was the FDIC?
insured bank deposits
What was the Home Owners Loan Corporation?
what did public works administration and civilian conservation corps and tennessee valley authority do?
made new jobs in the form of public projects
What was the National Recovery Administration?
combined reasonable profits for business and fair wages/hours for laborers
What was the SEC ?
Securities and Exchange Commission, created to regulate the stock market
What was the works progress adminstration (WPA)?
proved people with jobs
What was the Wagner Act?
protected Unions and labor rights
What was the REA?
provided electricity in rural areas
What was the Social Security act?
tax taken out of paychecks that would be used to make monthly payments to people over 65 and also unemployed, disabled, and dependent children/mothers
Who was against the New Deal?
1)people who thought it gave government too much power
2)liberals who thought it should be doing more for the poor rather than business
3) the supreme court who killed both the AAA and the NRA
How were unions affected?
thanks to wagner act and NIRA, union membership sky rocketed
What was the CIO?
a union that was originally joined with the AFL and extnded membership to all races and both sexes
What was the Fair Labor Standards Act?
1) minimum wage
2) 40 hr work week
3) child labor restraints
What were Keynesian economics?
taught that deficit spending helped a country in difficult times
What was the Indian Reorganization Act?
repealed the dawes act and returned lands to the control of tribes