25 terms

The Great Depression Begins

Chapter 14
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Terms in this set (...)

Price-supports
Maintenance of a price at a certain level through government intervention.
Credit
arrangement in which consumers agreed to but now and pay later for purchases.
Alfred E. Smith
He was the Democratic presidential candidate in the 1928 election. He was the first Catholic to be elected as a candidate., Former governor of New York who ran for President against Herbert Hoover. He was against Prohibition.
Dow Jones Industrial Average
a measure of stock market prices based on thirty leading companies of the new york stock exchange and nasdaq
speculation
the practice of making high-risk investments with borrowed money in hopes of getting a big return
buying on margin
paying a small percentage of a stock's price as a down payment and borrowing the rest
Black Tuesday
October 29, 1929; the day the stock market crashed. Lead to the Panic of 1929
Great Depression
The stock market crash signaled the beginning of the period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed
Hawley-Smoot Tariff Act
established highest tariff in history to help farmers protect their goods against foreign competition. It actually reduced flow of goods/wealth
Shantytown
little towns consisting of shacks
Soup kitchens
offered free or low-cost food
bread lines
lines of people waiting to receive food provided by charitable organizations or public agencies
Dust Bowl
western Kansas and Oklahoma, northern Texas, and eastern Colorado and New Mexico; long periods of drought and destructive farming methods ruined farming in the region
direct relief
cash payments or food provided by the government to the poor
Herbert Hoover
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Boulder Dam
a dam on the Colorado River—now called Hoover Dam—that was built during the Great Depression as part of a public-works program intended to stimulate business and provide jobs.
Federal Home Loan Bank Act
lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure
Reconstruction Finance Corporation
An agency established in 1932 to provide emergency financing to banks, life-insurance companies, railroads, and other large businesses
Bonus Army
1932 - Facing the financial crisis of the Depression, WW I veterans tried to pressure Congress to pay them their retirement bonuses early. Congress considered a bill authorizing immediate assurance of $2.4 billion, but it was not approved. Angry veterans marched on Washington, D.C., and Hoover called in the army to get the veterans out of there.
What industrial weakness signaled a declining economy in the 1920's?
When housing starts to fall, so dod jobs in many related industries such as furniture manufacturing and lumbering.
What did the experience of farmers and consumers at this time suggest about the health of the economy?
Many people did not have the money to purchase the flood of goods the factories produce. The properity of the era rested on a fragile foundation.
How did speculation and margin buying cause stock prices to rise?
The value of stocks declined, people who had bought on margin had no way to pay off the loans.
What happened to ordinary workers during the Great Depression?
Unemployment leaped from 3 percent 1929 to 25 percent 1933. one out of every four workers was out of a job. those who kept their jobs faced pay cuts and reduced hours.
How did the Great Depression affect the world economy?
World trade had fallen more than 40%
How did the Great Depression affect minorities?
some left voluntarily others were deported