RUSH Chapter 14 Terms
Terms in this set (25)
The government would buy surplus crops at guaranteed prices and sell them on the world market
Plan to rehabilitate American agriculture by raising domestic prices of farm prices
Fortine New York governor ran for president against Herbert Hoover. (Democrat) he was catholic
Dow Jones Industrial Average
large firms trading on the New York Stock Exchange
Buying stocks and bonds on the chance of a quick profit while ignoring the risks.
A period of increased stock trading and rising stock prices
The period from 1929 to 1940 in which the Economy plummeted and unemployment skyrocketed
Buying on margin
Buying something you can't afford so you pay a down payment the bank loans money. having credit
October 29, 1929 black Tuesday
Day the stock market crashed.
Causes of the depression
Terence and more the policies that cut down the foreign market for American goods, A crisis in the farm sector, The availability of easy credit, and unequal distribution of income. These factors led to falling demand for consumer goods, even as newly mechanized factories produced more products. The federal govt kept interest rates low, by allowing companies and individuals to borrow easily which led to high debts.
Prosperity built on a few industries
Key industries like railroads, textiles, steel barely made profit
Mining, lumbering expanded during war was no longer in high demand
Coal, due to availability of new energy sources
consumer goods - now weak
Housing starts decline
Farmers faced tough times. Much of the Roaring '20s was a continual cycle of debt for the American farmer, stemming from falling farm prices and the need to purchase expensive machinery. When the stock market crashed in 1929 sending prices in an even more downward cycle.
Over production of goods
Most people didn't have the money to buy the goods factories produced, partly due to unequal income distribution
Unequal income distribution
between 1920 and 1929, the income of the wealthiest 1% of the population rose by 75%. More than 70% of the nation's families earned less than $2500 per year. This cause of the Great Depression meant that Americans could not participate fully in the economic advantages of the 1920s. Many people did not have the money to purchase the flood of goods that factories produced.
Too much easy credit
Many people buy goods on credit (buy now pay later). Businesses give easy credit; consumers pile up large debts. Consumers have trouble paying off debt, cut back on spending.
Little towns consisting of shacks built by unemployed and destitute people during the Depression of the early 1930s.
Average unemployment rate 1933
Businesses closed, casing the unemployment rate to rise the 14% in 1933.
World War I vets go to DC to support The Patman bill
They offered free or low cost food
Reconstruction finance Corporation
This authorized up to $2 billion for emergency financing for banks, life insurance, companies, railroads, and other large businesses
Lines of people waiting to receive food provided by charitable organizations or public agencies
Area from North Dakota to Texas. Wind blew dust hundreds of miles. A drought caused it
Cash payments or food provided by the government to the poor
People who moved to California taking route 66 referred to Oklahomans negatively. But it was referred to all migrants
Federal home loan Bank act
Lowered Mortgage rates. For homeowners and allowed farmers to refinance their farm loans and avoid foreclosure