Chapter 22 US History
Terms in this set (34)
what was meant by sick industries of 1920
how did farmers try to solve the problem of low prices for their crops
they boosted production in hopes of selling more but it didn't work. the congress used the mcnary-haugen bill. federal price supports for key products, gov buy surplus crops and sell them on world market. but coolidge veto'd it
what is meant by overproduction
how did americans purchase goods they could not afford
with an installment plan - low interest, easy credit. caused debt they could not pay back.
what was happening to the gap between the rich and poor during 1920s
the gap was wider, those who were rich got richer and those who were poor got poorer. the middle class began becoming nonexistant because they either were upper class or lower class
who were the candidates in the election of 1928
herbert hoover rep and democrat alfred e smith
what were al smiths handicaps
hoover could point to years of prosperity under republican administrations since 1920
what is the name given to a stock market that is steadily rising
dow jones industrial average
most widely used barometer of the stock markets health
what is the name given to a stock that is steadily decreasing
why were americans investing in the stock market during the 1920s
to make quick profit
what term is used to describe the continued buying of overvalued stocks in hoping of quick profit
what does buying on margin mean
paying a small percentage of stocks price as down payment and borrowing the rest
which event is considered the beginning of the great depression
october 24 the stock market crash
what happened on black tuesday
shareholders tried to sell before prices plunged lower, shares were dumped. many lost savings and some stuck with debt.
what were the causes of the great depression.
1 tariffs and war debt policies that cut down the foreign market for american goods
2 a crisis in the farm sector
3 the availability of easy credit
4 an unequal distribution of income
why did so many banks go bankrupt after the stock market crash
people panicked and withdrew their money from banks but some could not get their money back because the bank invested in the stock market which crashed. banks closed and failed because the government did not protect or insure bank accounts.
what was the unemployment rate during most the depression
unemployment was 3 percent to 25 percent. one out of four workers were out of a job.
what was the effect of hawley-smoot tariff
1 reduced flow of goods
2 prevented other countries from earning american currency to buy american goods
3 made unemployment worse in industries that could no longer export goods to europe
4 other countries raised their own tariffs
what were signs of the depression in the cities
jobs were lost, people evicted from homes, ended up on streets. shantytowns - little towns consisting of shacks. soup kitchens and bread lines were made to provide food.
why were many farms being forclosed.
prices fell and debt was rising. farmers could grow food for their family but they could not make money off of it so the mortgage holder took their land because they could not make payments.
years of great depression
1929 to 1940
what caused the dust bowl
plowing of farmers removed thick protective layer of grass. they exhausted the land through overproduction. when the drought and wings, little grass and trees held down the soil so wind scattered the topsoil exposing sand and grit.
in which direction did the dust bowl farmers move
what general name is given to farmers who were moving away from the dust bowl areas
how did many men react to unemployment
walked the streets in search of a job. they had difficulty coping because they were so use to working and supporting their family. men became so discouraged they stopped trying and some abandoned their families. some men became hoboes who were homeless and wandered.
did president hoover believe in giving federal government payments directly to the unemployed
no, he believed handouts would weaken peoples self respect and moral fiber. he wanted people to suceed through their own efforts.
why was the hoover administration slow to act at the beginning of the depression.
he thought the economy was on sound footing. he thought depressions were a normal part of the business cycle. thought doing nothing and let the economy fix itself. thought government should have a limited role.
what name did hoover give to his belief that citizens should try to work out their own economic problems?
what did hoover ask of businesses and labor?
business- work together to find solutions to nations economic woes and act in ways that would not make the situation worse. labor- not to demand higher wages or go on strike.
which dam was financed by the federal government to help give people jobs.
what was the main purpose of the federal home bank act
lowered mortgages rates for homeowners and allowed farmers to refinance their farm loans and avoid forclosure.
what did the public think of hoovers treatment of the bonus army.
americans weres stunned and outraged because hoover wanted the bonus army to disband so he called a force of 1000 soliders to remove them. two people were shot and many were gased, 11 month old baby and 8 year old boy.
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