The Nation's Sick Economy
Terms in this set (28)
How did the economic troubles effect America in the 1920's?
industries struggled, farmers grew more crops and raised more livestock than they could sell at profit, farmers and consumers grow more and more into debt
What put the industries in trouble?
railroads, textiles,and steel because they could barely make any profit
How did farmers need a lift?
durning the war the prices rose and international demand for crops such as wheat and corn soared. farmers planted more and taken out loans for land and equipment. the demand fell after the war and crops prices declined
Why did consumers have less money to spend?
Farmers income fell and thy bought fewer goods and services. Americans were buying less because the rising of prices,stagnant wages, unbalanced distribution of income and overbuying on credit in the preceding years
What was credit?
an arrangement in which consumers agreed to buy now and pay later for purchase's
What did the uneven distribution of income do?
it made the rich richer and the poor poorer, the income of the wealthiest 1 percent of the population rose by 75 percent, compared with a 9 percent increase for Americans as a whole
Who did Hoover run against in the election?
the election of 1928 was with the Republican candidate Herbert Hoover against Democrat Alfred E. Smith
What was the Dow Jones Industrial Average?
the most widely used barometer of the stock market's health
What is speculation?
they bought stocks and bonds on the chance of a quick profit, while ignoring the risks
What was buying on the margin?
paying a small percentage of stock's price as down payment and borrowing the rest
When did the market plunge?
What was Black Tuesday?
the bottom fell out of the market and the nation's confidence
When did Black Tuesday happen?
What is the Great Depression?
the period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed
How did banks and businesses fail?
people panicked and withdrew their money from the banks, 600 banks closed in 1929, 1933 11,00 of the 25,000 banks failed
What other countries suffered in the Great Depression?
Europe and Germany
When was the Hawley-Smoot Tariff Act passed?
Congress passed it in 1930
What is the Hawley-Smoot Tariff Act?
established the highest protective tariff in the United States history
What was some of the Great Depression?
tariffs and war debt policies that cut down the foreign market for American goods, a crisis in the farm sector, the availibilty of easy credit, an equal distribution of income
What happened after the cash of buinesses and banks?
people panicked and withdrew there money from the bank
What is price support?
the government would buy surplus crops at guaranteed prices and sell them on the world market
What was not on high demand after the war?
mining, lumbering, coal mining,
When did the stock market crash?
Who was a republican humanitarian that ran for president in 1928?
What was the economy like before the Great Depression?
the economy was rising and most didn't see the depression coming
What happened to farmers?
they had gone into debt and ha difficulty paying off their loans, many lost there farms when banks foreclosed and seized their property as payment for the debt
What happened when farmers income fell?
they bought fewer goods and services
How did technoloy on the trading floor change since the 1920s?
the technology is way more advance and easier to use than back then