The Great Depression
Terms in this set (21)
the support of certain price levels at or above market value by the government.
A government-guaranteed minimum price farmers receive for their products
an arrangement which consumers agreed to buy now and pay later for purchases, often an installment plan (usually in monthly payments) that included interest charges.
a career politician. 4 term governor of New York. witty and outgoing.
He was the governor of New York. He was Catholic, and had rural interests. He was a democrat and ran in the 1928 election.
the engagement in risky business transactions on the chance of quick or considerable profit.
Act of buying stocks at great risk with the anticipation that the price will rise.
Buying on Margin
paying a small percentage of a stock's price as a down payment and borrowing the rest.
Purchasing stock with a little money down with the promise of paying the balance at sometime in the future.
October 29th. the "day" the market crashed.
October 29, 1929; date of the worst stock-market crash in American history and beginning of the Great Depression.
the period from 1929 to 1941 in which the economy was in severe decline and millions of people were out of work.
Dow Jones Average
the most widely used barometer of the stock market's health.
30 representative stocks used to monitor the price changes on the New York stock exchange.
Hawley- Smoot Tariff Act
established the highest protective tariff in US history. made to protect americans, had opposite affect.
Law that increased taxes on European imports to protect workers and industry, but made hard times worse.
the dirty thirties. bad farming and severe drought caused dust storms which made the Great Depression even worse.
Region of the Great Plains that experienced a drought in 1930 lasting for a decade, leaving many farmers without work or substantial wages.
a neighborhood in which people live in shacks.
Unplanned slum development on the margins of cities, dominated by crude dwellings and shelters made mostly of scrap wood, iron, and even pieces of cardboard.
a place where free food is served to the needy.
a line of people waiting for free food.
the giving of money or food by the government directly to needy people.
31st president. president during the great depressions who didn't believe the government was responsible for helping the nation.
approach to economy known as voluntarism (avoid destroying individuality/self-reliance by government coercion of business); of course, in 1929 the stock market crashed; tried to fix it through creating the Emergency Relief and Construction Act and the Reconstruction Finance Corporation (didn't really work)
designed to jump-start the economy and add jobs. only worked regionally and temporary.
the biggest public works project of the early great depression which spanned the Colorado river and provided cheap electricity for many people in americas southwes.
Federal Home Loan Bank Act
lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.
Reconstruction Finance Corporation (RFC)
January 1932. authorized to provide emergency financing to banks, life insurance companies, railroads, and other large businesses.
a group of unemployed World War 1 veterans and their families who marched on Washington D.C. to demand immediate payment of a bonus they had been promised for military service.
Causes of The Great Depression
-stock based economy; superficial prosperity
-unequal distribution of income
-problems in industry and the farm factor
-increasing consumer debt
-stock market speculation and crash
Effects of The Great Depression
-people out of work
-rise of shantytowns
-banks fail and schools close
-world economy suffers
-Hoover employs more active governmental involvement