23 terms

Chapter 8, Section 1

How did the prosperity of the 1920s give way to the great depression?
People had overconfidence in the government and relied on credit and installment options which lead to unprecedented debt.
Herbert Hoover
an accomplished public servant
orphaned asa child but overcame this tragedy and eventuallu graduated with a degree in Stanford University with a degree in geology
How did Hoover first emerge in American history?
he was a brilliant coordinator of the belgium relief program and then as head of the food Administration and during the Harding and Coolidge administrations Hoover served as Secretary of Commerce
What did Hoover believe in corporations?
stressed the importance of competition but also believed in voluntary cooperation between labor and management
How did Americans vote in the Hoover/smith Election?
voted overwhelmingly for Hoover, prosperity, and continuation of the republican government.
How did farmers contract huge debts?
they bout costly tractors and other mechanized farm equipment. Also, thy increased harvest yields and bought more land to put under the plow in order to meed the unprecedented crop demands created by world war I. this overall lead them into debt.
Why even though the american crops fell sharply, did postwar production remain higher for farmers?
Because of increasingly mechanized farm equipment and more intensive farming methods. Farms were getting bigger and yielding bumper crops at harvest. But farmers failed to sell off their huge crop surpluses and pay their debts to banks and other institutions.
how did the rih get richer and poor get poorer?
the output of production jumped thirty two percent but workers wages inched up only eight percent. But corporate profits frown worker output skyrocketed sixty five percent.
How did easy credit hide problems of the economy
Americans bought automobiles appliances radios and other goods on credit which caused them to buy so far belong their own means which caused the economy to implode
What economic problems lurked beneath the general prosperity of the 1920s
Laborers wages seemed o be increasing when in reality they were only a small margin while the rich were getting a larger percent of the economic wealth from production.
Black Tuesday
the bottom of the stock market fell out.
What happened on october 29, 1929?
The stock market bottomed out completely
The Great Depression
a period lasting from `929 to 1941 in which the economy faltered and unemployment soared
How did the crash spark a chain of events that quickened the collapse of the U.S. EEconomy>
the banks collapsing, business closing, unemployment rises tariffs
What were the causes of the bank failures?
The monetary policy (federal reserve cut interest rates to stimulate economic growth. and the bank runs
Why did businesses close?
they closed because the collapse of stock prices meant that there was refaced consumer spendiing
*During the depression businesses reduced pay role and forced workers onto the growing lists of the unemployed
The Chain Reaction of the great depression
Businesses closed plans and fired workers to save money-americans lost jobs-as unemployment grew and incomes shrank-consumers spent less money-therefore businesses cut production even more.
Hawley-Smoot Tariff
raised prices on foreign imports to such a level that they could not com pee in the American Market which inspired european countries to retaliate and enact protective tariffs of their own.
How did the Hawley Smoot Tariff add to the problems of the depression?
it added to the problems because high protective tariffs closed markets which was harmful to American Producers and the global economy
How did the stock market crash contribute to the onset of the depression?
it caused people to lose all of the money in stocks and run to banks and get their hard money which caused bank runs and caused banks to close.
What were the primary causes of the Great Depression?
Critical problems in money supply, distribution of wealth, stock speculation consumer spending, productivity, and employment.
The Major Causes of the Great Depression
uneven distribution of wealth and over-speculation in the stock market which created dangerous economic conditions.