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Unit 3 The Great Depression (Set 1)

Terms in this set (33)

primary producers
people who grow, harvest or extract food and raw materials, including agricultural products, fish, trees, and minerals such as coal
demand
Consumer willingness and ability to buy products
inflation
A general and progressive increase in prices
deflation
A situation in which prices are declining
First Wave of Globalization (1860-1914)
-growth of world economy due to mass production
-improvement in transportation technology
-lower tariff barriers
free trade
international trade left to its natural course without tariffs, quotas, or other restrictions.
Tariff
A tax on imported goods
boom years
A time of economic growth and general prosperity.
Gold Standard
A monetary system in which paper money and coins are equal to the value of a certain amount of gold
Capitalism
An economic system based on private ownership of capital
Laissez-faire
Idea that government should play as small a role as possible in economic affairs.
Isolationism
A policy of nonparticipation in international economic and political relations
Federal Reserve
the central bank of the United States; sets monetary policy
stocks and shares
Stocks, shares and equities are all words used to describe an investment that gives the holder part ownership of a company. If the company's value increases, so does the value of your share; if its value falls, so does the value of your investment. Shares are bought and sold on stock exchanges.
New York Stock Exchange
The largest stock exchange, located in New York City. Most of the companies on this exchange are larger companies with higher-priced stock.
Wall Street
A street in New York City famous for being the location of the New York stock exchange
Globalization
the process by which businesses or other organizations develop international influence or start operating on an international scale.
Dawes Plan
A plan to revive the German economy, the United States loans Germany money which then can pay reparations to England and France, who can then pay back their loans from the U.S. This circular flow of money was a success.
Fordney-McCumber Tariff
This tariff rose the rates on imported goods in the hopes that domestic manufacturing would prosper. This prevented foreign trade, which hampered the economy since Europe could not pay its debts if it could not trade.
McNary-Haugen Bill
A farm-relief bill that was championed throughout the 1920s and aimed to keep agricultural prices high by authorizing the government to buy up surpluses and sell them abroad. Congress twice passed the bill, but President Calvin Coolidge vetoed it in 1927 and 1928.
Overproduction
A condition in which production of goods exceeds the demand for them
Bull Market
A period of increased stock trading and rising stock prices
stocks and shares
financial investments in a company or a supply of goods
Black Tuesday
A name given to October 29, 1929, when stock prices fell sharply.
buying on margin
paying a small percentage of a stock's price as a down payment and borrowing the rest
1929 Wall Street Crash
Market continues to boom until October, The Wall Street Crash causes massive loses for speculators.
Black Thursday and Black Tuesday
Oct. 24th and 29th in 1929. The Stock Market crashed losing over 30 billion in wealth.
Deflationary Spiral
a downward trend in prices, wages, and business activity; a deflationary pattern in which falling prices cause a business slow-down, which in turn leads to lower wages, a further fall in prices, and even less business activity
Dust Bowl
Region of the Great Plains that experienced a drought in 1930 lasting for a decade, leaving many farmers without work or substantial wages.
Okies
Displaced farm families from the Oklahoma dust bowl who migrated to California during the 1930s in search of jobs.
Hoboes
In the 1930s these men roamed the country, hopped of freight cars, and went to wherever they could find a job. Sometimes they had to beg for food.
Hoovervilles
Depression shantytowns, named after the president whom many blamed for their financial distress
Bank Runs and Failures
a financial crisis in which a large number of customers simultaneously attempt to withdraw their money from a bank out of fear that the bank will close
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