Term
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Definition
| Paying only a fraction of a stock's dollar value. |
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Term
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Definition
a. Disclosure
b. Bank investments
c. Insider trading |
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Term
| 1920's Agriculture Problems |
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Definition
| New technology had increased productivity, leading to crop surpluses, lower prices. and hard times. |
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Term
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Definition
| Investors speculated in overvalued stocks. They borrowed from bokers, who borrowed from bands, who loaned out the savings of depositors. Feder reserve restricts money supply after the crash, making recovery difficult. |
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Term
| Wealth Distribution (income disparity) |
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Definition
| Growing gap in wealth between rich people and Americans of more ordinary means contributed to depression. This resulted in a reduced consumer buying power. |
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Term
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Definition
| In charge of regulating the amount of money in circulation |
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Term
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Definition
| A restrictive Federal Reserve System policy that dried up credit. Left the country with a supply of money in circulation that was not large enough to allow the economy to bounce back after the crash. |
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Term
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Definition
| Raised US level tariffs to record levels which declined international trade. This decline fed into the cycle of underconsumption, weakening the American economy even more. |
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Term
| Hoover's "Voluntary Action" Response |
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Definition
| Hoover called a meeting of businesses leaders and asked them to pledge not to cut wages or productions of goods. He suggested that city and state government stimulate their local economies by funding building projects to provide new jobs. |
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Term
| Reconstruction Finance Corporation |
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Definition
| Largest federal program of economic aid proposed. The agency was authorized to dispense $2 billion in loans to faltering banks, insurance companies, and railroads. |
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Term
| Dispersal of the Bonus Army |
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Definition
| Bonus army (a large group of protestors trying to persaude congress to grant them their bonus 13 years early) moved from Portland to D.C. |
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Term
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Definition
The idea that an initial amount of spending (usually by the government) leads to increased consumption spending and so results in an increase in national income.
- Ex. the government multiplies its spending to compensate for the fall in demand in durable goods industries. |
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Term
| Stock Market Crash of 1929 |
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Definition
| Momentous decline of stock |
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Term
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Definition
| Overproduction and underconsumption had been developing which caused businesses to fail. |
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Term
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Definition
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Term
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Definition
- Occupied the white house when the depression began.
- Nicknamed the "Great Engineer"
- Elected by wide margarin.
- Graduated from Stanford.
- Hoover had Quaker upbringing, wanted to serve humanity
-Confident and Optimistic |
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Term
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Definition
| A county under the gold standard would set a price for gold, say $100 an ounce and would buy and sell gold at that price. In 1929 investors suddenly realized all the dollars in circulation couldn't possibly be backed by Gold, which caused a mass sell off of stocks called the "crash". |
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Term
| What combination tends to cause unemployment? |
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Definition
| A decrease in consumer and business spending and an increase in the money supply. |
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Term
| Economic Problems in Urban Areas |
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Definition
Hoovervilles - Homeless skyrocketed. Temporary shelters build from scraps creating cities.
- 1 out of 4 people were out of work
- People tried to make profits selling on the street
- The better off: even rich people had to depend on the aid and charity of their neighbors during the depression |
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Term
| Economic Problem in Agrarian Areas |
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Definition
- Dust Bowl: A period of severe dust storms causing major ecological and agricultural damage to American prairie lands from 1930 to 1936. Caused by severe drought coupled with decades of extensive farming without crop rotation.
-Banks foreclosed many farms because of unpaid loans
- Penny auctions for farm property
- Migration of Okies (farmers) to CA
-Tenant Farmers: rented land to farm (vulnerable to changes in farm economy during the 30's)
-Mexican American Workers: people wanted to send them back to mexico to because they thought they were taking all the farm jobs |
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Term
| Economic Problems in the Families |
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Definition
- Father: Lost self esteem because he couldn't make money. Often headed west to find Jobs but came back empty handed. Ashamed to go back to families.
- The Woman: Traditional homeworkers, but were forced to work often. Families were more dependent on the woman. Often created small home businesses.
- Growing up: Dad's and Mom's working long hours took tole on families. Some families were brought closer together. |
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