Leading up to the Great Depression (1920s)
What is overindulgence?
excessive gratification of a person's wishes
This is the name of the infamous day on October 29, 1929 when the stock market crashed.
Black Tuesday
Who was the 31st President and 32nd President during the Great Depression?
Herbert Hoover and Franklin D. Roosevelt (FDR)
What are the 3 R's of the New Deal?
Relief, Recovery, Reform
When there is little to no rainfall for an extended period of time.
The idea that more buying and spending by people is good for economic growth and happiness
Consumerism
What is a reduction in purchasing and why did it happen?
When the stock market crashed, Americans were fearful and stopped/slowed their purchasing. This led to less items being sold/made and therefore led to less jobs.
Many people became homeless during the Great Depression. Some lived in shantytowns called___________________ and some traveled by railroad stopping in different towns for work or food. These travelers were known as ________________.
Hoovervilles and Hobos
What was the New Deal?
A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt to help Americans during the Great Depression.
What caused the dust bowl?
drought and poor farming practices
Developed in the 1920s, this is an arrangement of workers and machines in a factory, where each worker deals with only one part of a product. It increased production and lowered costs of manufactured goods.
Assembly Line
Taking out loans to purchase stocks
Buying on Margin
What are 4 effects of the Great Depression?
Bank Failures, Business Failures, Foreclosures, Unemployment
Explain Relief, Recovery, Reform
Relief - direct help to those in need
Recovery - stimulate the economy
Reform - implement regulations to protect Americans in the future
Where was the dust bowl?
A method of paying for something in which a person pays part of the cost immediately and then makes regular payments until the debt is completely paid. Taking out a loan.
Installment Plans
Investment in stocks, property, or other ventures in the hope of gain but with the risk of loss
Speculation
Why were there many bank failures during the Great Depression?
They lacked sufficient reserves to stay in business. Many of the small banks had lent large portions of their assets for stock market speculation and were virtually put out of business overnight when the market crashed.
New Deal program was enacted in 1935. In addition to several provisions for general welfare, the new Act created a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement.
Social Security Administration
Where did most dust bowl migrants move to and to do what?
California, harvest fruit
Abstention by governments from interfering in the workings of the free market. Hands off.
Laissez-Faire
This tariff was a trade restriction. President Hoover passed this tariff to protect American companies by taxing imports (goods) from foreign countries making them more expensive to purchase. However, it led to foreign counties being LESS willing to purchase American goods.
What is a foreclosure?
When a person takes out a loan to buy property (house, land, building) and they do not make payments, the property is taken away from them
This New Deal reform agency required banks to buy insurance that would protect their depositors up to a certain amount.
FDIC Federal Deposit Insurance Corporation
What is the novel that John Steinbeck wrote about the Great Depression and "Okies" migrating to California
Grapes of Wrath