Great Depression Causes
Prices of crops fell drastically because of this
overproduction, supply and demand
This is the name for using borrowed money to invest in stocks
Buying on Margin
TVA
Tennessee Valley Authority
The Bonus Army
Crowd of thousands that marched on D.C. to demand passage of the Patman Bill and immediate payment of $1000 bonus to WW1 veterans.
they invested on margin and did not have enough reserves to cover account withdrawals
This Index is one of the most widely used to meaure the performance of the stock market
The Dow Jones industrial Average (DJIA)
AAA
Agricultural Adjustment Act
Hoover's response to the Bonus Army
Called the protesters criminals and communists, called on McArthur and Eisenhower to lead a company of troops to disperse the crowd, some stayed behind and were tear-gassed. A few even died, including a baby.
Many individuals lost their unrealized wealth after this event in October 1929
Stock market crash
Run on the Banks
rush to withdraw savings deposits when people heard that banks were failing
CCC
Civilian Conservation Corps
Hoover won the 1928 election because
the economy was going great and people still agreed with conservative philosophies of laissez faire
Workers gained little headway in wage increases during the 20s because of this
anti union/red scare
laissez faire
cycle of downturn in the depression
low sales>job layoffs>less income>fewer purchases>lower sales
SSA
Social Security Administration
Hawley-Smoot Tariff
Raising taxes on foreign imports to help raise American prices...European governments retaliated by raising taxes on US imoprts, stressing our economy.
This natural disastar was caused partly by overfarming and led to greater poverty for many families
dust bowl
A stock market crash occurs when...
stockholders see others selling shares, so they panic and sell theirs, too, sending the values down
PWA
Public Works Administration
Hoovers actions in general were characterized by what
gathering business leaders together to discuss economic solutions...in other words, leaving business to solve the problem on their own without government interference. (Later, he did start some government programs, but they were too late).