Stock Market & Banking
Paying only 10% upfront and borrowing the rest to buy stocks.
What is buying on margin?
Factories produced more goods than consumers could afford.
What is overproduction?
In 1928, he claimed the U.S. was “nearer to the final triumph over poverty.”
Who was Herbert Hoover?
WWI veterans demanding early pensions.
Who were the Bonus Army?
October 29, 1929, when stock prices collapsed, is known as....
Black Tuesday
Farmers increased output after WWI, but demand fell and prices collapsed, this is known as.....
The Farm Crisis
A 1930 law raising tariffs to protect U.S. industry.
What was the Hawley-Smoot Tariff Act?
The nickname given to Shantytowns, in an effort to show disapproval of the president.
What were Hoovervilles?
A steady rise in stock prices
Bull Market
People stopped buying goods, leading to debt and farm foreclosures.
What is underconsumption?
What was the overall effect of the Hawley-Smoot Tariff on world trade?
Caused world trade to decrease by more than 40% leading to a worldwide economic depression
This person believed that Americans did not need help because of his belief in "Rugged Individualism" and that Americans could "pull themselves up by their bootstraps".
Who is Herbert Hoover?
3,800 institutions failed between 1931–32, wiping out savings.
What are bank failures?
Layoffs reduced spending which led to what?
More layoffs, which is the downward spiral of the economy
In 1931, this institution raised interest rates, shrinking the money supply.
What was the Federal Reserve?
This cheap escapism thrived despite economic collapse.
What was the movie industry?
Investors rushed to withdraw money, causing banks to run out of cash
What is a bank run?
A steady decline in stock prices
Bear Market
High tariffs stifled international trade and spread the Depression worldwide. Who is to blame?
Government's protectionist policies.
The name that was given to the environmental event that was caused by drought and poor farming practices .
What was the Dust Bowl?