Definitions
What is credit?
Name the economic system: no religion
Communism
Cause of the dust bowl.
Overusing farm land.
Who came up with the new deal?
FDR
What is the Great Depression?
A time of economic depression in the 1930s.
What is inflation?
Prices go up and value of money goes down.
Name the economic system(s): Motive of social welfare
What is an economic system and what is a political system?
Economic systems define how money is spent and circulated. Political systems define the type of government.
What were the two overarching purposes of the new deal?
To end the Great Depression and keep another one from happening.
Name 3 causes of the great depression.
industrial problems, speculation, and overuse of credit
What is deflation?
Prices go down and value of money goes up.
Name the economic system(s): Ability to oppress poor
Capitalism
States of the dust bowl
Kansas, Colorado, Oklahoma, Texas, New Mexico
What are the three R's of the new deal?
Reform, recovery, relief.
Where does a bank keep the money?
What are stocks?
Stocks are a portion of a company that are available to purchase.
Name the economic system(s): wealth is earned
Economic system and political system of the US.
Economic: Capitalism
Political: Democratic Republic or indirect democracy
Explain the purpose of each of the 3 R's.
relief for the unemployed and for the poor, recovery of the economy back to normal levels (businesses), and reform of the financial system to prevent a repeat depression.
Explain how someone can make money off of a stock.
A stock is a percentage of a company. If the company does well, your percentage stays the same, but the value of your percentage increases.
What is the law of supply and demand?
Demand goes up and supply goes down = price goes up. As demand goes down and supply goes up = price goes down.
Name the economic system(s): Also a political system
Socialism and Communism
2. Businesses can't pay employees
3. Businesses fire employees
4. Ppl can't buy things without income
5. prices goes down
Name two SPECIFIC acts of the new deal.
The Agricultural Adjustment Act (AAA), which boosted agricultural prices by offering government subsidies to farmers to reduce output.
The Civilian Conservation Corps (CCC), which employed young, single men at federally funded jobs on government lands.
The Federal Emergency Relief Act (FERA), which gave federal grants to states that funded salaries for government workers as well as local soup kitchens and other direct-aid to the poor programs.
The National Recovery Act (NRA), which sought to boost businesses’ profits and workers’ wages by establishing industry-by-industry codes that set prices and wages, as well as guaranteeing workers the right to organize into unions.
The Federal Deposit Insurance Corporation (FDIC), which guaranteed individuals that money they deposited in a bank would be repaid to them by the federal government in the event that their bank went out of business.
The Works Progress Administration (WPA), which employed millions of Americans in public works projects, from constructing bridges and roads to painting murals and writing plays.
The Wagner Labor Relations Act, which guaranteed workers the right to form unions
The Social Security Act, which required workers and employers to contribute—through a payroll tax—to the Social Security trust fund. That fund, in turn, makes monthly payments to retirees over the age of 65, as well as to the long-term disabled.
The Fair Labor Standards Act, which mandated a 40-hour work week (with time-and-a-half for overtime), set an hourly minimum wage, and restricted child labor.
Explain how speculation negatively impacted the economy in the Great Depression.
The demand for stocks rose the price of them, but it was a false representation of the actual health of the stocks and the businesses.