Stock Market
What is Buying on Margin?
Buying stock at a reduced price with a guarantee to pay it back later
What is the Dust Bowl?
A ecological disaster of massive dust storms along the Great Plains that ruined crops, livestock, and living conditions
Who was President at the beginning of the Great Depression?
Herbert Hoover
What does the SEC do?
Watch the Stock Market from shady practices to avoid another crash
What did the WPA do?
What is Black Tuesday?
The day the Stock Market crashed (Tuesday, 10/29/1929)
What is "a Run on the Bank"?
When a large amount of investors want to withdraw their money from a bank at the same time. Leads to a financial collapse of banks.
What are Hoovervilles?
Shack/Tent Cities that would pop up in city parks and outer limits filled with homeless/unemployed. Named Hoovervilles to emphasize people's view of Hoover not doing much.
How does a Bank Holiday meant to help?
Banks can "reset". Get their accounts straight and make a plan on how to stay open. Also, government reviews each banks "soundness".
DAILY DOUBLE!!!
How does the FHA help banks?
Backs up loans to new homeowners so banks will be more confident to give out these loans to "higher risk" individuals
DAILY DOUBLE!!!
What were the results of the stock market crashing? Name 3
-$16 Billion Lost
-Many investors went broke
-16 Million Share sold in a Day
Where is the Dust Bowl?
The Great Plains (Oklahoma, New Mexico, Nebraska, Kansas, Colorado, North/South Dakota)
What did Roosevelt promise to focus on if elected?
Public Works project to offer employment and infrastructure to America
Why did Roosevelt do Fireside Chats?
To let the American people regularly know what government was doing to help. Fight against fear. "The only thing we have to fear is fear itself."
What got America out of a Great Depression?
WWII
(America became the main producer for Allied Forces = Jobs, New Businesses, Trade)
How did the crash effect everyday Americans who weren't connected to the Stock Market (Over 90%)?
Financial Institutions were tied to Buying on Margin loans. When they start to fail, people lose money, jobs, etc...
How were businesses and farms affected by Bank failure?
They had loans tied up to banks. With banks failing their loans were called due and many couldn't pay them. Also, banks weren't giving out new loans.
DAILY DOUBLE!!!
How was Elanor Roosevelt a important part of FDR's administration?
She was FDR's "eyes and ears". Touring the nation and helping FDR to know what successes and concerns were going on. Advocate for marginalized groups (Kids, People of Color, Women)
Put each 1st New Deal program in the correct R (Relief, Recovery, Reform)
Relief- CCC, TVA
Recovery- AAA, NIRA, TVA
Reform- FDIC, SEC, TVA
Put each 2nd New Deal Program in the correct R (Relief, Recovery, Reform)
Relief- WPA
Recovery- FHA
Reform- Social Security, FHA, REA
Why is the Stock Market risky? Name 2 specific reasons
-Stocks can be unpredictable, lots of variants go into success or failure (company image, rumors, technology, weather, quick sales of stock)
Why were farmers partially responsible for the Dust Bowl?
Farmers were plowing so much land that the soil was incredibly loose. Then the wind storms would pick up so much dirt, Dust Storms were created.
How was the Associative State supposed to help and why did it not gain support?
Businesses and government volunteer to work/help each other to keep open and provide jobs. Many businesses were struggling and felt the need to look out for themselves.
Which program was ruled unconstitutional and why?
NIRA (National Industrial Recovery Act)
Forced Businesses to work together to stop competition and price changes. Too controlling.
Why does Social Security help all of society and not just older people?
Families don't have as much financial burden on themselves to take care of the retired.