The Good, the Bad, and the Ugly Government Economic Policy!
Chop Suey
FDR and the New Deal
100
"Buy now, pay later"
What is easy credit?
100
Banks make profits on the difference between what they charge in ___ on loans and what they pay in ___ on deposits.
What is interest?
100
This is the type of government economic policy during the Coolidge and Hoover Administrations.
What is laissez faire?
100
This was the perfect storm of the Great Plains: Overproduction of the soil, plus windstorms, plus drought.
What is the Dust Bowl?
100
This created guaranteed income for the retired and disabled.
What is the Social Security Act?
200
Lower demand and greater supply equals
What are lower prices?
200
The magic of earning interest on interest over time
What is compounding (interest)?
200
This allowed commercial banks and credit unions to offer overlapping services, like stocks, bonds, and other investments.
What is deregulation?
200
The process where investors could borrow up to 90% of the stocks value
What is buying on margin?
200
Since it was established in 1933, no depositor has lost a penny of insured funds in saving accounts, checking accounts, or certificates of deposits (CDs).
What is the Federal Deposit Insurance Corporation (FDIC)?
300
The probability of upward mobility decreases in countries with higher income inequality.
What is the Great Gatsby Curve?
300
This is a commonly used measure of the health of the stock market.
What is the Dow Jones (Industrial Average)?
300
A tax on imported goods that led other countries to retaliate which caused global trade to collapse by 40%.
What is the Smoot-Hawley or Hawley-Smoot tariff?
300
When income leads to spending which leads to income which leads to spending which leads to income which leads to spending which leads to income which leads to spending which leads to income which leads to spending which leads to income which leads to spending which leads to income which leads to spending which leads to income which leads to spending.
What is the multiplier effect?
300
This promoted business development in the Appalachian Valley using hydroelectric power.
What is the Tennessee Valley Authority (TVA)?
400
This is what led to the stock market crash.
What is speculation?
400
It is easier to access funds in a checking account vs. a savings account. A checking account is more
What is liquid?
400
This shrank because the government refused to "bail out" banks (supply them with emergency reserves)---which lead to fewer loans, and thus fewer jobs, and thus lower incomes, so on and so forth...
What is the money supply?
400
When banks repossessed farmers' properties when farmers were unable to pay their loans.
What is foreclosure?
400
These are the "stock cops" that regulate and provide oversight of the stock market.
What is the Securities & Exchange Commission?
500
President Coolidge vetoed these efforts by Congress to buy farmers' excess crops
What are price-supports (bills)?
500
These are two investments to help save for retirement.
What is a 401(k) and IRA (individual retirement account)?
500
This is the central bank of the United States that can manipulate the money supply to stimulate or slow the growth of the economy.
What is the Federal Reserve (The Fed)?
500
When depositors rush to the bank @ same time to withdraw $, when banks can’t meet depositors’ demands for their $, and when many bank runs happen @ same time