Roaring 20s
What does it mean to "buy on the margin"?
To borrow money to purchase stocks, with the hope of making a profit later to pay back your debt. This only works if prices keep going up.
What do we call FDR's plan to add Supreme Court Justices to the Supreme Court?
Court Packing
BONUS: Why did he want to pack the court?
What role did Herbert Hoover think government should play in the economy?
He thought that government should stay out of the economy (not intervene)
What was The New Deal?
A system of programs and reforms put into place by FDR to help the American economy.
What do we call it when people kept buying things, even when they didn't need them?
Consumerism, or "Conspicuous Consumption"
Why were people afraid of letting FDR add Supreme Court Justices?
He would only choose those justices who agreed with him, which would threaten their independence (they wouldn't think for themselves, just agree with him)
BONUS: This is a threat to what Constitutional idea?
What was one major cause of the Stock Market Crash of 1929?
"Buying on the margin" - borrowing money to pay for stocks.
What was the CCC and what was its purpose?
"Civilian Conservation Corp" - helped America's environment by planting trees to stop blowing soil, and making paths and lodges in parks to improve conditions. Planted millions of trees.
What was the Great Migration?
The migration of African Americas from the South to the northern industrial cities for jobs.
Was FDR successful in adding Supreme Court Justices to the court?
NO - Congress gets to control how the courts are set up, and it said no.
What was one behavior by consumers that led to the Great Depression?
Buying lots of items they couldn't afford on installments or credit.
What was the WPA and what was its purpose?
"Works Progress Administration." It put people back to work building infrastructure (roads, schools, power plants, post offices, etc.)
This was one result of the Great Migration.
The spread of African American Culture - The Harlem Renaissance.
BONUS: Name a famous poet of this movement?
These two Italian anarchists were tried for murder and eventually executed, even if they were not necessarily guilty.
Sacco and Venzetti
What happened to farmers in the mid-west during the Great Depression?
The Dust Bowl - many farmers lost their farms and had to move west towards California to find work.
What was the SSA and what was its purpose?
BONUS: Does this still exist?
Name two ways conditions changed for women.
(1) Gained the right to vote (19th Amendment)
(2) Gained greater social freedoms - short skirts, short hair, out without their parents, drank more, expressed sexuality.
This Supreme Court case limited the right to free speech during wartime.
Schenk v. US
What were the people who moved from the mid-west to California because of the Dust Bowl called?
Oakies.
What did the Supreme Court do that held back The New Deal?
It kept invalidating programs, finding them unconsititutional.
What was one reaction to increased migration from Southern Europe and Eastern Europe?
Quotas limiting immigration.
Name one law Schenk was accused of violating?
The Sedition Act or The Espionage Act (both are correct answers)
What was the name of homeless encampments made up of handmade shacks that appeared all over America?
Hoovervilles
What are the differences between Relief, Recovery, and Reform?
Relief - immediate programs to help stop the economic free fall (Bank holiday, putting people back to work)
Recovery - building confidence to help people purchase again (CCC - gave parents money to start spending again, FDIC - gave people confidence in banks again)
Reform - Making changes to make sure nothing like this happens again (Securities and Exchange Commission put rules on the types of stocks that can be offered and how truthful sellers have to be)
What do we call the passage of the 18th Amendment?
Prohibition
BONUS: Why did Prohibition fail?
BONUS BONUS: What amendment repealed Prohibition? (the 21st!)
What do we call it when the Government does not intervene in the economy?
Laissez Faire or "Hands Off"
What does it mean when there is a "run on a bank."
That people rush to take their money out of the bank in cash, and when the cash runs out, the bank closes because it cannot pay back its customers.
Name two New Deal programs that are still in place today?
- Social Security Administration
- FDIC
- Fair Labor Standards Act
- Securities and Exchange Commission