1920's & 1930's Flashcards
(24 cards)
Hands off Economics
The south avoids interfering with the economy as much as possible
Overproduction
When the supply of a manufactured good exceeds demand
What event sparked the depression
When stock values dropped, investors decided to sell them before they were worth less. This created a large supply, lowering prices even further.
Migrant Farm- Workers
Workers that move from location to location in search of temporary work
Mortgage
Loan with a house as collateral
Dust Bowl
Hght winds create huge storms that blow soil and plants into the east
Recession
An economic low point
Depression
An extremely serious economic low
What 3 trends of the 1920’s helped lead to the depression
- Very little regulator of business
- Buying stock became a fad, thus ruining demand
- Investors were”buying on margin”: borrowing money to buy stocks
Black Tuesday
October 29, 1929, the day the stark market crashed
Collateral
Security for a loan
Foreclose
Taking a home when. mortgage payments cannot. G make
Why did Hoover favor Laissez Faire economics
- The gov interference will make people lazy
2. The gov will become too powerful
What were the two things that Hoover thought be depression would resolve through.
- Voluntary action from businesses charities
2. The natural rise and fall of the economy
Hoover flags
Empty turned out pockets
Hoover blankets
Newspapers
Hoovervilles
Shanty towns inhabited by people living in box shacks.
The Reconstruction finance Corporation
Loaned money to state and local government’s to hire workers for public works projects
Drought
A period without rain
Why did farmers moved to cities in California
They needed to find work after the dust bowl destroyed their crops
The New Deal
A series of reforms and organizations put in place by FDR to end the depression
Deficit Spending
Spending more than is taken on through taxes
Goals of the new deal
- Relief for unemployed
- Economic recovery
- Prevent future depression
How was much of the new deal paid for
Through deficit spending
