The Great Dippression Flashcards
(22 cards)
Economic Depression
economic decline characterized by high unemployment, low levels of production, and business failures
Social Welfare
govt. provided services
Drought
sustained period without water
Tariff
tax on imports
Court Packing
putting judges on court who will vote favorably by your side
New Deal
FDR’s way of getting America out of the Great Depression
Speculation
gambling stocks and bonds in the stock market
Dust Bowl
1930’s midwest America;lots of dust;no water;very little agriculture production
Great Depression
Very high unemployment, very low production, no jobs, lots of hunger. Combated by FDR New Deal
Abandoning Farms
leaving farms in Dust Bowl caused increase of population in California as people ran away
Causes of the Great Depression
1) Tariffs- hurt trade between USA and the rest of the world
2) Speculation- people borrowed money to play the stock market; couldn’t pay loans when it crashed
3) Bank Failure- Banks closed as people rushed to get their money out = no loans to business
4) Federal Reserve- Did not act properly to stop the Great Depression
Black Tuesday
stock market crashed; starting the Great Depression
Dust Bowl
Human Factor- farmers ruined by depleting soil of its nutrients;fled to California
Physical Factor-drought caused soil to dry up; turned to dust & sand; got blown elsewhere
Effects of the Great Depression
1) High unemployment. 2) People deported back to Mexico & Europe. 3) Gov. intervenes in the economy to create jobs programs
Impact of the Great Depression
Gov. goes from hands off to hands on. Takes on responsibility of caring for the people with welfare programs. Gov. intervenes in the economy
Constitutional Issues of the Great Depression
FDR tries to pack the Supreme Court by raising the number of judges from 9 to 13 so they will rule to his favor on his New Deal program. Seen by both parties as a power grab for the executive branch.
EFFECT: Distrust of FDR hindered passing of legislation to get to the USA out of the Great Depression
FDIC
Federal Deposit Insurance Corporation - gov. insurance deposits at banks up to $250,000 per account
SEC
Security & Exchange Commission - regulates the stock market and businesses
SSA
Social Security Administration - retirement savings
AAA
Agriculture Adjustment Act - raised by prices by manipulating supply/demand
TVA
Tennessee Valley Authority - built dams for electricity in Tennessee, Mississippi & Alabama
FHA
Federal Housing Administration - helps people get houses
