us history: ww2 Flashcards
(108 cards)
deflation
decrease in general price of goods and services
price support
gov would buy surplus crops at guaranteed prices and sell them on world market
credit
borrow money now and repay it later
Alfred E. Smith
career politician, governor of NY, opponent for president
Dow Jones Industrial Average
measure based on prices of stocks of 30 largest companies, stock market health
buying on margin
pay small % of stock price as down payment, borrowing the rest
black tuesday
October 29th, stock prices fell sharply
great depression
1929-1940, economy in severe decline, millions of people unemployed
hawley-smoot tariff act
highest protective tariff, protection from foreign competition, had the opposite effect
shantytown
a neighborhood in which people live in makeshift shacks, “hoovervilles”
dust bowl
Kansas, Colorado, NM, Nebraska, Dakotas, Oklahoma, TX, drought hit great plains, more than 7 yrs
direct relief
giving money/food by government directly to people, NYC=2.39 weekly per family
Herbert Hoover
president during the great depression
boulder dam
-construction of a dam on Colorado river
-finance it by using profits from sales of electric power that dam generated
-agreement on water rights, river basin
-made jobs “American pyramid”
federal home loan act
-1931
-lower home mortgage rates and allowed farmers to refinance loans
reconstruction finance corporation
-1932
-provide emergency finance to banks
-life insurance
-companies, railroads, large business
-trickle down to average citizen
-business failures continued
bonus army
-ww1 vets and families in DC=bonus expeditionary force
-supported patman Bill=bonus to vets who hadn’t been compensated
-hoover disbanded them
-he thought they were communists
what action did Hoover take to remedy the depression?
-gov agencies
-indirect relief through states
-no federal money for direct help, believed it would damage public morale
why was Hoover reluctant to help?
-believed that aid would cause people to lose their incentive to work
Franklin Delano Roosevelt
-2 term governor of NY
-cousin of former president Theodore roosevelt
-“can do” attitude=victory
New Deal
-program to alleviate problems from depression, financial reform
Glass-Steagall
-1933 law
-established fed deposit Insurance corp to protect bank accounts
Federal Securities Act
-may 1933
-corporations must provide complete info on all stock, liable for misrepresentations
-no “rigging”
Agricultural Adjustment Act (AAA)
-raise crop prices by paying farmers to leave a certain amount of lands unplanted, lowering production