Term
| What were some signs of the prosperity of the 1920s? |
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Definition
| Average Americans owning cars, appliances, radios, speculating in the stock market |
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Term
| What were some reasons for U.S. economic prosperity of the 1920’s? |
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Definition
| mass production and assembly line techniques (Taylorism), European exports during and after WW1, |
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Term
| Approximately how many Americans owned stock in 1929 and what percentage of the population was it? |
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Definition
| 4 million Americans owned stock (3% of population) |
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Term
| What is / was stock speculation? |
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Definition
| Buying stock with the hope of selling later on to make a large profit (buy low, sell high) |
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Term
| What was the name of the Irving Berlin song that depicted the optimism of the 1920’s? |
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Definition
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Term
| What were some signs that the U.S. economy of the 1920’s wasn’t as strong as it was believed? |
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Definition
| Almost ½ population was living at or below the poverty line, 3 million farmers left farming because of the falling prices and overproduction |
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Term
| What political party controlled the White House from 1920 to 1932 and what was their approach to handling the economy? |
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Definition
| The Republicans. Their approach was “Laissez Faire” or “hands off” |
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Term
| Who was the presidential candidate in 1928 who said “We will soon be in the sight of the day when poverty will be banished from this nation”? |
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Definition
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Term
| What were the main issues in the presidential election of 1928? |
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Definition
| The economy and Democratic candidate Al Smith’s Roman Catholicism (his religion) |
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Term
| Who won the presidential election of 1928? |
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Definition
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Term
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Definition
| Stock is a share of a corporation. When people buy stock they become partial owners of a corporation. |
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Term
| What is the value of a stock based on ? |
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Definition
| demand for the stock and hopefully the profitability of the corporation |
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Term
| What was a major reason for the rising stock prices in the 1920’s? |
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Definition
| People were buying more and more stock and, like at an auction, as more people purchased stock the value of stock continued to rise |
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Term
| . Why were the rising stock prices of the 1920’s not realistic ? |
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Definition
| Stock prices rose because people continued to purchase stock; however, consumer demand was down and people were not purchasing products |
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Term
| What was buying on margin and why was it risky? |
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Definition
| Buying on margin is when people would purchase stock with a 10% down payment. The stock buyer believed they could pay back their loan after they sold their stock but sometimes stock prices fell |
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Term
| Was the stock market speculation of the 1920’s based on a level playing field? |
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Definition
| No. Wealthy investors frequently manipulated stock prices for their own gain |
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Term
| What were some of the practices that wealthy stock speculators engaged in that are now illegal? |
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Definition
| Pooling, Painting the Tape, Insider Trading |
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Term
| What was “painting the tape” in stock market speculation? |
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Definition
| Wealthy investors would pay journalists to print good things about a corporation or stock to lure in small investors |
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Term
| What was “pooling” in stock market speculation? |
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Definition
| Wealthy investors would agree to purchase a certain stock, raise its value to lure in small investors and then sell when the time was right and make huge profits |
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Term
| Aside from “buying on margin” what was another reason why banks and financial institutions were stressed during the 1920s? |
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Definition
| Consumers were purchasing appliances and other major products with borrowed money – installment buying was very popular |
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Term
| What was Black Tuesday , 29 October 1929? |
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Definition
| . The day that the stock market crashed. 16 million shares were sold and the average price was ½ of what the prices had previously been. Investors lost $30 billion which was the equivalent of 1/3 U.S. Gross National Product |
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Term
| How did the stock market crash of 1929 set in motion a chain reaction that started the Great Depression? |
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Definition
| When the stock market crashed in 1929 there were many bank failures because of the buying on margin and installment buying |
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Term
| Was the stock market crash of 1929 the main cause of the Great Depression? Explain. |
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Definition
| No. The stock market crash of 1929 was a catalyst for the start of the Great Depression |
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Term
| What were the main causes of the Great Depression? |
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Definition
Tariffs and war debt policies that cut down the foreign market for American goods
Crisis in the farm sector – DEFLATION
Availability of easy credit – no bank regulation
Unequal distribution of wealth – some people very rich , some very poor
Overproduction and underconsumption
POOR Government policy – no bank regulation , no stock market regulation , Hawley –Smoot Tariff (protective tariff ) |
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Term
| What happened to 9,000 banks between 1929 and 1932? |
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Definition
| They failed, went bankrupt |
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Term
| What happened after 9000 banks failed between 1929 and 1932? |
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Definition
| People lost their savings, their homes and businesses closed |
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Term
| What were some of the signs or Effects of the Great Depression ? |
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Definition
| massive unemployment, homelessness, hunger, poverty, hopelessness and depression |
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Term
| What was the irony of hunger during the Great Depression during the Hoover years? |
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Definition
| There was a surplus of food in rural areas but unemployed people in cities had no money $$$ to purchase food |
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Term
| What were some important parts of Herbert Hoover’s personal background that shaped his approach to solving the problems of the Great Depression? |
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Definition
| He was a self-made man who believed in rugged individualism and self-reliance. He believed that the government should not give hand-outs or direct relief |
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Term
| What was the French term to describe President Herbert Hoover’s philosophy of the government’s role in the economy? |
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Definition
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Term
| What is meant by pump-priming as it related to the New Deal? |
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Definition
| The New Deal would give people direct relief (welfare) in order to spend and create consumer demand to stimulate the economy |
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Term
| What is meant by deficit spending and how does it relate to the New Deal? |
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Definition
| It is when the government spends more than what it takes in. New Deal programs involved deficit spending. Also, showed FDR’s willingness to try anything to solve the problems of the Great Depression. |
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Term
| What other type of circumstance did FDR compare the Great Depression to and why was this important in understanding the New Deal ? |
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Definition
| Being attacked by a foreign enemy – the country should try anything to overcome the problem |
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Term
| How did FDR communicate directly to the people ? |
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Definition
| “Fireside Chats” on the radio |
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Term
| What was the time frame that most of the NEW DEAL programs were passed ? |
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Definition
| They were passed within the first 100 days |
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Term
| What did FDR mean by “direct, vigorous action” in his first inaugural address ? |
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Definition
| the government needed to act quickly to solve the problems of the Great Depression. |
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Term
| What institutions had to be revitalized in the first hundred days because they were so important to the economy? |
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Definition
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Term
| What was the Bank Holiday of FDR? |
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Definition
| The executive branch shutdown all banks in the U.S. and then audited them to make sure that they were safe so people could be confident to put their money back in them. |
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Term
| What were the 3 basic parts of the New Deal? |
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Definition
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Term
| What were some of the New Deal programs associated with Relief, Recovery and Reform? |
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Definition
Relief – F.E.R.A. – dole/welfare, AAA
Recovery – work programs-TVA,CCC, PWA, NRA, WPA
Reform – SEC, FDIC, AAA, Social Security |
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Term
| Who made the following quote: “ the only thing we have to fear is fear itself”? |
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Definition
| Franklin Delano Roosevelt |
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Term
| . What was the most successful work program of the New Deal and why was it successful ? |
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Definition
| WPA (Works Progress Administration). The program was successful because it was flexible and it gave everyone a job who was willing to work |
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Term
| Who was the critic of the New Deal who promoted a “Share the Wealth” program that was going to guarantee every family a $2000 annual income by taxing the rich? |
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Definition
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Term
| Who was the critic of the New Deal who promoted a $200 / month old age pension? |
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Definition
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Term
| Who was the critic of the New Deal who wanted FDR to nationalize the banking industry? |
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Definition
| Father Coughlin – the Radio Priest |
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Term
| How did FDR respond to Dr. Townsend, Huey Long, and Father Coughlin in the Second New Deal |
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Definition
| FDR offered more programs and he taxed the rich more aggressively |
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Term
Who made the quote below and what were they talking about?
“He certainly learned to understand what suffering meant in a way that he'd never known before, because he could understand how people could suffer in ways that he had not experienced. And I think that grew out of his polio experience.
And he certainly gained enormously in patience. That gave him some of the patience that was needed to meet the problems both of the New Deal and the war. I've heard people say to him that, "If we do this, we don't know if we will be successful," and I've seen my husband time after time say, "There are very few things we can know beforehand. We will try and if we find we are wrong, we will have to change.” |
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Definition
| Eleanor Roosevelt (FDR’s wife) on how FDR’s polio experience helped as president during the depression |
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Term
| What is shown on the right? [image] |
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Definition
| Ticker tape machine showing stock prices |
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Term
| Who is pictured below?[image] |
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Definition
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Term
| Who is pictured below?[image] |
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Definition
| President Franklin Delano Roosevelt |
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Term
| What was the nickname given to the shanty towns like the one shown below?[image] |
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Definition
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Term
| Why is the picture to the right important in understanding the Great Depression [image] |
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Definition
| People were losing hope and they were fearful |
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Term
| Why is the picture important?[image] |
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Definition
| It is only one of two pictures of FDR in a wheelchair |
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Term
| Why is the pamphlet on the right important in understanding the New Deal?[image] |
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Definition
| The New Deal employed actors and artists to employ them and entertain communities |
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Term
| What three critics of the New Deal are pictured below?[image] |
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Definition
| Dr. Townsend, Huey Long, Father Coughlin |
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