U.S. History Chapter 13 Knowt

study tool for ch. 13 quiz on friday...or monday

What fraction of the American workforce were farmers?

¼

Why did farmers increase their harvest during WWI?

To match the demand from WWI

What did many farmers do to expand their farms?

many took out loans to expand their farms

What happened to many farmers after WWI ended?

They were left with a surplus and couldn't pay their debts.

What was the result for many farmers after WWI?

Many lost their farms.

How much did industrial workers' wages rise during this period?

8%

By what percentage did corporate profits increase?

65%

What does buying on margin mean?

Buying stocks on credit with a loan from a broker

Who borrowed money from banks to buy stocks?

Brokers

What is speculation in the context of investing?

Placing money in high risk investments with hopes of making money

What significant event occurred on October 29, 1929?

The stock market collapsed (Black Tuesday)

What were two reasons the stock market crash hurt the banking industry?

1. Banks invested heavily in the stock market

2. Banks encouraged customers to buy stocks.

What is the business cycle?

The period of growth and decline of the economy.

What was the unemployment rate by 1933?

25%

What is a surplus?

When more goods are produced than sold

How can a surplus be reduced?

1. Decrease prices to sell more goods, leading to decreased profits and layoffs.

2. This decreases profits causing companies to decrease production and lay off workers

3. This causes unemployment to increase (Recession)

4. Leading to the Great Depression…

What was the Hawley-Smoot Tariff?

It raised taxes on foreign imports.

What was one consequence of the Hawley-Smoot Tariff?

European countries retaliated with tariffs of their own.

What were some causes of the Great Depression?

1. People borrowing on margin to invest in stocks

2. Banks investing heavily in stocks

3. Banks encouraging customers to buy stocks

4. Overproduction of companies; 5. Hawley-Smoot Tariff.

What were Bread Lines

lines where people lined up for handouts from charities.

Hoovervilles

Makeshift Shanty towns of tents and shacks built on public land or vacant lots. Ex: Hoover Blankets were newspapers, Hoover Flags were empty pants pockets turned inside out.

Tenant Farmers

Farmer paying rent to a landowner for farming his land.

What caused the Dust Bowl

Overproduction of crops in the great plains (from WWI)

Extreme drought

Okies - name given to farmers who fled the Dust Bowl

Red Cross

provided medical care and clothing

Salvation Army

set up soup kitchens

Repatriation

Local, state, and federal governments encouraging immigrants to return to their country of origin

What did Hoover believe in?

Hoover believed in Voluntary Cooperation:

• Businesses retain:

• Employment

• Wages

• Prices

(Wealthy give more to charity)

Localism

state and local governments provide relief and jobs

Public Works

Govt. funded building

projects. Ex: Hoover Dam

Bonus Army - 1932

WWI Vets demanding an early $1000 bonus promised

to them in 1945. (Adjusted Compensation Act)

Brain Trust

Expert advisors/professors selected

to FDR's cabinet

Black Cabinet

African American Brain Trust

(unofficial advisors to the President)

Fireside Chats

Informal radio broadcasts from

The White House by FDR

New Deal

Series of Gov. Programs intended to lift the country out of the Great Depression

FDIC (Federal Deposit Insurance Corporation)

Insured bank accounts up to $5000

AAA (Agricultural Adjustment Act)

Paid farmers to cut production and

raise crop prices

TVA (Tennessee Valley Authority)

• Built dams in Tennessee River valley

• Created Jobs

• Provided Cheap electricity

• Helped Flood control

CCC (Civilian Conservation Corps)

Employed young men on public works

projects (approx. 2 million)

FERA (Federal Emergency Relief Act)

Gave $500 million to states for relief

WPA (Works Progress Administration)

Created jobs in Public Works, arts,

and research (approx. 34,000)

Social Security Act

Pension system for retirees and

the disabled

NRA (National Recovery Administration)

Established minimum wage - 25 cents (mandated)

Why did FDR try to increase the # of supreme court justices from 9 to 15?

Since the president gets to select the justices, he would most likely choose justices that support his New Deal Plans.

Many opponents argued it would upset the Checks and Balances system of our government.