Great Depression !!

credit

an arrangement in which consumers agreed to buy now and pay later for purchases; often in the form of an installment plan (usually in monthly payments) that included interest charges

why did stocks bought on credit pose an issue during the stock market crash of 1929?

they couldn't sell the stock- it wasn't theirs because they hadn't paid it off, and they were just losing money by not being able to sell it

speculation

they buying of stocks on a chance of a quick profit, ignoring the risks

price support

programs where government would buy surplus crops at guaranteed prices and sell them on the world market; for key products such as corn, wheat, cotton, and tobacco

buying on margin

paying a small percentage of a stock's price as a down payment and borrowing the rest

daw jones industrial average

the most widely used barometer of the stock market's health. the Dow is a measure based on the stock prices of 30 representative large firms trading on the New York Stock Exchange

black tuesday

october 29th; the day prices in the stock market plunged and the nation lost confidence in the market; people tried to sell stocks quickly before prices went further down

herbert hoover

president during the great depression; believed in a limited role for the government and didn't want to disrupt capitalism/individualism

hawley-smoot tariff

highest protective tariff in US history; raised taxes incredibly high on goods being sold internationally; caused other countries to raise taxes back

agricultural industry/farmers

farmers overproduced crops, which led to them not being able to produce more crops; caused hawley-smoot tariff to be formed

hoovervilles

little towns consisting of shacks made up of scraps that people found; created when people could no longer afford their homes

bread lines

lines of people waiting to receive food provided by charitable organizations or public agenciesregiod

dust bowl

the region, including Texas, Oklahoma, Kansas, Colorado, and New Mexico, that was made worthless for farming by drought and dust storms during the 1930s; took away the one advantage that came from not living in a densely populated city

bank closures

everyone attempted to draw all their savings out of banks; banks were unable to support this and give people their money so they had to shut down; many people lost all their savings

direct relief

cash payments or food provided by the government to the poor; varied from city to city

voluntary cooperation

belief of hoover's that centered around people being willing to participate in society

unemployment

new program started during great depression that provided payments at a constant rate to those who were without a job because of the economy

psychological effects

suicide rate increased, marriage rate dropped; long-lasting effects include an retention of habits formed during this period