Key Concepts from Economic History Lecture

These flashcards cover key vocabulary and concepts from the Economic History lecture, focusing on important legislation, economic theory, historical figures, and events related to U.S. and Canadian economic history.

Agricultural Adjustment Act (AAA)

Part of the New Deal that aimed to limit overproduction of farm products and stabilize prices.

Anti-Trust Acts

Laws to prevent trusts (monopolies) and promote competition.

Anthracite Coal Strike

1902 United Mine Workers’ strike that ended with government intervention.

Bank of Canada

Canada’s central bank, founded in 1934, responsible for stabilizing the economy.

Bank Run

Mass withdrawals from a bank due to panic.

Bear Market

A market condition characterized by falling stock prices.

Bull Market

A market condition characterized by rising stock prices.

Civilian Conservation Corps (CCC)

New Deal program providing jobs for unemployed young men in conservation projects.

Civil Works Administration (CWA)

New Deal program providing temporary public jobs.

Clayton Act

Strengthened anti-trust laws and exempted labor unions and agricultural organizations from certain regulations.

Conglomerate

A large company owning multiple businesses.

Corporation

A large business that is legally separate from its owners.

Deregulation

The process of reducing government control over industries.

Dividend

Profit paid to stockholders.

Dust Bowls

1930s droughts that ruined farms in the U.S. and Canada.

Economic Downturn

A recession characterized by decreased spending, production, and unemployment.

Elkins Act

1903 act allowing the government to fine railroads for providing preferential treatments.

Family Allowance

Government payments to families with children.

Federal Deposit Insurance Corporation (FDIC)

Agency that protects bank depositors from losses when banks fail.

Federal Reserve Bank

U.S. central banking system controlling money supply.

Glass-Steagall Act

Legislation separating investment and commercial banking.

Great Depression

A severe global economic crisis lasting from 1929 to 1939.

Hepburn Act

1906 act that strengthened the Elkins Act by giving the government power to set railroad rates.

Hooverville

Homeless encampments during the Great Depression.

Interventionist

A person favoring government intervention in the economy.

Make-Work Project

Government jobs initiative to reduce unemployment.

Mixed Economy

An economic system combining private business and government involvement.

Monopoly

A market structure where a single company dominates an industry.

New Deal

Economic policies implemented by FDR in 1933 focused on government intervention for economic recovery.

Padlock Law

1937 Quebec act permitting closure of buildings promoting communism.

Plutocracy

Government by the wealthy elite.

Progressivism

Political attitude favoring reforms through government action.

Prohibition

Legal ban on alcohol from 1920 to 1933.

Public Assistance

Government aid for people in need.

Public Works Administration (PWA)

New Deal program that built large-scale public works projects.

Recession

A short-term economic decline.

Regulation

Government rules designed to influence the behavior of individuals and firms.

Relief

Aid for individuals in poverty or crisis.

Roaring Twenties

A period of economic prosperity and cultural change in the 1920s.

Robber Baron

Wealthy businessmen who exploited workers.

Scab

A derogatory term for someone who works during a strike.

Securities and Exchange Commission (SEC)

Agency that enforces laws against market manipulation.

Sherman Anti-Trust Act

The first U.S. law to combat monopolies.

Social Security

Government program providing retirement and disability benefits.

Social Programs

Government services designed to support citizens.

Square Deal

Theodore Roosevelt’s fair policy focusing on workers and businesses.

Stock Market

A marketplace for buying and selling company shares.

Stocks

Partial ownerships in a company with claims on its earnings and assets.

Subsidiary

A company controlled by another company.

Subsidy

Government payment to support an industry.

Tennessee Valley Authority (TVA)

New Deal program that built dams to provide hydroelectric power.

Welfare

Government aid for individuals in need.

Warren G. Harding

Administration was plagued by corruption, rewarded friends and political contributors with financially powerful positions. Allowed andrew mellon, treasury secretary, to dramatically cut taxes on the rich. Favoured isolationism and nativism, reducing immigration and imposing tariffs on foreign imports

John Maynard Keynes

• Influential economist; advocated a greater role of the government in the economy to regulate market fluctuations and protect citizens from the uncertanties of the boom and bust cycle

  • during recessions, the government should increase spending and cut taxes, leaving people with more money to spend or invest in the economy

  • during inflationary times, the government should decrease spending and raise taxes, leaving people with less money to spend and softening the "boom”

R. B. Bennett

Canadian PM criticized for inadequate response during the Great Depression.

Calvin Coolidge

U.S. president (1923-1929); promoted laissez-faire economics, low taxes, and minimal government intervention, leading to economic prosperity but also contributing to the 1929 crash.

Herbert Hoover

U.S. president (1929-1933); blamed for the Great Depression due to his reluctance to involve the government in economic recovery efforts. His policies encouraged volunteerism and self-reliance, which many criticized as inadequate during the economic crisis.

William Lyon Mackenzie King

Canada’s longest-serving PM, known for social welfare programs. He led Canada through World War II and implemented policies to support the economy during the Great Depression.

C. D. Howe

Canadian politician responsible for industrialization and economic planning, especially during WWII and post-war reconstruction.

Franklin D. Roosevelt (FDR)

U.S. president (1933-1945); led the country through the Great Depression and WWII, introduced the New Deal with social security, public works, and financial reforms.

Andrew Carnegie

Dominated U.S. steel industry

John D. Rockefeller

Founder of Standard Oil; monopolized the oil industry through aggressive tactics; later became a major philanthropist.

Henry Clay Frick

Ruthless steel executive and right-hand man of Carnegie; responsible for violently suppressing the Homestead Strike (1892) by hiring armed Pinkertons.

Homestead Strike (1892)

A major steel industry labor dispute; workers protested wage cuts at Carnegie Steel, leading to violent clashes with Pinkerton guards and state militia.

William Howard Taft

U.S. president who later became Chief Justice of the Supreme Court. Used the sherman antitrust act to force standard oil to split apart into 34 smaller independent companies. But he also agreed not to shut down bank securities affiliates (companies set up by banks to bypass restrictions that prevented them from trading in stocks and bonds), 

The Great Depression was a result of:

• unequal distribution of wealth and income

• unequal distribution of corporate power

• poor banking structure

• foreign balance of payments

• limited economic intelligence. 

 FDR’s New Deal & Keynesian Economics

In times of economic downturn, the government should spend money to create jobs and boost consumer demand. Public works projects (WPA, CCC) created jobs and increased demand. The government borrowed money to fund programs, stimulating economic activity. Social Security and unemployment benefits put money in people’s hands, boosting spending.

Laissez-Faire Policies Leading to the Stock Market Crash & Great Depression

Minimal regulation of banks & stock market led to speculation & risky investments led to the 1929 crash. Low interest rates by the Federal Reserve encouraged excessive borrowing & overexpansion. Tax cuts for the wealthy increased wealth gap, limiting consumer spending power. No safety nets (unemployment insurance, welfare) worsened the depression.