Boom and Bust Test Questions

Black Tuesday (October 29, 1929)

The day the stock market crashed

Fordney-McCumber Act

the act that, in 1922, raised tariffs dramatically in an effort to protect American industry, but actually ended up hurting American farmers even more

Smoot-Hawley Tariff

One of Herbert Hoover's earliest efforts to protect the nation's farmers following the onset of the Great Depression. Tariff raised rates to an all-time high.

Laissez-faire

Policy that government should interfere as little as possible in the nation's economy.

buying on margin

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

John Maynard Keynes

British economist who argued that for a nation to recovery fully from a depression, the govt had to spend money to encourage investment and consumption

deficit financing

government policy of spending more money than it is able to bring in through revenues

Hoovervilles

Depression shantytowns, named after the president whom many blamed for their financial distress

F.D. Roosevelt

President during the Great Depression and creator of the "New Deal" and the Alphabet Agencies. Main goals were relief, recovery, and reform

Fireside Chats

informal talks given by FDR over the radio; sat by White House fireplace; gained the confidence of the people

New Deal

The name of President Roosevelt's program for getting the United States out of the depression, tried to restore capitalism and alleviate distress

Neutrality Acts

4 laws passed in the late 1930s that were designed to keep the US out of international incidents, initiated by growing threats and wars leading up to WWII

Warren Harding

1921-1923 Republican
"Return to normalcy", return to isolationism; Tea Pot Dome scandal; Prohibition

Herbert Hoover

1929-1933 Republican
"American individualism"; Stock Market Crash; Dust Bowl; Hawley-Smoot Tariff

Prohibition

the period from 1920 to 1933 when the sale of alcoholic beverages was prohibited in the United States by a constitutional amendment

18th Amendment

Prohibited the manufacture, sale, and distribution of alcoholic beverages

19th Amendment

Amendment to the U.S. Constitution (1920) extended the right to vote to women in federal or state elections.

WCTU

(Women's Christian Temperance Union) group organized in 1874 that worked to ban the sale of liquor in the U.S.

Henry Ford

1863-1947. American businessman, founder of Ford Motor Company, father of modern assembly lines, and inventor credited with 161 patents.

Calvin Coolidge

1923-1929, Republican
Fordney, membership in World Court, prevent war, limitation of armaments

The First 100 Days

Beginning of FDR's presidency where he and Congress worked out the New Deal to save the economy.

Alphabet Agencies

Nickname for the New Deal programs that were often referred to by their initials

CCC

Civilian Conservation Corps. It was Relief that provided work for young men 18-25 years old in food control, planting, flood work, etc.

NRA

National Recovery Administration: established and adminstered a system of industrial codes to control production, prices, labor relations, and trade practices

AAA

Agricultural Adjustment Administration: attempted to regulate agricultural production through farm subsidies; ruled unconstitutional in 1936; disbanded after World War II

TVA

(Tennessee Valley Authority Act) Relief, Recover, and Reform. one of the most important acts that built a hyro-electric dam for a needed area.

FERA

Federal Emergency Relief Administration: combined cash relief to needy families with work relief

Welfare State

A system in which the government takes responsibility for its citizen's social and economic needs.

"Boom"

A period of rapid economic growth in the 1920s, mass production, huge amounts of advertising, ability to have credit

"Bust"

a period of economic difficulty or depression starting in 1929, stocks markets crash, banks couldn't recover the money lent, people went bankrupt, extreme poverty