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How was everyone trying to get rich?
By buying stock.
What did a steep rise in stock prices lead to?
It led to many people investing heavily in the stock market.
What does buying stock "on margin" mean?
It means that investors borrowed money to buy the stock.
What happened on Tuesday October 29, 1929 as a result of selling more stock?
The stock market crashed.
What happened as the nation fell into a severe economic crisis known as the Great Depression?
Business slowed and we produced less goods and services.
What were 3 signs of weaknesses even before the stock market crashed?
What was the borrowed money that fueled the economy in the 1920s bad in the long run?
Why did foreign countries purchase less US goods?
That's because we raised tariffs and bought less foreign goods. Foreign countries responded by raising their own tariffs, therefore buying less US goods.
What other issues did Americans face besides becoming unemployed?
Hoover thought the economic crisis was temporary, so he reacted by…
When Hoover agreed to come federal spending, why was it too late?
What kinds of conflict arise from the Bonus Army's march to D.C?
Bull Market
The market condition when prices continue to rise.
What was it called when businesses produced too much?
Surplus
What did the firing of workers in response to the over production of goods lead to?
A national unemployment.
Why did "buy now, pay later" become an issue?
Because of over-production and unemployment.
What did bankers during the 1920s make to businesses and individuals?
Unwise loans
Since many people used the money to invest in stocks, what would happen if the businesses failed, or if the value of the stocks went down?
The people who had borrowed the money would not be able to repay the loans.
What would happen to your money if other borrowers couldn't pay back their loans?
The money the banks had loaned would be "lost".
Speculators
People who made high-risk investments in the hope of making money.
What's "buying on margin"?
Borrowing most of the money needed to invest.
What are 3 things that happened days before the stock market crashed on Oct 29, 1929?
What is 10/29/29 also known as?
Black Tuesday
What happened to your money if you invested it in the stock market & to the banks that lent people and businesses money to invest in the stock market?
You both lost the money.
What's the term for the thing that takes place when many depositors decide to withdraw their money at the same time, usually out of fear that the bank will collapse?
A Bank Run
What is a Hooverville?
A long whole shantytown that blamed Hoover for the terrible situation.
What did soup kitchens and bread lines do?
They offered free or low-cost food for people.
Which minority group suffered at a higher rate than other Americans?
African Americans
Who made very little money selling their fruits and vegetables, and had their income fall to their lowest levels?
Farmers
What did Hoover believe would keep the economy moving?
Rugged individualism
What did Hoover believe about the government during the Great Depression?
That it should not step in to help individuals, and that they should help themselves.
What did Hoover request Congress to set up in 1932 to make loans to businesses?
The Reconstruction Finance Corp
Who set up camps in Washington DC to demand early payment of a benefit they were owed?
Unemployed WW1 veterans
When the bonus marchers refused to leave, what did Hoover do that made it clear that he would not be reelected?
He called out the US military to break up the camps. They used tanks and tear gas, causing a baby to get killed, a child blinded, and some veterans injured.
5 qualities that made Roosevelt an effective leader
Details:
The Americans' love for Roosevelt helped him win the presidential election of 1932.
Details:
Roosevelt started off by helping restore the nation's banks to fix the economy.
Details:
Roosevelt began the New Deal to end the depression, and it ended up changing the face of the US dramatically.
Details:
Roosevelt's agencies provided help to people in many ways.
Details:
The AAA encouraged farmers to throw away good food.
Details:
The TVA proved to be a great success in many ways.
Details:
Congress had passed the NIRA to boost the economy by helping businesses regulate itself.
Details:
Roosevelt created agencies to avoid future banking crises and to rebuild confidence in the stock market.
Who was the first First Lady to give lectures, radio broadcasts, write a daily newspaper column, and speak out on behalf of African Americans?
Eleanor Roosevelt
What was Roosevelt's New Deal and what 3 things was it meant to do?
What was the 1st step in the New Deal and why?
What was the second step of the New Deal and what did FDR do in the first 100 days of his administration?
CCC - Civilian Conservation Corps
18-25 year old guys get jobs and send money home to their families.
AAA - Agricultural Adjustment Administration
Government pays farmers not to farm.
TVA - Tennessee Valley Authority
Government runs a hydroelectric power plant.
FERA - Federal Emergency Relief Program
Gave direct relief to those who needed it.
WPA - Works Progress Administration
Provided as many as 10 million jobs for men, women, and youths in building projects, and professions like artists, writers, and teachers.
New Deal programs such as the CCC and the WPA were primarily intended to help…
the unemployed.
FDIC - Federal Deposit Insurance Corp.
Insurance for the money you put in banks.
SEC - Securities and Exchange Commision
Watchdog agency for the stock market.
What did FDR set up in his second New Deal?
Social Security
What was FDR's greatest mistake?
Packing the Supreme Court
Why did FDR pack the Supreme Court?
Because they kept declaring his programs unconstitutional.
Results of packing the Supreme Court:
Why did some people support the New Deal?
Why did some people oppose the New Deal?
Pro-New Deal people thought it…
Anti-New Deal people thought it…