Prosperity and Depression Lecture Notes

These flashcards cover key concepts regarding the effects of World War I, the subsequent economic impacts, and the resulting political changes leading to the Great Depression.

What were some major cultural changes in Western society after World War I?

Changes in art, music, architecture, and literature reflecting new social and cultural values.

What was one of the significant economic effects of World War I on the United States?

The U.S. emerged as the world's leading economic power.

What period is referred to as the "Roaring 20s"?

A time of economic prosperity and cultural change following World War I.

What major economic problem occurred in the U.S. after the stock market crash of 1929?

The Great Depression, marked by falling wages, unemployment, and loss of production.

What was the effect of buying on margin in the stock market?

It increased stock prices but also risked greater losses for investors who borrowed money.

What was Black Tuesday?

October 29, 1929, the day when the stock market collapsed due to a massive sell-off of stocks.

What government response did President Herbert Hoover favor during the Great Depression?

A minimal government intervention in business affairs.

What did Franklin D. Roosevelt's New Deal aim to achieve?

To combat the Great Depression through public works programs and economic recovery initiatives.

Who was John Maynard Keynes and what was his economic theory?

A British economist who argued that increased government spending could help end economic downturns.

What was the Smoot-Hawley Tariff Act?

A 1930 law that imposed heavy taxes on imports, which led to retaliation by other countries and a slowdown in world trade.

How did extreme economic hardship affect political stability in Europe?

It led to the rise of extremist political groups and new governments in response to public unrest.

What major factor caused a slowdown in industry during the Great Depression?

Increasing unemployment and the inability of consumers to buy goods.