Chapter 7

Great Depression

An overextension of credit and spending, stock market crashing, tendencies of most nations to erect tariff barriers in attempt to protect domestic economies and loans from the U.S. Europe ended while they were recovering from WWI were leading causes

Business Cycle

Expands the periodic growth and contraction of the economy

Herbert Hoover

An accomplished public servant ran the White House and overcame obstacles and graduated from Stanford University

Stock Market Speculation

Picking stocks without any information or borrowed money to get a quick profit

Stock market crash (black Tuesday)

The bottom fell out and 16 million shares were sold and the stock market collapsed

Hawley Smoot Tariff

Raised taxes on foreign imports to such a level that the foreign goods could not compete in the American market

Monetary policy

Controlled by the Federal Reserve system and manipulates the money supply and/or interest rates

Federal Reserve

Constricted the money supply when it increased interest rates

Franklin Roosevelt

Elected by quaranteeing the New Deal. A foundation for sustained and stable economic growth

New Deal

The government would play an active role in providing relief, recovery and reform form the Great Depression

• relief was immediate help for the poor

• Recovery fixed the economy

• Reform correct the issues with the economy and poverty

Hooverville

Improved hosing and squatted on property thye did not own, lik parks or vacant lots

Bonus Army

By 1932 the veterans wanted to get the bonus early because they needed the money\. The protesters did not get the bonus and were eventually forcefully removed by the US Army in a violent confrontation that left 2 people dead

National Recovery Administration

Suffered collaboratively with people from both the business side and the workers side set prices for consumer goods, production levels for companies, wages and hours for employees

New Deal Relief to help unemployment- Civilian Conservation Corps

Focused on restoring the US by addressing unemployment and maintaining America’s natural resources

New Deal Relief to help unemployed- Works Progress Administration

Provide jobs for millions of Americans while improving the nations infrastructure and enriching its cultural landscape

New Deal Reforms to help Elderly- Social Security Act

Provide financial aid to the disabled, elderly and unemployed, old age pensions were created to provide workers age 65 or older with continuous income

New Deal Reforms to help Farmers- Agricultural Adjustment Act

Reduced the amount of crop farmers could grow and raised prices in attempt to restore farms

New Deal Reforms to help Investors- Securities Exchange Commission

• Restore public trust in the financial market and set reforms

• Required publicly traded companies to disclose accurate info

• Enforce rues against insider trading and fraudulent practices, holding individuals and corps accountable for misconduct

• Oversaw stock exchanges

New Deal Reforms to help investors- Federal Deposit Insurance Corporation

Have people trust the bans and if the banks failed they wouldn’t lose their money use to insurance

New Deal Reforms to help Laborers- Wagner Act

Address widespread labor unrest and economic inequality by promising workers the right to bargain collectively, organize and engage in strikes

Frances Perkins

The first female cabinet member and secretary of labor. She helped establish social security and ended chid labor and established a minimum wage

Black Cabinet

African Americans leaders were unofficial advisers

Indian New Deal

Gave Indians economic assistance and greater control over their affairs. Also built new schools and hospitals

Welfare State

A government that assumes responsibility for providing welfare for children, the poor, elderly, sick, disabled and unemployed

Fireside Chat

A series of radio addresses delivered by Roosevelt