Studied by 15 people
How does upward spiral work?
One person’s spending becomes income for another person, who can now spend more to add to the income of others
Greater Spening Power
More products being made
How does Downward Spiral work?
When things are going bad people spend less money resulting in less employment which also results in less spending
Overproduction
Profits Decrease
What causes peaks and troughs in an economic cycle?
When employment changes, the peaks and troughs often change
When did the stock market crash in 1929?
Oct. 29, 1929
Why did the stock market crash affect the entire economy?
The high stock prices led to a massive sell off (panic), then investors couldn't pay their loans back to the brokers, therefore the brokers could pay their loans back to the bank, and then the bank could not pay people their savings \n Poverty+Unemployment+Homelessness= Great Depression
How did FDR’s attitude and personality help ease the Depression?
He helped ease peoples fears, and give them hope
Compare FDR's liberal leadership to Hoover's conservative leadership
Hoover was elected with the idea of "laissez faire" which meant he was very hands off, but FDR wanted to get involved and help people get back on their feet
What are the positives and negatives about the government engaging in deficit spending?
Positives: Gets people back on their feet
Negatives: Contributes to the debt in America
What are the pro’s and con’s of the New Deal?
Pros- Income up, factories reopen, new jobs \n Cons- More strikes, american liberty league was Anti-FDR
What were the three R’s of the New Deal?
Relief, Recovery, and Reform
Compare the role of the government in the 1920’s to the role of the government in the 1930’s
In the 20's they believed in a conservative leader, should be hands off and let businesses do whatever, the 30's was the opposite
What were some of the new agencies created under the New Deal?
SSA-Social Security Administration \n WPA- Works progress administration \n CCC-Civilian Conservation Corps \n AAA-Agricultural Adjustment Administration \n TVA- Tennessee Valley Administration \n SEC-Securities and Exchange Commission \n FDIC- Federal Deposit Insurance Corp.
What are some of the services that the government provides today that it did not prior to the Great Depression?
The FDIC which insures you bank account so that you can't just lose all of your money, and the SSA which is social security for your retirement/ handicap
What are the pro’s and con’s of capitalism?
Cons- Monopoly power, big gap between wealthy and poor
Pros- Lower consumer prices, wages and living standards rise
Fascism (Totalitarianism)
Ultra- Nationalistic government led by one party repressive dictator
Absolute Monarchy (Totalitarianism)
Determined solely by the ruler (Emperor) (royal family)
Communism (Totalitarianism)
Economy/Government based on one party’s ideas and state ownership of property
Democracy (Pluralistic)
A government ruled by the people through elected leaders (Republic)
Parliamentary Monarchy (Pluralistic)
A government ruled by elected lawmakers,with a ceremonial king or queen
Pluralistic
Multiple leaders, shared powers, individual rights/Freedoms
Totalitarian
Central Government, single party, total control
How did the Treaty of Versailles lead to WW2?
It was tense between countries, losing countries were bitter
How was the Japanese culture different from the US?
Japan: Shintoism- required religion involving worship of many kami gods and ancestors, based on Honor
US: Cared much more about human lives
Adolf Hitler (Germany)
“The Fuhrer” (the leader), wrote Mein Kampf, Fascist, lead with fear and propaganda
Josef Stalin (USSR)
“Man of Steel” Communist, faked elections, got rid of his rivals, was a dictator, and ruled by fear
Hideki Tojo (Japan)
“Man of Steel” Absolute Monarchy, faked elections, got rid of his rivals, was a dictator, and ruled by fear
Benito Mussolini (Italy)
“11 Duce” (The leader), Fascist, ruined Italy
Winston Churchill (UK)
Parliamentary Monarchy
Roosevelt (US)
“FDR”, Democracy
What were Germany and Japan’s motives for taking over other countries?
Germany
Lebensraum (living space)
End Depression
Aryan Race
3rd Reich
Japan
Living space for Japanese
Resources for industrialization (Oil, Ore, Timber, Minerals, etc)
What did Great Britain try to do to stop the Germans? (Appeasement)
Gave them Czechoslovakia
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Flashcard (21)