US history -Great Depression-flashcards

Stock market speculation

buying stocks on margin led to rampant speculation which led to falsely high stock prices.

Causes of the Great Depression

Impact of tariffs on the world trade-Smoot hawley tariff limited foreign trade and investment and were a barrier to European countries.

Bank failures

after the stock market crashed Americans grew to withdraw their money banks were not secure and the money in them was not insured.

The monetary policy

the federal reserve system in 1928 and 1929. The Fed raised interest rates to try to curb wall street speculation.

Widespread unemployment

by 1933 unemployment was at 25% . Manufacturers reduced production which resulted in less demand for labor and inability of consumers to continue making installment payments resulted in reduced production.

Homelessness

By 1933 1.5 million people were homeless.This resulted in the construction of shanty towns,called hoovervilles that were made of any materials that could be found.Homelessness also migrated as unemployed men(hobos) travelled by railroads.

Roosevelt promised to eliminate regulations on alcohol

allow for federal taxation to raise revenue. Now alcohol production and sales were legalized and taxable.

Overproduction and drought

resulted in the dust bowl

Human Factors

farmers misused the land by overplanting and not rotating crops.

People migrated from the region many to

California

A federal government was created

which promoted soil conservation.

Economic Conditions

Government intervention created jobs by instituting new programs such as the (TVA),(CCC),(CVA),(PWA),(WPA)

cause of migration

abandonment of forms located in the dust bowl.

effect of migration

increasing population along the west coast loss of jobs.

New Deal Policies

policies provide relief,reform and recover

policies provide relief,reform and recover

creating worker programs,reforming banking and business practices,instituting new government programs and promoting economic recovery.

Opponents to the New Deal argued what

that it overregulated businesses and restricted individual freedom.

President Hoover approved the creation of the Reconstruction Finance Cooperation (RFC) with

authorizing loans to large businesses that have suffered losses.

FDIC

Federal Deposit Insurance Corporation this government insurance of deposit accounts at member banks up to Provide stability to the banking industry.

SEC

Regulate the stock markets and businesses ensuing against fraud.

SSA

Social Security Administration-Provide income to elderly Americans.

The new deal

-provided relief reform and recovery creating new working programs,reforming banks and businesses instituting new government programs

In 1932 President Hoover approved

Reconstruction Finance Movement authorizing loans to large businesses that suffered losses

FDIC

federal deposit insurance corporation-this government insurance of deposit accounts any member of the bank provides stability to the banking industry

SEC

security and exchange commission-regulated stock markets and businesses ensuring against fraud

SSA

social security administration-provide income to elderly americans