history ch 22-23 test

Economic Prosperity

The state of thriving economically, characterized by increased real wages, low unemployment, and high stock market prices.

Underlying Weaknesses

Problems within the economy that, while not immediately apparent, could lead to economic failure.

Overuse of Credit

The practice of buying goods on credit, resulting in high personal debts for many Americans.

Speculation

Risky financial behavior where investors buy stocks with borrowed money, inflating their value.

Overproduction

The condition where factories produce more goods than consumers can purchase, leading to job cuts.

Weak Farming Economy

The economic difficulties faced by farmers, including debt and low prices, which contributed to bank failures.

Wealth Distribution

The unequal accumulation of wealth, primarily within the upper classes during the 1920s.

Stock Market Crash

A sudden decline in stock prices, leading to massive financial losses for investors.

Black Tuesday

October 29, 1929, when panic selling caused stock prices to plummet, marking the start of the Great Depression.

Cycle of Failure

A sequence of negative economic events where reduced spending leads to further job losses and reduced consumer confidence.

Hawley-Smoot Tariff

A 1930 tariff that aimed to protect U.S. industries but led to reduced international trade.

Great Depression

A prolonged period of economic downturn during the 1930s characterized by high unemployment and widespread poverty.

Hoovervilles

Makeshift shantytowns built by homeless people during the Great Depression.

Bonus Army

A group of WWI veterans who protested in Washington D.C. demanding immediate payment of their bonuses.

New Deal

A series of programs and reforms instituted by Franklin Roosevelt during the Great Depression aimed at recovery.

Fireside Chats

Radio broadcasts by Franklin Roosevelt to communicate directly with the American public.

Brain Trust

A group of advisors to Franklin Roosevelt, composed of economists and experts to address the Great Depression.

Emergency Banking Act

A law that allowed government assistance to banks during the banking crisis.

Federal Emergency Relief Administration (FERA)

A New Deal agency that provided direct relief to the unemployed.

Civil Works Administration (CWA)

A New Deal program that provided temporary jobs in public works during the winter of 1933.

Tennessee Valley Authority (TVA)

A regional development program aimed at providing electricity and economic development in the Tennessee Valley.

National Industrial Recovery Act (NIRA)

Legislation that allowed industries to cooperate in setting prices and working conditions.

National Recovery Administration (NRA)

An agency created to oversee compliance with NIRA and promote fair competition.

Agricultural Adjustment Act (AAA)

A program designed to reduce crop production and raise farm prices.

Glass-Steagall Banking Reform Act

Legislation that established the Federal Deposit Insurance Corporation (FDIC) and regulated banking practices.

Securities and Exchange Commission (SEC)

A government agency created to regulate the stock market and protect investors.

Works Progress Administration (WPA)

A New Deal agency that employed millions of Americans through public works projects.

Wagner Act

Legislation that strengthened the rights of workers to organize unions and bargain collectively.

Social Security Act

A law that established a social welfare system providing financial assistance to the elderly and unemployed.

Criticism of the New Deal

Opposition claiming that Roosevelt's policies increased government control and deficit spending.

Supreme Court Challenges

Judicial reviews that invalidated aspects of the New Deal legislation, citing unconstitutional powers.

Adjustment Act of 1938

Legislation that continued conservation payments to farmers under strict crop production guidelines.

Roosevelt Recession

An economic downturn in 1937 as a result of scaling back New Deal programs.