USH CH 22/23

About this deck

This deck includes 57 flashcards covering great depression, black thursday, crash, and related concepts. Use it to review key Economics ideas, focus on weak cards, and prepare for your exam with StudyLess.

1. 01

   Hoovervilles

   Shantytowns of homeless Americans, named in protest of Hoover's perceived inaction.

2. 02

   Speculation in the 1920s

   Buying risky stocks while gambling that they would eventually pay out.

3. 03

   Buying on margin in the 1920s

   Purchasing stocks with a small down payment and borrowed money.

4. 04

   "Paper profits" in the 1920s

   Stock values rose faster than company profits, so gains existed mostly on paper.

5. 05

   Declining industries before the Great Depression

   Mining, lumber, and coal industries declined as wartime demand wound down, increasing layoffs.

6. 06

   Farm crisis before the Great Depression

   Agricultural overproduction, falling crop prices, and farmers unable to repay loans.

7. 07

   Industrial overproduction before the Great Depression

   Factories overproduced by wide margins that did not match consumer demand.

8. 08

   Reliance on credit before the Great Depression

   Americans relied heavily on credit, and installment buying masked underlying financial weakness.

9. 09

   Public attitudes before the 1929 Crash

   Widespread optimism that the economy was strong and prosperity would last.

10. 10

    "Easy money" in the 1920s

    Low-interest loans, a culture of borrowing over saving, and little regulation.

11. 11

    Role of banks in 1920s investing

    Supplied loaned money for investing and used funds from customer accounts to invest.

12. 12

    Belief about stock market self-correction before the 1929 Crash

    Many believed the stock market would fix itself and opposed regulation.

13. 13

    Black Thursday (October 24, 1929)

    A massive sell-off began; 12.9 million shares traded; ~$11 billion lost.

14. 14

    Bankers' actions after Black Thursday

    Major bankers bought stocks, briefly stabilizing prices and falsely restoring confidence.

15. 15

    Black Tuesday (October 29, 1929)

    Total market collapse; 16.4 million shares traded; ~$14 billion lost.

16. 16

    Impact of the 1929 Crash on average Americans

    Savings were lost, consumer confidence collapsed, and spending declined.

17. 17

    Bank failures after the 1929 Crash

    Banks failed as loans went unpaid and customer savings vanished.

18. 18

    Hoover's philosophy on economic intervention

    Favored limited intervention and believed the economy would self-correct.

19. 19

    The Hawley-Smoot Tariff (1930)

    Raised tariffs to record levels to protect U.S. industries, leading to foreign retaliation and declining global trade.

20. 20

    Consequences of the Great Depression

    Mass unemployment, collapsed wages, families struggling to survive, breadlines, soup kitchens, and Hoovervilles.

21. 21

    "Stock fever" in the 1920s

    The spread of investing to ordinary citizens, with rising prices creating false confidence.

22. 22

    Causes and effects of the Dust Bowl

    Caused by severe drought plus poor farming practices; led to massive crop failures and families fleeing rural areas.

23. 23

    Hoover's philosophy of "rugged individualism"

    Belief that individuals, charities, and local governments should provide relief.

24. 24

    Hoover's trickle-down economics approach

    Aid prioritized banks and corporations on the assumption recovery would follow.

25. 25

    Erosion of faith in Hoover's leadership

    Perceived inaction eroded faith in Hoover's leadership and reversed his earlier landslide support.

26. 26

    The Tennessee Valley Authority (TVA)

    Built infrastructure projects in the Tennessee Valley.

27. 27

    Impact of the 1929 Crash on stockholders

    Investments were erased and stockholders faced immediate demands for repayment.

28. 28

    Hoover's reluctance towards federal aid

    Feared it would create dependency on government.

29. 29

    Boulder Dam (Hoover Dam)

    A massive hydroelectric dam on the Colorado River, authorized by Hoover, supplying electricity and water.

30. 30

    Context of the 1932 Election

    Occurred amid continued economic collapse, mass unemployment, and deep public dissatisfaction.

31. 31

    Franklin D. Roosevelt's "New Deal" promise

    Promised a "New Deal" with active federal involvement in recovery and reform.

32. 32

    Contrast between Hoover and Roosevelt in 1932

    Hoover emphasized stability and continuity; Roosevelt offered optimism and experimentation.

33. 33

    FDR's 1932 election victory

    Won an overwhelming electoral and popular-vote majority.

34. 34

    FDR's approach to experimentation

    Embraced experimentation, trying new programs and dropping ones that failed.

35. 35

    FDR's Fireside Chats

    Radio addresses speaking directly to the public to restore confidence.

36. 36

    FDR's expansion of executive power

    Increased the presidency's role in economic and social policy.

37. 37

    FDR's focus on empathy and public trust

    Worked to project empathy and rebuild public trust in government.

38. 38

    Goals of the First Hundred Days

    Provide immediate relief, stabilize the economy, and reform institutions to prevent future crises.

39. 39

    The Emergency Banking Act

    Stabilized banking by closing insolvent banks and restoring public confidence.

40. 40

    The Civilian Conservation Corps (CCC)

    Gave young men jobs on environmental and conservation projects.

41. 41

    Federal Farm Board actions

    Gave loans to farm cooperatives to stabilize crop prices, but overproduction continued.

42. 42

    Federal Home Loan Bank Act

    Created regional banks to support mortgage lending and reduce foreclosures.

43. 43

    Herbert Hoover's 1932 campaign message

    Defended limited intervention and warned that expanded federal aid threatened America.

44. 44

    FDR's family background

    Distant relative of Theodore Roosevelt and married Theodore's niece, Eleanor.

45. 45

    FDR's use of the "bully pulpit"

    Used assertively to direct the federal response to the Depression.

46. 46

    The Glass-Steagall Act and FDIC

    Separated commercial and investment banking and created the FDIC to insure deposits (originally up to $5,000).

47. 47

    Reconstruction Finance Corporation (RFC)

    Loaned federal money to banks and big businesses to prevent collapse, criticized for aiding institutions over individuals.

48. 48

    The National Industrial Recovery Act (NIRA)

    Regulated industry, set wages and hours, and recognized workers' right to unionize.

49. 49

    Lend-Lease Act and the New Deal

    NOT a New Deal law; it was WWII-era aid legislation.

50. 50

    Herbert Hoover's election in 1928

    Elected as a symbol of economic success and limited government.

51. 51

    Dismissal of warning signs before the 1929 Crash

    Economic warning signs were dismissed as temporary and bad news was ignored.

52. 52

    Democratic control of Congress in 1930

    Democrats took control of both chambers of Congress, ending Republican dominance.

53. 53

    The Bonus Army incident (1932)

    WWI veterans demanded early payment of bonuses; Hoover ordered their removal by the Army, using tear gas and cavalry.

54. 54

    The Agricultural Adjustment Act (AAA)

    Raised farm prices by limiting production and subsidizing farmers.

55. 55

    Consumer spending slowdown before the Great Depression

    Wages failed to keep pace with production, so consumer spending slowed.

56. 56

    Hoover's reliance on business self-regulation

    Relied on businesses to voluntarily maintain wages and employment without legal enforcement.

57. 57

    How did the Second New Deal support low-income Americans?

    Through higher taxes on corporations and the wealthy.

58. 58

    Which demographic groups received more aid under the Second New Deal?

    Black Americans, minorities, and immigrants, who had recently shifted to the Democrats.

59. 59

    What was the state of economic recovery after the First New Deal?

    Recovery was partial; production rose modestly but unemployment remained extremely high (about 17%).

60. 60

    What was the impact of relief programs like the CCC after the First New Deal?

    They provided short-term jobs and direct aid to millions.

61. 61

    What criticism did critics from the political left have of the First New Deal?

    They argued the First New Deal did not go far enough.

62. 62

    What did the Second New Deal embrace regarding the economy?

    It embraced regulation and permanent federal responsibility for the economy.

63. 63

    What was the purpose of the Works Progress Administration (WPA)?

    To create millions of jobs through public works projects.

64. 64

    What did the Social Security Act establish?

    Old-age pensions, unemployment insurance, and aid to the disabled.

65. 65

    What rights did the Wagner Act (National Labor Relations Act) protect?

    Workers' rights to unionize and bargain collectively.

66. 66

    What was the function of the Rural Electrification Administration (REA)?

    To expand electricity to rural areas.

67. 67

    What was the purpose of the Wealth Tax Act (Revenue Act of 1935)?

    To raise taxes on corporations and the wealthy.

68. 68

    What services did the National Youth Administration (NYA) provide?

    Job training and employment for high school and college students.

69. 69

    What is the primary function of Social Security?

    It is the program that pays benefits to Americans over age 65.

70. 70

    How did the New Deal impact public confidence in banks and financial markets?

    It restored public confidence.

71. 71

    What was the impact of New Deal programs like the WPA and CCC on jobs and relief?

    They provided jobs and relief to millions.

72. 72

    What lasting safety nets were created by the New Deal?

    Social Security and unemployment insurance.

73. 73

    What was the fiscal impact of the New Deal's mass spending?

    It produced a growing federal deficit, with large debt sustained by ongoing social programs.

74. 74

    Were the gains of the New Deal complete in the 1930s?

    No, unemployment stayed high and full recovery did not come until after World War II.

75. 75

    What criticism did the New Deal generate regarding government overreach?

    Critics claimed the increased regulation and taxes were extreme government overreach.

76. 76

    List key First New Deal laws.

    Emergency Banking Act, Glass-Steagall Act, CCC, TVA, AAA, and NIRA.

77. 77

    List key Second New Deal laws.

    WPA, Social Security Act, Wagner Act, REA, Wealth Tax Act, and NYA.

78. 78

    How did the initial successes of the New Deal affect public expectations?

    They raised public expectations and increased demand for stronger federal action.

79. 79

    What was the state of the banking system after the First New Deal?

    It was partially stabilized through the acts already passed.

80. 80

    What was the public reaction to the AAA raising farm prices?

    The destruction of crops caused public outrage.

81. 81

    What electoral success secured FDR a second term and paved the way for the Second New Deal?

    FDR won a 1936 landslide victory over Republican Alf Landon.

82. 82

    What was the primary shift in focus for the Second New Deal compared to the First?

    It shifted focus to long-term economic security rather than immediate relief.

83. 83

    What specific demographic group did the Second New Deal target with a permanent safety net?

    The elderly.

84. 84

    How did the Second New Deal address unemployment?

    It expanded work-relief programs for unemployed workers.

85. 85

    How did the Second New Deal aim to protect unions?

    It forced corporations to comply with federal labor regulations to protect unions.