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Great Depression


What was the Great Depression? Bad economic times from 1929 to World War II
What were 3 causes of the Great Depression? 1) Overspeculation in stocks, 2) Bank failures, 3) Hawley-Smoot Tariff
What is speculation? Buying something at a low price in the hope of selling it later at a profit
What is the largest stock market in the U.S.? New York Stock Exchange
What does it mean to buy stock on margin? Buy stock on credit
What started the Great Depression? The stock market crash
What is America's central bank? The Federal Reserve
What is inflation? Prices increase and the dollar buys less
What does the Federal Reserve do to stop inflation? Raises interest rates
What does the Federal Reserve do if the economy slows down? Lowers interest rates
What is a protective tariff? Tax on imports that is so high Americans cannot afford to buy foreign goods
What was the Hawley-Smoot Tariff? 1) Protective tariff, 2) Highest tariff rates in American history
Who was president when the Great Depression began? Herbert Hoover
What was Hoover's political party? Republican
What president started the New Deal? Franklin D. Roosevelt
What party was FDR? Democrat
What was the New Deal? FDR's program to end the Great Depression
What were "Fireside Chats"? FDR's radio talks
What were the 3 R's of the New Deal? Relief, Recovery, Reform
What did WPA do? Paid people to work on public works projects
Give examples of public works projects. Roads, schools, bridges, parks, dam, libraries
What did AAA do? Paid farmers not to raise crops and livestock in order to increase farm prices
What does FDIC? Insures bank deposits
What did the Social Security Act do? 1) Unemployment insurance, 2) Old-age pensions
What ended the Great Depression? World War II
What 3 rights did workers gain during the New Deal? 1) Right to form a union, 2) Right to strike, 3) Minimum wage
Created by: wzuger