Questions and Answers
What are price supports related to?
What is credit?
An arrangement to buy now and pay later.
Who was Alfred E. Smith?
A Democrat against Herbert Hoover in the election of 1928.
What does the Dow Jones Industrial Average measure?
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What is speculation in the context of investing?
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What does buying on margin entail?
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What is Black Tuesday?
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What was the Great Depression?
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What did the Hawley-Smoot Tariff Act establish?
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What caused railroads to lose business?
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What happened on October 29, 1929?
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The causes of the Great Depression included ___ and ___ policies.
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What is a shantytown?
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What is a soup kitchen?
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What is a bread line?
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What was the Dust Bowl?
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What is direct relief?
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Who was Herbert Hoover?
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What is the Boulder Dam?
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What were Hoover's actions during the Great Depression?
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What did the Federal Home Loan Bank Act do?
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What did the Glass-Steagall Banking Act accomplish?
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What is the Reconstruction Finance Corporation?
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What was the Bonus Army?
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What was the Patman Bill?
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Study Notes
Price Supports
- McNary-Haugen bill aimed to provide subsidies by the federal government for key products like wheat, corn, cotton, and tobacco to maintain producer prices.
Credit
- Arrangement enabling consumers to purchase items now and make payments later, fostering consumer spending.
Alfred E. Smith
- Democratic candidate in the 1928 presidential election; lost to Republican Herbert Hoover.
Dow Jones Industrial Average
- Widely recognized indicator of stock market health; based on stock prices of 30 major firms on the New York Stock Exchange.
Speculation
- Involves purchasing stocks and bonds with the expectation of quick profits, disregarding associated risks.
Buying on Margin
- A practice where investors pay a fraction of a stock’s price upfront and borrow the remainder, increasing investment risk.
Black Tuesday
- October 29, 1929, marked by significant drop in stock prices, signifying the start of the Great Depression.
Great Depression
- Global economic downturn beginning with the 1929 stock market crash, leading to low production, high unemployment, and a crisis in confidence in economic self-regulation.
Hawley-Smoot Tariff Act
- Established the highest protective tariff in U.S. history aimed at protecting American producers but resulted in detrimental effects on international trade.
Transportation and Energy Shifts
- Railroads lost business to trucks, buses, and cars; coal mining faced competition from hydroelectric power, fuel oil, and natural gas.
October 29, 1929
- Date of the stock market crash, resulting in an estimated $30 billion loss for investors.
Causes of the Great Depression
- Factors included tariffs and war debt limiting foreign markets, agricultural sector crises, easy credit access, and income inequality.
Shantytown
- Areas composed of makeshift homes built from scrap materials, reflecting the struggles of the impoverished during the Great Depression.
Soup Kitchen
- Facilities providing free or low-cost meals during economic hardship.
Bread Line
- Queues formed by those seeking food distributed by charity or public service organizations.
Dust Bowl
- A severe drought in the 1930s impacting the Great Plains leading to environmental degradation and widespread dust storms.
Direct Relief
- Initial government aid in the form of cash payments or food that was largely unavailable during the early years of the Great Depression.
Herbert Hoover
- President from 1929 to 1933; faced the aftermath of the stock market crash and implemented various measures during the Great Depression.
Boulder Dam
- Also known as Hoover Dam, built to create jobs and provide water and hydroelectric power.
Hoover's Actions
- Supported the Federal Farm Board to stabilize crop prices and initiated measures to bolster the banking system through the National Credit Corporation.
Federal Home Loan Bank Act
- Legislation aimed at reducing mortgage rates and enabling farmers to refinance loans to prevent foreclosure.
Glass-Steagall Banking Act
- Law enacted to separate commercial from investment banking, with the intent to mitigate the risks of financial crashes.
Reconstruction Finance Corporation
- Gave authorization for up to $2 billion in emergency funding to stabilize large financial institutions, but was criticized for not aiding average citizens.
Bonus Army
- Group of World War I veterans led by Walter Waters, who marched to Washington, D.C., advocating for the passage of the Patman Bill.
Patman Bill
- Proposed legislation to permit the government to pay veterans a bonus for their service; ultimately, it was not passed.
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Description
Test your knowledge with these flashcards covering key concepts from US History Chapter 14. Get familiar with important terms like price supports and credit, along with historical figures such as Alfred E. Smith. Perfect for students looking to reinforce their understanding of this pivotal era.
