| A | B |
|---|
| What is trickle-down economics? | idea that wealth would trickle down from upper class to middle and lower class |
| Who did the trickle-down policy benefit? | Big business and wealthy |
| What was the hope that the trickle-down policy would do? | create more jobs, better factories, higher wages, tax cuts for businessess |
| What is speculation? | risky investment that would create quick, large profit (real estate and stocks in 20's) |
| Define laissez faire | "hands off; The idea that government should leave business and banks alone, government should not get involved |
| What are some key Republican economic policies that leading to Grt Depression? | Domestic policies: Pro-business, trickle-down (didn't work, wealth did not reach middle,lower income people) |
| What are some key international economic policies that led to depression? | continue to give money to European countries after WW2, high tariff (taxes) on imported goods, esp in Europe |
| Unchecked Stock speculation contributed to Grt Depression, what is it? | led to Depression by creating too many houses for buyers; idea that stock market had no limits and companies continue to have a profit |
| What does Stock speculation mean? | led to inflated price (higher than actually worth) |
| When did the Stock Market crash? | Black Tues., Oct. 29, 1929; 16 billion |
| What happened when the Stock Market Crashed? | Investors started selling huge amounts of stocks, prices dropped which caused more people to continue to sell |
| What happened due to the weak and unregulated banks? | 25% of banks collapsed; other loans defaulted; unemployment rose; banks could not replace depositors $ |
| Why did the banks collapse? | banks loaned too much money; it was uninsured; stocks were bought on credit |
| What happens when goods are overproduced? | high consumer demand, production increases, prices drop |
| What caused the decline of the farming industry? | farmers borrowed money for new machines, increased production, prices dropped, they couldn't pay back loans; foreign demand for crops declined |
| What happened as a result of a decline in farming industry? | Farmers lost their farms and homes; this also hurt banks because couldn't pay back loans |
| What is the dust bowl? | drought and overharvesting of soil caused soil to turn to dust |
| Where did the dust bowl take place? | Mid southwest states, including KS |
| How many farms lost because of dust bowl? | 1 million between 1930-1934; others left farms; lived in shacks (hoovervilles) |
| What is the unequal distribution of wealth? | 1% of people had 59% of wealth; 60% lived below min. level to feed families; gap tween rich and poor increased |
| What happened as result of unequal distribution of wealth? | Wages kept low; workers lost jobs; people fell deeper into debt; unemployment rose to 23.5% |
| What five farming practices happened after dust bowl? | crop rotation, shelter belts, irrigation, terracing, stubble mulch |
| What is stubble mulch? | leaving some stalks on the surface of field to prevent erosion |
| What are shelter belts? | planting a line of trees to block the wind and reduce blowing soil |
| What is terracing? | creating ditches to go with contour of land to collect water to be used for irrigation practices |
| What is crop rotation? | planting different crops each season to maintain the health of the soil |
| What are conservative economic practices? | tax cuts for wealthy, trickle-down policy, charities will take care of poor, economic policies are "natural business cycle" |
| What are liberal economic practices? | increase taxes to wealthy and buisinesses, direct federal relief to poor, gov't spending will get economy moving, provide aid to farmers |
| What are radical economic practices? | redistribute wealth among the poor, guarantee employment to all, fedr'l gov't should own all business, organize cooperatives for farmers to eliminate competition |
| What is the New Deal? | FDR's plan to end the Grt Depression, dramic gov't reforms, created new agencies and fedr'l power |
| What is criticism of New Deal? | too much gov't intervention, increased fedr'l debt, farm subsidies didn't help farmers; didn't really help economy much |
| Questions that arose because of New Deal? | was it enough help for minorities? Was it unconstitutional? Did it provide enough help to elderly? |
| Was New Deal effective? | decresed unemployment a little; subsidies helped farmers a little; decreased business failures; increased some confidence in banks |
| New Deal effective con't? | aided millions of Americans, Gross Nat'l Product grew |
| New Deal did...: | increased regulation and rules for stock market, bank, businesses |
| Emergency Banking Relief Act | insured money to US banks |
| National Industrial Recovery Act | spent 3 billion on public works projects = JOBS |
| Federal Emergency Relief Administration | gave $500 million in grants to unemployed |
| Civilian Conservation Corp | gov't work program that employed people in nat'l parks |
| Tennessee Valley Authority | built dams along TN river providing electricity and JOBS |
| Social Security | fedr'l aid to elderly, disabled, children, unemployed paid by employment taxes |
| Agricultural Adjustment Act | provided subsidies (money) to farmers |
| Support of Labor Unions and Workers | established minimum wage; increased overtime pay; eliminated child labor; right to strike, bargain collectively |
| Works Progress Administration | provided grants to artists and writers; employed 8.5 million, $1 billion for public works |
| What programs still exist today? | Social Security, farm subsidies, direct relief to poor through welfare programs, FDIC (for banks up to $100,000) |
