The Americans Ch 22
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the maintenance of a price at a certain level through government intervention.
an arrangement in which a buyer pays later for a purchase, often on an installment plan with interest charges
Alfred E. Smith
1928 Democratic Candidate for President. Ran against Hoover. Served 4 Terms as Governor of NY. Personable and enjoyed attention.
Dow Jones Industrial Average
a measure based on the prices of the stocks of 30 large companies, widely used as a barometer of the stock market’s health
an involvement in risky business transactions in an effort to make a quick or large profit
buying on margin
the purchasing of stocks by paying only a small percentage of the price and borrowing the rest
a name given to October 29, 1929, when stock prices fell sharply
a period, lasting from 1929 to 1940, in which the U.S. economy was in severe decline and millions of Americans were unemployed
Hawley-Smoot Tariff Act
a law enacted in 1930, that established the highest protective tariff in U.S. history, worsening the depression in America and abroad
a neighborhood in which people live in makeshift shacks
a place where free or low cost food is served to the needy
a line of people waiting for free food
the region, including Texas, Oklahoma, Kansas, Colorado, and New Mexico, that was made worthless for farming by drought and dust storms during the 1930s.
the giving of money or food by the government directly to needy people
1928 Republican Candidate for President. Won against Alfred E. Smith. Had never run for public office. Served under Harding and Coolidge. Quiet and reserved. Declared that America was closer to beating poverty than ever before
a dam on the Colorado River—now called Hoover Dam—that was built during the Great Depression as part of a public-works program intended to stimulate business and provide jobs.
Federal Home Loan Bank Act
a law, enacted in 1931, that lowered home mortgage rates and allowed farmers to refinance their loans and avoid foreclosure
Reconstruction Finance Corporation
An agency established in 1932 to provide emergency financing to banks, life-insurance companies, railroads, and other large businesses
a group of World War I veterans and their families who marched on Washington, D.C., in 1932 to demand the immediate payment of a bonus they had been promised for military service
What industrial weakness signaled a declining economy in the 1920s?
Loss of profits in key industries signaled a declining economy. Railroads, textiles, steel, lumber, mining, and housing all fell dramatically after World War 2, showing that the economy would eventually run out of money
What did the experience of farmers and consumers at this time suggest about the health of the economy?
It suggested that the health of the economy was failing. Farmers were losing their form of income, preventing them from being consumers. Other consumers were unable to adequately support their families preventing their participation in the economy. When people don’t have the ability to make enough money to spend, the economy drops causing a depression or recession
How did speculation and margin buying cause stock prices to rise?
Speculation and margin buying raised the stock prices because when people were unable to hold or pay off their stock purchases, companies raised the price of the stocks to maintain their profits. Raising prices also prevented some people from using the margin buying, because they didn’t have enough for the down payment or knew they would not be able to pay off the entire loan.
What happened to ordinary workers during the Great Depression?
One in four ordinary workers lost their jobs. The other three were forced into less hours, less pay, and poor working conditions. The ordinary worker suffered the most, not having any way to save money or get money back that was in the bank, no matter how little. They were forced to used soup kitchens and public aid to get food for their families. Others were forced into migratory jobs that forced their families to stay on the move from place to place following low paying jobs that barely made enough money to buy groceries.
How did the Great Depression affect the world economy?
American investors withdrew money from European stocks and markets. America imposed a tariff on imports, hoping to keep most business in American businesses. As a result, there were less exports leaving other countries and therefore less need for workers. Unemployment rates soared and markets in other countries crashed and failed as a result.
Causes of the Great Depression:
-tariffs and war debt policies that cut down the foreign market for American goods
-a crisis in the farm sector
- the availability of easy credit
- an unequal distribution of income
How did the Great Depression affect minorities?
Minorities were severely affected, as racism was still a major part of American Society. Many soup kitchens and public and private aid was shut off to minorities, particularly African-Americans. They could not only get jobs, but they often couldn’t get food either.
Why did so many men leave their homes during the Depression?
Many men left their homes because they could not cope with the inability to support their families and be the patriarch that society had long required. For some, watching their families suffer was more than they could handle. They became hoboes, trying to find work and then eventually giving up out of defeat and embarrassment.
How did the Great Depression affect women and children?
Many women starved to death instead of standing in bread lines with the men. Many couldn’t get jobs because people thought that the men should be working before women, especially married women. Children were often left without a school, so they too went to work, finding a place in sweatshops with bad working conditions, trying to make enough money to buy a meal. Others left home to “tour America,” looking for work, adventure, or just a way to keep their family from having one extra mouth to feed.
What were some of Hoover’s key convictions about government?
--Government’s role was to encourage and facilitate cooperation, not to control it
--opposed any form of federal welfare, or direct relief to the needy
--handouts would weaken people’s self-respect and “moral fiber.”
--The federal government should direct relief measures, but not through a vast federal bureaucracy
Why do you think people blamed Hoover for the nation’s difficulties?
People blamed Hoover because he refused to intervene and offer public assistance at the federal level for the needy. His refusal to offer federal funding or intervention to the local levels caused people to think they were still in their situations because of him.
What were some of the projects proposed by Hoover and how effective were they?
--Boulder Dam: provided jobs, water supply, electricity, and flood control; ineffective as a whole, but still in use today
--Federal Farm Board: allowed members to buy crops and hold them until prices rose; ineffective
--National Credit Corporation: helped larger banks loan money to smaller banks, ineffective
- --Federal Home Loan Bank Act: lowered mortgage rates and allowed for refinancing; still used today, prevented
- foreclosures on homes, farms, and businesses
--Reconstruction Finance Corporation: authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses ; too little, too late; ineffective
What did the Bonus Army want?
They wanted the approximately $500 each that they were owed for services performed in the Army during the war. They had initially been inadequately paid, and they wanted the money immediately, instead of 1945. Hoover and Congress denied their pleas.
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