Chapter 8: The Great Depression

Herbert Hoover
1928; Republican; approach to economy known as voluntarism (avoid destroying individuality/self-reliance by government coercion of business); of course, in 1929 the stock market crashed; tried to fix it through creating the Emergency Relief and Construction Act and the Reconstruction Finance Corporation (didn’t really work)

speculation
Act of buying stocks at great risk with the anticipation that the price will rise.

Black Tuesday
October 29, 1929; date of the worst stock-market crash in American history and beginning of the Great Depression.

business cycle
Recurring fluctuations in economic activity consisting of recession and recovery and growth and decline

Great Depression
(1929-1939) The dramatic decline in the world’s economy due to the United State’s stock market crash of 1929, the overproduction of goods from World War I, and decline in the need for raw materials from non industrialized nations. Results in millions of people losing their jobs as banks and businesses closed around the world. Many people were reduced to homelessness, and had to rely on government sponsored soup kitchens to eat. World trade also declined as many countries imposed protective tariffs in an attempt to restore their economies. Herbert Hoover was blamed for the Great Depression.

Hawley-Smoot Tariff
(HH) 1930 , charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliatio, HIGHEST EVER

bread line
Lines of people waiting to receive food provided by charitable organizations or public agencies.

Hooverville
Shanty towns that the unemployed built in the cities during the early years of the Depression; the name given to them shows that people blamed Hoover directly for the Depression.

tenant farmer
Farmer who works land owned by another and pays rent either in cash or crops.

Dust Bowl
Parts of Oklahoma, Kansas, Colorado, New Mexico, and Texas that were hit hard by dry topsoil and high winds that created blinding dust storms; this area of the Great Plains became called that because winds blew away crops and farms, and blew dust from Oklahoma to Albany, New York.

Okies
Displaced farm families from the Oklahoma dust bowl who migrated to California during the 1930s in search of jobs.

repatriation
Efforts made by local governments and/or the federal government to encourage or make Mexican immigrants and their naturalized children go back to Mexico

localism
Policy relied on by president Hoover in the early years of the Great Depression whereby local and state governments act as primary agents of economic relief

RFC
Reconstruction Finance Corporation. Hoovers response to the Depression. Passed in January 1932, this measure loaned billions money to banks and insurance companies and Rail Roads, and provided funds for state and local programs providing economic relief.

trickle-down economics
Hoover’s strategy battling the Great Depression in which the money is given to the big corporations and eventually they will pay their workers more, and then the workers will spend their money and save the economy.

Hoover Dam
Largest federal relief program which Herbert Hoover initiated. A Dam built on the Colorado River. This was pump priming (Keynesian economics), giving people money easier, so they would put it back into economy.

Bonus Army
1932 – Facing the financial crisis of the Depression, WW I veterans tried to pressure Congress to pay them their retirement bonuses early. Congress considered a bill authorizing immediate assurance of $2.4 billion, but it was not approved. Angry veterans marched on Washington, D.C., and Hoover called in the army to get the veterans out of there.

Douglas MacArthur
A general called in by Hoover to clear DC’s Pennsylvania Avenue, but his overzealous personality led him to eradicate every Bonus Army member with violence. Armed with only stones and bricks, the protesters were no match for the guns and tear gas of the Army. This man’s actions horrified Hoover, but he took responsibility.

Why did stock prices first began to decline in late 1929? Investors began to sell their stock Why did Alfred E. Smith edured a smear campaign in the 1928 election? He was a Catholic WE WILL WRITE A CUSTOM ESSAY …

Price Supports Attempt to help ease farmers’ financial problems by the government buying surplus or extra crops and selling them in Europe or abroad. Great Depression The period from 1929 to 1940 in which the nation suffered from a continuous …

Which group experienced an early depression in the 1920’s? Farmers During the 1920’s, the United States economy moved through which phase of the business cycle? Expansion WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR …

Which group experienced an early depression in the 1920’s? Farmers During the 1920’s, the United States economy moved through which phase of the business cycle? Expansion WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR …

Some Americans blamed the Great Depression on Capitalism. The unemployment rate among African Americans was nearly double the national rate WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY $13.90/PAGE Write my sample In …

Laissez faire Idea that government should not interfere in the economy Hoovervilles Popular name for shanty towns built by homeless people during the great depression WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY …

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