1. Chapter 11 The Great Depression

2. Key Terms and People Gross National Product: GNP- total value of goods and services produced in a nation during a specific period Buying on Margin: buying stocks with loans from stockbrokers, paying a small % of what the stock is worth to eventually pay back. Federal Reserve System: serves a nations central bank, takes actions and sets policies to regulate the nations money supply.

3. Black Tuesday Tuesday, October 29, 1929 The day the US stock market collapsed

4. Herbert Hoover 1929-1933 US President during depression. Optimistic and encouraged companies to keep all employees. Urged cities to fund new projects to create jobs. Insisted voluntary action (not federal aid) would help conditions.

5. Hoboes: homeless wanderers Great Depression: Most severe economic downturn in the history of the US Foreclosure: Occurs when a bank or other lender takes over ownership of a property from an owner who has failed to make payments.

6. Hoovervilles Shantytowns, sprawling neighborhoods of shacks sprang up on the outskirts of town or in a public parks- named after President Hoover, who was blamed for the Great Depression

7. Dust Bowl: hardest hit areas of drought and dust storms (Oklahoma, Kansas, Texas, Colorado) Okies: Migrants from Dust Bowl (to California and West). Meant to be insulting- met w/ resistance and discrimination (questions)

8. Associative State: Hoover’s vision of voluntary partnership between government and businesses. Cooperative: Organization owned and controlled by its members who work together for a common goal. Smoot-Hawley Tariff Act: Raised the cost of imported goods for American consumers to promote cheaper US goods. Resulted in plunging trade with Europe. (questions)

9. Causes of Great Depression 1) Stock Market- buying on margin and speculation, don’t hold onto stock=sell quickly, over-saturation 2) Unregulated business/banking- wealth increased as wages decreased, not enough consumers, lending $ to Europe 3) Presidential Practices- Increased economic ties to Europe, encouraged international expansion of business (after crash no ties), appointed business people to cabinet to oversee business (special interests) 4) Credit- buying goods people couldn’t afford, companies not making a profit, consumers couldn’t pay debts, banks loaned money but never received repayment

10. More Causes 5) Overproduction- 1920’s boom led to 1930’s bust, automation led to fewer jobs, decrease in industrial demand, too many goods not enough consumers 6) Foreign trade/debts- had to lend money internally thus couldn’t lend to Europe who then couldn’t buy our goods, war reparations- Europe couldn’t pay debts and couldn’t buy our goods

11. Effects of Great Depression 1) Mass homelessness, poverty 2) Election of Franklin Delano Roosevelt 3) Government and banking reforms (pictures)