Hard Times Now and Then

1. How does a person make money on an investment?
- by low sell high.

2. What makes 'cheap credit' mean?
- people that they target because they have trouble paying at the end of the month.

3. What is 'buying on margin' mean?
- the person dosent actually have the money to pay back. and the only way they can pay it off is if the stock goes up.
- black tuesday.

4. How is 'speculation' different from 'investment'?
- people would buy and sell stocks quickly to make a quick buck.
- because of all the buying and selling stock value increased (EX. G.E. stock $130 -> $396/share)

5. How does 'panic selling' start?
- this quick turnover didnt aid companys -> they nedd long term investments so they could pay bills (stock value was like an illusion)

6. How can high unemployment start a negative economic cycle?
- the more people get fired, the more people dont buy stuff
- unemployment goes up; productivity goes down; lower purchasing power; leads back to unemployment! <-- one big circle!

7. How did increases in technology contribute to overproduction in the 1920's?
- we came up with the stuff --> they made it
- back then they came up with stuff --> we made it.

8. What is meant by 'uneven distribution of wealth? Is it a bad thing?
- that some people have more money then others
- yes it is a bad thing because more moneys go to some people then others.

9. What is a tariff, and why don't they seem to work in the modern economy (post-WWI)?
- a tariff rasies the price
- its an impoartant tax

10. What is 'rugged individualism? Is it real?
- its an idea
- self made men and woman
- we make our own stuff.

11. What is a Hooverville, and why is it called that? - 10,000 to 20,000 people
- homeless people that group together
- people who dont have money and or jobs
- dumpster diving= hover meal