What started the Great Depression?
crash on Wall Street
Uncaring, irresponsible president, saw Depression as temporary and inevitable, existing mostly due to American doubt rather than economic certainties, campaigned for "Confidence" tactics failed
Steps Hoover Took
President's Organization for Unemployment Relief (POUR), objective was to set up welfare agencies, without using any government money, lasted less than a year, National Credit Corporation (NCC) failed-had big banks lend money to little banks (half billion in loans but only sustained for short period)
Life in Rural Areas
Many difficulties;prices for crops dropped, leaving farmers with little profit, lost houses and farms, government and Red Cross bases built bases where they distributed food, water, and other essentials for those in need
Unemployed, homeless, distressed people collected in dirty overpopulated cities, relied on soup kitchens to survive
Living in Great Depression
17,000 families kicked to the streets each month during the peak, having taxpayers unemployed cities couldn't acquire income
Recession of 1937
Occurred for many reasons, one of which was because the Federal Reserve instigated a monetary tightening policy. Federal Reserve doubled reserve necessities, taking away from the American money supply
The New Deal
Domestic reform program of the administration of Franklin D Roosevelt, purpose to offer programs and organizations that offered relief to a hurting nation after Great Depression. Represented a significant shift in politics and domestic policy, led to greatly increased federal regulation of the economy, marked the beginning of complex social programs and growing power of labor unions.
First New Deal Phase One
Attempted to provide recovery and relief from the Great Depression through programs of agricultural and business regulation, inflation, price stabilization, and public works
Phase One New Deal Organizations/Programs
National Recovery Administration(NRA), Federal Deposit Insurance Corporation (FDIC), Agricultural Adjustment Administration (AAA), Civilian Conservative Corps, Public Works Administration
In addition to New Deal Organizations/Programs Congress did ? during Phase 1
Instituted farm relief, Tightened banking and finance regulations, founded the Tennessee Valley Authority (nation's largest public power provider and a corporation of U.S. government)
Phase Two New Deal
Provided for social and economic legislation to benefit the mass of working people, social security system established, National Youth Administration and Work Projects Administration set up, Revenue Acts(provided measures to democratize federal tax structure)
What organizations did the Supreme Court strike down in Phase Two?
NRA and AAA, President unsuccessfully sought to reorganize Supreme Court