Causes of the Great Depression
High tariffs which basically eliminated all trade with Europe. Speculation in real estate created artificial high prices. Replacement of workers with machines. War Debts. Too much credit-borrowers unable to pay back
Stock Market Crash 1929
starting point of Depression. Hoover admin took little action to correct eco problems thinking it would naturally fix itself. Showed laissez faire attitudes and Social Darwinism. Hoover did some federal help.
Effected everyone. Thousands out of work. many took menial jobs. 50% of blacks unemployed .
Banks during Depression
Afraid they would lose their own savings, people rushed to banks that were still open to withdraw their money. This massive withdrawal of cash caused additional banks to close. Since there was no way for a bank's clients to recover any of their savings once the bank had closed, those who didn't reach the bank in time also became bankrupt.
The Dust Bowl
the Great Plains were hit hard with both a drought and horrendous dust storms. effects of a drought caused the grass to disappear. With just topsoil exposed, high winds picked up the loose dirt and whirled it for miles. The dust storms destroyed everything in their paths, leaving farmers without their crops
Election of 1932
Franklin D. Roosevelt, a Democrat, defeated Hoover. Promised change and reform known as the New Deal
New Deal '3 Rs'
1) Relief- direct giving of shelter, clothing, etc. [Works Progressive Admin.-fed gov gave men work on projects]
2)Recovery- curing poor state of eco. [Home Owners Loan Corporation- gov makes loans available to homeowners to prevent loss of home]
3)Reform- long-term changes in the economy to prevent future depressions
Tennessee Valley Authority
A New Deal agency created to generate electric power and control floods in a seven-U.S.-state region around the Tennessee River Valley . It created many dams that provided electricity as well as jobs. Also the electricity proved vital to the development of the atomic bomb in WW2
Reciprocal Tariff Act
Removed barriers to trade by lowering tariffs
National Industrial Recovery Act
A New Deal legislation that focused on the employment of the unemployed and the regulation of unfair business ethics. The NIRA pumped cash into the economy to stimulate the job market and created codes that businesses were to follow to maintain the ideal of fair competition and created the NRA.
attempt by Roosevelt to appoint one new Supreme Court justice for every sitting justice over the age of 70 who had been there for at least 10 years. Wanted to prevent justices from dismantling the new deal. Plan died in congress and made opponents of New Deal inflamed. Some ended up dying and Roosevelt was able to appoint new judges
Recession of 1937
the economy collapsed again and the U.S. entered a recession which is a period of slow business activity. But then coming of Word War 2 and Great Depression floated from view
Committee for Industrial Organization
(CIO) Umbrella organization of semiskilled industrial unions form in 1935 as the CIO within the American Federation of labor, but it expelled from the AFL and renamed in 1938 the Congressed of Industrial Organizations. Sued "sit-ins" at tools