William E. Leuchtenberg
Eminent Historian of the New Deal who called Roosevelt the "first modern president"
One of the most restrictive tariffs in history. It set import duties so high that the price of many imported goods rose nearly 70 percent. Was America's "last high protective" tariff. Helped deepen and prolong the depression. Exports and Imports at this time counted for 6% of the US's GDP.
The Dow Jones lowest points total reached in July 1932.
Number of cars that Ford made in 1929. Down from 1,5 million the previous year. Made 1929 the worst year Ford ever had.
Location(City) where a protest turned into a tragedy when a group of policemen fire into a crows killing 4 people.
The unofficial Communist Hymn sung by 6,000 protesters in Detroit streets a few weeks after the protests at the Dearborn Plant.
John Reed Clubs
Clubs which gave out Communist propaganda and which first made their appearance in Chicago,IL.
A Republican president who had famously declared "The business of the Gov't is business."
Mayor of Chicago. Famously told a house committee that Pres. Hoover had the choice between "sending troops" or "sending supplies". He would later die, when assassin Giuseppe Zangara fired 5 shots at FDR and accidentally killed him. He would die in FDR arms.
The city where the Republicans hosted their 1928 Nominating Convention.
The year in which Abraham Lincoln won his 2nd term, Roosevelt beat Hoover in the 1928 election in what would be the greatest electoral landslide since the reelection of Abraham Lincoln in this year.
Number of electoral votes Roosevelt won against Hoover(out of 531) in the 1928 Election. He also won 57% of the popular vote.
Anti-Capitalist who thought that Roosevelt's ADMIN would destroy the chance of a revolution. 2 weeks before his inauguration Roosevelt and Chicago Mayor Anton Cermak were meeting with an Amer. Legionnaires group in Miami Florida, he fired 5 shots into the crowd in order to kill Roosevelt and killed Anton Cermak instead.
The number of talks that Roosevelt would give a day in order to win his first New York Senate Seat in 1910. He would later become Assistant Sec. of the Navy.
Theodore Roosevelt's politics(26th president of US). FDR greatly admired this style of politics and it lead into him getting into politics. In Teddy's time it split the Republican Party.
Year FDR was born. He was very rich, as his family had made a fortune off of Coal and Railroads. He grew up in Hyde Park, New York(Loved Horses,Sailing,Country Life)
Prestigious High School that Roosevelt went into. Later went to Harvard, then to Columbia Law School where he dropped out because he wasn't interested.
Sickness that forced FDR to stay out of duty when WW1 was being fought.
Journalist who said during FDR's failed VP bid in 1920 " I cannot remember whether Roosevelt said anything important or whether anyone listened.... but I do remember that he had a pleasing personality....and a magnificently strong physique".
Harvard Newspaper that FDR worked on while in college. His time on this paper was one of the best memories he had of college.
Eleanor Roosevelt's Social Sec. FDR cheated on Eleanor with her on numerous occasions and she was with him when he died of a stroke in April 1945.
Galahad of the Insurgency
Name that FDR earned for his Progressive opposition to the Democratic Party Machine during his run for state senator.
Distant Cousin to FDR that he married. Was born to a very modest family with an alcoholic Dad and a religiously strict mother. Began her own public mission(civil rights) even against DAR(Daughter of the American Revolution, and most prominently League of Woman Voters. Had 5 Sons and 1 daughter with FDR. She knew about affair that he was having with her Soc. Sec Lucy Mercer.
Franklin Delano Roosevelt
The Grand 32nd President of the U.S. Served 3 terms 1932-1945 and won a total of 4 elections before dying of a stroke in April 1945. Influenced Pres. LBJ and Ronald Reagen most strongly. During his term he launched massive employment programs(CCC,CWA,and PWA) and lead the US through WW2.
Louis McHenry Howe
New York journalist and publicity manager who would be his closest adviser for the 22 years before his death. Helped him perfect his image.
Roosevelt's radio addresses to the electorate. Usually less than 30 mins, had no specific agenda, and lacked grand oratory. His causal, intimate explanations endeared American to him.
Disease that FDR got in 1921 while on summer vacation at his families vacation home. He was diagnosed two weeks after being struck. Although he was determined to beat it he never regained strength in his legs and was forced to stand in steel braces for the rest of his life
FDR Sec of Labor. She was one of the veteran labor and Woman's right advocates that he brought with him. She believed that FDR polio made him more " deeply emphatic person"
Rural Republican dominated county in New York that FDR had won in 1910 to become a New York State Senator. When he was Governor of NY he also faced a Republican dominated legislature.
Justice Charles Evans Hughes
Republican Insurgent and Supreme Court Justice that had endorsed FDR when he was running for NY State Senator in 1910. Was in part because of Teddy Roosevelt's "Progressive Nationalism"
Type of Democrat that you could call Roosevelt. When running for President he said he wanted a couple of things(Staying with Gold Standard, 25% cut in gov't spending, Refusal to pay Farmer's if they plowed down land, against tariff that farmer's hated, and persistent experimentation.) In Retrospect US left the gold standard, gave farmers money for land they didn't plant(subsidies).
1924 Democratic Presidential candidate who lost badly to Hoover.In trying to win the presidency, he pushed FDR to run for Governor of NY which he won. Later he would actually speak against FDR's New Deal. Was the first Catholic who ran for President and got a major parties(Democrats) nomination.
Pres from 1912 to 1920(During WW1). In return for FDR helping him getting elected he rewarded him with the Assistant Sec. of the Navy position. In his job as Asst. Sec of the Navy he first learned to negotiate multi-million dollar contracts and settle labor disputes.
A group of progressive lawyers, economists and social workers who advised President Roosevelt. He first started this when he was still Gov. of New York.
Famed Journalist who once said of FDR after he compromised on his commitment to the League of Nation's in order to avoid alienating isolationist " Franklin Delano Roosevelt is no crusader...He is no tribune of the people...He is a pleasant man who, with out any important qualifications, would very much like to be President
Largest State in US(in terms of population at that time) that Roosevelt became the governor of in 1928 at the advice of then Pres. candidate Al Smith. Pushed the biggest budget through NY state legislature to that point. Easily won reelection in 1930. When 1 million people were unemployed and banks were failing he devised a set of programs that would help them(largely ineffectual).
Repealed the 18th Amendment that had prohibited the sale and distribution of Alcohol. The 18th Amendment actually made it easier for Organized Crime, and was largely a failure.
Emergency Banking Act
First act that Roosevelt passed. He did it the DAY AFTER his inauguration. Until then he had declared a banking holiday and suspended transaction in gold from March 6th to 9th. Was actually conservative in Nature(Hoover's Bill). It gave bank holidays legal grounding, extended govt assistance, penalized the hoarding of cash reserves, and authorized the issuing of Federal Reserve Notes.
Described as a "pale urban type", was a social worker who also administered(FERA). He became the most powerful man in the administration in Roosevelt's 2nd Term as Pres. Frequently met with world leaders such as Joseph Stalin and Winston Churchill.
Federal Emergency Relief Administration
Agency that Congress created which was modeled after NY Temporary Emergency relief Administration. Headed up by "pale urban type" Henry Hopkins. Channeled 500 million dollars of Immediate relief through the states to local agencies. NOT based on Macroeconomic theory , for example bailed out coal towns in IL where 95% needed relief. Built 5,000 buildings, 7,000 bridges, and thought 1.5 million Americans how to read or write.
Person in FDR's administration who said" Give a man a dole and you save his body but destroy his soul... give him a job and you save both body and soul.
Glass-Steagall Banking Act
Act that FDR signed despite his opposition to insuring banks on June 16th, 1933. The act separated Investment from Commercial banking. The most controversial part created the (FDIC) Federal Deposit Insurance Corporation that would insure deposits up to $2500, was proposed by MI Senator Arthur Vandenberg and AL Rep. Henry Steagall.
Federal Deposit Insurance Corporation
Created by 2nd part of Glass-Steagall Banking Act. Insured deposits up to $2500(controversial at the time). Helped end bank runs. Proposed by MI Sen. Arthur Vandenburg and AL Rep. Henry Steagall. Is still a mainstay on all bank counters.
Ancient rule on Wall Street before FDR's Admin. started regulating it. Means "buyer beware".
Famous financier and money mogul who complained that when he was being questioned by a House Committee about why he and his 20 partners hadn't paid taxes in 2 years. He said that "Sen. Ferdinand Pecora has the manners of someone prosecuting a horse thief".
Securities Act of 1933
Act passed that started regulation of the financial markets. The (FTC) Federal Trade Commission now had to supervise the issue of new securities, and make sure that each stock was accompanied by a financial statement which made the company directors criminally liable for deception. Did NOT create the (SEC).
Securities and Exchange Act
Law passed a year after the Securities Act of 1933. This is the law that created the (SEC) Securities and Exchange Commission, which became responsible prevents manipulation of stocks by insider trading and provide regulatory oversight of trading practices.
Securities and Exchange Commission
Agency created by the Securities and Exchange Act in 1934. Prevents manipulation of markets by insider trading and gives regulatory oversight. Launched a new chapter in Wall Street History
Civilian Works Administration
One of the massive employment programs. At it's biggest employed 4.2 million people at minimum wages.Built 500,000 miles of roads, 40,000 schools, 3,500 athletic fields, and 1000 airports. Was unpopular and only lasted for 1 year, partly because it hired all of Boston's unemployed teachers, and hired 94 Indians to restock Kodiak Island with snow shoe rabbits. (CWA)
Civilian Conservation Corps
Most popular massive employment program. Employed 250,000 jobless young men mainly from the cities to plant trees, drain swamps build dams..etc etc. Workers lived in camps operated by the War Department. Also known as FDR's "Forest Army" (CCC)
National Industrial Recovery Act
Abbreviated (NIRA). This act created the (PWA) Public Works Administration,suspended anti-trust laws, Section 7(a) of the law guaranteed collective bargaining for Unions, and effectively abolished child labor. Was actually a compromise bill between two different acts drafted by his brain trust.
Public Works Administration
Massive employment program created by the (NIRA) National Industrial Recovery Act. Headed by progressive "Honest" Harold Ickes. From 1933-39 completed 70% of nation's schools, 65% of courthouses, city halls, sewage plants, and 35% of of it hospitals. Prioritized good design over speed. Struggled to compete for FDR's consideration
Progressive member of FDR's administration. Was known as "honest", he also lead the Public Works Administration(PWA)
Henry A. Wallace
Sec. of Agriculture under Roosevelt. In FDR's 3rd term he became VP. Farm groups like the Grange and the American Farm Bureau Federation talked to him wanting a fairer price relationship between farming and industrial goods, and mortgage relief for farmers. This was accomplished with the Agricultural Adjustment Act(AAA).
Agricultural Adjustment Act
Act which had the strong backing of farm representatives. The Sec of Agric.(Henry A. Wallace) would sign agreements for the reduction of acreage under cultivation in return for a payment equivalent to the crops value. Cost was covered with a tax on processing industries which had benefited from the rapid decline in farm prices. At least 10 million acres of cotton was destroyed, several million piglets were killed and burned rather than sent to the slaughterhouse. Large landowners received most of the money(90)% while sharecroppers got (10)%
Democrat and Alabama Senator who convinced the Senate to pass a 36 hour workweek law. He was also the first judge that Roosevelt nominated to the Supreme Court after justice Van Devanter retired. Was known as a staunch supporter of the New Deal.
Section of the National Industrial Recovery Act (NIRA) that guaranteed the right for labor unions to collectively bargain.
A deliberate federal budget deficit to compensate for declining private demand with a public demand for goods and services. FDR's economic policies were NOT based on this. Relief was the primary tenet, and he would have sacrificed expanding demand.
The problem that FDR's administration thought was prevalent at the beginning of his administration.
Famous Journalist who changed his mind about FDR and said "At the end of February we were a congeries of disorderly panic stricken mob... In the 100 days from March to June we became yet again an organized nation confident of our power to provide for our own security and control our own destiny."
The idea that GDP could no longer grow. Was a very prevalent in the 1930's.
Economist who demonstrated in 1956 that federal expenditures exceeded the contracted spending on state and local levels in only 2 out of the 7 years between 1933-1940. Also concluded that "demand management was unsuccessful in 30's because it was not tried."
Revenue Act of 1932
Largest peacetime federal tax act in U.S history that raised the tax rate in 1932. Happened under President Hoover, this act canceled out the relief offered by his programs (RFC $2 Billion Dollars), (FHLBA $150 Million)(NCC $500 Million), and the $750 million in gold reserves through the Glass-Steagall Act.
Tennessee Valley Authority
Congress created this public redevelopment agency after the savings of some 600,000 investor imploded under Henry Ford and William Unsull's under their private enterprise. Controlled flooding and provided electricity for 7 states. Also operated the Muscle Shoals power plant, and were able to employ thousands of people. Electricity it provided to rural communities was most important.
This man worked with Henry Ford to run a private energy enterprise that failed and made some 600,000 investors lose their money.
Economist who was a chief member of FDR's Brain Trust, and a critic of big business. Wrote "The Modern Corporation and Private Property" which influenced section 7(a) of the National Industrial Recovery Act (NIRA).
The Modern Corporation and Private Property
Book by economist Adolf Berle which influenced Section 7(a) of the National Industrial Recovery Act (NIRA)
Franklin Delano Roosevelt
Person who said "No business which depend for existence on paying less than living wage to its workers has any right to continue in this country." "the US must restore the domestic market by raising its vast consuming capacity."
National Recovery Agency
Agency responsible for carrying out the National Industrial Recovery Act(NIRA). Labor Union Leaders were disappointed when it failed to enforce the wages and hour provisions agreed upon in the industrial codes.
Name for strikebreakers hired by companies in response to striking unions.
Name of the solution that FDR's National Labor Board (Made of both Union and Business leader) came up with . Stated that strikers should be rehired and that workers needed to determine union representation through elections with secret ballots.
San Francisco General Strike
Strike that was orchestrated by the International Longshoreman Association under Harry Bridges in July 1934. So many other unions joined that San Francisco was paralyzed.
American Federation of Labor
Most powerful labor union headed up by William Green. Was rather conservative(racially bigoted) and it hated unskilled workers. It also had little interest in organizing female workers in food production and white collar jobs.
Joseph P. Kennedy
Businessman who headed up the SEC during FDR's Admin. Was also JFK's father. Most people believe that he got his fortune while running liquor during prohibition.
American Liberty League
Group that believed the New Deal was "state socialism" and wanted to restore strict interpretation of the constitution(as they saw fit of course). Included Alfred Sloan of General Motors and The DuPont Family
National Association of Manufactures
Group along with the American Liberty League, the Chamber of Commerce, and the National Industrial Conference Board aggressively opposed New Deal Programs. Membership of this group increased from 1469 to 3008, it opposed 31 out of 37 major legislative proposals from 1933-41. Sought to influence policy through the Special Conference Committee which influenced the NRA's Advisory Board. Abreviated (NAM)
Special Conference Committee
Group which influenced the NRA;s advisory board. Groups like NAM tried to influence New Deal policy through this committee.
Voluntary cooperation between business and government in economic policy. Was used by Hoover and previous republican presidents but had failed by the eve of the depression
Farm Credit Act of 1933
An act designed to protect small bankers from bankruptcy passed in June 1933. Was similar to the Farm Mortgage Refinancing Act of 1934, which created a 5 year moratorium on farm mortgage foreclosures.
United Council of Working Class Women
Union made up primarily of housewives, that in the summer of 1935 in New York City organize a citywide strike against butcher shops. Abbreviated (UCWCW)
Conservative family which owned newspapers, which decried consumer boycotts as a "communist conspiracy" prompting investigations into consumer movement again and again.
Fundamental problem of the Great Depression. Was not dealt with early on in FDR's administration as they thought the biggest problem was overproduction.
Columnist who argued that "High wages" and "mass purchasing power" should be the principal end of economic policy as early as 1932.
Amateur economist who wrote the book "A New Deal." In it he argued "Americans have left economy of scarcity... it was not overproduction but underconsumption which is the appalling fact...millions of tons of additional material could be marketed if more purchasing power were avaliable."
"Muckracker" author of "The Jungle" Was one of the New Deals critics from the liberal side. He was a socialist but changed his registration to Democrat in order to announce candidacy for CA governorship. Launched short book during campaigning(I, Governor of California, and How I ended poverty). Also wanted to launch a program End Poverty In California(EPIC). He lost after anti socialist fear mongering campaign was launched by him.
End Poverty In California
Program proposed by Upton Sinclair while he was running for governor of California in 1934.
Huey P. Long
Senator of Louisiana known as "The Kingfish" who believed Roosevelt's policies were too friendly to banks and businesses. Created the "Share Our Wealth" program in which every American family would get a homestead allowance of $5000 and a minimum annual income of $2,500 which would be paid for by taxing the rich. Motto was "Every Man A King" Some weeks he received more letters(60,000) than FDR. Was assassinated in September 1935
Father Charles Coughlin
A Catholic priest from Michigan who was critical of FDR on his radio show (The Golden Hour of the Little Flower) His radio show morphed into being severely against Jews during WWII and he was eventually kicked off the air, however before his fascist (?) rants, he was wildly popular among those who opposed FDR's New Deal. At first he supported FDR's New Deal. Favored expansion of money supply by accepting gold and silver.
Dr. Francis Townsend
An American physician who argued that all Americans over the age of 60 should get a monthly gov't pension of $200. Known as the "Townsend Plan," influenced the establishment of FDR's Social Security system. Would be paid for with 2% value added tax at every stage of a production process.
Soak The Rich
What the press called FDR's proposed Tax Act of 1935. Would have provided for an increase in the maximum tax rate from 59 to 79%, gradual corporate income tax, and constitutional amendment that allowed for the taxation of interest earnings. His proposed act came out much tamer and is called the Revenue Act of 1935.
Revenue Act of 1935.
Federal tax kaw signed by FDR in 1935. Raised the maximum income tax from 59% to 75%. only for incomes larger than $50,000. Changed revenue very little as only 1% actually made that amount. Coincided with the closing up of tax loopholes.
Number of House Seats that Democrats had after 1934 Midterm Elections. Accounted for 74% of total amount.
Four Horseman of the Apocalypse
Name given to 4 Supreme Court Justices: Van Devanter, Butler, Reynolds, and Sutherland. Strong defenders of private property and freedom of the marketplace. Had persistently opposed child labor laws, minimum wages, and the right to unionize. Also didn't intervene in matters of free speech and right to assembly.
A judicial philosophy in which judges play minimal policy making roles, leaving that duty strictly to the legislatures.In matters involving gov't power to regulate economic activity 3 Justices: Cardozo, Brandeis. and Harlan Stone adhered to this. However they were not usually willing to grant legislature much leeway when it came to civil liberties.
2 Justices on Supreme Court were this. Chief Justice Charles Evan Hughes and Owen Roberts
Schechter Poultry Corp. v. US
On May 27,1935(Black Monday) for the New Deal, In this Supreme Court Case FDR's administration got 3 major blows from a united court. (1st) Congress can delegate power to the Pres, BUT it could not give he executive a blank check which he could turn over to private parties.(2nd) Impact of Schechter Poultry Corp on interstate commerce was INDIRECT, and (3rd) Even extraordinary economic conditions do not warrant an enlargement of constitutional powers.
United States v. Butler
Supreme Court case in which the Agricultural Administration Act(AAA) was stuck down.
Soil Conservation Act
Act passed shortly after the AAA was struck down in United States v. Butler. Had a so,o;ar [urpose as the AAA. New Dealers learned from their mistakes and avoided Supreme Court Justice Roberts argument in the cases they lost.
Term coined by Austrian economist Joseph Schumpeter. Means the production of new consumer goods led to older industries shrinking or even stagnating. Example is Auto industry leading to less use of Railroads
Austrian economist who came up with the term "creative destruction".
Yellow Dog Contracts
Contracts that employers would make their workers sign saying that they would not join a union.
Minimal political involvement with foreign powers
The financial "pyramid" scheme named after Charles Ponzi of Boston. He tricked investor into believing that he could deliver a 50% return on investment in his Old Colony Foreign Exchange Company. Cost it victims everything.
Plan devised by U.S. banker to scale back reparation payments for WWI and establish a cycle of loans to Germany which let is pay off outstanding war debts to the Allies.
Schemes on Wall Street to artificially raise the prices of the stock by selling stocks back and forth until a buyer outside the pool bought it and he was stuck with manipulated stock.
Bank of the United States
Bank that failed in December 1930 in New York City. Was the largest bank failure in US history to that point, and it carried the deposits of thousands of Jewish immigrants.
Event that occurs when defaults by businesses cause investors to worry and withdraw all their money at one time.
In May 1931, this bank in Vienna, Austria that was the major institution for much of central and eastern Europe collapsed. As a result people began to convert money into Gold, and Britain left the Gold Standard
Floating Exchange Rates
An unmanaged process whereby market forces rather than governments influence the relative rate of exchange for currencies between countries. US followed this system after 1973.
Fair Labor Standards Act
The last significant New Deal legislation passed after the 1937 Roosevelt Recession. It provided for a minimum wage and restricted the shipment of goods produced by child labor. The one act that AFL and CIO collaborated on. Stipulated a 25 cent minimum wage with wage increases every 7 years. Set work week at 44 hours with a gradual reduction to 40 hours over 2 years. Raised the wages for 500,000 people and shortened the work week for 1 million.
Percentage of voters on relief that voted for the Democratic Party. They would form a reliable part of their coalition until 1968.
A. Philip Randolph
Black leader of the Black Brotherhood of Sleeping Car Porters that threatened FDR with a march on Washington DC. FDR gave in an created the Fair Employment Practices Commision(FEPC)
Fair Employment Practices Commission
Commision created by FDR in response to A. Philip Randolph's threat to march on Washington D.C. NOT to be confused with Truman's( Presidential Civil Right Commison) or PCRC.
Presidential Civil Rights Commision
Commision that Truman created in 1946 with Executive Order 9808. Also at this time Truman desegregated the armed forces and his Justice Department issued a supportive breif in Shelly v. Kramer(Declared racially restrictive housing contracts unenforcable).
Mason Dixon Line
Am imaginery line that seperated free territories from slave territories. African Amercians left the south in what would be called the Great Migration, mainly fueled by the (AAA)
April 12, 1945
Date of FDR'S death, Truman became president and the rest is history.
Taft- Hartley Act
Also called the Labor- Managment Relations Act. Was a republican initiated act that Congress passed over President Truman's Veto.
1949 State Of The Union
Event at which Pres. Truman first started extending his hand towards civil rights legislation for African Americans.
21 Point Plan`
Truman's plan that listed 21 points that he wanted to acheive in the form of "Rights". Included right to (Job,medical care, housing, economic dependence in old age)
33th President of the United States. Was a small bespecalted man from MI. He commited himself to the expansion of the New Deal through his "Fair Deal" and 21 point Plan. Had a more conservative staff than FDR. His chairman on the CEA was Edwin Mouse(a consercative put there to assuage big business and Republicans). However he did have Leon Kerysling on the CEA who was commited to the New Deal.
Racist Southern Democrats who started to leave the Democratic Party after African Americans began to be a major constituent of the New Deal. Finally went into Republican Party after LBJ's Civil Rights Act of 1964 and the Votings Rights Act of 1965.
Discrimination by Design
What political scientist call FDR's original Social Security Plan. FDR had to concede points to southern Democrats(Dixiecrats) in order to keep them into the New Deal coalition at that time. Fully 65% of African Americans fell out of the Orginal program.
39th President of the United States. Was a peanut farmer and was also Gov. of Georgia before he became Pres. Intoduced cost of living adjustments(COLA) to Social Security in the 1970. There was widespread "Stagflation" and he only served 4 years, leading to the election of Ronald Reagan.
Dwight D. Eisenhower
Republican Pres. who ended 20 year Democratic control of the White house. In WW2 he was the Allied Commander of Forces in Europe. Although he opposed new initiatives in the economic atmosphere, he expanded Social Security by adding disability compenstation for those over 50 years old.
Ammendment added to the 1962 Food and Drug Cosmetic Act of 1962. It demanded rigourous testing to determine the safety of new drugs in the wake of the surge of deaths by Thalidomide(mixup of isomer).
Voting Rights Act of 1965
Act passed by Lyndon Baines Johnson in 1965 that invalidated the use of any test or payment in the determination of voting wights. Was the final naail in the coffin for many southern democrats(Dixiecrats) who switched to the Republican Party.
One of the two major tools that the New Dealers used, along with Fiscal Managment. Commited gov't to restricting the power of large corporate firms, and providing legal protection for workers and consumers. Steeped in the tradition of Progressive Reformers at the turn of the century.
One of the major tools that the New Dealers used, along with Regulation. Subscribed to the macroeconomic theory of John Maynard Keynes. Promised steady growth through couner
Officially European Recovery Program, gave out $13 billion most in grants between 1948 and 1952.Helped rebuild Europe after WW1.
Bretton Woods Conference
Conference held in small town in NH that would make the American Dollar the key currency. Dollar was fixed in terms of gold and then other currencies were pegged to the dollar. Would be major international system until 1973, when World switched over to floating exchange rates
Supply Side Economics
Type of economic managment that Reagan and most republicans adhered to. Belief that tax cuts at the upper end of income spectrum would promote investment and trigger economic expansion. (Dubbed REAGANOMICS)
Cheif economist of Ronald Reagan favoring supply side economics. Argued that high taxes siphoned off capitak that would otherwise stimulate growth
The Savings and Loans Crises
An economic crises from 1986-1989(Regeans Pres.) in which the removal of geographic restrictions on investment of activities in saving and loans opened up a new national market for localized markets. Lead to failure of banks and gov't bailout at consumer expense through the (FSLIC)
Economic Opportunity Act
1964 Act that was part of LBJ "War on Poverty". Established training camps in rural and urban areas, offerede grants to small farmers and small business, and supported community efforts to biuld ant-poverty programs.
Americans who felt that special interest groups were robbing them by placing a unnesescery finacnial burden on them tunred to these at the end of the 1970's partly due to Carter's stagflation.
Term coined by Richard Nixon in reponse to mass demonstrations at this period of time(1970s. They would give him big wins on his way to the white house.
Ronald Reagan's economic beliefs that a captitalist system free from taxation and government involvement would be most productive " trickle down economics"
Most important dynamic of Reagonomics and its dismatling of the New Deal Agency. Underlying assumption of this was that it would provide better service more cheaply to more people.
Economic Recovery Act of 1981
Ronald Reagan's tax cut, which reduced income taxes significanlty over the course of 3 years. At the same time RR Admin. made drastic cuts in food stamps, unemployment compensation, and welfare programs like the AFDC. Redistrubited income from the poor to the wealthiest Americans.
Industry that was affected by rising oil ang gas prices a decade after WW2, new competition from Germany and Japan, and corporate decisons to move to low wage, nonunion settings in the South and West.
Organization of Petroleum Exporting Countries
International oil Cartel made up primarly of countries in the Middle East like(United Arab Emirates, Qatar, Saudi Arabia). Raised prices after Yom Kippur War of 1973 and American economy started to falter.Abreviated by (OPEC)
Yom Kippur War
1973 War that made OPEC raise prices. Fought between Isreal and Jordian/Syria. Part of the Arab Israeli Conflicts.
Chairman of CEA during Lydon Baines Johnson Admin. He urged LBJ to issue a tax increase. However he was unwilling to call Veitnam a War and instead called it the conflict in southeast asia.
A new term that described majority of Carter's Pres. High Inflation and economic stagnation. Signified the limits of Keynesian demand management.
Soil Bank Act of 1956
Act passed under Eisenhower Pres(1956). It sought to reduce plowed land through subsidy payments to farmers who took land from production and placed it in a soil bank. Had little effect on overproduction because farmers tended to put least productive land in soil bank and cultivate the rest of land with increased vigor.
The Emergency Feed Grain Bill of 1961
Act passed in 1961 after Soil Bank Act proved to be ineffectual and fasrm surpluses increased. It offered even greater subsidies to farmers for larger reduction in acreage.
Food And Agricultural Act of 1965
Act passed in 1965 that pushed even greater subsidies to largest landowners in American agriculture.
Rule that savings and loans bankers were supposedly followed. Stands for Pay 3% on deposits, lend mortgages at 6%, and get to the golf course by 3 PM. Large in part because of Federal National Mortgage Association(Fannie Mae).
Formal name is the Federal National Mortgage Association. Specialized(and still does) in housing loans at time when postwar housing boom created a strong demand for long term mortgages.
Founder of Merill, Lynch, Peirce, Fenner, and Smith. Eliminated commisions for sales staff. Promoted a "peoples capitilalism)
The World Of Wall Street
New board games like ___________________ showed huge interest of the Financial markets. % stockholders in financial industries in Amerca was 3 to 4 times bigger than in Europe and Japan .
Neutrality Act of 1935
US passed this act in 1935 prohibiting any arms shipment to warring nations, even if these nations were victims of aggression.
Neutrality Act of 1936
2nd major US Act in the field of foreign affairs Prohibited private loans by American citizens to governments at warand banned armed shipments to any third country joining the war. Followed the Neutrality Act of 1935
Neutrality Act of 1937
3rd major US Act in the field of foreign affairs. Extended the arms embargo on civil wars, imposed a mandatory travel ban, and authorized "cash and carry" only trade with warring nations to keep US merchants fleet out of harms way. Also prohibited FDR's administration from providing assistance in The Spanish Civil War.
Spanish Civil War
Civil war in Spain in which General Franco succeeded in overthrowing the republican government. FDR didn't like Republican(monarchy) so he welcomed the Neutrality Act of 1937 that absolved him from participating. Approximately 500,000 people died. 200,000 by summary execution by Franco afte he won in April 1939.
Spanish general whose armies took control of Spain in 1939 and who ruled as a dictator until his death (following the victory of the Spanish Civil War). Had help from the Germans and Italian Fascist governments. Ruled Spain as a dictator until 1975.
Rape of Nanking
Infamous genocidal war crime committed by Japanese military in Nanjing. started in 1937 and lasted a few weeks. Japanese army raped, stole and killed prisoners of war and civilians. However because US favored chines strongman Chiang Kiashek who fought against Communist under Mao Zedong, FDR declared that no state of war existed between China and Japan, which meant that US could continue shipping arms to the Chinese. Lead to the death of 300,000 civilians.
American gunboat that was attacked on Dec. 12 1937 by the Japanese. Signaled that American involvement in the Sino-Japanese War would mean war with Japan. Isolationists in Congress then pushed FDR's administration to withdraw its presence.
FDR's doctrine in Foreign Affairs that compared aggressor nations to sick patients. Stated that these nations had to be isolated from the world, however the isolation of the US would only allow their disease to spread. Was met with a mixed response as only 31% supported FDR's proposal and many more thought that he was clamoring for war.
What the policy for most of the 1930's towards countries like Germany and Italy can be called(Not done by US but by European Nations). Was supposed to secure "peace for out time". Failed Miserably. There is Chamberlain(Prime Minister of Britian) at that time signing a peace agreement with Hitler. Hitler would later call it "words on paper" and invade Cech Republic and Poland. The rest is history.
A Republican led committee inquiring into the corporate war profiteering of WW1. Their findings supported the notion that American participation in World War 1 had been driven by the same international speculation that had caused the Great Depression, and as a result over the next few years the US passed 3 Neutrality Acts limiting US involvement in Foreign Wars.
S.S. St Louis
Ship that left Hamburg,Germany(Hapag American Line) for Cuba in May 1939. Had Jews that wanted to escape Hitler's Germany. For many of the passengers onboard it was the last chance to escape German tyranny(as US passports had become harder to come by).930 refugees were prevented from entering Cuba ,and asked US for Asylum and were denied. As a result they had to go back to Europe and found refuge in Belgium, Holland ,and France. Signaled that Jews were not welcome in US.
Known as the "Night of the Broken Glass". Happened when Nazi in Germany organized on the breaking and burning of synagogues on November 11, 1938.
Tydings-Duffie Act of 1934
US Act that turned the Philippines from an island possession into a commonwealth ,and put the Philippines on a 10 year plan towards national independence. Japan understood this act to mean that their acquisition of the Philippines would not create that much opposition.
Good Neighbor Policy
Favored by Hoover and FDR in order to grow international trade, which, they assumed would lead to an expansion of US exports.
William Appleman Williams
Historian who argued that US interest in foreign good foreign relations were first and foremost driven by the search for expanded markets.
Grau St. Martin
Revolutionary Cuban figure who was very popular among intellectuals, workers, and peasants. However the presence of US ships in the Havana Harbor doomed the chance of a revolution.
7th International Conference of American States
Took place in Montevideo, Uraguay. At this conference FDR promised that the US would be a "good neigbhor" and "not intervene in the internal or external affairs of another"
Who Mexico elected their Pres. in reesponse to the Great Depression. He was a bold economic and social reformer whose administration had much in common with the New Deal. Restored traditional rights of Indians, encouraged unionization, and fufilled a constitutional provision calling for the nationalization of foreign oil companies in return for fair compensation in March 1938. Mutilimilionare shair holders like the Hearst family were furious at him, however the US State Dept. decided not to escalate the conflict. Oil companies then had to negotiate their own compensations at 10% of original claims.
10th Pres. of Cuba came to power with the help of U.S military. 15 years of Dictatorship were installed between him and General Batista, Grau St. Martin wanted to lead a rebellion against him, but US presence in Havana's port crushed all chances for that.
Johnson Act of 1934
Act that prohibited the trade with bonds of nations that defualted on their debts to the US gov't. Was a rejection of a European proposal made at an international conference in Laussane Switzerland that would have cancelled 90% of Germany's remaining reparation payments as long as US forgae France and Britian the same share of debt. In other words this law maintained a hard line on the very international debt-cycle that had accelerated the Great Depression.
London Economic Conference
Economic conference were FDR refused(against the advice of his experts) to commit to a general plan for returning to the gold standard as quickly as possible for the sake of international stability. Suggested to European Nations that US had no interest in international cooperation.
Reciprocal Trade Agreement
Agreement that introduced the "most favored nation" provision into trade agreements. Import Duties would be cut in reciprocity for any nation that lowered its trade barriers for American goods.
Extreme, chauvinistic patriotism, often favoring an aggressive, warlike foreign policy otherwise called extreme nationalism. FDR never subscribed to this.
Former social worker who was FDR'S Commisioner of Indian Affairs. He emphasized cultural pluralism over integration and emphasized Indian Self Determination and a return of communal Indian land to the tribes. He also created the Indian Arts and Crafts Board to promote traditional native artists and help them sell their work. Acted on "decolonization" of Indians on Native lands.174 nations went along while 80 nations reefused.
Indian Reorganization Act of 1934
Often referred to as the "Indian New Deal". Reversed policy of assimilation pursued under Dawes Severlty Act of 1887. Created Burea of Indian Affairs with John Collier as its commisoner.
What the Industrial states in the Northeast(mainly) and Midwest were called in the 1970's and 1980's. Workers began to move out of this region into the sunbelt.
What the rapidly expanding southern rim of the country was called during 1970's and 1980's. Employers moved into this region because of the low miniumum wages. Region had an anti-union stance and unionization was more
Federal Housing Administration
This agency along with the USHA helped million of americans get affordable safe housing. Had nationwide federal standards for lending based on classificaion of neibhorhoods. However this agency denial of mortgages in RED-Lined neibhorhoods led to the decay of the inner cities and the growth of the suburbs. Abreviated FHA
City where suburban counties recieved 5 times more mortgage insurance than the city itself from 1933-1960. Mainly due to FHA housing standards.
Number of people displaced between 1949 and 1967 by "urban renewal" plans. These plans also razed about 400,000 buildings
Medical care program enacted by Lyndon B. Johnson for people over 65 years of age(Housed within Social Security). Not to be confused with Medicaid (Which is the plan for POOR people Regardless of age) and is paid out of general tax revenues. Both these acts created by Social Security Act of 1965.
Medical care program enacted by Lyndon B. Johnson for Any POOR people that could not afford health care(Paid for by General Tax Revenues).
Social Security Act of 1965
LBJ Act in 1965 that created Medicare and Medicaid.
Alfred P. Sloan
Chairman and CEO of General Motors(GM) whose marketing savvy featured new designs colors, and innovations such as the self starter and windshield wiper. Was also part of the American Liberty League and opposed the New Deal Policies of FDR.
Amount of motor vehicles on the roads by 1929, Represented 1/5 people in the nation, while European nations like Germany only had 1/135 people. Was due to Henry Fords(FORD) assembly line and Alfred P. Sloans marketing(GM)
Age of Prosperity
What historians call the 1920's. During this period the nations overal economic output, and real wages increased. However wealth was distrubited unevenly and farm wages began to decline.
Immigration Acts of 1921 and 1924
Draconian immigration restrictions were enacted by these 2 acts under Pres. Calvin Coolidge. Collectively they limited immigration by establishing qoutas.
The average unemployment rate between 1923 and 1929.
Golden Age of Agriculture
What historians call the quarter century before the 1920's. A surge in international demand during WW1 boosted prices and motivated farmers to invest in machinery, However by 1921 the farmers in Europe were back i the market and prices fell dramatically. This in conjuction with the Fed's tight credit policy caused farm foreclosures to increase fivefold between 1918 and 1923.
What the US became in the early 1920's. As early as 1914 and for most of its historty the US had been a Debtor nation with a 3.7 billion debt to foreign investors. Now had 12.6 billion dollar surplus. Most of this was in the form of financial aid that it had provided to its European Allies.
Old Colony Foreign Exchange Company
Charles Ponzi's company that carried out the first Ponzi scheme. He convinced thousands of investors that he could deliver a 50% return on their investments during the 1920's
The nations premier economist before the stock crash. Said " Stock prices appear to have hit a permenatly high plateau." just weeks before the crash.
Liberty and Victory Bonds
These bonds helped finance the WW1 from 1917-1919 and introduced 22 million Americans to the Securities Market. Urged more corporations to "go public"
Magazine that concluded that the Stock Market was no longer a place for the "hard boiled knights" but a place for "the butcher, the baker, and the candlestick maker."
Trusts that by 1929 emerged on Wall Street at the rate of one a day and sold nothing but paper shares in investment portfolios.
Buying on the Margin
Practice by which investors purchase a stock for only the fraction of its price, borrowing the rest. Even commercial bankers puped their money into broaker's loans. By October 1929 investors owed 6.6 billion to Bethlehem Steel, Standard Oil, and Chrysler Corporation, as well as 1.8 billion to regular banks.
John Jacon Raskob
A chairman on the board of GM, and financier of the Empire State building. He also wrote an article in Ladies Home Journal titled "Everybody ought to be rich". Was also a member of the American Liberty Leauge and opposed New Deal Programs.
October 28, 1929 - the leading stock-market index plunged 508 points - the largest one-day decline in history. Folowed by Black Tuesday. One these two days a stock lost a quarter of its value.
Massive bank failures had also triggered one of the worst economic recessions in US History in this year.
Federal Reserve System
This system with its 12 district banks were supposed to act as lenders of last resort. Membership of banks was cumpulsory. Created after the Panic of 1907. Was the kind of system that was supposed to withstand the Great Depression.
John Kenneth Galbraith
Historian who criticized the Federal Reserve for its "startling incompetence" for not speaking out against the expansion of call loans, and the incestuose relationship between commercial banks and the new investment bankers.
Baltimore and Ohio Railroad
One of the nations major railroad companies that suffered from loss of capital investment during the Great Depression.
The percentage by which manufacturing declined because of declining orders. The automobile industry also operated at 20% of pre-depression capacity. Steel plants also operated at 12% of capacity, while freight shipments were cut in half.
A progressively declining price level. Good by consumers perspective, but bad from a business's perspective. Might lead to a "liquidity trap"
Phenomenon in which the financial sector hoards cash, a very liquid asset, instead of lending it out because the real cost of credit to business was prohibatively expensive. Means the real value of debt(in actual goods) increases. Milton Freidman and Anna Schwarz have calculated that the real interest rate moved from 5.9%(1929) to 28.15%(1930), 15.5%(1931),16%(1932), and 3%(1933)
What some small communities(like,Grand Rapids,MI) used because money was scarce. Others used wood money(Tenino, WA). Helped permit local spending and were backed by the infamous(no discredited) Irving Fisher.
Friedrich Von Hayek
Austrian Economist who leads the Neo-Austrian school of economic thought. Argued that the federal Reserve did to much and inhibitedd the adjustment of the free market to its natural equilibrium. This view ignores that panics affected healthy financial institutions as well as bad ones.
The father of national income accounting, who contributed to the maldistrubution thesis by demonstrating that the richest 1% increased their share of the national disposable income from 11.8% to 18.9% in 1929.
John Maynard Keynes
British Economist who first propunded the idea that it was underinvestment first and foremost that caused the Great Depression.Private businesses had invested at 16% of the nations GDP though the 1920's peaking in 1926. However from 1929-1933 the net private investment levels were actually negative.
A whole school of economists in the Great Depression who suggested that there wa a fundamental barrier to economic growth. An alternative theory was suggested by economic historian Michael Benstein
Thesis by Micheal Benstein that states that the creation of new products, techniques, and employment opportunities necessary for economic recovery were not immpossible but lenghty because they ushered in a new economy, Opposite the Stagnation Threorists
Country which suffered the most during the Great Depresion because of the reparations payments following the Treaty of Versailles. 6 million were without work(40% unemployment rate), and suffered debilitating hyperinflation, which would help lead to the rise of Adolf Hitler and the Nazi Party.
Country of the Pound Sterling. Did not sugger as much as US during Great Depression its impact also varied widely through regions. The South and East was properous while the industrial North and West stagnated. in 1932 25% of workers were unemployed.
Getulio D. Vargas
The Brazilian middle class sopported the coup that lead to this pro-industrial nationalist to the presidency. He built a regime that was modeled after Italian Benito Mussolini's facist national state capitalism.
Country that appeared to be doing the best during the Great Depression. Industrial production more than tripled, while unemployment was virtually nonexistent though forced and rapid industrialization projects. Added to the allure of communism in the US and everywhere.
This good endangered Japan's export economy and was made my the American chemical industry, fueled Japan's aggression against China in Manchuria, which was Japan's first step out of the Leauge of Nations.
Japanese belief in acquisition of agricultural lands beyond Japanese borders which would provide protection from foreign capitalists.
Hitler's expansionist theory based on a drive to acquire "living space" for the German people. Implied elimination of native populations and the settlement of a supposedly german populus.
Shanty-towns that housed many who had lost everything. Shelters were built of old boxes and other discards. by 1933 1 million Americans were transients.
Organized Unemployed Inc.
A group in Minneapolis which in 1932 set up headquarters in an old girls hig school and organaized the jobless of the city to make clothing, shelters,and can produce.
Percentage by which farm prices dropped between 1929 and 1932. Increased th burden of fixed debt.
The main area of soil erosion in the US during the 1930's. Farmer's moved out of this region with the hope of growing fruits and vegetables in California, Mainly went by Route 66, and 15% of the travelers were actually white collar workers, and business owners.
Number of policeman that Los Angelos sent to the Oregon Border(800 miles north) in an effort to keep migration down.
Mississippi Flood of 1927
The most severe flood in US history that started with heavy rainfall and filled up tributaries to "the big muddy". Killed over 240 people and water levels went to 30 ft. in some places. Levee collapsed 12 miles north of Greenville MS and left 13,000 mainly black residents stranded. Sec of Commerce(HOOVER) did NOT provide relief by convinving local blacks that he would get civil rights once in the white house(Of course he didn't), Many blacks would switch parties and cast their first democratic votes for FDR in 1932.
A group of nine black youths who rode the rails and were unfairly accused of and punished for raping two white women on the train despite weak evidence. Became an international sentation and lightning rod for the American Communist Party, and the NAACP.
Sisters of the Road
Name for the female vagabonds(hobos) that were part of the total 250,000 young hobos who traveled the nation during the Great Depression.
Movie company that was able to make a small fortune during the depression by making a series of movies about the Hardy family staring Mickey Rooney as the teenage Andy Hardy.
Popular novelist during the Industrial Revolution who wrote "rags to riches" books praising the values of hard work. These kinds of stories died during the depression.
Portrayed herself in a series of successful films as an overtly sexual woman manipulating men through her attractiveness.Led to a campaign by churches pushing the movie industry to self censorship(NBC).Also lead to dominance of musical comodies with actors Fred Astiare and Ginger Rogers.
Director that celebrated simple values and criticized the wealthy and politicians in films like Mr. Deeds Goes to Town and Mr. Smith Goes to Washington
Constitutional Ammendment in 1920that prohibited the sale and distribution of liquour nationwide. Created a large underground crime boom. Repealed by the 21st Ammendment in 1933 by FDR.
Headed in Chicago by Al Capone, expanded immensly during the depression.
Journalist who said goverments were "the biggest racket of all".
National Hero whose son had been kidnapped and was found dead 6 weeks later despite the payment of a ransom. Galvanized the nation from 1932-1935, and highlighted American anxities about the period. Helped create the "modern" under FDR and were called G-Men.
Leading Hollywood Star who played Public Enemy in 1931 and in 1935 switched sides and was the leading actor in G-Men. Symbolized the end of greed and disillusionment and the rise of law and order.
Federal Farm Board
Agency that Congress created under Pres. Hoover's Guidance. Tried to buy up surplus crops, but did not restrict production and ended up owning several million dollars worth of wheat , while prices continued to fall.
National Credit Corporation
Created in 1931 under the persuasion of Pres. Herbert Hoover got the largest banks in the country at that time to use $500 million for buying up questionable assets.(Never could bring themselves to buy these bad assets) So 2300 banks failed right in front of their faces.
Presidents Organization of Unemployment Relief
Abreviated POUR, and created by Pres. Herbert Hoover. Tried to aid existing charities in their efforts. At that time Pres. Hoover insisted that American's were sufficently protected from hunger and cold.
Reconstruction Finance Commisiion
Creeated by Pres. Hoover in 1932. It represented the first significant departure from his voluntary principles. Was modeled after gov't agency established during WW1 and was authorized to use $2 billion for loans to banks(most into the biggest institutions). All of Pres. Hoover's relief was canceled out by the largest peactime tax hike in American history(1932 Revenue Act)
Pres. Hoover signed this act severly limiting use of injuctions against strikers which had been used many times during the Republican administrations of the 1920's
Writer who argued that Capitalism degraded people and ideas alike " by setting a cash value on them."
20,000 WWI veterans who marched on Washington demanding their $1,000 bonus pay before the 1945 due date. Pres. Hoover refused to meet them, so they set up there headquarters in Anacostia Flats. Pres. Hoover also ordered the complete removal of federal troops under the Command of General Douglas MacAurthur.
Area across the Potomac where some of the 20,000 veterans set up a shanty town waiting for the adjournment of Congess in July. Veterens were forecibly removed at Hoover's orders, was most unfogivable act of his presidency
US general in WWII and the Korean War, was called the living legend. Pres. Hoover ordered him to remove the bonus army from Anacostia Flats with guns and tear gas. One child ended up dying. He called the bonus army "communist agitators"
Emergency Farm Mortgage Act
Act that tried to slow down farm foreclosures, had been struck down in Louisville Joint Stock Land v Radford. The act had allowed debtors(Redford) to keep property for 5 years AFTER the bankruptcy. Supreme Court ruled that this constituted a violation of the 5th Amendment.
Louisville Joint Stock Land v Radford
Supreme Court case in which they decided that the Emergency Farm Mortgage Act was unconstitutional because it violated the 5th amendment, which prohibits the government's taking of private property without just compensation.
Supreme Court justice who said that NRA in Schechter v US was "delegation running riot".
New York Senator and National Labor Board Chairman who was concerned about wages stagnating. In 1934 he submitted a bill(Wagner Act) to congress that tried to close the loophole in NRA code that allowed employers to subvert the spirit of the law. Roosevelt authorized his own version of the bill which would create the National Labor Relations Board(NLRB). Only gave consent for Wagner Act when he learned that NRA was going to be overturned by Supreme Court.
Law passed in 1935 that aided unions by legalizing collective bargaining and closed shops, and by establishing the National Labor Relations Board, effectively ended company unions by making employer influence on labor organizations an unfair labor practice.
John L. Lewis
Boss of United Mine Workers(UNW) in 1935 formed Committee for Industrial Organization (CIO) after AFL Pres. William Green refused to organize unskilled laborers.
A broad coalition of antifascist groups on the left, of which the most important was the American Communist Party. Mainly associated with the CIO.
Memorial Day Massacre
Massacre in which 10 people were killed and many were injured when police broke up a steel workers strike(Republic Steel) in Chicago. Marked the turning point for unions.
United States labor leader who was president of the American Federation of Labor(AFL) after Samuel Gompers from 1924 to 1952 and who led the struggle with the Congress of Industrial Organizations(CIO).
Works Progress Administration
May 6, 1935- Began under Hoover and continued under Roosevelt but was headed by Harry L. Hopkins. Provided jobs and income to the unemplyed but couldn't work more than 30 hours a week. It built many public buildings and roads, and as well operated a large arts project.