RUSH Chapter 14-15 Test Review

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Great Depression (1929-1941)
Economy plummets, unemployment skyrockets
Causes of the Great Depression
Prosperity built on a few industries;
Agriculture in trouble all through the 1920s;
Overproduction;
Unequal income distribution;
Too much easy credit;
Drop in international trade
Prosperity built on a few industries
Automobile, construction, and consumer industries
Agriculture in trouble all through 1920s
European agriculture is back, low crop prices, 1/3 of the economy
Overproduction
Factories produced more than consumers could buy
Unequal income distribution
Top 5% of the American population had 33% of the income
Too much easy credit
A lot of people bought goods, houses, and stock on credit, resulting in debt
Drop in international trade
High tariff rates cut off international trade relations
McNeary-Haugen Bill
A plan to improve American agriculture by raising domestic prices on farm products
Price Supports
Made sure that agricultural prices do not drop below a certain point
Hawley-Smoot Tariff
Highest tariff in American history; decreased world trade relations
Speculation
Throughout the 1920s the stock market was a "bull" market where buyers brought stock and hoped to turn around and sell it for a quick profit
Stock Market Crash aka "Black Tuesday" October 29, 1929
Stock market prices plummet, people don't buy new stocks, others lose their savings, $30 billion lost
Dust Bowl
Area from North Dakota to Texas; many farm families (Okies) migrate to the pacific
"Okies"
Term for poor farmers that were affected by the dust bowl who went west to find work
Grapes of Wrath
Novel about poor migrant farmers, the Joad family, and their journey west in search of a better life
John Steinbeck
Author of Grapes of Wrath
Herbert Hoover (1928-1932)
Relied on voluntary cooperation at the beginning of the Depression. He asked business to pledge not to cut jobs and labor to promise not to ask for raises or go on strike. He wanted unemployed Americans to get help from private charities or from state or local governments. These promises were broken because the Depression was too devastating. Opposed direct relief because this would cause the people to become too dependent on the national government
Reconstruction Finance Corporation
Hoover's major program to fight the Depression. RFC used trickle-down economics, bit it did not work. Conditions to borrow money from the government were so strict that businesses who met them probably did not need to borrow the money. Made Hoover more unpopular because he was giving money to big business rather than direct relief to the hungry / jobless people
Hoover's low popularity rate hit rock bottom when...?
When General McArthur disregarded Hoover's orders and used tear gas to break up the Bonus Army's camp
Trickle-Down Economics
Investing money in big business and the money will trickle down to the people through jobs
Deficit Spending
Spending more money for the economy than available
Direct Relief
Giving money and food to the people; dependent on the government
Work Relief
Giving jobs to the people; independent of the government
Hoovervilles
Shantytowns
Bonus Army
WW1 veterans got in DC in 1932 to support Patman Bill; wanted payment of bonus due in 1945; Hoover opposes bill, fears violence and calls U.S. army to disband the bonus army
1932 Presidential Election
Roosevelt (D) vs. Hoover (R);
FDR offered Americans a "New Deal";
Landslide for the Democrats;
FDR won 57.4% to Hoovers 39.7% popular vote;
Democrats also swept both sides of Congress
FDR
Elected president 4 times;
Grew up wealthy and privileged but had polio;
Married to Elanor Roosevelt
Elanor Roosevelt
Astute politician;
Served as the president's eyes and ears;
Spokesperson for minorities, women, and students;
Changed the role of the first lady
The Hundred Days
March-June 1933; first three months of FDR's first term; passed 15 pieces of major legislation during the Hundred Days
First action FDR took was the ___.
Bank Holiday
Bank Holiday
Closed all banks in the country for a few days so government bank examiners could check their account books
Glass-Steagall Banking Act
Established the FDIC and prohibited banks from playing the stock market
National Industrial Recovery Act (NIRA)
Designed to fix industry by creating recovery codes for each industry. The codes were to be written by boards that had government, business, consumer, and labor representatives on them. The codes set wages, hours of work, how much to be produced and minimum prices. Didn't work, unconstitutional in 1936
Agricultural Adjustment Act (AAA)
Raised farm income by cutting supply. Declared unconstitutional in 1936
Federal Deposit Insurance Corporation (FDIC)
(FDI) A United States government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank
Bank Run
A situation in which many depositors simultaneously decide to withdraw money from a bank after the stock market crash
Second New Deal
A new set of programs in the spring of 1935 including additional banking reforms, new tax laws, new relief programs
Social Security Act
1935, guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health
Wagner Act / National Labor Relations Act
1935; Established National Labor Relations Board; protected the rights of most workers in the private sector to organize labor unions, to engage in collective bargaining, and to take part in strikes and other forms of concerted activity in support of their demands
Democratic Coalition
Roosevelt put together new groups who joined the Democratic Party and swept FDR to a record victory in 1936. The new coalition included urban areas, African-Americans, intellectuals, and laborers. Also held onto white southerners who were traditionally Democrats
Court-Packing Plan / Supreme Court Reorganization Plan 1937
Among other things, the plan called for adding six new justices to the Court which everyone knew was intended to give FDR the chance to appoint liberal justices to the Court. Plan was defeated but left an impact on the judges who were more lenient in their voting
Security and Exchange Commission (SEC)
New Deal agency established to provide a public watchdog against deception and fraud in stock trading
Civilian Conservation Corps (CCC)
Public works jobs for young men, 18-25 years old, worked building roads, developing parks, etc.
Tennessee Valley Authority (TVA)
A relief, recovery, and reform effort that gave 2.5 million poor citizens jobs and land. It brought cheap electric power, low-cost housing, cheap nitrates, and the restoration of eroded soil.
Works Progress Authority (WPA)
There were a number of work relief programs in the New Deal, but the largest was the WPA which employed an average of 2 million workers between 1935-1941. It built airports, libraries, post offices, roads, dams, and airports
Conservative Critics of the New Deal
They believed it was endangering the free enterprise system
Huey Long / "Share the Wealth"
Presidential hopeful, senator, his "Share the Wealth" program advocated a sweeping redistribution of national income from the wealthy to the poor
Dr. Townsend
Championed his recovery plan, which would pay $200 a month to every citizen over sixty who retired from employment and promised to spend the money within each month
Father Charles Coughlin
A Catholic priest from Michigan who was critical of FDR on his radio show. His radio show morphed into being severly 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.
Social Effects of the Great Depression: African-Americans
Last hired, first fired - the African-American unemployment rate was 50% during the Depression. They were often excluded from state and local relief programs, but did get some low-paying jobs from the WPA and CCC
Social Effects of the Great Depression: Mexican-Americans
White pushed many Mexican-Americans out of agricultural jobs in the Southwest. They were also discriminated against in New Deal programs
Mexican Repatriation Act
Due to the lack of jobs, it is estimated that 2 million Mexican-Americans were forced to relocate to Mexico
Women in the Great Depression
New Deal programs paid women lower wages. Number of women in workplace rose since women looked for jobs to help families if husband was unemployed
Families in the Great Depression
The strong the family, usually the better it withstood the pressure of the Depression. If the family structure was weak before the Depression, then the additional problems seriously damaged the family. Desertion rates increased; birth rates declined; eviction and foreclosure rates were at all-time highs
Long-lasting Effects of the Depression
Expanded the size and power of the federal government; Laid the basis of the social welfare state;
Federal gov. had a responsibility to regulate the economy;
FDR created Democratic coalition, in place until 1960s