Business failure, High unemployment, and Falling Prices
Causes of the Great Depression are
Problems in Industry, Problems in agriculture, increased in consumer debt, Uneven income distribution, Poor investment, and Lack of government help
Problems in the Industry was a result of
Lack of demands for goods so companies laid off workers
Problems in the agriculture was a result of
Overproduction by farmers contributed to falling prices.
Consumers' Debt was a result of
Easy credit on installment plans increased debt for many families
Uneven Distribution of income was a result of
In the 1920s, income of the wealthiest Americans families rose much more than the average family.
Poor investment practices was a result of
Banks work by using money from depositors. They loan the money to businesses. Some of the Banks invested their money into unsound practices.
Ineffective Government response was result of
Laissez-Faire government. Government did not give direct relief (cash or food for the poor)
Buying on the margin
Down payment to the broker
investing in stocks or property hoping that your gain riches.
Reconstruction Financial Corporation
It gave emergency loans to businesses and banks hoping to increase business
Hawley-Smoot Tariff act is
(Tax on foreign goods) Making foreign imported goods expensive.
Shantyhomes during the Great Depression
The Date of the Stock Crash
October 29, 1929. Black Tuesday
The effects of the Great Depression were
11,000 Banks failed and unemployment rate went up 25%
Mexican Reparation Act was
Forced deportation 250,000 Mexican immigrants
was a period of drought that hit the Great Plains
Wrote the Grapes of Wrath. It was about Okies becoming migrant workers in California.
a photographer that captured the image of the Great Depression
WWI veterans who marched on Washington demanding their $1,000 bonus pay before the 1945 due date.
informal talks given by FDR over the radio; sat by White House fireplace; gained the confidence of the people
Civilian Conservation Corps (CCC)
New Deal program that hired unemployed men to work on natural conservation projects
Agriculture Adjustment Act (AAA)
Paid farmers not to grow crops
FDIC (Federal Deposit Insurance Corporation)
the government agency that insures customers' deposits if a bank fails
Work Progress Administration
a main federal relief agency for the depression, it put relief workers directly on the federal payroll
Court Packing Plan
President FDR's failed 1937 attempt to increase the number of US Supreme Court Justices from 9 to 15 in order to save his 2nd New Deal programs from constitutional challenges
President during the beginning of the Great Depression. He believed in rugged individualism and laissez-faire capitalism.
Franklin D. Roosevelt
32nd US President - He began New Deal programs to help the nation out of the Great Depression, and he was the nation's leader during most of WWII
Tennessee Valley Authority (TVA)
a federal corporation established in 1933 to construct dams and power plants in the Tennessee Valley region to generate electricity as well as to prevent floods
Social Security Act
(FDR) 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
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.
As senator in 1932 of Washington preached his "Share Our Wealth" programs. It was a 100% tax on all annual incomes over $1 million and appropriation of all fortunes in excess of $5 million. With this money Long proposed to give every American family a comfortable income, etc
American physician and social reformer whose plan for a government-sponsored old-age pension was a precursor of the Social Security Act of 1935.