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Chapter 07: Crash, Depression, and New Deal
Terms in this set (87)
Dow Jones and Industrial Average
The average of stock prices in major industries. The all time high was 381 in September 3, 1929. (page 508-509)
(pg. 509) A record 16.4 million shares were sold, compared with the average 4 million to 8 million shares a day earlier in the year....The day of the Great Crash of the Stock Market.
(pg.509) The collapse of the stock market
a span in which the economy grows then contracts. This span alternates between periods of higher growth and slower growth, or contraction. (pg. 509)
An economic decline marked by a falling output of goods and services. (pg. 511)
a particularly long and severe contraction in the economy (pg. 511)
(pg-512) An item of value that a borrower agrees to give up to the lender if the borrower cannot pay the loan back
What were the main causes of the Great Depression?
"The main cause of the Great Depression was a contracting economy,a falling output of goods and services.-personal debt- loss of wealth(pg.511)
How did the Great Depression affect other countries?
Other countries depend on the US for buying their goods, investments and loans. When the US could not do this other countries lost money and this started a global economic crash (pg.510)
What caused the Great Crash?
caused because of Black Tuesday when everyone wanted to sell their stocks, but had to sell it for a cheap price. They couldn't pay back their loans. Prices of businesses went down. (pg.509)
What was the attitude of most Americans in the 1920s about the economy?
Americans were thrilled,partying, investing in it, and not worrying. (p508-509)
What were the economic danger signs?
Speculated mania, extreme income inequality, farmers going bust, banks failing, overproduction & underconsumption, and republican economic policies of low taxes and high tariffs. (pg. 509-511)
shanty towns with shacks made of scrap materials which were shelters for the homeless (pg. 514)
As the result of a severe drought, the central and southern Great Plains were covered in dust (pg. 514)
Photographed migrant farm workers during the Great Depression: inspired government aid programs and Steinbeck's The Graph of Wrath ( pg. 517)
(p.517) In March 1931, nine black youths were arrested and accused of raping two white women on a train, without being able to hire a defense lawyer, eight were convicted and sentenced to death.
(pg. 517-518) A survivor of the great depression who wasted nothing and felt the hard effects in March 1930. Had to support his family by delivering ice, but lost his job and had trouble finding a stable job. Wilson and his family recovered right when World War II started.
Give specific examples of how the Great Depression affected City Laborers?
The great depression left 12 million people unemployed, or a quarter of the labor force. Lots of laborers had their wages reduced or were forced to work part-time. (pg.511)
Give specific examples of how the Great Depression affected Farmers?
"Because of failure to pay their mortgages, farm families lost their respective farms to banks. Landowners expelled sharecroppers and tenant farmers in the South. Farmers dumped thousands of gallons of milk and destroyed their crops as part of the protest against the low prices that cut their income. (Textbook page 514)"
Give specific examples of how the Great Depression affected Women?
The women had to feed their hungry children, working women were accused of taking jobs away from men, many working married women were fired from their jobs, and women who had jobs were paid low wages. (Page 516-517)
Give specific examples of how the Great Depression affected Children?
suffered from long-term effects of poor diet, insufficient medical aid, had to quit high school (PG 515 -516)
Give specific examples of how the Great Depression affected Men?
"(pg 516) Living conditions declined as families moved in together. Men who had lost jobs or investments often felt like failures because they could no longer provide for their families.
Give specific examples of how the Great Depression affected Racial Minorities?
It put groups of Americans in competition with one another for a declining number of jobs, the different racial groups discriminated against jobs being filled by another race than them sleves. A minority is a group in which is thought to be different from a larger group (Page 517)
Describe how poverty continued to spread during the Great Depression?
Banks close with your savings account and you loose all your money. Parents lose jobs and cannot pay rent or mortgage. Farmers suffered to low crop prices and could not pay their mortgages. Almost all of the soil blew out of the Midwest, which is named The Dust Bowl. Businesses suffer because customers cannot afford their products and they eventually close after laying off their workers. (pg513-515)
What social problems were caused by the Great Depression?
It caused widespread poverty, a raise in the amount of homeless people, a large impact on the health of Americans, and a huge raise in the amount of unemployed people. (pg 513-515)
What caused the Dust Bowl?
A huge drought, dust storms called "Black Blizzards", and farming practices such as plowing. (pg. 514-515)
What did many farmers in the area of the Dust Bowl do to find work?
many moved to California and became farm laborers (textbook pg. 514- 515)
How did increased poverty lead to a decline in public health?
People who could not afford food or shelter got more sick easily. Children suffered most from the long-term effects of poor diet and inadequate medical care.
What was the main purpose and the effect of Dorthea Lange's photography?
The photography captured the time of the Depression(page 517).
auctions in which farmers would bid mere pennies on land and machines auctioned by the banks in order to help their struggling neighbors (pg. 521)
repealed Prohibition, ratified by the end of the war (pg. 522)
Monopoly (the game)
A board game created by Charles B. Darrow. A fantasy game that allowed yo to live fantasy of getting land, house, and hotels that you could rent or sell to fellow players (pg. 521).
a homeless person without a job who road the railroads to find work (google definition)
Why were many inspired to see the construction of the Empire State Building?
"It was a dramatic symbol of hope for many after the Great Depression (pg 523)
Why was the 21st Amendment passed?
The 21st amendment was passed because it was a failed social experiment. Crime increased when gangsters got money from bootlegging. (Page 522)
The highest import tax in history that caused international trade to come to a halt. (pg 525).
Reconstruction Finance Corporation
This gave the government credit to a deal of institutions such as large industries, railroads, and insurance companies. This also lent money to banks so they could extend loans.(pg 525)
20,000 jobless World War I veterans and their families encamped in Washington, D.C. who wanted pensions bonus promised to them for 1945 (pg. 526-527)
Franklin Delano Roosevelt
(Pg. 527-529) He is a democratic president, nominated in 1932. Promised a way out of the depression. He changed the society in the way of living. Set up unemployment commission during the depression. He was also a governor of New York.
Married into a very wealthy family, the niece of Theodore Roosevelt and married her distant cousin Franklin D. Roosevelt. She worked for many causes including birth control and better conditions for working women.
(p. 527) proposed on March 2, 1932, purpose was to shorten the period between election day in November and when the president takes office
A "New Deal"
(pg. 527) FDR's relief, recovery, and reform programs designed to combat the Great Depression.
Why was the Election of 1932 a significant turning point in American politics? What was the new approach taken by FDR and the Democrats?
(Page 528) It went from being a passive to active government. They started taking more active role in peoples lives.
Why did Roosevelt win the Election of 1932 by such a huge margin?
Most of the people disliked Hoover because he was too passive. (Pgs. 528-529)
From what groups did FDR receive significant support in the Election of 1932?
Urban workers, coal miners, and immigrants of Catholic and Jewish descent (page 528)
A new term made by FDR to help the Americans escape the Great Depression with relief, good recovery, and reform programs of FDR's administration (pg. 537)
First Hundred Days
A program in which the first 100 days of a presidency is sampled to measure his success starting at the inauguration in March through june 1933, President Roosevelt created jobs and stimulated economic recovery. The programs he used were based on the work of federal agencies that had control over the economy in World War I."
Public Works Program
Public works programs are projects funded by the government to build public facilities . The Federal Emergency Relief Administration (FERA) put federal money into these programs to help people out of work. One of these programs was the Civil Works Administration (CWA), established in November 1933. The CWA gave jobs building or improving parks, roads, airports, and other facilities. These public works programs helped put unemployed people back to work, maintain forests, parks, and beaches, end the sale of tribal lands of Native Americans, and give Native Americans jobs to build hospitals, irrigation systems, and schools. (Page 538-539)
Civilian Conservation Corps
FDR's favorite program. It was established March 1933. The corps put 2.5 young unmarried men to work in public places and infrastructural jobs. The pay was $30 a month but to make up for it they had free shelter, food, and medical care. (PG.539)
Agricultural Adjustment Administration
The Agricultural adjustment Administration or (AAA), set up in 1933, tried to raise farm prices by paying subsides, or government financial assistance, to farmers who cut production of certain crops. They hoped that lowering the supply of these farm products would cause their prices to rise. (P.540)
Tennessee Vally Authority
This was a public works project that created jobs in one of the countries least developed region. By reactivating a hydroelectric power facility they were able to provide very cheap power,flood control, and recreational opportunities to the entire Tennessee River valley.
Second New Deal
In 1935 President Roosevelt launched a new burst of activity. Historians called this period and the legislation it produced the Second New Deal or the Second Hundred Days. The Second New Deal in part was a response to critics who said he wasn't doing enough for ordinary Americans. The Second New Deal included more social welfare, stricter controls over businesses, stronger support for unions, and higher taxes on the richest Americans. (pg.542)
Wagner Act was a law passed in 1936 that aided unions by legalizing collective bargaining (process in which workers negotiate as a group with employers) and closed shops, and by establishing the National Labor Relations Board. (pg 543)
workplaces open only to union members (pg 543)
Social Security System
In 1935, Congress established the Social Security Act. The act established a Social Security System to provide financial security, in the form of regular payments, to people who could not support themselves. This System offered 3 types of insurance: Old-age pensions and survivors' benefits, Unemployment insurance, Aid for dependent children, the blind, and the disabled.(pg. 544)
"(Page 536) The twentieth amendment nicknamed the "lame-duck amendment" changed the date of inaugural to January 20 instead of March 4"
"The FDIC was established when the Glass-Steagall Act was passed in 1933. FDIC is the acronym for the Federal Deposit Insurance Corporation which was made so if a bank went out of business, all the people that deposited money in that bank were promised that they would get their money back.(pg 537)
SEC also known as the Securities and Exchange Commission was used to regulate the stock market. The Federal Securities Act, passed in May 1933, required companies to provide information about their finances if they offered stock for sale. But Congress also gave the Federal Reserve Board power to regulate the purchase of stock on margin. (Page 538)
Federal Emergency Relief Administration
"An agency which provided funds to state relief agencies, it was a way for FDR to help overburdened local relief agencies. (Pg. 539)
National Industrial Recovery Act
An act of June 1933 that sought to bolster the prices of industrial items. The NIRA established the National Recovery Administration which set out to balance the unstable economy through extensive planning. The planning included regulating wages, contrling working conditions, production, and prices, and set a minimum wage. Today, the NIRA is still visibl through the work carried out by its Public Works Administration which lauched projects ranging from the Grand Coulee Dam in Washington, to New York City's Triborough Bridge, to the bridge that connects Key West to the Florida Mainland. (p. 539-540)
Brain trust refers to a group of advisors to a politician or government.
The 1936 Election
The candidates of the 1936 election were Alfred M. Landon (republican) and Franklin Delano Roosevelt or nicknamed FDR (democrat). No one expected that Landon would win the popular vote nor that FDR would win by such a huge landslide. FDR won the electoral college by a margin of 523-8. The only states that FDR did not win was Maine and Vermont. This proved that americans agreed with FDR on the New Deal, yet there were still many critics with their own ideas.
Eleanor Roosevelt was apart of the FDR she supported the new deal and traveled a lot for her husband whose disability made traveling difficult. She was the first lady.Her actions in protesting received publicity and no one missed its symbolism.She lived until 1962 and was born in 1884.(pg 541-542)
What steps did President Roosevelt take during his first few months in office to reverse the trend of the Great Depression?
In the first hundred days of his presidency, FDR knew that he would have to provide relief to the U.S. citizens, create jobs and stimulate the economy. His first step was to bring back the peoples confidence in banks. Next, he had to help local relief agencies. He convinced congress to establish the Federal Emergency Relief Agency which sent funds to agencies. The FERA put money into public work programs to support people who were out of work. FDR also established the Civilian Conservation Corps which help put men to work on cleaning up national parks. (p. 536-540)
How successful was the national Recovery Administration?
"The National Recovery Administration which was established by the NIRA was set out to fix the unstable economy through extensive planning failed and made the prices of products rise,more businesses failed causing more unemployment and many consumers stopped buying. The overall success of the NRA caused the economic situation to become worse than it was before the NRA.
What caused the New Deal to falter?
The Supreme Court attacked FDR's programs. In 1935, the Court declared the NIRA unconstitutional because it gave the President lawmaking powers and regulated local, rather than interstate, commerce. The following year, the Court also struck down the tax that funded AAA subsidies to farmers. Two of the most important elements of the New Deal had crumbled. pg.542
What were some important characteristics of the Second New Deal programs?
The Second New Deal was FDR's response to the critics that said he wasn't doing enough for normal Americans. This time The New Deal was focussed more towards the jobless and getting them on their feet. Many agencies set up to give the jobless jobs. One agency, the Works Progress Administration (WPA), created 8 million jobs for 8 years. The Farm Security Administration (FSA), gave loans to farmers and set up camps for the migrant workers. The REA, Rural Electrification Administration, gave remote areas electricity. The Social Security System was set up. This gave the elderly old-age pensions and survivors benefits, the jobless got unemployment insurance, and Aid for children, the blind, and the disabled. (Page 542-544)
What did FDR's landslide victory reveal about Americans' response to the New Deal?
America had been waiting an agonizingly long time for Franklin Roosevelt's presidency because many Americans had considered Herbert Hoover , president before FDR a " lame duck"- a leader whose authority is weakened because he or she is about to leave office while the Depression deepened. People were excited for the New Deal because it meant for rescuing the economy. FDR promised " bold , persistent , experimentation" other wish known as the New Deal.People welcomed the New Deal even though they were not sure what the New Deal was going to be. The tern New Deal came to refer to the relif, recovery, and reform programs of FDR's administration that were aimed at combating the Great Depression.FDR'S optimisim and willingness to expierment won him the support of the people. pg 537
A demagogue is a leader who manipulates people with half-truths, deceptive promises, and scare tactics. These people were often New Deal critics, such as Father Charles Coughlin, a speaker who used the radio to broadcast his message, and Huey Long, a powerful politician in Louisiana. Both of these leaders were anti-FDR and had different approaches to gaining power. Coughlin was reckless and a racist, while Long built his power not on racial attacks, but by helping the underprivileged.
Nationalization is when a government takes over and ownership of banks and the redistribution of people's wealth. pg.548
Paying out more money from the annual federal budget than the government receives in revenues; Spending more money than you take in. (pg. 550)
What effects did the New Deal have on women and minorities?
One of the effects of the New Deal on women and minorities were that by the NRA codes, were permitted lower wages for work in almost a quarter of all the cases. Another is that they were not the first choice in relief and job programs. African Americans were not offered jobs at a professional level. An example of the effects on minorities is that in African American neighborhoods, white- owned businesses would only employ whites. (pg.545- 547)
Why did the American Liberty League view the New Deal as unconstitutional and un-American?
The American Liberty League charged the new deal plan because they believed that the plan was limiting individual freedoms. They thought that certain program that the New Deal Plan brought in, such as compulsory unemployment insurance, resembled "Bolshevism."(pg. 547)
Describe FDR's "court-packing" maneuver and its outcome.
In February 1937 FDR proposed a major court reform bill. FDR asked congress to let him appoint six additional additional justices to lighten the burden on the aging justices , but his real intentions was to "pack" the court with judges supportive of the New Deal. FDR received a negative reaction from all sides, strong opposition forced FDR to withdraw his reform bill. In the end FDR still ended up with a court that sided with him. (pg.551)
"(pg554) In August 1937, the economy collapsed because of massive government spending which led it into a recession. Recession is a period of slow business activity. "
National debt, also known as federal debt, is the money the government owes to its bondholders. This debt is the result of the government borrowing money from people by letting them purchase bonds. In the 1930s, the government had to give out bonds at times because of a rising and falling deficit (a deficit occurs when the government spends more money than is in its annual budget). National debt was also created during this time period because of the government borrowing money for New Deal programs. (Page 550)
it is income-the government borrows this from the people when they dont keep up with their expenses. when the gov had to fund the New Deal they borrowed huge amounts of money so the national debt rose from $21 billion to $43 billion in just 7 years. (page 554)
Coalition is the alliance of groups with similar goals. The term coalition is used in chapter sixteen for the labor unions and how they all came together. The Committee for industrial Organization had Four million members and changed their name to the Congress of Industrial Organization. All the labor union groups worked towards the same ideals and performed strikes. ( Pg 554)
A strike in which laborers stop working but refuse to leave the building. (pg 555)
The Grapes of Wrath
"The Grapes of Wrath was a powerful tale about Dust Bowl victims who travel to California in search of a better life. It was written by John Steinbeck in 1939. (Pg. 556)"
The Wizard of Oz
The Wizard of Oz was created to distract people from the Great Depression. It allowed viewers could escape to a whole new world. It was released in 1939. (pg. 557)
Explain how the New Deal did not "cure" the Depression.
It didn't bring in a large amount of income. Plus lots of people claimed that it gave too much power to the government. (pg. 542)
What was the New Deal's impact on Labor Unions?
In 1935, Congress passed the National Relations Act, called the Wagner after its leading advocate, New York Senator Robert Wagner. It legalized such union practices as collective bargaining and closed shops, which are workplaces open only to union members. It also outlawed spying on union activities and blacklisting, a practice in which employers agreed not to hire union leaders. The act set up the National Labor Relations Board (NLRB) to enforce its provisions. (pg. 543)
How did government projects help support writers, artists, musicians, and others during the Great Depression?
The government supported artist, musicians, and others with the help of the FDR, who thought that arts were not luxuries and that people should have to give up in hard times. For this reason he earmarked WPA funds to support unemployed artists, musicians, historians, theatre people, and writers. The Federal Writers' Project , established in 1935, assisted more than 6,000 writers. Historians with the project surveyed the nation's local government records, wrote state guidebooks, and collected life stories from about 2,000 former slaves.
Why did the United States slide back into recession in 1937?
"In 1937, the United States slid back into a recession because of The New Deal, which was a response to critics who said President Franklin D. Roosevelt wasn't doing enough for ordinary Americans. The government spending cuts also contributed to the recession of 1937.(pg.554)"
What did critics dislike about the Social Security System?
They disliked it because it penalized successful, hard working people by making them pay into the system. Also people thought the country was going towards a militaristic regimented society when people were getting assigned social security numbers. (p. 547)
List a few lasting effects of the New Deal.
Though the New Deal did not solve all the problems of the Great Depression, it improved many things, such as voters began to expect a President to solve problems and they allowed government to intervene more in their lives. Some of the federal agencies and many of the bridges, dams, tunnels, public buildings, and hospitals made during the New Deal still exist. Also, social security benefits improved. (Pg. 558-559)
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Chapter 01: US Constitution and Government
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Chapter 03: America Becomes a World Power