US History: Great Depression Test Prep
Terms in this set (37)
Stock market crash of 1929
In 1929, the stock market crashed and caused a world wide Depression; the result of speculation of stocks and commodities, an investing "fever," in America, overproduction of goods and under consumption of American goods. Most Americans had some sort of wealth tied up in the Stock Market, so the bottoming out of that in conjunction with many banks closing and savings being lost completely, the economy of America was destroyed.
The federal Reserve Bank kept interest rates low, making it easy for businesses and individuals to take out loans. This loose money encouraged people to go into debt.
Demand by a broker that investors pay back loans made for stocks purchased on margin.
Uneven distribution of wealth
This uneven distribution caused prices to go up on products as the factories put them out in mass, but the everyday laborer was increasingly unable to buy the products. The top 1 percent of Americans each had a wealth equal to the bottom 42 percent combined. That same 1 percent controlled 34 percent of all savings. During this period leading up to the Great Depression, the prices of farm products fell about 40 percent, making things very hard for farmers. Many farmers had to leave their farms or rent out portions to be able to pay the mortgage on their farms.
From as early as the middle of the 1920's, American farmers were producing far more food than the population was consuming. As farmers expanded their production to aid the war effort during WWI they also mechanized their techniques, a process which both improved their output but also cost a lot of money, putting farmers into debt. Furthermore, land prices for many farmers dropped by as much as 40 per cent - as a result, the agricultural system began to fail throughout the 20's, leaving large sections of the population with little money and no work. Thus, as demand dropped with increasing supply, the price of products fell, in turn leaving the over-expanded farmers short-changed and farms often foreclosed. Industrially, a lot of people were buying things like cars, household appliances and consumer products. Importantly, however, these purchases were often made on credit. And as production continued apace the market quickly dried up; too many products were being produced with too few people earning enough money to buy them
First Hundred Days
This term refers to March 4 to June 16, 1933. During this period of dramatic legislative productivity, FDR laid out the programs that constituted the New Deal. Today, presidents are often measured by their actions in the same period of time.
Group of expert policy advisers who worked with FDR in the 1930's to end the great depression and were responsible for writing FDR's speeches and authoring much of the New Deal legislation. Three most important men, Raymond Moley, Rexford G. Tugwell, and Adolph A. Berle, Jr.
Roosevelt's Secretary of Labor and first woman cabinet member in U.S. history. Impressed by her ability and accomplishments, President Franklin Roosevelt offered Frances Perkins the position of Secretary of Labor. As Secretary of Labor, Perkins took on the responsibility of developing solutions to the problems being caused by the Great Depression. Most pressing was the fact that between 13 and 18 million Americans were unemployed.
A series of thirty evening radio addresses given by United States President Franklin D. Roosevelt between 1933 and 1944. Although the World War I Committee on Public Information had seen presidential policy propagated to the public in mass, "fireside chats" were the first media development that facilitated intimate and direct communication between the president and the citizens of the United States. Roosevelt's cheery voice and demeanor played him into the favor of citizens and he soon became one of the most popular presidents ever, often affectionately compared to Abraham Lincoln. On radio, he was able to quell rumors and explain his reasons for social change slowly and comprehensibly.
Causes of economic troubles; government spends more money than it collects in taxes and this causes national debt.
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. disagreed with FDR. was assassinated.
A financial crisis in which a large number of customers simultaneously attempt to withdraw their money from a bank out of fear that the bank will close.
Closed all banks to stop bank runs and distress over money until gov. examiners could investigate their financial condition; only sound/solvent banks were allowed to reopen. All the banks were ordered to close until new laws could be passed. An emergency banking law was rushed through Congress. The Law set up new ways for the federal government to funnel money to troubled banks It also required the Treasury Department to inspect banks before they could re-open.
A Catholic priest from Michigan who was critical of FDR on his radio show. 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.
Attempt by Roosevelt to appoint one new Supreme Court justice for every sitting justice over the age of 70 who had been there for at least 10 years. Wanted to prevent justices from dismantling the new deal. Plan died in congress and made opponents of New Deal inflamed.
(HH) 1930 , charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliation, Highest tariff ever put in place. FDR and the then-Democratic Congress attempted to lower tariffs with the Reciprocal Trade Agreements Act of 1934. As the name suggests, this allowed the President to negotiate tariff reductions on a bilateral basis, and also treated such tariff agreements as regular legislation, requiring a majority, rather than as a treaty that required a two-third vote.
President of the United States from
1929-1933. In office during beginning of the Great Depression. He was blamed by many to be the cause of the great depression. Although he had congress put labor support program into effect he didn't do enough and it was all to late to stop the depression from continuing.
Shanty towns that the unemployed built in the cities during the early years of the Depression; the name given to them shows that the people blamed Hoover directly for the Depression.
in the 1930's parts of Oklahoma, Kansas, Colorado, New Mexico, and Texas that were hit hard by dry topsoil and high winds that created blinding dust storms; this area of the Great Plains became called that because winds blew away crops and farms, and blew dust from Oklahoma to Albany, New York.
Second Hundred Days
The high point of lawmaking in the New Deal. There were three goals during this time. 1. Strengthen national commitment to create jobs. 2. To provide security against old age, illness and unemployment. 3. To improve housing conditions and clean out the slums. President encouraged Congress to provide even more relief to farmers and workers. Roosevelt wanted to reach out to the "Forgotten Man".
An economic theory based on the ideas of twentieth-century British economist John Maynard Keynes. According to Keynesian economics, governments can spend their economies out of a depression by using deficit-spending to encourage employment and stimulate economic growth. He stated that government spending should increase during business slumps and be curbed during booms.
Term for the federal government after the New Deal that describes how the federal government mediates between various interest groups competing for advantages in the national economy.
Aid programs such as unemployment insurance, welfare payments, medical insurance, old-age benefits, and food subsidies. Basically government programs that protect people experiencing unfavorable economic conditions.
A famous photographer who wanted to be one at a young age, and, when the Depression started, landed a job to photograph the Dust Bowl, which have been recognized as showing the desperation and bravery during this time. She didn't stop documenting the suffering of people until her 1965 death, but her 1930's pictures are the most well-known.
1932 - Facing the financial crisis of the Depression, WW I veterans tried to pressure Congress to pay them their retirement bonuses early. Congress considered a bill authorizing immediate assurance of $2.4 billion, but it was not approved. Angry veterans marched peacefully on Washington, D.C., and Hoover called in the army to get the veterans out of there.
Franklin Delano Roosevelt
Commonly known by his initials FDR, was an American statesman and political leader who served as the 32nd President of the United States. A Democrat, he won a record four elections and served from March 1933 to his death in April 1945. He was a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic depression and total war. A dominant leader of the Democratic Party, he built a New Deal Coalition that realigned American politics after 1932, as his New Deal domestic policies defined American liberalism for the middle third of the 20th century.
Relief, Reform, Recovery
The New Deal philosophy.
A series of reforms enacted by the Franklin Roosevelt administration between 1933 and 1942 with the goal of ending the Great Depression.
Federal Deposit Insurance Corporation
(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. Started off at only 5,000 dollars.
Civilian Conservation Corps
a public work relief program for unemployed men so they have jobs. the men worked on jobs related to conservation and development of natural resources. employed over 3 million people. Young men to plant trees and build bridges.
Works Progress Administration
New Deal agency that helped create jobs for those that needed them. It created around 9 million jobs working on bridges, roads, and buildings. It was a part of the second new deal. 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.
Agricultural Adjustment Act
(FDR) 1933 and 1938 , Helped farmers meet mortgages. Unconstitutional because the government was paying the farmers to waste 1/3 of there products. Created by Congress in 1933 as part of the New Deal this agency attempted to restrict agricultural production by paying farmers subsidies to take land out of production.
Social Security Administration
An independent agency of the United States federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivors' benefits. To qualify for these benefits, most American workers pay Social Security taxes on their earnings; future benefits are based on the employees' contributions.
Tennessee Valley Authority
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.
Rural Electrification Administration
The Rural Electrification Act of 1935 provided federal loans for the installation of electrical distribution systems to serve rural areas of the United States. The funding was channeled through cooperative electric power companies, most of which still exist today. These member-owned cooperatives purchased power on a wholesale basis and distributed it using their own network of transmission and distribution lines.
National Labor Relations Board/Act
A 1935 law, also known as the Wagner Act, that guarantees workers the right of collective bargaining sets down rules to protect unions and organizers, and created the National Labor Relations Board to regulate labor-management relations.
National Recovery Administration
Government agency that was part of the New Deal and dealt with the industrial sector of the economy. It allowed industries to create fair competition which were intended to reduce destructive competition and to help workers by setting minimum wages and maximum weekly hours.