11.6 Study Guide Flashcards
Explain what happened to stocks when the Stock Market crashed in 1929.
- In 1929, the stock market would crash as stocks bought on margin lost value and leaving investors unable to pay brokers.
- October 29, 1929, Black Tuesday, panicked investors tried to sell all their stocks
- One cause, was the amount of goods bought in the 1920’s on credit. So much was purchased that people were unable to pay back the credit.
What did many economists and politicians believe about the economy in the 1920’s?
The crash was unexpected because many economists and politicians of the 1920’s believed the U.S. had entered an era in which everyone would be rich.
Why did Great Plains farmers head to California during the Great Depression?
California lured the Okies with the promise of work in agriculture! (more work opportunities
What happened to the unemployment rate between 1929-1932?
Unemployment rose 5% to 25%
Explain what a Hooverville is…
Many became homeless and lived in “Hoovervilles”-shacks built by people who could not afford a home.
What does the term “Dust Bowl” refer to?
Is used to describe the area between Texas and SouthDakota that was damaged by drought and dust storms in the 1920s and ’30s
What caused the dust bowl?
Drought, wind storms, and poor farming techniques all led to the dust bowl.
To many Californians, what did the arrival of the Dust Bowl refugees represent?
Fewer jobs, more job competition, scarce jobs.
List the experiences of the Bonus Army in Washington D.C.?
- Started a Hooverville camp near the White House.
- A riot ensued in which the Bonus Army was driven out, their shelters burned down, and two were killed
- The Bonus Army never received their payment
What was the purpose of the Federal Reserve?
The reserve regulates the nation’s money supply and prevents bank failures.
Explain how the Federal Reserve contributed to the Great Depression.
After the stock market crash, the Federal Reserve system followed a policy that dried up credit.
Explain Roosevelt’s bank holiday.
FDR called congress into a special session and closed all remaining banks, declaring a “holiday”, to keep people from taking their money out.
What was the effect of the “Bank Holiday”?
The Bank holiday helped to restore trust in the banking system.
What new belief about government was reflected in the New Deal?
The New Deal will reflect the idea that the government should create programs to get people back to work.
How will Roosevelt try to help unemployed workers?
Roosevelt will try to help the unemployed workers by creating government-run job programs and building projects.
How did Roosevelt try to meet the demand for public aid?
Roosevelt asked congress to appropriate $500 million to be distributed by FERA-Federal Emergency Relief Agency.
Reconstruction Finance Corporation
Goal was to stimulate industry and create jobs.
TVA (Tennessee Valley Authority)
- Designed to create jobs.
- Built dams on the Tennessee River to turn water into electricity.
- This project will be so important because it will bring electricity to large numbers of rural Americans.
Why was the TVA project so important?
Effects of the TVA
- Creates thousands of jobs
- Creates hydroelectric power
- Creates flood control
AAA (farming/livestock)
AAA helped out farmers by paying subsidy, or financial assistance, to reduce crop and livestock production.
Soil Conservation Act of 1936 was…
To replace it, Roosevelt passed the Soil Conservation Act of 1936, which would not be funded by taxes, but instead, through the treasury.
The Truth-in-Securities Act
Truth-in-securities act-designed to eliminate fraud in the stock market.
AFL
The first lasting, and effective labor union was the American Federation of Labor (AFL) started in 1886.
Share the Wealth program
Sen. Huey P. Long’s “Share the Wealth” plan-all incomes over $5 million should be confiscated and divided up equally.
