America Unit 2 Flashcards
Why did people buy stocks and shares before 1929?
Thought stocks would keep rising
Companies were successful and there was more demand so they made a lot of money
People had more money to spare (cycle of prosperity)
People could buy on margin so they could buy stocks they couldn’t afford
Why did share prices begin to fall in 1929?
There was a surplus of goods (overproduction) so prices went down
High tariffs meant people couldn’t afford to pay for goods
Unequal distribution of wealth
What happened when prices of shares went down in 1929?
Investors panicked and started to sell their shares (they feared prices would fall more) - led to a collapse of the stock market
When were 13 million shares sold? What was this also known as?
24th October 1929 - 13 million shares sold
Known as Black Thursday
When were 9 million shares sold? What did this lead to?
28th October - 9 million shares sold
Panic increased
When were 16 million shares sold? For how much were they sold for?
29th October - investors sold 16 million shares
They were sold for whatever price they could
On average, how much did shareholders have in 1929?
$8 million
When did army veterans and their families march on Washington? How many?
1932 - 20,000 veterans and families marched
Why did veterans march on Washington?
They were promised a bonus for fighting in WWI
They wanted this bonus now after the Wall Street crash - but wasn’t due until the 1940s
What was an effect of the Wall Street Crash?
March on Washington
Unemployment
How many workers were laid off from the steel industry after the Wall Street Crash?
225,000
What did people do in the banks after the Wall Street crash?
Everyone went to withdraw savings
How did the crash affect lives of ordinary people?
People lost all their money - sold everything they had
Some lost their homes
Suicide rates rose
Was there any financial support from the government in 1929? Why?
No - there was no social security
Republicans believed in Laissez faire attitude
How were farmers affected by the Wall Street crash?
There were droughts and sand storms
24,000 miles of land lost
Many moved to California
They didn’t sell much as they overproduced crops but now no one could buy them
What party was gaining popularity in early 1930s? What happened as a result?
The communist party
Many Americans fled to the Soviet Union
How many Americans fled to the Soviet Union for work?
100,000
What happened in Germany in early 1930s?
Mass unemployment
Street fights
Needed a powerful leader
Nazis marched and impressed people
What percentage of people in America were unemployed by 1933?
25%
What did Roosevelt do in his first 100 days in government?
Closed banks
Helped farmers
Pumped money into the economy
When were ports closed and strikers killed in strikes in America?
1934
How many strikes happened in 1934?
More than 1800
Who was Huey Long?
A senator and former Louisiana Governor
What did Huey Long say he would do?
Talked about how he would redistribute wealth (strip rich and give money to poor)
What happened in the second hundred days of Roosevelt’s leadership?
Reshaped Americans lives
Opened social security
Jobs were given out
What did families rely on in the early 1930s? Why?
Soup kitchens and charities
Lack of support from the government
What were Shantytowns nicknamed?
Hoovervilles
How many men were trying to sell apples in New York in 1932? What did this show?
6000 men
Showed that people were doing anything to get money - average wage fell
What is a famous quote that sums up the Americans opinions on Hoover?
‘In Hoover we trusted, now we are busted’
Why was Hoover successful?
1932 Emergency relief act - provided help the the unemployed
Signed the Federal Home Loan bank acts - helped citizens buy homes
There were tax cuts in 1930 and 1931
Bought farmers crops
Why was Hoover less successful?
Refused to accept that there was a problem till it was too late
Said that support and social security wasn’t responsibility of government
Criticised for the way he dealt with the bonus army march
Refused to change policies e.g. Laissez faire
What was the Emergency relief act 1932?
Provided help to the unemployed
What was the Bonus Army?
When WWI veterans and their families demonstrated in Washington in 1932 to have a bonus promised in 1924 for payment in 1945
What was Hoovers response to the bonus army?
Refused to meet them
Appointed General MacArthur to handle the situation
Who did General MacArthur think the bonus army were?
Communists
What did General MacArthur do to the bonus army?
Used tear gas
Burned their camps
How did Hoover react to what General MacArthur did to the bonus army?
Supported him - made him unpopular
What party did Hoover represent?
Republican
What party did Roosevelt represent?
Democrats
What did Hoover promise in the 1932 election?
Tariffs
Stop immigration
Pay the bonus army
Repeal of prohibition
What did Roosevelt promise in the 1932 election?
The new deal
Decrease tariffs
Justice for war veterans
Increase employment
What were the results of the 1932 election?
Roosevelt won 42 out of 48 states
Roosevelt won by 7 million votes
How was the 1932 election significant in history?
Biggest defeat in presidential history
Why was Roosevelt able to win the 1932 election?
Would help banking crisis - people wanted this as they needed money
Would increase employment
Would provide more transparency - fireside chats - every Sunday he updated the Americans
Hoover was disliked and believed to have not done enough
What does FERA stand for?
Federal Emergency Relief Administration
What does CCC stand for?
Civilian Conservation Corps
What does AAA stand for?
Agriculture Adjustment Administration
What does PWA stand for?
Public Works Administration
What does HOLC stand for?
Home Owners Loan Corporation
What are the 5 alphabet agencies?
FERA
CCC
AAA
PWA
HOLC
What did the FERA do?
Met the urgent needs of the poor
$500million was spent on soup kitchens, blankets, employment schemes and nursery schools
What did the CCC do?
Helped unemployed young men
2.5 million men were helped
What were limitations of the FERA?
Didn’t help find homes for the homeless
What were limitations of the CCC?
Didn’t help everyone - only men
Didn’t really help those who were homeless
What did the AAA do?
Tried to reduce farm production to make prices increase
Helped farmers conserve and protect soil
Helped farmers mortgages
What were the limitations of the AAA?
Only helped farmers
Why was the AAA needed?
Modernisation put farm labourers out of work
What did the PWA do?
Used government money to build schools, roads, dams, bridges and airports
Created millions of jobs
What were the limitation of the PWA?
Didn’t help homelessness
What did the HOLC do?
Took over mortgages of middle class Americans who struggled to pay their mortgages
Done so banks didn’t repossess homes
1933-1936 - rescued 20% of American home owners
What were the limitations of the HOLC?
Only helped home owners
What were the alphabet agencies?
These were organisations set up by FDR to improve the American economy and the everyday lives of the American people
What is Roosevelt’s famous quote about fear?
“The only thing we have to fear is fear itself”
What were the 3 promises/main goals of the New Deal?
Relief, recovery and reform
Relief - for the poor and unemployed
Recovery - of the economy back to normal
Reform - the American financial system to prevent another depression
How did Roosevelt intend to solve the Great Depression?
Through the new deal
When did Roosevelt say his promises to the Americans and state how he intended to solve the depression?
Inaugural Speech 1933
In general, were the alphabet agencies effective?
Mostly effective - helped many Americans and improved the economy
What was the New Deal?
The name given to all of the policies introduced by Roosevelt to try improve life for Americans after the Great Depression
What was “Relief, Recover, Reform”?
The things the Roosevelt promised he would achieve with his New Deal
What were the first 100 days?
During this time, FDR worked around the clock with his advisors to ensure new policies could be introduced quickly
Who were the Brains trust?
The nickname given to Roosevelt’s closest advisors
What was executive power?
Something FDR was given by Congress to allow him to introduce measure more quickly. Usually only reserved for presidents in an emergency
What were fireside chats?
When FDR used the radio to tell the public what he was doing and reassure them during the New Deal
An estimated 60 million Americans tuned in every Sunday
What was the emergency banking act? When was it?
March 1933
All banks closed
5000 banks were reopened under government guidance
Helped solve the banking crisis
What was the Wagner Act?
Forced all employers to allow trade unions
Improved workers rights
What was the social security act?
Provided state pensions for the elderly
Set up unemployment insurance
Which 3 groups opposed the New Deal?
- Supreme Court
- Republicans
- Radical politicians
Why did the Supreme Court oppose the new deal?
It was mainly led by republicans
They thought the new deal was unconstitutional and against democratic beliefs
What did the Supreme Court argue the new laws were doing?
Extending the role of the federal government too far
Undermined power of individual states
How did Roosevelt respond to the Supreme Court?
Threatened to create 6 more Supreme Court judges who would support his policies - to outvote Republican members
Why did the republicans oppose the new deal?
Thought it interfered too much against business
Went against Laissez faire
What did the Republicans say Roosevelt was?
A dictator - was attempting to control too many aspects of Americans lives
Who is an example of a radical politician?
Senator Huey Long
What was Huey Longs scheme called? What did he want to do?
Called ‘share our wealth’
Wanted to limit personal wealth to a maximum of $3 million
Why did Huey Long oppose the new deal?
Said it didn’t do enough to help disadvantaged groups
What were the main successes of the New Deal?
Restored faith for Americans
200,000 African Americans benefited from the CCC
Created millions of jobs
Stabilised the banking system
How many African Americans were helped by the CCC?
200,000
What were the main failures of the new deal?
6 million were still unemployed by 1941
Economic recovery wasn’t Roosevelt’s main aim
Critiqued as it was said to not have done enough for disadvantaged groups e.g. Huey long
What were the ways that the Second World War helped the American economy?
Lend lease
Willing industrialists
Extra workers
All available women
What was the Lend Lease programme?
Sent arms, good, medicine and more to USSR, China and France
How did the Lend Lease programme help the economy?
Received $50.1 billion after war
Products needed to be made in a factory so there was more employment - reintroduced cycle of prosperity
How many people were still unemployed by 1941?
6 million people
Who were the willing industrialists?
Led by leading industrialists
Gave advice on how to meet war production needs
Set up the war production board by William Knusden
How did the Willing Industrialists help the economy?
Large firms helped them - they had more money to support them
Who were the Extra Workers?
They worked for large scale production
Increased employment
How did the extra workers help the economy?
Increased employment - people had more money to spend
Cycle of prosperity could start again
Who were the all available women?
Women who worked during WWII
Increased employment for women in many industries
Helped achieve more equality
How many women worked before the second world war?
12 million
How many women joined the armed forces during WWII?
Over 300,000
How many women joined the workforce during WWII?
7 million
How did the all available women help the economy?
More women working - increased employment
When were the USA producing over half of the weapons made in the world?
1944 making over half of the weapons in the world
How many African Americans found work during WWII?
Over 750,000
In general, what was the impact of the Second World War on the America?
Ended unemployment - promised in the new deal & reintroduced cycle of prosperity
Farmers benefited - finally their food was being bought at large scales
African Americans, women and other groups began to have more equality
What was the Home Front?
The civilian effort and activity at home in support of a war waged overseas
What impact did WWII have on the home front in America?
Food, gas and clothing rationed
Women found employment as electricians, welders and riveters in defense plants
Japanese Americans had their rights as citizen stripped from them - they were against the allies
People in the U.S. grew increasingly dependent on radio reports for news of the fighting
How were African Americans positively affected by WWII?
Over 1 million African American soldiers joined the armed forces or were conscripted
They began to experience less discrimination and segregation mainly in the North - the NAACP increased in numbers from 50,000 to 500,000
750,000 found work
How were African Americans negatively affected by WWII?
Didn’t have very important jobs
Still faced some discrimination especially in the south
How were women positively affected by WWII?
1 in 3 aircraft workers were women - took men’s jobs
1 in 2 workers were women in munitions and electronic industries
Nearly 200,000 joined the armed forces
The number of married women who worked rose by 15%
How were women negatively affected by WWII?
Once husbands came back, they still expected women would be housewives
Some still opposed these changes
How many people became homeless due to the Great Depression?
2 million
