American's Experience Of The Depression And New Deal Flashcards
In what year was Hoover elected president?
1929
What year did the Wall Street stock market crash?
October 1929.
By ____ there were ________unemployed.
1933, 14 million.
Why did unemployment increase?
Businesses cut production further and laid off more workers. Wages were reduced. By 1933 average wages fell by 40%.
What was a Hooverville?
A shanty town of huts where migrants lived while they searched for work.
How did the depression affect farmers?
- Farm prices fell so low that huge numbers of farmers were unable to pay their mortgages. -Some farmers held pitchforks and hangman’s nooses to stop sheriffs from seizing their homes.
- Over farming and drought turned millions of acres into a dust bowl and drove farmers off their land.
How did the depression affect businessmen?
- Many had taken out loans in the 1920s which they could no longer afford to pay.
- Industries were producing far more goods than people could afford to buy-causing businessmen to become bankrupt.
- Many tried selling newspapers or apples in the streets, or offering to polish shoes.
What was Hoover’s response?
Refused to accept there was a major problem-‘prosperity is just around the corner’.
He tried to restart the economy in 1930&31 by tax cuts. He tried to persuade business leaders not to cut wages. He set up Reconstruction Finance company to help banks and stop them going bankrupt.
Tried to protect US industries using tariffs but this just worsened international trade.
Who were the bonus army?
June 1932.
Soldiers who fought in ww1 marched peacefully outside the White House asking for their war bonuses.
Hoover appointed General Douglas MacArthur to handle the situation. He ignored Hoover’s instructions to treat them with respect and instead used tear gas and burned their camps. This damaged Hoover’s reputation.
Why did Roosevelt win the 1932 election?
- Believed in an active government to improve lives of ordinary people.
- Had plans to spend public money on getting people back to work, as Governor of NY he had already been doing this in the state.
- Wasn’t afraid to ask advice from experts such as factory owners, union leaders and economists.
What was the New Deal?
-
What did Republicans think of The New Deal?
Argued they were doing too much. Believed the government should intervene as little as possible in business.
Who else opposed Roosevelt?
Some radical politicians. Some democrats argued he was not doing enough. They believed more action was needed to aid disadvantaged groups. Huey Long wanted to limit personal wealth to a max of $3 million in a scheme called ‘Share our Wealth’.
