Chapter 22 Flashcards
Stock Market Crash of 1929
People were buying into stocks, economy had a boom. The in the summer of 29, stock market continued to go down and down.
WHat else effected this?
American economy, including banking, manufacturing, farming, and international trade, were also surprisingly fragile. In1930, before even the initial impact of the Depression, 60 percent of American families had a total income of less than $2,000 per year, which was then considered the
poverty line
How did Hoover help the Great Depression?
Hoover asked business leaders to keep wages and prices up, asking bankers to pool resources to help weaker banks, encouraging farmers to form cooperatives and keep excess crops of the market. He cut taxes and supported federal public works such as construction of dams, bridges, and hospitals to stimulate the economy.
After 1932, he reluctantly agreed with a Democratic Congress to create
the Reconstruction Finance Corporation to
provide funds to keep banks and railroads
from bankruptcy as well
WHy did the depression worsen?
Farmers were reluctant to cut back on their crops if their neighbors would simply fill the gap. Bankers were too worried about staying solvent to bail out other banks. The Reconstruction Finance Corporation never invested enough to save all the banks that needed saving
Smoot-Hawley Tariff
a disastrous move that was designed to protect American industries by raising the cost
of imported goods, but resulted in a trade war as other nations also raised their tariffs
in return, leading to a huge decrease in international trade with devastating results
Hoovervilles
Shantytowns, sarcastically named after
President Hoover, in which unemployed and
homeless people lived in makeshift shacks,
tents, and boxes. Hoovervilles cropped up in
many cities in 1930 and 1931
Bonus Army
A protest movement of World War I veterans
in 1932 demanding early payment of service
bonuses not due until 1945 to help them
through the Great Depression and to provide
a stimulus for the economy.
How did Franklin Roosevelt win the 32 election against Hoover?
New Deal , a term for the programs and legislation developed during Franklin Roosevelt’s administration aimed at ending the Great Depression.
How were banks going out of business?
Loans were considered worthless, so people were taking their money out of banks, leaving them to close
fireside chats
Speeches broadcast nationally over the
radio in which President Franklin Roosevelt
explained complex issues and programs in
plain language.
How did Roosevelt first help the banks?
pass an Emergency Banking Act on March 9 that allowed those banks deemed safe to open, and permanently liquidated the weakest
Glass-Steagall Act
created the Federal Deposit Insurance Corporation to guarantee bank deposits and also separated commercial banks and investment banks
Brain Trust
Created by FDR, members Raymond Moley, a political scientist; Rexford Tugwell, an economist; and Adolf Berle, a legal financial expert. The members all agreed that a lack of purchasing power was a key cause of the Depression and that a way had to be found to raise farm income and industrial wages so more Americans could buy more of what
the nation could produce, thus putting more Americans back to work. Guided much of FDRs president policies
first 100 days
The first 100 days of the Roosevelt administration, beginning with his inauguration
on March 4, 1933, in which the Democratic
Congress passed several important pieces of
legislation designed to put Americans back
to work and undercut the effect of the Great
Depression
Some 100 day legislations
Economy Act, giving the
president broad powers to cut government spending.
Volstead Act to legalize beer while the country waited for the repeal of Prohibition.
Civilian Conservation Corps, probably the most popular New Deal agency, through which hundreds of thousands of unemployed
young men worked in rural camps planting forests, pruning trees, building parks,
and shoring up the nation’s wild lands, thus giving many of the unemployed
jobs and income to spur the economy
FDR, took the country of the gold standard, replacing currency backed by gold with currency backed by the government’s promise to pay.
Federal Emergency Relief Act
provided direct
government grants to those without incomes
Agricultural Adjustment Act .
shore up farm prices with a
not-always popular program to plow under 10.5 million acres of cotton and slaughter
6 million piglets. Many, including agriculture secretary Henry Wallace, were heartsick
at the destruction of food in a nation with many hungry people, but one-third of the
nation’s workers were in agriculture, and the Brain Trust believed that raising farm
prices by ending the surplus of agricultural products, and therefore raising the income
and spending power of farmers, was the highest national priority
Tennessee Valley Authority (TVA)
built dams on the Tennessee River that would control floods, bring electricity to rural areas that were without it, and provide jobs
National Industrial Recovery Act.
established two of the best known New
Deal agencies, the Public Works Administration (PWA)—committed to large-scale
construction projects across the country—and the National Recovery Administration
(NRA) with a mandate to create a voluntary national network of businesses to maintain
wages and prices.
Who did Roosevelt appoint as commissioner of Indian Affairs?
John Collier
Indian New Deal
A series of policy changes, including the
Indian Reorganization Act of 1934 that
transformed government Indian policy and
strengthened Indian tribal government of
the reservations.
