Chapter 22 study guide Flashcards
Who won election in 1928?
Herbert Hoover
WHy did Al Smith lose?
could not swing conservatives, the business community, and the South to his side
Stock Market Crash of 1929
some warned that stocks were grossly overpriced
Oct. 24 a wave of selling sent prices down—Black Thursday
Oct. 29 prices plummeted and the boom was over—Black Tuesday
Causes of the Great Depression
economic imbalances and the chaos of the Great War
Easy Credit/low taxes on the wealthy
Under consumption forced many factories to close and lay off workers
What did Hoover do to stop the Great Depression?
Cut taxes—increase consumer spending
Public Works Projects
Lower interest rates
Government loans
Easy loans for farmers
State and local relief
Reconstruction Finance Corporation—lent money to insurance companies, railroads, and banks
Hawley-Smoot Tariff Act
Signed by Hoover, raised duties on most manufactured goods—the tariff made it near impossible for Europeans to repay their debts which brought about financial collapse in Europe
Bonus Army
WW1 veterans marched on Washington D.C. and demanded their bonuses and Congress refused—2000 refused to leave and Hoover sent in the army with tanks, bayonets, and tear gas to break it up
Blow of Hoover Administration
Election of 1932 Democrat nominee:
Franklin Del Roosevelt
Election of 1932 Republican nominee:
Hoover
Who won?
Roosevelt with his New Deal plan
The Hundred Days
the beginning of Roosevelt’s administration that saw a mass amount of legislation passed
What did Roosevelt do?
Economy Act—reduced the salaries of federal employees/cut veterans’ benefits
Bank Holiday
Repeal 18th Amendment (21st)
Took off gold standard
FDIC
HOLC (Home Owners Loan Corporation)
Relief/Recovery/Reform
he NIRA (National Industrial Recovery Act) was
Considered most controversial new deal act
NRA laws
Established the Public Works Administration
Manufactures could draw up “fair business practices”
Workers had minimum wage rights, maximum hours, and the rights of workers to organize and collectively bargain
The act created the National Recovery Administration to supervise and draft business codes
What rivaled AFL?
Congress of Industrial Organizations (1938)
(John Lewis)
Agricultural Adjustment Administration (AAA)
combined restrictions on production with government subsidies
Many farmers were paid to destroy their crops and livestock