Chapter 4/5-American Society During The Great Depression Flashcards
Why did the wall street crash?
Overproducing so people were scared that the share prices go down, so they wanted to sell them as soon as possible.
13 million shares were sold.
Underconsumption: because of mass production everyone who could afford goods, already had one, so there were not enough people buying them.
Tariffs (taxes) were put on goods that came into america so companies were struggling to sell their goods abroad.
Unequal distribution of wealth, not everyone could afford goods, poor people, blacks, immigrants and farmers
Also called black thursday
Why did banks go corrupt?
People couldn’t pay the bank back from what they borrowed to buy their shares, so any people that had savings in banks lost all their money.
What is a depression?
A time in a country where banks fail, factories close and unemployment rises
Who was affected by the great depression?
Shareholders Factory worker Factory owners Bank managers Rich people Farmers Unemployment Hobos and hoovervilles
What were breadlines?
Unemployed people were reduced as they had jobs in begging or picking up rubbish from the floor. Soup kitchens were set up for homeless people, there were huge lines called breadlines
How did President Hoover respond?
Made a constitution that lender money to businesses in troible and gave small loans a to farmers
Put taxes on goods coming in, hoping people will buy american goods in the country
Gave money to states to help the unemployed
However exports dropped as other country’s put taxes on goods coming into their country
He believed america would recover by itself, rugged individualism, didn’t need help from government
Who was herbert hoover?
The US president. Rugged individualism Didn’t do much to help, it was when america fell into depression that he started lending money. Wasn’t a good public speaker Seen as “uncaring” Republican-favoured wealthier people
Who was FDR?
Franklin’s De Roosevelt.
Democrat-favoured poorer people
Spent $20 million of tax money on unemployed
Ways of dealing with the great depression was the 3 R’s
Relief-Help the old homeless unemployed and sick
Recovery- create government schemes to provide jobs
Reform- make america a better place and ensure another depression won’t happen
He called his ideas the NEW DEAL
Good public speaker
Gained votes as made a lot of speeches
People felt like they had someone by their side to support them
He was the first president to spread his message through radios, gained support
What were the lame duck months?
President hoover was given 4 months to finish off his work before being replaced by FDR
What did he do during these months?
Spent money giving loans and helping the unemployed. However during these lame duck months the depression got worst. Unemployment rose and more banks closed
What were FDR’s ways of solving the depression?
The emergency baking act
People didn’t trust banks anymore and kept their money safe at home. FDR creates this act which closed all banks for a 4 day bank holiday and they were inspected. Only well run banks with enough money could re open. When they did, people again out their money in banks and trusted them more, this helped solved he corruption of banks, it created jobs and businesses grew.
The economy act
The government needed money to help the unemployed so FDR introduced this act which reduced the pay of everyone and the government saved this money.
The beer act
This act solved the problem of prohibition which caused the corruption of the police, gangs and crimes. It made alcohol legal and the governments could put taxes on them to gain money to help.
Alphabet agencies>
What were the alphabet agencies?
Organisations that helped the Americans
Name the agencies and what they did
AAA
Helped farmers, paid them to destroy their food and produce less, so prices of food went up and they started to earn double. However people were against wasting food, some cities went hungry
CCC
Gave work to young men planting trees, clearing footpaths etc
NRA
Stated that workers had the right to joint trade unions, they worked in better conditions and earned better wages however som refused to join and didnt follow codes of practice
FERA
Gave money to stated to help poor sick homeless. Spent money on soup kitchens clothes nursery’s (for parents to look for work)
CWA
provided temporary work such as building schools airports
TVA
Provided work in building dams and electrical power stations
Who opposed the new deal?
FAR RIGHT: FDR HAS GONE TOO FAR The rich Business people The supreme court (FDR was making rules that only the state gov could do, not federal gov) Republicans
FAR LEFT: FDR HAS DONE TOO LITTLE
People in the far left had other ideas in solving solving the great depression. For example francis suggested all people should retire at 60 to give more job opportunities to young people
Money from the rich should be given to the poor, anyone with over $5000
Quote from FDR?
The only thing that we have to fear is fear itself
