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America > Depression And The New Deal 1929-38 > Flashcards

Depression And The New Deal 1929-38 Flashcards

1
Q

By 1932, what percentage of the USAs workforce was unemployed

A

25

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2
Q

Why were the majority of Americans not directly affected by the 1929 WSC

A

Majority did not own shares

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3
Q

Between October and December 1929, how much did unemployment rise

A

From 500,000 to over 4 million

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4
Q

By the time Roosevelt became president in 1933, how many were unemployed

A

15 million

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5
Q

How much did real wages fall 1929-31

A

16%

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6
Q

How much did manufacturing decrease 1929-31

A

54%

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7
Q

Why was the government reluctant to intervene after the wsc

A
  1. Hoover believed the economic downturn would be short lived
  2. The republican administration and republican controlled congress were reluctant to change their policy of laissez faire which had brought unrivalled prosperity in the 1920s
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8
Q

Financially, why did the rise in unemployment cause so many problems

A

In 1929, the USA did not have old aged pensions or a national system of unemployment welfare, this was the responsibility of state governments

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9
Q

Where did the main help for unemployment come

A

Voluntary organisations which hoover encouraged

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10
Q

How many left home to search for work

A

1 million

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11
Q

In 1931, what did a survey in Colorado reveal

A

All schoolchildren were insufficiently fed leading to the spread of diseases such as typhus

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12
Q

How did the suicide rate rise in 1929-32

A

14%

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13
Q

How did the decline in economy lead to a rise in racial discrimination

A

Several employers adapted a preferential hiring system for whites

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14
Q

What happened in California for Spanish speaking Americans

A

Tens of thousands adversely affected by a dramatic drop in demand for agricultural products

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15
Q

How many Mexican citizens were forced to leave by 1933

A

500,000

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16
Q

How did states encourage Spanish speakers to “go home”

A

Banned non us citizens from public works programmes, some states willing to pay their rail fair

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17
Q

In 1932, what did customers in NYC do?

A

Boycotted Chinese laundries to try to drive them out

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18
Q

What did white workers in Milwaukee do at the wehr steel factory

A

Went on strike demanding all black workers be fired

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19
Q

Where was racial discrimination most extreme

A

Old south

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20
Q

What happened in Louisiana

A

White mobs attacked BA railway workers , killing 10

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21
Q

How many deaths by lynching by 1932

A

24

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22
Q

1929-32, how much did farm incomes fall

A

By two thirds

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23
Q

why had farm incomes decrease

A

Sharp fall in demand and therefore prices

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24
Q

How were farmers affected by the collapse of the banking sector

A

Most farmers had bank loans

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25
Q

What happened in Iowa

A

one in eight farms put up for auction 1929-32

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26
Q

What did veterans do

A

Marched on Washington
21,000 demanded that the bonuses they were due in 1945 be paid immediately

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27
Q

How did this protest end

A

1932 “battle of anacostia flats” the army forcibly evicted the bonus marchers using tanks, 2 dead

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28
Q

Where was the centre for illegal activities

A

Chicago,Illinois

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29
Q

Who was the most notorious gangster

A

Italian American al-Capone

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30
Q

what did Bonnie and Clyde do

A

Led a gang from a hideout, robbed banks, committed murder

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31
Q

What did machine gun Kelly do

A

Bank robbery

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32
Q

What fuelled the gangsters notoriety

A

The fbis decision from 1931 to label these criminals as public enemies

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33
Q

What did hoover’s 1928 presidential campaign slogan say

A

He wanted a chicken in every pot and a car in every garage

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34
Q

Why did having franklin d Roosevelt as his predecessor give hoover a disadvantage

A

FDR has come to be regarded as one of americas greatest presidents
Hoover looked indecisive and lacklustre in comparison

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35
Q

What was rugged individualism

A

Hoover’s belief that people should be self reliant and not be dependant on government financial support

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36
Q

Who did hoover need the support of

A

Both houses of congress, until November 1930, dominated by the Republican Party who supported laissez faire policies

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37
Q

Early in the depression, what did hoover believe

A

That the cause lay outside of the USA
After WW1, Germany expected to make reparation payments to the allied governments
Owed the USA tens of millions of pounds in war debts

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38
Q

How did hoover help to prevent the onset of a global economic depression

A

Negotiated a moratorium - temporary suspension of reparation payments in 1931 and the cancellation of payments in 1932

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39
Q

What was hoover’s aim in doing this

A

To encourage international trade by releasing more money directly into the economy

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40
Q

When was the smoot-hawkley tariff

A

1930

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41
Q

What did the smoot hawley tariff do

A

Raised import taxes to the highest level in US history, to protect USA economy from foreign competition

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42
Q

How much did average import taxes on agricultural and industrial goods rise

A

40%

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43
Q

What did this intend to do

A

Raise the o prices of foreign goods and ensure that domestic producers were protected from foreign competition

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44
Q

Who wanted hoover to veto the tariff

A

1,000 economist signed a petition for it to be vetoed

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45
Q

What did the smoot hawley tariff plead other countries to do

A

Raise their own tariff rates in retaliation

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46
Q

How many people lost they jobs under Hoover’s presidency

A

13 million

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47
Q

How did state governments fail to help unemployment

A

Failed to offer anything more than short term help which led to a rapid rise in homelessness

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48
Q

What words became fashionable

A

Hoover flags - pulled put empty pockets
Hoover blankets - newspapers people used to keep warm at night
Hoovervilles - shanty towns to house unemployed who had been evicted or on the road looking for work

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49
Q

When was the reconstruction finance corporation RFC

A

January 1932

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50
Q

Why was this a big U turn for Hooever

A

One of the first direct attempts by the federal government to get the country out of depression

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51
Q

What was the RFC given and wheat were the aims of this

A

2 billion in taxpayers money to directly assist banks and insurance companies that were in financial trouble - aim to revive the American banking system

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52
Q

How did the RFC help from february to ,march 1932

A

Helped 160 banks
60 railroads
18 mortgage companies

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53
Q

What did the RFC fail to do

A

Encourage banks to lend more to businesses that were facing severe financial problems

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54
Q

When was the emergency relief and construction act

A

July 1932

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55
Q

What was special about the ERCA

A

First massive relief programme

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56
Q

What did the ERCA have the power to do

A

Give 1.5 billion to state governments to fund public works for the unemployed

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57
Q

How did state governments qualify for for funding

A

They had to prove they were running out of money for unemployment relief

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58
Q

Why was ERCA criticised

A

By 1932, the depression was so deep - business and public confidence was so low that a dramatic change would be required for the economic crisis to end

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59
Q

In the November 1932 election, how many votes did FDR get compared to Hoover

A

FDR - 22.8M
Hoover - 15.8M

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60
Q

Why did whites in the old south dislike the democrats (FDR)

A

Because they had won the US civil war and had improved political racial equality on the old south

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61
Q

why were Jews and catholics attracted to the republicans and disliked the democrats

A

Liked FDRs social and economic policies
Disliked that the democrats were dominated by WASPs

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62
Q

How did Black Americans beginning to switch their votes to Democratic (FDR) IN 1932 affectthe vote

A

Ensured Roosevelt won again in 1936, 40 and 44

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63
Q

During the ‘lame duck’ period, how did FDR and hoover work together

A

Hoover offered to work with FDR to relieve the misery of the depression but FDR refused - did not want Hoover to gain any credit

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64
Q

What were the ‘hundred days’

A

Hundred days of activity in congress, FDR passed the legislation that formed the basis of the first new deal

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65
Q

When was the Tennessee valley authority

A

May1933

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66
Q

What was the Tennessee valley area notorious for

A

Flooding, poor infrastructure and low standard of living

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67
Q

How many people lived in the Tennessee valley area

A

2 million

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68
Q

What did the Tennessee valley authority do

A

Established a network of dams to control the flow of river and create hydro electric power

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69
Q

Compare 1933 and 1945 to farms with electricity in the Tennessee valley authority

A

1933- 2%
1945 - 75%

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70
Q

When was the national recovery administration

A

June 1933

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71
Q

What did the national recovery administration do

A

Issue codes of practice to each industry to ensure fair competition, wages and hours of work

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72
Q

What happened under the NRA codes

A

Child labour was banned below the age of 16

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73
Q

What happened under section 7a of the nra

A

Allowed unions to collectively bargain for wage rates for their members

74
Q

If a company or industry adopted the NRAcodes,what did they reveive

A

The NRA blue eagle sign, recognisable symbol of the new deal

75
Q

Why did many companies, such as ford motor company, refuse to participate in the codes of NRA

A

Many of the codes proved unworkable and it was declared unconstitutional by the US Supreme Court in 1935

76
Q

What were wages like under the NRA

A

Low and most workers did not experience any improvement in their working conditions, even if their company displayed the blue eagle

77
Q

How many did the NRA put back to work

A

2 million

78
Q

When was the civilian conservation corps

A

March 1933

79
Q

Who was the CCC programmes supervised by

A

The army

80
Q

Who did the CCC offer work to and for how long

A

Mostly manual labour to young men aged 18-25 for a minimum of six months up to 2 years

81
Q

How many were taken of the unemployed list in rural areas in cities due to the CCC

A

250,000

82
Q

Of the 30 dollars they earns a month how much was sent back to families

A

25

83
Q

Until 1945 when it ended, how many men took part

A

3 million

84
Q

How many roads, bridges and trees were planted under the CCC

A

Roads, 125,000 miles
Bridges , 47,000
Trees , 3 billion

85
Q

When was the federal emergency relief administration created

A

May1933

86
Q

Who was in charge of FERA

A

Harry Hopkins

87
Q

What was FERAs budget and what did they spend it on

A

500 million - provided work that resulted in the building of over 5,000 buildings and organised relief for the unemployed

88
Q

how did Hopkins get reluctant states, such as Georgia, to join

A

Through threat of withdrawal of federal funding

89
Q

When was the civil works administration

A

November 1933

90
Q

What was the CWA

A

A TEMPORARY administration created to meet the problems caused by the winter of 1933-34

91
Q

How many workers did Hopkins employ in four months

A

4.2 million

92
Q

How many airports and miles of road were built

A

Airports - 400
Miles of road - 255,000

93
Q

When was the public works administration

A

June1933

94
Q

Who was the head of the PWA

A

Harold Ickes

95
Q

What did the PWA aim to do

A

Aimed at a.more long term programme of stimulating economic growth

96
Q

How was this different to Harry Hopkins CCC employment

A

Harry Hopkins was only emergency unemployment work described as ‘boondoggle jobs’ that had no real purpose

97
Q

How many schools and miles of road were built iunder the PWA

A

Schools - 13,000
Miles of road - 50,000

98
Q

What was Ickes accused of

A

Spending federal money too slowly
Spent only 110 million dollars of its 3.3 billion dollar budget in six months

99
Q

How did Hopkins spending compare to this

A

Spent 5 million dollars in a few hours

100
Q

By 1934, how much of the American workforce had FERA, PWA and CWA put to work

A

20%

101
Q

When was the agricultural adjustment administration

A

1933

102
Q

What had the mcnary haugen bills of 1920s been an attempt to

A

Stabilise farm prices through the government purchase of agricultural surpluses

103
Q

What had caused agricultural products to go down in price

A

Overproduction

104
Q

Why had sales of farm products fallen

A

Due to the depression and foreign tariffs on American food exports

105
Q

How did Henry Wallace, under the AAA, set about stabilising farm product prices

A

Allotment plan - to prevent agricultural surpluses, farmers would reduce the acreage under cultivation, or reduce their production

106
Q

Why was this an unusual method

A

At a time of malnutrition in many towns and cities, the sigh of farmers killing piglets, burning crops or pouring away excess milk, was hard to comprehend

107
Q

By 1935, how many acres of land had been removed from cultivation

A

35 million acres

108
Q

How did farm incomes rise from 1933-35

A

From 4.5 billion to 6.9 billion

109
Q

Which farmers did not benefit from this scheme

A

Black American sharecroppers in the old south still lived in abject poverty
In 1935, most rural parts of the USA were without electricity
Climate changes and poor agricultural methods resulted in dustbowl centred on oaklohoma and Arkansas

110
Q

When was the emergency banking act

A

March 1933

111
Q

2 days after his inauguration, FDR ordered a national bank holiday from when

A

6-9march

112
Q

During this bank holiday period, what did FDR do

A

Persuaded congress to pass this act, which it did in seven hours
- the USA treasury investigated all banks threatened with collapse and only those approved by the treasury were allowed to open for business on 10th march

113
Q

How long did it take for FDR to restore confidence in the bank industry

A

Within a week

114
Q

When was the glass steagall banking act

A

June 1933

115
Q

What did the glass steagall banking act do

A

Separated commercial from investment banking
Created a federal deposit insurance corporation which guaranteed all bank deposits to the value of 5000 dollars

116
Q

What happened in 1936

A

For the first time in 60 years,no USA bank closures for business

117
Q

When was the federal securities act

A

May1933

118
Q

What did the federal securities act do

A

negotiate the whole system of buy in and sellling shares
All new shares had to be registered in the federal trade commission

119
Q

What was the June 1934 securities and exchange commission

A

Regulated all share transactions and stock exchanges

120
Q

When was the gold reserve act

A

January1934

121
Q

What did the gold reserve act do

A

Devalued the US dollar against the rate of gold in hope to make us exports cheaper

122
Q

When was raw silver purchase act

A

June 1934

123
Q

What did the silver purchase act do

A

Hoped to raise prices by increasing the amount of silver in us coinage to encourage more economic activity

124
Q

Why were both eh gold reserve and silver purchase acts unsuccessful in their aims

A

Due to FDRs belief that the causes of the economic crisis were domestic and non international

125
Q

What happened at the London economic conference in 1933

A

Other nations wanted to stabilise the value of currencies in order to stimulate international trade
FDR simply wanted to work on his own

126
Q

In the midterm elections of November 1934, in numbers, how did the democrats achieve success

A

Gained 9 seats in senate, giving them a majority of 45
In their house their majority rose to 219

127
Q

When was the American liberty league formed and what did it pledge

A

Summer 1934
Pledged to uphold the constitution, to foster the right of work, earn and save property

128
Q

Who financially backed the American liberty league

A

The whos who of business, including the du pont family who owned the usas largest chemical company and Alfred Sloan of General Motors

129
Q

What did the American liberty league believe

A

That FDR was planning to change the country in a fundamental way that was alien to business culture that made the USA great

130
Q

Why didn’t the American liberty league get very far

A

They tended to support the republican candidate, Alfred landon, who received 11 million less votes than FDR

131
Q

What were FDRs fireside chats

A

FDR directly addressing the American people through radio to explain his policies

132
Q

Who was father coughlin

A

A Roman Catholic priest who had 35 million listeners for his weekly radio show, the golden hour of the little flower

133
Q

What were coughlin’s beliefs in 1930

A

He backed the underlying aims of the new deal and blamed bankers for the economic catastrophe

134
Q

What were coughlin’s beliefs in 1934

A

He created the national union of social justice as an alternative to the new deal - he wanted monetary reform such as more silver coinage and a policy that encouraged inflation

135
Q

Who was Francis Townsend and what did he believe

A

Retired doctor
Supported the idea of federal funded old aged pensions as a way of stimulating demand in the economy - everyone over 60 receive $200 a month

136
Q

By 1935, how many had joined townsend clubs

A

500,000

137
Q

Why were coughlin and Townsend unsuccessful

A

They both backed William lenke in the election who only got 892,000 votes

138
Q

Who was Huey P Long and what dud he do

A

Governor of Louisiana, member of FDRs own party
Launched his own share our wealth campaign against the first new deal

139
Q

What did Long believe

A

Economic recovery would be stimulated if every American family received a minimum annual income of $2000 and a homestead allowance of $5000
Cost of this would be funded by raising taxes on the rich

140
Q

By early 1935, how many share our wealth clubs had long created

A

27,000

141
Q

Why was the us supreme court the most serious opposition to the first new deal

A

The nine justices were political opponents and the majority had been nominated by republican presidents
The court had the power to declare acts of congress, actions by the president or state laws unconstitutional

142
Q

What was the Schechter sick chicken case

A

The court declared that the federal government had exceeded its powers by trying to regulate commerce within New York

143
Q

What was US vs Butler

A

The court declared the AAA illegal on similar grounds to the sick chicken cas

144
Q

In all, how many new deal laws did the Supreme Court declare illegal

A

11 because they were deemed contrary to the us constitution

145
Q

When was the Wagner act

A

June 1935

146
Q

What was the Wagner act regarded as

A

A milestone in giving trade unions basic rights

147
Q

What was the major national labour organisation up until 1935

A

The American federation of labour
Mostly had members in craft occupations

148
Q

What was the congress of industrial organisations

A

A new, more militant organisation, organised members of the steel, car, textile, coal and rubber industries

149
Q

Why were trade ubuins major supporters of the democratic parry

A

Initially section 7a of the national industrial recovery act had given trade unions the right to collectively bargain for better pay and conditions on behalf of their members

150
Q

What happened to this,and what did the Wagner act do about tit

A

The us Supreme Court declared it unconstitutional- the Wagner act gave the right to collectively bargain back to the unions - individual workplaces were fuven the right to join trade unions, following a secret ballot of their members

151
Q

How did the federal government ensure trade unions and employers were treated correctly

A

Established the national labour relations board

152
Q

What act prohibited child labour

A

198 fair labour standards act

153
Q

What act prohibited child labour

A

198 fair labour standards act

154
Q

How can the Wagner act be criticised

A

It excluded agricultural and service workers, public employees and those employed outside interstate commerce due to opposition with congress
Therefore, many black Americans, Hispanic Americans and women received very little from the act

155
Q

When was the social security act

A

June1935

156
Q

How was social security to be funded

A

By equal contributions from employers and workers

157
Q

What would the social security system provide

A

Minimal payments to unemployed workers, the elderly and dependants on deceased breadwinners

158
Q

How were pensions and unemployment benefits to be paid out

A

Pensions - a rate of between 10 and 85 dollars a week
Unemployment benefits - maximum of 18 dollars per week for 16 weeks only

159
Q

Why was this seen as such a major breakthrough

A

Until 1935, unemployment was seen as a state government responsibility

160
Q

How could the social security act be criticised

A

It excluded those workers who needed it most - farm workers, domestic servants and the self employed

161
Q

When was the revenue act

A

August 1935

162
Q

Why was the revenue act passed

A

To help fund the schemes of the first and second new deal

163
Q

What did the revenue act do

A

Increased the rate of income tax from 63 to 79 % on incomes over 5 million which raised an additional 250 million dollars a year - still a tiny sum compared to how much the federal government had spent
Increased taxes on property and introduced an undistributed profits tax to force large companies back into the stock market to raise more money for more investment in the economy

164
Q

How can the revenue act be criticised

A

More of a showpiece than a fundamental change in tax system
It was a move to thwart the share our wealth campaign by Huey p long
Huge criticisms from the rich - annoyed that FDR also came from a wealthy background and called him a class traitor

165
Q

What did the resettlement administration of 1935 do

A

Helped relocate 45,000 farming families from the areas in oaklohoma, Texas and Kansas most badly affected by the dustbowl

166
Q

What did the rural electrification administration do

A

Gave low interest loans to rural cooperatives to allow them to provide electricity
By 1945, 40% of farms had electricity compared to 10% in 1930

167
Q

From 1935, until its demise, how many workers did thr WPA employ

A

8 million, one fifth of americas workforce

168
Q

What did the WPA do

A

Thousands of hospitals, schools, parks and rural roads were constructed
Helped groups such as women, black Americans, artists and musicians
Set up the CCC style camps for young women

169
Q

What did the federal writers project do

A

Aided writers, especially black Americans
The theatre projects employed 12,000 performers and production companies

170
Q

What did the national youth administration do

A

Encouraged education and partitme work for students
The negro division headed by Mary McLeod Bethune ensured that black Americans benefited from the WPA and NYA programmes

171
Q

What did the national youth administration do

A

Encouraged education and partitme work for students
The negro division headed by Mary McLeod Bethune ensured that black Americans benefited from the WPA and NYA programmes

172
Q

Why did socialists and communists not like FDR

A

FDR wanted to reform the American economic system, these groups wanted to destroy it and replace it with an economic system they regarded as more fair
The American system of ecconomics allowed wealth and economic power to be concentrated with a small number of individuals such as Henry ford
The gap between the rich and poor was immense

173
Q

Why did socialists and communists not like FDR

A

FDR wanted to reform the American economic system, these groups wanted to destroy it and replace it with an economic system they regarded as more fair
The American system of ecconomics allowed wealth and economic power to be concentrated with a small number of individuals such as Henry ford
The gap between the rich and poor was immense

174
Q

In his second inaugural address what did FDR declare

A

That one third of America was still poor

175
Q

What did socialists and communists want the American economy to belike

A

Replace private ownership of industry, agriculture and business with government ownership - they hoped that the government would share out the USAs wealth more equally
Communists looked to the ussr as the model economy to follow

176
Q

Did socialists and Communists really make an impact

A

No - in 1936, the communist presidential candidate, earl browder recieved a mere 79,000 votes
Norman Thomas, the socialist candidate, got only 187,000

177
Q

Explain the unrest amongst trade unions

A

Led by CIO unions, such as the united automobile workers union , organised strikes. May of the union leaders were socialist or communists

178
Q

In December 1936, in flint, Michigan, what happened

A

Auto workers occupied the factory owned by Cleveland fisher company. A monthlong sit in by workers prevented their factory from running

179
Q

How many strikes happened in 1937

A

4,470 involving 1.9 million workers

180
Q

What was the Roosevelt recession 1937-38

A

Fdr ordered substantial cuts to federal government spending
On 10 October 1937, another stock crash occurred when 17 million shares were offloaded by investors

181
Q

During he Roosevelt recession, how was manufacturing and gnp affected

A

Manufacturing fell by 23%
GNP dropped by 13%

182
Q

What was FDR’s court packing plan 1937

A

He submitted a bill to congress with the aim of forcing all justices over 70 to retire. If passed, this would have allowed FDR to appoint six new justices, transforming the political balance of the Supreme Court
He also wanted to increase the nimbler of justices from nine to 15 which would have given FDR immense power
REJECTED

America (2 decks)

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