Depression and the New deal Flashcards
1
Q
How many banks failed in 1929?
A
659
2
Q
How many banks failed in 1930?
A
1352
3
Q
How many banks failed in 1931?
A
2294
4
Q
5000 banks had failed by which year?
A
1933
5
Q
What was the worst bank failure?
A
The Bank of the United States in New York
- 400,000 depositors in 1930
- Almost 1/3 of New York banked with it
6
Q
What was the Downward spiral?
A
Less people purchasing goods.
Businesses cut production
Less workers needed
Unemployment/ reduced wages
7
Q
What was the Downward spiral?
A
Less people purchasing goods.
Businesses cut production
Less workers needed
Unemployment/ reduced wages
8
Q
Between 1928 and 1933, how much did industrial and farm production fall by?
A
40%
9
Q
Between 1928 and 1933, how much did average annual industrial wages fall by?
A
60%
10
Q
What was the total US farm income in:
- 1919
- 1928
- 1933
A
- $22 billion
- $13 billion
- $5 billion
11
Q
What was the total US farm income in:
- 1919
- 1928
- 1933
A
- $22 billion
- $13 billion
- $5 billion
12
Q
What was the total value of US international trade in:
- 1929
- 1932
A
- $10 billion
2. $3 billion
13
Q
Why were farmers not keen to sell their animals during the depression?
A
The cost of transporting an animal to market was more than the price of the animal
14
Q
How many people were unemployed in 1929?
What was this as a percentage of the workforce?
A
- 6 million
5. 2%
15
Q
How many people were unemployed in 1933?
What was this as a percentage of the workforce?
A
14 million
24.9%
16
Q
How many states did Roosevelt win in the 1932 election?
A
42/48
17
Q
In the 1932 election how many votes were received by:
- Hoover
- Roosevelt
A
- 15,759,930
2. 22,825,539
18
Q
Which social group did Roosevelt lack the support of?
A
The very rich and powerful who wanted to see a return to life as it was in the 20s
19
Q
Which social group did Roosevelt lack the support of?
A
The very rich and powerful who wanted to see a return to life as it was in the 20s
20
Q
What were the 3 main aims of the New Deal programme?
A
RELIEF
helping those in extreme poverty
RECOVERY
getting industry going again
REFORM
increasing government responsibilities to provide long lasting support to help those most in need
21
Q
When was Roosevelt inaugurated?
A
4th March 1933
22
Q
When was Roosevelt inaugurated?
A
4th March 1933
23
Q
When did Roosevelt close all US banks?
A
5th March 1933
24
Q
When were selected banks reopened?
A
9th March 1933
25
When was Roosevelt's first 'fireside chat'
| What did he do and what was the result?
12th March 1933
Encouraged Americans to put their money back into banks. Many did so.
"The only thing to fear is fear itself"
26
When was the CCC established?
31st March 1933
27
When was the AAA passed?
12th May 1933
28
When was the TVA established?
18th May 1933
29
When was HOLC established
June 1933
30
When was NIRA passed?
18th June 1933
31
When was NIRA passed?
18th June 1933
32
What does CCC stand for?
Civilian Conservation Corps
33
What does the AAA stand for?
Agricultural Adjustment Act
34
What does the TVA stand for?
Tennessee Valley Authority
35
What does the HOLC stand for?
Home Owners Loan Corporation
36
What does the NIRA stand for?
National Industrial Recovery Act
37
What does the NIRA stand for?
National Industrial Recovery Act
38
How much did Hoover invest in construction projects?
Give an example of a project
What was the limitation of this?
$4000 million
Hooverdam, Colorado river, 1931
Although it provided jobs and resources, it took a long time for this wealth to filter down to those who needed it most.
39
How much did Hoover invest in construction projects?
Give an example of a project
What was the limitation of this?
$4000 million
Hooverdam, Colorado river, 1931
Although it provided jobs and resources, it took a long time for this wealth to filter down to those who needed it most.
40
What did Hoover do to reduce agricultural overproduction?
| What was a limitation of this?
Government bought food at above-market prices
however, this encouraged farmers to produce more
41
What tariff did Hoover introduce in 1930?
What were the average duties of this?
What were the limitations?
Hawley-Smoot tariff
40% (highest ever)
Other countries retaliated and even less was exported so farmers were left with their surpluses
42
What tariff did Hoover introduce in 1930?
What were the average duties of this?
What were the limitations?
Hawley-Smoot tariff
40% (highest ever)
Other countries retaliated and even less was exported so farmers were left with their surpluses
43
When did Hoover try to co-ordinate the work of voluntary agencies?
What was the limitation of this?
Late 1930
By then, many cities were nearly bankrupt from relief programmes
44
What Act did Hoover pass to help the unemployed?
When was this?
How much money did it provide to help the issue?
What was the limitation of this?
Emergency Relief Act, 1932
$300 million
Too little, too late.
-between 1932 and 1933, unemployment rose by 1.9 million
45
What was the RFC?
When was it set up?
How much money did it provide?
Reconstruction Finance Corporation
1932
Loans of $1500 to businesses
46
What was 'rugged individualism'?
The notion the people should overcome problems and succeed by their own effects and hard work, not from receiving help from government.
47
What happened at the Bonus army marchers protest?
- Thousands of veteran who had fought in WW1 marched to Washington DC to ask for their war bonuses to be paid early
- They camped peacefully outside the whitehouse and sang patriotic songs
- Hoover refused to meet them and appointed General Douglas MacArthur to handle the situation
- MacArthur convinced himself, based on no evidence, that they were communist agitators. Troops and police used tear gas and burned doen marchers' camps
- Hoover responded by publically thanking God that the USA still knew how to deal with a mob
48
What happened at the Bonus army marchers protest?
- Thousands of veteran who had fought in WW1 marched to Washington DC to ask for their war bonuses to be paid early
- They camped peacefully outside the whitehouse and sang patriotic songs
- Hoover refused to meet them and appointed General Douglas MacArthur to handle the situation
- MacArthur convinced himself, based on no evidence, that they were communist agitators. Troops and police used tear gas and burned doen marchers' camps
- Hoover responded by publically thanking God that the USA still knew how to deal with a mob
49
1. What percentage of the bonus army marchers were veterans?
| 2. What percentage were disabled?
1. 90%
| 2. 20%
50
1. What percentage of the bonus army marchers were veterans?
| 2. What percentage were disabled?
1. 90%
| 2. 20%
51
Why did some people think that the New Deal did too much? (6)
1. Too complex. It had too many codes and regulations
2. Government should not support trade unions and calls for higher wages.
- the market should deal with this
3. Schemes such as the TVA created unfair competition for private companies
4. New Deal schemes were very similar to economic reforms being carried out in the communist USSR
5. Roosevelt was behaving like a dictator
6. The wealthy had worked hard for their money and Roosevelt was not respectful of that
52
Why did some people think that the New Deal did too much? (6)
1. Too complex. It had too many codes and regulations
2. Government should not support trade unions and calls for higher wages.
- the market should deal with this
3. Schemes such as the TVA created unfair competition for private companies
4. New Deal schemes were very similar to economic reforms being carried out in the communist USSR
5. Roosevelt was behaving like a dictator
6. The wealthy had worked hard for their money and Roosevelt was not respectful of that
53
Name 3 people who opposed the New Deal
1. Huey Long
2. Francis Townsend
3. Father Coughlin
54
Who was Huey long?
| What were his ideas for successful economic reform?
Governor of Louisiana, 1928
Became a senator in 1932
- Relentlessly taxed big corporations for money to build roads, schools and hospitals
- Employed African Americans on the same terms as whites (clashed with the KKK)
- 'Share our wealth' scheme confiscated all personal fortunes over $3 million and set maximum annual income to $1 million
- Pensions for over 60s and free washing machines
55
Who was Huey long?
| What were his ideas for successful economic reform?
Governor of Louisiana, 1928
Became a senator in 1932
- Relentlessly taxed big corporations for money to build roads, schools and hospitals
- Employed African Americans on the same terms as whites (clashed with the KKK)
- 'Share our wealth' scheme confiscated all personal fortunes over $3 million and set maximum annual income to $1 million
- Pensions for over 60s and free washing machines
56
What were father Coughlin's ideas successful economic reform and how did he act on this?
- Set up National Union for Justice (which had a large membership)
- Used his weekly radio show to attack Roosevelt for being 'anti-God'
- He wanted the poor to be paid what he described as a 'fair wage'
57
What were Francis Townsend's ideas successful economic reform and how did he act on this?
Set up a number of 'Townsend clubs' to campaign for Federal government to give all citizens aged 60+ a pension of $200 a month (providing they spent it in the month)
- this would be financed by a 2% sales tax
58
What were Francis Townsend's ideas successful economic reform and how did he act on this?
Set up a number of 'Townsend clubs' to campaign for Federal government to give all citizens aged 60+ a pension of $200 a month (providing they spent it in the month)
- this would be financed by a 2% sales tax
59
What case came before the supreme court that lead to tensions with Roosevelt?
When was this?
May 1935
The schechter Poultry Corporation had been found guilty of breaking NRA laws because it had:
- sold diseased chickens for human consumption
- filed false sales claims
- exploited workers
- threatened government inspectors
60
Why did the supreme court rule that they had no right to prosecute the Schechter Poultry Corporation?
The Supreme Court was dominated by Republicans. It could overturn the laws if those laws were against the constitution.
They claimed they couldn't prosecute because the NRA was unconstitutional
61
What did Roosevelt do in response to the actions of the Supreme Court in 1935?
Why did this cause controversy?
What was Roosevelt forces to do in response to the opposition?
Roosevelt asked Congress for the power to appoint 6 new Supreme Court judges who were more sympathetic to the New Deal
- American public saw this as Roosevelt attacking the US justice system
- Roosevelt had to back down and the NRA was over
62
What did Roosevelt do in response to the actions of the Supreme Court in 1935?
Why did this cause controversy?
What was Roosevelt forces to do in response to the opposition?
Roosevelt asked Congress for the power to appoint 6 new Supreme Court judges who were more sympathetic to the New Deal
- American public saw this as Roosevelt attacking the US justice system
- Roosevelt had to back down and the NRA was over
63
When did Roosevelt cut funding to some of the New Deal programmes?
1937
64
Why did Roosevelt cut funding to some of the New Deal programmes?
He became concerned by the extent of government spending (and debt).
65
What was the result of the cut in New Deal spending?
1937 (before cuts) unemployment = 8 million
Winter of 1937-38 (after cuts) unemployment = 10.5 million
66
What was the result of the cut in New Deal spending?
1937 (before cuts) unemployment = 8 million
Winter of 1937-38 (after cuts) unemployment = 10.5 million
67
How did government respond to the surge in unemployment in 1937?
Rapidly increased expenditure
| - helped by private industries who were able to invent and innovate during the decade
68
What were the limitations of the New Deal in terms of business ad unemployment?
In 1939 business was still 25% less than it had been in 1929.
Unemployment was nearly 10 million
69
How many jobs did the CCC provide?
1. What were the short term benefits?
2. What were the long term benefits?
2.5 million
1. Secure income
2. Skills and experience for future careers
70
How many jobs did the CCC provide?
1. What were the short term benefits?
2. What were the long term benefits?
2.5 million
1. Secure income
2. Skills and experience for future careers
71
How did the WPA stimulate the economy?
6000 schools
| 2500 hospitals
72
How many states did Roosevelt win in the 1936 election?
46/48
73
What was the US GNP in:
1. 1928
2. 1933
3. 1939
1. $100 billion
2. $55 billion
3. $85 billion
74
By what percentage did GNP increase between 1933 and 1939?
46.75%
75
What was the total value of consumer goods bought in:
1. 1928
2. 1933
3. 1939
1. $80 billion
2. $45 billion
3. $65 billion
76
By what percentage did the total value of consumer goods bought increase between 1933 and 1939?
29.25%
77
What was the private investment in industry in:
1. 1928
2. 1933
3. 1939
1. $15 billion
2. $ 2 billion
3. $10 billion
78
By what percentage did GNP increase between 1933 and 1939?
46.75%
79
What was the private investment in industry in:
1. 1928
2. 1933
3. 1939
1. $15 billion
2. $ 2 billion
3. $10 billion
80
By what percentage did private investment in industry increase between 1933 and 1939?
400%
81
What was the period of Roosevelt's first hundred days?
4th March - 12th June
82
What legislation was passed in the first hundred days? (6)
```
FERA
CCC
PWA
NIRA
AAA
TVA
```
83
What was FERA?
Federal Emergency Relief Administration
84
What did FERA do?
$500 million allocated to help relive the poorest in society
85
What did the NRA do?
Set standards on working hours, child labour, wages and levels of production
- blue eagle = symvol of presidential approval
- over 2 million employers joined the scheme
86
What did the NRA do?
Set standards on working hours, child labour, wages and levels of production
- blue eagle = symbol of presidential approval
- over 2 million employers joined the scheme
87
Why was the TVA needed?
Overproduction and flooding had ruined the livelihoods of workers in the Tennessee Valley.
No other available jobs in the area
Area covered 6 states so was too big for one to deal with
88
What did the TVA do?
Huge public works projects building dams, irrigation, canals and water transport
Hydroelectric power created thousands of jobs
Farmers given loans and training in soil conservation
New housing built
89
What does the CWA stand for?
| When was it set up?
Civilian Works Administration
| November 1933
90
What did the CWA do?
Provided temporary work to 4 million people during Roosevlt's first winter as president (1933-34)
It was a life saver for many
91
1. What percentage of American homeowners did HOLC 'rescue' and in what period?
2. How many of these successfully repaid their loan?
1. 20% from 1933-36
| 2. 80 %
92
Name 2 features of the legislation in the second New Deal
WPA
| Social Security Act
93
What did the Social Security Act do?
- Provided state pensions for elderly and widows
- Allowed state governments to work with Federal government to provide help for the sick and disabled
Set up a scheme for unemployment insurance
-workers and employers made a small contribution to a fund each week which could be used if the worker became unemployed
