Great Depression Flashcards
What were the causes of the Great Depression?
I. Overproduction and Underconsumption: Overproduction is when they make too much of a product and there is less demand so the price goes down.
II. Stock Market Crash: People thought the market would infinitely continue to rise and so they bought on margin. (People have to pay loans for a stock that has no value)
III. Bank Runs: Everybody gets scared and frantically takes out their money and leads to banks going out of business.
IV. Farming Woes: There is a surplus of crops and this drove prices down which put farmers out of business.
What were Social and Economic Problems in the Great depression?
Breadlines and Soup Kitchens:
Hoover called on charities and churches to help the needy. Americans lining up outside of charities and churches for food assistance.
Shantytowns/Hoovervilles:
towns with houses made out of scraps. Called Hoovervilles because President Hoover was widely blamed for their issues.
The Bonus Army:
WWI veterans wanted their promised money early because of the bad economy. They peacefully protest outside the white house and Hoover orders the military to use tear gas, machine guns to move them out. Hoover lost all of his support.
What did Hoover vs FDR Believe in?
Hoover believed in Rugged Individualism which was people should fix their own problems. It;’s not the government’s job to take care of ppl. Also wanted charities and churches to help the population. He also liked Lasseiz-faire. The reconstruction and Finance act is where he gave loans to businesses that are struggling.
FDR: The opposite. He believes it is government’s responsibility to help the people. Wants to help people get jobs.
What is FDR’s Hundred Days?
Inaugural Address: He wanted to give the people hope.
Fireside Chats: When FDR broadcasted fireside chats to the nation where he discussed the issues and the government’s plan to solve these issues. So he wanted to give Americans faith in the government.
Bank Holiday: He closed every bank that did not have enough funds to stay open. He wanted to give Americans more trust in banks.
Brain Trust: When FDR appointed top economists, scholars, professors to the Cabinet to help advise FDR.
What is the New Deal?
Recovery: Programs to help businesses and farms to stay in business and recover economically.
Relief: Immediate help to support unemployed people.
Reform: The government sets up programs to prevent a future depression.
CCC: gave jobs to people
Social security: Free money for old people and Unemployment insurance.
What are the criticisms of FDR?
FDR served 4 terms.
Huey Long: A critic of FDR. FDR is not doing enough, he needs to tax wealthy people, and redistribute wealth to poor people.
Court Packing: Supreme Court was ruling against FDR which prevented him from passing some of his New Deal legislation. So, FDR is mad that S.C is checking his power so he tries to appoint 6 more justices to have a majority.
What is the Dust Bowl
Takes place in the great plains. Dust got everywhere.
Effects on people:
Okies, People moving to california
What is Escapism?
People wanted to spend money to distract them from their troubles from the Great Depression. Stuff like Wizard of Oz, Monopoly, Comic Books, etc.
