Great Depression and New Deal Study Guide Flashcards
how did the stock market cause the great depression
Many lost all of their life savings when the stock market crashed, sent thousands into poverty
what are the 4 cause of the depression
stock market crash
failing ag./dust bowl
credit
overproduction
how did the failing ag./dust bowl cause the great depression
destroyed crops, no food to eat
how did credit causes the great depression
buying on margin, borrowing money, stock crashed, and money was lost
how did overproduction cause the great depression
too much stuff/factories and farms, noone had money to buy
what are three ways that pres. Herbert Hoover adressed the Depression
Trickle Down Policy
Reconstruction Finance Corp.
EMrg. Relief Act
Trickle Down Policy
- asked business not to cut wages/production
- wanted city and state gov. to fund building projects
- setup farm board to lend money to farmers to form co-ops and sell crops as a group
Reconstruction Finance Corp
PRovided financial support to state an local gov. and made loans to banks, RR, mortgage assoc., and other buisness
Emergency Relief Act
Put money into public works programs, which were gov. funded (relief) projects to build public facilities and create jobs
how did the great depression affect farmers
lost their crops from the dust bowl
how did the GD affect workers
many laid off from their jobs, lost money
how did GD affect banks
many closed, lost others’ savings
how did GD affect the econ.
Crashed w/ stock market, virtually no economic activity
how did GD affect buisnesses
collapsed w/ stock market
how did GD affect gov
people expected gov. to have all the answers, held responsible for all misfortune US citizens inherited from the GD
how did GD affect foreign countries
tried to protect their industries by raising tariffs on imported goods
Whata was the Bonus Army? Why did the BOnus army lobby congress?
a group of WWII vets that demanded cash payment redepmtion of their service certificates, which is why they lobbied congress
define escapsism. How did people escape the harsh reality of the GD?
Escapism- Tendency to seek distraction and relief from unpleasant realities, sought entertainment or engaged in fantasy. People escaped harsh reality of the GD through escapism and entertainment
How did the New Deal assist farmers
AAA(Ag. Adj. Act) Encouraged those still farming to grow fewer crops, so there;d be less produce on the markets crop prices would rise, thus benefiting farmers, not consumers
what were the 3 goals of FDR’s New Deal
Relief- imediate relief for issues
Recovery- rebuild from issues
Reform- Prevent some issues from happening again
whats an ex. of a relief program
Farm security Admin(FSA)
1937. (Formely caled Resettlement Admin) aided sharecroppers
ex. of recovery program
TN Valley Authority (TVA)
Econ. devlp. of TN river, watershed and increased jobs from 20 dams built
ex. of reform program
Fed. Housing Admin(FHA)
Improve housing standards and conditions and insure mortgages
what wass AAA
Ag. Adj. Act
Paid farmers to grow less (decided unconstitutional)
(Recovery)
What was the Social Security Act
(Reform) PRovided gov. aid retired and unemployed
FDIC
Fed. Deposit Insurance Corp.
Granted deposits in individusal bank accounts
SEC
Securities and Exchange Commision
Required full disclosure of info. on stocs being sold. SEC regulated the stock market. Reserve board to reg. purchase of stock on margin
Fireside CHats
Series of radio broadcats by FDR in response to GD
Hooverville
nickname given to shantytowns
Speculation
Practice of making high-risk investments in hopes of gaining in return, used in the stock market crash
Margin
Borrowing money. Buy stock by paying small portion of what Stock is worth.
Depression
Period of declining econ. activity. Effect from stock market crash
Court Packing
Roosevelt’s reform to the supreme court by appoint additional justice for every over 70 yrs old. Wanted to raise from 9-15
Bank Holiday
Banks closed, transactions suspended across nation except for making change.
Huey Long
“Share our wealth” gov. LA gov. Heavy tax on wealthy, Believed everyone should have a house, car, and money, assasinated in 1935
Father Coughlin
a. Mad at FDR for not being tough enough on big business
b. Hates communist, Unions, Jews (Hitler?)
What was the legacy of the New Deal
Shift in gov, philosophy, as a result, americans believed fed. gov. has responsibility to esnure health of the nations econ. and welfare of its citizens. Didnt end depression but provided Americans w/ econ. security.
why was relieving unemployment such a challenge for Pres. Roosevelt
Many people unemployed and businesses weren’t hiring so no one could get a job., unemployment rates were so high it was nearly impossible
What was the gov.’s philosophy behind the New Deal
Relief
Recovery
Reform
