Great Depression / New Deal Flashcards
Black Tuesday
Oct. 29, 1929: The day the stock market prices dropped sharply / crashed.
Dust Bowl
Caused by drought, high winds, over production of crops.
Bonus Army
Group of WWI vets and their families that marched to D.C. in 1932 to demand the immediate payment of their government war bonuses in cash
New Deal
FDR’s program to help fight problems of the Great Depression. 3 R’s: Relief for the needy, Recovery for the economy, Reform for financial institutions.
Court Packing Scheme
failed plan by FDR to increase number of Supreme Court Justices from 9 to 15
buying stock on margin
Borrowing money to buy stock
unemployment rate
Peak unemployment rate during Great Depression was 25%. Even with New Deal program, it was as high as 14%.
Hooverville
shantytowns (areas of shacks or makeshift dwellings) built by destitute people during Depression. Called Hoovervilles bc the people blamed him for not helping.
Dr. Francis Townsend
1st supported FDR but then became a critic bc the New Deal didn’t help elderly. Inspired FDR to make Social Security. Created revolving pension plan. Supported by 2% tax. Every person over 60 gets $200 monthly (retired) and had had to be free from habitual criminality. Had to spend $ within a month to stimulate economy.
Father Charles Coughlin
Became famous bc he starts one of the 1st radio shows. Originally an FDR supporter, he later became a critic bc he felt FDR was controlled by the Jewish (he was a strict Catholic)
Main causes of the Great Depression
availability of easy credit, overproduction of food, crisis in farm sector, stock market crash
Differences in Hoover’s approach and FDR’s approach?
Hoover: Gov. should play limited role. People should help themselves, and stock market will fix itself. FDR: Gov. should play a large role, should help people.
Criticism of New Deal from left and right?
Left: not far enough. Right: too far
Short and long term effects of the Great Depression:
Short: Children and adults had poor diets, homelessness, unemployment
Long: people developed saving habits, became more thrifty
What did Huey Long’s “Share our wealth” plan call for?
Heavily taxing the rich and giving it to the poor.