Great Depression/ New Deal Test Flashcards
Causes of the great depression
credit, buying on margin, overproduction/underconsumption, insider trading, bank runs
Overproduction
When the farmer grow too much food
Underconsumption
when there is too much food because the people arent buying it
Hawley Smoot Tariff
Raised tariff on goods coming to america- made depression worse, other countries did the same and world trade stopped
Buying on margin
Borrowed money- credit, pay the rest later
speculation
bull= good, bare= bad
Dorothea Lange
photographer during the depression
Insider trading
cheating the stock market- knowing insider secrets
Bonus Army
WW1 vets who wanted their bonus early, caused riots
What caused the stock market to crash so badly?
people freaked out and sold their stocks, led to a huge decline in stocks, people who bought on margin couldnt pay it back
How did it affect the farmers?
prices of crops went down, farms were foreclosed
How were the common people affected?
people weren’t buying so businesses went out of business, went to bread lines
Hoovervilles
shacks and tents in vacant lots that people lived in- named after hoover
Which did the most to trigger a worldwide collapse?
the tariff
What was the main contributor of the banks faiking?
people withdrew all their money
The dust bowl
very bad draught caused y overused farm land- soil turned to dust, okies left the farmlands
Glass- steagall act
helped create the FDIC
Agricultural Adjustmant Act (AAA)
subsidized farming- reduced crop production- declared unconstitutional because it wasnt fair to all farmers
Civilian Conservation Corps
hired young men to do work- like the military- payed $30 but only kept 5, the rest went to parents
National Industrial Recovery Act (NIRA)
Declared unconstitutional- increased production and gave people money to buy it
National Recovery Administration (NRA)
Created fair business- red eagle for businesses
Federal Emergency Relief Administration (FERA)
sent funds to state governments and then gave cash to the needy
Works Progress Administration (WPA)
Created most jobs- built bridges, buildings, and parks
National Youth Administration (NYA)
created jobs for students
Public Works Administration (PWA)
Oversaw construction projects- had little impact on economy
Federal Deposit Insurance Company (FDIC)
guarenteed bank deposits up to 5 thousand if money was lost in banks
Securities and Exchange Commission (SEC)
regulates the stockmarket
Social Securities Act
provided money for the retired- made them spend money which was good for the economy
Tennessee Valley Authority (TVA)
created jobs- built dams on the river- made jobs and power- declared unconstitutional because it put the government in competition with private businesses
Wagner Act (NLRB)
Guaranteed workers the right to make unions
Fireside chats
radio broadcasts that FDR got support from
How many supreme court judges did FDR want?
12
Huey Long
governor of louisisana- everyman a house, a car, and a fish- “share the wealth program”
What did FDR do/ say that was controversial
Said that people had the right to unionize
What were FDR’s first 4 things he did as president?
Fix the banks (closed them and then put 2 billion back in banks),
regulate business (pay workers, SEC, pay workers),
Save the farmers (AAA, get rid of debt, subsidizing),
Put money into the economy (Social security, lower interest rate, government jobs)
What was hoover’s approch to the depression?
rugged individualism
