PAP USH Chapter 11 Flashcards
Study Sheet
CAUSE: Overproduction
1920, people were making more than they could sell.
CAUSE: Speculation
1920s, “get rich quick” with high stock prices and investments in Wall Street. Prices 3x from 1920 to 1929.
CAUSE: Shaky Banking
Uncontrolled bank systems and stock markets because some bankers invested their depositors money in unsound investments to avoid interest they give to the depositors.
CAUSE: Restricted Trade
1930, Hoover set up the highest tariffs in US History on imported goods, making other countries set high taxes and shrinking world trade.
EFFECTS: Business Failures
“Black Tuesday” October 29, 1929, the stock market crashed.
EFFECTS: Bank Failures
Businesses could not raise funds, people could not repay loans/rent, and people lost money.
EFFECTS: Unemployment
25% people cannot find work, farmers lost farms, banks failed, no employment insurance or bank deposit insurance.
EFFECTS: Foreclosures
1930s, home prices plummeted and thousands of foreclosures were used to compensate for some of the money lost.
RELIEF New Deal: Federal Emergency Relief Act [FERA] 1933
1933, funded state and local governments to provide emergency relief, also hired Americans for “make-work.”
(Picking up trash, local road work, etc..)
RELIEF New Deal: Public Work Administration 1933
1933, federal jobs by building public projects, schools, roads, courts, post offices, and bridges.
RELIEF New Deal: Civilian Conservation Corporations [CCC] 1933
1933, gave jobs to young American men (cleaning forests and planting trees), most members lived on camps where food was provided for free, and most of the pay was sent back to their families/parents.
RELIEF New Deal: Work Progress Administration [WPA] 1935
1935, hiring artists, writers, musicians to paint murals, produce plays, and create other artworks.
RECOVERY Legislation During New Deal: Priming the Pump
Sending money to the economy so it’s “back on it’s feet” and if the consumers have more $$$, they spend more = more aggregate demand.
RECOVERY Legislation During New Deal: National Recovery Administration 1933
1933, asked businesses to follow voluntary code; standard prices, production limits, and a minimum wage.
(1935 deemed unconstitutional.)
RECOVERY Legislation During New Deal: Agricultural Adjustment Acts
AAA 1 paid farmers to plant less so crop prices can increase, (1936 = unconstitutional), 1938 AAA 2 brought farm prices up by buying farm surpluses, storing them in warehouses until prices went up.
REFORM Legislation During New Deal: Federal Deposit Insurance Corporation [FDIC] 1933
1933, bank deposits so people would not loose their money if a bank fails.
REFORM Legislation During New Deal: Tennessee Valley Authority [IVA] 1933
1933, 21 government dams along the Tennessee River that controlled floods and produced electricity.
REFORM Legislation During New Deal: Securities and Exchange C omissions [SEC] 1934
1934, watch over the stock market, prevent fraud, and guard another stock market crash from happening.
REFORM Legislation During New Deal: National Labor Relations Act 1935
1935, “Wagner Act,” gave workers the right to form unions and bargain collectively while submitting grievances to the national board.
REFORM Legislation During New Deal: Social Security Act 1935
MOST IMPORTANT - 1935, unemployment insurance, old age pensions, and insurance if someone died early.
New Legislation Favorable to Labor: National Industrial Recovery Act 1933
1933, guaranteed workers the right to form unions so employers could not refuse to hire them.
(1935 = unconstitutional and replaced by the Wagner Act.)
New Legislation Favorable to Labor: Norris LaGuardia Act 1932
1932, prohibited injunctions against peaceful strikes.
New Legislation Favorable to Labor: Wagner Act 1935
1935, replaced the National Industrial Recovery Act, gave the right to unions and bargaining collectively = union membership increased.
Impact of New Deal on State and Federal Government
Federal Government size and power increased.
Impact of New Deal on State and Federal Government
Responsibility to fix the economy.
Impact of New Deal on State and Federal Government
Taxes increased to fund government programs
Impact of New Deal on State and Federal Government
Some programs ended, while some remained.
Impact of New Deal on State and Federal Government
Legacy of the government agency, regulations, and procedures are still here today.
Black Tuesday
October 29, 1929, the day the stock market crashed.
Business Cycle
The ups and downs of business activity.
Depression
The negative aspects economically, characterized by business failures, unemployment, and falling prices.
Dust Bowl
1930s, farmers on the great plains suffer from natural disasters.
Great Depression
1929 - 1940, the worst depression in US History.
Interest
Banks take money from depositors, the deposited money goes to people who take loans, bankers take interest from the loaners, some of the interest returns to the depositors.
Margin
1920, stocks can be purchased for a 10% down payment.
Mexican Repatriation Act
Send Mexican-American immigrants back to Mexico.
(1M+ were sent back.)
Okies (Oakies)
Farmers from Oklahoma that went to migrant worker camps in California.
Aggregate Demand
The total level of demand for desired goods (GDP).
Hoovervilles
Shanty towns where unemployed and homeless people live.
Reconstruction Finance Corporation
1932, emergency relief to banks and businesses sent by Hoover.
Rugged Individualism
Hoover believed that if people needed money, it should not come from the government but from nonprofit organizations.
Bank Holiday
National banks close and reopen after federal inspections.
Brain Trust
A group of people that worked under Roosevelt from high universities.
Fiat Money
Paper currency Roosevelt wanted people to rely on to expand money and stimulate the economy.
Fireside Chats
Radios people listened to, to hear Roosevelt talk about policies and reassure them.
First 100 Days
The “New Deal” passed by Roosevelt for the 3 R’s: Relief, Recovery and Reform.
Gold Standards
Roosevelt ended the bimetallic system of money (no gold), except for jewelry.
Court Packing
Roosevelt wanted 6 more justices to the 9 already on court, which the public condemned but the Congress rejected.
Liberty League
A minority conservative group that believed Roosevelt was a traitor to his class for taxing the rich, and wanted to establish a Popular Dictatorship.
Schechter Poultry V. U.S 1937
1937, Congress cannot give the president more power than the constitution, even in a national crisis.
(Deemed the NIRA unconstitutional.)
Dorothea Lange
Photographer who captured the miseries of the Great Depression.
John Steinback
Writer who recorded the miseries of the Great Depression.
Herbert Hoover 1929 - 1933
1929 - 1933, president that was blamed for the Great Depression, believed in Rugged-Individualism and the Laissez-Faire.
Frances Perkins
1933, the first female member of Roosevelt’s cabinet to serve 12 years as the Secretary of Labor.
Eleanor Roosevelt
The wife of President Roosevelt, spoke for women’s rights, the cause of peace, and the poor. She was also known as the eyes and ears for Roosevelt by traveling the country.
Franklin Roosevelt
1932 he was elected (NOT in office), 32nd president, 1933-1945, known for the New Deal and leading WW2.
Father Charles Coughlin
Gave radio speeches for the nativists and those who distrusted Wall Street about the nationalism of banks and utilities. Anti-Semitic, but the Catholic Churches ended his broadcasts.
Huey Long
US Secretary and Governor of Louisiana, believed that everyone should get 5k a year, by taxing the rich, but he was assassinated before the campaign against Roosevelt.
Francis Townsend
Believed that Roosevelt did not go far enough for the American economy, and he wanted to give citizens over the age of 65, $200 a month, that must be spent within the same month.
