Part 2 Flashcards
How did the Wall Street Crash affect businessmen?
A falling demand for businessmen decreased their wages.
Businesses begun to introduce wage cuts and work force cuts.
This increased unemployment rates.
How many banks closed between 1929 and 1932?
2900
Spending down by 25B$
People lost trust in banks and withdrew money
How did the Wall Street Crash/Economic depression affect farmers?
Farmers had a low income, but the cost of running a farm did not change.
Farmers increased the amount of crops for a sustainable income.
Due to wage/work force cuts across the country, nobody could afford the crops.
Farmers could not pay debts and mortgages, and lost homes and fields.
Poor farming turned the soil to dust, causing the Dust Bowl
How did the Wall Street Crash happen?
Companies made too much stock that nobody was buying.
A decrease in income forced wage/work force cuts.
Rugged individualism limited exports due to high tarrifs, exacerbating the excess stock issues.
How did unemployment change between 1929-23?
2% unemployment in 1929 25% unemployment in 1933
AAs were 4-6 times greater unemployment
People failed to pay mortgages, losing homes.
How did the Wall Street Crash affect the car and road industries?
car production down 80%
road and building down 92%
What were the 3 R’s of Roosevelt’s overall approach?
Relief, Recovery, Reform
What were fireside chats?
Roosevelt conducted radio addresses to address fears and to inform the American people.
How many Americans tuned into the fire side chats?
60 million
What did Roosevelt pass to save the banking sector?
Emergency Banking Relief Act
What did the Emergency Banking Relief Act do?
4 day bank holiday in 1933 Forced banks to close for inspection, eliminating fradulous practice and regaining public trust in banking systems. Redeposited 1b dollars.
Why did Roosevelt end Prohibition in 1933?
Prohibition was causing organised crime, and deaths from poor quality alcohol.
Introduced an income stream, as alcohol can be taxed by government
Easy win - Made the general public cheerful and amicable of Roosevelt, gaining him support.
Name all the alphabet agencies.
TVA - Tennesee Valley Authority
AAA - Agricultural Adjustment Agency
CCC - Civilian Conversation Corps
NRA - National Recovery Administration
What was the purpose of the TVA and what did it do?
Purpose: Improve soil quality.
Actions: - Built 33 dams to control Tennessee River.
- Built power stations to attract light engineering. - Built a 650 mile waterway linking major river systems
How effective was the TVA?
Entirely revived industry and agriculture.
- Created thousands of jobs as companies moved there for new opportunity
- Land conserved and improved - Highest production of electricity in the US
- Local health, economy and welfare improved
Little opportunity for AA + women - Only 7 states = Not widespread
What was the TVA focused on out of Roosevelt’s RRR?
Relief and recovery
What was the AAA’s purpose and actions?
Purpose: Increase farmers’ wages
Actions taken: - Farmers paid to produce less food and livestock
-> Less produce increased prices
e.g. 1933-39: Farmers’ wages doubled
- Cotton farmers paid to plough up 10m acres of already planted cotton
- Government bought and killed 6m piglets
How effective was the AAA?
- Some of the wasted piglet was given to the poor in tins, but 90% was destroyed
-> Ethical concerns - Ruled a matter for State govt. and not Federal, ruled unconstitutional at Supreme Court 6:3 in favour of State govt.
- Many farmers were evicted anyway, as machinery replaced their jobs
Which of Roosevelt’s RRR was the AAA focused on?
Relief and Reform