T2 Depression & The New Deal Flashcards
1
Q
What was the Gross National Product from 1929 to 1932 ?
A
$104 billion in 1929 to $59 billion in 1932
2
Q
By how much did farm prices fall between 1929 and 1932?
A
60%
3
Q
How many banks had closed by 1933?
A
5,500 banks
4
Q
What was the unemployment rate in 1929-33?
A
3.2% to 24.9%
5
Q
How many people were unemployed by 1933?
A
13 million
6
Q
What was the national income in 1929 to 1932?
A
$80 billion to $40 billion, it halved.
7
Q
What term was used sarcastically for shanty towns during the Depression?
A
Hoovervilles
8
Q
What was the effect of unemployment on industrial cities like Chicago?
A
40% unemployment rate
9
Q
What was the average relief provided to desperate families in Chicago?
A
$2.40 per week for an adult, $1.50 for a child
10
Q
What was the increase in the suicide rate between 1929 and 1932?
A
nearly a quarter
11
Q
What did Hoover’s policies fail to prevent?
A
rising unemployment
12
Q
What did the President’s Emergency Committee for Employment primarily do?
A
appeal to state and local agencies for funds
13
Q
What did Hoover believe was necessary for economic recovery?
A
support and cooperation from various bodies
14
Q
What did the Bonus Marchers demand?
A
immediate payment of a veterans’ bonus
15
Q
What was the total amount Congress voted for veterans’ bonuses?
A
$3.5 billion
16
Q
What happened on July 28 during the Bonus March?
A
Hoover approved the eviction of veterans
17
Q
Who commanded the operation to evict the Bonus Marchers?
A
General Douglas MacArthur
18
Q
What was the outcome of the eviction of the Bonus Marchers?
A
two veterans killed and a thousand injured
19
Q
What did Hoover’s policies emphasize during the Depression?
A
self-help and voluntarism
20
Q
What was the Hawley-Smoot Tariff intended to do?
A
boost domestic production
21
Q
How did Hoover attempt to increase spending?
A
cutting taxes and increasing federal budget
Expansionary fiscal policy
22
Q
What did the Reconstruction Finance Corporation (RFC) do?
A
made loans to large economic organizations
23
Q
What did the Glass-Steagall Act allocate for loans to private businesses?
A
$750 million
24
Q
What was the Federal Emergency Relief Administration (FERA) established for?
A
providing relief
25
What was the initial funding for FERA?
$500 million
26
What was a major consequence of the Wall Street Crash of 1929?
triggered company bankruptcies and bank failures
27
What did J.K. Galbraith describe the US economy as during the Depression?
fundamentally unsound
28
What was a significant problem in income distribution during the 1920s?
the rich grew richer
29
What was a key characteristic of Roosevelt's approach to the economy?
action, improvisation, and experimentation
30
What did Roosevelt promise in his 1932 election campaign?
welfare and job creation programmes
31
What was the unemployment rate by 1939?
9.5 million Americans still unemployed
32
What was a common critique of the New Deal?
it brought only partial recovery
33
What did historians debate about the New Deal?
whether it was a radical answer or conservative
34
What was the purpose of the Federal Emergency Relief Administration (FERA)?
To provide emergency relief and welfare for citizens affected by economic problems
## Footnote
It was established in May 1933 with an initial funding of $500 million.
35
What was the aim of the Farm Credit Act passed on June 16, 1933?
To help farmers refinance their mortgages
## Footnote
By 1936, it had refinanced 20% of agricultural mortgages and reduced rural debts by one billion dollars.
36
Fill in the blank: The Home Owners Loan Corporation (HOLC) helped _______.
[city dwellers refinance their home mortgages]
37
What did the Public Works Administration (PWA) aim to achieve?
To stimulate the economy through public works projects
## Footnote
It spent over $4 billion and constructed 34,000 public projects.
38
What was the purpose of the Civilian Conservation Corps (CCC)?
To employ young men in public works projects such as reforestation and park maintenance
## Footnote
It was created in March 1933.
39
What was the principal aim of Roosevelt’s agricultural policy?
To restore the economic position of farming
40
What did the Agricultural Adjustment Act of May 12, 1933, establish?
The Agricultural Adjustment Administration (AAA)
## Footnote
Its aim was to reduce production to increase prices to pre-war levels.
41
True or False: The AAA compensated farm tenants and laborers directly.
False
## Footnote
Compensation was awarded to landowners, not those who worked the land.
42
What was the outcome of the Supreme Court ruling in Butler v. United States regarding the AAA?
The AAA was declared unconstitutional
43
What was the Tennessee Valley Authority (TVA) established to do?
Control seasonal flooding and provide hydroelectric power
## Footnote
It was established on May 18, 1933.
44
What was the main goal of the National Recovery Administration (NRA)?
To stabilize business through fair competition codes
45
Fill in the blank: The NRA's textile industry code banned the use of _______.
[child labor]
46
What was the Supreme Court's decision on the NRA in Schechter v. United States?
The NRA was declared unconstitutional
47
What was the unemployment rate in 1933 compared to 1937?
24.9% in 1933 and 14.3% in 1937
48
What did the Emergency Relief Appropriation Act of April 1935 provide?
$5 billion for relief efforts
## Footnote
This established the Works Progress Administration (WPA).
49
What was the purpose of the Social Security Act passed in August 1935?
To provide old age pensions and unemployment insurance
50
What did the Revenue (Wealth Tax) Act of 1935 aim to accomplish?
Reduce government deficit spending by increasing taxes on corporations and the wealthy
51
Who was Father Charles Coughlin and what was his stance on Roosevelt?
A Catholic priest who initially supported Roosevelt but later opposed him and criticized his policies
52
What was Huey Long known for?
Being a populist Louisiana politician who advocated for wealth redistribution
53
True or False: The American Liberty League supported Roosevelt's New Deal policies.
False
## Footnote
They opposed the New Deal, believing it led to fascism and dictatorship.
54
What were the main criticisms of the NRA?
* Favored large businesses over small businesses
* Membership was voluntary
* Code violations were common
55
What was the significance of the National Labour Relations Act (Wagner Act) of July 1935?
It guaranteed collective bargaining rights for workers
56
What was the purpose of the Resettlement Administration established in May 1935?
To make loans for small farmers to buy farms or relocate
57
Fill in the blank: The Soil Conservation and Domestic Allotment Act replaced the _______.
[AAA]
58
What was the impact of the Dust Bowl on farmers?
It led to mass emigration and left many farmers destitute
59
What position did Long hold after being elected in 1930?
US Senator for the 1931 session, took seat in January 1932
60
Who did Long support in the 1932 presidential election?
Roosevelt
61
What was Long's main criticism of Roosevelt after his election?
Roosevelt did not intend to introduce a radical redistribution of the country’s wealth
62
Which acts did Long oppose?
* National Recovery Act
* Glass-Steagall Banking Act
63
How did Roosevelt view Long?
As a radical demagogue, one of the two most dangerous men in America
64
What action did Roosevelt take to discredit Long in 1934?
Had his finances investigated by the Inland Revenue Service
65
What was Long's stance on foreign policy?
Firm isolationist
66
What was the main proposal of Long's economic plan Share Our Wealth?
Capping personal fortunes, income, and inheritances
67
What limits did Long propose for personal fortunes and income?
* Personal fortunes to $5 million
* Annual income to $1 million
* Inheritances to $5 million
68
What guaranteed financial support did Long propose for families?
* Basic household grant of $5,000
* Minimum annual income of $2,000-3,000
69
What additional proposals did Long include in his plan?
* Free primary and college education
* Old-age pensions
* Veterans’ benefits
* Federal assistance to farmers
* Public works projects
* Limiting the working week to 30 hours
70
What organization did Long form in February 1934?
The Share our Wealth Society
71
How many members did The Share our Wealth Society have by 1935?
Over 7.5 million members in 27,000 clubs
72
What was the impact of Long's organization on Roosevelt's policies?
Considered responsible for Roosevelt’s ‘turn to the left’ in 1935
73
What did Long announce in 1935 regarding the Democratic Party presidential nomination?
Intention to challenge Roosevelt
74
When was Long shot, and by whom?
On 8th September 1935, by Carl Austin Weiss
75
What legacy did Long leave behind?
Considerable legacy in public works and social reforms
76
How is Long viewed historically?
Divided opinion, regarded as a folk hero by some and a demagogue by others
77
Who was Francis E. Townsend?
An American physician known for his revolving old-age pension proposal
78
What was the main goal of Townsend's pension proposal?
To end the Depression through consumer spending by ending poverty among the aged
79
What was a major criticism of Townsend's plan?
Taxes would be insufficient to cover the high pensions
80
What change did Townsend and Clements make to their proposal?
To pay out only as much as the tax would bring in
81
With whom did Townsend ally in 1936?
Father Charles Coughlin to back William Lemke for President
82
What old-age policy did Roosevelt propose in response to Townsend's ideas?
Old Age Assistance and a national old-age annuity programme
83
What was the average Old Age Assistance benefit in 1939?
About $20 per month
84
What significant impact did the Townsend Plan have on the Social Security Act?
Induced amendments significantly upgrading old-age benefits
85
What did the US Supreme Court begin to challenge in early 1935?
The New Deal, particularly the delegation of legislative power to executive agencies
86
What was the outcome of the 'sick chicken' case in May 1935?
The Court annulled the entire National Industrial Recovery Act
87
What did Congressman David Lewis demand regarding the Supreme Court?
Curtailed authority of the Supreme Court
88
What was the main focus of the Second New Deal launched in summer 1935?
To seek allies in the labour movement and among the lower classes
89
What did the National Labour Relations Act of 1935 establish?
Protected rights of private sector workers to organize unions and engage in collective bargaining
90
What did the Supreme Court rule regarding the Agricultural Adjustment Act in January 1936?
Invalidated FDR’s Agricultural Adjustment Act
91
What was Roosevelt's response to the Supreme Court's rulings against the New Deal?
Announced a 'court packing' plan on 5 February 1937
92
What was the main idea behind Roosevelt's 'court packing' plan?
Add one judge for every Supreme Court justice who did not retire by age 70½
93
What was the outcome of FDR's 'court packing' plan?
Provoked national outrage and ultimately failed
94
By 1941, how many of the Supreme Court justices were Roosevelt appointees?
Seven of the nine justices
