Test #3 Flashcards
causes of the great depression:
- transition from WWI: wartime to peacetime economy
- unemployment- 25%
- overproduction
- inflation
- overextension of credit
- loack of diversification
- maldistribution of wealth- working class was broke
- world trade collapsed
- stock market crash in 1929
progressivism retreats- 3 republicans:
Harding, Coolidge, Hoover
-Hoover was in office when depression started, wes against the govt. helping civilians, thought of as “heartless”
hoover’s philosophy:
Trickle Down Theory
-weathy or successful people are the prime movers in the economy; govt. aid should go through
Reconstruction Finance Corporation
-one of Hoover’s organizations
-reorganizes business loans
what years does Franklin D. Roosevelt win
1932, 36, 40, & 44
who was the only U.S president to serve more than two terms?
Franklin D. Roosevelt
-didn’t finish the last 4 years b/c he passed away
Prime the Pump Theory
-put money into working class programss, they will spend that money and it will spread
New Deal
relief, recovery, reform
Workers’ Rights:
-AAA: provision for reducing crop production to end agricultural surpluses & halt the downward spiral of farm prices
-govt. would tell individual farmers how to produce & pay farmers subsides for leaving some of their land idle
-Fair Labor Standards Act: minimum wage= $.40/hr., overtime of 40 hrs, child labor
-Social Security Act: over *65 (now 70) recieved stipends from current workers (6.25%)
-Financial Reform:
Securities & Exchange Commission: regulates the stock market, audits books in quartery reports
-Glass Steagall Act: seperate banks, stock brokers, & insurance companies
-FDIC: Federal Deposit Insurance
Corporation: insured accounts up to $100k (now $250k)
work relief- govt. jobs:
-WPA (Works Progress Admin): 11 million jobs, $9b, infrastructure
-CCC (Civilian Conservation Corps): 3 million jobs
-recreational areas
-unmarried young men
-CCC was sexist, if women tried to apply, they would send them to the WPA
-PWA (Public Works Admin): courthouses, libraries, schools
-AAA (Agricultural Adjustment Act): farm loans, resettlement program, subsidies
-Rural Electrification Act: govt. owned electric companies, esp. in the south & west
-Tennessee Valley Authority: power to 6 southern states
Benefits:
-jobs x3 -flood control
-hydroelectric power -recreational areas
-reforestation -soul erosion control
-navigable river -reservoirs
-rates reimburse govt.
Legacy of the New Deal
-6 yrs
-does not end Depression
-alleviates suffering
-political realignment
-AAs, hispanics, women
-building project (still used to this day)
-national debt
-size of govt. increases
-workers’ rights
Court Packet Scheme
-created by FDR
-fill in later
global crisi
shift from isolationism to more international cooperation
what cooperations failed?
-League of Nations failed
-United Nations created in place
-Atlantic Conference failed to streamline currency
important in international trade
International Monetary Fund
