The depression & the new deal Flashcards
When was the Wall Street crash?
1929
What happened at the Wall Street crash?
American economy crashed, destroying all prosperity from the boom
Banks went bankrupt
People lost their shares
Rich large scale investors who had invested money in banks lost it
What were the effects of the Wall Street crash?
By 1933, 14 million were unemployed Average wage fell by 60% Through 1931, 45 people died of starvation Farm income fell to $5 billion 4 million Americans had lost everything Suicide rate went up
What was the cycle of depression?
Reduced spending > Wall Street crash > Tons of citizens took their money out of banks at once which led to ‘The banking crisis’ > Banks collapsed causing big companies to collapse too which led to Unemployment > No jobs = No money
What did Hoover do?
He refused to admit there was a problem until 1932 > led to criticism, people said ‘In Hoover we trusted now we are busted’
Republicans didn’t want to change their policy of no intervening
1930-1932 he tried to re start economy by tax cuts so people had more money to spend
Tried to protect US industries by introducing tariffs but this effected international trade and made the depression worse
What was rugged individualism?
Hoovers belief that citizens needed to help each other and not just rely on the government
What was the bonus army march?
20,000 veterans peacefully camped in Washington asked for their war bonuses to be paid early. Hoover refused to meet & got General MacArthur to deal - he reacted with tear gas, police burned their camps ignoring Hoovers instruction to treat them with respect. MacArthur claimed they were communist agitators with no evidence. Hoover refused to admit he had failed to control MacArthur.
What were Hoovers successes?
1) Came up with Hoover Dam which gave men jobs
2) Cut taxes for citizens
3) Signed federal home back loan which gave financial help to help people buy their homes
What were Hoovers ‘failures’?
He made international tariffs rise to 40% - other countries retaliated and didn’t buy anything American > Farmers had too much stock
Tried to make Americans help each other when they couldn’t help themselves
What did Roosevelt promise?
Spread employment Legalise sale of alcohol Justice for war veterans Promised a new deal Restore agriculture Stabilise banking system
What were the election results?
Roosevelt won by 7 million votes and won the majority of seats in conquest.
Hoover was disliked by public as he didn’t help them in the depression
What happened in ‘The first 100 days’ of the new deal?
Firstly, closed all banks until they were gov checked to tackle banking crisis. 5,000 were re opened.
FDR sent 15 proposals to congress & all 15 were accepted
What was the FERA alphabet agency and what did it do?
FEDERAL EMERGENCY RELIEF ADMINISTRATION
Helped meet urgent needs of the poor
$500 million spent on soup kitchens, blankets, nursery schools and employment schemes
What was the CCC alphabet agency and what did it do?
THE CIVILIAN CONVERSATION CORPS
Aimed to help young unemployed (mainly men)
Around 2.5 million men were helped
Most work done by CCC was on environmental parks
What was the AAA alphabet agency and what did it do?
THE AGRICULTURAL ADJUSTMENT ADMINISTRATION
Paid farmers to reduce production of main items to drive up prices
Tried to help farming long term
Helped modernise farmers and helped them use methods to preserve soil
Also helped farmers with mortgages in desperate times
Helped farmers but modernisation but labourers out of work
Successes and failures of AAA?
Successes:
Led to better standards of living for farmers, total farm income rose from $4.5 billion to $6.9 billion
Dealt effectively with overproduction
Failures:
Received criticism as they were destroying food when many Amercians were starving eg. 6 million piglets killed which received an outcry even though some was given to feed unemployed
Successes and failures of FERA?
Successes: Helped people in need
Failures: Many state governments refused to spend more and said the poor were poor through their own fault
Successes and failures of CCC?
Successes: Helped 2.5 million young men
The men benefitted from the training they provided
Failures: Criticised for only focusing on white men
