The Development Of The USA (1929-2000) - Economic Downturn And Recovery Flashcards
What was the Wall Street Crash?
The panic selling of shares on Wall Street led to a loss in confidence in the financial market. Share prices crashed, causing the collapse of the US stock market.
When was the Wall Street Crash?
October 1929
What is an impact of the Wall Street Crash involving unemployment?
Factories banks and businesses collapsed
Mid 1929 unemployment = 1.5 million
1930 = 5 million
1931 = 9 million
1932 = 13 million
What was the impact of the Wall Street Crash in terms of family life?
No system of social security so many were forced to rely on charity
Sharp rise in suicides and a fall in the number of marriages and birth rate
What was the Great Depression?
The economic and social slump which followed the Wall Street Crash
What was a hobo?
An unemployed wanderer searching for work
What was an impact of the Wall Street Crash in terms of Depression in the cities?
By 1933, 1/3 of the workforce in the cities was unemployed
Many could not pay the rent and became homeless, forced to live in shanty towns called Hoovervilles
What was an impact of the Wall Street Crash in terms of Depression in the countryside?
Many farmers were unable to sell their produce and became bankrupt
Many were evicted and became hobos
What were the dust storms?
A drought in 1931 caused the soil in Oklahoma, Colorado, New Mexico and Kansas to turn to dust
Dust storms created a dust bowl affecting 20 million hectares
What is Balancing the Budget?
Making sure the government does not spend more money than it gets from taxes
What is Rugged Individualism?
The idea the individuals were responsible for their own lives and should not expect help from the government.
What was the Bonus Army?
First World War Veterans who gathered in Washington in 1932 to demand cash payment of war bonuses
What were Hoovervilles?
Shanty towns built on the dues of cities by unemployed people during the Great Depression: named after President Hoover
Who was Herbert Hoover?
A Republican who became President in 1928
Why was Herbert Hoover criticised?
Doing too little to help those affected by the Depression
What did Herbert Hoover believe in?
Balancing the budget and refused to borrow money to help create jobs
Rugged individualism
What happened in May-June 1932?
The Bonus Army of unemployed war veterans marched on Washington to demand the early payment of war bonuses which were due to be paid in 1945. They set up a large Hooverville outside the White House.
What was Hoover’s response to the Bonus Army?
Hoover sent troops into the Hooverville to remove them and burn down the shanty town
What was a popular slogan about Hoover?
In Hoover we trusted, now we are busted
What measures did Hoover introduce in 1932 to relieve the crisis?
Feb - Reconstruction Finance Corporation - $2 billion of federal aid to ailing banks, insurance companies and railways
July - Emergency Relief Act - $300 million to state governments to help unemployed people
July - Home Loan Bank Act - 12 regional banks were set up to stimulate house building and home ownership
Who were the candidates for the 1932 Presidential election?
Republican Herbert Hoover
Democrat Franklin Delano Roosevelt
Who won the 1932 Presidential election?
FDR won a landslide victory of 42 out of 48 states
Why was Herbert Hoover unpopular?
Republicans blamed for Depression
Criticised for harsh treatment of Bonus Army
Relief schemes were too small and too late
Didn’t offer anything new
Why was Roosevelt increasingly popular?
Democrats offered a more caring image
Had overcome personal hardship when he had polio/ he was a fighter
Simple message
Promise American people a New Deal