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
What was the New Deal based upon?
Relief
Recovery
Reform
(3 R’s)
When was the New Deal introduced?
January 1933
What happened during Roosevelt’s first hundred days?
9 March - 16 June 1933
Introduced a large number of government programmes aimed at restoring the shattered economy
Created Alphabet Agencies
What was the New Deal?
Policies introduced by Roosevelt to deal with the effects of the Great Depression
What were Alphabet Agencies?
Nickname to the group of organisation set up as part of the New Deal
What was the EBA (Emergency Banking Act)?
Americans had little confidence in the banks, many of which had gone bankrupt
Government closes all banks for 10 days and reassured the American people that their money was safe
Government officially backed 500 banks which helped to restore confidence
What was FERA (Federal Emergency Relief Administration)?
Poverty and unemployment (issue)
$500 million of emergency relief to help poorer and homeless people
What were the CCC (Civilian Conservation Corps)?
Unemployment among young people (issue)
6 months of work for men aged 18-25 in conservation projects such as planting trees tos top soil erosion
By 1940 2 million men had been given work by the CCC
What was the PWA (Public Works Administration)?
Unemployment (issue)
The government spent $3,300 million on publics work projects for unemployed people e.g building schools or roads or hospitals
What was AAA (Agricultural Adjustment Administration)?
Rural poverty, low crop prices (issue)
Help farmers increase profits
Subsidies paid to farmers to destroy their crops and slaughter animals in an attempt to push up prices
1936 - farm incomes 1.5x 1933
What was the NIRA (National Industrial Recovery Act)?
Poor economic condition of the USA (issue)
Encourage employers to improve conditions
Codes of practice for minimum wage, hours and conditions
Companies who complied could display the Blue Eagle symbol
What was TVA (Tennessee Valley Authority)?
Agricultural over production and regular flooding (issue)
21 dams built to irrigate the land and generate hydroelectric power
Farmers were given loans and training in soil conservation
What was the WPA (Works Progress Administration)?
Unemployment (issue)
Job creation schemes
Put people to work building roads, schools, hospitals, airports, harbours
What was the National Relations Act or the Wagner Act?
Workers’ rights (issue)
Workers given legal right to join trade unions
Stopped employers sacking union members
National Labour Relations Board protected workers against unfair practices
What was the Fair Labour Standards Act?
Fair play for workers (issue)
Tightened up laws against child labour and minimum wages
300,000 workers secured higher wages
1 million had a shorter working week
What was the Social Security Act?
Poverty (issue)
Pensions for over 65s
Aid to disabled people, widows and orphans
Unemployment benefits
Which legislation/ agencies were part of the first New Deal?
EBA
FERA
CCC
PWA
AAA
NIRA
TVA
Which legislation/ agencies were part of the Second New Deal?
WPA
The Wagner Act
Fair Labour Standards Act
Social Security Act
What were successes of the New Deal?
Restore confidence and faith in the government
Stimulated economy
Avoided swing to communism
Stabilised the US banking system
Restored confidence to markets
Workers protected
How many jobs were created by Alphabet Agencies?
4 million on public works schemes
2.5 million employed by CCC
How many lives did the TVA improve?
7 million
What happened to the income of farmers between 1932 and 1939?
Doubled
What were criticisms of the New Deal?
Some believed it didn’t go far enough
Discriminated giants black people
Wealth wasn’t shared out “fairly”
Undermined important American values, principles and laws
Federal government interfered too much
Encouraged people to live off the state
Too much power given to Trade Unions
NRA and AAA declared unconstitutional
What have later historical reflections concluded?
Alphabet agencies were short term solutions providing cheap Labour
Did not solve underlying economic problems
Second World War was ultimately what lifted America out of the Depression
What were the view of the Republicans?
Taxes holiday be increased
No set minimum wage
More money spent on military
Individual rights and justice
Private companies can provide more efficient healthcare services
Against government regulation
Oppose gay marriages
Abortion should be illegal
What were the views of Democrats
Taxation should be progressive
Minimum wage
Less money spent on military
Community and social responsibility
Government involved in establishing a fair healthcare system
Government regulation
Legal abortion
Support gay marriage
Who used the elephant and donkey in their drawings?
Thomas Nast
How is the USA governed?
Constitution
Federal system
What is a constitution?
Single document
Can only be amended
15th Amendment voting rights
First 10 amendments about rights
What is a federal government?
State government and own laws
Central government with control over foreign policy, trade, postal service
How many people were unemployed in 1932?
One in four workers
One in two black workers
13 million
What were Hoover wagons?
Cars with horses attached to them as couldn’t afford petrol
What were Hoover flags?
Pockets turned out to show they had no money
What were homes made from?
Cardboard, tin and wood
What were Hoover blankets?
Newspapers used to keep warm
How did Hoover cut taxes?
By $130 million
What does the central government have control over?
Foreign policy, trade, postal service
How are states governed?
Own government, different laws
What is the constitution?
A set of laws by which USA is governed, can only be amended
Who is the Head of the Government and State?
President
They choose Supreme Court and Cabinet Ministers with the approval of Congress
What does the US Parliament do?
Make laws
Who is elected every 6 years?
Senate
100 Senators - 2 per state
Elected by US people
Who is elected every 2 years?
House of Representatives
435 in total, number per state dependent on size of state
Elected by US people
What is the Supreme Court?
Carry out equal justice under law
Evaluates law
1 Chief Justice
8 Associate Justice
Chosen by President
Who chooses US Congressmen, Senators, President and Governers?
The US people
What are the 3 branches of US government?
Executive - carries out laws
Legislative - makes laws
Judiciary - evaluates laws
What were the unemployment statistics to do with Alphabet Agencies?
Unemployment fell from 24.9 million in 1933 to 14 million in 1937
Who strengthened the position of labour unions and workers?
NRA
How many people were employed by the CCC?
2.75 million including 8000 women
What happened when Roosevelt released the New Deal budget in 1937?
Fell back into Depression
After the New Deal was there still discrimination?
Yes
Which amendment gave freedom to enslaved people?
13th
By 1945, there were 3.5 million American sailors, how many black American sailors were officers?
58
What year was the navy desegregated?
1946
Who were the Tuskegee Airmen?
Tasked with protecting American bombers
