The Great Depression and New Deal Flashcards
1
Q
Causes of Depression
A
- Drop in farm prices
- uneven distribution of income
- get rich quick using real estate and stocks
- over extension of credits
- too many goods
- immediately caused stock market crash
2
Q
Bubble Burst
A
- October 29, 1929
- stock market lost $30 billion
- beginning of great depression
3
Q
Banking System Collapse
A
- banks heavily invested in the market
- collapse of market -> bank failures
- depositors panicked -> more bank failures
4
Q
Hoover’s Response (to Crash)
A
- believed that private charity was best suited to solve problems
- efforts failed
- Reconstruction Finance Corporation achieved success (loaned money to businesses so people an get employed “trickle”)
5
Q
Hoovervilles
A
- settlements of shacks inhabited by transients and unemployed
- named after pres. hoover
- every city had at least one
6
Q
The Bonus Army
A
- Patman Bill was to move up bonus payments from 1945 to 1933
- Veterans camped near Capitol to support bill
- Bill failed in Congress
- Hoover removed veterans using army, seen as heartless
7
Q
Election of 1932
A
- Republicans -> Hoover
- Democrats -> FDR (winner by landslide)
8
Q
Franklin D. Roosevelt
A
- relative to Teddy
- married Eleanor (cousin)
- Political mirror to Teddy
- Lost 1920 election to be vp
- paralyzed in 1921
9
Q
The “New Deal”
A
- Relief: immediate assistance to jobs/banking
- Recovery: bring economy back to how it was before stock market crash
- Reform: fix things so crash doesn’t happen again
10
Q
The “Brain Trust”
A
- advisers who helped FDR in making early economic policy
- some ppl: Moley, Tugwell, and Berle
- members had varying opinions about jumpstarting the economy
- eventually disbanded
11
Q
The First Hundred Days
A
- Three month period after FDR’s Inauguration
- Flurry of Legislative activity
- HONEYMOON PHASE between FDR and Congress
- Allowed most New Deal’s relief program establishing act (including): Agricultural Adjustment Act, Tennessee Valley Authority, Glass-Staegall Banking Act
12
Q
Solving the Banking Crisis
A
- 1930-1933: Nearly 10,000 banks closed
- Michigan gov. ordered banking “moratorium” in state
- FDR called it bank “holiday”
- Glass-Staegall Act created FDIC (Federal Deposit Insurance Corporation)
13
Q
Fireside Chats
A
- Radio talks
- FDR spoke about issues and concern, 30 chats
- informal
14
Q
“Pump Priming” and the Dole
A
- Federal Emergency Relief Act passed
- FERA pumped money into economy for jobs
- Also provided relief for unemployed
- spent billions on public works through Civil Works Administration and Emergency Work Relief programs
15
Q
FDR’s Farm Program
A
- Agricultural Adjustment Act of 1933 sought to reduce farm surpluses
- Resettlement Administration
- Farm Security Administration
- Rural Electrification Administration
- *Agricultural Adjustment Act of 1936 (2nd one bc 1st one was unconstitutional): food markets taxed consumers, paid farmers not to grow food
16
Q
The Dust Bowl: Causes
A
- Overcultivation of land in the Great Plains, drought throughout region, winds blew loose soil
17
Q
The Dust Bowl: Impact
A
- > 500,000 left homeless
- dust blew into cities such as Chicago and Buffalo
- “Red snow” fell in towns in New England
18
Q
The Plight of the “Okies”
A
- Farmers from Oklahoma, went to Cali for farm jobs, about 15% of the population were migrants
19
Q
Hardships (of Okies)
A
- unsanitary camps
- wages decreased for large numbers
- California passed “anti-Okie” law
20
Q
The “Migrant Mother”
A
- famous New Deal-era photo
- Shot for the Resettlement Administration by Dorothea Lange
21
Q
Work-Based Relief Programs
A
- FDR thought unemployment was a problem
- made programs so teens can work instead of dole (given money)
- some saw the “make work” programs as boondoggles : waste of time
22
Q
Civilian Conservation Corps (CCC)
A
- Provided jobs for young MEN ages 18-25
- environmental works project
- paid $30, sent $25 to family
23
Q
National Youth Administration (NYA)
A
- provided part-time jobs for youths who wanted to stay in school
- paid $6-$40 per month “work study”
- employed both male and female students