The Great Depression and the New Deal (1929-1939) Flashcards
Hooverville
settlements of shacks found on the outskirts of many American cities beginning in the early 1930s
Dust Bowl
name given in the 1930s to regions of the midwest where severe droughts and poor farming practices caused massive dust storms. By the end of the decade, nearly 60% of all farms were either ruined or abandoned. Many farmers moved westward during this time in search of better jobs
Hawley-Smoot Tariff (1930)
tariff act that imposed severe tariffs on all incoming goods. European countries responded with their own high tariffs. Historians say this tariff did little to help the American economy and ended up contributing to the depression.
Federal Deposit Insurance Corporation
federal agency established during the “First Hundred Days” of the New Deal in 1933 in an effort to halt panic over bank closings. The FDIC insures the bank deposits of individual citizens.
Civilian Conservation Corps
established in 1933, the CCC provided jobs for 2.5 million young Americans in forest and conservation programs
National Industry Recovery Act
New Deal legislation requiring owners and labor unions in various industries to agree upon hours, wages, and prices; as a result, wages went up but so did prices.
Tennessee Valley Authority
agency created in the New Deal to oversee the construction of dams, providing electricity and flood control for many in the region.
Works Progress Administration
New Deal program that employed nearly 8 million Americans as well as constructed schools and roads. The WPA also employed artists and musicians.
Wagner Act
critical piece of New Deal legislation that protected the right of workers to form unions and utilize collective bargaining.
Social Security Act (1935)
New Deal legislation providing pensions for workers reaching retirement age. Both workers and employers pay into the fund that provides this benefit. Initially, farm/domestic workers were not covered by Social Security
New Deal Coalition
political coalition created by FDR that kept the Democratic Party in power from the 1930s through the 1960s. This coalition consisted of workers in American cities, voters in the South, labor unions, and blacks.
Scottsboro Boys
nine black defendants in a famous 1931 case who were accused of raping two white women on a train. Despite the lack of evidence, they were sentenced to death and their defense was organized by the American Communist Party.
speculation
the practice of purchasing land/stocks with the intent of selling for a higher price later. After the Homestead Act and others opened up the western U.S., speculators purchased land with no intention of settlement, but for selling for a profit.
on the margin
the practice in the late 1920s of buying stock and only paying in cash 10% of the value of that stock; the buyer could borrow the rest from a stockbroker or investment banker. This worked when investors could sell their stocks at a profit and repay the loans. After the 1929 crash, investors had to pay the loans in cash.
voluntarism
the concept that Americans should sacrifice time/money for the well-being of the country. This concept has been popular during the Progressive Era, during the John Kennedy Administration, and during the George Bush Administration
Agricultural Marketing Act
1929 act by Herbert Hoover authorized the lending of federal money to farmers’ cooperation for crops to keep them from the over-saturated market.
Bonus Army
group of 17,000 veterans who marched on Washinton in 1932 to demand military bonuses they had been promised. They were eventually transported away by the U.S. Army, prompting the public to believe Hoover didn’t care about the poor.
New Deal
series of policies instituted by FDR and his advisors from 1933-1941 that attempted to offset the effects of the Great Depression. Many New Deal policies were experimental and overall, the onset of WWII rather than the New Deal that pulled America out of the Great Depression.
fireside chats
broadcasts on the radio by FDR where he directly addressed the American public, making it seem like he personally cared about them.
Second New Deal
beginning in 1935, the New Deal did more to help the poor and attack the wealthy. FDR took this path to turn the American people away from those who didn’t believe the New Deal was doing enough. Two key acts of this era were the Social Security Act and the National Labor Regulations Act (Wagner Act). The Wealth Tax also aided the working Americans and taxed the rich.
Resettlement Administration
in an attempt to address the issues of the Dust Bowl, this 1935 New Deal program attempted to provide aid to poor farmers, resettle farmers, and establish farm cooperatives. This never received the funding it really needed and in 1937, the Farm Security Administration replaced it.
American Liberty League
Formed in 1934 by anti-New Deal politicians to oppose the policies of FDR; believed that the New Deal brought America closer to fascism.
Revenue Act of 1935
Tax legislation by FDR was called a “soak the rich” plan by his opponents. Under this bill, corporate, inheritance, and gift taxes went up and income taxes for the rich also rose. By proposing this, it was an attempt to diffuse the popularity of Huey Long and other radical plans to distribute wealth.
Old Age Revolving Pension Plan
Plan by California doctor in 1934 would give retired Americans $200 a month that must be spent by the end of the month. He claimed this would help the economy by keeping money in circulation. A national tax of 2% on businesses was supposed to finance this, but it never happened.
Justice Reorganization Bill
FDR’s 1937 plan to increase the number of Supreme Court Justices. He claimed this was because many judges were older and they needed help to keep up the work. In reality, he wanted to “pack the courts” because it had made several rulings against his New Deal. Many people of both parties opposed this plan, so it was eventually dropped.
sit-down strikes
a labor tactic where workers refused to leave the factor until management met their demands. The most famous strike occurred in General Motors in December 1936 and lasted 44 days.
Congress of Industrial Organizations
Group of unions that broke from the AFL (American Federation of Labor) in 1938 and organized effective union drives in automobile and rubber industries; also supporting sit-down strikes in major rubber plants. They rejoined the AFL in 1955.
