Topic 1 Economic Downturn and recovery Flashcards
When did theWall Street Crash happen?
October 1929
How many people were unemployed at the end of 1929?
2.5 million
How many people were unemployed by 1932?
12 million
Why did businesses and factories collapse after the Wall Street Crash?
people stopped spending
What was a hobo?
an unemployed wanderer searching for work
Why were people forced to live in Hoovervilles?
many could not pay rent and lost their homes
What were Hoovervilles?
shanty towns on the edges of towns/cities by unemployed (named after President Hoover)
What were homes in Hoovervilles like?
- made from cardboard, tin and wood
- no running water/sewage system
Who were bonus marchers?
men who fought in ww1 who had been promised a bonus
How many bonus marchers marched in Washington DC to get early payment?
over 12,000
How did Hoover try to get rid of the bonus marchers?
sent the army
How many bonus marchers were injured/killed?
- over 100 injured
- a baby was killed
What happened to farmers after the Wall Street Crash?
- farmers couldn’t sell produce and went bankrupt
- many became hobos
What happened in 1931 in the countryside?
- there was a drought and the soil turned to dust
- dust storms created a ‘dust bowl’
What happened to the number of marriages and the birth rate during the Great Depression?
they fell
What happened to the number of suicides during the Great Depression?
sharp rise
What was the idea of Rugged individualism?
- individuals were responsible for their own lives
- should not expect help from government
What was the idea of balancing the budget?
making sure the government doesn’t spend more money than it gets from taxes
What were 3 reasons Herbert Hoover was unpopular during the Great Depression?
- he believed in Rugged individualism
- he believed in balancing the budget and refused to borrow money to help create jobs
- he sent troops to remove bonus army
What was the policy of Laissez faire?
govt should not interfere in what businesses were doing
What were Relief agencies?
Organisations set up to help poor and unemployed
When was Hoovers Reconstruction Finance Cooperation Act passed?
January 1932
What did Hoovers Reconstruction Finance Cooperation do?
gave $2 billion of federal aid to struggling banks, insurance companies and railways
When was Hoovers Home Loan Bank Act passed?
July 1932
What did Hoovers Home Loan Bank Act do?
set up 12 regional banks to stimulate house building and home ownership
When was Hoovers Emergency Relief Act passed?
July 1932
What did the Emergency Relief Act do?
gave $300 million to state governments to help unemployed
What was the result of the 1932 presidential election?
Democrat Franklin D Roosevelt won a landslide victory
How many states did Roosevelt win in the 1932 presidential election?
42 out of 48
What were 4 reasons Hoover was unpopular during 1932 presidential election?
- Republicans blamed for Great Depression
- harsh treatment of bonus marchers
- relief schemes were too smalland too late
- Hoover offered nothing new
What were 4 reasons Roosevelt was appealing during 1932 presidential election?
- created mood of optimism
- simple message
- promised a ‘new deal’
- overcome effects of polio to become successful politician
What was Roosevelts new deal based on?
‘3 rs’ - Relief, Recovery and Reform
When did Roosevelt take office as President and begin to implement the New Deal?
January 1933
What did Relief stand for?
spend money to relieve hunger and get unemployed back to work
What did Recovery stand for?
support businesses and solve problems with banks
What did Reform stand for?
create welfare system to support people and make sure banks and businesses did not get into trouble again
What were Alphabet Agencies?
nickname given to group of organisations set up as part of the New Deal
What did the first New Deal focus on?
relief and recovery
What was the Emergency Banking Act?
govt closed all banks for 10 days and supported 5000 banks
What did Roosevelt reassure people of as part of the Emergency Banking Act?
that their money was safe in banks
What was the Federal Emergency Relief Administration?
given $500 million to provide food, clothing and housing for the poor
What was the Civilian Conservation Corps (CCC)?
-provided 6 months work for men aged 18-25 on environmental projects eg planting trees
How many men were given work by the Civilian Conservation Corps (CCC) by 1940?
around 2 million
What was the Agricultural Adjustment Administration (AAA)?
Farmers were paid to destroy some crops and livestock to force up prices
What was the impact of the Agricultural Adjustment Administration (AAA)?
farmers earned one and a half times as much in 1936 as they had in 1933
When did Roosevelt introduce his second New Deal?
1935
What were fireside chats?
evening radio addresses given by Roosevelt
Why were fireside chats important?
Roosevelt communicated his policies with the American people
What did the second New Deal focus on?
welfare and rights of workers (Reform)
What were 3 alphabet agencies under the first New Deal?
- Federal Emergency Relief Act (FERA)
- Civilian Conservation Corps (CCC)
- Agricultural Adjustment Administration (AAA)
What was the Works Progress Administration (WPA)(second new deal)?
oversaw job creation schemes - public building projects including roads, harbours and airports
What was the National Labour Relations Act also known as?
the Wagner Act
What was the National Relations Labour Act (second new deal)?
- allowed workers to join trade unions
- gave protection against unfair treatment by employers
What was the Fair Labour Standards Act (second new deal)?
- enforced employment laws such as minimum wage
- 300,000 workers secured higher wages
- 1 million had a shorter working week
What was the Social Security Act (second new deal)?
provided benefits for elderly, disabled, unemployed, widows and orphans
What were the 4 legislations/agency under the second New Deal?
- Works Progress Administration (WPA)
- Wagner Act
- Fair Labour Standards Act
- Social Security Act
How many people were employed in the CCC as a result of the new deal?
2.5 million
How did the new deal impact the US banking system?
stabilised it- restored confidence in people to borrow and save money
What impact did the New Deal creating a semi-welfare state have?
- provided pensions for elderly
- better financial aid for sick, disabled and unemployed
How did the New Deal discriminate against black people?
either got no work or received lower wages
Who was Huey Long?
Governor of Louisiana
How did Huey Long, Governor of Louisiana criticise the New Deal?
- believed it did not share out the nations wealth fairly
- proposed ‘Share Our Wealth’ campaign
How did Father Charles Coughlin criticise the New Deal?
- for not doing enough to help the needy
- held weekly radio broadcasts
How many listeners did Father Charles Coughlins weekly radio broadcasts attract?
over 40 million
How many listeners did Father Charles Coughlins weekly radio broadcasts attract?
over 40 million
How did Dr Francis Townsend criticise the New Deal?
argued it did not do enough to help old people
How did Dr Francis Townsend criticise the New Deal?
argued it did not do enough to help old people
What did Dr Francis Townsend propose to help old people?
$200 pension a month for over 60s
Which 3 individuals believed the New Deal wasn’t doing enough?
- Huey Long
- Father Charles Coughlin
- Dr Francis Townsend
How did Republicans criticise the New Deal?
argued Roosevelt was giving federal government too much power
What were 4 critisms of people who believed the New Deal had gone too far?
- trade unions given too much power
- new welfare measures encourage people to live off the state
- role of government had been changed
- too much government interference in businesses
What did the Supreme Court rule about the NRA and AAA?
they were unconstitutional and Roosevelt had claimed federal powers he did not have
