Unit 4: the Great Depression Flashcards
How did the Great Depression happen, and how did Americans respond to economic disaster
panic spread
What were the causes of the Great Depression
banks failed and depositors' savings were essentially gone, so millions of middle- and working-class people, lost their life savings Credit dried up, and businesses began laying off workers
Reconstruction Finance Corporation
to lend capital to failing businesses, but these programs helped only owners, not workers
unemployment rate
As unemployment rose, consumer spending plummeted, which led to further layoffs
banking crisis
they had loaned large sums of money to stock speculators who couldn’t repay their bank loans
Hoover administration economic policies
Much was expected of him because he had worked on humanitarian relief during World War I but he turned out to be timid trapped by the belief that helping the unemployed would make them lazy
how did the Hoover administration react to the Great Crash and ensuing Depression
believed the downturn was temporary and would soon right itself. instead of stimulating the economy they acted on the belief that the budget must be balanced, it raised taxes
“Bonus Army”
World War I veterans, asking for immediate payment of the service bonuses they were scheduled to receive in 1945
Townsend Plan
help the elderly to retire and make more jobs available for younger people. it made social security possible
Senator Huey Long
led a “Share Our Wealth” campaign that called for a guaranteed minimum annual wage, a shorter work week to boost employment, and universal free education
Father Charles Coughlin
combined welfare demands with hate-talk toward Jews and admiration for Hitler
German-American Bund
pro-Hitler German-American Bund attracted some 100,000 members
What were five of the programs that FDR immediately implemented
civilian conservation corps emergency banking relief acts federal emergency relief acts agricultural adjustment act Tennessee valley authority public works administration national recovery administration
what was the general intention of the programs we call the First New Deal
to provide relief for Americans
emergency relief and Harry Hopkins
most popular program was emergency relief, headed by the decisive social worker Harry Hopkins
federal communications commission and western electric
Federal Communications Commission investigated Western Electric and found that its monopolistic practices enabled it to overcharge its customers
civilian conservation corps
employed men to plant trees, clear trails, build fire roads, bridges and other structures in national parks
emergency banking relief acts
temporarily closed all banks for several days following confirmation by the department or treasury. banks with adequate cash reserves were allowed to reopen
federal emergency relief acts
allocated funds to states to provide relied- in the form of cash payments and jobs to the unemployed and destitute
agricultural adjustment relief act
attempted to increase farm prices by paying subsidies to farmers who agreed to cut crop production
Tennessee valley authority
built dams, hydroelectric power plants and reservoirs in the Tennessee valley basin
public work administration
funded construction or roads, bridges and public buildings such as post offices, courthouses and schools
national recovery administration
established business/labor coalition to set standards for production, prices and working conditions
“Second New Deal”
the federal government expanded by creating permanent programs
the banking act of 1935
allowed a Federal Reserve Board to require banks to hold a certain amount of cash in reserve
the most important new laws to the majority of Americans
Social Security, the National Labor Relations Act, and the Fair Labor Standards Act
Social Security Act of 1935
it created a permanent, though limited, welfare system
what top priority of FDR did not make into the law
public medical insurance
Social Security program 3 enormous limitations stand out
- women who did not work for wages were not eligible for old-age pensions.
- conservative southern Democratic Senators insisted on excluding all agricultural workers and domestic servants. (meaning majority of all people of color were excluded, because they worked mainly in the excluded occupations)
Social Security program 3 enormous limitations stand out
- women who did not work for wages were not eligible for old-age pensions.
- conservative southern Democratic Senators insisted on excluding all agricultural workers and domestic servants. (meaning majority of all people of color were excluded, because they worked mainly in the excluded occupations)
- even women who were employed were often excluded because they tended to be employed by smaller firms
National Labor Relations Act (Wagner Act)
was the legislative response to the vibrant labor movements
It guaranteed workers a right to form unions and to collective bargaining, and provided them with a legal remedy if employers tried to interfere with this right
Fair Labor Standards Act
acknowledged that the principle of “liberty of contract” required an equality of contractors–the so-called level playing field–that did not exist when people were desperate for jobs
Lend-Lease Act
providing Great Britain, the USSR, China, Free France and other allies with war materiel
