Unit 8 The Great Depression Flashcards
What were the primary causes of the Great Depression?
excessive lending, US Monetary Policy, Stock Market Speculation, Stock Market Crash of 1929
How did the Great Depression affect American families?
Families were unable to make mortgage or rent payments, and many were deprived of their homes or were evicted from their apartments
To what extent did the role of the federal government expand during the Great Depression?
The federal government changed drastically during the Great Depression of the Civilian Conservation Corps (CCC) and the Emergency Banking Act.
To what extent did the power of the presidency increase during the administrations of Herbert Hoover and Franklin Roosevelt?
The power that the president had increased by the 100 Days of President and the Fireside Charts.
Describe the causes of the Stock Market crash
there was speculation which increased fear and panic
Describe the ways in which New Deal programs attempted to provide Relief, Recovery, and Reform during the Great Depression
Emergency Bank Act was meant to repair failing banks and give the banks a day to recover. This is an example of relief. Federal Deposit Insurance Corporation was meant to gain back people’s trust in banks by the government giving insurance to the banks so they could insure people’s money. This is an example of recovery. Securities and Exchange Commission is to keep investors safe from fraudulent companies or misinformation about stocks. This is an example of reform.
Evaluate the legacy of the New Deal using primary and secondary source materials
People criticized that the government wasn’t involved enough and also that the involvement of the government was too much.
What is the bull market?
the condition of a financial market in which prices are rising or are expected to rise
What is over speculation?
when stocks become worth a lot more than the actual value of the company
Overproduction/
Underconsumption
Overproduction was when people were producing more goods than people wanted or could afford. Underconsumption is that were not enough people to consume the goods.
What are bank runs?
This is when a large group of depositors withdraw their money from banks at the same time
What is Rugged Individualism?
This indicates that an individual is self-reliant and independent from outside,
What are bank runs?
This is when a large group of depositors withdraws their money from banks at the same time
What is the New Deal?
This was a series of programs, public work projects, financial reforms, and regulations. This new deal consists of 3 R’s: relief, recovery, reform
What is the First New Deal?
100 Days of Congress - Congress gave Roosevelt lots!! of freedom because of the desperate nature of the Depression, many changes in FDR’s first 100 days. Lots of presidents now make campaign promises about what they’ll get done in their first 100 days
CCC
Civilian Conservation Corps. Unemployed 18-25 yr old men could work. They planted trees, fought forest fires, and built reservoirs. They were also taught to read and write. This is relief
HOLC
Home Owner’s Loan Corporation. They bought the mortgages of homeowners who were in payments and restructured to give people more time to pay, lower monthly payments, and lower interest rates. This is relief
AAA
Agricultural Adjustment Act. Through the AAA, the government gave subsidies (money) to farmers to destroy crops, kill livestock and reduce the overall supply of farm goods and limited the supply, raised the prices which helped farmers. This is reform
NRA
National Recovery Administration. Setup codes/rules for fair competition and set prices, minimum wage, shift limitations, shorter work hours, right to form unions, and kept those actually employed from being taken advantage of. This is reform
FDIC
Federal Deposit Insurance Corporation. Insurance provided by the federal government for people’s bank deposits
and each depositor’s account is insured up to $250,000. This is reform
SEC
Securities and Exchange Comission. Required that companies who sold stocks and bonds provided complete and truthful information to their investors
Regulated stock market to prevent fraud. This is recovery
TVA
Tennessee Valley Authority. Brought power and electricity to areas ignored by private companies, built dams, reforestation. This is recovery
What is the social security
They are a social insurance program that consists of retirement, disability, and survivor benefits
WPA
Works Progress Administration. Directly employed people to build bridges, airports, schools, parks, water lines, and theaters; employed women in sewing, classrooms. This is relief
What is the Wagner Act?
It gave employees the right to form and join unions, and it obligated employers to bargain collectively with unions selected by a majority of the employees in an appropriate bargaining unit.
What was the cause of the stock market crash?
stock market speculation
How did Hoover respond?
He responded with American Individualism
How did Roosevelt respond?
He responded with the New Deals
