usa boom and bust t2 Flashcards
How did unemployment change during the Great Depression?
Unemployment skyrocketed, reaching around 25% in the US by 1933. Many businesses closed, and banks failed, leading to widespread job loss.
What was the impact of the Depression on GDP?
GDP fell sharply during the Depression, with a contraction of about 30% in the US.
How were workers affected by the Great Depression?
Many workers lost their jobs due to factory closures and reduced production. Those employed faced wage cuts and longer working hours, leading to severe economic hardship.
What were the effects of the Depression on families?
Families struggled with poverty, malnutrition, and displacement. Homelessness increased, and many families faced the breakdown of traditional support structures due to financial strain
How did farmers suffer during the Depression?
Farmers faced falling crop prices, drought, and the Dust Bowl, leading to widespread poverty and foreclosure of farms.
What caused the Dust Bowl?
The Dust Bowl was caused by drought, poor farming practices, and high winds, leading to dust storms and crop failure in the Great Plains.
How were ethnic minorities affected by the Depression?
Ethnic minorities, particularly African Americans and Hispanics, faced high unemployment rates, discrimination, and were often the first to lose jobs.
What role did gangsterism play during the Great Depression
Economic hardship and Prohibition led to the rise of organized crime. Gangsters, like Al Capone, gained wealth and power by smuggling alcohol, extorting businesses, and engaging in illegal activities.
What was the Smoot-Hawley Tariff
The Smoot-Hawley Tariff (1930) raised U.S. import duties to protect domestic industries but worsened the Depression by leading to retaliatory tariffs and a decline in international trade
What were Hoovervilles?
makeshift shantytowns where homeless people lived during the Great Depression. They were named derisively after President Hoover, who was blamed for the economic crisis.
What was the purpose of the RFC?
created to provide emergency loans to banks, railroads, and businesses to stimulate economic recovery
why was the RFC criticised
for not doing enough for the poor
What did the Emergency Relief and Construction Act do?
funds for public works projects and relief programs to combat unemployment
What was Roosevelt’s approach to emergency relief?
provided direct relief through programs like the Federal Emergency Relief Administration (FERA), which offered immediate financial assistance to the unemployed and struggling families.
How did Roosevelt address public works during the New Deal?
public works projects, such as the Works Progress Administration (WPA), to create jobs by building infrastructure like roads, bridges, and schools.
What was the Tennessee Valley Authority (TVA)? (FND) 1933
built dams for flood control, provided electricity, and improved infrastructure, helping lift the region out of poverty.
What was the Civilian Conservation Corps (CCC)? 1933
(FND)
provided jobs for young, unemployed men. They worked on conservation projects, such as planting trees, building parks, and improving national forests.
What did the Agricultural Adjustment Administration (AAA) do? 1933
FND
aimed to raise crop prices by reducing production. It paid farmers to reduce acreage and slaughter livestock
What did (NIRA) do 1933
FND
Set minimum wages and maximum working hours to prevent exploitation
Emergency Banking Act (EBA) 1933
FND
Allowed only financially stable banks to reopen after federal inspection restoring confidence
What was the Supreme Court’s opposition to Roosevelt’s policies?
struck down several New Deal laws, like the NRA and AAA, arguing they were unconstitutional. This led Roosevelt to propose the controversial Court-packing plan to increase the number of justices.
Opposition from the Right
Belief in Laissez-Faire, undermining capitalism
(NIRA) set minimum wages and working hours, which many business leaders saw as restrictive and anti-business
opposition from the left
Huey Long, share our wealth
who was Huey Long and what was his opposition to Roosevelt?
opposed Roosevelt’s New Deal, arguing it didn’t go far enough. He promoted his own plan, “Share Our Wealth,” to redistribute wealth and provide more direct aid to the poor.
