USA chapter 1-economic downturn and recovery Flashcards
key dates economic downturn and recovery
29th October 1929 – Wall Street Crash
1932 – Presidential election
1933 to 35 – Roosevelts New Deal
1935 to 1936 – Roosevelts Second Deal
what are the imapcts of the wall street crash
unemployment,cities,family life,countryside,bonus marches,hoovervilles
unemployment
Many businesses closed and there was mass
unemployment By 1929 there were 2.5 million unemployed in the USA
family life
Both,marriage and birth rates fell dramatically Suicide rates rose dramatically to 17.4 people per thousand in 1932 In some states, such as Arkansas, schools closed as there wasn’t enough money to pay teachers Families relied on charities like the Red Cross
countryside
Farmers were unable to sell their produce and went bankrupt A drought in 1931 called ‘The Dust Bowl’ made matters worse Poor farming methods turned over 20 million hectors of soil to dust More than 1 million people were forced to leave their homes and head west Farmers were happy to employ these people as they worked for very low wages They were resented by locals for taking their jobs
bonus marches
12,000 World War One Veterans marched on
Washington D.C They demanded the bonus they had been promised for serving in the war to be given early Marchers brought their wives and children To pay the marchers would cost the Government US$2.3 million
hoovervilles
As many lost jobs and had no money for shelter. Many therefore built homes from cardboard and tin They had no running water or sewage systems For example there was a Hooverville These names were sarcastic as many people blames President Hoover for the lack of support and relief
what republicans did to deal with the crisis
Cut taxes by $130 million Laissez faire – translates to ‘’Let it be’’. The belief that the Government should not get involved in the economy or people’s lives.
aims of the new deal
Relief – to assist those in need and remove poverty
Recovery – to boost the economy and get people back to work
Reform – To make society fairer and help the unemployed, old, sick, disabled and destitute (poor)
the first hundred days of the new deal
9th March to the 16th June 1933 Roosevelt closed all the banks for 10 days Fireside Chats – spoke to the American public every week over the radio telling them what was going on (60 million people listened!) FDR restored trust he assured people money was safer in banks now
alphabet agencies
The National Recovery Act (NRA) set fair prices, wages and working conditions such as maximum hours and minimum wages, HOWEVER the Act was removed by the Supreme Court in 1935.
second new deal
The Wagner Act – protected the rights of workers by allowing Trade Unions to meet with business owners
Fair Labour Act – set minimum wages and maximum hours
Social Security Act – pensions for the elderly and unemployment benefits
