USAs economic downturn and recovery Flashcards
what was the unemployment rate at the end of 1929? what had it increased to by 1932?
-2.5 million
-13 million
what was the reason for the rising unemployment?
-the US economy had collpased and there was a fall in world trade
-there was less demand for American goods so buisnesses had to close
what was the percentage of black unemployed compared to white unemployed in 1933?
black = 50%
white = 20%
what were the names of the shanty towns that people set up?
Hoovervilles
when was there a drought in Oklahoma, New Mexico and Kansas?
1931
what was the name for the farmers from Oklahoma who moved after the drought?
Okies
what was the name for the farmers from Arkanasas who moved after the drought?
Arkies
how many farmers moved after the drought turned their farms to dust?
1 million
how many months of the year did some schools in Arkansas close for and why?
they closed for 10 moths of the year becuase they couldnt afford to pay for teachers
what was the suicide rate in 1932?
17.4 suicides per 1000 people (its peak)
what happened to the birth and marriage rates?
they fell
what did veterans do in 1932?
-12,000 veterans marched to Washington DC to ask for early payment of their bonus
what was Hoovers reaction to the veterans marching into Washington?
-he refused them their bonus as it would have cost the gov $2.3million
-congress did fund transport home for all the marchers
-5000 veterans remained and the army was called in
-a baby was killed due to use of tear gas
-two veterans killed
what were some of Hoovers republican policies that were criticised?
-rugged individualism (people had to overcome problems by themselves)
-laissez-faire (the government would limit intervention in the economy)
what year was the election that Roosevelt won by a landslide?
1932
Roosvelt offered new solutions via the New Deal - what three R’s were the policy based on?
-relief (removal of poverty, provide food)
-recovery (boost economy)
-reform (ensure welfare provisions for vaunerable)
what were Roosvelts fireside chats?
-personal explainations of his policies on the radio = restored confidence for americans
what was Roosvelts first fireside chat about?
the banking crisis.
he assured the US people the banks would only open when they were secure
what was the CCC?
-men aged 18-25
-conservation projects (things like planting trees to prevent soil erosion)
-received food, clothes and $1 a day
how many men were employed by the CCC in 1933?
250,000
what was the NRA?
-set up to improve wages, working hours and conditions.
-businesses that signed up to its scheme were allowed to display their symbol of the blue eagle (encouraged people to sign up)
what were:
-hoover blankets
-hoover flags
-hoover wagons
-layers of newspaper
-men’s trouser pockets
-carts with horses tied to them (owners could now afford petrol)
what was Hoover’s Hawley Smoot Tariff Act of 1930?
protected US farmers by increasing import duties on foreign goods
in retaliation, other countries refused to trade with the US
what were three successes of Hoover’s presidency?
-he persuaded state and local city governments to expand their public works programmes
-he began to implement policies that were later followed by his successor Roosvelt like helping banks and homeowners
-during his four year term in office, spending on public works was more than the last 30 years!
give some examples of public works that happened under Hoover’s presidency
-san francisco bay bridge
-los angeles aqueduct
-boulder dam
give some reasons why Hoover was unpopular and therefore he lost the election
-him and the repubicans were blamed for the depression
-only a few months since harsh treatment of the bonus marchers
-banks and bussinesses continued to fail
-relief and government schemes were too small
give some reasons why Roosevelt was popular and therefore won the election
-respected for overcoming the effects of polio which paralysed him from the waist down
-new deal involved the creation of jobs, assistance of the unemployed and government help for farming and industy
-simple and bold approach - mood of optimism
why did Roosevelt close all of the banks for 10 days?
-(this was explained in his first fireside chat)
-he would only allow the banks with assets to reopen
-this meant people felt more confident that their money was safe and no longer wanted to withdraw it
what was the umbrella name for the organisations that Roosvelt set up in his first hundred days?
Alphabet Agencies
why was the second new deal created?
becuase by the end of 1934 there were still 10 million Americans out of work
who did the second new deal benefit?
it was a programme of reform to help farmers, workers, the poor and unemployed
what were the four acts created under the second new deal?
-the works progress administration
-the national labour relations act (the wagner act)
-fair labour standards act
-social security act
what was the works progress administration?
it funded and built things like hospitals, schools, airports etc and thus created employment
it put unemployed teachers back in work and created community sevice schemes to employ artists, writers and actors
it restarted the machinery of the economy
what was the national labour relations act (wagner act)?
upheld the right of workers to enter into collective bargaining.
the number of labour union members increased from 3 million (in 1933) to 9milion (in 1939)
the act also set up the national relations boards which was given the power to act against emloyers who used unfair practices like sacking workers who joined the union
what was the fair labour standards act?
-established minimum wages and maximum hours
-300,000 workers secured higher wages
-child labour not permitted unless on farms
what was the social security act?
(most important reform of the second new deal)
the government accepts responsibility for meeting the basic needs of its citizens such as:
-pension benefits for the elderly, the orphaned and those injured in industrial accidents
-unemployment benefits funded by a tax on the payrolls of employers
how sucessful was the new deal in relation to the role of the government and president?
-restored the faith of the people in the gov. after Hoover’s laissez-faire approach
-preserved democracy
-extended the role of the government
-it gave too much power to the federal government and presidency as the federal government was getting involved in matters that were usually handled by state governments
what were the pros and cons of the new deal on the american economy?
-it stabilised the banking system and cut the number of bussiness faliures
-improved the infrastructure of the US
-only provided short term solutions and did not solve the underlying economic problems
-the US economy took longer to recover than most european countries
-when in 1937 Roosevelt reuduced the New Deal budget the country went back into depression
how successful was the new deal in dealing with unemployment and workers?
-the alphabet agencies provided employment for millions
-the NRA and the second new deal strengthened the postition of labour unions and made corporations negotiate with them
-the alphabet agencies only provided short term jobs. once they ended people were unemployed again
-unions were treated with great suspision by employers with many strikes being broken up violently
what did the new deal do for social welfare?
-the social security act provided the USA with a semi-welfare state including pensions and help for sick and disabled
-some argued that social welfare measures put too much pressure on taxpayers and encouraged people to ‘sponge’ off the state
was the new deal successful in helping black Americans?
-around 200,000 black americans recieved benefits from the CCC and other agencies
-many new deal agencies discriminated against black people: they were either given no work or got worse treatment/lower wages
-Roosevelt did little to end segregation and discrimination in the deep south
was the new deal successful in helping women?
-some women achieved prominent positions in the New Deal: Eleanor Roosevelt became an important campaigner for social reform and Frances Perkins was appointed as Secretary of Labour
-some state gov. tried to avoid social security payments to women by introducing special qualifications
-only 8,000 women employed in the CCC out of the 2 million people in it
what individuals opposed the new deal?
-Huey Long
-Father Charles Coughlin
-Dr Frances Townsend
who was Huey Long and why did he oppose the new deal?
-he had been the governor of Louisiania
-he claimed that Roosevelts failed to share out the nations wealth equally
-he attracted lots of suppourt but was killed by a doctor whos career he had ruined
who was Father Charles Coughlin and why did he oppose the new deal?
-catholic priest
-criticised the new deal for not doing enough
-labelled Roosevelt as ‘anti-God’ becuase he wasnt really helping the needy
-he gained influence through his weekly radio broadcasts which attracted 40 million listeners
who was Dr Frances Townsend and why did he oppose the new deal?
-former army doctor and old-age activist
-gained suppourt from the elderly who by 1934 had recieved little suppourt from the new deal
-he set up an organisation called ‘Old Age Revolving Pension Plan’ which attracted 5 million members by 1935
what political groups opposed the new deal?
-the republicans
-the american liberty league
-some democrats
why did the republicans oppose the new deal?
they represented the intrest of rich families and large businesses
they believed Roosvelt was doing too much to help people and was changing the role of the US government
what was the american liberty league and why did it oppose the new deal?
-it was set up in 1934 to preserve individual freedom and backed by wealthy buisinessmen
-they believed that the new deal threatned he consitution and the freedom of the individual
why did some democrats oppose the new deal?
they were known as conservative democrats and they represented farming areas
they were especially against the wagner act which gave more power to trade unions
what were the two cases within the supreme court that opposed Roosevelt?
-sick chickens case 1935
-US vs Butler 1936
what was the sick chickens case?
-the Schechter brothers ran a poultry business
-in 1933 they signed the rules of the NRA (fair prices and wages)
-in 1935 the NRA took them to court becuase of selling a batch of diseased chickens unfit for consumption
-the Schechters appealed to court saying the actions of the NIRA were unconstitutional becuase it gave federal gov. the power to interfere with state affairs
-becuase of this 750 of the NIRAs codes of practice were immediately scrapped
what happened in US vs Butler?
-the supreme court declared the Agricultural Adjustment Act illegal
-the judges decided that giving help to farmers was a matter for each state government not the federal government
-help to all farmers ceased
what was Roosvelts failed attempts at reform?
why didnt it work
-threatned to retire S.C. judges over 70 and replace them with younger ones who suppourted his ideas
-people saw this as unconstitutional to pack the supreme court with his own suppourters
the sick chickens case was reversed in 1937 however, what was the effect of this on his rep?
damaged his rep and lost members of his own party
List Hoover’s early policies
-laissez-faire
-rugged individualism
-hawley smoot tariff act
-agricultural marketing act
-cut taxes by $130 mil
-got $1.8 billion for construction of roads and dams
Why did Hoover’s policies change in 1932?
Unemployment continued to rise
Describe hoover’s policies after 1932?
-emergency relief act
-home loan bank act
-reconstruction finance corporation
What was the emergency relief act?
State govs got $300 million to help the unemployed
What was the home loan bank act?
-set up to stimulate house building and ownership
-12 regional banks were collectively given $125 million
Why was the drought of 1931 so bad for farmers?
-bankruptcy had already been a problem for farmers who had been unable to sell their produce
-the drought compounded their problems becuase falling output and falling prices meant there was not hope of breaking even
Who were the bonus marchers?
WW1 veterans who had been promised a bonus for serving in the war, payable in 1945
What did the bonus marchers do once at the capital?
Built a Hooverville outside the capital and said they wouldn’t leave until the bonus bill was passed
When was hoover president?
1928-1933
What was the agricultural marketing act and when was it?
-1930
-government lent money to farmers
-marketing groups known as co-operatives tried to fix reasonable prices to ensure farmers profited
What was the reconstruction finance corporation?
-$2 billion in loans to banks, insurance companies and railroads
-lasted two years and would strengthen confidence and create jobs
Why did Roosevelt see banks as the problem to deal with first?
More than 2,000 banks had closed in the 12 months before he had become president
What was the FCA (farm credit administration)?
-gave low interest loans to farmers to help them pay debts
-20% of farmers benefitted
Roosevelt: what was PWA (public works administration)?
Spent $3.3 billion on large-scale public works
When was the second new deal introduced?
1935
