question

Wall Street before the crash

answer

"boom" was in full force in 20s. Stock prices had just kept going up and up. the Dow Jones Industrial Average of major stocks reached all-time high. Millions of people invested in the boom market of 1928 and so millions lost when it collapsed

question

Black Thursday

answer

Although stock prices had fluctuated preceding the crash, the true panic didn't begin until a Thursday in late October 24 1929. Unprecedented volume of selling on Wall Streetand stock prices plunged. Next day, hoping to save disaster, bankers bought millions of dollars of stocks in an efforts to stabilize prices

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Black Tuesday

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The bottom fell out, as millions of panicky investors ordered their brokers to sell, when there were practically no buyers to be found. From that day on, prices kept going more down. Three yrs later, would hit all-time low

question

Causes of crash

answer

uneven distribution of income, stock market speculation, excessive use of credit, overproduction of consumer goods, weak farm economy, govt policies, and global economic prob's

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Causes of crash: uneven distribution of income

answer

Wages had risen little compared to increases in productivity and corporate profits. Economic success was not shared by all.

question

Causes of crash: stock market speculation

answer

Many ppl in all economic classes believed that they could get rich by playing the market. People were no longer investing their money to share in profits of a company but speculating that the price of a stock would go up and they could sell it for a quick profit. buying on margin allowed ppl to borrow most of the cost of the stock. Investors depended that the price of stock would increase so they could repay the loans. When stock prices dropped, ppl lost what they had borrowed and invested

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Causes of crash: excessive use of credit

answer

Belief that economic boom was permanent led to increased installment buying. Advertising stimulated consumers' desire for the exciting new appliances and cars that were being produced

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Causes of crash: overproduction of consumer goods

answer

Business growth, aided by increased productivity, had produced a volume of goods that workers with stagnant wages couldn't continue to purchase

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Causes of crash: weak farm economy

answer

Prosperity of 1920s never reached farmers, who suffered from overproduction, high debt, and low prices sine end of WW1. As depression continued, severe weather added to farmers' difficulties

question

Causes of the Crash: government policies

answer

During 1920s, govt had complete faith in business and did little to control or regulate it. Congress enacted high tariffs which protected US industries but hurt farmers and international trade. Yrs of neglect and bad practices prove difficult for govt to correct.

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Causes of crash: global economic prob's

answer

nations had become more interdependent bc of international banking, manufacturing, and trade. Europe never completed recovered from WW1, but US failed to recognize. It insisted that wartime loans to European nations be paid in full, but at same time high tariffs reduced sale of European goods in America.

question

Great Depression effects

answer

Republican domination of govt was at an end. The power of the federal govt would increase greatly, as ppl accepted dramatic policies. Felt by all classes. Mortgage foreclosures and evictions and poverty commonplace. Homelessness increased.

question

Hoover's policies during Great Depression

answer

Pres Hoover like many others believed prosperity would soon return. Hoover urged businesses not to cut wages, unions not to strike, and private charities to increase their efforts for the needy and jobless. Hesitated to ask Congress for legislative action on economy, afraid it would destroy self-reliance but later came to recognize importance. Still, believed public relief should come from state and local govts

question

Hawley-Smoot Tariff (1930)

answer

Hoover signed into law tariff rates highest in history. Passed by Republican Congress set tax increases on foreign imports. Its purpose was to satisfy US business leaders who thought a higher tariff would protect their markets from foreign competition. But in return Europe enacted higher tariffs against US. Effect was reduced trade for all nations-> national and international economic sank further

question

Debt moratorium

answer

couldn't continue with Dawes Plan. Hoover proposed " "(suspension) on the payment of international debts.International economy suffered from massive loan defaults, and banks on both sides of the Atlantic scrambled to meet the demands of the many depositors withdrawing their money

question

By ___, Hoover decided to take govt action to pull US economy out of prob's with___

answer

1931. Federal Farm Board and Reconstruction Corporation (RFC)

question

Federal Farm Board

answer

actually created before stock market crash but powers enlarged later. Authorized to help farmers stabilize prices by temporarily holding surplus grain and cotton in storage BUT program too modest to handle the continued overproduction of farm goods

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Reconstruction Corporation (RFC)

answer

Federally funded, govt owned corporation created in 1932 as a measure to propping up faltering railroads, banks, life insurance companies, and other financial institutions. Pres reasoned emergency loans would help stabilize business then trickling down to smaller business. Democrats scoffed at measure, saying only benefitted the rich

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Farm Holiday Association

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attempted to reverse the drop in prices by stopping the entire crop of grain harvested in 1932 from reaching the market. The effort collapsed after some violence. (many farmers banding together to stop foreclosure of farms)

question

Bonus march

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Unemployed WW1 veterans marched to Washington DC to demand immediate payment of the bonuses promised them at a later date. They were joined by other veterans who brought family. Congress failed to pass the bonus bill they sought. When 2 veterans killed in class with police, hoover ordered army to break up encampment. General Douglas MacArthur, the army's chief of staff, used tanks and tear gas to destroy the shantytown and drive veterans from Washington.

question

Election of 1932

answer

Republicans renominated Hoover, who warned Democratic victory would only result in worse prob's. Democrats nominated FDR and John Nance Garner as VP. As candidate, FDR pledged a "new deal" for American people, repeal of prohibition, aid for the unemployed, and cuts in govt spending

question

Election of 1932 results

answer

Both houses and president were Democrats

question

Hoover as "lame-duck" president

answer

Hoover offered to work with the president-elect through the period, but FDR declined, not wanting to be tied to any of the Republican president's ideas. 20th amendment shortened period between presidential election and inauguration.

question

The three R's

answer

New Deal programs were to serve the 3 R's relief for people out of work, recovery for business and the economy as a whole, and reform od American economic institutions.

question

FDR's advisers

answer

Louis Howe chief political adviser. For economic matters, FDR turned to group of professors known as the Brain Trust, which included Rexford Tugwell, Raymond Moley, and Adolph A. Berle, Jr. his secretary of labor Frances Perkins was first woman to serve in president's cabinet

question

The first Hundred Days of FDR's presidency

answer

Congress passed into law every request of FDR, enacting more legislation than any single Congress in history.

question

bank holiday

answer

To restore confidence in banks that were still solvent, the pres ordered the banks closed for a bank holiday after govt reorganized them on a sound basis

question

Beer-Wine Revenue Act

answer

legalized the sale of beer and wine and later 21st amendment repealed 18th amendment

question

Fireside chats

answer

FDR went on radio to present " " to American people where he assured that banks which reopened after the bank holiday were now safe. The public responded as hoped.

question

FDR financial recovery programs

answer

Emergency Banking Relief Act, Federal Deposit Insurance Company (FDIC), The Home Owners Loan Corporation (HOLC), and Farm Credit Administration

question

Emergency Banking Relief Act

answer

authorized govt to examine the finances of banks closed during the bank holiday and reopen those judged to be sound.

question

Federal Deposit Insurance Company (FDIC)

answer

guaranteed individual bank deposits

question

The Home Owners Loan Corporation (HOLC)

answer

guaranteed refinancing of small homes to prevent foreclosures

question

Farm Credit Administration

answer

provided low-interest farm loans and mortgages to prevent foreclosures on the property of indebted farmers

question

Programs for relief of the unemployed

answer

Federal Emergency Relief Administration (FERA), Public Works Administrations (PWA), Civilian Conservation Corps (CCC), The Tennessee Valley Authority (TVA)

question

Federal Emergency Relief Administration (FERA)

answer

offered outright grants of federal money to states and local govts that were operating soup kitchens and other forms of relief for the jobless and homeless. The director was Harry Hopkins

question

Public Works Administrations (PWA)

answer

directed by Secretary of Interior Harold Ickes, allotted money to state and local govts for building roads, bridges, dams, and other public works. Such construction projects were a source of thousands of jobs

question

Civilian Conservation Corps (CCC)

answer

employed young men on projects on federal lands and paid their families small monthly sums

question

The Tennessee Valley Authority (TVA)

answer

huge experiment in regional development and public planning. As govts corporation, it hired ppl in one of nation's poorest regions, the Tennessee Valley, to build dams, operate electric power plants, control flooding and erosion, and manufacture fertilizer. Sold electricity to residents of the region at rates that were well below those previously charged by private power company

question

The key measure in 1933 to combine immediate relief and long-term reform was

answer

the National Recovery Administration (NRA). Directed by High jackson, attempted to guarantee reasonable prices for business and fair wages and hours for labor. COuld help each industry set codes for wages, hours of work, levels of production, etc. Operated with limited success until Supreme Court declared unconstitutional in Schechter b. US)

question

Agricultural Adjustment Administration (AAA)

answer

enoucraged farmers to reduce production (and thereby boost prices) by offering to pay govt subsidies for every acre they plowed under. AAA also declared unconstitutional later by Supreme Court (like NRA)

question

Civil Works Administration (CWA)

answer

added to the PWA ad other New Deal Programs for creating jobs. Hired laborers for temporary construction projects sponsored by the federal govt.

question

The Securities and Exchange Commission (SEC)

answer

signed to regulate the stock market and place strict limits on the kind of speculative practices that had led to Wall Street Crash

question

Federal Housing Administration (FHA)

answer

gave both construction industry and homeowners a boost by insuring bank loans for building new houses and repairing old ones

question

Roosevelt's first two years in office were largely focused on achieving one of the three R's:

answer

recovery. Democratic victories in congressional elections gave pres the poplar mandate he needed to seek another round of laws and called on Second NEw Deal concentrating on the other 2 r's relief and reform

question

Working Progress Administration (WPA)

answer

relief program in second new deal spent money to provided people with jobs under Harry Hopkins. Employed many who had been on relief rolls of state govts. These workers put to work constructing new bridges, roads, airports, and public buildings. One party of " ", the National Youth Administration (NYA) provided part-time jobs to help young ppl stay in hs and college

question

National Labor Relations (Wagner) Act (1935)

answer

2nd new deal. major labor law replaced labor provisions of national Industrial Recovery Act after that law was declared unconstitutional. It guaranteed a worker's right to join a union and union's right to bargain collectively. It also outlawed business practices that were unfair to labor. A new agency, the National Labor Relations Board (NLRB), was empowered to enforce the law and make sure that workers' rights were protected

question

Rural Electrification Administration (REA)

answer

2nd new deal. This new agency provided loans fr electrical cooperatives to supply power in rural areas

question

Federal taxes in

answer

2nd new deal. Revenue act which increased the tax or incomes of the wealthy few. Encouraged tax on large gifts from parent to child and on capital gains (profits from the sale of stocks or properties)

question

Social Security Act

answer

Created a federal insurance program based upon the automatic collection of taxes from employees and employers throughout ppl's working careers. Its trust fund would then be used to make monthly payments to retired persons. Workers who lost their jobs and persons who were blind or disabled benefitted from this law too

question

Election of 1936

answer

Democrats nominated Roosevelt. Popular esp among workers and small farmers. Business hated him bc regulatory programs and pro-union measures like Wagner Act

question

Alf Landon

answer

Challenging Roosevelt was Republican nominee for pres in election of 1936, progressive-minded governor who criticized Democrats for spending too much money but in general accepted most of New Deal

question

Election of 1936 results

answer

Roosevelt swamped Landon. Democratic coalition in future would be in Solid South, white ethnic groups in cities, midwestern farmers, and labor unions. Also, new support for Democrats came from A.A.'s

question

Liberal critics of New deal

answer

especially critical of first New Deal for doing too much for business and too little for the unemployed and working poor. Also said he failed to address prob.'s of ethnic minorities, women, and elderly

question

Conservative critics of New Deal

answer

For giving federal govt too much power. Said bordered on socialism or even communism. Business leaders alarmed by 1. increased regulations 2. second New Deal's pro-union stance 3. financing of govt programs by means of borrowed money (deficit spending). Conservative Democrats like Alfred E. Smith and John W. davis joined Republicans to form anti-New Deal organization called American Liberty League

question

father Charles E. Coughlin

answer

Catholic priest attracted popular following in early 1930s through his weekly radio broadcasts. He founded National Union for Social Justice, which called for issuing an inflated currency and nationalizing all banks. His attacks on New Deal became increasingly anti-Semitic and Fascist until his superiors in Catholic Church ordered him to stop

question

Dr. Francis E. Townsend

answer

Became an instant hero to senior citizens by proposing a plan for guaranteeing secure income. Proposed a 2 percent federal sales tax be used to create a special fun, from which every retired person would receive $. Said by spending $ promptly, would stimulate economy. Persuaded FDR to substitute a more moderate plan of his own, which became the Social Security system

question

Huey Long

answer

From FDR's point of view, MOST DANGEROUS DEMAGOGUES "kingfish" of Louisiana where very popular. Proposed a "share our wealth" program that promised a minimum annual income for every american family, to be paid for by taxing the wealthy. Challenged FDR's leadership of the Democratic party by announcing his candidacy for president. Both his candidacy and his populist appeal were abruptly ended when he was killed

question

of all the challenges to Roosevelt's leadership in his first term in office, ___ proved most frustrating

answer

the conservative decisions of the Supreme Court. As a result, he tried the court-reorganization plan.

question

Court-reorganization plan

answer

FDR hoped to remove Court as an obstacle to the New Deal by proposing a judicial-reorganization bill of 1937 or a "court-packing bill". It proposed FDR be authorized to appoint to the Supreme Court an additional justice for each current justice who was older than a certain age. In effect, bill would have allowed FDR to add more justices

question

Court-reorganization plan rxn

answer

Both Democrats and Republicans outraged as what they saw as tampering with system of checks and balances. Accused FDR of trying to give himself power of a dictator. For first time, FDR bill defeated in Congress.

question

Court-reorganization plan aftermath

answer

Supreme Court started upholding FDR's program. Also, many justices retired during FDR's second term, enabling him to appoint a majority on the Court and thereby ensuring judicial support for his reforms

question

Which NEw Deal measures caused a lasting change in labor-management relations by___

answer

National Industrial Recovery Act and Wagner Act... on legalizing labor unions.

question

Committee of Industrial Organizations (CIO)

answer

As unions grew, conflicts. Diff unions that made up AFL were dominated by skilled white male workers and organized according to crafts. Group of unions within AFL wanted union membership to extend to all workers in industry so joined to create " ". Leader was John L. Lewis, pres of Union Mine Workers union. AFL suspended CIO unions. Renamed the Congress of industrial Organizations, the CIO broke away from the AFL and became its chief rival.

question

CIO concentrated on organizing what type of workers

answer

organized unskilled workers in the automobile, steel, and southern textile industries.

question

Automobile strikes during rise of unions

answer

At the General Motors plant in Michigan, workers insisted on their right to join a union by participating in a sit-down strike. Neither Pres nor Michigan's governor agreed to company's request to intervene with troops so finally company yielded to striker demands by reorganizing the United Auto Workers union (U.A.W.). Howev, union organizations and Ford plant driven away

question

Steel strikes during rise of unions

answer

US Steel Corporations recognized CIO unions, but smaller companies resisted. On memorial day, a demonstration by union picketers at Republic Steel in Chicago ended in deaths, as police fired. Despite this, smaller steel companies finally agreed to deal with CIO

question

Fair Labor Standards Act

answer

a final political victory for organized labor that represented the last major reform of the New Deal . it provided for a host of regulations on businesses in interstate commerce establishing minimum wage, maximum workweek, child-labor restrictions on those under 16 *In US v. Darby Lumber Co. Supreme Court reversed earlier ruling by upholding child-labor provisions of " "

question

recession in FDR's 2nd term 1937-1938

answer

economy finally improving but in winter of 1837 went back down into recessionary period

question

recession 1937-1938 causes

answer

the new Social Security tax reduced consumer spending at same time that FDR was curtailing expenditures for relief and public works. In reducing spending for relief, pres hoped to balance the budget and reduce national debt

question

Recession 1937-38 Keynesian economics

answer

writings of British economist John Maynard Keynes taught FDR that he had made a mistake in attempting in trying to balance the budget. According to the theory, deficit spending would be like priming the pump to increase investment and create jobs. Roosevelt's economic advisers adopted this theory with positive results. As federal spending on public workers and relief went up, so did employment

question

Elections of 1938 congressional

answer

reduced Democratic majority in Congress a little. Ppl and Congress didn't instantly yield to FDR wishes anymore as economy not doing so well. Also, fears about aggressive acts of Nazi Germany diverted attention from domestic concerns toward foreign affairs

question

People who lived during great Depression never got over it.

answer

They developed a "depression mentality"-an attitude of insecurity and economic concern that would always remain.

question

Women's life during depression

answer

More women sought work, and their percentage of the total labor force increased.Women accused of taking jobs from men despite the fact that men and women sought diff jobs.Even with Eleanor Roosevelt championing womens equality, New Deal programs still allowed women to receive lower pay

question

Dust Bowl farmers during Depression

answer

Severe drought in the early 1930s ruined crops in the Great Plains.This region became a " ", as poor farming practices and high winds blew away dried topsoil.Many "Okies" from Oklanhoma and surrounding states migrated westward to CA in search of farm/factory work that couldn't be found.

question

A.A.'s during Depression overview

answer

their unemployment rate higher than the national average and often excluded from relief programs. Lynching continued in S. Civil rights leaders could get little support from FDR, who feared loss of southern Democratic votes.

question

improvement for A.A.'s during Depression

answer

A.A.'s found some low-paying jobs with the WPA and CCC (even though these jobs often segregated).Also received moral support from Eleanor Roosevelt and Secretary of Interior Harold Ickes. A.A. singer Marian Anderson had been refused the use of Constitution Hall by the all-white daughters of the American Revolution->Eleanor and Ikes organized Marian to perform at Lincoln Memorial. Some appointed to middle-level positions in federal departments by FDR (Mary McLeod Bethune)

question

Fair Practices Committee

answer

Set up a committee to assist minorities in gaining jobs and defense industries. FDR took this action after A. Philip Randolph, head of the Railroad Porters Union, threatened a march on Washington to demand equal job opportunities for A.A.'s

question

John Collier

answer

Long-time advocate of N.A. rights, was appointed commission of the Bureau of Indian Affairs in 1933. He established conservation and CCC projects on reservations and gained N.A. involvement in the WPA and other New Deal Programs

question

Indian Reorganization (Wheeler-Howard) Act (1934)

answer

The Dawes Act of 1887, which had encouraged N.A.'s to be independent farmers, was repealed in 1934 with the passage of " " (with the help of Collier). This measure returned lands to the control of tribes and supported the preservation of N.A. cultures.Despite, critics accused New Deal of being paternalistic

question

mexican Americans life during depression

answer

Also suffered from discriminatory practices in 1930s. In CA and Southwest, had been a pricniple force of agricultural labor in 1920s. During depression, high unemployment and drought in midwest caused growth of white migrant workers who pushed west in search of work-> forced " " to return to homeland bc of discrimination.

question

Mary McLeod Bethune

answer

One of the A.A.'s given middle-level positions in federal departments by FDR. She had been a leader of efforts for improving education previously and economic opportunities for women. Invited to Washington to direct a division of the National Youth administration, she established the Federal Council of Negro Affairs to increase A.A. involvement in the New Deal

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