Chapter 14-15: The Great Depression & the New Deal Flashcards Preview

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Flashcards in Chapter 14-15: The Great Depression & the New Deal Deck (23):

Dow Jones

• Measure based on stock prices of 30 large corporations from all sectors of the economy
• The Dow Jones dropped about 82% the next 3 years after the stock market crash
? The most widely used barometer of the stock market’s health, an overall deciding factor of whether people invest or not


Stock Market Crash

• Crashed on Black Tuesday - October 29, 1929
• Everyone needed to sell their shares, so stock prices dropped lower than original prices, causing people to go into debt
? Resulted in most people losing their savings, banks & businesses closed, jobs lost


Great Depression

• Businesses went bankrupt & unemployment was at 25%
• Hoovervilles were small, shanty towns built by the homeless named after Pres. Hoover bc people blamed him for the depression
? Economy was at its lowest ever in history


Causes of Great Depression

• Hawley-Smoot Tariff Act raised tariffs which reduced trade w/ Europe, making unemployment worse
• Government followed laissez-faire policy, so they didn’t interfere to help the economy because they believed it would improve by itself, was too late when they realized it wouldn’t
• Installment plans persuaded people to spend more money than they had, resulting in them going into debt
? Were all factors that made the Great Depression as extreme as it was


Dust Bowl

• Farmers had used tractors to break up farmland, which removed protective layer of prairie grass, so wind easily carried dust
• Region that was hit the hardest w/ droughts & windstorms was Kansas, Oklahoma, Texas, New Mexico, Colorado
? Caused many farmers in the Midwest to leave & migrate west to California & other Pacific states


Herbert Hoover

• Was the Republican president during the Great Depression
• Public opinion turned against him after he used military force to get rid of Bonus Army from D.C.
• Believed that depression was a natural part of the business cycle, so he urged Americans to continue w/ their daily lives and be optimistic
? Known for his inability to effectively deal w/ the Great Depression


Bonus Army

• More than 10,000 WW1 veterans + families marched to D.C. to get their promised bonuses 13 years earlier than planned bc they needed the money
• When veterans were asked to leave and didn’t, Hoover approved military force to be used against them
? Hoover’s actions turned public opinion against him & the Republicans, allowing FDR to easily win the 1932 election


Franklin Delano Roosevelt

• Was Democrat nominee in 1932 election & won by landslide bc majority of American blamed Hoover for depression
• Had fireside chats on radios that were directed to the public, which citizens liked
? Gave nation a sense of confidence during a time of great depression, compared to Hoover’s laid-back approach w/ laissez-faire


The New Deal

• FDR’s plan to alleviate/fix the problems the started the Great Depression
• His 3 goals were relief, recovery, & reform, which all focused on immediate, temporary, or permanent actions that would help the economy
• FDR worked w/ team of advisors, which included professors, lawyers, journalists, etc. to come up with actions, group became known as Brain Trust
? Gave Americans hope bc the gov was finally planning to start helping instead of staying w/ laissez-faire policy


Hundred Days

• Was the period of intense activity after FDR’s inauguration on May 9, 1933
• More than 15 major laws passed within theses 100 days, laws significantly expanded govt's role in the economy
? FDR took action that would extremely help improve economical & financial issues from the Great Depression


Agricultural Adjustment Act (AAA)

• paid farmers to lower the production of crops in hopes that it would raise crop prices
• some Americans argued that the destroyed food could've gone to the poor
? helped raise farm prices & gave more $ to farmers


Civilian Conservation Corps (CCC)

• employed young men to build projects that would help the environment
• most of their earned money went back to their families
? by 1942, 3 million young men had passed through the CCC


National Industrial Recovery Act (NIRA)

• set prices of products & established standards
• gave workers the right to unionize & collectively bargain
? part of FDR's many laws passed to help nation recover & was actually against antitrust laws


Deficit spending

• gov spends more $ than it receives in revenue
• gov would give loaned $ to consumers, consumers buy stuff, fuels economy, gov gets back $ from taxes
? was hoped to stimulate the economy


Three Fiery Critics

• Charles Coughlin - catholic priest w/ radio show, early supporter, later disagreed w/ FDR's actions
• Dr. Francis Townsend - proposed national pension for elderly, had to spend it all
• Huey Long - "Share Our Wealth", wealthy get taxed more, everyone gets something (home, radio, free college education), assassinated
? were 3 main ppl that undermined publics' support for FDR


Eleanor Roosevelt

• traveled country & observed social conditions for FDR (due to polio)
• urged FDR to give positions to women
? prompted FDR towards 2nd New Deal


National Labor Relations Act
(Wagner Act)

• restablished NIRA provision of collective bargaining
• prohibited unfair labor practices (threatening workers, fire union members, interfering w/ union)
? protected farmers/laborers rights


Social Security Act

• insurance for elderly/retired
• unemployment compensation
• aid to disabled & families w/ dependent children
? provided substantial benefits to millions & gave sense of security


New Deal Coalition

• the different groups of people that supported the Democratic Party
• included southern whites, african americans, urban workers, farmers, women
? wide variety of supporters allowed Democrats to dominate national politics throughout 1930's-1940's


Congress of Industrial Organizations (CIO)

• organized by John L. Lewis
• organized steel & auto workers
• employed sit down strike at GM plant to gain recognition
? first successful union of unskilled workers


Movies (of Depression Era)

• moves gave escape from reality: gone with the wind, wizard of oz, snow white, citizen kane
• art & literature was bleak: grapes of wrath
? gave ppl escape from depression, were relatable


Federal Deposit Insurance Corporation (FDIC)

• created in 1933 during First 100 Days
• insured ppl's savings in banks (if bank loses your $, FDIC writes exact check for you)
? increased ppl's confidence in the banking system


Tennessee Valley Authority (TVA)

• built dams to generate electricity and prevent floods
• increased agriculture & production, provided jobs
? greatly improved the Tennessee River Valley