Chapter 26 Flashcards
(8 cards)
causes of great depression
excessive use of credit
weak farm economy
overproduction of consumer goods
buying stocks with borrowed funds
unequal distribution of income
war debts and weaknesses in the international economy
government policies
stock market crash (1929)
effects of great depression
political: hoover defeated by fdr, increase of president power
economic: unemployment, loss of personal savings (banks close)
social: penny pinching depression, poverty and hopelessness
the first 100 days
bank holiday (clsoed every bank until they could meet the ends of depositors)
purpose: if banks are open, people can withdraw their money, this govt action will slow the number of bank failures
emergency banking relief act (EBRA)
banks were under federal supervision, can open if they had enough money; banks could borrow money from govt to open some banks had to remain closed
fdr didn’t nationalize banks though- government runs all banks
New deal agenices
relief: direct help NOW with money jobs and loans
recovery: restore economy, help farmers, business, workers
reform: protect from future problems
Jobs (alphabet soup)
CCC- outdoor jobs, young men, made up jobs
FERA: direct aid, relief
AAA: paid farmers not to farm
TVA: provided electrification for Tenessee Valley
NRA: put regulations on work place, minimum wage
PWA: more jobs
FDIC: federal deposit insurance corporation (trust in your bank)
Wagner Act/ National Labor Relations Board Act (NLRB/NLRA)
passed after NRA was found to be unconstitutional
- worker’s right to join a union
-coolective bargaining is ok (legalized unions)
-outlawed unioun busting tactics
- arbitrate labor disputes
- set up NLRB to regulate businesses
DOESNT HELP GREAT DEPRESSION
Fair labor standards act (FLSA)
set a minimum wage
maximum work week= 40 hours
child labor restricitons
supreme court allowed agenices that had been declared unconstitutional in court packing controversy of 1937
FDR and the court packing controversy
NRA (chicken case) federal government can regulate interstate trade, but intrastate trade; real motvie: limit power of federal government
supreme court did not agree with fed govt power of making businesses pay workers a minimum wage, supreme court believed in 10th amendment (states’s rights
fdr wants to add 6 memebers “court packing”
