The Great Depression Flashcards
(24 cards)
The Election of 1928
- Herbert Hoover, the Republican nominee who promised that poverty would “soon be banished from this Earth.”
-Alfred E. Smith was the Democratic nominee and the first Catholic to be nominated in a major party. - People would compare the two candidates based on their personalities and religions. Many denounced Smith for his catholic faith and Hoover won by a landslide.
Herbert Hoover
- The 31st President of the United States, serving from 1929 to 1933.
- He assumed office during the beginning of the Great Depression and is often associated with the era’s struggles.
-He believed in rugged individualism and limited government intervention in the economy, leading to criticisms of his handling of the Depression.
The Great Depression
- A severe global economic downturn that lasted from 1929 to 1939, marked by widespread unemployment, poverty, and economic hardship.
- It’s often considered the worst economic crisis in modern history.
- Factors contributing to the depression include overproduction, falling farm prices, a weak banking system, and high tariffs.
Black Thursday & Tragic Tuesday
- The initial, significant stock market crash on Thursday, October 24 and Tuesday, October 29 that marked the beginning of the Great Depression.
- The crash resulted in widespread bank failures as financial institutions were unable to recover losses from bad investments.
Margin Buying
- A practice where investors purchase stocks using borrowed money.
- Buying on margin became a popular practice in the 1920s, as many believed stock prices would continue to rise.
- However, while this could lead to significant gains, there is also the risk of losses. If the stock price fell, investors could lose more than their initial investment.
Hoovervilles
- Shantytowns or makeshift encampments where people, evicted from their homes due to economic hardship, built temporary housing from scrap materials.
-The name “Hoovervilles” was a sarcastic reference to President Herbert Hoover, who was blamed for the economic crisis and perceived lack of relief efforts.
Election of 1932
- Democrat Franklin D. Roosevelt won the presidency in a landslide, promising a “New Deal” for the American people. Roosevelt’s election was marked the beginning of a significant shift in the role of the federal government in American society
- Hoover ran for reelection in 1932, but his inability to mitigate the negative economic consequences of the Great Depression had made him vastly unpopular as many Americans by 1932 were desperate for new leadership.
Fireside Chats
Radio broadcasts in which FDR spoke directly to Americans in a calm, relatable tone. These chats helped rebuild public confidence during the Depression and were groundbreaking for presidential communication.
The Hundred Days
The period from March 9 to June 16, 1933, during which President Franklin D. Roosevelt’s administration passed a significant amount of New Deal legislation in an emergency session of Congress. This period is characterized by a rapid response to the Great Depression, with Congress enacting a series of programs aimed at economic relief, recovery, and reform.
Emergency Banking Act
- A crucial piece of legislation in 1933 that aimed at stabilizing the US banking system. It created a “bank holiday,” temporarily closing all banks, and gave the President extensive powers to regulate banks and issue emergency currency.
- This act restored public confidence in the banking system by allowing unfaulty banks to reopen under federal supervision after being inspected for financial health.
The Glass-Steagall Act
-A 1933 law that aimed to create a barrier between commercial banking (deposit accounts, loans, and payments) and investment banking (high-risk investments and buying/selling stocks)
- Seeked to protect consumers from irresponsible practices and stabilize the financial system.
The National Industrial Recovery Act (NIRA)
- A key piece of legislation enacted in 1933 as part of the New Deal, that sought to stimulate industrial growth by establishing codes of fair competition, setting prices, and regulating working conditions.
- NIRA also included provisions for labor rights, helping to empower workers and encourage unionization, thus playing a significant role in shaping labor relations in the United States.
- Was declared unconstitutional by the Supreme Court.
Civilian Conservation Corps (CCC)
-A government work relief program established in 1933. It aimed to provide jobs for young, unmarried men during the Great Depression.
- These men worked on various conservation and infrastructure projects on federal lands, contributing to the nation’s natural resources while also receiving monthly wages and support.
Public Works Administration (PWA)
-A New Deal agency created in 1933 to provide jobs and stimulate the economy through the construction of large-scale public works projects like bridges, dams, schools, and roads.
-The PWA not only created jobs but also improved the nation’s infrastructure.
Civil Works Administration (CWA)
A New Deal program, aimed to provide temporary jobs during the Great Depression’s winter of 1933-34, employing millions in public works projects like road construction, bridges, and schools.
Agricultural Adjustment Act (AAA)
- A New Deal legislation enacted in 1933 aimed at boosting agricultural prices by reducing surpluses. The act provided direct payments to farmers who reduced their production of certain commodities, including cotton, corn, and wheat.
-The program resulted in a significant increase in farm income and prices but also led to some controversial practices, such as the destruction of crops and livestock.
The Dust Bowl
-A severe environmental disaster during the 1930s, characterized by extreme droughts caused by poor agricultural practices which led to massive dust storms across the Great Plains of the United States.
-The environmental disaster highlighted the importance of sustainable farming practices and led to significant changes in agricultural policies to prevent future occurrences.
Huey Long
A prominent American politician from Louisiana who served as a U.S. Senator from 1932 until his assassination in 1935. He is known for his populist views and radical ideas and was a vocal critic of the New Deal and advocated for wealth redistribution and social reforms to help the poor.
Share Our Wealth Movement
A social and economic reform movement initiated by Louisiana Senator Huey Long in the 1930s, aimed at addressing wealth inequality during the Great Depression by proposing radical measures, like wealth redistribution through heavy taxation on the rich, caping personal fortunes at $1 million, and government programs to provide for basic needs like education and healthcare for all citizens.
Rural Electrification Agency (REA)
A New Deal agency established in 1935 to provide low-cost loans to farm cooperatives, enabling them to bring electricity to rural areas that lacked access to it.
Wagner Act (aka National Labor Relations Act of 1935)
A piece of labor legislation that aimed to address the imbalance of power between workers and employers by granting workers the right to form unions and engage in collective bargaining without fear of retaliation.
Social Security Act
- A piece of legislation enacted in 1935 which established a system of old-age benefits, unemployment insurance, and aid to dependent mothers and children, and the disabled.
- The Social Security Act marked a significant shift from rugged individualism.
- Prior to this act, such assistance was primarily left in the control of local governments and private charities.
The Congress of Industrial Organization (CIO)
- A federation of labor unions in the United States established in 1935 as a response to the growing need for organized labor representation.
- It emerged from a disagreement within the American Federation of Labor (AFL) over whether to focus on skilled workers or include all industrial workers in an organization.
Revenue Act of 1935 (Wealth Tax Act)
Increased taxes on the wealthy and large corporations to fund New Deal programs.
