Unit #8 Flashcards
(218 cards)
Election of 1928
Calvin Coolidge decided not to run for a second term. Herbert Hoover became the Republican nominee and Alfred E. Smith was the democratic candidate. Herbert Hoover won in a landslide.
Herbert Hoover as the 1928 Republican Candidate
Hoover used to be the secretary of commerce so the “Coolidge Prosperity” was associated with him as well. His personality sparkled on the new found radio. He had never been elected into public office before but he won.
Alfred E. Smith at the 1928 Democratic Candidate
Smith’s campaign was affected by scandal because he drank during the prohibition era and was a Roman Catholic. This caused dry, rural, fundamentalist democrats to disapprove. Smith had been in elected positions before but he sounded odd on radio.
“Black Tuesday” A.K.A The Stock Market Crash
A devastating stock market crash caused by over-speculation and overly high stock prices built on non-existent credit.
Overproduction/Underconsumtion
The Great Depression might have been caused by an overabundance of farm and factory products. The nation’s capacity to consume goods was outrun by the capacity to produce goods.
Over-Speculation
A cause of the stock market crash - “Black Tuesday”.
Monetarist School
Economic thought that money supply is the main determinant of the current dollar GDP in the long run and the price level over longer periods.
Buying on Margin
Allowed people to borrow most of the cost of stock making very low down payments.
Normal Business Cycle
A peak in the level of output is followed by a recession phase then a recovery phase that leads to another peak. This cycle is steadily growing.
Rugged Individualism
Hoover spoked of this view that America was made great by strong, self-sufficient individuals because he was a self-made millionaire.
Hoover’s Response to the Depression
Hoover believed the Great Depression was part of the normal business cycle at first. He believed in laissez faire business and didn’t want government interference in the economy.
Agricultural Marketing Act
An act passed by Hoover designed to help farmers help themselves through producers cooperatives. It set up the Federal Farm Board.
Federal Farm Board
Created by Hoover’s Agricultural Marketing Act. This board bolstered sagging prices of corn and grain by buying surpluses.
Hawley-Smoot Tariff
Tariff (tax on imports) that was an unbelievable 60%. Widened trade gaps, worsened the depression and foreigners hated the tariff because it ended a promising worldwide trend to reasonable tariffs.
Hoover Dam
On the Colorado River. This was a public works project that Hoover invested in in order to enforce his “trickle down” policy. Hoover vetoes this because the government would be deciding how the electricity would be appropriated (government interference).
Muscle Shoals Bill
Designed to the dam the Tennessee River. Embraced by the Tennessee Valley Authority. It was vetoed by Hoover.
Reconstruction Finance Corporation
A government lending bank. HUGE step for Hoover because it went against the laissez faire policies. Giant corporations ended up benefiting from this because no loans were given to individuals.
1930 Mid-Term Elections
The Republican majority and the Democrats took control of the House and almost took the Senate.
The Bonus Army
Veterans who had not been been paid for WWI marched to Washington and demanded their bonuses. They erected shacks and when troops came to intervene, after Congress failed to pass the bonus bill, riots broke out/ Hoover falsely stated communists were at the riot to justify his excessive use of force against veterans.
Franklin Roosevelt
Democrat candidate in 1932. A cousin of Theodore Roosevelt who was disabled. FDR was suave and conciliatory where TR was confrontational.
Eleanor Roosevelt
The most active first lady ever. Known as the “Conscious of the New Deal”. She had a newspaper column, influential policies and lobbied for her husband.
Democrat Platform 1932
Promised repeal of prohibition, a balanced budget and sweeping economic reforms. They made sure to call the Great Depression the Hoover Depression. FDR attacked Hoover’s spending.
The New Deal
FDR promised a vague and contradictory deal for the “forgotten man”.
The Braintrust
Academic advisors that helped FDR during his campaign. His speeches were ghost written by these people and they created an economic plan that would be the backbone for the New Deal.