Period 7: 1890 - 1945 | Part V

the Great Depression led to an emergence of? how?

American liberalism because citizens believed that the government should be stronger in regulating the economy

how was industry during the 1920s?

• traditional, laissez-faire and deregulation

• flourishing

• tax cuts/breaks for mainly the wealthy

how did stock prices rise during the 1920s?

purely by speculation as people were being risky and investing “new money”

by the late 1920s, ___ was catching up to demand. what does this mean?

supply

• means that factories were producing so much of something that people were not buying them as much anymore

the gap between the ___ and the ___ continued to grow. what other social class grew?

• rich and the poor

• middle class

why was there such a big growing gap between economic classes?

wages were not keeping up with inflation

what did “get rich” schemes and real estate booms encourage?

risky investing

why was it an issue that 80% of Americans had no savings?

they were financially unprepared for the depression where they would lose all their money they invested

what was the stock market crash?

16 million shares sold, but no one bought them causing money that keeps businesses afloat to disappear

easy credit led to broker’s loans. explain.

• people buy stocks with borrowed money (on margin)

• when prices fell, they could no repay broker

• broker cannot repay bank

• chain reaction

speculative prices bursted during this time. what is that?

prices driven by people guessing and betting that something will become more valuable in the future, rather than being based on its actual worth or profits

essentially, ___ and ___ ___ ___ led to a depression economy.

overspeculation and over-extension of credit

there was an unequal distribution of wealth. what percentage of the population had wealth?

0.1%

how was purchasing power lost?

wages did not increase with production or inflation

why did banks fail?

deposits were lost and money was not given back

___ rates decreased to 25%.

unemployment

what did Herbet Hoover believe in? explain.

ragged individualism which stated how self-reliance and personal liberty must be protected

Hoover believed that the federal government cannot provide ___.

charity

what was the Hawley-Smoot tariff? what did it do?

high protective tariff that raised rates DURING the Great Depression that further shrunk markets for American goods because less people and countries bought from them

what was the Reconstruction Financial Corporation?

corporation that made federal loans available and began public works projects to create jobs

what was the Bonus March? what was Hoover’s response?

• WWI veterans that wanted a bonus check for combat service

• Hoover said they do not have enough money and sent military to disperse the protesters

Hoover’s use of military intervention during the protesting symbolizes what?

limited help of the depression

what did FDR promise for the people?

a New Deal

how did FDR convey confidence, optimism, and assurance that the government would help the people?

thru radio addresses and fireside chats that detailed the New Deal to the American public

FDR prevented a complete left-wing or right-wing takeover of the government. was is the left and right wing?

left: communism

right: fascism

what were FDR’s Three R’s in his New Deal which was his response to the depression?

• relief: provide jobs

• recovery: revive industry and agriculture

• reform: prevent future depression and make government a safety net

FDR continued activism by the ___ ___.

executive branch

what were the alphabet agencies?

public works projects and other programs that opened jobs for people and helped people during the depression

FDR increased the power of the ___ ___.

executive branch

FDR challenged classical liberalism. what is that?

• belief in individual liberty, self-reliance, and pursuit of prosperity

• consent of the governed

classical liberalism turned into American liberalism in the New Deal. what is that?

• government should work to solve problems and provide tools necessary for everyone to prosper

• guarantee of equality

• activist government

• four freedoms: speech, religion, freedom from fear/want

what was the welfare state that the Democrats and FDR created?

system where government takes responsibility for economic and social well-being of citizens by giving support like education, public assistance, and a safety net to protect people

explain Keynesian economics.

• during severe economic recession, government should increase spending

• through deficit spending, they can stimulate demand and stop the economy from collapsing further

• bottoming out to help recovery begin

how did FDR ensure that deficit spending could occur in the US?

by switching to the gold standard which allowed more flexible government spending

how did the Democratic party change? who follows them?

• minority > majority

• larger government and social welfare programs

• support from disadvantaged, working-class, immigrants, and solid south

• most African Americans supported them because of promises of equality and opportunity

how did the Republican party change? who follows them?

• limited government

• more traditional values

• protection of liberty

• supported by middle class, business interests, and northern white Protestants

what was the difference between the 1st and 2nd New Deal?

• 1: more radical

• 2: not much legislation because of conflicts occuring

what was the “Bank Holiday” and Glass-Steaghall Act?

when all banks closed for evaluation by the Treasury Dept, and only healthy banks reopened to ensure deposits thru the Federal Deposit Insurance Corporation

what was the Securities and Exchange Commission?

guidelines for the stock market that regulated trade and traders

what was the Civilian Conservation Corp?

unemployment relief in environmental projects

what was the Tennessee Valley Authority?

government funded hydroelectric power plants, but this was controversial because government was owning public utility (scoialism)

what was the Public Works Administration and Works Progress Administration?

public works built for unemployment relief

what was Federal One?

employed artists, musicians, actors, and writers to show there is still room for creativity and innovation and keep culture alive

why did FDR push for more radical New Deal legislation?

the left (Democrats) believed he hasn’t gone far enough, even though the right (Republicans) believe he gone too far

FDR committed the New Deal to what?

aiding the poor, unemployed, and workers

what was the Agricultural Adjustment Administration?

• paid farmers subsidies to reduce crop production to lower surplus supply to match supply to demand

• it was controversial because it destroyed excess food and livestock

• ruled unconstitutional by the Supreme Court.

what was the Social Security Act?

pension system for the elderly funded by payroll taxes from workers and employments for retirement benefits

what was the Wagner Act (National Labor Relations Act)?

worker has the right for collective bargaining and to join unions

what was the Fair Labor Standards Act?

established minimum wage which forever ended pure capitalism because the government is telling industries how much to pay its workers

what was the National Housing Act?

funded, low-income public housing programs to help provide affordable housing for struggling families

what are 2 examples where SCOTUS setback the New Deal?

• Schechter vs. US: invalidated NRA

• US vs. Bulter: invalidated AAA because Congrses cannot tax to regulate farm production

what did FDR do in response to the 2 court cases that invalidated parts of his New Deal? what did it do?

• presented the “Court-Packing'“ Plan that said to increase the amount of justices from 9 to 15

• bias because government is Democrat-full, so he will nominate a Democrat and Senate will agree (justice not supposed to be bias

did the “Court-Packing” Plan pass?

no, so now conservative Democrats did not support him, making the bill harder to pass

the New Deal made the era of big government. explain.

states were unable to assist the people in need, so the government was being relied upon to solve problems

what was established as part of “welfare states”?

mandated pensions, unemployment insurance, and food stamps

1 example of how the Wagner Act helped unions become more protected and stronger.

Congress of Industrial Organizations

• organized worker by industry

• “sit-down” strikes

• Democrats supported them

what was the Indian Reorganization Act?

• tribal sovereignty returned

• more self-government and responsibility

how did African Americans suffer disproportionately?

• many programs allowed discrimination (“last hired, first fired”)

• excluded from benefits

• limited access to jobs and relief

who fought discrimination in the government during this time?

• Eleanor Roosevelt

• “black cabinet” > Office of Minority Affairs

did the New Deal end the depression?

NO

did FDR reinforce isolationism? how?

yes by having little cooperation between other powers

ALWAYS compare US isolationism and depression with what in Europe?

totalitarianism

what is the only thing that will end the depression?

WWII

the Great Depression and New Deal created the expectation of governmental intervention to do what?

maintain economic stability what

what were repatriation drives? who did they target?

city and state efforts (not authorized by the federal government) that were made to expel Hispanic farms, migrant workers, Mexican immigrants, and Mexican Americans from the US

why did they want to expel Mexican and other Hispanics so bad?

create job opportunities for Native Americans

movies and other entertainment created a sense of ___ during the Great Depression.

escapism

how did radios regulate everyday life?

music, comedy, news

2 writers influenced by the suffering of Great Depression.

• John Steinback: (Grapes of Wrath) tragedy with message of hope

• Richard Wright: (Native Son) self awareness and accountability in traffics circumstances

___ was the best expression of documentary style. ___ ___ did this.

photography; Dorothea Lange

what was the Dust Bowl?

severe drought that caused dust storms which killed people and forced migration wh

what was the solution to the the victims of the Dust Bowl? did it work?

Resettlement Administration

• resettle victims

• did not work

how did the New Deal transform the west?

reforestation, water projects, electricity

who were the okies?

migrated from the Dust Bowl to mainly CA to be migrant farmers

women were growing in ___ influence. 2 examples.

• political

• Francis Perkins: first female Cabinet members (Sec of Labor)

• Eleanor Roosevelt: First Lady

how much percent of work-relief programs employed women?

20%