Hon Am Unit 5: The 1930s & The Great Depression

Longest and worst economic crisis in American history

The Great Depression

How much wealth is controlled by each class

Wealth distribution

In 1929, ____ of the country was living in some degree of poverty

2/3

_______ always has SOME uneven distribution of wealth

Capitalism

A living wage in 1929

~$2,500

Wealth distribution is good because of...

Incentives, freedom, opportunity (financial and business)

Wealth distribution is bad because of...

Demand for goods going down, not enough consumer spending

The government should do SOMETHING about wealth distribution by...

Minimum/Maximum wages, DSE, etc.

The government should do NOTHING about wealth distribution...

Free market better, unions act as a non-government solution

The Federal Reserve cut the money supply ___

1/3

The federal reserve tried to restrict how much money could be borrowed through ____

Deflation

US trade went down 75% in 4 years

Smoot-Hawley Tariff

Cited churches and charities to solve the depression (Free market), less gov action

Herbert Hoover (Republican)

Summer 1932, WW1 vets demanded gov to to pay bonus 13 yrs early (originally 1945, paid in 1936)

Bonus Army

The Military was called in the bulldoze and set fire to encampments, resulting in ___ deaths

2

Promised people a new deal, used more gov leadership/action to end depression

Franklin D. Roosevelt (Democrat)

Sudden and dramatic drop in stock prices

Stock Market Crash of October, 1929

A sampling of the stock market

Dow Jones Industrial average

An upward trend in the stock market

Bull Market

A downward trend in the stock market

Bear market

Buying stock with borrowed money

Margin buying

Investors only had to pay ____% down and could borrow the other _____%

10, 90

Rapidly buying stocks to make quick money

Speculation

Loan your money to other people, charge them higher interest rate than they pay you

How banks make money

Took depositers' money, invested in the market themselves

How banks invested money

Banks running out of money, caused many to lose life savings

Bank failure

Only __% owned any stock during the crash

5

____a share for US Steel dropped to _____

$261, $21.25

Growing sentiments of fear/hopelessness/shame

Inherited Social Problems for FDR

Role of gov combined with ineffective action by Hoover

Inherited Political Problems for FDR

High unemployment and uncertainty

Inherited Economic Problems for FDR

President's first 100 days in office, higher approval ratings, still sending biggest and most important problems to Congress

The 100 Days

Roosevelt from Wealthy, New York Family was still able to connect with the common man

Populism

Due to contracting Polio, FDR was in a _____-

Wheelchair

FDR's series of gov programs to end Great Depression

The New Deal

3 R's of the New Deal

Relief, Recovery, Reform

By 1935, progress was slow, so FDR introduced more extensive programs

Second New Deal

FDR's wife transformed role of First Lady

Eleanor Roosevelt

1944, in a speech by FDR: A job with basic income, healthcare, education, financial security in old age

Second Bill of Rights

Immediate help

Relief

FDR gave messages over radio providing social relief

Fireside chats

March 6, 1933, closed all banks, gov determined who could reopen

Bank Holiday

1933, sent urban men to rural America to work in parks; given clothing, housing, and $30K a month ($25K would be sent home)

Civilian Conservation Corps (CCC)

Gave federal money to states and local Govs, over 8 million families (1/6 of pop) received $3 Billion in handouts in total

Federal Emergency Relief Administration (FERA)

1933, short term low-skill jobs for the most vulnerable

Civil Works Administration (CWA)

Lowered interest rates on homes

Home Owners Loan Corporation (HOLC)

Helped economy as a whole

Recovery

Took US currency off the ______ to print more money

Gold Standard

1933, paid farmers to reduce food supply so they could charge higher prices, declared unconstitutional in 1936

Agricultural Adjustment Act (AAA)

Encouraged businesses to cooperate on hours and wages, hire more people, declared unconstitutional in 1935

National Industrial Recovery Act (NIRA)

Part of NIRA; Blue eagle, "We do our Part"

National Recovery Administration (NRA)

Made people nothing more than billspayers

NRA

Reforming the economy to prevent another Depression

Reform

1933, established FDIC. Congress tried to organize banking system.

Glass-Steagall Act

Provided federal insurance for individual bank accounts---up to $5K; banks had to act cautiously with peoples' money

Federal Deposit Insurance Corporation (FDIC)

May, 1933, this act required companies to provide all info on stock offerings and made them liable for misrepresentations

Federal Securities Act

Created by Congress in June 1934; regulate stock market, meant to prevent insider trading

Securities Exchange Commission (SEC)

Senator F. Wagner, Reestablished NIRA provision of collective bargaining, set up NLRB

Wagner Act

Listened to workers testimonies about unfair practices and held elections to see if workers wanted union representation

National Labor Relations Board

This act in 1935 had 3 major parts: Retirement plans (65 or older), unemployment compensation, aid to disabled and dependent children

Social Security Act

Critics of the New Deal called FDR's programs this

Alphabet Soup

Empty pockets

Hoover flags

Shanty towns (Seattle and Hill District)

Hoovervilles

Old newspapers

Hoover Blankets

Michigan Autoworkers on New Year's Eve 1936 went on strike and were defended from police by the National Guard sent by FDR

Sit Down Strike

Family separations, health concerns, schools shut, psychological trauma

Negative aspects of Life during GD

Communities stuck together

Positive aspects of Life during GD

Men wore suits and hats in breadlines, women wore red lipstick; meant to protect peoples' ______

Dignity

Drought in Midwest caused by overproduction of crops led to dust being blown across country in 1934 and 1936.

Dust Bowl

Many moved west to CA during the _____

Dust Bowl

People took Route 66 to move west as well as hopped on trains moving west; this was called ___

"Riding the Rails"

______ was preserved through music (Woody Guthrie), radio, sports, movies, etc.

Culture

Author of "The Grapes of Wrath" and "Of Mice and Men"

John Steinbeck

Famous gang leader who created breadlines and soup kitchens

Al Capone

Allegheny General Hospital, McKnight Rd, Homestead Grays Bridge, Cathedral of Learning at Pitt

New Deal Locally

High approvals/hope (Populism), fireside chats,

Sociali Positives

Breadlines, shame/stress, African Americans weren't helped by New Deal

Social Negatives

3 re-election wins (4 terms), Gov started helping people, Social Security still helps people today

Political Positives

Over reliance on gov, New Deal went too far (Too much Gov), Court-packing (9 --> 15 Court justices), Unconstitutional programs (AAA, NIRA)

Political Negatives

Unemployment and Stock Market improved, GDP to pre crash levels by 1937, FDIC

Economic Positives

Unemployment and Stock Market NOT to pre-crash levels, NRA turned people into Billspayers, the Great Depression wasn't ending, taxes increase with little benefit

Economic Negatives