IB Paper 3: The Great Depression & the Americas

1929

When did the stock market crash?

Fordney-McCumber Tariff & the Hawley-Smoot Tariff

Name the 2 tariffs from the postwar years that contributed to a dramatic decline in world trade.

speculation & buying on margin

These are considered the "seeds of trouble" for the speculative boom on the stock market during the Roaring Twenties.

Warren Harding, Calvin Coolidge & Herbert Hoover

Collectively, they are known as the postwar presidents. Each stood for isolationism and minimal government involvement in the economy.

10%

How much money did you need to put down if you were buying a stock on margin?

(1) tariffs and war debts, (2) crisis in the farm sector, (3) easy availability of credit, and (4) unequal distribution of wealth

What were the 4 causes of the Great Depression?

1929-1940

When did the Great Depression take place?

Herbert Hoover

He was president at the outset of the Great Depression.

"rugged individualism"

Hoover subscribed to this American ideology and it shaped the way he responded to the onset of the economic crisis.

Superficial prosperity

Describe the nature of the prosperity of the Roaring Twenties.

Conspicuous consumption

This type of consumption led to the accumulation of $6 billion of consumer debt.

John Steinbeck

He wrote the novel The Grapes of Wrath.

Woody Guthrie

He is considered the musical voice of the Depression Era. His songs documented the struggles of those forced to live life on the road.

Hoovervilles

Nickname Americans used for shantytowns during the Great Depression.

Breadlines & soup kitchens

More and more Americans were forced to rely upon these for their daily

"Riding the Rails"

In class we watched this documentary film to learn about the impact of the Great Depression of American teenagers.

"Dust Bowl Refugees"

Woody Guthrie's song that describe the impact of the Dust Bowl on American farmers from that region.

25%

What was the unemployment rate by 1932?

"The Great Plow Up"

This phrase refers to the rush of farmers (new & experienced) into the Great Plains during WWI. In total they plowed over 5 million acres of land for grain production.

Bonus Army March

WWI Veterans that demanded Congress pay them the "bonus" promised to them for their service in World War I. Ultimately, President Hoover called out the army to disburse them. It proved to be a political calamity for the already unpopular president.

Reconstruction Finance Corp. (RFC)

Hoover attempted to deal with the economic crisis by passing this law. It provided emergency funding to help large corporations stay in business. It was based on the belief in "trickle-down" economics.

Bank runs

After the stock market crashed in October 1929, thousands of Americans feared for their money and rushed to get it out of their banks. This phrase described the phenomenon that ultimately led to widespread bank closures. By the end of the year 641 banks had failed.

6 billion dollars

By the end of the Jazz Age Americans had accumulated this much consumer debt. It was largely driven by conspicuous consumption.

Hoboes

Slang term for homeless transients during the Great Depression. It is estimated that 250,000 were teenagers.

Federal Home Loan Bank Act

Passed in 1932 during Hoover's administration, this helped homeowners refinance their mortgages.

9 million

By the time FDR was inaugurated in 1933, how many personal savings accounts had been lost?

The New Deal

FDR's 1932 campaign slogan & pledge that became the term to define his domestic programs and policies that were designed to tackle the problems created by the Great Depression.

the "First Hundred Days"

Phrase that refers to the time it took Congress and FDR to begin taking legislative action to combat the Great Depression. 15 pieces of legislation were passed during this period.

deficit spending

Economic policy promoted by John Maynard Keynes as the solution to the Great Depression.

National Industrial Recovery Act (NIRA)

FDR believed this was the single most important legislation passed by Congress. However, in 1935 the Supreme Court ruled it to be unconstitutional on the grounds that it gave legislative power (reserved for Congress alone) to the president - FDR.

Agricultural Adjustment Act (AAA)

This New Deal Act was created for the purpose of raising prices of farm products. In 1936, the Supreme Court ruled this New Deal act unconstitutional because it allowed the federal government to regulate intrastate trade.

Civilian Conservation Corps (CCC)

This hired 18-25 year old men to work on major construction projects.

Social Security Act (1935)

Historians agree that this is the most important and long-lasting act of the New Deal.

Glass-Steagall Act

This act led to the creation of the Federal Deposit Insurance Corporation (FDIC).

Securities and Exchange Commission (SEC)

The Federal Securities Act was passed in 1934 and led to the creation of this important regulatory agency.

Tennessee Valley Authority (TVA)

This New Deal program rebuilt dams to prevent flooding & provide electricity to an impoverished region. It proved controversial because the federal government was running a business.

Works Progress Administration (WPA)

This New Deal program was passed during the second wave of legislation. It was massive - it spent $11 billion and created 8 million jobs.

Dorothea Lange

She took the famous photograph "Migrant Mother."

Social Security Act (1935)

FDR's liberal critics ultimately influenced him to create this act in 1935.

Loneliness

Edward Hopper's cityscapes captured this mood.

CCC

Despite advances with New Deal programs addressing the needs of minorities, this New Deal work program still segregated its members.

NRA

This New Deal administration protected American workers, but fell short by not explicitly protecting African American workers from discrimination.

Frances Perkins

She was the first women to serve in the cabinet of a president.

Mary McLeod Bethune

She was an important adviser to FDR on issues related to African Americans. She helped for FDR's "Black Cabinet."

Indian Reorganization Act

This New Deal law was designed to reverse the forced assimilation of Native Americans into white society.

Deportation

During the Depression both Hoover and FDR supported this policy towards Mexican citizens.

Farm Security Administration

This New Deal program actively protected the rights of black tenant farmers.

Liberal and Conservative

Canada's two major political parties during the Depression Era.

William Lyon Mackenzie King

Liberal Party Prime Minister of Canada

R.B. Bennett

Conservative Party Canadian Prime Minister

Hoover's "rugged individualism"

With which American President did PM King share a similar ideological response to the onset of the Great Depression?

boondoggle

Slang for Canadian provincial gov't work programs that hired "relief men" to dig holes only to fill them up the next day simply to keep them busy

Unemployment Relief Act of 1930

Passed by Bennett's gov't to provide assistance to the poor

Royal Twenty Centers

Controversial work camps in Canada created by the national gov't

Bennett

Which Canadian PM said in 1934 that assistance to the provinces was "wasteful and extravagant"?

Bennett

Which Canadian PM attempted to introduce their own version of the New Deal?

Ontario & Quebec

These wealthier provinces put up fierce opposition to King's attempted national unemployment insurance reform

Export-led crisis

What was the primary crisis in Latin American economies during the Depression era?

Tariffs & large-scale cash crop based economies

What two factors significantly contributed to economic collapse in Latin America during the Depression era?

ISI

What was the primary regional solution to the Depression in Latin America?

Import substitution industrialization

What does ISI stand for?

Lacked diversification

Why were Latin American cash-crop economies uniquely vulnerable to the onset of the worldwide economic collapse?

to promote domestic manufacturing and industrialization so that nations could achieve greater independence

What was the intended outcome in adopting ISI?

led to greater state (gov't) investment and involvement in the economy and consequentially more state power

How did ISI alter the role of gov't in Latin American economies?

"Depression Dictators"

This was the political trend in Latin America as a result economic crisis.

Yes, but it didn't end the Depression. Review Reader notes for more detail :)

Was ISI successful?

Getulio Vargas

President of Brazil during the Depression

Coffee

Brazil's cash crop

72%

How much of Brazil's foreign exchange in 1929 was based on coffee?

Valorization

Strategy adopted by Brazil that included hoarding the supply of coffee in order to control prices.

Estado Novo

Vargas introduced this state program based on corporatist ideology to address economic crisis