Great Depression + FDR

What was the economic situation like during the 1920s?

1. Superficial Prosperity: Wealth concentrated in 1% of population.

2. Income Inequality: 15% income rise for top 1% vs 9% for average.

3. Overproduction: Excess goods produced as a result of WWI, leading to price drops.

What was happening to farmers?

• Farmers overproduced as a result of WWI =? Removal of parry grass led to the dust bowl

• Because farmers took out loans to buy more land to grow more crops, many farms were foreclosed since they couldn't pay back loans.

What happened to banks because farmers could not pay the banks back?

Bank foreclosures (11,000 of 25,000 banks failed by 1933, pre-Roosevelt) lead to widespread economic collapse, affecting other sectors of the economy and leading to a domino effect.

What were some other sectors of the economy affected?

Railroads, textiles, and steel.

What bill was the solution to the farm surplus that wasn't being sold? What did it propose?

The McNary-Haugen Bill proposed to buy crops from farmers that were not being sold.

What was Black Tuesday?

Stock market crash on October 29, 1929.

Define: Buy on Margin

Investing with borrowed money => more risky

Define: Stock Speculation

Investing based on price increases, ignoring risks.

Define: Bull Market

Period of rising stock prices before the crash.

Explain Hoover's childhood.

• never finished his education pass 5th grade

• sent to live with his uncles

• senator gives him Stanford Admissions test

• does well => goes to Stanford studying Geology => travels world and becomes self-made millionaire

• helped Wilson in WWI to make propaganda about food

• Secretary of Commerce under Coolidge => trusted by people at first

• struggled with social situations

What was Hoover's Policy like?

Government's limited role in economic recovery.

Rugged Individualism

Belief in self-reliance and personal responsibility.

How many people were unemployed during the Great Depression?

1/4 people

How much did the GDP go down?

Economic output reduced by 50% from 1929-1933.

What were Shantytowns and what was another name they were also known as?

• Shantytowns were housing made of whatever was available (cars, boxes, literally anything)

  • also called Hoovervilles for his lack of action

How did people save food?

• Soup Kitchens: kitchens providing food during the Depression.

• Woman also canned foods.

• Children were malnourished

What happened to minorities during the Great Depression.

• Increased tensions among job-seeking minorities

• Unconstitutional deportations of Mexican people, who were mostly migrant workers

Hawley-Smoot Tariff

Highest tariff in U.S. history, 1930.

Describe the conditions on working on the Hoover Dam.

• created jobs and energy for growing cities

• had to divert Colorado River => dug tunnels => carbon monoxide poisoning

• hot in tunnels

• used water pipes to cool down 6.6 million tons of concrete

National Credit Corporation

Loans to small banks to prevent foreclosures.

Describe what happened to the Bonus Army

WWI veterans demanding bonuses, protested in D.C.

Farm Holiday

Farmers' strike to protest low prices.

What program did Roosevelt make to help with the Great Depression?

The New Deal

Eleanor Roosevelt's Role

Active First Lady, advocated for civil rights.

What was the Brain Trust

FDR's group of advisors for policy-making.

What were Fireside Chats?

FDR's radio addresses to explain policies.

How did FDR communicate during Fireside Chats?

He talked as if he were in the living room with the family.

What type of language did FDR use in his Fireside Chats?

Simple language.

What were the 3 goals of the New Deal?

Relief, Recovery, Reform

What economic/political policy was the New Deal associated with?

Socialism

Emergency Banking Relief Act

Allowed Treasury to assess bank health.

What made the CCC problematic

had segregated camps.

How are loans backed by the Federal Housing Administration compensated?

The government compensates banks if loans aren't paid back

Why did Roosevelt not help with discriminated communities, especially African Americans?

needed support of southern states to pass New Deal agenda => never passed anti-lynching laws/eliminated poll tax

Southern Negro Youth Congress

Advocated for civil rights and organized boycotts.

Father Charles Coughlin

Extremely popular radio priest who criticized Roosevelt, but became anti-Semitic and lost support.

Dr. Francis Townsend

Proposed pension plan for elderly => Social Security.

Huey Long

• Political figure advocating wealth redistribution ("share our wealth")

• socialist but didn't want government in businesses

• assassinated.

American Liberty League (Conservative)

Opposed Roosevelt's New Deal as it violated rights of private business (socialist)

What happened to the NIRA and the AAA?

• Struck down by supreme court because they were interfering in state matters and not federal (i.e. interstate commerce, industry codes, agriculture)

• illegal (AAA processing tax)

What was the Court Packing Bill?

would force judges 6 months past 70 years old to be replaced (many current judges were about to 70 years old)

What changed in the Second New Deal?

Focused on rural America and economic recovery + removing unconstitutional parts.

What did Eleanore Roosevelt do after the first New Deal?

Traveled around the country to listen what people had to say (ex employ more women)

Francis Perkins

First female Secretary of Labor, HUGE advocate for Social Security.

Southern Tenant Farmers Union

Protected rights of both white and black farmers.

New Deal Coalition

Alliance of diverse groups supporting Roosevelt's policies.

CIO

Congress of Industrial Organizations, labor union group.

What was the U.S. foreign policy like during Roosevelts time in office?

There was isolationist sentiment to prevent the tragedy of WWI again.

Briand Doctrine

Agreement to renounce war as national policy.

Stimson Doctrine

U.S. policy opposing territorial changes by force, targeting Japan.

Dawes Plan

Plan to stabilize German economy post-WWI.

Good Neighbor Policy

U.S. foreign policy to Latin America, promoting cooperation.

Neutrality Acts

From 1935-1939, 5 pieces of legislation were passed to prevent U.S. involvement in foreign wars.

Merchants of Death

A Book alleging war profits motivated U.S. entry into WWI, which the Nye Committee was promptly created and found it to be true.

Quarantine Speech

FDR's speech warning the public about the cost of isolationism

What happened to the St. Luis?

a group of refugees escaping the Holocaust was on its way to Havana, when Cuba wouldn't let them enter. The U.S. ended up not letting them in, but Western European countries offered to give them refugee status. Because they fell to Germany, almost everyone on that ship ended up dying.

Lend-Lease Act

U.S. program to supply allies with military aid.

Cash and Carry

Policy allowing arms sales if paid in cash and carried themselves.

Selective Service Act

Law for peacetime military draft during WWII (16 million signed, 1 million drafted)

Four Freedoms

Freedom of speech, worship, want, fear.

Why did Roosevelt give the Four Freedoms Speech?

To defend his decision in sending arms

What organization did Charles Lindbergh form?

the America First Committee, to oppose US involvement in WWII.

What were U-boat attacks called?

Wolfpack attacks

What decision was passed by Congress in August 1941?

To extend the drafts in the Selective Service Act

What was the name of the ship Winston Churchill and FDR met on?

The Augusta

What did the meeting lead to, and what organization did it become the founding basis of?

The Atlantic Charter

What was December 7th, 1941 known as?

“A day that will live in infamy”