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causes of the Great Depression
Over-production & under-consumption - b/c items that ppl don’t buy on regular basis are overproduced (ex. cars and appliances)
Problems for farmers and industry
Increasing American debt - b/c used credit to buy beyond means (by end of 20s, ppl must cut back on spending)
Uneven distribution of wealth - gap btwn rich and poor widened, spending was done by top 30%
Stock market speculation/crash - catalyst
What were the problems for farmers and industry that helped cause the Great Depression?
decline in demand after WWI
crop prices decrease, so farmers can’t pay loans and farms are foreclosed
railroads, textiles, and coal lose money b/c there’s competition from newer tech (cars, synthetic fabrics, natural gas, etc.)
How did stock market speculation help cause the Great Depression?
many bought “on the margin” - borrowed money to pay for stocks (risky)
stock market wasn’t regulated; some companies altered price in increase profit (created a “bubble”)
cycle of peaks and drops, then crashed Oct. 29th, 1929 (Black Tuesday)
ppl who bought on the margin couldn’t pay back
ppl rushed to sell and prices dropped
How did the stock market crash affect banks?
led to run on banks - ppl tried to withdraw money, but banks fail b/c don’t have enough
so ppl lose savings → businesses fail → unemployment (or kept jobs w/ pay cuts)
Dust Bowl
wind storms that swept away soil, making farming impossible and depositing dust everywhere
worsened the effects of Great Depression
caused by over-farming and droughts
Hoover’s response to the Great Depression
limited federal gov involvement (b/c Republican) - thought ppl should rely on own communities, states, churches, nonprofits, and themselves (would build American character)
implemented some public works projects (Hoover Dam!), but very limited federal gov relief for individuals
public’s response to Hoover’s policies during the Great Depression
upset, wanted more relief; nicknamed makeshift towns for homeless “Hoovervilles” as criticism of Hoover
FDR’s response to the Great Depression
New Deal (relief, recovery, and reform) - much more federal gov intervention/relief than Hoover gave
FDR’s administration took unprecedented amount of federal power
goals = unite to fix country, help farmers, federal gov provides temporary employment w/ public works projects, be more careful about banking/money/investments
Did the New Deal pull the US out of the Great Depression? Explain.
No - kept US from falling farther into depression for the most part, but WWII was what pulled US out of depression
Hawley-Smoot Tariff
Hoover raised taxes on imported goods even higher to try to encourage ppl to buy US goods; backfired b/c other countries retaliated w/ own tariffs, so more expensive for US citizens to buy foreign goods
Bonus Army
WWI veterans marched on DC demanding bonus payments, but Hoover refused to meet them and sent General MacArthur to remove them from public areas
led to riot where 3 ppl died, so American opinion turned against Hoover (no hope of reelection)
First 100 Days
FDR had ambitious agenda to immediately put New Deal into place; ended up putting 15 laws through Congress during time (many relief)
Election of 1932
Hoover (Rep.) vs. FDR (Dem.) - FDR won by landslide b/c ppl wanted new leadership to save them from Great Depression
Emergency Banking Act/Bank Holiday
relief; FDR closed banks for 5 days so they could recover from bank runs, only stable ones could reopen (revived system to make it more stable); urged Americans to redeposit money
fireside chats
FDR used radio chats to communicate with public/explain policies (esp. bank holiday); made ppl feel heard and gave hope that gov would take action
Agricultural Adjustment Act (AAA)
recovery; FDR paid farmers to not grow crops, created production limits, and destroyed crop and livestock surpluses to raise prices
prices started to rise by 1934
Civilian Conservation Corps (CCC)
FDR’s program (relief) that employed 3 million young men, paid them $30 a month to work on conservation efforts (plant trees, fight fires, drain swamps, control floods, build park trails)
Public Works Administration (PWA)
(under FDR, relief) large-scale public works project (built dams, bridges, hospitals, and schools) to provide jobs, reviving economy
Works Progress Administration (WPA)
established by FDR (recovery) to employed men for public usefulness (schools, parks, playgrounds, pools, roads, sewage plants, airfields, hospitals)
included federal arts projects - dramas, concerts, writing (guidebooks, local history books, oral histories), murals, and sculptures - kept American arts alive/vigorous
Court Packing Scheme
after downturn in support, FDR wanted to add 15 more judges to Supreme Court (wanted to appoint ppl who would vote for his policies)
unhappy Congress didn’t agree, but a justice got scared and started voting with FDR
Wagner Act
(under FDR, reform) created National Labor Relations Board (NLRB) - reaffirmed labor’s rights to bargain for wages, hours, and working conditions; to strike; and to arbitration of grievances
Social Security
(under FDR, reform) money given to unemployed, aged, dependent, and handicapped; financed by federal gov and FICA taxes paid by employees
Pearl Harbor
Dec. 7th, 1941; US cut off trade with Japan when Japan wanted US oil, so Japanese surprise attack on American ships in which over 2,000 Americans died
changed public opinion about war - outraged, so wanted to join and get revenge (ex. FDR asked Congress to declare war the day after (“A date which will live in infamy”), and all but one voted yes)
What was US public opinion towards WWII before Pearl Harbor?
generally didn’t want to directly aid, but provided limited help to British through Cash & Carry Act and Lend-Lease Act
US’s WWII military strategy in Europe
invade, beginning on outer edge (North Africa - important b/c imperialism), then move inward through Italy and into Germany
US and Japanese WWII military strategy in the Pacific
island-hopping - go from island to island and take control; goal = have more islands than opponent and get close to opponent’s mainland
Neutrality Acts
Congress banned US from providing weapons/supplies to keep US out of WWII, but implemented Cash & Carry system (will trade, but other countries must pay in cash and transport cargo themselves)
Lend-Lease Act
FDR’s attempt to give more aid to countries in need, particularly Britain (“lend” weapons even tho didn’t expect to get them back)
Selective Training and Service Act
males aged 21-36 must register for military draft
Four Freedoms
during WWII mobilization, FDR emphasized freedom of speech, religion, from want, and from fear
GIs
“Government issue”
War Production Board
changed peacetime industries to war industries, part of Office of War Mobilization (directed by James F. Byrnes)
How did mobilization during WWII affect unions?
less strikes/union activity b/c more unified, feared Axis Powers winning
mobilization efforts during WWII
shortages of goods and rationing - everything possible going overseas to troops
propaganda
women in the workforce
Selective Training and Service Act
“Four Freedoms”
GIs
War Production Board/Office of War Mobilization
popular culture during WWII
everything was about the war: music, baseball (teams must combine), movies, victory gardens (plant own gardens to grow own food), blackouts (when worried about German U-boat activity along shore), Red Cross is huge, rubber/metal drives, etc.
Mexican Americans during WWII
immigrants encouraged to work on Southwest farms to help farmers
Zoot suit riots - btwn American military and young Mexican-Americans men; race-based violence
African Americans during WWII
fought in segregated units (ex. Tuskegee Airmen)
Native Americans during WWII
Navajo Code-Talkers - transmitted messages in native language, which no one could crack
Japanese-Americans during WWII
FDR’s Executive Order 9066 (order of president, not Congress) placed Japanese-Americans in internment camps as early as 1942 b/c fear of spies
racist - didn’t do much to Germans or Italians
their whole livelihoods were gone, suffered poor treatment