Unit 6 US History

The Great Depression

The economic crisis beginning with the stock market crash in 1929 and continuing through the 1930s

Causes of the Great Depression

Credit , Margin Buying/Over-Speculation, Distribution of Wealth

Black Tuesday and Black Thursday

Many investors began to sell their stocks because of rising interest rates (cost of holding debt) and prices sank to the new low because investors sold 16 million shares in stocks.

Banking Crisis

Stock Market crash caused banks to lose money.

Business Failure

Because banks were closing, businesses lost money and customers.

GNP decreased in half (from $103B to $56B)

Protectionism

US raised tariffs (Hawley-Smoot Tariff of 1930) to protect domestic industries

Isolationism

US tried to isolate from the rest of world, which hurt everyone.

Why did the Dust Bowl happen?

Drought and over farming

Hoover's Response to the Great Depression

Hoover took little action because he felt that the gov't would gain too much power if it got involved; he left it up to businesses and encouraged them to not fire their workers; took greater action when he realized that people were doing really bad so he started programs of gov't aid such as soup kitchens and public work jobs

Roosevelts goals after the Great Depression

He created a bank holiday to restore public faith in banks; he ended prohibition so that the government could tax the sale of alcohol and raise more money; he set up government agencies to help with relief efforts. He added many policies to get past the hard time.

Brain Trust

Bipartisan advisors to help fix the economy. Included first female Cabinet Member in US History (Frances Perkins - Secretary of Interior)

Fireside Chats

Weekly radio speeches. Meant to restore nation's confidence in the government.

Hoover Dam

The dam would tame the flood-prone Colorado River southeast of Las Vegas―protecting cities and farms, generating cheap electricity to supply power to homes and industry, and providing work for thousands who desperately needed jobs.

Federal Deposit Insurance Corporation

The government agency that insures customer deposits if a bank fails

Tennessee Valley Authority

A relief, recovery, and reform effort that gave 2.5 million poor citizens jobs and land. It brought cheap electric power, low-cost housing, cheap nitrates, and the restoration of eroded soil.

Civilian Conservation Corps

New Deal program that hired unemployed men to work on natural conservation projects

Works Progress Administration

New Deal agency that helped create jobs for those that needed them. It created around 9 million jobs working on bridges, roads, and buildings.

Social Security Act

(FDR) 1935, guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health

Fair Labor Standards Act

1938 act which provided for a minimum wage and restricted shipments of goods produced with child labor

Wagner Act

1935, also National Labor Relations Act; granted rights to unions; allowed collective bargaining

Agricultural Adjustment Act

Gave farmers money to reduce crop size to reduce production and bring up the value of crops

Federal Emergency Relief Administration

Relieved household unemployment by creating new unskilled jobs

National Recovery Administration

Enforced codes that regulated wages, prices, and working conditions

Securities and Exchange Commission

Monitors the stock market and enforces laws regulating the sale of stocks and bonds

Conservatives thoughts of the New Deals

"Too much"

Government is becoming too powerful, because everyone is over-reliant on them.

Liberals thoughts of the New Deals

"Not Enough"

FDR saved banks only to help big business, not the poor.

Needs to be less of a disparity of income.