Term Five - Chap 26

3 causes of Stock Market crash  

Panic Selling  

• Credit dropped people sold stock and banks ran out of money  

New deal  

• 1^st 100 – relief and recovery  

• CCC 

• WPA 

3 economic trends in the 20s that indicated oncoming crash  

• Inflation and paced wages  

• Saturated market  

• Over production  

Depression 

The great crash  

1928 – soaring stock prices affect individual and corporate investment  

• 1929 – stock market crashes 

• Directly affects 3 million  

• Credit crunch stifles business  

• Business lay off workers  

• Demand for consumer goods declines  

1920s economy  

• Wages went up but prices went up more and people purchased less 

• People purchased durable goods leading to over production  

• Industires kept producing at large rates  

Hoover and Voluntarism  

• Hoover initially seeks solution though voluntary action and private charity  

• Eventually aids farmers and bankers  

• Resists democratic efforts to give direct aid to the unemployed  

Hoover blankets – Newpapers  

Bank Failures  

• Banks had lent too much money  

• People defaulted on loans  

• Banks called in loans on others  

• People withdrew all their savings  

Bonus army  

• Marched on Washington  

• Protested for their WW1 money  

• Shanty towns  

New deal  

Big expectations  

• Democrats control congress  

• FDR given lots of powers  

First 100 days  

• Focus on relief and recovery  

• 15 major laws were passed  

Roosevelt and Recovery  

• National recovery admin  

• Industries formulate codes to eliminate cutthroat competition and ensure labor peace  

• Codes favor big business  

• 1935 – NRA ruled unconstitutional  

• Agricultural adjustment act of 1933 

• Farmers paid to take land out of cultivation  

• Prices increase  

• Sharecroppers and tenant farmers dispossessed  

• Tennessee Valley Authority  

• Provides jobs  

• Stop flooding  

• Provide electric power  

• Government utility  

Fireside chats  

• FDR’s informal talks through radio in which he explained in simple terms the nation’s problems  

• The radio allowed the chats to be broadcasted everywhere  

New deal critics  

• Disappointments among African Americans  

• Some felt it tried to please too many people  

• Some felt it interfered too much  

Father Charles Coughlin  

• Catholic priest with radio program out of Detroit  

• Wanted a new system based on social justice  

• Nation's problems caused by bankers and banks should be controlled by government 

• Antisemitic (extreme hatred of Jews) 

Huey Long  

• Governor of Louisiana  

• Share of wealth program  

• Take money from rich and give to poor  

• Every family gets money  

• Elderly pensions  

• Established minimum wage  

• Assassinated in 1935  

Social security act  

... 

Wanger act  

• Join labor unions  

• Collective bargaining  

• National labor relations board  

Negatives effects of New Deal  

• Women  

• Men got preferred hiring  

• Lower pay  

• Social secrurity didnt include domestic work  

• African Americans  

• Racism and segregation  

• Lower wage scales  

Floyd B. Olson  

Hennepin county attorney  

• Earned a name for himself as stern prosecutor  

• Took on the KKK  

• Controversial censuring of a newspaper  

• Accused of organized crime connections  

Teamsters strike  

• Wanted fair wage, union recognition, and trucking firms 

Floyd of Rosedale 

• Pig trophy exchanged every year MN vs IA 

Died due to stomach cancer 

Q: Which industries and companies were hit hardest? 

• Farming  

• Iron range 70% 

Q: Who is Governor Olson comparable to? 

• Huey Long  

• Established minimum wage  

• Both governors  

• Both died young an unexpectedly  

• Francis Townsend 

• An advocate for the elderly  

• Father Coughlin  

• Saying the government should take over 

End of the New Deal  

Supreme court strikes down new deal  

• Roosevelt comes up with a new plan called the court packing scheme  

• Wanted 15 supreme court justices and he would nominate 6 as they are appointed by the president  

• It would be one guy controlling the whole government because the legislative branch passed all 15 of his exective orders almost immediately 

• A wolf in sheep's clothing – dictator  

Dust storm Damage  

• Okies 

• Farmers headed to the California “promise states” 

• No promises states wanted these people moving into their towns and states  

Pros and cons  

Q: Why run for three terms? 

• Dictatorship  

• War