GD and New Deal
Rural/agriculture economy to urban/industrial economy
Production of consumer goods
Speculation
Buying on the margin
Black tuesday - October 29, 1929, Stock Market Crash
Causes of GD
Overproduction and underconsumption, No assistance for farmers - farmers had more food than buyers, overproduction led to debt
Irresponsible stock trading - buying on the margin (popular practice to buy stocks on credit)
GD exposed failure of Laissez Faires economic policy, Warren G. Hardings “return to normalcy”
Herbert Hoover believed solution was private charities not government intervention, Hoovervilles
Global Economic Failure - european economies relied on American investment and loans to rebuild post-WW1, smoot hawley tariff made it worse
US became a limited warfare state, FDR won election big believer in gov intervention
What activity did electric appliances and other goods marketed in the 1920s fuel?
consumerism
President Coolidge's decision to reduce federal regulation of business was an attempt to reverse what trend?
Progressivism
How did stock speculation endanger the economy?
It made companies seem like they were more valuable than they really were.
What is inflation?
when a nation prints money just to put it in circulation, and that money loses value
How did the slowdown in steel production impact the entire economy?
It started a domino effect that led to slowdowns in related industries, which created unemployment, which affected sales
What caused banks to run out of money during the Stock Market Crash of 1929?
Their customers could not repay their loans.
Which programs illustrate Hoover's desire to have industries help themselves?
the Federal Farm Board and the National Credit Corporation
Which was an example of a public works program?
Hoover Dam
What is the main reason unemployment rates were higher for black Americans than for white Americans?
racial discrimination in hiring and layoffs
What were Americans most worried about by 1932?
The government was powerless and society could collapse.
What happened in 1932 that had never happened in a presidential election before?
More people switched parties to vote than ever before.
What made FDR's win in 1932 a landslide?
More people voted than ever before, and FDR won more of those votes than anyone before ever had.
What made the photo of the Migrant Mother so powerful?
It made people feel sympathy for the migrants.
Which of these activities doomed the Plains to soil erosion?
removing the sod
What was the "First Hundred Days"?
roughly the first three months of FDR's presidency
Which program was most successful in meeting the goal of helping rural Americans in the long term?
the Tennessee Valley Authority
How did FDR try to move Americans out of their isolationism?
He insisted that they had a role to play in world affairs.
Where did FDR put the blame for causing the Great Depression?
on bankers, stockbrokers, and big business owners
How would FDR's court-packing scheme have changed the Supreme Court?
It would have expanded the Court by allowing the president to appoint new justices when existing justices turned 70.
What New Deal program got extra funding to continue and expand during the Recession of 1937-1938?
the Works Progress Administration (WPA)