Unit 6 Review

The Great Depression

• The Great Depression wasn’t his fault, but as he was President, much of the blame fell on him – especially as it got worse and he kept saying things were going to get better soon

Herbert Hoover

• The Great Depression wasn’t his fault, but as he was President, much of the blame fell on him – especially as it got worse and he kept saying things were going to get better soon

• Borrowing money to buy shares on Wall St.; often only 10% down for the amount borrowed – when it came time to pay, and the money wasn’t there, credit dries up

Buying on Margin

• Borrowing money to buy shares on Wall St.; often only 10% down for the amount borrowed – when it came time to pay, and the money wasn’t there, credit dries up

• $15,000,000,000 of wealth disappears in a day; $15,000,000,000 more to evaporate in the month following this; starts the US onto the road to the Great Depression

“Black Tuesday” / Stock Market Crash of 1929

• $15,000,000,000 of wealth disappears in a day; $15,000,000,000 more to evaporate in the month following this; starts the US onto the road to the Great Depression

• Betting on the Stock Market – doing this with borrowed money led to the credit collapse that leads to the Great Depression

Speculation

• Betting on the Stock Market – doing this with borrowed money led to the credit collapse that leads to the Great Depression

• Several years of drought, combined with over-cultivation of agricultural lands in the Midwest, led to this – wind storms blowing away topsoil and burying farmlands with silt

“Dust Bowl”

• Several years of drought, combined with over-cultivation of agricultural lands in the Midwest, led to this – wind storms blowing away topsoil and burying farmlands with silt

• WW1 vets camping out in DC looking for their pension payments early; a violent crackdown on their camps gave Hoover a black eye… in an election year

“Bonus Army”

• WW1 vets camping out in DC looking for their pension payments early; a violent crackdown on their camps gave Hoover a black eye… in an election year

• Taxes on foreign goods coming into the country; then the federal government tries to use these to deal with the Depression, it only makes things worse – especially for farmers; Hawley-Smoot was the highest one ever

Tariffs

• Taxes on foreign goods coming into the country; then the federal government tries to use these to deal with the Depression, it only makes things worse – especially for farmers; Hawley-Smoot was the highest one ever

• Direct financial aid to the poor and needy; Hoover was reluctant to do it

Relief

• Direct financial aid to the poor and needy; Hoover was reluctant to do it

• Bank seizure of homes and farms because people could not keep up with mortgage payments or defaulted on other loans; this happens to almost 1,000,000 farms between 1930 and 1934

Foreclosures

• Bank seizure of homes and farms because people could not keep up with mortgage payments or defaulted on other loans; this happens to almost 1,000,000 farms between 1930 and 1934

• Government-financed building projects – builds up infrastructure and provides employment for construction workers; limited in size under Hoover because the did not want to rack up debt to do it

Public Works

• Government-financed building projects – builds up infrastructure and provides employment for construction workers; limited in size under Hoover because the did not want to rack up debt to do it

• Midwesterners who fled failed farms and tried their luck by heading west towards California; most lived in roadside camps and scratched out a meek survival

“Okies”

• Midwesterners who fled failed farms and tried their luck by heading west towards California; most lived in roadside camps and scratched out a meek survival

• Hoover’s recovery effort – lending money to businesses and banks; it was too small though, and did not achieve the goals it sought

Reconstruction Finance Corporation

• Hoover’s recovery effort – lending money to businesses and banks; it was too small though, and did not achieve the goals it sought

• Shantytowns and ragged villages of ramshackle structures where many homeless lived on the outskirts of major cities

“Hoovervilles”

• Shantytowns and ragged villages of ramshackle structures where many homeless lived on the outskirts of major cities

• They may have lived in “Hoovervilles”, but more often they were on the move, “riding the rails” as they made their way from town to town with only the clothes on their backs

Hobos

• They may have lived in “Hoovervilles”, but more often they were on the move, “riding the rails” as they made their way from town to town with only the clothes on their backs

• Overproduction in the 20’s and tariffs in the 30’s resulted in these dropping precipitously – and fueled the financial collapse of many in the Midwest

Farm Goods’ Prices

• Overproduction in the 20’s and tariffs in the 30’s resulted in these dropping precipitously – and fueled the financial collapse of many in the Midwest

• The idea that people depend on themselves and not expect to need help from others; Hoover thought this idea was best for America’s economic, political, and moral health – the main reason why he doesn’t want to create big government programs

“Rugged Individualism”

• The idea that people depend on themselves and not expect to need help from others; Hoover thought this idea was best for America’s economic, political, and moral health – the main reason why he doesn’t want to create big government programs

• Tells the story of an “Okie” family fleeing the Dust Bowl looking to make a new life in California; its author visited many migrant camps and interviewed real people to research his story

The Grapes of Wrath

• Tells the story of an “Okie” family fleeing the Dust Bowl looking to make a new life in California; its author visited many migrant camps and interviewed real people to research his story

• This is the result of the Crash, and is a big part of what leads to Depression – both credit and confidence collapse and a nasty spiral spreads

“Run” on the Banks

• This is the result of the Crash, and is a big part of what leads to Depression – both credit and confidence collapse and a nasty spiral spreads

• Charismatic personality who persevered through physical adversity to continue his career; was the Governor of New York before getting a promotion in 1932

Franklin Delano Roosevelt (FDR)

• Charismatic personality who persevered through physical adversity to continue his career; was the Governor of New York before getting a promotion in 1932

• In his 1st Inaugural Address, FDR suggested that overcoming this obstacle would pave the way for future recovery

“fear”

• In his 1st Inaugural Address, FDR suggested that overcoming this obstacle would pave the way for future recovery

• The collective name for all of FDR’s proposals and programs designed to combat the Great Depression, using combinations of relief, recovery, and reform efforts that greatly expand the role of the federal government

“New Deal”

• The collective name for all of FDR’s proposals and programs designed to combat the Great Depression, using combinations of relief, recovery, and reform efforts that greatly expand the role of the federal government

• FDR’s 1st act as President was to enact this – closing all of these across the country, sending examiners to judge if they were sound, and rushing them US Treasury notes to cover their balance sheets when the reopened

“Bank Holiday”

• FDR’s 1st act as President was to enact this – closing all of these across the country, sending examiners to judge if they were sound, and rushing them US Treasury notes to cover their balance sheets when the reopened

• Term that describes an unprecedented number of laws written and passed in the 1st 3 months of FDR’s presidency, trying all kinds of things to deal with the economic crisis

“Hundred Days”

• Term that describes an unprecedented number of laws written and passed in the 1st 3 months of FDR’s presidency, trying all kinds of things to deal with the economic crisis

• New Deal reform designed to prevent a repeat of bank collapses after The Crash – the federal government guaranteeing the deposits of citizens in licensed banks

FDIC

• New Deal reform designed to prevent a repeat of bank collapses after The Crash – the federal government guaranteeing the deposits of citizens in licensed banks

• FDR’s weekly radio addresses that kept people informed of the government’s efforts to combat the Depression – FDR’s communication skills help make many feel personally involved in the process

“Fireside Chats”

• FDR’s weekly radio addresses that kept people informed of the government’s efforts to combat the Depression – FDR’s communication skills help make many feel personally involved in the process

• Major relief / recovery measure of the New Deal – major infrastructural programs designed to put construction workers back on the job (they made up about 1/3 of the unemployed)

PWA / WPA

• Major relief / recovery measure of the New Deal – major infrastructural programs designed to put construction workers back on the job (they made up about 1/3 of the unemployed)

• Paying out more money than you have; “Keynesian” economics says that in a financial crisis, the government needs to do this big time to stimulate economic recovery

“Deficit Spending”

• Paying out more money than you have; “Keynesian” economics says that in a financial crisis, the government needs to do this big time to stimulate economic recovery

• Hiring millions of young men to work with the US Forestry Service planting and clearing trees / a relief and recovery effort

CCC

• Hiring millions of young men to work with the US Forestry Service planting and clearing trees / a relief and recovery effort

• Conservative critics on the “right” who said FDR’s New Deal policies were too much like socialism, and that the growth of the federal government was a danger to everyone’s freedom

American Liberty League

• Conservative critics on the “right” who said FDR’s New Deal policies were too much like socialism, and that the growth of the federal government was a danger to everyone’s freedom

• Legislation that divided investment banking from commercial banking, and created the FDIC

Glass-Steagall Act

• Legislation that divided investment banking from commercial banking, and created the FDIC

• Government agency whose job it is to regulate Wall Street and to identify and punish stock fraud and manipulation

SEC

• Government agency whose job it is to regulate Wall Street and to identify and punish stock fraud and manipulation

• Making changes to what are seen as problems; the New Deal goal behind things like Glass Steagall, the FDIC, and the SEC

Reform

• Making changes to what are seen as problems; the New Deal goal behind things like Glass Steagall, the FDIC, and the SEC

• Paying farmers to NOT grow crops, and to destroy surpluses; an effort to lessen supply, increase demand, and turn farm prices around

AAA

• Paying farmers to NOT grow crops, and to destroy surpluses; an effort to lessen supply, increase demand, and turn farm prices around

• Liberal critic of FDR’s New Deal – powerful Louisiana politician who said reforms weren’t going far enough; he formed national “Share Our Wealth” clubs that aimed to heavily tax the rich and redistribute funds to the poor

Huey Long

• Liberal critic of FDR’s New Deal – powerful Louisiana politician who said reforms weren’t going far enough; he formed national “Share Our Wealth” clubs that aimed to heavily tax the rich and redistribute funds to the poor

• This person transformed the role one usually played in that position; actively involved in the FDR administration and pushed the President to be more active in civil rights

Eleanor Roosevelt

• This person transformed the role one usually played in that position; actively involved in the FDR administration and pushed the President to be more active in civil rights

• FDR’s “New Deal coalition” pulled together support from a variety of types of voters, including members of this group that had consistently voted Republican before – but the Depression had hit them especially hard, and they felt Republicans had done too little to help

African-Americans

• FDR’s “New Deal coalition” pulled together support from a variety of types of voters, including members of this group that had consistently voted Republican before – but the Depression had hit them especially hard, and they felt Republicans had done too little to help

• The largest individual federal program today in both cost and the number of people it impacts; this New Deal policy established retirement and unemployment benefits, and relief payments to the poor and disabled

Social Security

• The largest individual federal program today in both cost and the number of people it impacts; this New Deal policy established retirement and unemployment benefits, and relief payments to the poor and disabled

• In 1935, FDR launched another wave of programs and policies designed to boost sluggish economic performance and to address arguments of critics; the WPA and Social Security were part of this

“2nd New Deal”

• In 1935, FDR launched another wave of programs and policies designed to boost sluggish economic performance and to address arguments of critics; the WPA and Social Security were part of this

• Government run corporation that provided hydroelectric power to millions – and still does

TVA

• Government run corporation that provided hydroelectric power to millions – and still does

• This piece of legislation guaranteed workers’ rights to unionize and to collectively bargain for wages and conditions – and required a neutral party to play as referee if labor and employer could not come to an agreement

Wagner Act / NLRB

• This piece of legislation guaranteed workers’ rights to unionize and to collectively bargain for wages and conditions – and required a neutral party to play as referee if labor and employer could not come to an agreement

Germany

• The Great Depression was an international crisis, not just a US one; this country was financially vulnerable before the Depression hit, and suffered from its effects the worst – opening the door for something totally, terribly new…

• This results from FDR scaling back on the WPA and PWA because he thought recovery was happening and he wanted to try and balance the budget; instead 2,000,000 lose their jobs and the economy tanked

Recession of 1937

• This results from FDR scaling back on the WPA and PWA because he thought recovery was happening and he wanted to try and balance the budget; instead 2,000,000 lose their jobs and the economy tanked

• 4 time winner, and for extra bonus he really pissed Hitler off

Jesse Owens

• 4 time winner, and for extra bonus he really pissed Hitler off

• 12 years as FDR’s Secretary of Labor – the 1st women to serve on a presidential cabinet

Frances Perkins

• 12 years as FDR’s Secretary of Labor – the 1st women to serve on a presidential cabinet

• He beat Hitler’s fav Max Schelling in 1938, and Harlem rejoiced over their champ

Joe Louis

• He beat Hitler’s fav Max Schelling in 1938, and Harlem rejoiced over their champ

• A result of the New Deal – a new, active role for the government in mediating economic disputes, and insuring financial protections that prevent rock bottom collapses like in the early 1930’s

“broker state” / “safety net”

• A result of the New Deal – a new, active role for the government in mediating economic disputes, and insuring financial protections that prevent rock bottom collapses like in the early 1930’s

• FDR’s attempt to stop the challenges of constitutionality of his New Deal programs – he instead rallies his critics who accuse him of reaching for tyrannical power

“Court Packing” scheme

• FDR’s attempt to stop the challenges of constitutionality of his New Deal programs – he instead rallies his critics who accuse him of reaching for tyrannical power