Chapter 25 - The Great Depression

What happened on Oct. 29, 1929?

"Black Tuesday" - the day of the stock market crash - value of stocks plummeted $14 billion

What happened to the US economy in 1937-1938?

A sharp recession struck the country in late 1937 and 1938. The New Deal programs of 1935 had stimulated the economy, prompting Roosevelt to begin to scale back relief programs. New payroll taxes took $2 billion from wage earners' salaries to finance the Social Security pension fund. This would not have hurt the economy if the money was actually returned to retirees and no pensions were to be paid until 1941. Once again, the economy became starved for money, and once again the stock market crashed. By March 1938, the unemployment rate had soared to 20 percent.

What famous comic book debuted in 1938?

Action Comics debuted in June of 1938, which is when Superman appeared.

Who was the popular folk singer of the 1930s?

Woody Guthrie of Oklahoma. In 1940, he wrote "This Land is Your Land."

What was Roosevelt's court packing plan about? Why did he want to accomplish this? Did it affect his popularity?

Roosevelt asked Congress to give him the power to appoint one new Supreme Court justice for every member who was over the age of 70 and who had served for more than 10 years. His stated reason was the current justices were too old and feeble to handle the large volume of cases. But his real purpose was to prevent the conservative justices on the court from dismantling his New Deal. It affected his popularity negatively by infuriating many previous New Deal enthusiasts. page 689

Who was Marian Anderson?

She was a black opera singer who was not allowed to perform in the concert hall of Daughters of the American Revolution. So Eleanor Roosevelt resigned and pressured the federal government into granting permission for Anderson to sing on the steps of the Lincoln Memorial. On Easter Sunday in 1939, 75,000 people gathered to hear Anderson and to demonstrate their support for racial equality.

What was the CCC? How many people did it employ?

The Civilian Conservation Corps put more than 2 million single young men to work planting trees, halting erosion, and otherwise improving the environment.

How did the Federal Reserve board intensify the severity of the stock market crash?

The Federal Reserve curtailed the amount of money in circulation and raised interest rates, thereby making it more difficult for the public to secure. This tight money policy was a mistake. The economy needed the opposite: an expanded money supply, lower interest rates, and easier credit. This would have allowed debtors to pay their creditors. Instead, the Federal Reserve plunged an economy starved for credit deeper into depression.

What finally brought the U.S. out of the Great Depression?

The Great Depression ended and prosperity was restored at the end of World War II. Sharp reductions in spending, taxes, and regulations helped.

What was President Roosevelt's first order of business in dealing with the depression?

The first order of business was to save the nation's financial system.

How many electoral votes did Hoover receive in the 1932 election?

only 39.6 percent of the popular vote and only 59 of 531 electoral votes. sucks to suck. haha

What does buying on "margin" mean?

only putting up some of the money and borrowing the rest from brokers and bankers (loan)

What was FDR stricken with at age 39?

polio and lost the use of his legs

Identify the reasons the Great Depression occurred.

speculation lead to the crash of the stock market and buying on margin

What did Hoover declare in August of 1928?

"We in America today are nearer to the final triumph over poverty than ever before in the history of any land." A little more than a year later, the Great Depression struck. smh.

How many pieces of legislation did FDR persuade Congress to pass in the first 100 days?

15 major pieces of legislation to help bankers, farmers, industrialists, workers, homeowners, the unemployed, and the hungry

What did the Hawley-Smoot Tariff Act of 1930 do?

Also known as the Tariff Act of 1930, it accelerated economic decline abroad and at home. It raised tariffs (taxes) on not only 75 agricultural goods, but also 925 manufactured products. Along with the tight credit policies of the Federal Reserve, this helped weaken international trade.

During the 2nd New Deal, what comprehensive social welfare program did FDR persuade Congress to pass?

During the second New Deal, the Social Security act required states set up welfare funds from which money would be disbursed to the elderly, poor, the unemployed, unmarried mothers with dependent children, and to the disabled. It also enrolled Americans in a pension program that guaranteed them a steady income upon retirement.

When was Franklin Roosevelt elected president? How many terms did he serve?

FDR was elected in 1933; he served three complete terms and won a fourth term

What popular personality was known as the "radio priest?"

Father Charles Coughlin - appealed to anxious middle-class Americans and once-privileged groups of workers who believed that middle-class status was slipping from their grasp.

Which factors contributed to the depth and length of the Depression?

Federal Reserve Board worsened crash by raising interest rates, Hawley-Smoot Tariff accelerated economic decline by damaging foreign trade, and inequality of income distribution depressed consumer demand and slowed recovery.

Appointed by FDR, who was the first female cabinet member in US history?

Frances Perkins - Secretary of Labor under Roosevelt

What was the best-selling novel in 1939?

Grapes of Wrath by John Seinbeck. It was an epic tale of an Oklahoma family's fortitude in surviving eviction from their land, migrating westward, and suffering exploitation in the "promised land" of California.

What did FDR promise for the American people?

He promised, "a new deal for the American people."

What was President Hoover's position on whether or not the government should provide relief to its citizens?

Hoover was uncomfortable with the idea that the government was responsible for restoring the nation's economic welfare.

Who was the organizer of "Share the Wealth" societies?

Huey Long? pg 673

Who were the commanding military officers in charge of dispersing the Bonus Army?

In July, federal troops led by Army Chief of Staff Douglas MacArthur and 3rd Cavalry Commander George Patton attacked the veterans' encampment, set the tents and shacks ablaze, and dispersed the protesters.

What was FDR's policy for dealing with Latin American countries known as?

Mexican Repatriation - secretary of labor William Doak planned to deport illegal Mexican aliens to Mexico. By 1935, 500,000 Mexicans had returned to Mexico.

What state was FDR governor of before becoming President?

New York

What were "fireside chats"?

On the second Sunday after his inaugural, he launched a series of radio addresses known as "fireside chats," speaking in a plain, friendly, and direct voice to Americans throughout the country.

What did the New Deal accomplish? Did it restore prosperity to the American economy?

The New Deal controversy inspired millions of Americans to vote and go to the polls on a variety of topics. Northern factory workers, farm owners, European ethnics, and middle-class consumers were among the groups that benefited most.

What was Hoover's RFC?

The Reconstruction Finance Corporation - created in 1932, it was to make $2 billion available in loans to ailing banks and corporations willing to build low-cost housing, bridges, and other public works.

How did the WPA help out with the nation's unemployed?

The Works Progress Administration was responsible for building and improving thousands of schools, playgrounds, airports, and hospitals. WPA provided jobs to approximately 30% of the nation's jobless as they were put to work raking leaves, cleaning streets, and landscaping cities.

What was the Bonus Army? Why did they protest? What did they want?

They were army veterans who marched on Washington D.C. in 1932 to lobby economic relief but who were rebuffed by Hoover. Congress authorized a $1000 bonus for First World War veterans that would mature in 1945; however, the veterans wanted them immediately. The House of Representatives agreed, but the Senate turned them down. Hoover refused to meet with them.

What were hoovervilles? Why were they called this?

They were towns made of makeshift shelters in the United States for the homeless. They were named after President Hoover after he refused to help them.