Chapter 24
Oct. 24,1929
"Black Thursday." the stock market was dropping
Examine Herbert Hoover's attempts to resolve the economic depression.
"Rugged individualism:" Hoover believed American's and not the government was the key to get America out of the depression. Hoover increased funding to keep Americans at work. He wanted to increase the money supply to save the banks. The Federal Farm Board was created before the stock market crashed. It helped farmers stabilize prices by temporarily holding surplus grains and cotton in storage. In an attempt to directly help the U.S. citizens, Hoover signed the Emergency Relief and Construction Act which was supposed to be a temporary aid for labor and business.
Harry Hopkins
A New York social worker who headed the Federal Emergency Relief Administration and Civil Works Administration. He helped grant over 3 billion dollars to the states wages for work projects, and granted thousands of jobs for jobless Americans.
Bull Market
A period of increased stock trading and rising stock prices.
Debt Moratorium
A suspension on the payment of international war debts. Proposed by Hoover.
Oct 29, 1929
Also known as Black Tuesday, the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its fallout.[2] The crash signaled the beginning of the 10-year Great Depression that affected all Western industrialized countries
Public Works Administration (PWA) of 1933
Also part of the First New Deal and created as a result of the NIRA, it helped build highways and bridges, putting men to work.
Who among the following individuals or groups would most directly oppose the philosophy of the New Deal as explained in this excerpt?
American Liberty League
John Steinbeck
An American author widely known for his comic novels, wrote the Grapes of Wrath
Francis Townshend
As part of Roosevelt's Second New Deal, he wanted the government to give people, ages 60+, over $200 a month, which laid the foundation for Roosevelt's Social Security program.
Marian Anderson
Black opera singer who was refused entrance into the Daughters of the American Revolution's concert hall. As a result, Eleanor Roosevelt resigned from the organization.
John Maynard Keynes
British economist who argued that for a nation to recovery fully from a depression, the government had to spend money to encourage investment and consumption
overproduction
Business growth, aided by increased productivity and use of credit, had produced a volume of goods that workers with stagnant wages could no longer continue to purchase.
margin
Buying a stock by paying only a fraction of the stock price at first, and then borrowing the rest.
Keynesian economics
Called deficit spending, FDR abandoned a balance budget and began borrowing money to pay for his programs. This put the government into a huge debt and halved the total income.
Douglas MacArthur
Chief of Staff of the United States Army during the 1930's, he was called in to help break up the Bonus March on Washington, D.C.
Tennessee Valley Authority
Created by George W. Norris, it was created in 1933 to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley.
Federal Reserve Board
Created in 1935 as part of the Second New Deal, also called the Board of Governors of the Federal Reserve System, FDR established a board of governors to look over the Federal Reserve Banks and with helping implement monetary policy in the U.S.
Which of the following would most likely support a belief that the government was "against the common people"?
Creation of the Reconstruction Finance Corporation
indicator
Describes the crash of the stock market in 1929 not as the fault of the Great Depression, but as a key figure that was a result of so many poor choices by the people and government.
"Fireside Chats"
FDR took his programs to the radio at night, reassuring the American people that prosperity will be restored and the Depression will cease.
Court-Packing Plan
FDR's idea to ensure that New Deal programs were found constitutional; it was not done.
New Deals
FDR's policies for ending the Great Depression
Which of the following most directly supports the author's analysis?
Farm income fell from $11.4 billion in 1929 to $6.3 billion in 1932
deficit spending
Government practice of spending more than it takes in from taxes
"Black Cabinet"
Group of African Americans FDR appointed to key government positions; served as unofficial advisers to the president.
Which of the following was designed to provide long term "job security " for workers?
National Labor Relations Act
National Industrial Recovery Act (NIRA) of 1933
Part of FDR's First New Deal, it authorized the President to regulate industry in an attempt to raise prices after severe deflation and stimulate economic recovery.
Johnson O'Malley Act (1934)
Part of the Indian New Deal of the 1930's, it funded states to provide Indians' health car, welfare, and education; a repayment for all the injustices experienced by the Indians.
The excerpt suggests that Eleanor Roosevelt knew that her positions could most harm her husband's standing with which of the following groups?
Southern Democrats
Recession of 1937
The American economy took a sharp downturn in mid-1937, lasting for 13 months through most of 1938
Which of the following was most directly related to the phrase in the testimony "the necessity for relief for our suffering fellow citizens"?
Twenty-five percent of the workforce was unemployed
Bonus March
WWI veterans marched in protest in D.C. to demand the wages that the government never gave them. As a result, General MacArthur is called in to stop the march.
Eleanor Roosevelt
Wife of President Franklin D. Roosevelt who frequently spoke out against racial injustice. She resigned from the Daughters of the American Revolution when it refused to allow black opera singer Marian Anderson in its concert hall.
Federal Deposit Insurance Corporation
a federally sponsored corporation that insures accounts in national banks and other qualified institutions.
Hoboes
a traveling worker, people who traveled out west and abroad looking for work
Pueblo Relief Act
compensated the Indians for how we treated them, gave them land grants to build their reservations on.
Reconstruction Finance Corporations
created by Herbert Hoover. Agency established in 1932 to provide emergency relief to large businesses, insurance companies, and banks.
Emergency Banking Relief Act
gave the President power over the banking system and set up a system by which banks would be reorganized or reopened.
Federal Farm Board
helped farmers stabilize prices by temporarily holding surplus grain and cotton in storage
speculation
is the practice of engaging in risky financial transactions in an attempt to profit from fluctuations in the market value of a tradable good
Examine the conflicting economic theories that provided the basis for the First and Second New Deal legislation.
the First deal was centered on the redevelopment of banks *(FDR's 3 Rs)*. FDR believed he needed to get the banks back on their feet to improve the economy. the Second deal was centered on *Keynesian economics*, which focused on deficit spending and borrowing from countries. The second deal put us in more debt, and never led to an economic boom.
FDR's 3 "Rs"
*Relief* for people out work, *recovery* for business and the economy, and *reform* of American economic institutions.
Indian Reorganization Act
1934 - Restored tribal ownership of lands, recognized tribal constitutions and government, and provided loans for economic development.
A. Philip Randolph
America's leading black labor leader who called for a march on Washington D.C. to protest factories' refusals to hire African Americans, which eventually led to President Roosevelt issuing an order to end all discrimination in the defense industries.
Father Charles
He was one of the first political leaders to use radio to reach a mass audience, as up to thirty million listeners tuned to his weekly broadcasts during the 1930s. He was forced off the air in 1939.
"rugged individualism"
Herbert Hoover's policy during the Great Depression, he believed it was the responsibility of the individual to pull himself out of the Depression, not the government's.
Hawley-Smoot Tariff
Highest Tariff in history. increased tariff range from 31% to 49% on foreign imports. the Europeans raised their tariffs in retaliation, and this sank the economic further into depression.
Civilian Conservation Corps
Hired young, unemployed people to do restoration projects throughout the country, employed over 3 million people.
Lameduck
Hoover was Called a lame duck president in the period of FDR's election and his inauguration. He had no power
Describe FDR's "First Hundred Days."
In his first hundred days, FDR sent many bills to Congress. Congress passed 15 acts to solve the economic issues. These programs made up the First New Deal. He established a bank holiday, repealed prohibition, talked on the radio, and addressed the needs of unemployed workers. His legislation was called the "alphabet soup programs." It changed the spirit of the American people and inspired hope.
20th Ammendment
Known as the lame duck Ammendment. Shortened the time period between election adn inauguration
Fair Labor Standards Act
Last major reform of the New Deal, it established several regulations on business and interstate commerce, such as minimum wage, overtime pay, recordkeeping, and youth employment standards.
Which of the following most directly addressed "security for capitalist"?
National Recovery Administration
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.
Herbert Hoover
Republican candidate who assumed the presidency in March 1929 promising the American people prosperity and attempted to first deal with the Depression by trying to restore public faith in the community. "rugged individualism."
Margin-call
Required the investor to pay back any loans
Huey Long
Senator of Louisianna. Wanted more programs than what FDR already established. Established the "Share Our Wealth" Society. Nicknamed "The Kingfish". Was assassinated after one month of announcing that he would run for president
repatriating
Sending illegal aliens back to their native lands and giving jobs back to American citizen. The U.S. government began implementing this policy in 1931.
Hoovervilles
Shantytowns made up of dilapidated shacks, and sometimes tents, during the Great Depression. Many people blamed President Hoover for not doing enough during the Depression, and thus, they named many of their predicaments after him.
Indicator
The crash of the stock market was an indicator of the economic condition of the day
Mary McLeod Bethune
United States educator who worked to improve race relations and educational opportunities for Black Americans (1875-1955).
National Labor Relations Act
is a foundational statute of United States labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining for better terms and conditions at work, and take collective action including strike if necessary.
John L. Lewis
leader of the Committee of Industrial organizations (C.I.O.). President of the United Mine Workers Union.
Securities and Exchange Commission
monitors the stock market and enforces laws regulating the sale of stocks and bonds.
Eleanor Roosevelt expressed the most independence from President Franklin Roosevelt and his advisers in her
opposition to racial discrimination
Examine popular critics of the New Deal. What were their criticisms and their alternatives to FDR's programs?
some see the New Deal as a continuation or revival of the Progressive reform movement. Others see it as a third American revolution that went far beyond the earlier reforms. Critics argued that the NIRA, WPA, and Social Security Act redefined the role of government in american society. radical thinkers of the 70s argued that the New deal was a missed opportunity that did not do enough to meet society's needs. liberals criticized that it helped business more than unemployed and poor people. Conservatives criticized that it gave the federal government too much power.
Wheeler-Howard Act
was U.S. federal legislation that dealt with the status of Native Americans
Agricultural Adjustment Act
was a United States federal law of the New Deal era which reduced agricultural production by paying farmers subsidies not to plant on part of their land and to kill off excess livestock.
Hundred Days
was a time in the history of the United States in which Roosevelt planned to put an end to the Great Depression that was thought to have been caused by former President Herbert Hoover.
FDR
was an American statesman and political leader who served as the President of the United States from 1933 to 1945. A Democrat, he won a record four presidential elections. His program for relief, recovery and reform, known as the New Deal, involved a great expansion of the role of the federal government in the economy
Francis Perkins
was the U.S. Secretary of Labor from 1933 to 1945, the longest serving in that position, and the first woman appointed to the U.S. Cabinet
Federal Emergency Relief Administration
was the new name given by the Roosevelt Administration to the Emergency Relief Administration (ERA) which President Herbert Hoover had created in 1932.
"alphabet soup programs"
were the U.S. federal government agencies created as part of the New Deal of President Franklin D. Roosevelt
Bank Run
widespread panic in which great numbers of people try to redeem their paper money.