IV) The Great Depression

What 4 factors led to the Great Depression?

1)The wealth gap 2)Installment buying 3)Failure of the farms 4)Overexpansion of business

What is a tariff, and what did we use them for?

A tariff is a tax on imported goods. We use tariffs to protect our industries, so we could get people to buy our goods

What is the meaning of "alphabet soup"?

Alphabet soup was the name given by many to FDR's new deal. This is because all of the programs had been alphabetized such as FDIC and TVA.

What were the effects when the Stock Market Crashed?

America had been in more debt than it had ever seen (For this time period). America had felt the Great Depression hit them hard.

What did the bonus army do to protest?

At first they went to the capital peacefully protest. Then they were led by General Douglas MacArthur, equipped with weapons into the city. They used Infantry, Cavalry and Tanks.

What is Black Tuesday, and how was it created?

Black Tuesday is the name given to the day on which the stock market had hit it's rock bottom.

What did critics say about the Fair Labor and Standards Act?

Businesses were mad that the government was limiting their power.

What is buying on margin, and how does it work?

Buying on margin was when people would have money and take it to stock broker. The stock broker would take at least 10% and allow you to borrow money from them. You then would proceed to buy a new stock, then the money left over you would combine and it would increase, doubling that amount that you have. Then you would pay back the stock broker. You would then have some in the bank and some in your pocket. Then you would repeat the process, until a point on when the stocks would inflate, as they would be worth more then the company. This made people pay for more than what they needed to for the stock

What did critics say about the new deal?

Critics believed that the New Deal was a socialist program, and that Roosevelt was a tyrant/dictator. They also thought that the New Deal programs we're to costly and didn't end the Great Depression.

What was the Civilian Conservation Corps (CCC) and what was their goal?

Due to the large set of unemployment, this program was intended to provide jobs to young men (ages 18 to 25). These men had done jobs to preserve the environment.

How was FDR able to remain so popular with the American public during the Great Depression?

FDR had attempted in implementing the New Deal, and had used Fireside chats to try and bring hope and confidence to America.

Who was he president during the Great Depression?

Franklin D Roosevelt

Compare and contrast public perception of Herbert Hoover and Franklin Roosevelt during the depression.

Herbert Hoover: Many Americans lost trust in their president. He didn't take criticism very well. When he got criticism, he turned inward and became even more stubborn and in denial about the issues at hand. Didn't want to face the facts that he had failed Franklin Roosevelt: Americans had wanted a change, and a better outlook for their future. They had seen how Hoover hadn't done what he could have in the great depression, leaning more and more towards Roosevelt.

How did Hoover's belief in volunteerism worsen, causing the Great Depression?

Hoover's belief in volunteerism worsened the Great Depression because it utterly failed. He asked the business owners to not fire, keep wages up, and to not cut hours. Instead of passing a law, he hoped that people would do this out of the good of their hearts BASED IT ON MORALITY, NOT AN ACTUAL LAW. This had ended up hurting many because, even though businesses kept wages up for skilled workers, it cut hours and wages for unskilled workers and installed restrictive hiring practices that made it more difficult for under qualified workers

What was Hoover's impression given off from the Bonus Army to Americans?

Hoover's handling of the Bonus Army worsened the Great Depression because people lost trust in their president. He couldn't relate to their pain therefore he came off as a villain.

Hoovervilles

Hoovervilles are named after president Hoover. They were a community of poorly situated living spaces all around. They were named after president Hoover due to the fact that he hadn't taken actions that he could have, making him look poor to most of America.

How did installment buying effect American citizens in leading to the great depression?

Installment buying led to the Great Depression because as the consumer debt skyrocketed, people stopped purchasing consumer goods.

How does Installment buying work?

Installment buying was seen as the best way for consumers to buy more expensive things, because they could pay for things in chunks over time, not all at once. They had only thought this when it first started out.

What was accomplished through the WPA?

It constructed and improved 2,500 hospitals, roads, 5,900 schools, and 1,000 airfields

What was accomplished through the Fair Labor and Standards Act?

It established the minimum wage and maximum hours of a work week. As well as restrictions on child labor, although not completely eliminating it, and gave recognition to labor unions.

What did the The Securities Exchange Act (SEA) do to effect the SEC?

It was created to regulate brokers, exchanges, over-the-counter markets, and to monitor financial revelations.

What does Hoover Dam mean?

It was the name given to President Hoover through his presidency because he was failing at his job. Putting America into a deep whole then they were already in.

How did the unfolding of the Bonus March show the desperation of many Americans and continue to damage Hoover's reelection chances?

Many Americans lost trust in their president. They thought it was very disrespectful towards WWI veterans as the army killed two men in the Bonus army through tear gas and bayonets. Especially since they were unarmed and had previously fought for the country.

What happened to the opinion of Hoover after the bonus army?

Many Americans lost trust in their president. They thought it was very disrespectful towards WWI veterans.

How was the Federal Deposit Insurance Corporation (FDIC) criticized?

Many people believed that people that FDR did not go far enough. Some had hoped that he would nationalize the banks, which have placed them under the control of the national government.

Was the New Deal necessary?

No the new deal wasn't necessary. It didn't solve the problems of the great depression. The problems had been solved with he events occurring furring WWII.

What happened and was proven during the Election of 1932?

President Franklin D. Roosevelt had won to his competitor Hoover by a long shot. President Hoover was shown that he had failed to help America during the great depression, leading them to want Roosevelt to help America get back on it's feet.

What are Fireside Chats?

Roosevelt had made speeches on the radio answering questions from the public, and addressing conserving topics. This brought hope and confidence into the live of many.

What did supporters say about the new deal?

Supporters believed FDR was leading them on the road to recovery. As well as he brought hope and confidence to many, along with evolving the federal government to work on the needs of the American people.

What was criticism about the Agricultural Adjustment Administration (AAA)?

Supreme court declared this program to be unconstitutional. It had then been shut down.

What was the Agricultural Adjustment Administration (AAA) and what was their goal?

The AAA was used to increase and improve the prices for the agricultural issues. Items included paying farmers to not produce as much, including major government intervention.

What did the bonus army want?

The Bonus Army was a group of poor veterans from World War One who wanted their bonus certificates early.

What is the Court Packing plan? What did Roosevelt think about it compared to his critics?

The Court Packing Plan was the plan Roosevelt wanted to use to "run the government". It would allow him to put 6 new supreme court justices in place when others had served for 10 years, 70 years old and didn't retire in 6 months.

What did critics say about social security?

The FICA takes money away from worker's short term paycheck, and it was seen as a form of socialism.

What was the main goal of the Fair Labor and Standards Act?

The FLSA had the main goal of placing major regulation on big businesses to benefit the workers.

What was the Hawley-Smoot Tariff, and what purpose did it serve?

The Hawley-Smoot tariff had raised tariffs on industrial and agricultural trade. Americans weren't buying others goods, so they had created tariffs. No goods were bough, so production stopped leading to cuts in jobs.

What is the main concept of the Lend-Lease Act?

The Lend-Lease program was created to "lend" warfare item stop our allies so they could protect us as we prepared economically and emotionally for war.

What 2 acts were passed to assist the Securities Exchange Commission (SEC)?

The Securities Exchange Act (SEA) The Public Utility Holding Company Act

What is the Works Progress Administration (WPA) and what was their goal?

The WPA had been created to employ men quickly to assist in unemployment.

How did the failure of the farms effect American citizens in leading to the great depression?

The failure of the farms led to the Great Depression because an entire sector of the United States economy collapsed. Farmers had bought new items, and then were unable to pay back all of their debt. This was due to debt, taxes, and a drop in crop prices.

What was criticism about the Tennessee Valley Authority (TVA)?

The government had been creating businesses, making competition between them and privately run businesses. This had also been seen as socialism, as Roosevelt had been seen as tyrant, or a dictator.

What is the Securities Exchange Commission (SEC) and what was heir goal?

The main purpose was to regulate the stock market and so it would never crash to the same level that it had in the past.

What is the New Deal?

The new deal was a set of programs set up by Teddy Roosevelt in an attempt to help America recover from the Great Depression.

How did the New Deal impact the American depression and the American future?

The new deal was thought to help America get out of the Great Depression, but instead it had put us into more debt.

How did overexpansion of business effect American citizens in leading to the great depression?

The over expansion of business led to the Great Depression because companies ultimately fired millions of employees. Workers had either been fired, or their pay had been cut. Either way, they could afford to buy new items because they wouldn't have enough money. This led to businesses going under.

What was the main goal of the (HOLC) Home Owners Loan Corporation?

The purpose of the Home Owners Loan Corporation was to create a way to decrease the amount of foreclosures by assisting citizens in paying their mortgages.

What is the purpose of the Social Security (FICA)?

The purpose of the Social Security Act was to provide the necessary resources to those in need

What was the Federal Deposit Insurance Corporation (FDIC) and what was their goal?

The purpose of this program was to guarantee banking deposits by creating the GLASS-STEAGALL BANKING REFORM ACT. This had insured an individual's savings up to $5,000 to assist in reaction to the bank failures.

How did the wealth gap effect American citizens in leading to the great depression?

The wealth gap had created a larger gap between the upper and lower class. Because the rich weren't buying items, and the poor were borrowing money, there had been no middle class to keep up with consumerism.

What was criticism given to the SEC?

The wealthy big business owners were opposed to this because they saw this as well taking away their profit and power.

What was accomplished through social security?

This act was the first time that the government provided aid for those who were unemployed and allowed workers who were 65 years or older to qualify for retirement.

What was criticism about the Civilian Conservation Corps (CCC)?

This didn't make a huge dent in the amount of unemployment that there was at the time.

What did critics say about the WPA?

This had been discriminatory because it had been unfair, making men look better than women and African Americans as they had been taken as a second choice compared to men.

What was the Tennessee Valley Authority (TVA) and what was their goal?

To create dams to provide electricity to farmers through the Tennessee Valley Area.

What did WWII do to help solve problems from the great depression?

WWII had brought the industries into full motion, as they were continuously manufacturing for war. Due to this increase in production, more workers were needed (increase in unemployment) and they had received higher wages.

What is the concept of Deficit Spending?

When you are in debt and continue to spend money.

What did The Public Utility Holding Company Act do to effect the SEC?

was meant to break up unnecessary large companies into smaller based companies. It also was to monitor transactions, making professional brokers, limiting buying on margin, and cutting off inside trading.