Great Depression & New Deal

The Dust Bowl

(1930--1940) The Dust Bowl targeted the great plains; specifically Oklahoma, Texas, Kansas, Colorado and New Mexico. These areas were faced with high winds that picked up the loose dirt from over-farming. These strong storms ruined any trace of remaining agriculture in the area. The destruction of land ultimately plummeted any form of economic stability famers had. they faced debt and poor living conditions due to the dust storms Causes of the storms: over plowing with new technological innovations (i.e. plow) high demand for wheat = over farming = loose dirt Government Response: New Deal Roosevelt issued the Soil Conservation Service (1935) to help out the farmers and their recovery The Dust Bowl made people move westward towards California migration westward to escape the drought, horrible weather conditions, and debt migrated westward to seek shelter

Tariffs

1930 The Tariff Act of 1930 a.k.a Smoot-Hawley Tariff created by Senator Reed Smoot and Representative Willis C. Hawley It was known as the highest tariff in American history This tariff increased the charge on manufactured and agricultural goods. It also increased the tax on imported goods People were led to believe that this tariff worsened the Great Depression Originally created to protect farmers and their crops from foreign competition protection for domestic farmers The creation of this tariff ultimately ruined trade with foreign/European nations. this hinders the American economy and worsens the Great Depression because America is stuck with high tariffs with no one to trade to. Created during Herbert Hoover's presidency Hoover campaigned under the platform of raising agricultural tariffs to help farmers financially.

Social Security Act:

1935 Government created a federal insurance program based off of people's taxes and their jobs Once at the age of 65, people would receive their money (pension) monthly People who were dependent on others for survival would also receive money: disabled unemployed mothers with children with special needs influence came from Charles Townsend

Court Packing Plan:

1937 Roosevelt's plan in "reforming" the Supreme Court Roosevelt decided that every justice who was older than 70, would receive an additional justice. Roosevelt did this as a way of justifying why many of his New Deal propositions were declined by the Supreme Court Roosevelt was led to believe that the older justices were "not up to date" with modern times and societal needs Roosevelt's Court Packing Plan was ultimately rejected by the Court Court felt FDR's plan was restricting the court's independence. This plan would have allowed FDR to appoint 6 new additional justices Roosevelt's decisions on who should be in court

Fair Labor Standards Act:

1938 FLSA Improved the working environment for laborers created working hours (maximum work week would be 40 hours) set up specific minimum wages (of 40 cents an hour) made requirements in regards to premium overtime (no more than 20 hours) established minimums for payroll as well created child labor restrictions for those under 16 years of age demonstrates how government is taking workers and working environment into consideration. Part of the New Deal FLSA ultimately set up a series of regulations in regards to business and interstate commerce in hopes of bettering laborers working environme.

Lame Duck Amendment:

20th Amendment to the Constitution ratified in 1933 Shortened the time in between presidents from 13 months to 2 months In 1932, the duration between presidents (Hoover→ FDR) faced an even worse economy (from November to March). it was because of this incident that this amendment was created

Bank Holiday

Also known as "Emergency Banking Act." Plan: government would examine finances of closed banks to make sure they were economically sound to reopen for the public. due to the stock market crash and the frantic people looking for their lost money, Roosevelt enacts this "Holiday" (temporary closing of banks) to make sure that does NOT happen again. Change in Government: gave Roosevelt power over transactions in credit, currency, gold and silver Public's reaction: Public was happy that government was actually responding to their cry for help relieved US economy People grew more trust in banks

Bonus Army

An army of unemployed vets who wanted to have their money now. They marched through Washington, D.C demanding the government to give them their bonuses. Hoover did not respond peacefully; he issued law enforcement to use teargas and tanks to breakup the march. Shows how Hoover did not treat his military well creates this precedent of poor relationship between presidents and military.

Stock Market Crash

Before October of 1929, the stock market had reached its high in August of 1929. During this high, people greatly over speculated the market. During this time, production decreased, unemployment increased, and the stocks began decreasing (losing value). Also, low wages, debt, loans, and overproduction of consumer goods, led to the crash. On October 29, 1929, investors lost billions of dollars ***This is was the day of the actual Stock Market Crash*** This crash hurt a widespread of people because so many individuals overspeculated the market and invested into the market.

Father Coughlin:

Catholic Priest From Michigan Anti-New Deal anti- Semitic, fascist, and demagogic He was shut down by the Catholic Church because he was broadcasting his anti beliefs on the radio Anti-Roosevelt Shows opposing beliefs during this time period NOT everybody was Pro-Roosevelt believed in "evil conspiracies" from FDR and his administration

Fireside Chats:

During Roosevelt's presidency, he used "Fireside Chats," as a way to connect to the average American citizen Roosevelt spoke directly to the people with the use of the radio He used these chats as a way to include the Americans with all the problems and issues he was dealing with he "talked out" problems → increased confidence As opposed to Hoover's isolation from the common-folk, Roosevelt's talks made the people feel like the government was doing something for them.

Eleanor Roosevelt

FDR's Wife Big supporter of women's rights and general civil rights activist Despite the fact that FDR's New Deal allowed for women to get paid less than men, Eleanor fought for better rights for women Eleanor also advocated for better living conditions and equality for African Americans Demonstrates Eleanor's progressive mindset She used her high authority position to let the public know the government was on their side. First outspoken first lady

Federal Housing Administration:

FHA 1934 A government agency that regulated and stabilized the housing and mortgage market. this agency insured loans from banks and private lenders during the process of building and buying homes. The administration was created in hopes of improving the conditions and trust within the housing market The main goal of administration was to better the economy (have people buying and selling) by insuring mortgage loans. ultimately gives people the trust they need when buying and selling in housing market.

FDIC

Federal Deposit Insurance Corporation an agency part of the federal government that regulates banks accounts this corporation gave insurance to banking accounts in 1930s, their insurance went up to $5,000 This agency ultimately allowed the public to have more trust in banks

The New Deal

First New Deal → (1933) Second New Deal → (1935) Roosevelt's attempt in recovering social, political, and economical aspects of country by using government money to aid the recovery process. a series of government programs to get the government involved with country and the problems that needed to be addressed "New Deal," receives this name as an analogy to a "New Deal" of cards during card game. everybody was given new hand to play shows Roosevelt's values and campaign platform. shows Roosevelt's persistent nature to keep finding ways to resolve this Great Depression.

Election of 1932

Hoover- republican candidate campaigned under the platform of charity unions should not strike free enterprise high protective tariffs (domestic market) pensions for vets FDR- democrat candidate campaigned for his "New Deal" repeal of prohibition aid for unemployment cuts in government spending 3 R's relief recovery reform optimistic people tired of Hoover they lost hope in Hoover due to the Great Depression occurring during this presidency with little to no attempt from Hoover to resolve the economic issues during this time, people were excited to vote in new man, especially since FDR had a proposed solution. RESULT: FDR wins (42 states to 6) (59% to 41% popular vote)

Wagner Act:

July 5, 1935 established fit relations within the working environments relationships amongst unions and employers Labor Legislation Part of the New Deal Issued by R.F Wagner Created the National Labor Relations Board. allowed workers and employers to reach agreements in the working environment "bargain collectively"

Huey Long:

Louisiana Senator 1928--1932 Nickname: Kingfish "every man a king" believed in redistribution of wealth Democrat criticized the wealthy Anti-New Deal Long and Coughlin shared similar beliefs Devised a plan known as "Share the Wealth" "Share the Wealth" planned on giving $5000 to families He was assassinated 1935 Depicts opposing "solutions" to the Great Depression

The Great Depression

Occurred after the crash of 1929. This leads to high unemployment rates, bank failures, and overproduction of consumer goods. People blame Hoover Administration for the Great Depression Causes of the Great Depression stock market crash (1929) over speculation of market bank failures overproduction of consumer goods high unemployment buying on credit It is because of the Great Depression that Roosevelt gets elected and creates his New Deal programs.

Black Tuesday

Oct. 29th, 1929 the value of the market falls by end of Oct., <$30 billion was lost because of the fall of stock market, people rush to banks to take whatever money they have out banks did not have their deposits since stock markets are internationally connected, Black Tuesday affected other countries (ripple effect) fall of American economy hurts other economies dependent on one another

Good Neighbor Policy

Part of Hoover's response to the Great Depression He encouraged the wealthy to be charitable to those who were less economically successful. This idea of neighbors giving loans to their neighbors, inviting in troubled neighbors to dinner ect. problems arise with this response: temporary fix gap between rich and poor is big, that the wealthy can not give enough to help. unrealistic

Securities and Exchange Commission (SEC)

Part of the New Deal 1934 The goal of the (SEC) was to protect people from dishonesty (fraud) in the stock market. The (SEC) would provide reparations (repayments) in the stock market Ultimately regulated the stock market so stock market crashes like the one in 1929 would not occur again. in hopes of alleviating people's panic during times of crash in market. (SEC) was FDR's attempt in making the public trust the stock market again

Migration

Throughout the 1900s, people began migrating to midwest to seek financial success and escape from the overpopulated and polluted cities. Then, as the dust bowl stormed in, and ruined the land these farmers made a living off of, people began migrating even more west; now towards California. Migration plays a big role in people's needs and wants during that time period. escape the constraints and poor conditions find wealth, food, jobs etc. about 200,000 people migrated to California after the Dust Bowl

3 R's (Relief, Recovery, Reform)

a plan devised by President Roosevelt in hopes of relieving the Great Depression Relief help those recover who were greatly affected by the Great Depression Recovery improve the economy and recover the "broken" systems Reform improve aspects of society and government that allowed the depression to occur and worsen 3R's shows the public that FDR cares about them and is determined to resolve the problems the Depression had created Encouraged people to believe the government was on their side.

Tennessee Valley Authority:

established in May of 1933 part of the New Deal an agency that was created to protect the people in the Tennessee Valley area (7 states around the Tennessee River Valley) from floods the agency provided electric power and flood control helped decrease the unemployment rate gave people job opportunities to build dams, work at electric power plants, produce fertilizer and control the flooding. alleviated the poverty line in TN area (especially since this was a very poor area) gave people job opportunities and encouraged people to be part of community

Charles Townsend:

he believed in having economic stability/security for the elder citizens retired physician from Long Beach, CA He wanted the elderly to have security in the economy, so he created a plan for them to have that stability (Townsend Plan) 2% federal sales tax, which would contribute for a fund for those who were over the age of 60. over 60yrs. would get $200 a month He believed his Townsend Plan would resolve the Depression FDR considered Townsend proposition and used it in his Social Security system Shows FDR's ability to change and solution finding

Buying on Margin

it is when a stockbroker allowed a person to borrow most of the cost of the stock through loans. ex: person could buy a $10,000 stock with $5,000 other $5,000 was loan from stockbroker Effect: made people lose concept of money over-speculation if stock fell through, stock broker would call for a margin call, and that created debt because that individual would have to repay the loan all at once.

Overproduction

overproduction of consumer goods was one of the causes for great depression and stock market crash. overproduction of resources selling at low prices farmers were not making money factory workers were not making money Because of WWI, farmers were overproducing to make money off of Europeans as well BUT... once WWI ended, country was left with overproduction of consumer goods this influenced farmers to take out loans and they fell into great debt

Hoovervilles

shantytowns that were built by impoverished American citizens. People named their "cardboard" towns "Hooverville," during the 1930s. It was a way of showing Hoover that it was his fault for the Depression.