Chapter 12: The Great Depression

Stock Market Crash, 1929
On October 24, 1929, panic selling occurred as investors realized the stock boom had been an over inflated bubble. Margin investors were being decimated as every stock holder tried to liquidate. Millionaire margin investors became bankrupt instantly, as the stock market crashed on October 28 and 29.

Hawley-Smoot Tariff, 1930
Congressional compromise serving special interest, it raised duties on agricultural and manufactured imports. It may have contributed to the spread of the international depression.

Reconstruction Finance Corporation, 1932
Created under the presidency of Herbert Hoover, was designed to give out loans to banks, railroads, and monopolistic companies in order to pump money back into the economy during the years of the Depression.

Bonus Army, 1932
group of jobless World War I veterans who came to Washington to lobby Congress for immediate payment of money promised them in 1945; Hoover opposed payment, and when he used the U.S. Army to drive the veterans out of the capital, he was portrayed as cruel and cold-hearted.

Glass-Steagall Act of 1932
Established the Federal Deposit Insurance Corporation (FDIC) which provided federal insurance for individual bank accounts of up to $5,000, reassuring millions of bank customers that their money was safe…also required banks to act cautiously with their customers’ money

Federal Home Loan Bank Act, 1932
Lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.

Twentieth Amendment, 1933
It swept away the lame duck session of Congress and shorted by six weeks the awkward period before inauguration.

First New Deal (First Hundred Days), March 4-June 16, 1933
In Roosevelt’s first 100 days, he passed the Agricultural Adjustment Act, the Federal Emergency Relief Agency, and more; an active presidency beginning with many relief programs for Americans

Twenty-first Amendment, 1933
Passed February, 1933 to repeal the 18th Amendment (Prohibition). Congress legalized light beer. Took effect December, 1933. Based on recommendation of the Wickersham Commission that Prohibition had lead to a vast increase in crime.

Emergency Banking Relief Act (Bank Holiday), 1933
gave the President power over the banking system and set up a system by which banks would be reorganized or reopened

FDIC, 1933
Federal Deposit Insurance Corporation; The U.S. corporation insuring deposits in the U.S. against bank failure. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices; insures accounts in national banks and other qualified institutions

CCC (Civilian Conservation Corps), 1933
1933, Hired 3 million young men to work in government national parks. Most popular New Deal program, Relief/Recovery

PWA, 1933
public works administration; Received $3.3 billion appropriation from Congress for public works projects.; It built large-scale public works such as dams, bridges, hospitals, and schools. Its goals were to spend $3.3 billion in the first year, and $6 billion in all, to provide employment, stabilize purchasing power, and help revive the economy.

AAA, 1933
Agricultural Adjustment Act – paid farmer to limit their crop production to correct for overproduction; Protected farmers from price drops by providing crop subsidies to reduce production, educational programs to teach methods of preventing soil erosion.

TVA, 1933
Tennessee Valley Authority; Federal government build series of dams to prevent flooding and sell electricity. First public competition with private power industries; a federally owned corporation in the United States created by congressional charter in May 1933 to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley, a region particularly affected by the Great Depression.

FERA, 1933
Federal Emergency Relief Administration (FERA) was the new name given by the Roosevelt Administration to the Emergency Relief Administration (ERA) which President Herbert Hoover had created in 1932. FERA was established as a result of the Federal Emergency Relief Act and was replaced in 1935 by the Works Progress Administration (WPA).
FERA’s main goal was alleviating household unemployment by creating new unskilled jobs in local and state government. Jobs were more expensive than direct cash payments (called “the dole”), but were psychologically more beneficial to the unemployed, who wanted any sort of job, for self-esteem, to play the role of male breadwinner.
Distributed millions of dollars of direct aid to unemployed workers.

NIRA & NRA, 1933
National Industrial Recovery Act: Title I was devoted to industrial recovery, and authorized the promulgation of industrial codes of fair competition, guaranteed trade union rights, permitted the regulation of working standards, and regulated the price of certain refined petroleum products and their transportation. Title II established the Public Works Administration, outlined the projects and funding opportunities it could engage in, and funded the Act. (Created NRA to enforce codes of fair competition, minimum wages, and to permit collective bargaining of workers.)

The National Recovery Administration (NRA) was the primary New Deal agency established by U.S. president Franklin D. Roosevelt (FDR) in 1933. The goal was to eliminate “cut-throat competition” by bringing industry, labor and government together to create codes of “fair practices” and set prices. The NRA was created by the National Industrial Recovery Act (NIRA) and allowed industries to get together and write “codes of fair competition.” The codes were intended to reduce “destructive competition” and to help workers by setting minimum wages and maximum weekly hours, as well as minimum prices at which products could be sold. The NRA also had a two-year renewal charter and was set to expire in June 1935 if not renewed.
declared unconstitutional in 1935

SEC, 1934
Security and Exchange Commission to establish fair rules for stock trading; Regulated stock market and restricted margin buying.

Second New Deal (Second Hundred Days), 1935
Employed 8.5 million workers in construction and other jobs, but more importantly provided work in arts, theater, and literary projects.

WPA, 1935
Works Progress Administration: Employed 8.5 million workers in construction and other jobs, but more importantly provided work in arts, theater, and literary projects.

NYA, 1935
National Youth Administration: Provided part-time employment to more than two million college and high school students.

REA, 1935
Rural Electrification Administration (REA), one of the New Deal agencies created under President Franklin Delano Roosevelt. The REA was created on May 11, 1935, with the primary goal of promoting rural electrification. In the 1930s, the U.S. lagged significantly behind Europe in providing electricity to rural areas due to the unwillingness of power companies to serve farmsteads.

Wagner Act, 1935
Guaranteed workers the right to organize labor unions, bargain collectively, and provided protections against unfair labor practices on the part of management

Social Security Act, 1935
Provided retirement pensions to Americans age 65 and older and benefits for the unemployed, the disabled, and dependent children, The greatest victory for New Dealers; created pension and insurance for the old-aged, the blind, the physically handicapped, delinquent children, and other dependents by taxing employees and employers

Court-Packing Plan, 1937
Franklin Roosevelt’s politically motivated and ill-fated scheme to add a new justice to the Supreme Court for every member over seventy who would not retire. His objective was to overcome the Court’s objections to New Deal reforms. (845)

Fair Labor Standards Act, 1938
1938 act which provided for a minimum wage, a maximum workweek of 44 hours, and restricted shipments of goods produced with child labor

Grapes of Wrath, 1939
The Grapes of Wrath is an American realist novel written by John Steinbeck about the horrors of the Great Depression; Set during the Great Depression, the novel focuses on the Joads, a poor family of tenant farmers driven from their Oklahoma home by drought, economic hardship, agricultural industry changes and bank foreclosures forcing tenant farmers out of work. Due to their nearly hopeless situation, and in part because they were trapped in the Dust Bowl, the Joads set out for California. Along with thousands of other “Okies”, they sought jobs, land, dignity, and a future.

Herbert Hoover
31st President of the United States, 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. Blamed for the Great Depression and beaten in 1932 by FDR

Franklin Delano Roosevelt
Democratic president who created the New Deal to counter the effects of the Great Depression

Eleanor Roosevelt
FDR’s Wife and New Deal supporter. Was a great supporter of civil rights and opposed the Jim Crow laws. She also worked for birth control and better conditions for working women

Huey Long
As senator in 1932 of Washington preached his “Share Our Wealth” programs. It was a 100% tax on all annual incomes over $1 million and appropriation of all fortunes in excess of $5 million. With this money Long proposed to give every American family a comfortable income of $5000 per year

Francis Townsend
American physician and social reformer whose plan for a government-sponsored old-age pension was a precursor of the Social Security Act of 1935., A doctor and critic of FDR’s who proposed that everyone 60 years of age or older should get $200 a month as long as they spent it within 30 days.

Father Charles Coughlin
a critic of the New Deal; created the National Union for Social Justice; wanted a monetary inflation and the nationalization of the banking system

Francis Perkins
Roosevelt’s Secretary of Labor and first woman cabinet member in U.S. history. Remained in office for FDRs entire presidency

margin (“buying on margin”)
A risky technique involving the purchase of securities/stocks with borrowed money, using the shares themselves as collateral; paying 10% of the stock price put Americans in debt after the crash of 1929

Black Tuesday
October 29, 1929; date of the worst stock-market crash in American history and beginning of the Great Depression.

rugged individualism
The belief that all individuals, or nearly all individuals, can succeed on their own and that government help for people should be minimal. Popularly said by Herbert Hoover.

multiplier/reverse multiplier effect
Multiplier effect: An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries in the factory’s vicinity.
Reverse multiplier effect: the opposite of above

“Hooverville”
Shantytowns on the outskirts of cities in which unemployed people of the Depression lived. The nomenclature comes from the blame many Americans placed on Hoover for the Great depression.

Bonus Expeditionary Force (“Bonus Army”)
Thousands of World War I veterans, who insisted on immediate payment of their bonus certificates, marched on Washington in 1932; violence ensued when President Herbert Hoover ordered their tent villages cleared.

Brain Trust
A small group of young reform-minded intellectuals responsible for writing FDR’s speeches and authoring much of the New Deal legislation. More influential than the Cabinet

New Deal
A series of reforms enacted by the Franklin Roosevelt administration between 1933 and 1942 with the goal of ending the Great Depression., (FDR) , , President Franklin Roosevelt’s precursor of the modern welfare state (1933-1939); programs to combat economic depression enacted a number of social insureance measures and used government spending to stimulate the economy; increased power of the state and the state’s intervention in U.S. social and economic life. RELIEF, RECOVERY, AND REFORM

Relief, Recovery, Reform
These were the categories into which the New Deal was split. Relief defined by the acts implemented in the area of aid to the unemployment. Recovery put forth measures that would help aid in the speedy recovery of areas hit hardest by the depression. Reform tried to recreate areas that seemed faulty

fireside chats
informal talks given by FDR over the radio; sat by White House fireplace; gained the confidence of the people

dust bowl
Region of the Great Plains that experienced a drought in 1930 lasting for a decade, leaving many farmers without work or substantial wages. Caused mainly by over-farming and a severe drought.

Okies
Displaced farm families from the Oklahoma dust bowl who migrated to California during the 1930s in search of jobs.

Blue Eagle (“We Do Our Part”)
Widely displayed symbol of the National Recovery Administration, which attempted to reorganize and reform U.S. industry.

New Deal Coalition
coalition forged by the Democrats who dominated American politics from the 1930’s to the 1960’s. its basic elements were the urban working class, ethnic groups, Catholics and Jews, the poor, Southerners, African Americans, and intellectuals.

Share Our Wealth
radical relief program proposed by Senator Huey Long in the 1930s to empower the government to seize wealth from the rich through taxes and provide a guaranteed minimum income and home to every American family

court-packing plan
President FDR’s failed 1937 attempt to increase the number of US Supreme Court Justices from 9 to 15 in order to save his 2nd New Deal programs from constitutional challenges

Congress of Industrial Organizations (CIO)
A federation of labor union for all unskilled workers. It provided a national labor union for unskilled workers, unlike the AFL, which limited itself to skilled workers.

Tennessee Valley Authority Act (1933)
A relief, recovery, and reform effort that gave 2.5 million poor citizens jobs and land. It brought cheap electric power, low-cost housing, cheap nitrates, and the restoration of eroded soil.

National Industrial Recovery Act (1933)
permitted all workers to join unions of their choice, allowed workers to bargain collectively for wage increases and benefits, allowed workers to go on strike to try to force employers to meet their demands

National Labor Relations Act (1935)
A 1935 law, also known as the Wagner Act, that guarantees workers the right of collective bargaining sets down rules to protect unions and organizers, and created the National Labor Relations Board to regulate labor-management relations.

Social Security Act (1935)
A flagship accomplishment of the New Deal, this law provided for unemployment and old-age insurance financed by a payroll tax on employers and employees. It has long remained a pillar of the “New Deal Order”.
((Go now and look at #24. I have no idea why I put this in twice anyway.))

President Franklin Roosevelt’s Radio Address unveiling the second half of the New Deal (1936)
President that had a “new deal” philosophy; developed Democratic coalition; made government large and activist; made presidency the most powerful branch; established welfare state; used Keynesian economics; increased reputation of business; revitalized American spirit

Six causes of Great Depression 1- Overproduction-too many goods,(agriculture), too few buyers. 2-Banking failure-system weakness. 3-Stock Market crash. 4-Consumer debt-Installment buying,(buying on credit/margin). 5-Speculation-Federal Government Regulation(businesses expanded expecting profit) 6- Low Wages(paychecks) not keeping up with cost of living. Short …

Great Depression the economic crisis and period of low business activity in the U.S. and other countries, roughly beginning with the stock-market crash in October, 1929, and continuing through most of the 1930s. Stock Market Crash Spark of the Great …

great drepression Worst __ in American history. It was spurred by the stock market crash of 1929 and lasted until WW II Herbert Hoover …, (1929-1933) The New York Stock Market Crashes October 29, 1929 “Black Tuesday”. The 20th Amendment …

McNary-Haugen Bill a bill passed by Congress that called for federal price-supports for key products such as wheat and corn in which the government would buy surplus crops at guaranteed prices and sell them on the world market. However, this …

Conservative opponents to the New Deal banded together into this to fight against FDR’s programs American Liberty League Alignment of diverse groups dedicated to supporting the Democratic Party and FDR’s legislation New Deal Coalition WE WILL WRITE A CUSTOM ESSAY …

What occurred on “Black Tuesday”? A stock market crash wipe all the gains of the previous year The Wall Street crash Marked the beginning of the depression, but did not cause it WE WILL WRITE A CUSTOM ESSAY SAMPLE ON …

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