Chapter 23 Test Review – The Great Depression Section 1 Industrial Decline: (what was happening? What were some of the industries that started to decline?)
People were buying more with installment buying; buying stocks on margin. Coal mining, railroads, cars, and clothing manufacturing were in decline. Stock was overvalued. Stock Market: (how was it increasing so quickly? People continued to buy stock on margin.
Stock prices continued to go up.
When did the crash occur? What was the
day of the crash called? October 29, 1929 – “Black Tuesday”: What happened to investors after the crash?)
Investors rushed to sell, but there were no buyers, many lost everything.
The Great Depression: (How long did it last?) 12 years Other than the stock market what contributed to the Great Depression:
Overproduction –supply was greater than demand. banking crisis –Companies couldn’t repay loans so banks were in crisis.
agricultural recession) – farmers had overproduced – no one to buy their crops; could repay loans – lost their farms; drought/Dust Bowl
Bankruptcy: (What is it? How does it relate to the Great Depression?)
- financial failure caused by a company’s inability to pay its debts. Caused more layoffs.
How did the Great Depression affect other countries?
Spread worldwide. European nations owned U.S. huge amounts of money they couldn’t repay. – they defaulted or failed to repay their loans. = slowdown in international trade. Unemployment: (What percentage of America was unemployed? How many people was this?)
Unemployment went from 3% to 25% = 1.3 million people President Hoover: (Who did he think should be responsible for relief?
He thought business leaders and local governments should step in – not federal government
Encouraged businesses and states to start public works projects; urged private charities to set up soup kitchens. What were some of the things he did?
-Formed the Reconstruction Finance Corporation: to fund critical businesses such as banks, insurance companies and railroads; gave money to local govts for public works projects. What transpired with the Bonus Army?)
- Bonus Army: veterans of WWI were supposed to be paid a bonus (extra payment) in 1945. They wanted it early so they marched on Washington DC; government forces used tear gas, tanks, and guns to move them. At least one veteran died, 100 injured. Americans were outraged. Section 2 Franklin Delano Roosevelt: (What political party was he from? What disease did he suffer from? What year was he elected in?)
Democrat; he had polio; he was elected in 1932/in office in 1933. Fireside chats: (What were they?)
radio talk shows used to restore American’s confidence The New Deal: (What was it? What were its three main goals?)
Roosevelt’s pledge/political program to end Depression
- relief for the jobless
- economic recovery
- reforms to prevent future depressions The Bank Holiday: (What was this event designed to do?)
- a four day closing of all the nation’s banks to halt failures. Passed Emergency Banking Act: provided more government regulation of banks.
Banks could reopen after records were examined to show they were healthy. Alphabet Soup Relief Agencies: (See relief agencies handout, become familiar with the functions of each agency)
Works Progress Administration – hired to repair public buildings, schools, post offices and paved roads and build airports. Hired artists to paint murals and writers to write stories and histories.
FDIC - guaranteed individual deposits up to $2500.
Truth in Securities Act – required corporations to inform public fully about their stocks. Supreme Court: (How did the Supreme Court create trouble for FDR? What was involved in the Court packing plan?)
Supreme Court ruled some of the plans unconstitutional.
Roosevelt wanted to add up to 6 new Supreme Court justices. Congress would not let him Critics: (Who were some of FDR’s critics? What did they want?)
Conservatives said New Deal went too far in regulating business and restricting individual freedom. Liberals did not think he did not go far enough in helping the poor
Huey Long – Democrat: wanted a tax on the wealthy and distribute their wealth to the poor.
Francis Townsend – CA doctor: government pensions or retirement program.
Father Charles Coughlin - spoke out against Franklin’s policies on banking and money Section 3 Women: (How did the great Depression effect women? What types of jobs could women have held?
More women started working outside the home – had to work to help support families.
Worked as salesclerks and secretaries; lost jobs as teachers factory workers. Eleanor Roosevelt: (Who was she? What two social groups was she considered a champion of?)
President’s wife. Championed women’s rights and minority groups.
African Americans: (How did the Great Depression affect them? What is the Black Cabinet? Why did FDR not support the anti-lynching bill?
Hit hard by Depression. Suffered more homelessness, illness, unemployment than whites. FDR appointed the Black Cabinet to advised him on African American issues.
Mary McLeod Bethune – became first Afr.Am. to a top ranking government position.
FDR did not support anti-lynching bill because he was afraid of losing support of southern senators for his New Deal programs Who was Marian Anderson?)
African American woman invited by Eleanor Roosevelt to sign at Lincoln Memorial for Easter Sunday. Symbol of struggle for civil rights.
Mexican Americans & Native Americans: (How were Mexican Americans treated? Many Mexican Americans were migrant workers – traveled from farm to farm picking crops. Many were rounded up and deported to make jobs for whites – some were American citizens.
Native Americans – got granted American citizenship.Poorest Americans Who is John Collier?)
John Collier/Commissioner of Indian Affairs –
What was the Indian New Deal? Indian New Deal: hired Native Americans to build schools hospitals and irrigation systems on reservations; stopped sale of Indian lands and encouraged Indian schools to teach Native American history and arts. The Dust Bowl: (What was it? Where was it? What caused it?)
Lack of rain lead to drought – caused widespread crop failure and dust storms.
Storms also called Black Blizzards. On the southwestern Plains: Kansas, Oklahoma, Arkansas
Caused by modern farming methods – new machines made it easier to plow up larger areas of land, nothing to stop topsoil from blowing away. Migrants: (Who were the people called Okies?)
Migrants from Oklahoma who went to California to look for work. John Steinbeck: (What book did he write? What was it about?)
Grapes of Wrath – family of Okies who went to California and what they went through. Dorothea Lange: (Who was she? What was she famous for?)
Famous photographer = recorded experiences of Dust Bowl migrants. Pictures became symbols of the Depression What did movies do for the American public other than provide entertainment? (list a couple of the movies)
Movies were meant to help people forget their problems. Radios were part of everyday life. Section 4 Social Security: (What is it? What was included in it?)
Also called Old Age Insurance: guaranteed retired people a pension. Also included Aid to Dependent Children to help children whose fathers were dead, unemployed or not living with the family. Also provided financial aid to the disabled and gave states money for temporary payments to the unemployed. Labor Reforms: (What was the Wagner Act? What is collective bargaining? What are sit-down strikes?)
Wagner Act – guaranteed workers’ rights to organize into unions and prohibited unfair business practices such as firing union members.
Collective Bargaining – right of a union to negotiate wages and benefits for all members.
Sitdown strikes – workers stay in the factory, but stop production.
John C. Lewis – formed CIO – Congress of Industrial Organization. Opened up membership to more women and African Americans. What were some arguments against the New Deal?
New Deal gave too much power to the federal government; threatened both individual freedom and free enterprise.
Favored return to laissez faire – government should interfere with the economy as little as possible.
Worried about increase in nation’s debt – deficit spending: government spends more money than it receives in taxes. New Deal failed to fulfill goal – did not end Depression – production for WWII did. What were some arguments for the New Deal?
Employed millions of jobless people, ended banking crisis; reformed stock market saved poor families from losing their homes; improved working conditions. Build dams, bridges; preserved national parkland; brought electricity to rural America, and sponsored creation of lasting works of art.