The Great Depression and the New Deal 374-420

1. The Great Depression and the New Deal 374-420

2. Great Crash: Collapse of the American stock market October 29, 1929. (380)

3. Causes of the Great Depression • The 1920s economy out of balance (wealth unevenly distributed) • Americans are increasingly in debt: farmers, people living outside of their means. (credit) • Speculation on the rise • Overproduction slow industrial growth. • The government limited the supply of money in circulation to discourage lending. As a result, there was not enough money in circulation to help the economy recover • The Stock Market Crash October 29, 1929

4. welfare capitalism: An approach to labor relations in which companies met some of the workers’ needs without prompting by unions.(376)

5. buying on the margin: investors purchase a stock for only a fraction of its price, borrowing the rest.(377)

6. (GNP)Gross National Product: the total value of goods and services a country produces annually. (In 1929 it was $103 billion and in 1933 it was $56 billion.) GNP Top 10 (2004) (currency exchange rate) Country GNP ($ mill) 1.United States $12,150,9302 2.UnitedKingdom$2,016,3933 3.Germany $1,916,3934 4.Japan $1,916,3935 5.France$1,858,7316 6.China$1,676,8467 7.Italy $1,275,033 Source: World Bank

7. Hoovervilles: Homeless people during the Great Depression build shanty towns, out of tar paper or cardboard. These towns came to be known as Hoovervilles.(383)

8. Dust Bowl: A region in the Great Plains that had a period of drought and dust storms during the 1930s.(384)

9. Dorothea Lange: Photographed migrant farm workers during the Great Depression; inspired government aid programs and Steinbeck’s The Grapes of Wrath.(384)

11. breadline: During the Great Depression a line of people waiting for handouts of free food

12. hobo: With no work and no prospects at home, many decided to travel and try their luck in different parts of the U.S. many traveled by freight trains

13. 21st Amendment: In 1933, just 14 years after it passed the 18th Amendment banning the sale of alcohol beverages, Congress passed the 21st Amendment, repealing Prohibition. (391)

14. Hawley-Smoot tariff: Trying to protect domestic industries from foreign imports, Congress passed the Hawley- Smoot tariff. The tariff back fired. European countries raised their own tariffs, bring a slowdown in international trade.(394) • Proponents believed that the high tariffs would help American industry and agriculture in a time of severe depression. In fact, the opposite occurred. As the United States was a net exporter of both agricultural goods and industrial products, the ensuing worldwide tariff war simply lengthened the depression.

16. Bonus Army: a group of 20,000 jobless WWI veterans and their families encamped on Washington D.C. They wanted immediate payment of a pension bonus that they had been promised in 1945. The House of Representative agreed, but the Senate said no. Most of the Bonus Army then went home. Hoover sent in the army to clear out some violent protestors. It was a disaster, people were hurt and Hoover was humiliated.(395-396)

18. New Deal: President Franklin Roosevelt’s program of relief , recovery, and reform programs to combat the Great Depression.(403)

19. FDR: The Thirty Second President of the United States, 1933-1945; fought the Great Depression through his New Deal social programs; battled Congress over Supreme Court control; proved a strong leader during World War II.(369)

20. FDR

21. Eleanor Roosevelt: First Lady 1933-1945 ; tireless worker for social causes, including women’s rights and civil rights for African Americans and other groups.(396)

23. First hundred days: Period at the start of Franklins Roosevelt’s presidency in 1933, when many New Deal programs were passed by Congress. FDR pushed program after program through Congress to provided relief ,create jobs, and stimulate economy.(404)

24. public works programs: government funded projects to build public facilities(405)

25. PWA: Public Works Administration: Sponsored massive public works projects such as dams and hydroelectric plants. (Grand Coulee Dam) (405,408)

26. TVA: A Federal project to provided electric power, flood control, and recreational opportunities to the Tennessee River Valley. It created jobs in one of the countries least developed regions.(406) November 21, 1934, Jersey City Journal. Permission granted by the Jersey City Journal. Tennessee Valley Authority

27. CCC: FDR believed strongly in conservation of the environment. The Civilian Conservation Corps was FDR’s favorite program. In March 1933, the CCC put more than 2.5 million unmarried men to work restoring and maintaining forest, beaches, and parks. Workers received 1 dollar a day, food, shelter on camp ground, and job training.(404) The Civilian Conservation Corps

28. National Recovery Administration • NRA: An agency that set out to balance the unstable economy through sensible planning. The agency established codes that would spell out fair business practices. The codes regulated wages , working conditions, production, and even prices.(405)

29. WPA: Works Progress Administration: Gave the unemployed work in building construction and arts programs.(408)

32. FDIC: In June 1933, Congress established the Federal Deposit Insurance Corporation to insure bank deposits up to 5,000. Thus, increasing the American confidence in the banking system. (404)

33. SEC: established to regulate the stock market. The SEC was given the power to tell companies what information must be included in their financial statements. (406,408) Securities and Exchange Commission

34. AAA: The Agricultural Adjustment Administration: Attempted to raise farm prices by paying farmers to lower farm output.(408) The Agricultural Adjustment Administration

35. Second New Deal: Period of legislative activity launched by President Franklin Roosevelt in 1935.( 408)

36. Wagner Act: Law passed in 1935 that aided unions by legalizing collective bargaining and establishing the National Labor Relations Board(409)

37. American Liberty League: Organization opposed to the New Deal(412)

38. Nationalization: Conversion to government ownership.(413)

39. Court packing scheme • Court packing scheme: FDRs attempt to “pack” the Supreme Court with judges that favored the New Deal. Arguing that he merely wanted to lighten the burden of the aging justices, FDR asked Congress to pass a reform bill that would allow him to appoint 6 new Supreme Court Justices, one for every aging justice. He was forced to remove his bill, but once some older justices retired he, was able to appoint judges, that were favored New Deal reform.(414)

40. demagogues: Leaders who manipulate people through such means as half truths and scare tactics.(412)

41. deficit spending: Government spending of borrowed money to get the economy moving.(463)

42. Woody Guthrie:Woodrow Wilson Guthrie (July 14, 1912–October 3, 1967), known as Woody Guthrie was an influential and prolific American folk musician noted for his identification with the common man, the poor and the downtrodden, and for his abhorrence of fascism and exploitation. He is best known for his song "This Land Is Your Land”.