1. NEW DEAL 2. DEMAGOGUE 3. DUST BOWL 4. WELFARE CAPITALISM 5. NATIONALIZATION 6. WAGNER ACT 7. REVENUE 8. HUNDRED DAYS 9. SOCIAL SECURITY 10. HOOVERVILLE A. A leader who manipulates through scare tactics B. A period of drought and storms C. Period at the start of FDR’s presidency D. Makeshift shelter for homeless E. Conversion to gov’t ownership F. Plan of relief, recovery and reform G. Government income H. Provides money for those who cannot support themselves I. Law that helped unions by legalizing collective bargaining J. Companies meet workers’ needs without Union prompting
Welfare Capitalism: raised wages, paid vacations, health insurance
Public had high confidence in business Lots of investment in stock market
Uneven Prosperity: rich got richer
Buying on Credit: increase in personal debt
Speculation: making high-risk investments, hoping for a high gain
Buying on margin: Buying stock by borrowing on future gain
Too many goods: demand dropped at the end of the 1920’s
Dow Jones Industrial Average: average of stock prices of major industries
Black Thursday: 1st drop in stock market; bankers were able to contain damage
Black Tuesday: stock market collapse – October 29, 1929
Those who heavily invested in the stock market lost everything
Ripple effect: produced economic chaos throughout the world for many years
Income and profits fell causing factories to close
Banks close: people rushed the banks to take out their money; many could not return their customers’ money
Global effects: when the US economy collapsed, it hurt the global economy
Overspeculation: the stock market boom was based on borrowed money, not real value
Government policies: interest rate cuts to encourage growth and cuts in money supply to limit lending
Unstable economy: wealth unevenly distributed, more goods produced than sold, & farmers did not enjoy the economic boom
The number of jobless people rose dramatically
Many suffered from poor diet & medical care
“relief gardens” Black unemployment
soared. Many hispanics & Asian-
American were deported Justice system ignored
rights
People pulled together to help each other.
Communist party & Socialists offered promises of fairer distribution of wealth
Humor helped people:- Hoover flag: turned out pocket- Hoover blanket: old newspaper
Prohibition repealed: 21st amendment Construction of the Empire State Building
Hoover’s attempts to fix depression failed.- Voluntary Action- Help the rich first – trickle down theory
- Hawley-Smoot Tariff: highest import tax in history (1930)
Most blamed Hoover for allowing the Depression to continue
Former governor of New York Genuine compassion for ordinary people Planned to use programs begun for relief
in New York at the national level- unemployment commission- relief administration
Won the election of 1932 by 7 million votes
Refers to the 1st 100 days Of FDR’s presidency
Provide Relief Create JobsStimulate Economic
Recovery
FDR’s first step was to restore confidence in the nation’s banks.
Closed all banks for 4 days Emergency Banking Act: allowed the
government to assess the health of all banks Assured Americans that the banks were safe FDIC: insures deposits up to $5,000.
($100,000 today)
Federal Emergency Relief Agency (FERA)
Provided money to local relief agencies
Civil Works Administration (CWA) Gave jobs building roads, parks & airports
Civilian Conservation Corps (CCC) Gave jobs to unmarried men w/ lodging & meals
National Industrial Recover Act (NIRA)
Goal to stabilize economy through planning
Securities & Exchange Commission (SEC)
Regulates the stock market
Agricultural Adjustment Administration (AAA)
Tried to raise farm prices through government assistance
Tennessee Valley Authority (TVA) Provided cheap electricity, flood control & recreational opportunities to the Tennessee Valley area
Wagner Act (1935): Legalized union practices Outlawed spying on unions & blacklisting Set up the National Labor Relations BoardSocial Security System (1935): Old age pensions & survivor’s benefits Unemployment insurance Aid for dependent children, blind, &
disabled people
LIMITS
Men & boys favored over women
Did nothing to end discrimination in the North
Limited success in ending poverty
TOO MUCH
New Deal went too far
Programs like socialism
High taxes for rich
Beginning in 1935, the Supreme Court began striking down New Deal programs
FDR developed a strategy for gaining Court support.
The Constitution did not limit the number of Justices on the Supreme Court
FDR proposed to increase the Court to 15 Justices that he would appoint to support his programs
