Great Depression and New Deal Review

When you invest in the stock market, what can happen with your money? Earn, lose, stay the same

Why did people invest in the stock market in the twenties? Stock prices were rising, made more money than banks

Were banks safe during the depression? No- people withdrew money- banks closed

Who was the Bonus Army? WWI vets- down on their luck

When were they supposed to be paid? 1945

Why did some people view Pretty Boy Floyd as a hero? Helped poor, destroyed mortgages- banks were viewed as bad

What is speculation? Short term investing

Who was the President when the stock market crashed Who was the President when the stock market crashed? What Party was he from? Hoover, Republican

What was the role of optimism in the stock market crash? People were too optimistic- invested needed money in stock market

What is buying on margin? Is it legal now? Putting a little down- repay with earnings- no

What natural disaster hit farmers in 1930? drought

What happened to the price of farmland during the depression? Went way down

What was the leading relief agency in 1930? Red Cross

What did Hoover not include in his relief efforts? Direct Aid- food for people

What was the Harley Smoot Tariff? Highest tariff in US history- decreased world trade

What is a foreclosure? Bank takes back property because payments are late

Who won the election of 1932? What Party was he from? F. Roosevelt, Democrat

What were the Bank Holidays? Banks closed to withdrawals, examined and opened when they were ok

What was the Tennessee Valley area like before the TVA project? 100 yrs behind rest of country, poor, flooding and erosion, little electricity

What were the three aims of the TVA? Navigation, Electricity, flood control

Why were the people of the Tennessee Valley eventually pleased with the TVA? Jobs

What were FDR’s three Rs? Relief Recovery Reform

What were “Fireside Chats”? Attempts by FDR to calm people

How did the AAA affect tenant farmers? Only gave money to property owners

What positions did FDR hold before the Presidency? Governor of NY

Why did Alf Landon lose to FDR? No real difference from FDR- country was starting to improve

What replaced the NIRA? Wagner Act

How did the Social Security Act help people? Money for disabled, orphaned and retired

Why did FDR want to change the Supreme Court? Get votes on his side

What happened when FDR cut back on the New Deal in 1937? Unemployment increased

Why was Gone With the Wind popular during the depression? Romantic escape- people prevailing against odds

Who was Townsend- promoted a pension plan for elderly- pay not to work, must spend Long- proposed a nationwide social program “share our wealth” assassinated

Who was Coughlin- Roman Catholic priest, thought FDR did not go far enough wanted nationalized banks and guaranteed annual income Landon- lost ’36 election to FDR Eleanor Roosevelt- 1st lady, spoke out for women, minorities, down trodden

What was the AAA- Plan to help farmers by limiting production WPA- work program- construction, writing, murals, city guides

What was the PWA and NIRA- money to states for construction of schools and other municipal buildings NRA- established fair practices for business ALL- felt that the New Deal violated individual rights and property

What was the CCC- Put 18-25 yr. olds to work- building roads, developing parks, planting trees FDIC- part of Glass Steagall Act-insured deposits in banks

How did the Rural Electrification Act affect different areas? Electricity- housework easier, demand for appliances

What was the role of optimism in causing the depression and helping America recover? People were too optimistic and speculated with money they couldn’t afford to lose. Later people regained confidence in banks and America.

How would rich people not buying goods affect other areas of society? Less products needed, less people (jobs) needed to manufacture

Why were Conservatives critical of the New Deal? Took away freedom, government too involved with business

Why were liberals critical of the New Deal? Didn’t go far enough

What are demagogues? leaders who manipulate people with half truths, deceptive promises, and scare tactics

How was the New Deal limited in helping African-Americans? Women? Maintained discrimination- no equal pay, limited professional jobs

What brought an end to the Great Depression? World War II