Semester Exam Review Part 3 The Great Depression and The New Deal

Causes of the Great Depression Buying on credit Playing the Stock Market Stock Market Crash of 1929 Banking Crisis Global Depression Income Gap and Consumer Debt House foreclosure Lack of buying power

Effects of the Great Depression Massive Unemployment – 25% of the workforce Hunger – birth of massive soup kitchens Homelessness – The Great Migration (people used their cars as homes) The Dust Bowl Home-foreclosure and Banks closing

Herbert Hoover Impact He refused to give direct government aid Encouraged voluntarism Believed that private charities and aid could solve the Depression

New Deal Agencies The New Deal is the set of programs proposed underneath President Franklin Delano Roosevelt (FDR) These included the FDIC, CCC, TVA, SEC, Social Security, and over 30 other programs Programs were created from 1933 to 1936

FDIC Federal Deposit Insurance Act Created by the government to insure banks Original rate was $2,500 insurance Now set at $250,000 dollars insurance If the bank fails, the FDIC will pay you up to the amount of insurance

CCC Employed 3 million young men between the ages of 18 to 25 Lasted from 1933 to 1942 Vocational training in farming, conservation of forests, planting, protecting beaches and protecting the environment

TVA Tennessee Valley Authorities Designed to a rural 7 state region scarred by flooding and deforestation. New dams built. Electricity provided. Combated malaria, illiteracy, and soil erosion. Provided jobs for regional residents.

SEC Securities and Exchange Commission Regulates the stock market Enforces laws protecting investors Put in place to try to keep another stock market crash from happening Stock Market Regulator

Reconstruction Finance Corporation an independent agency of the United States government chartered during the administration of Herbert Hoover in 1932 Gave 2 billion dollars in taxpayers money to local and state governments Meant to give loans to businesses such as banks, railroads, and farm mortgage companies

Wagner Act Also know as the National Labor Relations Act limits the means with which employers may react to workers in the private sector that create labor unions, engage in collective bargaining, and take part in strikes and other forms of concerted activity in support of their demands. Created in 1935 – not well liked

FDR Opposition FDR faced opposition several times He tried to make the Supreme Court have an age limit on the justices or to add more justices when several of the New Deal Acts were found unconstitutional (This did not pass) Too much executive power Many critics said programs were communist or spent too much money

Frances Perkins First woman appointed as a US cabinet member She was appointed by President Franklin D. Roosvelt She was the Secretary of Labor Held that position from 1933 to 1945 Championed causes such as the CCC and unemployment benefits created in Social Security

First 100 Days of FDR FDR went into office with the support of the people He closed banks down until he could pass legislation to help stablize the banks He got Congress to pass every piece of legislation he proposed (some were later repealed) and they also passed things such as the FDIC which he opposed.