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

2. 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

3. 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

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

5. 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

6. 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

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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.