1.12 Hoover and the Depression

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What were some of the main affects of the 1930s Depression?
Thousands took to the roads for work/ government complaints, savings gone and homes lost daily, welfare state non existent, new and old industries suffered, unemployment rose (women + blacks) wage cute and constant fear of unemployment, food destroye
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During this time why did luxury good industries thrive?
In a time of such hardship people needed an escape, luxury items continued to sell (cinema, baseball teams)
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During the 1930s how many people were being put out of work everyday?
12,000
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How many businesses, banks and farms and people suffered between 1930-31?
20,000 companies went bankrupt, 1616 banks closed down, 1 in 20 farms were repossessed and 23,000 committed suicide
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According to Fortune magazine what % of the population was receiving no income?
28% of the population was receiving no income by September 1932
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What did the Agricultural Marketing Act do and when was it introduced?
It gave $500 million in loans to farmers groups through the Federal Farm Board, introduced in 1929 but system collapsed by 1932 as the government ended up buying surpluses
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When did Hoover introduce a $160 million tax cut and why?
Introduced in 1940 and was an attempt to revive demand, it didn't work as people were too afraid to spend so taxes went up in 1932 to try and balance the budget
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What did the Hawley Smoot tariff do and when was it introduced?
It increased tariffs to 40% ti protect domestic production, very bad effect on international trade led to even fewer exported US goods, bad for farmers, introduced in 1930
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When was the National Credit Corporation introduced and what did it do?
It was set up to give $500 million loans to banks, these loans were take up because they were already in debt, introduced in 1930
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What happened when interest rates increased and when did it happen?
They increased in 1930 to encourage investments, although this had little effect it did make borrowing dearer so those in debt were worse off
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What did the Federal Home Loan Bank Act do and when was it introduced?
Introduced in 1932, to give loans to help with mortgages, helped some people keep their homes but as max loan was only 50% value of property ineffective, example of help that failed due to extent of problem
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What did the Reconstruction Finance Corporation do and when was it set up?
It was set up to give loans to businesses, very successful, originally aimed to spend $500 million but rose to $2 billion, most loans went to big businesses, introduced in 1932
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What did the Emergency Relief and Construction Act and when was it introduced?
It gave the RFC powers to loan $1.5 billion to states for public worker and unemployment relief + gave work to many in need (seen as too little to late)
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What did the Revenue Act do and when was it introduced?
It increased taxes on corporations and the wealthy to try and balance the budget, it had little effect and probably decreased spending, introduced in 1932
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Why did FDR win the 1932 elections?
He was charismatic and attracted support by promising to help wide section of society, new deal restored confidence and captured American spirit, better relationship with press and travelled + campaigned around the US
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Why did Hoover lose the 1932 election?
too concerned with depression to campaign, didnt travel around the US, associated with the depression, bonus army, Hawley Smoot tariff was v damaging, risen unemployment, suicide and economic policies failed, didn't do enough to help the poor
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Other cards in this set

Card 2

Front

During this time why did luxury good industries thrive?

Back

In a time of such hardship people needed an escape, luxury items continued to sell (cinema, baseball teams)

Card 3

Front

During the 1930s how many people were being put out of work everyday?

Back

Preview of the front of card 3

Card 4

Front

How many businesses, banks and farms and people suffered between 1930-31?

Back

Preview of the front of card 4

Card 5

Front

According to Fortune magazine what % of the population was receiving no income?

Back

Preview of the front of card 5
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