How did overproduction lead to the great depression?
- Factories produced too many goods, so prices fell -As factories then produced fewer goods by hand, people had to be fired, therefore less people could afford food.
1 of 31
How did an unequal distribution of wealth lead to the great depression?
- American money wasn't going to those who needed it, therefore over half of the American population lived below the poverty line during this time
2 of 31
What was the name of the tariff put in place to 'protect' American goods and how did it affect the depression?
The Smoot Hawley Tariff- put in place by Hoover to increase the cost of importing goods into the US. This actually backfired as countries raised their own tariffs in response to the tariff being put in place.
3 of 31
What was 'financial speculation'?
People borrowed money from banks in order to purchase shares in the hopes that the shares would increase in value so they could sell them and be able to pay back their loans.
4 of 31
Around how many businesses went bust during this time?
Around 100000 businesses collapsed
5 of 31
What were the shantytowns found in cities known as?
Hoovervilles- named after President Hoover
6 of 31
When was The Dust Bowl and what was it?
The Dust Bowl was a serious drought between 1930-1936 which turned most areas of farmland to dust and dropped farm produce even lower
7 of 31
Name some of the effects the depression had on farm workers
-Farm prices fell so low that that the cost to transport goods to market was more expensive than the goods themselves -International trade reduced from $10 billion to $3 billion -Huge numbers of farmers couldn't afford their mortgages
8 of 31
Name some effects the depression had on businessmen
-Industries produced more goods than normal and ended up bankrupt -Industrial produces fell by 40% -Businessmen tried selling on the street
9 of 31
What were some of the beliefs of President Hoover?
-That 'prosperity was just around the corner' -He thought the government shouldn't interfere and state governments should manage themselves
10 of 31
Name some things introduced by Hoover to help the USA out of the Depression
-Hoover Dam to create jobs -Federal Home Loan Bank Act -Emergency Relief and Construction Act
11 of 31
What did Roosevelt promise in his election campaign?
A 'New Deal'- to get the country out of the depression
12 of 31
What powers did congress grant FDR?
Broad executive powers- 100 days of control as if the country were under invasion
13 of 31
What does the phrase 'priming the pump' mean?
The government creates jobs by spending money; once the workers earn wages they would start buying goods; other businesses would be able to restart and hire
14 of 31
What were the 3 main aims of the New Deal?
Relief, Recovery, Reform
15 of 31
What were the Fireside Chats?
A series of radio broadcasts held by FDR to explain what he was doing and how it was helping them
16 of 31
What were the Alphabet Agencies?
A group of organisations which were set up to help the USA out of the depression
17 of 31
What was the EBA?
Emergency Bank Act- closed all banks for 4 days, only trusted ones were reopened, thus restoring faith in the banks
18 of 31
What was the AAA?
Agricultural Adjustment Agency- Paid farmers to produce less food, thus stopping overproduction
19 of 31
What was the NRA?
National Recovery Administration- Tried to introduce fair conditions and wages at work. Companies that agreed got the blue eagle on their produce
20 of 31
What was the FERA?
Federal Emergency Relief Agency-Gave $500 million to help those who were hungry and homeless
21 of 31
What was the CCC?
Civilian Conservation Corps- Gave work to 18-25 year old men to help them gain key skills and get back to work
22 of 31
What was the TVA?
Tennessee Valley Authority- Provided work such as building hydroelectric dams and power stations to improve the Tennessee Valley
23 of 31
What was the CWA?
Civil Works Administration- aimed to give short term wok during the winter of 1933-34- gave more than 4 million jobs
24 of 31
What was the PWA?
Public Works Administration- organised large scale work schemes such as building schools
25 of 31
What was the HOLC?
Home Owners Loan Corporation- Took over mortgages so that people wouldn't lose homes- 80% were successfully repaid
26 of 31
What was FDR planning to do about Prohibition?
He was going to repeal the 18th amendment and introduce the 21st amendment and allow alcohol legally in the US
27 of 31
How many new laws did the New Deal establish?
13 new laws were passed
28 of 31
What was FDR, Republican or Democrat
Democrat- Herbert Hoover was a Republican
29 of 31
What did some of FDR's Republican followers fear?
That FDR was acting like a dictator
30 of 31
When was FDR first inaugurated?
March 1933
31 of 31
Other cards in this set
Card 2
Front
How did an unequal distribution of wealth lead to the great depression?
Back
- American money wasn't going to those who needed it, therefore over half of the American population lived below the poverty line during this time
Card 3
Front
What was the name of the tariff put in place to 'protect' American goods and how did it affect the depression?
Back
Card 4
Front
What was 'financial speculation'?
Back
Card 5
Front
Around how many businesses went bust during this time?
Comments
No comments have yet been made