The Wall Street Crash and the New Deal

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Why did buying shares become so popular in the 1920s?
more disposable income due to high employment rate, accessible credit, stocks lost their stigma (weren't risky), women were introduced to the stock market, Charles Mitchell - recyclable investments.
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When and what was black Thursday?
24th October 1929. The fall in share prices turned into panic and prices plunged and desperate investors sold their shares to try to cut their losses. Thousands were bankrupted. By 1932, share prices were worth a fifth of their value in 1929.
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What were the economic effects of the Wall Street Crash?
unemployment rose sharply, peaking at 13mil in 1933, production fell drastically, by 1933 the economy was producing 20% of what it had in 1929.
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What did President Hoover do to combat the economic effects of the Wall Street Crash?
believed that the economy would eventually recover by itself (Republican attitude) and believed that the government shouldn't be involved in the economy. Some measures: asked employers to not sack their workers, gave some loans to failing businesses.
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What was the Hawley-Smoot tariff?
introduced in 1930, placed higher tariffs on imports which led to retaliation from other countries through a reduction in US export trade.
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Explain what Hoovervilles and Hoover blankets were.
Hoover's name became associated with the effects of the Depression. Shanty towns built by the unemployed homeless were called 'Hoovervilles'. The newspapers that the destitute used to cover themselves with were called 'Hoover Blankets'.
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What were the social consequences of the Wall Street Crash?
families lost their homes or were split up when the father left to find work, the unemployed relied on charity, gov't lost support after their treatment of the Bonus Marchers (refused to give homeless veterans their payment for war service early).
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How did Roosevelt deal with the Banking Crisis of 1933?
brought in the Emergency Banking Act which forced banks to stay closed for 4 days. Then, he closed the weakest banks permenantly and appealed for calm, urging people to leave their money in the banks.
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What was the Securities and Exchange Comission?
set up in 1934, to control the activities of the stock market.
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What were Roosevelt's 'fireside chats'?
radio broadcasts where he would speak directly to the nation, explaing his new policies, as though he were chatting to friends.
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What was the Agricultural Adjustment Act?
helped farmers by destroying surplus production and compensating them for the loss, and the AAA was set up to put the act into operation. In this way, prices could rise and farming would recover.
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How were the unemployed helped through the New Deal?
Federal Emergency Relief Administration (FERA) gave gov't grants to local communities to help the poor, Civillian Conservation Corps (CCC) created jobs for young men in useful, environmental work.
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What did the National Industrial Recovery Act do?
set up important agencies: National Recovery Administration (NRA) negotiated pay and working conditions and the Public Works Administration (PWA) used umeployed skilled workers on public construction projects.
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What did the Home Owner's Loan Coporation (HOLC) do?
gave loans to the temporarily unemployed to prevent them from losing their homes to the banks.
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How was the Tennesse Valley helped?
Tennesse Valley Authority (TVA) was set up to regenerate the area by constructing dams which would provide electricity and encourage industry to develop.
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What were the agencies nicknamed?
Alphabet Agencies.
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What did the 21st Amendment include and when was it passed?
Passed in 1933 and included the end of prohibition.
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When was the Second New Deal introduced and what was it targeted at?
1935 and was to improve welfare and labour rights.
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What was the Social Security Act (1935)?
set up a national insurance scheme which provided old age pensions, unemployment benefits and support for handicapped people.
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What was the Wagner Act (1935)?
Confirmed the right of workers to join trade unions.
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What was the Works Progress Administration (WPA)?
set up to co-ordinate government efforts to find work for the unemployed. Because of its emphasis on finding work that was socially useful, it not only funded construction projects, but also employed out-of-work artists, writers and photographers.
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Why did unemployment persist despite the New Deal?
some said the jobs weren't 'real', employers remained hostile to workers' rights and tried to smash trade unions, couldn't solve the Dustbowl, didn't specificially help AA's, gov't spending was cut in 1937 and economy slumped again.
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Other cards in this set

Card 2

Front

When and what was black Thursday?

Back

24th October 1929. The fall in share prices turned into panic and prices plunged and desperate investors sold their shares to try to cut their losses. Thousands were bankrupted. By 1932, share prices were worth a fifth of their value in 1929.

Card 3

Front

What were the economic effects of the Wall Street Crash?

Back

Preview of the front of card 3

Card 4

Front

What did President Hoover do to combat the economic effects of the Wall Street Crash?

Back

Preview of the front of card 4

Card 5

Front

What was the Hawley-Smoot tariff?

Back

Preview of the front of card 5
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