Chapter+24-Yong+Mi+Oh

Chapter 24 The Great Depression AND The New Deal

Causes and effects of the depression 1929-1933 1. wall street crach - black thursday oct.24.1929 the stock prices plunged - black tuesday oct. 29. millions of panicky investors ordered their brokers to sell, no buyers to be found.

Causes of the crash 1. uneven distribution of income 2.stock market speculation 3.excessive use of credit 4.overproduction of consumer goods 5.weak farm economy 6.government polices -little to control or regulate the business 7.global economic problems -the wartime loans to european

Effects 1. nations's income declined by over 50 percent 2. 20 perent of banks are closed

Hoover's polices

Responding to a worldwide depression Hawley- Smoot Tariff (1930) 1. set tariff at highest rate in history 31% to 49% 2.European countries enacted with higher tariff. - samk further depression

Debt moratorium 1. proposed a moratorium (suspension) on the payment of international debts.

Domestic programs : too little, too late federal farm board - authorized to help farmers stabilize prices by temporarily holding surplus grain and cotton in stoage. - continued overproduction of farm goods

reconstruction finance corporation (RFE) -propping up faltering railroads, banks, life insurance companies, and other financial institutions

Depair and protst

Unrest on farms -the farm holiday association attemptrd to reverse the drop in prices by stopping the entire crop of grain harvested in 1932 from reaching the market. the effort collapsed.

Bonus march - WW1 veterans marched to washington D.C. to damand immediate payment of the bouses promised them later date (1945) -the army broke up the march and drive veterans from D.C.

Franklin D. Roosevelt's New Deal

The First Hundred Days

1. bank holiday - to reorganize them on sound basis. 2. repeal of prohibition - raised needed tax money by having congress pass the beer-wine revenue Act which legalized the sale of beer and wine - later the ratification of 21st amendment repealed the 18th amendment, prohibition ended.

Financial recovery programs

1 the federal Deposit insurance corporation (FDIC) -guaranteed individual band deposit up to $5000. 2 the home owners loan corp. (HOLC) -provided refinancing of small homes to prevent foreclosures.

Programs for relief for the unemployed 1. the public works administration (PWA) - allotted money to state and local governments foe building roads, bridges, dams became source of thousand jobs. 2. the civilian conservation corps (CCC) -employed toung men on projects on federal land and paid their families small monthly sums.

Industrial recovery program National recovery administration (NRA) guarantee reasonable profits for business and fair wages and hours for labor. -gave workers the right to organize and bargain collectively. -supreme Court declared unconstitutional (schester v. u.s.)

Farm production control program The Agricultural adjustment administration (AAA) encouraged farmers to reduce production by offering to pay government subsidies for every acre they plow under.

The second New Deal

Relief programs Works progress administration (WPA) spent billions to provide people with jobs by constructing new bridges, roads, airports, and public building.

National Youth Administration (NYA) provided part time jobs to help young people stay in high school and college or untill theycould get a job with private employer.

Reforms

the National labor relations (wagner) Act 1935 guaranteed a worker's right to join a union and a union's right to bargain collectively also worker's rights protected.

The Social Security Act used to make monthly payments to retired persons over the age of 65, persons who were blind or disabled and dependent children.

Opponents of the New Deal

Conservative critics 1. increased regulations 2. the sencond New Deal's prounion stance 3. the financing of government programs by means of borrowed money

Demaogues 1. Father Charles E. Coughlin 2.Dr. francis E. townsend 3.Huey long -challenged Roosevelt's leadership of the Democratic party by announcing his candidacy for president.

The supreme Court Court reorganiztion plan judicial justice bill in 1937 - the president be authorized to appoint to supreme court an additional justice for each current justice who was older than a certain age(70.5 years)