Amsco APUSH Chapter 24 100% Correct

Amsco APUSH Chapter 24 100% Correct stock market crash October 1929 - The steep fall in the prices of stocks due to widespread financial panic. It was caused by stock brokers who called in the loans they had made to stock investors. This caused stock prices to fall, and many people lost their entire life savings as many financial institutions went bankrupt. Black Tuesday October 24th, 1929 - lots of people sold their stock + prices went way down. To stabilize stock, a group of bankers bought millions in stocks Dow Jones index The index of stock prices that fell from its high of 381 before the crash to an ultimate low of 41. buying on margin allowed people to borrow most of the cost of a stock, making down payments as low as 10%, investors relied on stock prices to rise to pay back the loan. When the market crash people lost everything they had borrowed or invested uneven income distribution top 5% of the richest got 33% of all income excessive debt low interest rates + belief in economic boom resulted in excessive borrowing + installment buying. Led to defaults on loans + bank failures overproduction post war business growth led to overproduction of goods which people couldn't afford to purchase after the crash Federal Reserve tight money policies led to 100's of banks to fail. They tried to stabilize the gold standard instead of stabilizing banks, prices, + the $ supply. W/o insurance, people panicked to withdraw their $ = many banks failed postwar Europe Europe hadn't recovered from WW1, but the US failed to recognize this + insisted on loan repayment & enacted high tariffs - weakened Europe + aided to a Worldwide Depression debts and high tariffs US wanted Europe to repay their war debts and put high tariffs on their goods to encourage Americans to buy locally Gross National Product value of all goods + services produced in one year . Dropped from $104 billion to $56 billion () unemployment unemployment rose to 13 million / 25% of the nation, not including farmers bank failures 20% of banks closed + 10 million people's savings accounts were wiped poverty and homelessness poverty and homelessness was on the rise . [evictions + foreclosures] , people moved into tent cities called shantytowns or "Hoovervilles" named after shit president Herbert Hoover Herbert Hoover Secretary of commerce through the Harding-Coolidge years who was elected president in 1928, crowning a career of steady ascent, first in mining, then in public service; Hoover's image combined the benevolence fitting a director of wartime relief and the efficiency of a businessman and administrator, but the market crash tainted the end of his presidency and recast him as a stubborn opponent of depression relief. Basically he did a shit job dealing w/ the stock market crash. pretty embarrassing really self-reliance Hoover was afraid that government assistance in the great depression would destroy people's self-reliance Hawley-Smoot Tariff (1930) US raised tariffs [around 45%] on foreign imports, in retaliation Europe enacted high tariffs against US goods. REDUCED TRADE FOR FOR ALL NATIONS + US + WORLD FELL INTO DEPRESSION. Probably one of Hoover's biggest mistakes debt moratorium suspension on the payment of international debts , Britain & Germany readily accepted but France wasn't so sure. International economy suffered from massive loan defaults Farm Board tried to help farmers stabilize prices by temporarily holding surplus grain + cotton in storage. Didn't work! Reconstruction Finance Corporation federal corporation to prop up RR's, banks, life insurance companies. If these profited Hoover hoped it would trickle down to smaller businesses bonus march (1932) WW1 vets marched to DC in 1932 demanding bonus' + camped w/ their families in shack + tents near the Capitol. 2 vets were killed by police. Hoover ordered breaking up of the camps. General Douglass MacArthur teargassed + used tanks to destroy the camps + drive the vets out. [Americans saw Hoover as heartless + uncaring Twentieth Amendment ("lame duck") Hoover couldn't do anything to fix it in the remainder of his term, FDR declined to work w/ him. Passed the 20th Amendment in 1933 [shortened the period between presidential election & inauguration) New term became January 20th Franklin D. Roosevelt bae 3 , distant relative of Teddy Roosevelt but married his niece Eleanor [was his cousin wtf] , paralyzed by polio in 1921 [wheelchair] , great speaker, warm personality + ability to work w/ + inspire people. Super $wag president who help the US through the Great Depression + WW2 Eleanor Roosevelt activist, wrote newspaper column, gave speeches, + traveled country. Most active first lady in history, influenced FDR to support minorities + the poor New Deal A series of reforms enacted by the Franklin Roosevelt administration between 1933 and 1942 with the goal of ending the Great Depression. relief, recovery, reform Relief: for people out of work Recovery: for business + the economy Reform: for American economic institutions Brain Trust A small group of young reform-minded intellectuals responsible for writing FDR's speeches and authoring much of the New Deal legislation. Frances Perkins Roosevelt's secretary of labor (); the first woman to serve as a federal Cabinet officer, she had a great influence on many New Deal programs, most significantly the Social Security Act. Hundred Days 1st 100 days of his Presidency, FDR passed more legislation than any single Congress in history. Most referred to w/ initials (i.e. WPA, AAA, CCC, NRA) bank holiday to restore banks that were still able to pay debts, FDR ordered banks to close on March 6, 1933 + would reopen after giving time for the govt. to recognize them as stable / safe repeal of Prohibition Beer-Wine Revenue Act - legalized the sale of beer + wine. In 1933, the 21st Amendment repealed the 18th Amendment #turnup fireside chats The informal radio conversations Roosevelt had with the people to keep spirits up. It was a means of communicating with the people on how he would take on the depression. Federal Deposit Insurance Corperation FDIC guaranteed individual banks deposits Public Works Administration Secretary of the Interior Harold Ickles, allowed $ to state + local govts. for building roads, bridges, dams. Created THOUSANDS of jobs Harold Ickles FDR's chief "administrator of relief" , head of the PWA / Public Works Administration Civilian Conservation Corps employed young men on projects of federal lands + paid their families small monthly sums Tennessee Valley Authority hired 1,000's in poor region of the nation to build dams, operate electric power plants, control flooding + erosion, + manufacture fertilizer. They sold electricity to the residents of the region @ rates much lower than everyone else was getting National Recovery Administration Directed by Hugh Johnson, attempt to guarantee reasonable profits for business + fair wages + hours for labor. Gave workers right to organize + bargain. Was declared unconstitutional Schechter v. US Supreme Court declared that the NRA [National Recovery Adinistration] was unconstitutional Securities and Exchange Commission created to regulate the stock market + place strict limits on the kind of speculative practices that led to the crash of 1929. Required full audits + financial disclosure by corporations to protect investors from fraud + insider trading Federal Housing Administration gave construction industry + homeowners a boost by insuring bank loans for building new houses + repairing old ones Works Progress Administration Congress created this in 1935 as an agency that gave jobs to people who needed them. They worked on bridges, roads, and buildings. They spent 11 billion dollars and gave almost 9 million people jobs. It was one of the New Deal Agencies. Harry Hopkins Director of the Works Progress Administration National Labor Relations (Wagner) Act (1935) MAJOR LABOR LAW, guaranteed a worker's right to join a union + a union's right to bargain collectively. Social Security Act (1935) guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health election of 1936 FDR (Democratic) reelected b/c of his New Deal programs and active style of personal leadership. Running against FDR was Alf Landon (Republic nominee) New Deal coalition A coalition forged by the Democrats, who dominated American politics from the 1930s to the 1960s. Its basic elements were the urban working class, ethnic groups, Catholics and Jews, the poor, Southerners, African Americans, and intellectuals. John Maynard Keynes British economist who argued that for a nation to recovery fully from a depression, the govt had to spend money to encourage investment and consumption "prime the pump" recession of 1937 Winter 1937 economy took backward slide into a recession. A second period of economic decline during the Great Depression that resulted because FDR had largely stopped spending money and attempted to create a balanced budget, which lessened the effects of the New Deal on the people by laying off many more workers and giving less and less to the people. Father Charles Coughlin Radio broadcasts, founded National Union for Social Justice [issue inflated currency + nationalize all banks] Attacked new deal + was anti-Semitic + fascist until the Catholic Church said stop Francis Townsend attracted senior citizens by proposing federal sales tax 2%, used to create fund where every retired person gets $200 a month + spend it within the month to stimulate economy Huey Long FDR thought he was dangerous, "Share the Wealth" program promised a minimum annual income of $5,000 to every American Family, [tax wealthy for $], was assassinated Supreme Court killed NRA [business recovery] + AAA [agricultural recovery] -- "unconstitutional" FDR was kinda annoyed reorganization plan judicial-reorganization bill (1937)/proposed that the president be authorized to appoint to the Supreme Court an additional justice for each current justice who was older than a certain age (70.5 years)/would have allowed him to add up to 6 more justice . Congress shut him down and was pissed + no longer passed everything he wanted conservative coalition By 1938, many conservative Democrats alienated by New Deal deficit spending and predominantly southerners, joined with Republicans to form an anti-New Deal in Congress. The coalition succeeded in blocking additional New Deal legislation. Congress of Industrial Organizations A federation of labor union for all unskilled workers. It provided a national labor union for unskilled workers, unlike the AFL, which limited itself to skilled workers. John L. Lewis Leader of the Congress of Industrial Organizations + President of United Mine Worker's Union sit-down strike Work stoppage in which workers shut down all machines and refuse to leave a factory until their demands are met. Happened at General Motors in 1937 + Execs gave in Fair Labor Standards Act 1938 -minimum wage @ 40 cents an hour -maximum work week of 40 hours w/ "time + a half" for overtime -child-labor restrictions on hiring people under 16 yrs old minimum wage set to 40 cents an hour depression mentality millions of people developed an attitude of insecurity and economic concern that would always remain, even in times of prosperity. drought; dust bowl; Okies severe drought swept midwest in 1930's , highwinds blew away crops + farmable top soil. Many moved to Cali in search of farm or factory work. John Steinbeck, The Grapes of Wrath author who followed a family who lost their land in a resettlement act and journeyed to California. Dust bowl i.e. Marian Anderson A famous African American concert singer who had her first performance in 1935, dazzling the audience and launching herself into fame. The next year she performed at the White House by presidential invitation, and performed on the steps of the Lincoln Memorial when the Daughters of the American Revolution refused to let her rent Constitution Hall (Eleanor Roosevelt and several others resigned after this decision). Mary McLeod Bethune leader for improving education + economic opportunities for women, was appointed as director of the Minority Affairs within the National Youth Association. Became the first black womean to head a federal agency Fair Employment Practices Committee executive order in 1941 set up committee to assist minorities in gaining jobs in defense industry , FDR did this only after A. Philip Randolph [RR Porters Union] threatened march on DC to demand equal rights for AA's A. Philip Randolph Threatened march on DC to demand equal right for AA's , so FDR enacted the Fair Employment Practices Committee Indian Reorganization (Wheeler-Howard) Act (1934) repealed Dawes Act, returned lands to the control of tribes + supported preservation of Indian cultures Mexican deportation High unemployment + drought caused dramatic increase of white farmers to leave midwest and push Mexicans out of farm jobs. Lots returned to Mexico as a result