Miscellaneous
What is Laissez Faire?
The belief that the government should interfere as little as possible in the economy
What is Hoovervilles?
Makeshift camps where hundreds of homeless people took shelter
What is Bank Holiday (Emergency Banking Relief Act)?
FDR closed banks for 4 days to get a chance to speak to the country and tell them not to take their money out of the bank so it doesn’t collapse
What is Relief?
(First step) The government gives temporary jobs, money, and even food to out of work americans
What is National Recovery Act (NRA)?
Addresses issues between businesses and gets rid of unfair competition between businesses. The government encourages businesses to agree to set their price to certain goods. They would also agree to pay employees fairly, allow unions and people were encouraged to shop mainly in those stores (recovery)
What is Overproduction?
The supply of goods was higher than the demand. Workers were not given raises and therefore could not afford to buy the goods they produced.
What is Reconstruction Finance Corporation (RFC)?
Hoover loaned money and cut taxes on businesses hoping they would hire more workers (trickles down economics)
What is Fireside Chats?
FDR used the power of the radio to communicate with the American people in order to promote his programs
What is Recovery?
(second step) The government encourages business and farms to start up again
What is Social Security Act (SSA)?
Created a national pension system for all Americans. Once people reached a certain age or became disabled they would receive their Social Security payments (reform)
What is Buying on Margin?
Buying a stock by borrowing money on credit. If a stock decreased in value, the borrower had no way of repaying the loan.
What is Public Works?
Temporary jobs that the government hires people to build things for the country (one of Hoover’s approaches to help country out of depression)
What is First 100 Days?
FDR sets new record for the number of laws passed in the president’s first 100 days in office
What is Reform?
(last step) The government passes laws to stop another depression from happening again
What is Court Packing?
In FDR’s second term he tried to pass a law that would allow him to add judges to the supreme court. Many people feared FDR was becoming a dictator and refused to pass this law
Banks made unwise loans and ran out of cash. This forced banks to close and depositors lost their life savings
What is Soup Kitchens/Bread bowls?
Charities that gave starving people a bowl of soup, (one of Hoover’s approaches to get out of depression), didn’t work because too many people came for the food and no one gave money to the charities because they had no money to give
What is New Deal?
FDR’s plan for getting America out of the depression. Called for a massive increase in the government’s role in the economy, relief, recovery, and reform
What is Civilian Conservation Corps (CCC)?
Provided jobs for thousands of Americans. They worked on projects such as planting trees and improving national parks. Got paid $1 a day. They were provided free food and shelter. Had to send $25 of their total $30 home to their family (relief)
What is Dust Bowl?
Overgrazing by cattle and plowing by farmers destroyed the grasses that once held down the soil. A drought and high winds sent millions of tons of dust across the continent
What is Black Tuesday?
Stock market crash It was the single greatest crash in American history. Panic caused investors to scramble to sell their stocks causing the market to crash
What is Bonus Army?
Tens of thousands of WW1 veterans marched on Washington to receive an early bonus. Hoover ordered the military to remove them. *Destroyed Hoover’s chances for reelection
What is Brain Trust?
Found the best people from the top colleges to become FDR’s advisors to create New Deal
What is Tennessee Valley Authority (TVA)?
Hired people to build dams and generators. This brought electricity and jobs to communities in the Tennessee River Valley. They built a dam to create electricity and gave cheap electricity to rural people and businesses (recovery)
What is Pop Culture of the 1930s?
Movies (now with sound and later color), new kinds of music, and crazy news stories helped to take people’s minds of the depression