January 25-29

Monday- review

Tuesday- TEST

Wednesday- presentations

Thursday- presentations

Friday- presentations

Causes of stock market crash
- stock prices were grossly inflated an too high
  - buying on margin
  - more people in stock market which drove price up
- over speculation
  - companies profit went down, but stock prices went up because of demand
  - led to watered stock (overpriced stock)
- buying on margin
  - down payment made to the broker for the asset being purchased
- overproduction of goods (underconcumption of goods)too much borrowing from banks
  - people bought on credit
  - people got into debt and therefore stopped buying
  - led to companies not making profit
- federal reserve increased interest rateslack of gov regulation
  - bankers bank
    - banks would borrow from the federal reserve so banks didn't fail
- - wealthy people took advantage of stock

1930's

1. Causes of the Great Depression

over production of goods
under consumption of goods by consumers
agricultural slump in 1920's due to overproduction
high protective tariff policies of the 1920's
taxes benefiting the rich (rich got richer, poor got poorer)
stock market crash
banks closing
- people lost life savings

2. Impact the Great Depression had on people and our country

vicious cycle
- companies lose $ so they lay people off
- unemployment rate goes up and less people buy goods as income has dropped
- companies profits fall so they have to lay more people off
- cycle repeats
hooverville
- people blamed hoover
bread lines
- mainly men
  - women were too embarrassed
20% unemployment rate
- african americans - closer to 50%
Soup kitchen
- set up by churches, red cross, etc
hobos hopping freight trains
- people dropped out of school and left their families
apple vending
dust bowl
- 1935-40
- great plains
  - "great american desert"
okies
- moved from Oklahoma and since the dust bowl decided to give up on the farm and go to CA for jobs

3. President Hoover’s attempt(or lack thereof) to help solve Great Depression

Hoover's fight against the great depression
- Encouraged people to be patient, stay positive and volunteer to help each other
- federal farm board
  - stabilize prices and to promote the sale of agricultural products
  - farmers got paid to (the following) in order to get prices down because there was over production
    - plant less
    - kill hogs
    - destroy food
- Norris-la guardia act
  - strengthened labor unions
hoover moratorium
- 1 year halt on German war payments to France
- 1 year halt on war payments from great Britain and France to the US
Mexican repartruation
- mexican immigrants were encourage/forced to go back to mexico
Revenut act of 1932
- increased taxes so US gov had $$
hawley smoot tariff
- raised tariffs to record levels
Re construction Finance Corporation (trickle down theory in action)
- gave loans to banks, state, and local governments and businesses to create projects/jobs for people
- gave states loans for emergency relief
- started under hoover
- not as successful
boulder (hoover) dam
- located near las vegas
- hoover dam project includes
  - dam
  - all-american canal
  - town of boulder city
  - highways
  - railroads
- $165 million
Why?
- gives jobs
- helps farmers

4. 1932/1936 Presidential elections

Hoover vs Roosevelt
- Hoover won some in the NE
Roosevelt won by a ton

5. Bonus Army

wanted money they were promised for serving in WWI
- 1.25 per day
soldiers peacefully protested
congress decided not to pay them
US military forces veterans out

6. Entertainment, sports, music, radio, movies and fads

similar to the '20s

7. Franklin Roosevelt’s background and accomplishments-Focus on New Deal

Born into a wealthy family
Relatives with Teddy
Married his 5th cousin Eleanor
Got involved in government at the federal level in WWI
Ran for democratic vice president in 1920 with James Cox (lost to Warren Harding)
Contracts polio in the early 1920's, people assumed his career was over, struggled to get his legs back and had to use a wheelchair
Was elected 4 times (32, 36, 40, 44)
Died a month into his 4th term of a cerebral hemorrhage

8. The Three R’s

Relief, Reform, and recovery
- relief for needy
- economic recovery
- financial reform

9. The difference between the First New Deal and Second New Deal

new deal
- restore nations hope
- help banks and stock market
- provide jobs and relief for the poor
- plan and regulate the economy
2nd
- pass new labor laws
- create and expand new deal agencies
- establish social security for older people and unemployed

10. Fireside chats

FDR speaking to people on the radio
- calmed people
- gave them hope

11. The Hundred Days

FDR promised to do a lot of things
In the first 100 days of his presidency, he got 15 major bills passed aimed at helping people get out of the depression

12. Deficit spending and “priming the pump”

deficit spending- take more money than we make
FDR put a lot of money into the economy by creating jobs

13. FDR vs the US Supreme Court-Court Packing issue

6 or less of the 9 from the supreme court FDR wasn't happy with
- they were slowing progress
wanted to add more younger judges

14. Critics and failings of the New Deal-Long, Caughlin, Townshend

some people thought that FDR was doing to much others thought he didn't do enough
reasons-
- created a very powerful president that led congress, this was a violation of checks and balances
- it was a radical departure from laissez faire ideals. created "big gov"
- some acts appeared interfering and at worst unconstitutional
- heavy debt burden- the US was engaged in deficit spending and this was unhealthy for the economy in the long run
francis townshed
- wanted to make sure old people could get money of some sort to survive
senator huey long
- take from the rich, give to the poor
- shot and killed by carl weiss because he didn't like his veiws

REVIEW

How did the new deal help?

unemployed
- FERA (federal emergency relief act)
  - gave $20 million in direct acid to unemployed
  - primary objectives
    - direct relief measures
    - provide work for people who could work
    - provide work relief programs
- PWA (public works administrations)
  - created many jobs
  - funded construction of many projects
    - airports
    - dams
    - aircraft carriers
- CWA (civil works administration)
  - too costly - paid high wages
  - funded construction projects
- WPA (works progress administration)
  - provided jobs for people doing construction
  - federal 1 gave helped those in artistic profession
    - produced concerts, bought art/music

NIRA (national industrial recovery act)
- created NRA to enforce codes
- codes of fair competition
  - supported prices and wages
  - stimulated economy
- encouraged businesses to follow codes, got blue eagle if did
  - dealt with hours of work
    - hours of work
    - rates of pay
    - fixing prices

young people
- CCC (civilian conservation corps)
  - gave men (18-25) jobs
  - $30/month, 40 hrs/week
    - planted trees
    - fought forest fires
    - minor construction projects
  - run by US army
  - "we can take it"
- NYA (national youth administration)
  - allowed young people to stay in school
  - young people were paid $10-$25/month for part time work
  - lived at home
  - worked on construction/repair projects
banks
- EBRA (emergency banking relief act)
  - temporarily closed banks
  - "bank holiday"
  - not as many runners after the bank holiday
- FDIC (federal deposit insurance corporation)
  - insured peoples money into banks
stock market
- FSA (federal securities act)
  - made stock market safer to invest in
  - goals
    - "required that investors receive significant info regarding securities being offered for public sale"
    - "prohibited deceit, misrepresentations and other fraud in the sale of securities to the public"
- SEC (securities and exchange commission)
  - regulates stock markets
    - made market more secure
factory workers
- NLRA/b(national labor relations act/board)
  - conducts elections for unions
  - stresses collective bargaining
  - investigates/fixes unfair labor practices
  - power in numbers
- FLSA (fair labor standards act)
  - minimum wage of 40 cents/hr
  - 40 hr work week
  - 1.5 times minimum wage for overtime
  - prohibited child labor
farmers
- AAA (agricultural adjustment act)
  - payed farmers to plant less to get prices down
  - payed to destroy some existing crops/animals to get prices down
  - helped them buy tractors
- Soil conservation and domestic allotment act
  - taught farmers to protect land/soil
    - plant trees, etc.
- TVA (tennessee valley authority)
  - generate electric power and control floods
  - helped farmers by not getting crops destroyed by floods
  - built dams
  - criticized by many because they had to pay to help 7 state region by the tennessee dam
- REA (rural electrification administration)
  - helped get power to farms and rural areas
  - rural households with electricity by 10% in 7 years
- FSA (farm security administration)
  - gave small/tenant farmers $ to buy farms
  - farmers didn't need helpers because they got tractors soo..
homeowners
- HOLC (home owners loan coporation)
  - prevented foreclosures
  - allowed people to extend loans from short (15 yrs) to 30 yrs
- FHA (federal housing administration)
  - insured loans for banks for people to build/buy a home
  - improve housing standards/conditions
  - provide adequate home financing system
- USHA (US housing authority)
  - designed to lend money to states/communities for low-cost home construction
  - mainly for low income/homeless people
elderly
- SSA (social security administration)
  - provides retirement, disability, and survivors benefit
  - gave monthly checks to elderly
consumers
- NIRA eagle codes
- FFDCA (federal food, drug and cosmetic act)
  - made sure products many people bought were safe
native americans
- IRA (indian reservation act)
  - got rid of dawes act
  - allowed them to keep and manage land
  - helped created jobs for indians

Blogs

January 25-29

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