Chapter 24 The Great Depression & New Deal

Black Tuesday October 29, 1929; the day the stock market crashed
Andrew Mellon Secretary of Treasury under Hoover; downplayed impact of financial troubles and described the benefits of the slump
Stock Market Crash leading cause of the Great Depression; caused by great disparity between rich and poor; October 29, 1929
Great Depression severe economic worldwide depression in the pre-WWII years; caused by stock market crash, agricultural recession, failing railroad and coal industries, major inflation, oligopolies, and stock speculation; led to closing of over 3000 banks, deterioration of public health, over 40 million job losses, and extreme agriculture failure
Herbert Hoover 31st president of the Unite States (1928-1932); believed in laissez-faire and rugged individualism; became president on cusp of Great Depression and did very little to help alleviate it
Reconstruction Finance Corporation agency established by Hoover in 1932 that was designed to make government credit available to ailing banks, railroads, insurance companies, and other businesses, hoping to stimulate economic activity
Election of 1932 election between FDR (Democrat) and Hoover (Republican); FDR received 472 electoral votes, Hoover received 59; this election pushed Hoover “from the White House to the outhouse”
Bonus Army army of WWI veterans who were promised $1000 bonus in 1924 legislation; gathered in Washington in 1932 to demand immediate payment in cash
Douglas MacArthur Chief of Staff general who led U.S. troops to evict veterans of Bonus Army from Washington
FDR 32nd president of the United States (elected 4 times); became president during Great Depression and helped to bring country out with New Deal (Relief, Recovery, Reform); grew up in Hyde Park, NY; attended Harvard and Columbia Law; state senator of NY; Wilson’s Secretary of Navy in 1913; contracted polio in 1921; governor of NY in 1928
Eleanor Roosevelt First Lady to use her prominence to fight for liberal causes; strong supporter of women’s rights and equality, anti-lynching legislation, compulsory health insurance, and child labor reform; helped to secure jobs for thousands of women through FERA; worked alongside Molly Dewson to get women more involved in political campaigns; author it “It’s Up to the Women”
Temporary Emergency Relief Administration agency set up when FDR was governor of New York to assist people during depression
Brain Trust FDR’s key advisers who followed him to Washington; they shared a faith in the power of experts to set the economy right and a basic belief in government-business cooperation; included Columbia law professor Raymond Moley, economists Rexford Tugwell and Adolf Berle, and attorneys Samuel Rosenman, Basil O’Connor and Felix Frankfurter
Fireside Chat radio broadcasts of FDR’s special sessions with Congress
Emergency Banking Act law passed by FDR that gave the president broad discretionary powers over all banking transactions & foreign exchange; enlarged federal authority over private banks and gave government loans to private banks
Hundred Days period of time (March to June 1933) in which FDR pushed many acts through Congress that were designed to combat the depression
Civilian Conservation Corps agency established in March 1933 as an unemployment relief effort, providing work for jobless young men in protecting and conserving the nation’s natural resources
Federal Emergency Relief Administration agency formed in May 1933 that directed federal money for relief, funneled through state and local governments
Harry Hopkins one of FDR’s most trusted advisers and influential figures who had been an experienced reformer in NY and administrator with a commitment to ending racial discrimination in relief work
Agricultural Adjustment Administration agency set up by FDR to provide immediate relief to the nation’s farmers; federal farm aid based on parity pricing and subsidy
Tennessee Valley Authority independent public corporation under FDR that provided economic development (dams, power plants, fertilizer) and cheap electricity to six southern states (Tennessee Valley)
National Industrial Recovery Act legislation of New Deal with 2 parts (NRA and PWA) that used self-regulating industrial codes to revive economic activity
National Recovery Administration part of NIRA that sought to stimulate production and competition in business by means of industrial codes regulating prices, output, and trade practices; led by General Hugh Johnson
Public Works Administration component of NIRA, led by Secretary of the Interior Harold Ickes, that funded public works projects (roads, buildings, etc.) to increase employment and consumer spending
Al Smith former presidential candidate (1928 against Hoover) and conservative Democrat who joined American Liberty League, denouncing Roosevelt and calling his New Deal “socialistic”
Francis Townsend retired California doctor who created an Old Age Revolving Pension plan; his plan called for payments per month to those over sixty years of age provided the money was spent within thirty days and was financed by a national tax on all commercial transactions
Huey Long popular governor/senator/orator from Louisiana who significantly improved public services and gained loyalty of state’s workers; organized the Share Our Wealth Society to limit the size of large fortunes and vowed to make “Every Man a King;” assassinated before becoming a presidential candidate
Father Coughlin Catholic priest in Detroit who attracted a large radio audience with his sermons attacking Wall Street, international bankers, and “plutocratic capitalism;” supported Roosevelt/New Deal at first but turned away because he was frustrated with his limited influence on the administration; founded National Union for Social Justice
American Liberty League group of conservative businessmen organized in 1934 that denounced FDR, his advisers, and his New Deal; dominated by wealthy executives, such as Du Pont and General Motors, and conservative Democrats like Al Smith
Emergency Relief Appropriation Act 1935 legislation of the Second New Deal that allocated $5 billion for large-scale public works programs for the jobless
Works Progress Administration agency of ERAA that employed over 8.5 million people for public works projects (roads, highways, buildings, parks, bridges, airports, etc.); led by Harry Hopkins
Social Security Act this 1935 legislation (Second New Deal) provided for old-age pensions and unemployment insurance
National Labor Relations Act in this 1935 legislation the federal government guaranteed workers the right to organize trade unions and collective bargaining; often called the Wagner Act
John Maynard Keynes Considered the father of modern macroeconomics, this British economist’s ideas of stimulating economic activity through government spending were used in FDR’s New Deal
Rexford Tugwell one of FDR’s brain trusters who led the Resettlement Administration; successful in efforts at creating model greenbelt communities combing the best of urban and rural environments
John L. Lewis this son of a Welsh miner became leader of the United Mine Workers and then co-founded the Committee for Industrial Organization at the 1935 AFL convention
Sidney Hillman leader of the Amalgamated Clothing Workers who co-founded the Committee for Industrial Organization at the 1935 AFL convention
Committee for Industrial Organization agency formed at the 1935 AFL convention whose goal was to organize mass production workers by industry rather than by craft; wanted to include blacks, women, and unskilled workers; led by John Lewis and Sidney Hillman
Frances Perkins graduate of Mount Holyoke College and veteran activist for social welfare and reform who became FDR’s industrial commissioner in NY before becoming secretary of labor and the nation’s first woman cabinet member
Election of 1936 election between Alfred Landon (Republican) and FDR (Democrat); major debates over New Deal and its effect; FDR won with 523 electoral votes, Landon had only 8
New Deal a series of economic programs implemented by FDR between 1933 and 1936 as a response to the Great Depression; focused on relief for poor/unemployed, recovery of economy to normal levels, and reform of financial system to prevent another depression
Dust Bowl period of severe dust storms causing much agricultural and ecological damage from 1930 to 1926 (western Kansas, eastern Colorado, western Oklahoma, Texas Panhandle, eastern New Mexico, etc); caused by severe droughts and extensive farming
Soil Conservation Service agency of the Department of Agriculture (led by Henry Wallace) which conducted research into controlling wind and water erosion, set up demonstration projects, and offered technical assistance, supplies, and equipment to farmers engaged in conservation work on farms and ranches
Bureau of Reclamation this agency of the Department of the Interior was established under the National Reclamation Act of 1902 to construct dams and irrigation works, thereby encouraging the growth of small farms throughout the arid regions of the West
Boulder Dam this project, begun by Hoover but not completed until 1935, was designed to harness the Colorado River, hoping to prevent floods, irrigate California’s Imperial Valley, and generate cheap electricity for Los Angeles and southern Arizona; later renamed the Hoover Dam
Federal Writers Project program of WPA that employed over 5,000 suffering writers for a variety of causes; most notably produced a series of state and city guidebooks entitled “Life in America”
Hallie Flanagan graduate of Vassar College who directed the Federal Theater Project; envisioned theater that confronted political issues
John Steinbeck author of “Grapes of Wrath” (1939) which sympathetically portrayed the hardships of Oklahoma Dust Bowl migrants on their way to California
Margaret Mitchell author of “Gone with the Wind” (1936) which is actually set during the Civil War in the South but still discusses the determination needed to overcome disasters
Sherwood Anderson author of “Puzzled America” (1935) which illustrates the psychological toll taken by unemployment
American Communist Party with only 100,000 members at its height, this political party believed its philosophy was “Twentieth-Century Americanism;” these people supported FDR’s New Deal, especially WPA projects and CIO unionizing drives; many were only interested because they thought it would bring a political revolution or because it opposed lunching, job discrimination, and segregation
Walt Disney filmmaker whose animated cartoons had become moral tales that stressed keeping order and following the rules; Mickey Mouse, “Snow White and the Seven Dwarfs” (1937)
Frank Capra this filmmaker’s comedies idealized a small-town America with close families and comfortable homes; his films also dealt with many contemporary problems, such s unemployment, government corruption, and economic monopoly; “Mr. Deeds Goes to Town” (1936), “You Can’t Take It with You” (1938)
Benny Goodman this white, classically trained clarinetist became known as “the King of Swing” after he introduced smoothed jazz music with a strong dance beat in his radio broadcasts; he also led one of the first racially-integrated musical groups
Schecter v. United States in this 1935 Supreme Court “sick chicken case,” the Court found the National Recovery Administration unconstitutional because of its excessive delegation of legislative power to the executive and the regulation of business that was intrastate instead of national
Butler v. United States in this 1936 Supreme Court case, the Court invalidated the Agricultural Adjustment Administration, declaring it unconstitutional at regulating agriculture (money given to farmers raised through illegal tax)
Black Cabinet a group of African Americans appointed to second-level positions in FDR’s administration; first called the Federal Council of Negro Affairs

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