Great Depression & New Deal

Causes of G.D.

* Economic downturn starts in 1927

* Spent faster than wages rose, bought on credit, manufactures cut back

* Stock Market Crash

o $30 Billion lost overnight

o Exposed weakness in the economy

o Farm products sold at low cost

o RRs and Coal industries went into bankruptcy

o Unequal distribution of wealth

* Impact on Banks

o Invested Private money in the market

o Closed their doors

Aftermath of the Crash

* GDP fell, consumption dropped

o 9,000 banks failed; 100,000 businesses went under

* Hawley-Smoot Tariff; highest protective tariff ever

o International and national economy shut down

o Worldwide depression

President Hoover

* His "Final triumph over poverty"

o Volunteerism

o Maintain wages and production

* Failures of the Hoover administration

o "American Way" Direct relief verse private charity

o Reconstruction Finance Corporation (RFC) Too cautious, Dem's against

o Federal Farm Board

o "Bonus Army"

FDR and the New Deal

* FDR Elected in 1932

* 20th Amendment; moved inauguration to January (because of Hoover)

* From classical to regulatory, to "Social Welfare" liberalism

o Financial and bureaucratic resources of the state and federal government to help individuals and business

o New Deal and the "Hundred Days"

* First action: The Banks

o Temporarily closed all banks; Bank Holiday

o Emergency Banking Act: Inspected all the banks

o Glass-Stegall Act created the federal deposit insurance corporation (FDIC)

* 21st Amendment; repeals Prohibition

* FDIC

* CCC: Roosevelt's answer to the environmental and economic challenges facing the country

* TVA: Southern Dem's and Progressives

* AAA: Agricultural legislation was "the key to recovery"

* NIRA and the NRA

* FERA

* PWA

* CWA

* SEC

Attacks of FDR & New Deal

* From Republicans

o "Liberty League" Lobbied against all the spending of the "Socialist" new deal

* From Democrats

o FDR not going far enough

o Francis Townsend and Old Age revolving pension plan

o Francis Charles Coughlin, the "Radio Priest" wanted to nationalize banking

* From Supreme court

o NIRA Unconstitutional

o Struck down by AAA

Second New Deal

* Revenue act of 1935

o Increase taxes on corporate profits and wealthy citizens

o Put money in hands of consumers

* Wagner Act

* Social Security Act

* Works Progress Administration

	Created by Trinity Manning over 7 years ago

APUSH Amsco Unit 7 ch. 24