1930s

• What was the economic situation in the US during the 1920s?

  The economy boomed with rising share values
• What fueled the development of buying on the margin in the 1920s?

  Speculators interested in long-term investment
• How much did US banks lend to speculators in the 1920s?

  $9 billion
• What happened in September 1929 that affected investor confidence?

  Investors began to lose confidence in shares
• What was the consequence of investors selling their shares in 1929?

  Value of US companies rapidly collapsed
• What was the Wall Street Crash?

  Network lost half its value in 4 days
• Why were the values of shares too high in the 1920s?

  Did not reflect the real value of companies
• What was a significant issue in farming and traditional industries during the 1920s?

  They were in decline throughout the decade
• What caused a lack of demand for goods in the 1920s?

  Poverty prevented people from buying goods
• What was a consequence of banks being weak during the 1920s?

  Banks lent too much money
• What were the effects of the Great Depression on the countryside and cities?

  Countryside:

  • Hardest hit by the depression
  • Income fell; many farmers went bankrupt
  • African American farmers faced worse conditions
  • Prolonged drought in South and Midwest

  
  

  Cities:

  • Rapid rise in unemployment
  • City workers searched for any work
  • Many ended up homeless in Hoovervilles
  • Children lived in tents on railway tracks
• Who were the main candidates in the 1932 election?

  Hoover and Roosevelt
• Why did Hoover lose the 1932 election?

  Refused to accept there was an economic crisis
• What was Hoover's response to the Bonus Marchers?

  They were shot during his treatment
• What did Roosevelt do during his campaign for the 1932 election?

  Embarked on a countrywide tour promoting the New Deal
• What was Roosevelt's approach to governance?

  Wanted an active government improving lives
• What were the two main aims of the New Deal?

  Tackle urgent needs of the poor and transform society
• What were the criticisms of the New Deal?

  Critics believed:

  • It was doing too much and complicated
  • Regulations hampered business
  • It wasn't doing enough for the poorest
  • High taxes discouraged hard work
  • It resembled communist plans
• Who was Huey Long and what was his stance on the New Deal?

  Democrat who initially supported, later criticized it
• What did Father Charles Coughlin do regarding the New Deal?

  Used his radio show to attack Roosevelt
• What was De Francis Townsend's proposal?

  Campaign for a $200/month pension for the elderly
• What were the main events of Roosevelt's Hundred Days?

  1. 4 March: Roosevelt inaugurated
  2. 5 March: Closed banks
  3. 9 March: Selected banks reopened
  4. 12 March: First 'fireside chat'
  5. 31 March: CCC set up
  6. 12 May: AAA passed
  7. 18 May: TVA created
  8. 18 June: NIRA passed
• What was one of the main achievements of the New Deal?

  Restored confidence in the banking system
• How did the AAA benefit farmers by 1936?

  Farmers were 50% better off
• What did the TVA accomplish?

  Brought electrical power to underdeveloped areas
• How many jobs did the PWA create?

  600,000 jobs
• What was the Supreme Court's reaction to the New Deal?

  Opposition from the Supreme Court emerged
• What was the Schechter Poultry Company's violation?

  Selling unfit chicken and exploiting workers
• What was the basis of the Schechter Poultry Company's appeal to the Supreme Court?

  Believed the NRA was unconstitutional
• How did Roosevelt react to the Supreme Court's decision?

  Asked Congress to appoint new sympathetic judges
• What were the criticisms towards FDR's actions?

  Felt he was attacking the government system
• How did the Supreme Court's stance change after Roosevelt's actions?

  Approved most of his New Deal measures later