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Immigrants During The Depression
-With less demand for workers during the depression, white Americans sought after jobs filled by Mexican Immigrants
-Public hostility for Mexicans grew which made it difficult for them to enter the U.S.
-Hoover authorized the Mexican Reputation Act to send Mexicans back to Mexico due to lack of jobs -
Great Depression
When panicked sellers traded nearly 16 million shares on the New York stock exchange
-Corporations could no longer raise funds
-In 1990, 15% was the lowest unemployment rate
-People had fought for their daily survival. Banks failed & many people were out of work.
-The money supply growth caused by huge international gold influence was a crucial source of the recovery of the U.S. economy
-People were hungry & went homeless. -
Stock Market Crash
The stock market crash of 1929 (Black Tuesday) was largely caused by bad stock investments, low wages, a crumbling agricultural sector & high amounts of debt that couldn't be liquidated. Upward trends in the stock market caused many people to invest money even if they didn't have the financial assets to back up their investments.
A: Explain Buying on the Margin
-Buying on the Margin became so popular that by late 1920s "90% of the purchase price of the stock was being made with borrowed money" -
Stock Market Crash C
That it wasn't the Federal Govts. jobs to try & resolve.
C: After the crash people tried to withdraw their $$ from banks. Couldn't because banks invested their $$ in the stock market.
-By 1933 11,000 of the nations 25,000 banks had failed. -
Stock Market Crash B
-The U.S. economy had come to depend on that activity. Before the crash, nearly cents of every dollar loaned in America was used to buy stocks
-Buying on the margin is the purchase of art asset by paying the margin & borrowing the balance from bank or broker
B: Return to normalcy. A return to the way of life before WW1
-Americas first plan. Meanwhile President Herbert Hoover urged patience & self-reliance he thought the crisis was just a passing incident in our national lives. -
William Randolph Hearst
-He was a leading supporter of Franklin D. Roosevelt in 1932 but then broke with FDR and became his most preeminent enemy
-Franklin D. Roosevelt New Deal however to vigorous opposition to the Presidents policies on taxes trust and labor and Hearst became stridently conservative -
20th Amendment
Causes officials called "lame ducks" would take advantage and pass laws
-What did it do legally: It cut off all chances to pass of change laws unlawfully changed the beginning and ending of terms of the elected Federal Officials
-Effects: It stopped "lame duck" session -
21st Amendment
-In 1933 the 21st amendment to the constitution was passed and ratified ending national prohibition.
-After the repeal of the 18th amendment some states continued prohibition by maintaining statewide temperance laws. -
The Gold Standard
-Gold and Silver were traded
-Use of the Gold standard came to an end in 1933 when President Roosevelt issued and executive order outlawing the ship of Gold
-But Roosevelt wanted people to rely on paper money (fiat money) in order to expand the money supply and stimulate economic activity -
Period: to
New Deal
-Roosevelt blamed the bankers selfishness and financiers for current crisis
-Roosevelt passed through legislation which is hard in less critical times
-All the important bills submitted in these 1st 100 days Roosevelt explained the New Deal measures as the 3 R's Relief, Recovery, & Reform
-The New Deal change the Govt. how since the New Deal the Govt. has started to take care of U.S. it provides social security & medicare for older people, runs the FDIC to insure our banks deposits & lower taxes -
Period: to
First Term of Franklin D. Roosevelt
-His positive approach and charm help him defeat Herbert Hoover in Nov. 1932
-Depression was the only issue of consequence in the campaign Americans had to choose between unsuccessful policies from Hoover who claimed Roosevelt would intensify the disaster
-The company was in depression no jobs or homes Franklin took office & declared 4 day bank holiday and urged Americans to put back savings
-Famous quote "only thing to fear is fear itself" meaning fear only made things worse -
Tennessee Valley Authority
-Built 21 Government owned dams along the Tennessee River
-Controlled flood and produced electricity
-Some feared it as a form of socialism
-Reform of the New Deal PART OF THE 3 R'S -
Federal Deposit Insurance Corporation
-The FDIC provided federal insurance for individual bank accounts of up to $5,000 reassuring millions of Bank Customers that their money was safe
-Congress and the President also worked to regulate the Stock Market in which people had lost faith because of the crash of 1929
-The FDIC was part of Roosevelt's New Deal the 3 R's (Relief, Recovery, and Reform) -
Gold Reserve Act
-United States had a bi-metallic system of money
-Silver was also traded
-Gold Standard came to an end in 1933 when Roosevelt issued and Executive order outlawing the ownership of gold besides jewelry
-Roosevelt wanted people to rely on "flat money" (Paper Money) -
Huey Long "Share Our Wealth"
-Was a democratic Governor of Louisiana opposed to the New Deal b/c he believed Roosevelt's plan didn't help people living in poverty after the Great Depression
-His plan wanted to take money from the wealthy and give to the poor.
Assassinated Sept 10, 1935 -
Sec/New Deal
-The securities and exchange commission act was created to review over the stock markets, prevent fraud and guard against other stock markets collapsing
-The long term effect of this passage is that they maintain efficient markets and protect investors
-This gives investors common sense to buy in or not
-This is Roosevelt's reform legislation -
Reform of the new deal social security
-Social security was probably the most important measure of the New Deal. It provided workers with unemployment insurance old age pensions and insurance if they died early. Workers and their employers each paid New contributions to find these benefits in part of Roosevelt -
Migrant Mother
-She focused her photography career on the basic necessities of life, migrant workers, children, & mothers.
-Her career helped raise funds by federal agencies. It also helped draw attention to the desperate conditions in rural America & helped to underscore the need for direct relief. -
Judicial Procedures Reform Bill
-Roosevelt proposed a plan to allow the President to add a new appointment to the Supreme Court for each justice over 70% years old
-The plan would have given Roosevelt the right to appoint six justices giving him control over the court
-His "court-packing scheme" was widely viewed as an attempt to upset the traditional separation of powers
-Roosevelt's New Deal the power of the federal government moved beyond the regulatory role it had under the progressive -
AAA (Agricultural Adjustment Act)
-Gave farmers Government payment to grow farmer crops
-Smaller supply of crops this would increase demand for those crops and this would help farmers earn money
-It's purpose was to improve & preserve National soil resources. Also prevent it from eroding.
-Long term effect was to help keep the pricing of crops stabilized -
Robert A. Taft
-Taft was elected to the U.S. Senate in 1938 he opposed and denounced FDR's New Deal said that it had socialist trends. Taft's Plan called for economy in government a balanced budget and less centralization of power in the national capital -
Dust Bowl
-Drought is a part of a weather circle, naturally occuring on the Great Planes
-Farmers from TX to N.D. used tractors to break up the grasslands & plant millions of acres of new FarmLand
-Dust traveled hundreds of miles, plagued by dust storms & Evictions, thousands of farmers & share croppers left their land behind
-By the end of the 1930s hundreds of thousands of farm families had migrated to Cali & other Pacific Coast States -
Grapes of Wrath
Author- John Steinbeck
Okies- Where natives from Oklahoma forced to move due to drought and farm foreclosure in the 1930s to California using Route 66 to seek better jobs
-Migrant hopes vs. reality- people came from all around the U.S. with the hope of a better life and better jobs but only came to find even more property or if not already poor they became poor