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Chapter 12 causes of the great depression
Chapter 12 causes of the great depression
Franklin roosevelt the new deal
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Recommended: Chapter 12 causes of the great depression
Who: the entire United States
What: the bottom fell out of the market, and shareholders frantically tried to sell before the prices plunged. 16.4 billion shares were dumped that day. People who bough stocks on credit were stuck with huge debts, and others lost most of their savings.
Why: because panicked investors unloaded their shares at the same time
When: October 29, 1929 (by mid November investors lost about $30 billion)
Where: the stock market
Hawley- Smoot Tariff
Who: congress passed. Protect farmers and manufacturers.
What: established the highest protective tariff in US history. The tariff made unemployment worse in industries that could no longer export goods to Europe.
Why: to prevent other countries from earning American currency to buy American goods.
When: 1930
Where: united states
*Boulder Dam (aka Hoover Dam)
Who: Hoover authorized.
What: it gave jobs to unemployed workers. 726 ft high and 1,244 feet long. World's tallest dam, and second largest dam. Provided electricity and flood control, and regular water supply.
Why: to help the nation's economy and give jobs
When: 1928
Where: Colorado river basin
Federal Home Loan Bank
Who: Hoover signed
What: lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.
Why: to pass a series of measures to reform banking, provide mortgage relief, and funnel more federal money into business investment
When: 1932
Where: united states
Reconstruction Finance Corporation
Who: Hoover's idea. Approved by congress
What: authorized $2billion for emergency financing for banks, life insurance companies, railroads, and other large businesses.
Why: Hoover believed that the money would trickle down to the average citizen through job growth and higher wages.
When: January 1932
Where: united states
*Bonus Army (aka Bonus Expeditionary Force)
Who: between 10,000 and 20,000 war veterans and their families (one 11 month old baby and 2 people were killed, one 8 year old boy was blinded by gas)
What: President Hoover ordered 1000 soldiers under the command of Gneral Douglas MacArthur and his aide, Major Dwight D. Eisenhower, to rouse the veterans away
Why: he was nervous that the angry group could become violent
When: 1932
Where: Washington D.C.
New Deal
Who: FDR and his carefully picked team of advisers (professors, lawyers, and journalist) (they became the "Brain Trust"
What: was formulated to alleviate the problems of the Great Depression (three goals (3 R's): relief for the needy, economic recovery, and financial reform)
Why: to help alleviate problems during the Great Depression
When: during the 4 month waiting period of FDR's inauguration in 1933
Where: the united states
*Hundred Days
Who: FDR
What: a period of intense activity where FDR proposed (and Congress passed) 15 major pieces of New Deal legislation.
As a response to the calamity of the Great Depression, President Roosevelt sets forward the New Deal, a series of federal plans that began in 1933. It includes four primary goals: economic revival, job creation, public works investments and civic uplift. The First and Second New Deal have tremendous force during the Great Depression and extend its influences even up until the mod epoch.
When he took office, 'the nation was in the fourth year of a disastrous economic crisis' and 'a quarter of the labor force was out of work [and] the banks had been closed in thirty-eight states' (Greenstein 16). In order to remedy these problems and restore trust in the government, FDR enacted the New Deal in the Hundred Days legislation. Many of the programs created in the legislation are still around today in some form, continuing to show FDR's influence on the modern presidency. Such programs as the Works Progress Administration and the Tennessee Valley Authority helped poor Americans unable to get jobs or afford the luxury of electricity. These programs were some of the major reasons FDR was so popular during his terms in office.
The shares values had fallen and this left people panicking. Many businesses closed and several of the banks did not last because of the businesses collapsing. Many people lost their jobs because of this factor. Congress passed Roosevelt’s Emergency Banking Act, which helped reorganize the banks and closed the ones that were insolvent. Then three days later he urged Americans to put their savings back in their banks and by the end of the month basically three quarters of them reopened. Many people refer to the Banking Act as the Glass Steagall Act that ended up prohibiting commercial banks from engaging in the investment business and created the Federal Deposit Insurance Corporation. The purpose of this was to get rid of the speculations in securities making banking safer than before. The demand for goods were declining, so the value of the money was
In order to protect people’s benefits and provide a easeful life to people, Roosevelt started the New Deal followed his first inaugural address. When FDR gave his campaign speech at M...
People started selling their stocks at a fast pace; over sixteen million stocks were sold! Numerous stock prices dropped to fraction of their value. Banks lost money from the stock market and from Americans who couldn't pay back loans. Many factories lost money and went out of business because of
It started off with momentum and true intentions to jumpstart the economy. Various relief programs were enacted with intent to help those who could not help themselves, to ease the burden of such a low quality of life created by the Great Depression. Eventually though, the New Deal ran out of steam, people were still waiting for relief after several years. They started to question the effectiveness of the New Deal, itself. Roosevelt started to find himself and his board of experts running out of ideas to improve the economy. It was only after the New Deal when the economy finally started to right
This led to the concentration of wealth the top two percent of the US owned sixty percent of the money and the rest of the people were poor. Mechanization caused massive over production which put the US in a strain because of it’s lack of consumers. So they cut production and raised prices which was still ineffective. With food being too expensive work, and housing was scarce the poor were forced to make housing.
...ted to drop on the Stock Market. Investors’ worries were little at the beginning, but as it continued to drop, many investors started selling their shares. Eventually on Tuesday, October 29, the stock market crashed, as no buyers could be found at any prices for shares. This marked the beginning of the Great Depression (Gusmorino).
I still remember. Things started changing on a Thursday.“Three or four days before the Depression, on Thursday, October 24, 1929 12.9 million shared traded, in excess of 7.9 million shares. The system could handle 4 million, but not 12.9 million so people got frightened they would lose their money. People panicked and started selling. The ticker tapes were an hour and a half behind the market. By the end of the day, the market had fallen 33 points around 9%.On Monday, the market bounced back a bit, just enough for people to feel a sense of security, until the end of the day when high trading volumes also put too much pressure on the market. Down spiraled the market another 13%. On Black Tuesday, October ...
Coming into the 1930’s, the United States underwent a severe economic recession, referred to as the Great Depression. Resulting in high unemployment and poverty rates, deflation, and an unstable economy, the Great Depression considerably hindered American society. In 1932, Franklin Roosevelt was nominated to succeed the spot of presidency, making his main priority to revamp and rebuild the United States, telling American citizens “I pledge you, I pledge myself, to a new deal for the American people," (“New” 2). The purpose of the New Deal was to expand the Federal Government, implementing authority over big businesses, the banking system, the stock market, and agricultural production. Through the New Deal, acts were passed to stimulate the
President Hoover tried designed to jump-start the economy and add jobs. He wanted to reform banks to provide mortgage relief and spend more $423 million federal money into business investment. Congress decided to pass the Federal Home Loan Bank Act, whi...
FDR’s goal for the New Deal was expressed in three words: Relief, Recovery, and Reform. This was the idea that the ND would hope to provide the relief from the poverty-stricken suffering during the Great Depression. Recovery planned to put the country back together and restore the market’s financial issues, the jobs or the people, and their confidence. Reform provided permanent programs to avoid another depression and to ensure citizens against an economic disaster. The Progressive Movement which targeted urban complications, there was a massive disparity between the wealthy and the poor and the goal was to bring equality into the nation. The movement aimed towards removing corruption and including American citizens into the political process. Additionally, to enforce the government to solve the social issues that were occurring in the late 1800’s and early 20th century, all while balancing impartial treatment into the economic
But economically, Roosevelt and his “brains trust” had no idea what they were doing. They attempted one failed intervention after another. The Great Depression was a disaster, and sadly an avoidable one.” (Edwards, 2005)
President Franklin D. Roosevelt’s New Deal was a package of economic programs that were made and proposed from 1933 up to 1936. The goals of the package were to give relief to farmers, reform to business and finance, and recovery to the economy during the Great Depression.
On Tuesday, October 29th, 1929, the crash began. (1929…) Within the first few hours, the price fell so far as to wipe out all gains that had been made the entire previous year. (1929…) This day the Dow Jones Average would close at 230. (1929…) Between October 29th, and November 13 over 30 billion dollars disappeared from the American economy. (1929…) It took nearly 25 years for many of the stocks to recover. (1929…)