Study Review

I. Intro- The US plunges into a nationwide depression when the stock market crashes in 1929. Americans all over are greatly effected.

II. Causes
 
    A. over speculation (Define, how important)- Instead of investing in the future of a company people would invest their money betting that the stock market would keep rising. Caused people to invest heavily in stocks during the 1920s.

     B. Govt Policy- The government started to give, or invest, money to the banks to try and save them from closing.

     C. Unstable Economy- The economy started to become unstable and thousands of people lost their jobs and became unemployed.
          1. Uneven prosperity-"Rich got richer, poor got poorer" The factory workers did not money to even buy the products that they made, so the factories lost money.

          2. Overproduction- Factories produced too many goods that no one needed causing them to lose money and lay off workers.

          3. Worker issues / farm issue- Thousands of workers were laid off causing mass unemployment. Farmers in the great planes were hit by the Dust Bowl killing all their crops and also lost almost all business in Europe. 

III Effects

     A. Poverty- stock market crashed leaving many Americans in debt, couldn't pay mortgages, soup kitchens only way of getting food.

     B. Society- majority of America in debt/poverty stricken, economy extremely low, and entertainment became huge part of American life.

     C. World- America couldn't provide their share in trade for foreign countries, Germany and other countries involved with US trade went into debt and couldn't provide for Britain, who then couldn't provide for US, all countries involved with US in debt.

IV Solutions

     A. Hoover- Republican president, favored prohibition, was not popular among American people towards end of presidency

          1. Volunteerism- Hoover set up soup kitchens and other things that people could volunteer for to help people in need.

          2. Public Works- Government-financed building projects, construction increased, government would potentially have to raise taxes to pay for projects, hurt struggling businesses.

          3. Hawley Smoot- Raised huge tariffs, aimed to protect manufacturers from foreign competition, decreased trade.

          4. RFC- Reconstruction Finance Corporation, made loans to banks, railroads, agriculture, didn't increase loans in the right amounts to meet the need, economy continued to decline.

     B. Roosevelt- president, had polio as a child, developed policy to end Depression- New Deal, many started to oppose New Deal, began deficit spending, New Deal ended 1939.

          1. New Deal- Roosevelt's policy to end the Depression, thought to be too much by conservatives, thought to be not good enough by liberals.

                    a. alphabet soup- The term used to refer to the agencies and programs that Roosevelt created in his New Deal.

                    Example: CCC- Civilian Conservation Corps was used to find men between the ages 18 and 25 recruit them for paid labor.

                    Example: TVA- Tennessee Valley Authority built dams and power plants across the South to improve industry.

                    Example: NRA- National Recovery Agency controlled industry, production, and regulated fair competition.

                    Example: CWA- Civil Works Administration provided jobs on construction sites.

          2. 2nd new deal- Roosevelt was reelected and used his time to make more reforms.

                    a. - WPA or Works Progress Administration held huge construction projects to give people jobs.

                    b. - CIO or Committee for Industrial Organization set out to help industrial unions.

                    c. - NLRB or The National Labor Relations Board held elections to try and create new unions.

V Criticism- Lots of people said that we did not have enough money.

     A. Political Criticism- Democrats, bankers, and wall-street financiers, who claimed that it doled out too many federal hand-outs.

     B. Conservatives- Critics began to fear the idea of the evolving programs and policies because they believed they would lead America towards socialism and destruction.

     C. Liberals- Criticized the new deal also. They said he was doing socialist things by making socialist programs.

VI Effectiveness

     A. Change in US- Roosevelt altered his policies in order to assist the American need for federal relief assistance. More programs to help stabilize America.

     B. Unions- Got stronger and re-adjusted to peoples needs.

     C. Culture- People became smarter with their money and what they should spend it on. 

VII Conclusion- Hoover and Roosevelt try to save America from the Great Depression, but even with valiant efforts it lasts until 1939 when WWII begins. The stock market crash caused the US to make new reforms to help the economy and the US work force.