Terms - Great Depression Lack of diversification in...

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Great Depression Lack of diversification in industries more profits were put back into production than wages Milton freedmon (monetary funds were not available), which is where there is a bad distribution of wealth across the nation Focused on auto and construction Herbert Hoover - president in 1928, was Coolidge’s secretary of commerce. Did a good job as president, but couldn’t overt the stock market crash in 1929. Market crash, October 29, 1929 – “black Tuesday” Cause of the Great Depression. Bank & business failures 1922 US had about 30,000 banks they went down to about 14,000. Many banks failed after crash. Thought system would correct its self over time. Still on the gold standard so the country could not produce more money Unemployment 1932 employment was 25% in some cities unemployment was 80% 1/3 of American farmers lost their land the drought (dust bowl) didn’t help. Blacks migrated and caused more population in towns and cities. Reconstruction Finance Corp, 1932 – government agency whose purpose was to provide federal loans to troubled banks, railroads, and other businesses. Never had enough money to make a real impact, and didn’t even spend all its money. Popular Front – a broad coalition of “antifascist” groups on the left which the most important was the American Communist Party. The subordination of the party leadership was shown when the nonaggression pact was signed and sent orders to US to abandon the popular front. Bonus Army – marched into Washington, built crude camps around the city and promised to stay until Congress approved to pay the bonus to war veterans. Chased them down and injured 100, ended up
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hurting Hoover’s image. Franklin D. Roosevelt (FDR) Only President to be elected 4 times. First to make use of the radio; Fireside chats First goal was to alleviate the panic threatening to create chaos in the financial system. Helped build public confidence in the administration. New Deal, 1933 - tried to approach same ends by preventing future problems of that type from occupying. FDR 1933 March, his advisors had 3 main strategies to how about going about addressing the countries problems 1) cracking down by adding more regulations 2) foster more business and government cooperation 3) Add programs that add direct welfare benefits to the public that were severely affected by the depression. (was not used) ***to reap the benefits you had to be on the payroll*** Glass-Steagall Act – To curb irresponsible speculation by banks. Established the FDIC and included banking reforms. Federal Home Loan Banks (Savings & Loans) - provide stable, on-demand, low-cost funding to American financial institutions for home mortgage loans , small business, rural, agricultural, and economic development lending.
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