1. 1. NEW DEAL 2. DEMAGOGUE 3. DUST BOWL 4. WELFARE CAPITALISM 5. NATIONALIZATION 6. WAGNER ACT 7. REVENUE 8. HUNDRED DAYS 9. SOCIAL SECURITY 10. HOOVERVILLE A. A leader who manipulates through scare tactics B. A period of drought and storms C. Period at the start of FDR’s presidency D. Makeshift shelter for homeless E. Conversion to gov’t ownership F. Plan of relief, recovery and reform G. Government income H. Provides money for those who cannot support themselves I. Law that helped unions by legalizing collective bargaining J. Companies meet workers’ needs without Union prompting

2. What were 3 cultural changes that occurred during the Roaring 20’s?

3. Chapter Objectives:  Danger Signs  Stock Market Crash  Social Effects  Dust Bowl  Election of 1932  New Deal

4.  Wonderful Prosperity: economy seemed healthy – stock market surged, higher wages, & unemployment low  Welfare Capitalism: raised wages, paid vacations, health insurance  Public had high confidence in business  Lots of investment in stock market

5.  Uneven Prosperity: rich got richer  Buying on Credit: increase in personal debt  Speculation: making high- risk investments, hoping for a high gain  Buying on margin: Buying stock by borrowing on future gain  Too many goods: demand dropped at the end of the 1920’s

7.  Dow Jones Industrial Average : average of stock prices of major industries  Black Thursday: 1 st drop in stock market; bankers were able to contain damage  Black Tuesday: stock market collapse – October 29, 1929  Those who heavily invested in the stock market lost everything

8.  Ripple effect: produced economic chaos throughout the world for many years  Income and profits fell causing factories to close  Banks close: people rushed the banks to take out their money; many could not return their customers’ money  Global effects: when the US economy collapsed, it hurt the global economy

9.  Overspeculation : the stock market boom was based on borrowed money, not real value  Government policies : interest rate cuts to encourage growth and cuts in money supply to limit lending  Unstable economy: wealth unevenly distributed, more goods produced than sold, & farmers did not enjoy the economic boom

10.  The number of jobless people rose dramatically  Many suffered from poor diet & medical care  “relief gardens”  Black unemployment soared.  Many hispanics & Asian- American were deported  Justice system ignored rights

11.  People pulled together to help each other.  Communist party & Socialists offered promises of fairer distribution of wealth  Humor helped people: - Hoover flag: turned out pocket - Hoover blanket: old newspaper  Prohibition repealed: 21 st amendment  Construction of the Empire State Building

13.  Hoover’s attempts to fix depression failed. - Voluntary Action - Help the rich first – trickle down theory - Hawley-Smoot Tariff: highest import tax in history (1930)  Most blamed Hoover for allowing the Depression to continue

15.  Former governor of New York  Genuine compassion for ordinary people  Planned to use programs begun for relief in New York at the national level - unemployment commission - relief administration  Won the election of 1932 by 7 million votes

16. Refers to the 1 st 100 days Of FDR’s presidency Provide ReliefCreate Jobs Stimulate Economic Recovery

18.  FDR’s first step was to restore confidence in the nation’s banks.  Closed all banks for 4 days  Emergency Banking Act: allowed the government to assess the health of all banks  Assured Americans that the banks were safe  FDIC: insures deposits up to $5,000. ($100,000 today)

19. Federal Emergency Relief Agency (FERA) Provided money to local relief agencies Civil Works Administration (CWA)Gave jobs building roads, parks & airports Civilian Conservation Corps (CCC)Gave jobs to unmarried men w/ lodging & meals National Industrial Recover Act (NIRA) Goal to stabilize economy through planning Securities & Exchange Commission (SEC) Regulates the stock market Agricultural Adjustment Administration (AAA) Tried to raise farm prices through government assistance Tennessee Valley Authority (TVA)Provided cheap electricity, flood control & recreational opportunities to the Tennessee Valley area

20. Wagner Act (1935):  Legalized union practices  Outlawed spying on unions & blacklisting  Set up the National Labor Relations Board Social Security System (1935):  Old age pensions & survivor’s benefits  Unemployment insurance  Aid for dependent children, blind, & disabled people

21. LIMITS  Men & boys favored over women  Did nothing to end discrimination in the North  Limited success in ending poverty TOO MUCH  New Deal went too far  Programs like socialism  High taxes for rich

22.  Beginning in 1935, the Supreme Court began striking down New Deal programs  FDR developed a strategy for gaining Court support.  The Constitution did not limit the number of Justices on the Supreme Court  FDR proposed to increase the Court to 15 Justices that he would appoint to support his programs

23. Alphabet Soup Quiz 1. SECURITIES & EXCHANGE A. COMMISSION (SEC) 2. AGRICULTURAL ADJUSTMENT ACT (AAA) 3. TENNESSEE VALLEY AYTHORITY 4. CIVILIAN CONSERVATION CORP (CCC) 5. CIVIL WORKS ADMINISTRATION