Unit 5 Test Review PPT

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UNIT 5 TEST REVIEW

THE DUST BOWL

A series of droughts, in the Great Plains, in the early 1930s dried up crops and topsoil, turning the soil to dust

Lasting for a decade, heavy winds carried topsoil across hundred of miles, burying homes and destroying harvests

Farmers were forced to abandon their farms

Many moved west to California (over 1M were forced from their land)

CAUSES

Overproduction – manufacturers were

producing more goods than they could sell (cars, radios, appliances, etc.)

Speculation – more and more people

were speculating in the stock market in hopes of “getting rich quick”

Many began buying on margin (getting loans from a bank or stock broker)

People also speculated in Real Estate

PRESIDENT HOOVER AND THE

DEPRESSION

Remained true to laissez-faire capitalism, despite the spiraling economic problems

Rejected demands for the government to provide unemployment to the needy

Believed this would reduce the incentive to work and that private organizations should provide

emergency relief, not the government

The Federal reserve made matters worse by reducing the money supply, not increasing it and for allowing banks to fail

THE DEPRESSION BEGINS

THE STOCK MARKET CRASH – October 29, 1929

On October 24, stock prices began moving

– sharply downward

Top bankers bought stocks above current market prices to try to

– stop the rapid decline

By October 29, stock prices kept falling faster and faster, prices were at an all-time low, and the market crashed

CAUSES CONTINUED…

Restricted International Trade – American tariffs were enacted to protect American markets

Tariffs made it hard for producers to sell overseas, since other countries retaliated by setting high tariffs of their own

In 1930, President Hoover signed the highest tariff in U.S. history

The shrinking of world trade contributed to the

Great Depression

CONTINUED…

With less demand for labor during the

Depression, white Americans sought jobs filled by Mexican-American immigrants

Hostility grew toward Mexican immigrants

It was more difficult to enter the U.S.

Hoover authorized the Mexican Repatriation Act to send Mexican-Americans back to Mexico (over half a million were forcibly returned, rather legal or not)

CONTINUED…

These policies were seen as too little, too late, and his lack of leadership frustrated most

Americans

Shanty towns of homeless families and the unemployed became known as “Hoovervilles” and sprang up on the outskirts of many cities

By the end of Hoover’s term, about 100,000 businesses failed and unemployment reached 13 million (25%)

Many Americans began losing faith in democracy

IMPACT OF STATE & FEDERAL GOVERNMENTS

Power of federal government increased

Government had a positive responsibility to make sure the national economy ran smoothly and efficiently and made it possible to control citizens’ private actions

Taxes rose dramatically to fund new gov’t programs

States implemented their own versions of New Deal policies

Established a legacy of gov’t. agencies, regulations, and procedures that remain with us today

THE SUPREME COURT AND THE NEW DEAL

Posed the greatest threat to the New Deal

Ruled that both the NIRA and AAA were unconstitutional

In Schechter Poultry v. U.S. (1937), the Supreme

Court ruled that even during a national crisis,

Congress can not give the President more powers than those granted in the Constitution

Fearing the court might declare other New Deal legislation unconstitutional, FDR proposed a plan to allow the President to add a new appointment to the Supreme Court for each justice over 70 ½ years old.

CONTINUED…

The plan, if adopted, would have given FDR the right to appoint 6 Justices, giving him control over the court.

It was viewed by many as an attempt to upset the traditional separation of powers

Despite his popularity, the public condemned this move and Congress rejected it

After this challenge to the court, the justices generally stopped overruling New Deal legislation

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