16 293 Andrew Mellon secretary of the treasury introduced the trickle down economics theory in order to promote business andincrease money available for speculation 294 Farm crisis agricultural depression as precursor to thedepression unheeded omen of problems in the economic structure prices too low too much supply for the demand 295 Causes of the depression rise in stock prices and speculation decline of construction industry mistaken trickle down economics reliance on credit Stock market crash 1929 stock prices fell drastically without buyers the stocks became essentially worthless cause bank crashes c 296 Hoover s policy of voluntarism emphasized importance of private charities to help the depression Hoovervilles sets of cardboard box houses that epitomized thecountry s blame on Hoover for the cause of the Depression 297 Bonus Army veterans from WWI sought their pensions beforethey were too old to use them they were denied and were run outof Washington violently by MacArthur 298 Reconstruction Finance Corporation RFC attempted to boosteconomy by making loans to banks and insurance companies hoping to restart them 299 President Franklin Roosevelt introduced his New Deal wonelection by a relative landslide he was not Hoover whom the public now did not trust New Deal FDR s plan although vague during the campaign torestart the economy and pull America out of the Great Depression Brain trust FDR s inner circle of experts rather than just politicians in the cabinet 300 Hundred days accomplished great number of relief recovery and reform efforts sought practical solutions to the problems byexperimentation Emergency Banking Relief Act four day banking holiday tocreate controlled inflation followed by reopening of sound banks and reorganization of unsound banks 301 First New Deal Programs 1933 35 improved but notrecovered economy a National Industrial Recovery Act NIRA National RecoveryAdministration NRA prevented extreme competition labor management disputes and over production federallycoordinated consensus of business leaders Hugh Johnson toregulate businesses wages limits working conditions b Agricultural Adjustment Act AAA subsidies to farmers todecrease production and thus increase prices c Tennessee Valley Authority TVA hydroelectric power toriver valley brought social and economic development to very poor area d Civilian Conservation Corps CCC employed young joblessmen with government projects on work relief and environment e Federal Emergency Relief Act FERA provided more fundsto state and local relief efforts f Public Works Administration PWA Harold Ickles provided public construction projects g Federal Deposit Insurance Corporation FDIC insureddeposits 5000 reassured American public of the worth of banks 302 Second New Deal Programs 1935 38 reform minded more political a Social Security Act of 1935 SSA used withheldmoney from payrolls to provide aid to the unemployed industrial accident victims and young mothers principle of government responsibility for social welfare b Works Progress Administration WPA HarryHopkins provide work for unemployed and construct publicworks c through Emergency Relief Appropriation Act muchlike Civil Works AdministrationKSJ 2006 17 c Wagner Act National Labor Relations Act collective bargaining rights closed shops permitted where workers must join unions outlawed anti union tactics d Fair Labor Standards Act banned child labor established minimum wage 303 Keynesian economics philosophy that deficit spending during adepression would increase purchasing power and stimulateeconomy FDR disagreed with the policy at first and borrowedmoney to cover deficits 304 Indian Reorganization Act 1934 halted sale of tribal lands enabled tribes to regain unallocated lands repealed DawesSeveralty Act of 1887 helped secure Indians entry into New Dealassociations led by John Collier 305 Frances Perkins Secretary of Labor first female cabinetmember 306 Butler v U S killed the AAA although FDR insisted oncontinuing by creating smaller state level AAAs 307 Schechter v U S unconstitutionalized the NRA due to delegationof legislative authority from Congress to executive 308 Court Packing Judiciary Reorganization Bill FDR s attempt to put in extra judges who would support him without doubt 309 Okies and Arkies Americans who were forced out of their homes in Oklahoma and Arkansas respectively due to the duststorms and drought known as the Dust Bowl 310 Deportations of Mexicans nationalists against foreign non English speaking workers took jobs away from American men encouraged to leave the U S 311 Critics of FDR Father Charles Coughlin benefited only wealthy people and corporations Huey Long share our wealth FrancisTownshend Old Age Revolving Pension 312 Split of AFL in 1935 loss of members due to new following of CIO and discrimination 313 Congress of Industrial Organizations CIO created by John L Lewis for unskilled labor organized sit down strike against GMto work for recognition 314 Dorothea Lange hired to photograph ordinary Americansexperiencing the depression World War II 1920 1945 315 Good Neighbor Policy withdrawal of American troops fromforeign nations especially Latin America to improve internationalrelations and unite western hemisphere Clark Memorandum rebukes the big stick peaceful resolution of Mexican oil fields 316 Isolationism in 1920s 1930s Americans concerned witheconomic depression sought to avoid European involvement noapparent immediate threats 317 Neutrality Acts 1935 37 prohibited aiding of belligerent nations banned civilian involvement limited power of president duringinternational war built up armed forces 318 Quarantine Speech 1937 FDR encouraged democracies toquarantine their opponents economic embargos criticized byisolationists 319 Neutrality Act 1939 allowed sale of weaponry to democracieson cash and carry basis avoided full blown war danger zones proclaimed solved American unemployment crisis 320 Four Freedoms speech FDR asked for increased authority toaid Britain freedom of speech expression of religion from want from fear resulted in Lend Lease 321 Lend Lease Act 1941 President to offer military supplies tonations vital to the defense of the US ended US neutrality economic war against Germany Hitler began to sink Americanships limited scale 322 Pearl Harbor Japanese bombing of ships in harbor resulted inFDR s request for declaration of war against Japan Germany andItaly responded with declarations of war 323 First American strategy in