Great Depression and New Deal Study Guide:
Causes/Effects of the Great Depression: widespread banking failures. The banks invested people’s money in the stock market and created major losses.
Goals of the New Deal- three goals: relief for the needy, economic recovery, and financial reform
Causes of the Dust Bowl
The Bonus Army
The Crash of 1929
Herbert Hoover- was the president at the start of the great depression. He was the republican nominee but he realized later that he had no more he could do.
Franklin D. Roosevelt- was the democratic nominee for office against President Hoover; he was known popularly as FDR, a two-term governor of New York and a distant cousin of former President Theodore Roosevelt.
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If the bank could not pay their debts, they had to stay closed. | Tennessee Valley Authority- Focused on Tennessee River Valley; Renovated five existing dams and constructed 20 new ones. Created thousands of jobs, and provided flood control, hydroelectric power, and other benefits to the region. The TVA helped farmers and created jobs in one of America’s least modernized acres. | Federal Deposit Insurance Corporation- Established through the Glass-Steagall Act to reorganize the banking system. Provided federal insurance for individual bank accounts of up to $250,000. Reassured millions of bank customers; Required banks to act cautiously with their customers’ money. | Home Owners Loan Corporation- Provided government loans to homeowners who faced foreclosure because they couldn’t meet their loan payments | Federal Securities Act- | Glass-Steagall Banking Act- Commercial banks were accused of being too speculative in the pre-depression era. Banks became greedy, taking on huge risks in the hope of even bigger rewards. Banking itself became sloppy and unsound loans were issued to companies in which the bank had invested. The Act set up a regulatory firewall between commercial and investment bank activities-- both of which were curbed and controlled. Banks were given a year to decide on whether they would specialize in commercial or in investment banking. Only 10% of commercial banks’ total income could