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Drhoepr Oduct I Ons0772155794
Drhoepr Oduct I Ons0772155794
BOOM,
DEPRESSI
ONANDRECOVERY drhoepr
oduct
ions0772155794
[Nov2003]
102.[a]
.Stat eanyf i
v ecausesoft heGr eatBoom i ntheUni tedSt atesofAmer i
ca(USA)1919-1929.
Gr eatindust rial expansi onoft hel ate19t hcent ury
USAenj oy edv ictor yofWor ldWar1
Republ icangov er nmenteconomi cpol i
ciesencour agedeconomi cgr owt h
Mechani zationi ncr easedpr oduct ivi
ty
Themot orcari ndust ryst i
mul atedexpansi oni nanumberofal li
edi ndustri
ese.g.roadbuil
ding,
tyr
es,
garages, bat t
er i
eset c
Introduct i
onofhi r epur chasesy stem
Repay mentofdebt sbyal li
edf or cest ot heUSA
Tar i
ffsy stem hel pedt hedomest icmar ketbydi scouragi ngi mpor tsetc
[
b]Out li
net hef eat ur esoft heGr eatBoom i ntheUSAbet ween1919and1929
Count ryr eturnedt onor mal cyaf tertheWar
Industrial product ionsi ncreasedt ounpr ecedent edlevels, sameassal es,profi
tsandwages
Radi oset s,ref riger ators,washi ngmachi nes, vacuum cl eaner s,mot orcarswer eint
roduced
Hol l
ywoodFi lmi ndust rymadehugepr of i
tsandexpor tedi tspr oductswor ldwide
Far mersnotshar i
ngi nt hegener alPr osper i
tyi.e.pri
cesoff arm pr oducef ullandprofi
tsdi
vided
Blackpopul at ionl ef toutofpr osper i
ty
Blackl abour er sl aidof f
Blackhadt osuf fert heper secut ionoft heKl uxKluxKl an
Increasedi ngangv iolenceandcr imebecauseoft hepr ohibition
Industryi ncreasi ngl ymonopol i
zedbyl arget rustsorsupercooper ati
on
Thei ntroduct i
onofhi repur chasehel pedpeopl etobuymor egoods
Commer cial av iationi ncreased
[
c]Towhatext entdi dt heAmer icanbenef itfrom thisBoom?
Standar dofl iv
ingi mpr ov ede. g.washi ngmachi ne, r
adioetc
Easyt r
anspor t-
mot orcar s
Indust r
iesi mpr ov ede. g.Hol l
y woodFi lmindust ry
Howev erf armer snev erbenef ited
Priceoff arm pr oducef ellandpr ofitdwindled
Blackpopul ati
onl ef toutofpr osper it
y
Increasei ngangst erism andv iolence
[
Jun2004]
103.[a]Li stanyf i
v emeasur est akenbyFr anklinDRoosev el
ttodealwi
ththeGreatDepr
essi
on
TheBanki ngAct1933
Farmer sRel iefAct1933
Secur it
yExchangeCommi ssion1933
Nat ional Recov eryAct1933
Agr icultur alAdjust mentAct1933
Publ icWor ksAdmi ni strationAct1935
CivilianConser vationCor ps1935
Soci al Secur i
tyAct1935
WagnerAct1935
Tennesseev al
leyAut hor ity1935
[
b]Descr i
bet hewor koft heTennesseeVal leyAut horit
y(TVA)
TheTVAbui ltdamsont her i
v erTennesseet oprovidehydroel
ectr
icpower(HEP)
Irr
igat ionwaspr ov ided
Ref or estat i
ont opr ev entsoi l er osi
on
Damsbui lttocont rol fl
oods
Cheapel ect ri
cal powerbecameav ail
able
Empl oy mentcr eat i
on
Prev ent ionofl anddegr adation
Creat i
onoft i
mberi ndust ry
Encour agedwi l
dlifemanagementasf orestat t
ractedwildl
if
e
Ally earagr icult
ur et hroughi r
r igati
on
Dev el opmenti ndust ri
es( secondar y)development
1
USA:
BOOM,
DEPRESSI
ONANDRECOVERY drhoepr
oduct
ions0772155794
[
Nov2004]
104.[
a].
li
stanyfi
verel
iefmeasuresi
ntroducedbyFDRoosev
eltaspar
tofhi
sNewDeal
.[
5].
[
b].Descr
ibetheworkof:
i
.TennesseeValleyAuthori
ty
i
i.TheNat i
onalI
ndust
rialRecov
eryAct[NIRA]
.
[
C] .
Howsuccessf ulwer et heseagenci esi nsol vingthepr oblem ofunempl oymentintheUni t
edSt at
esof
Amer icaby1939?
[
a].
Emer gencyBanki ngAct
TennesseeVal leyAut hor i
ty
CivilianConser v ati
onCor ps
Agr icultur alAdj ustmentAdmi nistrati
on
Far m Cr editAdmi ni str
ation
Nat ional Recov er yAdmi ni strat i
on
Wor ksPr ogr essAdmi nistrat ion
i
.[b].TennesseeVal l
eyAut hor it
y
Rev italisedahugear eaofr ural Amer icawhi chhadbeenr uinedbysoi ler
osionandcar el
essfarming
Itbui ltdamst ocont r
ol f
loodsandgener ateel ectri
cit
y
Itor gani zedconser vati
onpr oject s
Irr
igat ionpr ojectionswer eunderway
Af f
or estr ati
ont opr eventsoi ler osionunder taken
i
i[b]Nat ional Indust rialRecov er yAct [NIRA] .
Ittriedt ogetempl oy ersandempl oyeest odr awupacodeofpr acti
cetoimproveindustr
ialr
elati
ons
Itimposedcodesofpr oduct ionandpr actices
Itest abl i
shedmi nimum wages
Mi nimum hour sofwor kwer eal soset
Itabol i
shedchi ldl abour
Italsogav ethewor kerst her ightt of or mt radeuni ons
Ittriedt ogetpeopl et owor kper manent lysoast oincreaset heirbuyi
ngpower
Empl oy erswhoaccept edt hecodesuggest edi ntheactcoul ddisplaya‘Bl
ueEagle’signand
gover nmentencour agedpeopl et obuyf rom suchcompani es
[
c].Howsuccessf ul wer et heseagenci esi nsol vingthepr oblem ofunempl oymentintheUSAby1939?
NIRAwasdomi nat edbybi gbusi nessandser vedtheirint
er estsprovi
dingli
ttl
erel
i
effortheunempl oyed
By1939onl y1/ 3oft heunempl oyedhadgotj obs
In1935t hesupr emeCour tdecl aredNI RAt obeunconst i
tutionalasitgavetoomuchpowert othe
president
Howev er ,
By1939unempl oymenthadf al l
enby5mi l
lion
Irr
igat ionpr ojectsunderTennesseeVal leyAut hori
tygener atedempl oyment
Conser vat i
onpr oject sal soabsor bedt heunempl oyment
2
USA:
BOOM,
DEPRESSI
ONANDRECOVERY drhoepr
oduct
ions0772155794
[
Jun2005] .
105.[
a].
Stat
et hefiv
epr esi
dent
sofUSAbet
ween1919and1933
Woodr owWi lson
War r
enHar ding
Calvi
nCoolidge
HerbertHoov er
Frankl
inDRoosev el
t
[
b].
Whatpr oblemswer efacedbyUSAbet ween1919and1933.
Farmersdidnotshar eint hegeneralpr
osperi
tyoft heGreatboom, pr
icesoff
arm pr
oducef
ell
,far
mer
s
pr
of i
tsdwindled.
Blackpopulationlef
toutoft heprosperi
ty
Blacklabourerslai
doff
Blackssufferedthepersecut i
onsoftheKuKluxKl an
Ani ncr
easei ngangv i
olenceandcr i
mebecauseoft heProhibit
ion
I
n1933gov ernmentadmi tt
edfail
urebyabandoningt heprohibi
tion
I
ndust r
yincreasingl
ymonopol i
sedbylarget
rustssuper -
corporations
Greatdepressionsandassoci atedprobl
ems.
[
c].
Towhatext entwerethesepr
oblemssuccessful
l
ydealtwithdur
ingthi
sper
iod?
[
i]Theprohibit
ion
Br
oughtmor ecrisesandhadtobeabandoned.Itcr
eatedmor epr
oblemsandcreat
edcr
imi
nal
sfr
om
ot
herwisedescentci t
izens
[
ii
]Hoov er
’sattempttoeaseadverseef
fect
soft hedepressi
onPage101of111
Encour
agingemployer
snott oreducewagesandl
ayof
fwor ker
s
Lendi
ngmoneyt obanks,indust
ri
ali
stsandf
armer
stosavethem fr
om bankr
upt
cy
Beganworkschemest oreli
eveunemployment
However,
Hoover’
spolici
esmadel it
tl
eimpactont
heprobl
emsf aci
ngtheUSA.
[
ii
i]Roosevelt
’sNewDeal:
NewDeal di
dnotachi
eveal
lthathadbeen
Unempl oymentremai
nedaseriouspr
oblem
Farmlabourersweret
hrownoutofwork
Howev er:
ThenewDeal achiev
edmuch
Initsearl
ydaysitschiefsuccesswasinrel
ieffort
hedesti
tut
eandj obl
essandinpr
ovi
sionofmi
l
li
ons
ofjobs
Conf i
dencewasr est
oredinthegov er
nmentandprevent
edav iol
entrevol
uti
on
TheTVApr ovi
dedservicesoflast
ingval
ue
Nev erbefor
ehadAmer i
cangov er
nmentint
ervenedsodir
ectl
yintheliv
esofordi
nar
ypeople
[
Jun2006]
106.[
a].I
dent
ifyanyfiv
eef fect
soft heGreatDepressi
onintheUSA,
1929t
o1932.
Inf
lati
on
Unempl oymentslumpi nindustr
ialandagr i
cul
tur
alproduct
ion
Closureofbanksandot herf
inanciali
nsti
tuti
ons
Closureofindust
ries
Collapseofstockmar ket
[b].
Out li
net hestepst akenbyHer bertHoovertosolvetheproblemsoft heDepr essi
oni ntheUSA.
Cutt axeswi ththehopet hatthepubl i
cmoneywoul dbeusedt obuymor econsumergoods- cars,
clothing,furnit
ure,foot wear
Hopedt hatmor ewoul dalsoforcefactori
estoproducemor egoods
Raisedcust omsdut iesoni mpor t
edgoodst oprotectAmericanI ndust
ry
Setupt heReconst r
uct ionFinanceCor por
ate,
1932t ogiv
egov ernmentl oanstoagricult
ureandi ndust
ry
Mor atorium ofJune, 1931, al
lowedt hepostponementofallgov ernmentdebtst oUSAf oray ear.Lat
er
3
USA:
BOOM,
DEPRESSI
ONANDRECOVERY drhoepr
oduct
ions0772155794
[b].
Outli
net hesoci aleffectsofthePr ohibi
ti
oni ntheUSA
Dri
nkingbecameanat ionalobsession
Racketeersandgangst ersfl
ourished
I
nChi cagoAICaponeandhi sthugsgr ewr i
chont heproceedsofbootl
eggi
ng[makingandsel
li
ngof
alcoholicdrink]
.Bootlegger sactuall
yhadar miesandbecameal awuntothemselv
es
Speakeasies[il
legaldrinkingsalons]mushroomedal l
overandthepeopl
ebegant odri
nkdangerous
home- madel i
ket hesocal led‘gi
nandi t”or“j
ack-ass’BRANDY
Therewasagener alrebelli
onagai nstt
hedr earyoldti
mes-womenespecial
lynowsmoked, dr
ank,drov
e
cars,discussedsexopenl y,dr
essedashor ttightdresses
Prost
ituti
on
Drugdealing
Gambl i
ng
[
c].
Towhatext entdi dPr ohibitionachiev eitsaimsi ntheUSAupt o1933?
Legall
ytheUSAwas“ dry“ofal cohol i
cbev er
agebuti nreal
it
yitwasthe“
wet
test
”ithadev
erbeen
Drunkennessandgangst er i
sm flouri
shed
Tendencyt odr i
vepeopl eawayf r
om per sonal r
esponsibil
it
y
Actwasev ent uall
yrepeal edi n1933becauseofi tsdisast
rouseff
ect
s
Aim wast odoawaywi thal coholicdrinks.Thiscompl etel
yfail
ed.
ThePr ohi
bitioncr eatedmor eproblemst hanittr
iedtosolve
HOWEVER,
AICaponewasar rest
edf ort axev asion
Somer uralar easofAmer icaaccept edt heAct
Thepassingoft heActwasast epint her i
ghtdirect
ion
Therewasani niti
aldeclinei nconsumpt ionofalcohol
[
Nov2007]
108.[a].Nameanyf iveUSAPr esidentsbet ween1900and1933.
Woodr owWi l
son, War renHar di
ng, Calvi
nCool i
dge,Fr
ankli
nDRoosev elt,TheodoreRoosevelt
,McKinl
ey,
Will
iam Howar dTaf t
[
b].Descr ibetheGr eatDepr essionint heUSA.
InSept ember1929t hebuy ingofshar esatt heStockExchangeinWal l
street
,NewYor kbegant osl
ow
down
ByOct ober24, 1929t her usht osellshar esreachedpanicproport
ionsandshar epri
cesfel
ldramati
cal
ly
Manypeopl einfinancial di
ffi
culti
esr ushedt othebankstodr awouttheirsavi
ngsthatthousandsof
bankshadt oclosedown
Demandsf orgoodsf ell
Fact orieshadt ocloseandunempl oymentr osealarmingl
y
USAr educedi tslendingoff oreigncapi tal
Wor l
dt rade[forUSA] fell
andpr icescol l
apsed
Far mer ssufferedenor mousl y
Wor kers’wageswer ecutascapi tali
stsst r
uggledtoregai
npr of
it
s
4
USA:
BOOM,
DEPRESSI
ONANDRECOVERY drhoepr
oduct
ions0772155794
TradeUni onunrestspr
eadasemployer
stri
edtosuppr
esslabouror
gani
sat
ions
Thegreatcr ushshatt
eredt
heconf
idenceofinv
est
orsandconsumers
Homel essness
Suffer
ingofNegr oes
[
Nov2009]
111[a].
Identif
yanyf iv
ef eaturesoftheRoar i
ngTwent i
esintheUSA.
Newmachi nesr evoluti
onisedconst ruct
ionindustrye,
gpowershov el
s
Improv edcommuni cationsegdi alphones,automat i
cswi t
chboar
ds
Consumergoodsi ndust r
iesboomedasnev erbef ore
Moder atelypr i
cedr oadse, gradios,cameras,wristwatches
Mot orcar sincreased
Surfacer oadsi ncreased
Telephonesi nhomes
Masspr oducedmot orcar s
Womendr ivi
ngcar s
Int
roduct i
onofj iv
edances
Mini -
skirtswor nbywomen
Milli
onsempl oy ed
Cinemaexper i
encedbi gat tendances
Emanci pat i
onofwomen
Decreasei nunempl oy ment
[
b].
Descr i
bet hePr ohibit
ionof1919.
Prohibiti
onwasi ntr
oducedbyt heVolsteadActof1919
I
tpr ohibit
edt hesaleandmanuf act
ureofalcoholi
cdr i
nkst hroughouttheUSA
TheActal sopr ohi
bitedthet r
ansportat
ionofalcoholicdrinks
I
twasaddedt otheAmer icanconst i
tuti
onasthe18t hAmendment
Pressur egr oupssuppor t
edbyt heNati
onalProhibit
ionpar t
ywant edt oanddr unkenness
ThePr ohibiti
onl edtothecr eationofshebeensandi ll
ici
tbrewandt oxicbrandy
Sell
ingpoi ntswer egivendifferentnamese,g“speakeasi es”andBoot leggers”
Thel awwasf loutedandr acketeersandgangstersf l
ourished
I
nChi cagoAICaponeandhi st hugsgrewrichfrom thepr oceedsofboot leggi
ng
Alcohol i
ct radedr i
venunder ground
[
c].
Howsuccessf ulwast heUSAgov ernmentinenf or
cingt heProhibi
tion?
6
USA:
BOOM,
DEPRESSI
ONANDRECOVERY drhoepr
oduct
ions0772155794
[June2011]
113[a].
Giveanyf i
ver el
iefmeasur esint
roducedbyF.D.Roosev
eltt
odealwi t
htheprobl
emsoft
he
Depressioni ntheUSA.[ 5]
-Emer gencyBanki ngAct
-FederalEmer gencyRel i
efAdmi nist
rat
ion(FERA)
-CIVILConser v ationCor ps( CCC)
-Wor ksPr ogressAdmi nistr
ation( WPA)
-NationalRecov eryAct (NIRA)
-TennesseeVal l
eyAut hor it
y(TVA)
-Agricul
tureAdj ust mentAct (AAA)
[B].
Outli
net hemeasur est akenbyF. D.Roosev el
ttodealwi
thagri
cul
tur
e,unemploy
mentandsoci
al
securit
y.[12]
7
USA:
BOOM,
DEPRESSI
ONANDRECOVERY drhoepr
oduct
ions0772155794
-Agr icul turalAdj ust mentAct (AAA) _gav especi al assi st ancet of armer switht heai m ofi ncreasingtheir
earnings
-Farmer sgi vensubsi di esandencour agedt or educeout put
-Soil Conser vationAct ,1935, Repl acedt heAAApr ogr ammeandenabl edgov er nmentt ocont i
nue
subsi disi ngf armer swhocutt heirpr oduct ion
-CivilianConser vationCor ps(CCC) -
pr ov i
dedconser v ationwor kf orunempl oy edandhomel esspeopl e
-Feder al Emer gencyRel iefAdmi nistr ation( FERA) -Gav emoneyt ost atestohel punempl oyedand
homel esspeopl e
-Soci al Secur i
tyAct ,1935- USA’ sf ir
stsy stem ofsoci al wel fare.Itsetupanat ional system ofol d-age
pensi ons, prov idedhel pf orpeopl ewi thphy sical disabi liti
esandneedychi ldrenandputi nplaceasy stem
ofunempl oymenti nsur ance
[c]
.Howsuccessf ul wasRoosev eltindeal ingwi tht hesepr obl ems?[ 8]
-Ov erpr oduct i
onendedandpr icesr osei nagr icul tur et hr ought heAAA
-CCCpr ovidedunempl oy mentt osev er aly oungmenandmi ll
ionsoft reeswer epl anted, r
eservoirs,f
orest
roadsandcanal swer ebui l
t
-CWAandWPA- school s,roadsandai rpor t swer ebui lt.Thousandsofwr i
ters,act orsandar ti
stswer e
empl oy edoncr eatedpr oj ects
-Soci al wel fareguar ant eedt ot heol dt heneedy
-Gov er nmentwascr iticisedf orpay ingf armer st opr oducel ess
-Reducedpr oduct ioni nf ar msl eftpeopl ewi thoutwor kespeci allythebl acks
-Manypeopl ewer eputwor konl i
ttlev alue
[Nov2011]
114[a] .Gi veanyf i
vecausesoft heWal l Streetcr ashi nt heUSA1929[ 5]
-Ov erpr oduct i
onofgoodsl eadi ngt oov er suppl yoft hemar ket
-Slowi ngdownoft rade
-Asl umpi nshar epr icesl ackofconf idencei nt hest ockmar ket
-Pani cbyshar ehol der s( sol dt heirshar es)
-Acuti npr oduct i
on
-specul at i
on- r
el yi
ngoncr edi t
-t hel aisser -f airepol icy
[b]
.Out l
inet heef fect soft heWal lSt reetcr ashandt heGr eatDepr essi onont heUSA.[ 12]
-Debtandbankr upt cyspr eadi nal ldi rect ions
-Lackofconf i
dencei nt hest ockexchange
-Thev alueoft heshar eshadl ittl
edi r ectr elationt ot hei ndust ri
est heyr epresent ed
-Failur et opaydebt sandmor tgages
-Wi thdr awal ofsav ingsf rom banks
-Somebanksandf i
nanci alhousescl oseddown
-Fewergoodssol dinshopsl eadi ngt ocl osur eoff act or i
es
-Greatunempl oy mentf igur esr ecor ded.By1931t heUSAhadal most8mi l
li
onunempl oyed
-Recessi oni nt rade
-Squal idcondi tionsofl ifeanddemandf orgov er nmentai d
-Strikesanddemonst rat i
ons
-Peopl ewi thsav i
ngsi nbanksl ostt hei rmoney
-Farmer swer eev i
ct edwhenbanks, shor tofcash, triedt ogetbackt heirloans
-Risei nsui cidecases
-Blacksuf feringi ncr eased
-Democr atswonpoweri nUSA.
Social i
llse, gdr ugabuse, prost itution
[c]
.Towhatext entwaspr esi dentHoov erabl et odeal witht heef fectsoft heGr eatDepr ession?[ 8]
-Mai nt ainedapol i
cyofnon-i nt erference( laisser -faire)
-Setupapr ogr ammeofpubl icwor ksandunempl oy mentr elief
-Mushr oomi ngof‘ Hoov er vi
lll
es’ iesqual i
dshel tersbui ltbyunempl oy edex-ser vicemeni nWashi ngton
-Mostbanksandf act or i
esr emai nedcl osed
-Unempl oymentf i
gur esr emai nedhi gh
-Risei nsui cidecases
-Hight ar if
fsoni mpor tedgoods