New Deal Quiz

Dow Jones Industrial Average

A stock market index tracking major U.S. companies; its sharp decline after 1929 symbolized the economic collapse of the Great Depression.

The Bonus Army

World War I veterans who marched on Washington in 1932 demanding early payment of bonuses; dispersed by force under Hoover, damaging his reputation.

Problems in Industry

Overproduction and low wages in the 1920s caused factories to cut jobs, weakening the economy before the crash.

Farming

Farmers faced overproduction, falling prices, and debt throughout the 1920s, leaving agriculture in crisis before 1929.

Consumer Issues

Unequal wealth distribution meant most Americans could not afford goods, worsening overproduction and economic instability.

Credit

Easy access to loans encouraged debt and risky spending, making the economy vulnerable to collapse.

Election of 1928

Herbert Hoover won the presidency, promising prosperity shortly before the economy collapsed.

Speculation

Investors gamble on rising stock prices

Buying on Margin

Purchasing stocks with borrowed money; increased losses when stock prices fell.

Black Tuesday

October 29, 1929; massive stock sell-off that marked the symbolic start of the Great Depression.

Bank Failures

Thousands of banks collapsed as people withdrew savings, destroying personal wealth and credit.

Hawley Smoot Tariff

1930 tariff that raised import taxes; worsened the Depression by reducing international trade.

Shantytowns

Makeshift communities built by homeless Americans during the Great Depression.

Hoovervilles

Shantytowns named sarcastically after Hoover, symbolizing public anger toward his leadership.

Dust Bowl

Severe drought and poor farming practices caused dust storms that devastated Plains farmers.

Hoboes

Migrant workers who traveled the country searching for jobs during the Depression.

Families during the Depression

Families pooled resources, delayed marriage, and relied on charity to survive economic hardship.

Children during the Depression

Many children worked, dropped out of school, or suffered malnutrition.

Psychological effects

Widespread feelings of shame, despair, and loss of faith in capitalism and government.

Rugged individualism

Hoover’s belief that individuals and private charities should solve economic problems, not the federal government.

Federal Home Loan Bank Act

1932 law that provided low-interest loans to mortgage lenders to prevent home foreclosures.

Reconstruction Finance Corporation

Hoover-era agency that loaned money to banks and large businesses to stabilize the economy.

Franklin Roosevelt

Elected president in 1932; introduced the New Deal and expanded the role of the federal government.

Bank Holiday

Temporary closure of banks in 1933 to stop bank runs and restore confidence.

Emergency Banking Relief Act

Allowed only financially sound banks to reopen after the Bank Holiday.

FDIC

Federal Deposit Insurance Corporation - Federal program that insured bank deposits to prevent bank runs.

NIRA

National Industrial Recovery Act - New Deal law that regulated industry wages, prices, and hours and supported labor unions; later ruled unconstitutional.

CCC

Civilian Conservation Crops - New Deal program that employed young men in conservation and public works projects.

AAA

Agricultural Adjustment Acts - New Deal program that paid farmers to reduce production to raise crop prices.

WPA

Workers Progress Administration - Major New Deal program that created millions of government jobs building infrastructure and supporting the arts.

NYA

National Youth Administration - New Deal program providing jobs and education aid to young Americans.

Huey Long

Populist critic of FDR who proposed the Share Our Wealth plan to redistribute income.

Father Charles Coughlin

Radio priest who criticized banks and later attacked the New Deal from a populist perspective.

Social Security Act

1935 law that created pensions for the elderly, unemployment insurance, and aid for the disabled.

Roosevelt and the Supreme Court

FDR’s conflict with the Court over New Deal laws, including his failed court-packing plan.

Sit Down Strike

Labor tactic where workers occupied factories to prevent replacement workers, strengthening unions.

Evaluating the New Deal

The New Deal provided relief and reform but did not fully end the Depression.

Election of 1932

FDR defeated Hoover amid widespread dissatisfaction with the economy.

Election of 1936

FDR won reelection in a landslide, showing strong public support for the New Deal.

Election of 1940

FDR won a third term, breaking the two-term tradition during global instability.

Election of 1944

FDR was elected to a fourth term during World War II.

Fireside Chats

Radio speeches used by FDR to explain policies and reassure the public.

Deficit Spending

Government spending more money than it collects to stimulate economic growth.

Critics of the New Deal

Conservatives argued it expanded government too much; radicals argued it did not go far enough.

Supporters of the New Deal

Supporters believed it saved capitalism and helped Americans survive the Depression.