HISTORY: MODULE 7

How did World War I affect the economy of the 1920s?

WWI boosted production and profits, but after the war, demand dropped. Europe owed huge debts, and the global economy became unstable as countries struggled to rebuild.

Were all sectors of the U.S. economy prosperous during the 1920s? Why or why not?

No. While industries like automobiles and construction boomed, farmers and workers in older industries suffered from falling prices and overproduction.

What was the Stock Market Crash? Did it cause the Great Depression?

The crash of 1929 was a rapid fall in stock prices that destroyed wealth and confidence. It didn’t cause the Depression by itself but triggered and worsened it.

What caused the Great Depression? (World War I? Gold Standard? Federal Reserve Decentralized banking?)

Caused by WWI debts, the rigid gold standard, weak global banking systems, poor Federal Reserve policies, and uneven wealth distribution.

How did World War I contribute to the onset of the Great Depression?

WWI left countries with heavy debts and dependence on U.S loans. When the U.S. economy faltered, international trade and credit collapsed.

 What caused the collapse of the international financial system that was set up after World War I?

Countries relied on loans and reparations tied to the gold standard. When the U.S. cut lending and markets shrank, the whole system fell apart.

How did countries respond to the Depression in ways that made it worse?

Nations raised tariffs, reduced trade, and cut spending, which deepened the global downturn instead of helping recovery.

How did Herbert Hoover respond to the Great Depression?

He relied on voluntary charity and limited government aid. His Reconstruction Finance Corporation helped banks and businesses but not struggling families.

How did Franklin D. Roosevelt respond to the Great Depression?

FDR launched the New Deal, using government programs to create jobs, regulate banks, and restore confidence. His fireside chats lifted public morale.

How was the United States able to remain a democratic country rather than turn to communism or fascism? (Hint: This question connects to multiple parts of the lesson.)

FDR’s leadership, the New Deal programs, and open communication with citizens gave people hope and stability, preventing extremist movements.

In the Yawp section, what is the main theme? What was the overall goal of the programs implemented by FDR’s administration?

The main theme was recovery and reform. The goal was to stabilize the economy, provide relief to Americans, and prevent future crises.

Could FDR pass legislation on his own, or did he need Congress?

He needed Congress. Most New Deal laws were debated, amended, and approved by Congress during his First Hundred Days.

What did a business have to do in order to display the NRA’s Blue Eagle?

It had to follow fair labor codes-- offering decent wages, reasonable hours, ending child labor, and allowing workers to unionize.

What did “red revolution” mean?

It referred to a communist uprising or revolution. The U.S. feared this during the Depression, but the New Deal helped prevent it.

What is a property-owning democracy?

It’s a society where most citizens can afford to own homes and have a financial stake in the economy.

Why did the United States want to create a property-owning democracy?

To promote stability, prevent radical movements, and give people hope and responsibility through home ownership.

How did the United States create a property-owning democracy?

The government created the Federal Housing Administration (FHA), which made home loans safer and more affordable through insurance and long-term mortgages.

What is redlining?

It was the practice of denying or limiting loans in certain neighborhoods-- often those with Black or minority residents-- by marking them in red on maps.

What group was excluded?

African Americans and many other minorities were excluded from FHA loans and other housing benefits.

What were the consequences of that exclusion?

White families gained wealth through home ownership, while Black families were left in poor, underfunded areas-- creating long-term racial wealth gaps.

What is the National Archives?

It’s a federal institution that preserves government documents and records, ensuring transparency and access to history.

When was it established, and who worked to create it?

Created in 1934 during FDR’s New Deal. Works Progress Administration (WPA) workers and archivists helped organize and preserve federal records.

How do the National Archives and its holdings demonstrate that the United States remained a democratic country during the Great Depression?

Democracies preserve and share their history-- even the dark parts. The Archives prove America valued openness and accountability instead of censorship.

What signs might indicate that a country is no longer democratic?

Signs include censorship, destruction or hiding of records, persecution of dissenters, and loss of free speech or fair elections.