Great Depression American History

Why did women face resentment in the workplace during this time?

They were seen as taking a job away from a man who needed to provide for his family.

How did people cope with losing their jobs and homes?

They found community and spent more time with their families. They played games, listened to the radio, played card games, etc.

What was the impact of the dust bowl on farmers?

Crops went bad (no nutrients in dust), farmers lost their source of income, migrated to California/ West coast to work for others (normally picked grapes) and were called "Oakies"

Impacts of dust storms

It interrupts everything, people cannot see or breathe, people cannot go out and farm

Primary areas of Dust Storms

Oklahoma, Texas, Kansas

Latino/African American Struggles

Latino: Mass deportation for illegals

AA: More unemployment

Farmer Struggles

Not receiving enough money for farms (people aren't buying crops), foreclosures

Penny Auction

Farm auctions during the Great Depression at which neighbors saved each other's property from foreclosure by bidding low

Why does the dust bowl occur?

droughts, overplowing (grass is gone) so wind picks up dirt and dust storms occur

How does the Great Depression affect the family unit?

Went back to trad values (stuck together) OR broke apart

Psychological toll of men

Couldn't provide for family = not a "real man"

Would move town to town for jobs and would get chased out

Consequences of roamers

Crime, desperation, families back home suffer

Why did women work together during this time?

Men were gone, so they only had each other to rely on ("power of friendship")

Why did women avoid being considered "poor"

No one wants a poor woman

Wanted to get a rich man to help their situation

Affect of GD on Kids

horrible diets, education, welfare programs, etc

no teachers (not getting paid) = no school = no education

Hoover tourists

Teenagers who abandoned their families, got on freight trains, and toured the nation to escape poverty, find adventure, and/or work

Impact of Hoover Tourists on Society

Can cause trouble, be harmed by roaming men, idea can spread, can die

social/psycological effects of GD

Depression, mental hospitals 3x as full, people pull together, problems mainly in cities

Dust Bowl

A drought in the 1930s that turned the Great Planes very dry.

Breadline

line of people waiting for food handouts from charities or public agencies

soup kitchen

place where food is provided to the needy at little or no charge

shanty town

a neighborhood in which people live in makeshift shacks

direct aid

the giving of money or food by the government directly to the needy

Why were there more problems in cities than on farms?

On farms, people could grow their own food

Why are textiles, railroads, and steel "key industries"?

Other industries built off them…

Railroads: transport goods + people

Textiles: cloths

Steel: buildings + machinery + weapons

Why is the housing market a good economic indicator?

People need houses; a lot of industries rely on them (ie. refrigerators, furniture, electricity, etc)

Why do farmers suffer after WW1?

Demand for crops has decreased, the government is not setting prices, and they aren't selling to Europe anymore.

Why does foreclosure hurt the banks as much as the farmers?

They lose money on unpaid loans and may have to sell the seized property at a loss. It hurts farmers by taking away their land and livelihood.

What was the McNary-Haugen bill?

the government would buy surplus crops at guaranteed prices and sell them on the world market (unsuccessful because vetoed by Coolidge)

What does the vetoing of the McNary-Haugen bill tell us about the national government?

They thought the economy was going to fix itself/ "Farmers are always poor"

Stock Market Crash of 1929

October 1929

*Investors began to panic during late October 1929, creating tremendous losses in the stock market

*On October 24, 1929 (Black Thursday), the Dow Jones Industrial Average dropped fifty percent and over 13 million shares of stock were traded

*On 29th, (Black Tuesday), over 16 million shares of stock were traded

*The crash led to the Great Depression

Why does the widening of the income gap concern people?

Less people are rich, more are poor; rich people can only buy so many things, economy suffers.

How does excess credit affect spending habits?

It makes people want to buy more due to the: "buy now, pay later" ideaology

How does Hoover convince people to elect him over Smith?

promoting his pro-business policies, support for individualism, and promise of continued prosperity. Smith's Catholic faith and opposition to Prohibition also hurt his campaign.

Dow Jones

The average price of 30 selected industrial stocks, used as a measure of general market trends

Stock Market

A system for buying and selling shares of companies

Buying on margin

the purchasing of stocks by paying only a small percentage of the price and borrowing the rest (loans for stocks)

Speculation

An involvement in risky business transactions in an effort to make a quick or large profit

How does speculation and buying on margin affect the stock market?

inflates stock prices artificially, creating a market bubble. When prices drop, investors face huge losses and mass sell-offs, leading to market crashes.

Why does black Tuesday cause such a problem?

the massive stock sell-off led to plummeting prices, wiping out billions in wealth. This triggered bank failures, business closures, and widespread unemployment, fueling the Great Depression.

What is the "fall of dominoes" that led to the Great Depression?

stock market crash → bank failures → business closures → mass unemployment → reduced consumer spending → deeper economic decline.

Why does the great depression spread worldwide?

Europeans were borrowing money from US banks to help rebuild from WWI or pay reparations.

Cause of Great Depression

fear caused people to act recklessly

Price support

the government would buy surplus crops at guaranteed prices and sell them on the world market

credit

the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Alfred E. Smith

He was the Democratic presidential candidate in the 1928 election. He was the first Catholic to be elected as a candidate.

Hawley-Smoot Tariff

charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliation

What industry was not in trouble before the Stock Market crash?

Automobiles

Herbert Hoover

Republican candidate who assumed the presidency in March 1929 promising the American people prosperity and attempted to first deal with the Depression by trying to restore public faith in the community.

Boulder Dam

Dam on the Colorado River built during the Depression to create jobs

Federal Home Loan Bank Act

a law, enacted in 1931, that lowered home mortgage rates and allowed farmers to refinance their loans and avoid foreclosure

Reconstruction Finance Corporation

Agency established in 1932 to provide emergency relief to large businesses, insurance companies, and banks.

Bonus Army

WWI veterans who marched on Washington demanding their $1,000 bonus pay before the 1945 due date.

What was Hoover's philosophy based on?

Government should facilitate rather than control

How did Hoover try to ease the depression?

promoting public works projects, urging businesses to keep wages stable, creating the Reconstruction Finance Corporation (RFC), and encouraging volunteerism

How was Boulder Dam paid for?

the sale of electricity

Benefits of Boulder Dam

provided flood control, irrigation water, hydroelectric power, and jobs, boosting the economy during the Great Depression

Nicknames given to things to disparage Hoover?

Hoover - villes, flags, and blankets

Glass-Steagall Banking Act

this gave the President the power to regulate banking transactions and foreign exchange

National Credit Corporation

Created in 1931, under the persuasion of Herbert Hoover, it got the largest banks in the country, at that time, to provide lending agencies that would be able to give banks, on the brink of foreclosure, money that could be used for loans.

Federal Farm Board

Agency of the U.S. Department of Agriculture; it offered farmers insurance against loss of crops due to drought; flood; or freeze. It did not guarantee profit or cover losses due to bad farming.

Argument against the Reconstruction Finance Corporation

the money wouldn't reach the people that needed it most

Why did the Bonus Army protest?

to demand early payment of World War I veterans' bonuses, which were scheduled for 1945 but were needed immediately due to the Great Depression.

Why is Roosevelt confident he will get elected?

his strong popularity, his promise of a "New Deal" to address the Great Depression, and widespread dissatisfaction with Hoover's handling of the crisis.

Why is prohibition eliminated?

the government wanted to raise money through taxes (people were drinking anyways so they may as well profit from it)

National Recovery Act (NRA)

Plan devised by the emergency congress designed to combine immediate relief and long-range recovery. It was designed to help the unemployed, labor, and industry.

Complaints about the National Recovery Act (NRA)

deemed "unconstitutional," it interfered with businesses' ability to make decisions b/c gov makes it for them

How was Roosevelt able to pass so many laws in a short amount of time?

Democratic-majority Congress, and the urgency of addressing the Great Depression, which led to a focus on immediate reforms

Hoover vs FDR's approach to the Great Depression

Hoover favored limited government intervention, encouraging volunteerism and private charity, while FDR advocated for active government involvement through the New Deal, with programs to provide relief, recovery, and reform.

What does the democratic victory show in 1932?

showed widespread dissatisfaction with Hoover's handling of the Great Depression and a strong desire for change and government action to address economic challenges

social consequences: segregation, no equality progression, no civil rights progression

The "Brain Trust"

Many of the advisers who helped Roosevelt during his presidential candidacy continued to aid him after he entered the White House

Why were journalists part of the "brain trust"

to improve the government's image + FDR's image (propaganda)

New Deal Goals

Relief, Recovery, Reform

Why are fireside chats important?

they allowed Roosevelt to directly communicate with the American public, explain his policies, build trust, and provide reassurance during the Great Depression.

Why was the stock market a concern?

It helped start the GD

Ways the government helped farmers?

lowered production to increase crop prices

Impact of Civilian Conservation Corps (CCC)

provided jobs to young men, improving public lands through conservation projects like reforestation and flood control. It helped reduce unemployment, preserved natural resources, and built infrastructure

Impact of the Federal Housing Administration (FHA)

helped expand homeownership by insuring loans, making it easier for people to buy homes. It also improved housing standards and helped stabilize the housing market during the Great Depression.

Why would the government increase deficit spending?

to stimulate the economy during a recession or depression by funding public projects, creating jobs, and boosting demand when private spending is low (have to spend money to make money)

Liberal vs Conservative criticism of the New Deal

Liberal: not doing enough

Conservative: taking away rights/overstepping

Why does the Supreme Court get involved in administration programs?

to ensure that laws and executive actions are constitutional and do not violate individual rights or the balance of powers between the branches of government

Court Packing

Attempt by Roosevelt to appoint one new Supreme Court justice for every sitting justice over the age of 70 who had been there for at least 10 years. Wanted to prevent justices from dismantling the new deal. Plan died in congress and made opponents of New Deal inflamed.

FDR's three firy critics

Huey Long, Father Charles Coughlin, and Dr. Francis Townsend. Each criticized the New Deal for not doing enough to help the poor and proposed alternative, more radical solutions

Agricultural Adjustment Act (AAA)

Gave farmers money to reduce crop size to reduce production and bring up the value of crops

National Industrial Recovery Act (NIRA)

a law enacted in 1933 to establish codes of fair practice for industries and to promote industrial growth

Why was the 2nd New Deal needed?

Still a lot of work to be done, first New Deal didn't accomplish enough