US Honors History ll - The Great Depression and New Deal

What were the primary causes of the Great Depression?

the Stock Market Crash of 1929, bank runs, overproduction in agriculture and industry, uneven distribution of wealth, and excessive use of credit.

What was the Stock Market Crash of 1929 (Black Tuesday) and what were its immediate effects?

a sudden and steep decline in stock prices, beginning in October 1929. Its immediate effects included widespread financial panic, significant loss of wealth for investors, and a decrease in consumer and business confidence, contributing to the economic downturn.

What were 'bank runs' and how did they contribute to the Great Depression?

when a large number of people suddenly withdrew their money from banks due to fear that the banks would fail. This led to many banks collapsing, wiping out people's savings and further destabilizing the financial system.

Explain the 'ripple effect' of the Great Depression.

how the economic downturn impacted even those who did not invest in the stock market. As banks failed, businesses closed, and unemployment soared, it affected workers, farmers, and entire communities, leading to a widespread economic crisis beyond financial investors.

What were Hoovervilles?

shantytowns built by homeless people during the Great Depression. They were named mockingly after President Herbert Hoover, whom many blamed for the economic crisis and his 'laissez-faire' approach.

How did the Great Depression impact families?

Families faced widespread unemployment, loss of homes, and increased poverty. Marriages and birthrates declined, and many families experienced stress, malnutrition, and separation as members sought work or were unable to support themselves.

How did the Great Depression affect minorities?

particularly African Americans, Hispanic Americans, and Asian Americans, faced exacerbated discrimination and economic hardship. They often were the 'last hired, first fired,' and struggled with even higher unemployment rates and poverty than the general population.

Describe President Hoover's approach to the Great Depression.

President Herbert Hoover initially believed in 'rugged individualism' and that the economy would 'let nature take its course.' He offered no direct federal assistance to individuals, instead relying on voluntary cooperation, local governments, and private charities, which proved insufficient for the scale of the crisis.

What were the results of the Election of 1932, and what did they tell us about the status of the nation?

Franklin D. Roosevelt (FDR) decisively defeated Herbert Hoover. The results indicated overwhelming public dissatisfaction with Hoover's handling of the Depression and a clear desire for a new approach and direct government intervention to alleviate suffering and economic distress.

What was the purpose of the Agricultural Adjustment Act (AAA) under the New Deal?

paid farmers to reduce crop production to increase prices and restore agricultural prosperity. It aimed to stabilize farm income and prevent overproduction.

What was the Civilian Conservation Corps (CCC) and what did it accomplish?

was a New Deal program that hired young, unemployed men to work on environmental conservation projects, such as building roads, planting trees, and developing parks. It provided jobs, wages, and boosted morale.

What was the Tennessee Valley Authority (TVA) and what was its significance?

was a federal agency established to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley, a region particularly affected by the Depression. It brought modernization and jobs to rural areas.

What was the Works Progress Administration (WPA)?

was the largest New Deal agency, employing millions of unemployed people (mostly unskilled men) to carry out public works projects, including building roads, bridges, public buildings, and parks. It also had programs for artists, writers, and musicians.

What was the Securities and Exchange Commission (SEC)?

created to regulate the stock market, enforce laws against market manipulation, and protect investors. Its goal was to prevent future stock market crashes and restore public confidence in financial markets.

What was the Federal Deposit Insurance Corporation (FDIC)?

established to insure bank deposits up to a certain amount. This restored public confidence in banks by guaranteeing that people's savings would be safe even if a bank failed.

What was the Social Security Act of 1935?

established a national system of social insurance for Americans, providing old-age pensions, unemployment compensation, and aid to families with dependent children and the disabled. It created a social safety net for vulnerable populations.

How did the New Deal expand federal and executive powers?

significantly expanded the role of the federal government in the economy and daily lives of Americans, creating new agencies, regulations, and social programs. It increased the power of the executive branch as FDR took on an active role in policy-making and implementation.

What was the significance of 'direct relief' under Roosevelt compared to Hoover?

Unlike Hoover's reliance on indirect aid, Roosevelt's New Deal initiated direct federal relief programs (e.g., through FERA, CCC, WPA) to provide immediate assistance, jobs, and financial aid to individuals and families suffering from the Depression, signaling a new role for government in public welfare.

What were the 'First 100 Days' of FDR's presidency?

FDR pushed through an unprecedented amount of legislation to address the Great Depression. This period saw the creation of key New Deal programs and agencies, demonstrating a rapid and decisive federal response.

Define and give examples of the '3 R's' of the New Deal.

1. Relief: Immediate aid to stop suffering (e.g., CCC, FERA).

2. Recovery: Programs to rebuild the economy (e.g., AAA, NRA).

3. Reform: Changes to prevent future depressions (e.g., SEC, FDIC, Social Security).

What was 'deficit spending' during the New Deal and why was it significant?

when a government spends more money than it takes in through revenues. The New Deal marked the first time the U.S. government intentionally used large-scale deficit spending to stimulate the economy, a significant departure from traditional fiscal policy.

What was the 'modified gold standard' during the New Deal?

In 1933, FDR took the U.S. off the gold standard for domestic transactions and devalued the dollar. This allowed the government to increase the money supply and stimulate the economy by making American goods cheaper for foreign buyers and encouraging investment.

What was the 'Court Packing' plan?

a controversial proposal to expand the Supreme Court. After the Court struck down several New Deal programs, FDR sought to add up to six new justices, hoping they would be more favorable to his legislation. The plan failed to pass and drew significant criticism.

What was the Dust Bowl? What were its causes and effects, and who were the 'Okies'?

a period of severe dust storms and drought in the Great Plains during the 1930s. Causes included prolonged drought, poor farming practices (over-cultivation, lack of crop rotation), and high winds. Effects were widespread crop failure, severe economic hardship for farmers, and mass migration. 'Okies' were migrants from Oklahoma (and surrounding states) who moved west, primarily to California, seeking work as farm laborers.

Who was Eleanor Roosevelt and what was her role during the New Deal era?

the First Lady and a prominent activist. She redefined the role of First Lady by actively campaigning for New Deal policies, advocating for civil rights for African Americans and women, and serving as FDR's 'eyes and ears' by traveling extensively throughout the country.

Who was Father Charles Coughlin and what was his significance?

a Catholic priest who hosted a popular radio show. Initially a New Deal supporter, he later became a harsh critic, accusing FDR of being too friendly to bankers and not doing enough to combat the Depression. He promoted anti-Semitic and fascistic views.

Who was Huey Long and what was his 'Share Our Wealth' program?

a charismatic and controversial Louisiana politician (governor and then senator) who advocated for radical redistribution of wealth. His 'Share Our Wealth' program proposed heavy taxes on the wealthy to provide every American family with a minimum income, a home, and other necessities, posing a political challenge to FDR.