Great depression and new deal

Causes of the Great Depression

A combination of factors including buying on margin (speculation), overproduction, unequal wealth distribution, decline in global trade, weak banking system, and the 1929 stock market crash, which together led to economic collapse.

Smoot–Hawley Tariff (1930)

A law that raised U.S. tariffs to record levels to protect American industries, but instead triggered retaliatory tariffs, reduced global trade, and worsened the Great Depression worldwide.

Black Tuesday

October 29, 1929 — the day the stock market completely collapsed, with over 16 million shares traded, marking the most devastating moment of the Stock Market Crash.

Dust Bowl

A severe environmental disaster in the Great Plains during the 1930s caused by drought and poor farming practices, leading to massive dust storms, farm failures, and migration westward.

The Grapes of Wrath

A 1939 novel by John Steinbeck that depicted the suffering of Dust Bowl migrants (Okies), symbolizing the human cost of the Great Depression.

Bonus Expeditionary Force (Bonus Army)

WWI veterans who marched on Washington, D.C. in 1932 demanding early payment of promised bonuses; forcibly removed by the U.S. Army, damaging Hoover’s reputation.

Reconstruction Finance Corporation (RFC)

A 1932 Hoover program that provided federal loans to banks, railroads, and large businesses to stabilize the economy; criticized for not helping individuals directly.

Breadlines / Hoovervilles / Hoover Blankets

Breadlines were lines for free food run by charities; Hoovervilles were shantytowns of homeless Americans; Hoover blankets were newspapers used for warmth— all symbolized widespread poverty and criticism of Hoover.

Election of 1932

A landslide victory for Franklin D. Roosevelt over Herbert Hoover, signaling public demand for expanded federal action and leading to the New Deal.

Relief, Recovery, Reform

The three goals of the New Deal—Relief

Bank Holiday

A temporary closure of banks in 1933 ordered by FDR to stop bank runs and allow inspection before reopening.

Hundred Days

The first 100 days of FDR’s presidency, marked by rapid passage of major New Deal legislation to combat the Great Depression.

Second New Deal

The later phase of the New Deal (1935–1938) focused on economic security and rights, including Social Security, Wagner Act, and WPA.

Assessing the New Deal (Successes & Failures)

Successes included restored confidence, stabilized banks, expanded labor rights, and creation of a welfare state; failures included not ending the Depression and excluding many minorities.

Welfare State

A system in which the government assumes responsibility for citizens’ economic well-being, providing aid such as pensions, unemployment insurance, and relief.

Wagner Act (NLRA), 1935

Guaranteed workers the right to unionize and bargain collectively, and created the National Labor Relations Board (NLRB).

Keynesian Economics

Economic theory advocating deficit spending and government intervention during downturns to stimulate demand and reduce unemployment.

Father Charles Coughlin

A Catholic priest and radio personality who initially supported FDR but later criticized the New Deal for not going far enough; advocated populist reforms.

Huey Long

Louisiana senator who proposed the “Share Our Wealth” plan, calling for heavy taxation of the rich to fund income guarantees for the poor.

Dr. Francis Townsend

Proposed the Townsend Plan, which called for $200 monthly pensions for Americans over 60 to stimulate the economy.

Fireside Chats

FDR’s radio addresses that explained policies in simple language, helping to restore public confidence.

Brain Trust

A group of academic advisors who helped FDR design New Deal policies using new economic ideas.

Harry Hopkins

Head of FERA and WPA; one of FDR’s closest advisors; emphasized direct relief and jobs for the unemployed.

Social Security

A 1935 program providing old-age pensions, unemployment insurance, and aid to dependent children; foundation of the modern welfare state.

American Liberty League

A conservative organization that opposed the New Deal, arguing it threatened free enterprise and individual liberty.

Court Packing

FDR’s failed 1937 plan to add Supreme Court justices to gain support for New Deal laws; politically damaging.

Eleanor Roosevelt

First Lady who acted as the moral conscience of the New Deal, advocating for women’s rights, labor, and civil rights.

Impact on Labor Unions

New Deal laws (especially the Wagner Act) strengthened unions, increased membership, and legitimized collective bargaining.

New Deal Coalition

A powerful Democratic voting alliance formed during the New Deal, including labor unions, African Americans, immigrants, urban workers, farmers, and Southern Democrats, dominating politics until the late 1960s.

CIO (Congress of Industrial Organizations)

A labor union federation that promoted industrial unionism, organizing all workers in an industry, and led major strikes in steel and auto industrie