The Great Depression and The New Deal

Flappers

carefree young women with short, "bobbed" hair, heavy makeup, and short skirts. The flapper symbolized the new "liberated" woman of the 1920s. Many people saw the bold, boyish look and shocking behavior of flappers as a sign of changing morals. Though hardly typical of American women, the flapper image reinforced the idea that women now had more freedom.

Harlem Renaissance

Black literary and artistic movement centered in Harlem that lasted from the 1920s into the early 1930s that both celebrated and lamented black life in America; Langston Hughes and Zora Neale Hurston were two famous writers of this movement.

Scopes Trial

1925 trial of a Tennessee schoolteacher for teaching Darwin's theory of evolution

Speculation

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

On-Margin

buying a stock by paying only a fraction of the stock price and borrowing the rest

Margin Calls

When lenders demanded borrowers repay loans immediately, causing panic.

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.

Durable Goods

goods that last for a relatively long time, such as refrigerators, cars, and DVD players

Business Inventories

Extra unsold goods; when businesses had too much inventory, they slowed production.

The Gross Domestic Product

Total value of everything a country produces; it dropped hard during the Great Depression.

The Unemployment Rate

The percentage of people who want to work but can't find jobs; soared in the 1930s.

Black Tuesday

October 29, 1929; date of the worst stock-market crash in American history and beginning of the Great Depression.

Hoover's Ideology and Polices

Believed in limited government help; thought charities and local efforts should solve problems.

The Reconstruction Finance Corporation

Hoover's agency that gave loans to banks and businesses, hoping it would "trickle down" to the people.

The Bonus Army

Group of WWI vets. that marched to D.C. in 1932 to demand the immediate payment of their goverment war bonuses in cash

Hoovervilles, Hoover Flags, Hoover Blankets

Nicknames for shantytowns, empty pockets, and newspaper blankets; people blamed Hoover for their suffering.

Franklin Delano Roosevelt

Democratic candidate who won the 1932 election by a landslide. He refused to uphold any of Hoover's policies with the intent on enacting his own. He pledged a present a "New Deal" (its specific meaning ambiguous at the time to the American people) to the American public.

Fireside Chats

radio broadcasts made by FDR to the American people to explain his initiatives

The Brian Trust

FDR's reform-minded intellectual advisers, who conceived much of the New Deal legislation

Frances Perkins

U.S. Secretary of Labor from 1933 to 1945, and the first woman ever appointed to the cabinet; helped create Social Security

Father Coughlin

A priest who criticized the New Deal on the radio; he lost support after making anti-Semitic remarks.

Frances Townshed

Proposed a plan to give monthly pensions to the elderly; inspired part of Social Security.

Upton Sinclair

for governor of California with his EPIC (End Poverty in California) plan; criticized for being too radical.

Huey Long

As senator in 1932 of Washington preached his "Share Our Wealth" programs. It was a 100% tax on all annual incomes over $1 million and appropriation of all fortunes in excess of $5 million. With this money Long proposed to give every American family a comfortable income, etc

Mary McLeod Bethune

African-American educator who advised FDR and worked for racial equality.

The Dust Bowl

A disaster of giant dust storms in the Great Plains caused by drought and poor farming.

The American Liberty League

A group of business leaders who thought the New Deal was too much government.

Civilian Conservation Corps (CCC)

New Deal program that hired unemployed men to work on natural conservation projects

The Agricultural Adjustment Act (AAA)

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

The National Industrial Recovery Act (NIRA)

Set rules for industry to raise wages and reduce competition (declared unconstitutional later).

The Farm Security Agency

Lent money to sharecroppers and tenant farmers to help them buy their own farms; established camps for migrant workers

Tennessee Valley Authority (TVA)

a federal corporation established in 1933 to construct dams and power plants in the Tennessee Valley region to generate electricity as well as to prevent floods; provided jobs in poor Southern areas.

Glass Steagall and the FDIC

Separated commercial and investment banking; FDIC protects your money in banks.

Work Progress Administration (WPA)

A relief program that hired millions to build roads, schools, and even fund artists and writers.

The Wager Act and the National Labor Relations Board (NLRB)

Protected workers' rights to unionize and strike.

The Social Security Act

(FDR) 1935, guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health

The Fair Labor Standards Act

1938 law that set a minimum wage, a maximum workweek of 44 hours, and outlawed child labor

The Securities and Exchange Commission

an independent agency of the government that regulates financial markets and investment companies

The Court Packing Plan

President FDR's failed 1937 attempt to increase the number of US Supreme Court Justices from 9 to 15 in order to save his 2nd New Deal programs from constitutional challenges

What factors led to prosperity during the roaring 20s?

America experienced an economic boom after WWI.

• The automobile industry (especially Ford's assembly line) increased production and created jobs.

• Credit allowed consumers to buy more, even without having the money upfront.

• The stock market soared because of speculation and buying on margin.

• Technological advances (radio, vacuum, refrigerator) boosted consumerism.

The Roaring Twenties saw growing wealth and optimism—but it was fragile, based on credit and uneven distribution.

How did the societal and cultural changes of the 1920s affect the contrast between urban and rural America?

Cultural shifts created deep divides in values.

• In cities, flappers challenged traditional gender roles and embraced jazz, short skirts, and freedom.

• The Harlem Renaissance brought Black art, music, and literature to the spotlight (Langston Hughes, Louis Armstrong).

• Scopes Trial (1925): Clash between science (evolution) and religion—rural Americans supported tradition; urban areas leaned toward modern ideas.

The 1920s weren't just about fun—they revealed growing cultural divides between rural conservatism and urban modernism.

How did the Harlem Renaissance affect African-Americans' fight for civil rights and equality?

It was a cultural movement, but also a political and social one.

• Harlem Renaissance figures like Langston Hughes, Zora Neale Hurston, and Duke Ellington challenged stereotypes and celebrated Black identity.

• Raised awareness of Black excellence in the arts, which fueled pride and inspired future activism.

• NAACP began pushing for anti-lynching laws and legal challenges to segregation.

While not directly a political movement, the Harlem Renaissance empowered African Americans and laid the groundwork for the civil rights movement.

What were the underlying weaknesses of the economy during the 1920s?

The boom of the 1920s hid major problems.

• Widespread speculation and risky investments inflated the stock market.

• Overproduction in farming and factories led to falling prices and layoffs.

• Uneven distribution of wealth—most people couldn't actually afford the goods being sold.

• Banks gave out too many risky loans and weren't insured.

These issues made the economy vulnerable. When confidence fell in 1929, everything collapsed.

What factors led to the Great Depression?

It wasn't just the stock market crash—it was a chain reaction.

• Black Tuesday (1929): Massive stock sell-off caused panic and market collapse.

• Bank failures wiped out people's savings.

• Unemployment soared (25% by 1933).

• Dust Bowl devastated farmers and agriculture in the Plains.

The Depression was caused by both economic weakness and poor responses after the crash.

How did FDR's approach to addressing the Great Depression differ from Hoover?

FDR believed in active government intervention.

• New Deal created direct relief programs like the CCC, WPA, and Social Security.

• FDR used fireside chats to build public trust and explain policies.

• Appointed a diverse team (e.g., Frances Perkins, first female Cabinet member).

FDR's approach was hands-on, proactive, and focused on both short-term relief and long-term reform.

Why did Hoover become synonymous with the conditions brought about by the Great Depression?

People saw Hoover as out of touch and ineffective.

• Believed in "rugged individualism" (people should help themselves).

• Refused to give direct aid; relied on voluntary cooperation and Reconstruction Finance Corporation to help businesses, not people.

• Hoovervilles: homeless camps named after him; Hoover blankets (newspapers used by the homeless).

Though he tried to help, Hoover's actions seemed too little, too late—and the public blamed him.

What was the foundation of the New Deal and what were its goals?

The New Deal aimed to fix immediate and long-term problems.

• Relief: Jobs and aid for the poor (e.g., WPA, CCC).

• Recovery: Help industries and farmers (e.g., AAA, TVA).

• Reform: Change the system to prevent future crashes (e.g., SEC, FDIC).

FDR wanted to restore hope and stability with government programs and protections.

What were some of the criticisms of the New Deal?

Some thought it went too far, others not far enough.

• American Liberty League: Thought New Deal was socialist and gave gov't too much power.

• Huey Long: Said FDR didn't do enough—proposed "Share Our Wealth."

• Supreme Court struck down programs like the NRA and AAA as unconstitutional.

The New Deal was controversial—it challenged old ideas about the government's role.

What setbacks did Roosevelt face during his implementation of the New Deal?

Not everything he tried worked, and he faced pushback.

• Court Packing Plan (1937): FDR tried to add justices to support New Deal—backfired and hurt his image.

• Uneven aid—many African Americans and women were left out or received less.

• Unemployment remained high until WWII.

FDR's reforms weren't perfect, and political battles made progress hard.

How successful was the New Deal at meeting its goals?

It didn't end the Depression, but it helped millions survive.

• Social Security Act still exists today.

• FDIC restored trust in banks.

• WPA/CCC gave jobs and improved infrastructure.

The New Deal helped stabilize the country but didn't fully solve the Depression—that took WWII.

How did FDR and the New Deal change the role of government going forward?

It forever expanded the government's role in Americans' lives.

• Government became responsible for the economy and people's well-being.

• Created a safety net through programs like Social Security and unemployment insurance.