U.S. History - Great Depression + New Deal

Exhaustion of Credit (and industrial response):

By the late 1920s, people and businesses had borrowed too much money. When credit ended, people stopped buying, so factories produced less and laid off workers.

Buying on Margin:

Buying stocks with borrowed money, paying only a small part upfront. When stock prices fell, investors could not repay loans.

Black Tuesday:

October 29, 1929. The stock market crashed as millions of shares were sold in panic, triggering the Great Depression

Failure of Banks:

Banks failed when people rushed to withdraw money and banks had no cash. Depositors lost their savings.

Default of Mortgages:

Homeowners could not make mortgage payments, leading to foreclosures and homelessness.

Worldwide Effects of the Great Depression (especially Germany):

The Depression spread worldwide. In Germany, economic collapse caused mass unemployment and political instability, helping extremist parties like the Nazis gain support

he Dust Bowl (man-made or natural disaster?):

Both. Drought was natural, but poor farming practices caused severe soil erosion and dust storms.

“Hoovervilles”:

Shantytowns of homeless people named after President Hoover, whom many blamed for the Depression.

The “Bonus Army”:

World War I veterans who marched on Washington demanding early payment of bonuses. Hoover ordered them removed by force

President Hoover’s Response to the Depression:

Believed in limited government aid and voluntary action by businesses. His response was seen as too slow and ineffective.

Unemployment in the Depression:

Reached about 25% by 1933. Millions were out of work.

Election of 1932:

Franklin D. Roosevelt defeated Herbert Hoover, promising a “New Deal” for Americans.

Escapism During the Depression:

People escaped hardship through movies, radio, music, sports, and cheap entertainment.

Impact of the Great Depression on Family and Home:

Families lost homes, delayed marriage, relied on extended family, and children often worked to help support households.

“Fireside Chats”:

Radio speeches by FDR to reassure Americans and explain government actions in simple language.

Emergency Banking Act (“The Bank Holiday”)

Closed banks temporarily to stop panic, then reopened only healthy banks to restore trust.

CCC (Civilian Conservation Corps):

Provided jobs for young men working on conservation projects like parks and forests.

WPA (Works Progress Administration):

Created jobs building roads, bridges, schools, and supporting artists and writers.

FDIC:

Insured bank deposits to prevent bank runs and protect savings.

FHA:

Helped people buy homes by insuring mortgages and improving housing standards.

SEC:

Regulated the stock market to prevent fraud and risky speculation.

Social Security:

Provided pensions for the elderly, unemployment insurance, and aid to the disabled.

Wagner Act

Protected workers’ rights to unionize and bargain collectively

Fair Labor Standards Act

Established minimum wage, maximum hours, and banned child labor

Eleanor Roosevelt

First Lady who advocated for civil rights, women, and the poor; helped shape New Deal reforms.

The New Deal and Minorities

Provided some jobs and aid but did not end segregation or discrimination. Benefits were uneven.

Critics of the New Deal:

• Right:

• Left:

• Right: Said it gave the government too much power

• Left: Said it did not go far enough to help the poor

Court Packing Plan:

FDR proposed adding more Supreme Court justices to protect New Deal laws. It failed and hurt his popularity.

Impact of the New Deal: Success or Failure?

Both. It relieved suffering and reformed the system but did not fully end the Depression.

Lasting Legacy of the New Deal:

Expanded the role of the federal government. During economic hardship, Americans now look to the federal government for support and relief.

Approximately what percentage of of Americans were unemployed by 1932-33? 

25%

Name given by FDR to his programs to raise America out of the Depression.

The New Deal

Of all the world's countries, this nation with an already weak economy was hardest hit.

Germany

This program, initially begun under the New Deal, provided pensions for elderly Americans.

Social Security

FDR's conversational radio addresses to Americans, informing them of his New Deal programs.

Fireside Chats

Which of the following New Deal programs DID NOT put unemployed young men on public works?

FDIC

What term describes FDR's closing of the banks to rush them new currency upon entering office?

The bank holiday

Which of the following WAS NOT one of the causes of the Depression in 1929?

Uneven distribution of wealth

WWI debt

Buying on Margin and other stock speculation 

Exhaustion of credit

WWI Debt