The Great Crash, the Depression, and the New Deal Policies (1920-1941)

Flashcards covering the causes of the Great Crash, the Great Depression, Roosevelt's New Deal policies, and their effectiveness.

What were the primary causes of the Great Crash of 1929?

Structural weaknesses in the U.S. economy, mass production and oversupply, government policies, consumerism and speculation, economic red flags

What effect did the shift to peacetime production have after World War I?

Factory closures and unemployment.

What industries grew significantly in the 1920s, increasing demand for related materials?

Automobile and electricity industries increased demand for steel, glass, and rubber

What happened to agricultural prices after World War I?

They fell due to overproduction.

What was a major consequence of mass production rates in the 1920s?

Markets became saturated, leading to economic stagnation.

What economic policy did Republican presidents Harding, Coolidge, and Hoover adhere to?

Laissez-faire policies.

What was a key aspect of consumerism in the 1920s?

Increased use of consumer credit and spending on new goods.

What is 'buying on the margin'?

Stock market speculation that inflated stock prices.

Name one red flag of the 1920s economy.

Unequal wealth distribution, US exports affected by high tariffs and weak international markets, rural poverty and reliance of some cities on single industries

How did the Federal Reserve Bank contribute to the Great Crash?

By raising interest rates, discouraging investment.

What happened on 'Black Friday'?

Stock prices plummeted, leading to panic.

What was one effect of unregulated lending during the Great Depression?

Failure of banks and insurance companies.

What was the social impact of the Great Depression?

Mass unemployment (33 million unemployed) poverty affected 50-60 million, “Hoovervilles”, family income dropped 40%

What were 'Hoovervilles'?

Shantytowns that emerged during the Great Depression.

What was Hoover's belief about government intervention in the economy?

He believed the government should not directly intervene.

What was the Smoot-Hawley Tariff Act?

An act in 1930 that increased tariffs, worsening the global economic situation.

What was the Reconstruction Finance Corporation (RFC)?

An organization aimed to provide financial support, but it was insufficient.

What drove Roosevelt's election victory in 1933?

Promises of government intervention and optimism.

What did the Emergency Banking Act do?

Restored confidence in banks.

What was the purpose of the Economy Act?

To pledge a balanced budget.

What did the Agricultural Adjustment Act (AAA) aim to do?

Regulated farming to prevent overproduction.

What was the Civilian Conservation Corps (CCC)?

A program that created jobs in environmental projects.

What did the National Industrial Recovery Act (NIRA) establish?

The Public Works Administration to fund infrastructure projects.

What was the purpose of the Tennessee Valley Authority (TVA)?

Built dams and provided electricity to rural areas.

What did the Glass-Steagall Banking Act do?

Separated commercial and investment banking.

What was the purpose of ending Prohibition?

To boost government revenue through alcohol taxes.

What was the focus of the Second New Deal?

Social welfare and job creation.

What was the Emergency Relief Appropriations Act?

An act that allocated $4 billion for labor-intensive projects.

What did the Social Security Act of 1935 introduce?

Unemployment and pension insurance.

What was the purpose of the Wealth Tax Act?

To increase taxes on the wealthy.

Name one success of the New Deal.

Increased Gross National Product (GNP) and real incomes, improved public confidence in the government

What happened to unemployment between 1933 and 1937 due to the New Deal?

It fell from 25% to 14%.

How did the New Deal affect the banking system?

It stabilized the banking system, preventing major collapses after 1933.

Name one weakness of the New Deal.

Unemployment rose again during the 1937-38 recession.

What was one challenge the New Deal faced regarding agriculture?

Agricultural prices remained high despite government intervention.

What happened to the federal debt due to government spending during the New Deal?

It increased.

How did Roosevelt communicate with the public?

He used radio 'Fireside Chats'.

What groups did Roosevelt build coalitions with?

Southern Democrats, labor unions, and urban voters.

Who did Roosevelt gain significant backing from in the 1936 election?

African Americans and labor unions.

What caused the Recession of 1937-1938?

Federal spending cuts aimed at balancing the budget, businesses remain hesitant to invest due to new regulations

What was the Supreme Court's stance on some New Deal programs?

They declared 11 New Deal programs unconstitutional.

What was Roosevelt's 'Court Packing' plan?

A plan to add more justices to the Supreme Court but was unpopular

What was the Liberal Left's criticism of Roosevelt?

That he was not implementing more radical reforms.

What was the Conservative Right's opposition to the New Deal?

They opposed increased government intervention.

How did Roosevelt respond to opposition?

He maintained public support through communication and shifted focus to international issues.

What was a main cause of the Great Depression?

The Great Crash of October 1929 and collapse of the financial system

How did the New Deal attempt to address the economic and social impacts of the Depression?

Through various reforms and programs.

What figures were liberal leftists and what they advocate for?

Upton Sinclair and Huey Long, advocated for wealth redistribution

How did the New Deal reshape the role of the federal government?

Increased the power and presence of the government in American society.

Who were conservative that opposed the New Deal and what did they fear?

Business leaders and Southern Democrats feared socialism