Unit 3: Great Depression and World War II

Great Depression causes

Interrelated problems such as the stock market crash, bank failures, deflation, agricultural overproduction, credit contraction, and mass unemployment.

Stock market crash of 1929

A significant decline in stock prices that marked the beginning of the Great Depression.

Bank failures

Over one million banks closed between 1932 and 1939 due to the economic crisis.

Deflation

A decrease in prices and wages that occurred during the Great Depression.

Agricultural overproduction

Farmers produced more crops than the market could support, leading to a collapse in farm prices.

Credit contraction

Banks stopped lending money after the stock market crash, exacerbating the economic crisis.

President Herbert Hoover's interventions

Hoover attempted to address the Great Depression with policies such as farm relief laws, public works spending, and tax cuts.

Smoot-Hawley Tariff

Raised import tariffs to protect American industries but resulted in international trade retaliation that worsened the depression.

Bonus Army

A group of World War I veterans who marched on Washington seeking early payment of their promised bonuses.

Hooverville

Shantytown built by homeless individuals during the Great Depression, reflecting public blame towards Hoover.

New Deal

A series of programs and reforms by Franklin Roosevelt aimed at combating the Great Depression.

Civilian Conservation Corps (CCC)

Employed young men in conservation projects and provided structure similar to military camps.

Agricultural Adjustment Act (AAA)

Paid farmers to reduce production to raise crop prices, often benefiting large farmers and displacing tenant farmers.

Tennessee Valley Authority (TVA)

Built dams and provided electricity and flood control, creating jobs but competing with private power companies.

National Recovery Administration (NRA)

Regulated industry by setting wages and prices but faced challenges and was eventually declared unconstitutional.

Key figures of the era

Prominent individuals like Charles Coughlin, Francis Townsend, and Huey Long who criticized or proposed reforms during the Great Depression.

Works Progress Administration (WPA)

Sponsored projects for job creation and supported the arts and public works.

Court-Packing Scheme

FDR's failed proposal to add justices to the Supreme Court to gain support for New Deal programs.

Roosevelt Recession

A recession in 1937 that indicated the New Deal had not fully resolved the Great Depression.

Legacy of the New Deal

Provided hope and improved infrastructure but did not end the Great Depression; full employment returned due to WWII.