Key Terms and Concepts of the New Deal and WWII

Laissez-Faire Economic Policies

Economic system where the government has minimal interference in business operations and market dynamics.

Significance of Laissez-Faire Policies

It allowed businesses to operate freely, leading to rapid industrial growth in the late 19th century but also contributing to economic inequality and the 1929 stock market crash.

Purpose of Laissez-Faire Policies

To promote individual entrepreneurship and economic growth with limited regulation.

Expansion of Credit and Consumer Goods

The practice of encouraging people to purchase goods and services on credit rather than paying with cash.

Significance of Expansion of Credit

Led to increased consumer spending in the 1920s, contributing to economic growth but also creating financial instability and the Great Depression.

Purpose of Expansion of Credit

To stimulate economic growth by allowing consumers to buy goods they couldn't afford upfront.

Immigration Act of 1924

A U.S. law that limited the number of immigrants allowed entry into the United States through national quotas.

Significance of Immigration Act of 1924

It drastically reduced immigration from Southern and Eastern Europe and banned immigration from Asia, reflecting racial and ethnic prejudices.

Purpose of Immigration Act of 1924

To reduce immigration and preserve the U.S. demographic composition.

Kellogg-Briand Pact

An international agreement signed in 1928 in which signatory nations renounced war as a means of resolving disputes.

Significance of Kellogg-Briand Pact

Though it lacked enforcement power, it symbolized the desire for peace and collective security post-WWI.

Purpose of Kellogg-Briand Pact

To prevent war and promote peaceful solutions to international disputes.

Dawes Plan

A plan developed in 1924 to address Germany's reparations after WWI, which provided loans from the U.S. to Germany.

Significance of Dawes Plan

It stabilized Germany's economy and allowed it to pay reparations, but it also increased the U.S. financial involvement in European affairs.

Purpose of Dawes Plan

To ease the economic burden on Germany and prevent further economic collapse.

FDR & "New Deal for the American People"

A series of programs and policies implemented by President Franklin D. Roosevelt to address the economic problems caused by the Great Depression.

Significance of the New Deal

It dramatically expanded the role of the federal government in the economy and welfare of citizens.

Purpose of the New Deal

To provide relief, recovery, and reform to the American people during the Great Depression.

"The Only Thing We Have to Fear Is Fear Itself"

A famous line from Franklin D. Roosevelt's inaugural speech in 1933, addressing the fear and uncertainty of the Great Depression.

Significance of the Quote

It helped inspire confidence and hope in the American people during a time of widespread economic despair.

Purpose of the Quote

To reassure the public and encourage collective action in facing the challenges of the Depression.

GDP During the Great Depression

Gross Domestic Product, a measure of the total economic output, fell sharply during the Great Depression, reflecting a severe economic downturn.

Significance of GDP Decline

A decrease in GDP indicated the economic contraction, widespread unemployment, and poverty during the Great Depression.

Purpose of GDP Measurement

To measure the severity of the Depression and guide policy responses.

Dust Bowl

A period of severe dust storms in the 1930s, caused by drought and poor farming practices in the Great Plains.

Significance of the Dust Bowl

It devastated agriculture, displaced thousands of farmers, and exacerbated the economic hardships of the Great Depression.

Purpose of the Dust Bowl

To illustrate the environmental and economic challenges faced by American farmers during the Depression.

Hoover's Response to the Great Crash

President Herbert Hoover's policies during the Great Depression, which focused on limited government intervention and voluntary business cooperation.

Significance of Hoover's Response

His response was widely criticized for being insufficient to address the scale of the Depression.

Purpose of Hoover's Response

To restore confidence in the economy through gradual recovery rather than direct government intervention.

Banking Crisis

A series of bank failures during the Great Depression, caused by widespread panic and a lack of confidence in financial institutions.

Significance of Banking Crisis

The banking crisis led to the loss of savings for many Americans and prompted banking reforms like the Glass-Steagall Act.

Purpose of Banking Crisis

To address the collapse of the banking system and restore stability to the financial sector.

FDR's "Fireside Chats"

A series of radio broadcasts by President Franklin D. Roosevelt in which he directly addressed the American public.

Significance of FDR's "Fireside Chats"

They were an effective communication tool that built public trust in the government's response to the Depression.

Purpose of FDR's "Fireside Chats"

To inform and reassure the American public about government policies and instill confidence in the New Deal.

New Deal Goals: Relief, Recovery, Reform

The three main goals of Franklin D. Roosevelt's New Deal policies to address the impacts of the Great Depression.

Significance of New Deal Goals

These goals shaped the framework of the New Deal and were aimed at providing immediate relief, long-term economic recovery, and systemic reforms to prevent future depressions.

Purpose of New Deal Goals

To tackle the economic crisis and lay the foundation for future prosperity.

Keynesian Economics

An economic theory developed by John Maynard Keynes, advocating for government intervention to manage economic cycles, especially during recessions.

Significance of Keynesian Economics

It formed the basis for much of the New Deal's economic policy, particularly in promoting government spending to stimulate demand.

Purpose of Keynesian Economics

To stabilize economies by regulating demand through fiscal and monetary policies.

First New Deal

A series of programs and reforms introduced by Franklin D. Roosevelt between 1933-1934 to address the immediate economic problems of the Great Depression.

Significance of First New Deal

It focused on providing immediate relief to Americans and stabilizing the economy.

Purpose of First New Deal

To provide immediate economic relief and stimulate recovery.

Federal Emergency Relief Administration (FERA)

A New Deal program that provided direct relief to the unemployed and poor during the Great Depression.

Significance of FERA

It was one of the first New Deal agencies and helped millions of Americans survive the economic crisis.

Purpose of FERA

To provide relief in the form of grants and work projects to those in dire need.

Public Works Administration (PWA)

A New Deal program that funded large public works projects like bridges, dams, and schools to provide employment and stimulate the economy.

Significance of PWA

It created jobs and improved U.S. infrastructure, providing long-term benefits for the economy.

Purpose of PWA

To generate jobs and revitalize the economy through government-funded construction projects.

Civilian Conservation Corps (CCC)

A New Deal program that employed young men in environmental conservation projects, such as planting trees and building parks.

Significance of CCC

It provided jobs and improved the environment, leaving a lasting impact on U.S. national parks and forests.

Purpose of CCC

To provide jobs for young, unemployed men while improving the nation's natural resources.

Agricultural Adjustment Act (AAA)

A New Deal program designed to raise crop prices by paying farmers to reduce production.

Significance of AAA

It aimed to stabilize agricultural prices and income for farmers, though it was controversial due to its effect on sharecroppers and tenant farmers.

Purpose of AAA

To reduce overproduction, raise agricultural prices, and support farm income.

Tennessee Valley Authority (TVA)

A New Deal program aimed at providing flood control, electricity, and economic development to the Tennessee Valley region.

Significance of TVA

It brought modernization to a rural area and helped to transform the economy of the Tennessee Valley.

Purpose of TVA

To provide economic development, electricity, and flood control to the Tennessee Valley region.

National Recovery Administration (NRA)

A New Deal agency that aimed to eliminate unfair competition by setting fair wages and prices in industries.

Significance of NRA

It sought to stabilize the economy but was declared unconstitutional in 1935.

Purpose of NRA

To promote industrial recovery by regulating industry practices.

Huey Long

A Louisiana senator who proposed the "Share Our Wealth" program, which advocated for wealth redistribution and a cap on personal fortunes.

Significance of Huey Long

Long's populist message gained widespread support, but his policies were seen as a threat to Roosevelt's New Deal.

Purpose of Huey Long

To address income inequality and redistribute wealth to ensure a more equitable society.

The Liberty League

A conservative organization formed in the 1930s to oppose the New Deal, arguing it was too radical and expanded government power excessively.

Significance of The Liberty League

It represented the opposition to FDR's New Deal from conservative and business interests.

Purpose of The Liberty League

To advocate for the protection of private enterprise and oppose the expansion of government intervention.

Dr. Francis Townshend

A retired physician who proposed the Townsend Plan, which called for giving $200 per month to senior citizens over 60 years old, funded by a national sales tax.

Significance of Dr. Francis Townshend

His proposal was influential in the creation of Social Security and sparked national discussions about elderly care and welfare.

Purpose of Dr. Francis Townshend

To provide economic security for older Americans and to create a pension system to help the elderly in need.

Share Our Wealth Program

A program proposed by Huey Long that called for wealth redistribution through a cap on personal fortunes, guaranteed minimum income, and pensions for the elderly.

Significance of Share Our Wealth Program

The program gained significant popular support, influencing New Deal policies but also increasing political tension.

Purpose of Share Our Wealth Program

To reduce income inequality and provide economic security for all citizens.

EPIC Plan

The 'End Poverty in California' plan proposed by Upton Sinclair, which aimed to provide jobs, establish state-owned industries, and create public works to combat poverty.

Significance of EPIC Plan

Although it was not implemented, it sparked public debate on how to address poverty and led to Sinclair's gubernatorial run in California.

Purpose of EPIC Plan

To address poverty and unemployment through government intervention and public works.

Securities and Exchange Commission (SEC)

A U.S. government agency created in 1934 to regulate the securities industry and protect investors.

Significance of SEC

The SEC played a key role in restoring trust in the stock market after the Great Depression by enforcing regulations and preventing fraudulent practices.

Purpose of SEC

To oversee and regulate the securities markets, ensuring transparency and protecting investors from manipulation.

Second New Deal

A series of programs and reforms introduced by FDR between 1935 and 1938 to continue the economic recovery and address long-term social issues.

Significance of Second New Deal

The Second New Deal focused on reforms like Social Security and labor rights, shifting the focus from immediate relief to long-term security.

Purpose of Second New Deal

To promote economic recovery and implement lasting social reforms.

Works Progress Administration (WPA)

A New Deal agency that provided jobs through public works projects, including building infrastructure and supporting the arts.

Significance of WPA

It was one of the largest New Deal agencies and helped employ millions of Americans, leaving a lasting legacy of public buildings and infrastructure.

Purpose of WPA

To reduce unemployment by creating government-funded jobs and provide essential infrastructure and cultural programs.

Wagner Act (1935) & National Labor Relations Board

A law that guaranteed workers the right to form unions and engage in collective bargaining, creating the National Labor Relations Board (NLRB) to oversee disputes.

Significance of Wagner Act

It was a landmark achievement in labor rights, strengthening the position of unions and improving workers' conditions.

Purpose of Wagner Act

To protect workers' rights, ensure fair labor practices, and reduce labor disputes.

Social Security Act

A 1935 law that created a system of old-age pensions, unemployment insurance, and welfare programs for the needy.

Significance of Social Security Act

It remains a cornerstone of the U.S. social safety net, providing financial support for retirees, the disabled, and the unemployed.

Purpose of Social Security Act

To provide financial security for elderly Americans and protect the most vulnerable in society.

Rural Electrification Administration (REA)

A New Deal program that brought electricity to rural areas, helping to modernize agricultural regions and improve living standards.

Significance of REA

It expanded access to electricity to millions of rural Americans, improving their quality of life and economic opportunities.

Purpose of REA

To provide affordable electricity to rural areas and boost economic development.

Third New Deal

The final phase of FDR's New Deal, focusing on further economic reform, especially in the areas of labor rights and economic security.

Significance of Third New Deal

It saw the implementation of measures like the Fair Labor Standards Act, which set minimum wage and maximum work hours.

Purpose of Third New Deal

To cement the reforms of the Second New Deal and address the continued social and economic inequalities.

New Deal Coalition

A political coalition formed by FDR that included labor unions, African Americans, white southern Democrats, and various minority groups.