History Unit 7 1920s -1930's, FDR and New Deal

Why did consumer sales begin to decline after 1924?

Because most people already owned durable goods like cars and appliances and did not need to replace them every year.

What economic weaknesses existed before the stock market crash?

Low wages, overproduction, buying on credit/installment plans, and widespread stock speculation (buying on margin).

What does "buying on margin" mean?

Purchasing stocks with borrowed money, expecting prices to rise.

When did Black Thursday occur?

October 24, 1929

What is Black Thursday?

The stock market crashed after panic selling.

Why did the crash spread quickly throughout the economy?

Because of interdependence, businesses, banks, and consumers relied on each other.

What was unemployment at its worst during 1933-1934?

25% were unemployed, and another 25% were underemployed or taking wage cuts.

How much did the Gross National Product fall during the Depression?

Nearly 50%.

When did unemployment finally drop below 10%?

In 1941, when World War II began.

How were children affected during the Great Depression?

Nearly 50% lacked adequate food, shelter, or medical care; many suffered from rickets.

How many farms were lost between 1930 and 1935?

About 750,000 farms.

What were "Penny Auctions"?

Auctions where farmers kept bids extremely low to help neighbors buy back their own farms.

Who suffered most during the Depression?

Nearly everyone suffered, though the already poor sometimes adjusted better because they were used to hardship.

What was the Dust Bowl?

A severe drought and dust storms that devastated farmland in the Midwest.

What was Hoover's approach to the Depression?

Voluntary cooperation between businesses and government, reliance on private charities, and limited federal intervention (laissez-faire).

Why did Hoover oppose direct federal aid?

He believed government assistance would create dependency.

What happened with the Bonus Army in 1932?

WWI veterans demanded early bonus payments and were removed by troops using tear gas.

Why did Hoover become unpopular?

He appeared uncaring and ineffective in solving the crisis.

What were "Hoovervilles"?

Shantytowns where homeless people lived.

What were other sarcastic "Hoover" terms?

Hoover Stew, Hoover Blankets, Hoover Hogs, and Hoover Wagons.

Why did Americans turn to government during the Depression?

The crisis was so severe that people demanded federal action.

Who was elected president in 1932?

Franklin D. Roosevelt.

How did FDR connect with Americans?

Though wealthy, he suffered from polio and showed confidence and empathy.

What famous quote reassured Americans?

"The only thing we have to fear is fear itself."

What was the Bank Holiday?

A temporary closure of banks to reorganize them and restore trust.

What were the "Hundred Days"?

The early period of FDR's presidency when Congress passed 15 major laws quickly.

What were the 3 Rs of the New Deal?

Relief, Recovery, and Reform.

What was the TVA?

The Tennessee Valley Authority, which built dams, controlled floods, and created electricity.

What was the NRA?

The National Recovery Act, which encouraged cooperation between businesses and workers but did not work well.

What was the AAA?

The Agricultural Adjustment Administration, which paid farmers not to grow crops to raise prices.

Who was Henry Hopkins?

A relief administrator who believed jobs preserved dignity and self-respect.

What was the CCC?

The Civilian Conservation Corps, where young men planted trees and built parks.

What was the CWA?

The Civil Works Administration, which built roads, schools, and playgrounds.

What was the WPA?

The Works Progress Administration, which provided jobs, including in the arts.

Why did critics oppose early New Deal programs?

They believed the programs were temporary and did not permanently solve the Depression.

How did the Second New Deal differ from the First?

It shifted from temporary relief to permanent reform and protections for individuals.

Why did FDR shift policies in 1935?

Unemployment remained high, and critics like Father Coughlin and Huey Long pressured him.

What did the Social Security Act of 1935 do?

It provided pensions, unemployment insurance, and aid for disabled people.

Why were Social Security payments initially low?

To reflect American ideals of self-reliance.

What was the Wagner Act?

The National Labor Relations Act that protected unions and required companies to negotiate through collective bargaining.

What labor protections were established under FDR?

Minimum wage laws and maximum work hour laws.

What happened to union membership during the New Deal?

It increased significantly.

What was the CIO?

The Congress of Industrial Organizations, a union for industrial workers.

How did African Americans respond politically during the New Deal?

Many shifted support to the Democratic Party.

Why did many African Americans support FDR?

He appointed Black officials, and Eleanor Roosevelt advocated for civil rights.

How were Mexican Americans affected by the New Deal?

They received limited benefits, and immigration from Mexico was restricted.

What was significant about Frances Perkins?

She was the first woman appointed to a presidential Cabinet.

How did Eleanor Roosevelt redefine the role of First Lady?

She traveled widely, held press conferences for women reporters, and actively supported social causes.

What causes did Eleanor Roosevelt support?

Women's rights, African American rights, the unemployed, refugees, and low-income housing.

What was "My Day"?

Her newspaper column that connected her directly with Americans.

Why is Eleanor Roosevelt called a "voice for the forgotten"?

She advocated for marginalized and disadvantaged groups.

What happened in the 1936 election?

FDR won in a landslide, and Democrats controlled Congress.

What was the Court-Packing Plan?

FDR's attempt to add Supreme Court justices to gain approval for New Deal programs.

Why did the Court-Packing Plan fail?

It made FDR appear power-hungry.

What happened politically after 1936?

Republicans gained seats, and many later New Deal bills failed.

Did the New Deal end the Great Depression?

It reduced unemployment, but World War II ultimately ended it.

How did the New Deal permanently change the federal government?

It expanded federal power into economic regulation and social welfare.

What New Deal program still exists today?

Social Security.

What was the cultural conflict of the 1920s?

Urban modern values clashed with traditional rural values.

Give three examples of rural resistance in the 1920s.

Prohibition, immigration restrictions, and support for traditional religious values such as in the Scopes Trial.

What does this conflict reveal about American society in the 1920s?

America was deeply divided between modern and traditional beliefs.

Describe Hoover's philosophy during the Depression.

Limited government involvement and reliance on voluntary cooperation and private charity.

Describe FDR's philosophy during the Depression.

Active federal intervention through relief, recovery, and reform programs.

Why did Hoover's policies fail?

They were too limited for the scale of the crisis.

How did FDR's approach differ from Hoover's?

FDR used aggressive federal programs and direct government aid.

What does laissez-faire mean?

Limited government intervention in the economy.

What is credit buying?

Purchasing goods with borrowed money to pay later.

What is stock speculation?

Risky investing in stocks hoping prices will rise.

What are private charities?

Non-government organizations that provide aid.

What are minimum wage laws?

Laws that set the lowest legal pay rate.

What are maximum work hour laws?

Laws that limit how many hours employees can work per week.

CCC

Civilian Conservation Corps — a New Deal program that gave young men jobs planting trees, building parks, and working on conservation projects.

TVA

Tennessee Valley Authority — built dams, controlled floods, and provided electricity to rural areas.

WPA

Works Progress Administration — provided jobs for unemployed Americans, including construction workers, writers, and artists.

Social Security Act

A 1935 law that provided pensions for the elderly, unemployment insurance, and aid for the disabled; first major federal welfare program.

Wagner Act

Also called the National Labor Relations Act — protected workers' rights to form unions and required businesses to engage in collective bargaining.

Bank Holiday

Temporary closure of banks in 1933 so they could reorganize and restore public confidence.

Relief

Immediate assistance to people suffering from the Depression.

Recovery

Programs designed to improve and restart the economy.

Reform

Long-term changes meant to prevent future economic crises.

Court-packing plan

FDR's attempt to add more Supreme Court justices to gain support for New Deal programs; it failed and hurt his reputation.

Second Industrial Revolution

Late 1800s period of rapid industrial growth involving steel, oil, electricity, and mass production.

Consumer culture

A society focused on buying goods, especially durable goods like cars and appliances.

Urban centers

Cities where industry, immigration, and modern cultural values were concentrated.

Immigration restrictions

Laws limiting the number of immigrants allowed into the United States.

Union membership

The number of workers who belong to labor unions.

Minimum wage laws

Laws setting the lowest hourly wage employers can legally pay workers.

Maximum work hours

Laws limiting how many hours employees can work in a week.

Credit buying

Purchasing goods with borrowed money or installment plans.

Stock speculation

Risky investing in stocks with the hope of selling them at higher prices.

Private charities

Non-government organizations that provide aid to people in need.

What manufacturing innovation did Henry Ford introduce that revolutionized production?

Assembly line.

Which amendment gave women the right to vote

19th amendment

In what year did women gain the right to vote in the United States?

1920.

Young women who challenged Victorian norms in the 1920s were called:

flappers

What was the popular nickname for the 1920s?

The jazz age.

Which baseball player hit 60 home runs in 1927

babe Ruth

Who made the first solo flight across the Atlantic Ocean in 1927?

Charles Lindbergh

Which amendment established prohibition?

18th amendment.

Illegal bars that operated during prohibition were called

speakeasies