Study Guide - Unit 7: Great Depression/World War II

Causes of the Great Depression

• Financial Panic

  • A sudden and severe financial crisis leading to widespread economic decline.

• Effects on:

  • Individuals: Major job losses, poverty, and decline in living standards.

  • Banks: Bank failures and loss of savings for many citizens.

  • Businesses: Business bankruptcies and a significant drop in consumer spending.

• Causes:

  • Various factors such as over-speculation in the stock market, borrowing beyond means, and ineffective government policies.

• Bank Failures:

  • Bank runs: People withdrawing their deposits en masse, causing banks to collapse.

  • Deposit insurance: Introduction of measures like FDIC to protect depositors, ensuring confidence in the banking system.

America Endures the Great Depression

• Farming Crisis:

  • Various factors contributing to the decline of the agricultural sector.

  • Dust Bowl: Severe droughts that devastated the farmland, particularly in the Midwest.

  • Tariffs: High tariffs that reduced international trade and intensified the economic decline.

• Hoover’s Response:

  • Efforts included passing the Smoot-Hawley Tariff Act, which raised tariffs but led to international trade retaliation.

• Hoovervilles:

  • Makeshift shantytowns where homeless people lived during the Great Depression, named after President Hoover.

• Bonus March:

  • A protest by World War I veterans seeking payment of their service bonuses that were due in 1945.

FDR & the New Deal

• Purpose of the New Deal:

  • A series of programs and policies designed to alleviate the economic hardships of the Great Depression.

• Relief/Recovery/Reform (“the Three R’s”):

  • Relief: Immediate support for the needy and unemployed.

  • Recovery: Measures to stimulate economic growth.

  • Reform: Changes to prevent future economic crises and protect workers.

• Notable New Deal Programs:

  • FDIC (Federal Deposit Insurance Corporation): Insures bank deposits to maintain public confidence in the banking system.

  • SEC (Securities and Exchange Commission): Regulates the stock market to prevent abuses leading to crashes.

  • WPA (Works Progress Administration): Provides jobs in public works projects to reduce unemployment.

• Fireside Chats:

  • FDR's radio broadcasts aimed at informing and comforting the public during difficult times.

• Effectiveness of the New Deal:

  • Ongoing debate over whether the New Deal programs effectively resolved the Great Depression's economic issues.

• New Deal’s Legacy:

  • Expanded the role of government in the economy and established key social welfare programs.

World War II & Pearl Harbor

• Fascism (definition):

  • A political system characterized by totalitarianism and dictatorial power, often led by a single leader.

• Failures of Treaty of Versailles:

  • It left Germany with economic turmoil, contributing to WWII.

• League of Nations (weaknesses):

  • Lacked enforcement power and was ineffective in maintaining peace.

• Appeasement:

  • Policy of conceding to aggression by a warlike nation, notably practiced before WWII against Adolf Hitler.

• Isolationists vs. Interventionists:

  • Isolationists: Believed America should stay out of European conflicts.

  • Interventionists: Argued that America should help the Allies in their struggle against Axis powers.

• Neutrality Acts:

  • A series of laws passed in the 1930s aimed at maintaining American neutrality in foreign conflicts.

• Disagreements between Japan and the United States:

  • Rising tensions, particularly regarding Japan's expansion in Asia.

• Japan’s Goals in Asia:

  • To dominate Asia and secure resources for its military and economy.

• Export Control Act & Oil Embargo:

  • Legislation aimed at restricting exports to Japan, leading to increased tensions.

• Attack on Pearl Harbor:

  • Was it successful? Yes, it severely damaged the U.S. Pacific fleet.

  • What was the result? Prompted the United States to enter WWII.

Japanese Internment Camps

• Executive Order 9066:

  • Authorized the internment of Japanese Americans during WWII.

• Was Japanese Internment justified?

  • Ongoing debate regarding the necessity and morality of this decision during the war.

• Korematsu v. United States:

  • A landmark Supreme Court case that upheld the internment as a wartime necessity, though later deemed a grave injustice.

The War Effort and America’s Response to the Holocaust

• Preparing for War:

  • Mobilization of the economy and military in preparation for WWII.

• Women in the Workforce:

  • Increased participation of women in jobs traditionally held by men, especially in factories and the military.

• Office of War Information:

  • Government agency created to promote patriotism and war efforts through communication and propaganda.

• American Response to the Holocaust:

  • Varied responses, including the establishment of the War Refugee Board to assist victims of the Holocaust.

America Fights WWII

• D-Day:

  • The Allied invasion of Normandy, a crucial turning point in the war against Nazi Germany.

• Ally Strategy in the Pacific (fighting Japan):

  • Focused on island-hopping to capture strategic territories and move closer to Japan.