U.S. History - Chapter 18-19 - The Great Depression & The New Deal

Chapter 18: The Great Depression Begins, 1929-1932

Lesson 1 - The Causes of the Great Depression

• Vocab

  • Speculative investments: Investments in financial assets that carry high risk with the expectation of significant returns.
  • Credit overextension: Borrowers taking on excessive debt beyond their repayment capacity.
  • Economic mobility: The ability of individuals or families to improve their financial status, often quantified by income changes.
  • Agricultural surplus: A situation where the supply of agricultural products exceeds demand, leading to declining prices.

• Important Dates

  • October 1929: Stock market crash marks the beginning of the Great Depression.
  • 1932: Franklin D. Roosevelt is elected President.

• Important Info

  • Key contributors to the Great Depression included:
  • Drop in farm prices: Farmers were unable to sell their goods profitably, leading to financial strain.
  • Uneven income distribution: Wealth was concentrated in the hands of a few, leading to consumer spending reduction.
  • Speculative investments: High-risk investments contributed significantly to market instability.

• Effect on Agriculture

  • The agricultural sector faced tremendous pressure due to lower prices and decreased consumer spending, further worsening economic conditions.

Lesson 2 - Impact of the Great Depression

• Vocab

  • Unemployment: Condition of being without work despite actively seeking employment.
  • Hoovervilles: Makeshift shantytowns named after President Hoover, where the displaced and impoverished lived.

• Important Dates

  • 1930s: Unemployment rates soared, reaching approximately 25%.

• Important Info

  • The Great Depression resulted in widespread hardships for Americans, including:
  • Job losses, evictions, and depletion of savings.
  • Severe hunger and widespread poverty among various demographics.

Lesson 3 - Responses to the Great Depression

• Vocab

  • Public works: Government-funded projects designed to create jobs and provide public services.
  • New Deal: Series of programs and policies initiated by Franklin D. Roosevelt to combat the effects of the Great Depression.

• Important Dates

  • 1932: Franklin D. Roosevelt is elected, marking the inception of the New Deal initiatives.

• Important Info

  • Initial efforts by President Hoover were criticized as inadequate, prompting calls for more robust government intervention that FDR later addressed through the New Deal initiatives.

Chapter 19: Roosevelt and the New Deal, 1933-1941

Lesson 1 - The First New Deal

• Vocab

  • Relief: Financial assistance provision to those facing economic hardship.
  • Recovery: Efforts aimed at rejuvenating the economy to stabilize activity levels.
  • Reform: Implementations of changes designed to rectify economic or social issues to mitigate future crises.
  • FDIC (Federal Deposit Insurance Corporation): Agency insuring bank deposits in case of bank failures.

• Important Dates

  • March 1933: Roosevelt's inauguration; marking the start of the New Deal programs.

• Important Info

  • The First New Deal primarily targeted immediate relief efforts to address the economic crisis for the general public.

• Important People

  • Franklin D. Roosevelt: Main designer and implementer of the New Deal aimed at revitalizing the economy.

• Important Events

  • Introduction of the Agricultural Adjustment Act designed to elevate crop prices by minimizing surpluses.

Lesson 2 - The Second New Deal

• Vocab

  • Social Security Act: Law providing financial support to retired individuals and the unemployed.
  • Works Progress Administration (WPA): Agency established under the New Deal specifically for job creation in public works.

• Important Dates

  • 1935: Passage of the Social Security Act which institutionalized financial assistance for the elderly and unemployed.

• Important Info

  • The Second New Deal expanded the initial framework, further enhancing long-term reforms and social safety nets to benefit the populace.

• Important People

  • Harry Hopkins: Key aide to FDR, playing a significant role in ensuring the success of New Deal policies.

• Important Events

  • Establishment of the Social Security System providing necessary financial support to vulnerable citizens.

Lesson 3 - The New Deal Coalition

• Vocab

  • Coalition: Alliance of distinct groups uniting for a common cause.
  • Labor unions: Organizations that advocate for workers' rights and negotiate on their behalf.

• Important Dates

  • 1930s: Formation of the Democratic coalition supporting the New Deal initiatives.

• Important Info

  • The New Deal Coalition united various constituencies, including farmers, industrial workers, and minority voters in solidarity behind the Democratic Party's agenda.

• Important People

  • Franklin D. Roosevelt: Central figure in consolidating diverse social groups within the Democratic framework.

• Important Events

  • The 1936 election illustrated the vigor of the New Deal Coalition endorsing FDR’s policies.

The Dust Bowl

• Vocab

  • Dust Bowl: A significant ecological disaster during the 1930s characterized by severe dust storms affecting agriculture in the U.S.
  • Drought: Extended period of insufficient rainfall negatively impacting agricultural output.

• Important Dates

  • 1930s: The Dust Bowl profoundly affected the Great Plains region.

• Important Info

  • The Dust Bowl was a result of:
  • Severe drought conditions coupled with poor agricultural practices like over-farming that contributed to soil erosion.
  • Led to the large-scale displacement of farmers, referred to as "Okies", who migrated, particularly to California, in search of improved living conditions.

• Important People

  • John Steinbeck: Author known for portraying the hardships of Dust Bowl migrants in his acclaimed novel The Grapes of Wrath.

• Important Events

  • The Dust Bowl incited a significant migration trend from rural areas due to agricultural devastation.