Chapter 18: The Great Depression Begins, 1929-1932

Chapter 18: The Great Depression Begins, 1929-1932

• The Causes of the Great Depression

  • Vocab

    • Speculative investments: Investments in financial assets that carry high risk with the hope of significant returns.

    • Credit overextension: A situation where borrowers take on too much debt, exceeding their ability to repay.

    • Economic mobility: The ability of individuals or families to improve their financial status, often measured in terms of income.

    • Agricultural surplus: A situation where the supply of agricultural products exceeds the demand, leading to falling prices.

  • Important Dates

    • October 1929: Stock market crash

    • 1932: Election of Franklin D. Roosevelt

  • Important Info

    • Key causes included a drop in farm prices, uneven income distribution, and speculative investments.

    • The agricultural sector suffered due to reduced prices and consumer spending.

  • Important People

    • Herbert Hoover: President during the onset of the Great Depression, known for his limited response.

    • Franklin D. Roosevelt: Elected in 1932, promising the New Deal to recover from the depression.

  • Important Events

    • Black Tuesday (October 29, 1929): Marked the stock market crash and the beginning of the widespread financial crisis.

    • Emergence of Hoovervilles: Shantytowns named after President Hoover, symbolizing the crisis.

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

• The First New Deal

  • Vocab

    • Relief: Financial aid given to those in need, especially during economic hardship.

    • Recovery: Efforts aimed at restoring the economy to normal levels of activity.

    • Reform: Changes implemented to correct economic or social issues to prevent future crises.

    • FDIC (Federal Deposit Insurance Corporation): A U.S. government agency that insures deposits in banks to prevent loss in the event of bank failures.

  • Important Dates

    • March 1933: Roosevelt's inauguration and start of the New Deal programs

  • Important Info

    • The First New Deal focused on immediate relief efforts to combat the economic crisis impacting the public.

  • Important People

    • Franklin D. Roosevelt: Architect of the New Deal, implementing measures to revive the economy.

  • Important Events

    • Introduction of the Agricultural Adjustment Act aimed at raising crop prices by reducing surpluses.

• The Second New Deal

  • Vocab

    • Social Security Act: Legislation providing financial assistance to retired individuals and the unemployed.

    • Works Progress Administration (WPA): A New Deal agency that created jobs in public works projects.

  • Important Dates

    • 1935: Passage of the Social Security Act

  • Important Info

    • The Second New Deal expanded the original New Deal, addressing longer-term reforms and social safety nets.

  • Important People

    • Harry Hopkins: Important aide to FDR, instrumental in the New Deal programs.

  • Important Events

    • Establishment of the Social Security system providing financial assistance to the elderly and unemployed.

• The New Deal Coalition

  • Vocab

    • Coalition: An alliance of distinct parties or groups coming together for a common purpose.

    • Labor unions: Organizations representing workers in various industries to negotiate better conditions and wages.

  • Important Dates

    • 1930s: Formation of the Democratic coalition that supported the New Deal

  • Important Info

    • The New Deal Coalition brought together diverse groups, including farmers, industrial workers, and minority voters, supporting the Democratic Party.

  • Important People

    • Franklin D. Roosevelt was a central figure in mobilizing a variety of social groups under the Democratic banner.

  • Important Events

    • The 1936 election showcased the strength of the New Deal Coalition in supporting FDR's policies.

Chapter 20: The Dust Bowl

• Vocab

  • Dust Bowl: A period in the 1930s characterized by severe dust storms that greatly damaged the ecology and agriculture of the US.

  • Drought: A prolonged dry period with insufficient rainfall that severely impacts agricultural production.

• Important Dates

  • 1930s: The Dust Bowl era significantly impacted the Great Plains.

• Important Info

  • The Dust Bowl was caused by a combination of severe drought and inappropriate agricultural practices, such as over-farming, which led to soil erosion.

  • It resulted in the massive displacement of farmers, known as “Okies,” who migrated westward in search of better living conditions, particularly to California.

• Important People

  • John Steinbeck: Author who wrote about the struggles of Dust Bowl migrants in his novel "The Grapes of Wrath."

• Important Events

  • The Dust Bowl caused a significant rural exodus.

• The Causes of the Great Depression

  • Vocab

  • Speculative investments: Investments in financial assets that carry high risk with the hope of significant returns.

  • Credit overextension: A situation where borrowers take on too much debt, exceeding their ability to repay.

  • Economic mobility: The ability of individuals or families to improve their financial status, often measured in terms of income.

  • Agricultural surplus: A situation where the supply of agricultural products exceeds the demand, leading to falling prices.

  • Important Dates

  • October 1929: Stock market crash

  • 1932: Election of Franklin D. Roosevelt

  • Important Info

  • Key causes included a drop in farm prices, uneven income distribution, and speculative investments.

  • The agricultural sector suffered due to reduced prices and consumer spending.

• Impact of the Great Depression

  • Vocab

  • Unemployment: The state of being without a job despite actively looking for work.

  • Hoovervilles: Shantytowns named after President Hoover, where displaced people lived.

  • Important Dates

  • 1930s: Widespread unemployment reached heights of approximately 25%.

  • Important Info

  • The Great Depression resulted in millions of Americans losing their jobs, homes, and savings, leading to hunger and poverty.

• Responses to the Great Depression

  • Vocab

  • Public works: Government-sponsored projects aimed at constructing public facilities to provide jobs.

  • New Deal: A series of programs and policies established by Franklin D. Roosevelt to help the country recover from the Great Depression.

  • Important Dates

  • 1932: Franklin D. Roosevelt’s election, leading to eventual implementation of the New Deal.

  • Important Info

  • Initial responses to the Depression by President Hoover were criticized as inadequate, leading to a demand for stronger government intervention that FDR eventually addressed with the New Deal initiatives.