The GREAT DEPRESSION & the NEW DEAL [APUSH Unit 7 Topics 9-10] Period 7: 1898-1945
Overview of the Great Depression
The Great Depression marked a significant economic downturn in the United States, following a period of prosperity in the 1920s.
The stock market crash on October 29, 1929, known as Black Tuesday, is widely regarded as the beginning of the Great Depression.
Causes of the Great Depression
Agricultural Overproduction
Farmers faced severe debt due to overproduction, which was exacerbated by high tariffs.
In 1930, the Hawley-Smoot Tariff was enacted, severely limiting the ability of the U.S. to sell its excess products internationally.
Stock Market Speculation
During the 1920s, the stock market was artificially inflated due to risky investment behaviors, such as buying on margin.
Investors borrowed money to buy stocks, creating unsustainable debt when the market ultimately crashed.
Effects of the Great Depression
Americans faced widespread poverty and homelessness.
Foreclosures on homes led many to live in shantytowns known as Hoovervilles, named derisively after President Hoover.
Hoover initially favored minimal government intervention, believing the economy would recover naturally.
Political Change: The Election of 1932
In the presidential election of 1932, Democrat Franklin D. Roosevelt won a landslide victory, contrasting sharply with Hoover's policies.
Roosevelt campaigned on a platform of heavy government intervention in the economy.
Once in office, he expanded the federal government's size and scope more than any previous president.
The New Deal
The New Deal was Roosevelt's response to the Great Depression, aimed at relief, recovery, and reform.
Relief for the Unemployed
Programs like the Public Works Administration (PWA), Tennessee Valley Authority (TVA), and Civilian Conservation Corps (CCC) offered employment and infrastructure development.
Recovery for Businesses
The National Industrial Recovery Act (NIRA) of 1933 aimed to reduce competition that kept wages low, establishing codes for fair business practices.
Reform of Economic Institutions
The Glass-Steagall Act enacted banking regulations to restore confidence, creating the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits.
The Securities and Exchange Commission (SEC) was established to regulate the stock market and prevent market abuses.
Second Phase of the New Deal
The Social Security Act of 1935 was a key program offering income protection for workers over age 65, establishing a safety net that still exists today.
Legacy and Criticism of the New Deal
The New Deal transformed the United States into a limited welfare state and expanded modern American liberalism.
Criticism came from both sides:
Liberals felt it benefited businesses over the unemployed.
Conservatives opposed federal overreach, challenging several New Deal programs in the Supreme Court.
Judicial Responses
Roosevelt proposed a judicial reorganization bill to appoint new justices sympathetic to the New Deal, but it faced bipartisan opposition and was never passed.
Conclusion
Despite varying assessments, the New Deal's reforms and regulatory agencies left a lasting legacy and reshaped political alignments, drawing marginalized groups to the Democratic Party.
The New Deal
The New Deal was a series of programs and reforms implemented by President Franklin D. Roosevelt in response to the Great Depression. It aimed to provide relief for the unemployed, promote economic recovery, and reform financial systems to prevent future crises.
Key Components of the New Deal
Relief for the Unemployed
Public Works Administration (PWA): Provided jobs through the construction of public infrastructure such as bridges, schools, and roads.
Tennessee Valley Authority (TVA): Aimed to modernize the Tennessee Valley region through flood control, electricity generation, and economic development.
Civilian Conservation Corps (CCC): Created jobs in conservation projects, such as planting trees and building parks, targeting young men.
Recovery for Businesses
National Industrial Recovery Act (NIRA) of 1933: Established codes for fair business practices to promote fair wages and hours, aimed at reducing competition that kept wages low.
Reform of Economic Institutions
Glass-Steagall Act: Introduced banking regulations that separated commercial banking from investment banking to reduce the risk of financial speculation.
Federal Deposit Insurance Corporation (FDIC): Created to insure bank deposits, restoring public confidence in the banking system.
Securities and Exchange Commission (SEC): Established to regulate the stock market and prevent abuses that led to the crash of 1929.
Second Phase of the New Deal
Social Security Act of 1935: Established a system of old-age benefits for workers, unemployment insurance, and support for vulnerable groups, laying the foundation for the modern welfare state.
Impact and Legacy
The New Deal represented a significant transformation in the role of the federal government, leading to the establishment of a safety net for Americans and promoting government intervention in the economy. It remains a critical point of discussion regarding the balance of government power and individual freedoms in economic policy.
Video Name
The Great Depression and the New Deal
Main Idea
The Great Depression was a significant economic downturn in the United States initiated by the stock market crash in 1929, leading to widespread poverty, homeless camps, and significant political change, notably the election of Franklin D. Roosevelt and the implementation of the New Deal, which aimed to provide relief, recovery, and reform for the struggling economy.
Vocabulary
Great Depression: A severe worldwide economic downturn that began in 1929 and lasted throughout the 1930s.
Black Tuesday: The day the stock market crashed on October 29, 1929, marking the start of the Great Depression.
Agricultural Overproduction: The excessive production of crops that led to falling prices and farmers' debts.
Hawley-Smoot Tariff: A U.S. law enacted in 1930 that raised tariffs on many imports, worsening the economic downturn.
Stock Market Speculation: Risky investment practices, such as buying stocks on margin, that inflated stock prices in the 1920s.
Hoovervilles: Makeshift homeless encampments during the Great Depression, named after President Herbert Hoover.
New Deal: The series of programs and reforms implemented by Franklin D. Roosevelt to address the economic crisis of the Great Depression.
Public Works Administration (PWA): A New Deal agency that funded the construction of public infrastructure to create jobs.
Tennessee Valley Authority (TVA): A New Deal program aimed at modernizing the Tennessee Valley region through flood control and economic development.
Civilian Conservation Corps (CCC): A New Deal program that provided jobs in environmental conservation projects.
National Industrial Recovery Act (NIRA): A 1933 law aimed at promoting fair competition and improving labor conditions.
Glass-Steagall Act: A federal law that separated commercial banking from investment banking.
Federal Deposit Insurance Corporation (FDIC): An agency created to insure bank deposits and protect depositors' funds.
Securities and Exchange Commission (SEC): A government agency established to regulate the securities market and protect investors.
Social Security Act of 1935: A law that established a system of old-age benefits and unemployment insurance, forming the basis of the modern welfare state.
Video Name
The Great Depression and the New Deal Heimler history
Main Idea
The Great Depression was a significant economic downturn in the United States initiated by the stock market crash in 1929, leading to widespread poverty, homeless camps, and significant political change, notably the election of Franklin D. Roosevelt and the implementation of the New Deal, which aimed to provide relief, recovery, and reform for the struggling economy.
Vocabulary
Great Depression: A severe worldwide economic downturn that began in 1929 and lasted throughout the 1930s.
Black Tuesday: The day the stock market crashed on October 29, 1929, marking the start of the Great Depression.
Agricultural Overproduction: The excessive production of crops that led to falling prices and farmers' debts.
Hawley-Smoot Tariff: A U.S. law enacted in 1930 that raised tariffs on many imports, worsening the economic downturn.
Stock Market Speculation: Risky investment practices, such as buying stocks on margin, that inflated stock prices in the 1920s.
Hoovervilles: Makeshift homeless encampments during the Great Depression, named after President Herbert Hoover.
New Deal: The series of programs and reforms implemented by Franklin D. Roosevelt to address the economic crisis of the Great Depression.
Public Works Administration (PWA): A New Deal agency that funded the construction of public infrastructure to create jobs.
Tennessee Valley Authority (TVA): A New Deal program aimed at modernizing the Tennessee Valley region through flood control and economic development.
Civilian Conservation Corps (CCC): A New Deal program that provided jobs in environmental conservation projects.
National Industrial Recovery Act (NIRA): A 1933 law aimed at promoting fair competition and improving labor conditions.
Glass-Steagall Act: A federal law that separated commercial banking from investment banking.
Federal Deposit Insurance Corporation (FDIC): An agency created to insure bank deposits and protect depositors' funds.
Securities and Exchange Commission (SEC): A government agency established to regulate the securities market and protect investors.
Social Security Act of 1935: A law that established a system of old-age benefits and unemployment insurance, forming the basis of the modern welfare state.