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Study Guide: U.S. History 2 – Depression and New Deal

Key Terms and Concepts:

1. Stock Market Crash (1929):

   • The collapse of the stock market in October 1929, marking the beginning of the Great Depression. It caused widespread financial panic, leading to bank failures, loss of savings, and mass unemployment.

2. Herbert Hoover:

   • The 31st President of the United States (1929-1933), who was in office during the onset of the Great Depression. His handling of the depression is often criticized for being ineffective, though he did take some measures to help recovery.

3. Hoovervilles:

   • Shantytowns built by homeless people during the Great Depression, named derisively after President Hoover, who was blamed for the economic hardships.

4. Bonus Army (1932):

   • A group of World War I veterans who marched to Washington, D.C., demanding early payment of a bonus promised to them. The protest ended when the U.S. Army forcibly removed the veterans, leading to public outrage.

5. FDR (Franklin D. Roosevelt):

   • The 32nd President of the United States (1933-1945). He led the country through the Great Depression and World War II, instituting the New Deal programs to help restore the economy.

6. First 100 Days:

   • The first three months of FDR's presidency (March-June 1933), during which he passed a remarkable number of laws and programs aimed at relief, recovery, and reform. Some key initiatives included the Banking Act and the creation of agencies like the FDIC and SEC.

7. Bank Holiday:

   • A temporary closure of all banks in the U.S. by FDR in 1933 to prevent further bank runs and restore public confidence in the financial system.

8. New Deal:

   • A series of programs, policies, and reforms enacted by FDR during his first two terms to provide relief to the unemployed, recovery to the economy, and reforms to prevent future depressions.

9. Fireside Chats:

   • A series of radio addresses by FDR where he directly communicated with the American people, explaining New Deal programs and reassuring them about the country’s recovery.

10. Brain Trust:

• A group of intellectuals, academics, and experts who advised FDR on economic and social policies during the New Deal.

11. Frances Perkins:

• The first woman to serve in the U.S. Cabinet as Secretary of Labor under FDR. She played a key role in drafting New Deal legislation, including the Social Security Act.

12. Alphabet Acts:

• A series of New Deal programs and agencies, often named using acronyms:

  • FDIC (Federal Deposit Insurance Corporation): Insures bank deposits to prevent bank failures.

  • SEC (Securities and Exchange Commission): Regulates the stock market and prevents fraudulent practices.

  • CCC (Civilian Conservation Corps): Provided jobs for young men in environmental conservation projects.

  • WPA (Works Progress Administration): Created jobs for millions in public works, arts, and infrastructure.

  • NIRA (National Industrial Recovery Act): Aimed to stabilize industrial prices and promote fair labor practices.

  • AAA (Agricultural Adjustment Act): Paid farmers to reduce production to raise crop prices.

  • SSA (Social Security Act): Established a system of unemployment insurance, retirement benefits, and welfare for the disabled.

  • TVA (Tennessee Valley Authority): Developed the Tennessee Valley region by providing electricity, flood control, and economic development.

13. William Lemke:

• A politician and critic of FDR, Lemke promoted the idea of a "third-party" movement, opposing some New Deal policies.

14. Dr. Francis Townsend:

• A physician who advocated for a pension plan for the elderly, which influenced the creation of Social Security.

15. Father Charles Coughlin:

• A Catholic priest and radio personality who was initially supportive of FDR but later criticized him for not doing enough to fight economic inequality, eventually becoming an outspoken critic.

16. Huey Long:

• A populist Louisiana senator who proposed the "Share Our Wealth" plan, which advocated for wealth redistribution through taxes on the rich.

17. Court Packing:

• FDR’s failed attempt in 1937 to expand the number of Supreme Court justices from 9 to 15, in order to gain favorable rulings for his New Deal programs.

Main Concepts:

1. Why Did FDR Win in 1932?

   • FDR won the 1932 election because he offered a clear, optimistic alternative to Hoover’s handling of the Great Depression. His promise of the New Deal, which promised relief, recovery, and reform, resonated with Americans suffering from the economic crisis.

2. What Were the “First Hundred Days?” Give Some Examples of What Happened.

   • The “First 100 Days” were marked by intense legislative action to address the Great Depression. Notable examples include:

     • Banking Act of 1933 (establishing the FDIC)

     • Emergency Banking Relief Act (providing for the reopening of banks under government supervision)

     • Civilian Conservation Corps (CCC) (providing jobs in public works projects)

     • Agricultural Adjustment Act (AAA) (providing subsidies to farmers to reduce production)

3. What Criticism Did FDR Get from Both the Left and the Right on the New Deal?

   • From the Left: Critics argued that the New Deal didn't go far enough in redistributing wealth and that it favored big business over the working class.

   • From the Right: Opponents believed the New Deal expanded the federal government too much and threatened free enterprise by creating a welfare state and increasing taxes.

4. What Was the Role of Eleanor Roosevelt as First Lady? How Was This Different than Past Women in the Same Position?

   • Eleanor Roosevelt redefined the role of First Lady by actively engaging in political and social issues, advocating for civil rights, women’s rights, and the poor. Unlike past First Ladies, she publicly voiced her opinions and worked alongside FDR to push for progressive reforms.

5. How Did the New Deal Impact Women?

   • Women gained new opportunities through New Deal programs, including increased government jobs and social welfare programs. However, they were often paid less than men and faced discrimination in certain sectors.

6. How Did the New Deal Impact Minorities?

   • African Americans, Native Americans, and other minorities benefitted from some New Deal programs, but discrimination persisted. The New Deal did provide some relief, such as job creation, but many programs were racially segregated or excluded minority groups from full participation.

7. What Problems Were Created for the New Deal by the Supreme Court? How Did FDR Respond?

   • The Supreme Court struck down several key New Deal programs, such as the NIRA and the AAA, arguing they were unconstitutional. FDR responded with the “court-packing” plan, proposing to add more justices to the Supreme Court to secure favorable rulings (which was unsuccessful and controversial).

8. Were There Regional Differences to the New Deal? Explain.

   • Yes, there were regional differences, particularly between rural and urban areas. Programs like the TVA focused on improving the South, while urban areas benefitted from infrastructure projects. The New Deal was more focused on addressing poverty in rural, underserved areas, but less attention was given to cities.

9. What Ended the New Deal? Was It Successful? Why or Why Not?

   • The end of the New Deal was largely due to the economic recovery during WWII, which provided jobs and ended the depression. The New Deal was successful in providing relief, reforming financial systems, and giving hope to millions, but it didn't fully solve all the economic problems. Long-term success came with programs like Social Security, though many New Deal measures were also critiqued for not ending racial or gender inequality.

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