Transcript THE GREAT DEPRESSION AND THE NEW DEAL

DISASTER AND RECOVERY
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Causes:
stock speculation- buying stock when the price is
low and selling it when the price rises in hopes of
making a quick profit; many Americans were
stuck with worthless stock when the market
crashed
buying on the margin- Americans were able to
purchase stock by putting down as little as 10%
of the stock’s value; Americans then borrowed
money from the bank to pay for the rest of the
stock; when the market crashed, Americans had
to pay the loan back to the bank even though the
stock was worthless
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overproduction- various industries kept up
production even though there was not a
demand from the market
(ex. Automobiles, crops, construction);
supply exceeded demand which made prices
fall
stock market crash- this was the spark that
began the depression; 16 million shares of
stock were traded******
individual debt- Americans were in debt due
to the installment buying of the 20’s
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stock market crash- this was the spark that began
the depression; 16 million shares of stock were
traded******
individual debt- Americans were in debt due to the
installment buying of the 20’s
international debt- the US was in debt due to WWI; we
practically financed the entire war for the Allies
inevitability of depressions- depressions are a natural
part of the business cycle; they will happen eventually
unequal distribution of income- “the rich got richer
and the poor got poorer”; salaries of the wealthiest
percent of Americans increased while wages of the
poorest percent of Americans decreased
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Which was an important factor contributing
to the Great Depression of 1929?
A. unsound expansion of credit
B. government restrictions of business
activities
C. increased importation of foreign goods
D. large military expenditures
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An important factor that influenced Franklin
Roosevelt’s victory over Herbert Hoover in
the Presidential election of 1932 was the —
A end of World War I.
B beginning of World War II.
C passage of the Clayton Antitrust Act.
D continuation of the Great Depression.
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HERBERT HOOVER US PRESIDENT
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Herbert Hoover- elected in 1928 by promising a “chicken
in every pot, a car in every garage”; was blamed for
the depression even though it was not his fault; he was in
the wrong place at the wrong time (White House)
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Hoovervilles, Hoover flags, etc.- names given to common
objects that showed Americans blamed Hoover
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“Brother can you spare a dime”- lyrics to a famous song of
the depression
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Bonus Army- group of WWI vets who marched in
Washington, DC ; they wanted the govt to pay them then
the bonus that they had been promised for fighting in
WWI; they did not receive it during the depression
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The Scottsboro Case- involved 9 African-American
teenaged boys who were accused of raping 2 white girls
on a train; was an ex. of the intolerance of the period; they
were later all freed and charges were dropped
Dust Bowl- natural disaster that occurred out west where a
severe drought and heavy winds blew the dry
topsoil east; poor farming practices intensified the
situation (lack of crop rotations); many moved to
California and were nicknamed Okies (most moved from
Oklahoma)
25% unemployment- highest average unemployment
during the depression; in 1933
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During the 1930s, many Americans moved
out of the Great Plains states to —
A escape the Dust Bowl.
B work in railroad construction.
C avoid Native American uprisings.
D acquire free land in California.
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Why were the “Dust Bowl” conditions of the
1930s so significant in United States
history?
A They occurred at the same time as the
Great Depression.
B They included most of the farming regions
of the Northwest.
C They increased farm production by nearly
thirty percent.
D They provided increased opportunities for
government jobs.
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What was a significant result of the Great
Depression?
A. elimination of the business cycle
B. failure of the Republican Party to win
the Presidency
C. a major increase in the amount of
farmers in the United States
D. a federal government that provided a
“safety net” for the people
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How did Herbert Hoover try to deal with the
Great Depression?
A By giving emergency loans to large
businesses
B By distributing food and clothing to the
needy
C By giving grants to local communities
D By increasing government spending
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. Identify which statement (s) below is true.
A. Wages had failed to keep pace with
production in the United States during the
1920’s.
B. The wealth of the United States had
become evenly dispersed.
C. Inventions were scarce. There were not
enough goods being produced to meet the
needs of the people.
D. Very few people within the United
States had invested in the Stock Market.
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. The severity of the Great Depression
became worse when the people:
A. decided to re-elect Hoover as
President in 1932.
B. begin to buy up more goods than the
nation’s industries could produce.
C. begin to seek agricultural jobs in larger
numbers.
D. began to panic, withdrawing their
money from banks and avoiding spending.
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Racism and discrimination was evident during
the 1930’s with the example of:
A. Sacco and Vanzetti
B. Hoover and the Bonus Army
C. The Scottsboro Boys
D. The Scopes Trial
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Election of 32 and 36- FDR won both
Franklin Roosevelt- promised Americans a “New Deal”
and began social programs that helped ease the
depression
New Deal Agencies: CCC (worked outdoors doing
conservation projects); CWA, PWA, WPA (all gave jobs
building roads, bridges, and dams; WPA also helped
writers and artists); TVA (built dams that created
hydroElectricity); FDIC (insured bank deposits); SSI
(pension plan for elderly and disabled); AAA (told
Farmers not to farm ¼ to ½ of land in an effort to
raise farm prices)
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Relief (the “dole”):
The Origins of the Welfare State
Recovery:
Ending the Depression
Banking, Industry and Agriculture
Reform:
FDIC, Social Security, Labor Laws,
Stock Market Regulations,
Farm Subsidies
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FDR declared a Bank Holiday during the first
100 days. What was the purpose of this
holiday?
A. to give employees a much needed
vacation
B. to demonstrate control over the
banking industry
C. to investigate and eliminate the use of
cash
D. to inspect the banks to make sure that
they are sound before reopening
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Court packing plan or Judiciary
Reorganization Bill- when FDR tried to get
Congress to allow him to add new
justices to the Sup Ct for every justice over
70; he was mad b/c they ruled many agencies
unconstitutional
Dorothea Lange- photographer during the
Depression whose photos help bring govt aid
to farmers out west
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On February 5, 1937, President Franklin Roosevelt
submitted to Congress a plan for reorganizing the
federal judiciary. His proposal included an increase in
membership on the Supreme Court, and additional
judges at all levels of the federal judiciary.
Which of the following caused Roosevelt to submit his
proposals?
A Most Supreme Court justices were young and
inexperienced.
B Most Supreme Court justices were retiring soon.
C Roosevelt received bad advice from his presidential
advisors.
D The Supreme Court declared many of his New Deal
programs unconstitutional.
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The MAIN reason FDR asked Congress to increase
the number of Supreme Court justices was:
A. there was simply to much work for 9
justices
B. he felt that all justices over the age of 70
were to old and inconsistent with the changing
times
C. he felt that 15 judges would represent the
diversity in the United States
D. the Supreme Court had declared several
laws and agencies unconstitutional
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Causes of Great Depression
Consumer Debt- caused by installment buying; people
overextended themselves; they bought too much and could not
make the payments
Overproduction/Under consumption- Farmers and industries
were producing too many crops/goods; the demand was low
which made prices fall
Stock market speculation- buying and selling stock quickly in
order to make a quick profit; this made the market unstable
Bank failures- over 5,000 banks closed when there was a “run on
the banks”; people withdrew their savings and banks ran out of
money and were forced to close
Unequal distribution of wealth- “the rich got richer and the poor
got poorer”; the incomes of the wealthy increased while incomes
of the poor decreased; there was a huge gap between the two
groups
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Social Security- provides a monthly pension to Americans over
the age of 65, disabled, handicapped, unemployed, etc; FDR
began SS because many elderly Americans had lost their savings
due to the depression and were not able to find work to provide
for themselves
Federal Deposit Insurance Corporation- FDIC insures bank
deposits up to $100,000 today and $2,500 back then. Banks
were forced to close when there was a “run on the banks” (when
Americans rushed to withdraw their savings). FDIC promises us
that we will never have to worry again about losing our money if
it is in a bank. It is insured by the US Government.
Tennessee Valley Authority- The TVA built a series of dams in TN
and surrounding Southeastern states that provided hydroelectric
power. Many of these states did not have electricity. The dams
also helped with flood control. Ultimately, the TVA provided
much need jobs and provided electricity in the end.
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How did New Deal programs and policies change
the role of the federal government
in domestic affairs?
A States were given the exclusive power to
implement relief programs for
unemployment.
B The federal government expanded its role by
providing for the welfare of its citizens.
C The federal government implemented new
security procedures by interning suspected
traitors and spies.
D States were granted authority to regulate
businesses within their boundaries.
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The creation of the Tennessee Valley
Authority (TVA) BEST illustrates the New
Deal's commitment to —
A financial reform.
B agricultural relief.
C rural electrification.
D industrial recovery.
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Which New Deal program continues to
provide for the welfare of retired workers?
A Social Security Administration
B Works Progress Administration
C Civilian Conservation Corps
D Resettlement Administration
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The
The
The
The
Regulatory State
Welfare State
Warfare State
New Deal Coalition
Farmers
Workers
Minorities
Urbanites
Middle Class
Senior Citizens
The Poor
Bosses
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Critics of the New Deal stated:
A. it weakened the power of the chief
executive
B. it failed to address the labor needs in
America
C. allowed laissez-faire principles to dictate
legislation
D. created a federal bureaucracy that was to
powerful
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The New Deal can BEST be described as:
A. democratic socialism
B. bold, persistent experimentation
C. laissez-faire government
D. minimal government intervention
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The economic depression of the 1930s was
ended by the —
A demand for manufactured goods caused by
World War II.
B effects of the New Deal on the United States
economy.
C removal of federal regulations on the stock
market.
D “baby boom” and the resulting rise of
suburbs.