Chapter 26: the Great Depression (1929-1941)

Chapter 26: The Great Depression (1929-1941)

Main ideas:

• The prosperity of the 1020s hid weaknesses in the economy that led to the Great Depression of the 1930s.
• The New Deal provided hope by offering programs aimed at relief, recovery, and economic reform.
• Not all Americans were happy with FDR’s New Deal policies

Vocabulary:

Section One:

Black Tuesday

Great Depression

bankrupt

relief programs

public works

Hoovervilles

bonus army

Section Two:

Fireside chats

New Deal

CCC: Civilian Conservation Corps

NRA: National Recovery Administration

TVA: Tennessee Valley Authority

Section Three:

pension

National Labor Relations Act

collective bargaining

Social Security Act

deficit spending

national debt

Section Four:

Dust bowl

Section One: The Great Crash

I. Signs of Economic Trouble

A. When President Hoover took office, three groups did not share in the prosperity of the 1920s. These three groups were:______, ______, and ______.

B. Farmers had troubles because they did not ______production and their ______rose faster than the prices received for their products. Then, they couldn’t ______and ______.

C. The economy slowed down but why didn’t anybody notice? ______

II. The Crash

A. Investors began to sell stocks and many had purchased stocks ______. This meant only part of the cost of the stock was paid for at the time of purchase. The rest was borrowed from their ______.

B. On ______, known as Black Tuesday, prices plunged because there were no buyers for millions of worthless stocks.

III. The Great Depression Begins

A. Overproduction: The ______and ______produced a lot of goods. Why couldn’t people afford to buy goods? ______

B. Banking system: The banks made ______and more than 5000 banks closed.

C. The downward spiral: After the stock market crash, ______had no money or capital for businesses to grow. The businesses could not ask the banks for ______because the banks were closing.

D. Bankrupt businesses: This put more people ______.

E. Worldwide crisis: The United States had loaned money to ______during World War I. Their banks failed as well.

IV. Hard Times

A. Rising unemployment: By the 1930s, ____ out of 4 workers was jobless.

B. The Human Cost:

List 3 ways families suffered:

1.

2.

3.

V. Hoover Responds

A. Hoover felt the government should ______respond and the ______must fix this crisis.

B. He opposed government relief programs, which are ______. Hoover wanted business leaders to keep ______.

C. He also felt private charities should set up ______.

D. As conditions worsened, he set up ______. This was the government hiring workers to build schools and pave highways.

E. Hoover did more than any previous president to reverse hard times. However, the public blamed him for doing too little, too late and called shacks where the homeless lived ______.

VI. The Bonus Army

A. World War I veterans wanted their bonuses early and marched on Washington DC. ______homeless veterans camped out for two months.

B. President Hoover ordered General Douglas MacArthur to use tanks, tear gas and machine guns to clear out the veterans. What impact did this have on President Hoover? ______

Section Two: FDR and the New Deal

I. Setting the Scene

A. FDR felt the ______must take an active role in managing the nation’s economy.

II. Franklin D. Roosevelt

A. During World War I, he was: ______

B. His Political party: ______

C. Governor of(state): ______

D. At the Democratic Convention, he pledged a “______.”

III. The Hundred Days

A. The Brain Trust:

B. The first challenge was to save ______. He declared a ______and closed each bank for four days.

C. FDR gave speeches known as ______to reassure the American People.

D. The first 100 Days in office there were ______major pieces of legislation passed.

E. The New Deal: list the 3 goals

1.

2.

3.

IV. Relief for the Jobless

A. There were ____ million Americans out of work when Roosevelt took office.

B. CCC: list 2 facts

1.

2.

C. WPA: list 2 facts

1.

2.

V. Promoting Recovery

A. To promote recovery, which industries needed help?

B. Each industry would have a set of rules for production, ______, prices, and ______.

C. A major problem for farmers was the ______of crops. The Agricultural Adjustment Act tried to solve this problem by paying farmers ______.

E. The TVA (Tennessee Valley Authority): To control flooding ______dams were built in seven states and produced electricity from the dams. Why was this controversial? ______

VI. Preventing Another Depression

A. The stock market and economic system needed to be reformed. One example of this was the FDIC. What did the FDIC do? ______

Section Three: Responses to the New Deal

I. Critics of the New Deal

A. Huey Long: “Share our Wealth” meant the ______should pay heavy taxes. He felt the New Deal did not ______to help the poor.

B. Francis Townsend: wanted every American over 60 to have a ______, or money paid to them each month.

C. Liberty League (conservative): felt the New Deal ______too much in people’s lives.

II. FDR and the Supreme Court

A. The AAA and NIRA were both found to be ______by the Supreme Court. There was too much ______to the President.

B. After the 1936 election, FDR proposed the Supreme Court go from ______to 15 justices.

C. Why would FDR want more justices?

D. Critics of FDR’s plan said he was trying to ______the courts, and violated the Constitutional principle of ______.

III. Labor Reforms

A. Union workers were guaranteed the right of ______.

IV. Social Security

A. In the 1930s, the United States was the only major industrial nation without a formal ______program.

B. 1935: Social Security Act

1. system of ______.

2. system of ______insurance.

3. support for people with ______and dependent children.

C. Critics of Social Security

1. liberals: it did not include ______, or ______, or ______

2. conservatives: the ______was taking away money from ______.

V. The New Deal Balance Sheet

Arguments against:Arguments for:

1.
2.
3.
4.
5.

Section Four: The Nation in Hard Times

I. The Dust Bowl

A. States from ______to the ______suffered a severe drought. The central Great Plains soil dried out and the winds carried the soil. This was known as the ______. What caused it?

B. Hardest hit were poor farmers called ______. They became ______or people who move in search of work.

II. Women Face the Depression

A. Homemakers had to ______the family budget.

B. Working women would not get jobs over ______.

C. The number of women in the work force increased by ______to help support their families.

D. Eleanor Roosevelt acted as the President’s ______and called for increased women’s rights.

III. African Americans

A. What was the black cabinet?

IV. The Arts of the Depression

A. The government sent photographers to create a record of ______.

B.Dorthea Lange’s photo showed ______.

C.Radio Programs such as “Ma Perkins” told the story of ______.