Unit 12 - The Great Depression and The New Deal Packet
Unit 12 - The Great Depression and The New Deal Packet
Unit 12 Quizlet
12.1- Causes of the Great Depression
12.1 Document Writing Practice
12.2- The Dust Bowl and Migration West
12.2 Document Writing Practice
12.3- Social and Political Impact of Unemployment
12.3 Document Writing Practice
12.4- The New Deal Programs
12.4 Document Writing Practice
12.5- The Second New Deal Programs
12.5 Document Writing Practice
12.6- Political Challenges to Roosevelt’s Leadership
12.6 Document Writing Practice
12.7- Role of Eleanor Roosevelt
12.7 Document Writing Practice
1 2.1- Causes of the Great Depression
LT- I can describe the causes, including overproduction, under consumption, and stock market speculation that led to the
stock market crash of 1929 and the Great Depression.
Leading into the Great Depression 1. What profited for the US by selling to Europe?
While many European nations suffered a post-WWI recession, the
American businesses, farms, and banks
US did not. American businesses, farms, and banks profited
greatly during WWI by selling products to European markets.
2. What was over for the US as the Great Depression
However, by 1929, the economic boom for the US was over and
began?
the Great Depression began. There are numerous causes that
the economic boom for the US
together led to the severity (harshness) of the Great Depression.
The Causes of the Great Depression were:
1. Industrial Overproduction 3. Why did industries increase their productive
capacity?
In the 1920s, most goods were being
produced at such fast rates, that people could
to produce and sell more goods.
not buy enough of them. Industries increased
their productive capacity (size) to produce and sell more goods.
4. How did European countries’ financial difficulties
As a result, a supply surplus (excess) was created. This problem
affect America?
became exacerbated (intensified) by Europe's struggling post-war
European countries could not buy as much American
market. The European countries could not buy as much American
made product
made product due to their own financial difficulties.
2. Consumer Overspending 5. What further encouraged spending for Americans?
With cash to spend after the war, Americans went on a spending the national consumer market and consumer credit
spree. The development of the national consumer market in the
US and the advent (start) of consumer credit (credit card) further 6. What happened after the Stock Market collapse?
encouraged spending. After the Stock Market collapse in October
1929, consumers quit spending except for absolute necessities consumers quit spending except for necessities
creating a surplus (extra) of goods in the market place. This
caused under-consumption, which deepened the economic 7. What did under-consumption lead to?
slowdown. There became too much inventory (goods), without
enough buyers. deepened the economic slowdown.
3. "Get Rich Quick" Attitudes 8. What did speculators begin to do?
In the 1920s, the stock market
buy and sell stocks quickly to profit from the rising
made people millions of dollars,
market
quickly! Investors sought to
maximize their wealth through
9. What is buying on margin?
speculation in real estate and the
stock market. To obtain (get) capital (money) for expansion,
allowed to borrow money to purchase stocks with as
companies began to offer more shares of stock for sale. Seeing
little as 10% down
growing demand for stock translate into growing value of stock
shares, speculators (people studying the stock market) began to
10. What happened when stock market prices fell?
buy and sell stocks quickly to profit from the rising market. Buyers
were allowed to borrow money to purchase stocks with as little
stock buyers were in debt to their stockbrokers with no
as 10% down (buying on margin). The gamble for buyers paid off
way to pay off what they owed
as long as stock prices continued to rise. When the prices fell,
these stock buyers were in debt to their stockbrokers with no way
11. What happened on Black Tuesday?
to pay off what they owed. Eventually, the speculators began to
sell off stock to make profits and touched off a run on selling. The
the Stock Market Crash
large numbers of stocks sold at the same time led to the Stock
Market Crash of October 1929, also known as Black Tuesday.
People rushed to sell their stocks at lower prices, and investors
lost $30 billion. Many people lost their life savings.
4. Disparity in Wealth 12. Why did farmers lose money throughout the 1920s?
While many Americans prospered (flourished) during the 1920s,
European markets stopped buying American farm
some economic sectors did not. Farmers lost income throughout
goods.
the 1920s because European markets stopped buying American
farm goods. Coal mining suffered as oil began to replace coal as a
13. How did unequal distribution of wealth develop?
fuel. In general, workers' wages (money) failed to keep pace with
prices during the period. As a result, an unequal distribution of
wealth developed. The richest 1% of the American population
owned approximately 40% of the country's wealth.
5. Banking Panic 14. What happened as unemployment increased?
As unemployment increased, depositors
began to withdraw more and more of
their savings from their bank. After the
stock market crashed, people rushed to
15. What happened as banks began to fail?
the banks to withdraw their money.
Lacking sufficient reserves, banks were forced to call in loans,
which in turn touched off a wave of bankruptcies. Unable to
collect outstanding loans, banks began to fail. In all, 9,000 banks
16. What did bank failures led to?
failed during the 1930s. Many people lost their life savings. The
bank failures led to a demand for more cash in the economy,
which contradicted (went against) the Federal Reserve policy of
the era. The shortage of cash in circulation worsened the effects
of the economic downturn.
Factors of the Great Depression 17. List 3 things that happened to Americans after the
Stock Market crash.
With all of these factors in play simultaneously (together), the
a.
Great Depression began and continued to get worse. Many
Americans lost their jobs after the stock market crashed, or were
b.
forced to take pay cuts to keep their jobs. People stopped
spending money because they either did not have it or were
c.
unsure about the future of the US economy. A capitalist system
naturally has dips in the economic cycle. However, the events of
18. List 3 things that made the crisis more severe than a
the 1920s (overproduction, under-consumption, and the Stock
normal downturn.
Market Crash) made the crisis far more severe than a normally
a.
occurring downturn. The unemployment rate reached 25%- one
b.
in four people were unable to find a job.
c.
12.1 Document Writing Practice
Vocabulary Words
Great Depression
Under consumption
Speculation
Buying on margin
Black Tuesday
Instructions:
- Answer the question below using the document and the vocabulary list above.
- Your answer should be 5-7 sentences and you need to use at least 3 vocabulary words.
- If you need to review the vocabulary click Unit 12 Quizlet
What were the causes that led to the stock market crash of 1929
and the Great Depression?
1 2.2- The Dust Bowl and Migration West
LT- I can explain factors (including over-farming and climate) that led to the Dust Bowl & the resulting movement and migration west.
Start of the Dust Bowl 1. Where was the Dust Bowl located?
The Dust Bowl is a symbol of
overproduction and was a
contributing factor to the economic
decline of the 1930s. The Dust Bowl originated in the southern
2. List 2 reasons why farmers first arrived in the region.
plains of the United States. Farmers first arrived in the region
a.
at the end of the 19th Century (late 1800s). The Homestead Act
b.
(encouraged westward migration by providing settlers 160
acres of land if they promised to stay for 5 years) and the
region’s rich soil drew them west at that time. Farmers in the
3. What did the farmers not know about the region?
region talked of the rich, fertile soil and were soon producing
high yield (producing) crops of wheat, corn, cotton, and
livestock. However, unknown to the farmers, the Great Plains
region experiences regular wet and dry weather cycles.
Dry Climate and Over-Farming 4. Why did farmers plant thousands of acres of land in
crops?
The southern Plains were in
a wet period when farmers
first arrived. Spurred on by
the soil's fertility and strong 5. How was the drought the worst in US history?
demand for grain during
WWI, farmers planted
thousands of acres of land in
crops. Beginning in 1931, the region entered into a dry cycle
(drought-no rain). The drought was the worst in US history, 6. What did over-farming do to the land?
covering more than 75% of the country and severely affecting
27 states.
Instructions:
- Answer the question below using the document and the vocabulary list above.
- Your answer should be 5-7 sentences and you need to use at least 3 vocabulary words.
- If you need to review the vocabulary click Unit 12 Quizlet
What were the factors that led to the Dust Bowl and migration
west?
1 2.3- Social and Political Impact of Unemployment
LT- I can explain the social & political impact of widespread unemployment that resulted in developments such as Hoovervilles.
Effects of the Great Depression 1. What was the unemployment rate in 1933?
By 1933, 25% of the labor force
was unemployed in the United
States and millions more could
only find part time jobs. In 1932, Fortune Magazine reported that
2. How were women affected in the employment field?
34 million people belonged to families with no regular, full-time
wage (money) earner. There were 2 million homeless people
migrating (traveling) around the country. Women and minorities
(immigrants and African Americans) were especially hard hit.
Women, many of whom were single parents, were often fired
3. How were black people affected in the employment
because many businesses felt jobs should go to men first. Black
field?
people were often the first laid-off only to be replaced by White
workers. Children were often malnourished (under-fed).
Hoovervilles 4. What happened to men when they were unable to
find work?
While there were some public assistance
programs and private charities, they were
quickly overwhelmed by the sheer (large)
numbers of those who needed assistance. Men abandoned their
5. What are Hoovervilles?
families to search for work and, when they were unable to find a
job, did not return home out of shame or committed suicide.
Some teenagers were asked to leave home and find a job to
support themselves when their families were increasingly unable
6. Why were they called Hoovervilles?
to do so. Homeless families, lacking shelter, used cardboard and
packing crates to create encampments called Hoovervilles. These
shantytowns (slums) was meant to cast criticism on President
Hoover and his handling of the economic crisis.
Too Little, Too Late 7. What type of work relief programs did Hoover create?
While in office, President Herbert Hoover
attempted to diminish (reduce) the impact of
the Great Depression by creating work relief
programs that included the construction of
8. What were relief checks?
the Golden Gate Bridge and the Boulder (later Hoover) Dam. The
government started to give out direct “relief” checks
(unemployment checks) to help people. The Reconstruction
Finance Corps (RFC) loaned money to failing businesses. He
attempted to slow home foreclosures by asking the Federal
9. Why did Hoover’s programs appear to be too little,
government to guarantee home loans. However, his programs
too late?
appeared to the public as too little, too late. He had been
reluctant (hesitant) to involve the government early in the
economic crisis. It was not until the situation was severe that he
began to act & at that point his efforts had minimal (little) impact.
The End of Presidency for Hoover 10. How did Franklin D. Roosevelt win the 1932 election?
In 1932, Hoover ran for re-election. The
Democratic candidate for President was Franklin
D. Roosevelt, who publicly blamed Hoover for
11. What did the people want in the new president?
the Great Depression. Hoover lost the election
by a very wide margin, obtaining only 39.7% of the popular vote
compared to Roosevelt's 57.4%. The people wanted a more active
government to solve the problems happening in America.
12.3 Document Writing Practice
Vocabulary Words
Hoovervilles
Herbert Hoover
Direct Relief
Reconstruction Finance Corporation
Franklin D. Roosevelt
Instructions:
- Answer the question below using the document and the vocabulary list above.
- Your answer should be 5-7 sentences and you need to use at least 3 vocabulary words.
- If you need to review the vocabulary click Unit 12 Quizlet
New Deal- Relief 8. What did Federal Emergency Relief Administration do?
As part of the New Deal, a relief
effort known as the Federal
Emergency Relief Administration
(FERA) that granted federal money
to state and local governments for 9. Why were a number of agencies created during the
operating soup kitchens and meeting first few months of FDR’s administration?
the basic needs of the homeless. There were also a number of
agencies created during the first few months of Roosevelt's
administration that were intended to put people to work on
government funded projects. 10. What did the Public Works Administration do?
Examples of the First New Deal's work agencies
include the Public Works Administration (PWA)
that provided money to states for the construction
of roads, bridges, and dams. The Civilian 11. What did the Civilian Conservation Corps do?
Conservation Corps (CCC) hired young men
between the ages of 18 and 25 to work on land projects such as
building roads, planting trees and building bridges. Another large
program funded by the Federal government was the Tennessee
Valley Authority (TVA), which hired thousands of workers in the 12. What did the Tennessee Valley Authority do?
very rural Tennessee Valley to build dams, power plants, and work
to control flooding and erosion. The TVA created dams in 7 states
to bring cheap hydroelectric (water) power and create jobs.
New Deal- Recovery 13. What did Federal Deposit Insurance Corporation do?
Other significant features of the New Deal
were intended to help the financial systems
recover from the Great Depression. The
Federal Deposit Insurance Corporation (FDIC)
was created to shore up public confidence in 14. What did the Agricultural Adjustment Act do?
the banking system. The FDIC provided insurance on individual
bank accounts with deposits up to $5000. The FDIC is still around
today to protect people’s money- up to
$250,000 as of 2006. Farmers were
granted subsidies through the Agricultural 15. What did the government hope for with the AAA?
Adjustment Act (AAA), which would help
recover crop prices by cutting production.
The government hoped that by lowering
the supply of crops in the market, prices would increase & farmers
would make more money. This actually worked, as farm
foreclosures decreased.
New Deal- Reform 16. What did the Securities and Exchange Commission
The New Deal Programs created long-term reforms (changes) to do?
address weaknesses in the American economy. One major area of
reform dealt with the Stock Market. The Securities and Exchange
Commission (SEC) was created to regulate (control) the Stock 17. How was the SEC going to prevent another crash?
Market. The intent was to prevent another stock market crash by
limiting the types of stock speculation that could be transacted.
Effects of the New Deal Programs 18. Why was the New Deal approach a departure from
All of these programs and organizations created significant before?
government involvement in the economic system of the US. This
was quite a departure from the long history of the nation, which
had typically followed a laissez-faire (hands-off) approach (other 19. How was the New Deal effective in the short term?
than the trust busting of the Progressives). In evaluating the
programs of the New Deal, one has to consider both the
immediate and long-term effects. In the short term, programs
such as the CCC, PWA, and TVA put thousands of unemployed 20. Why were the long term effects not fully realized?
Americans back to work. However, much of the work available
was hard, physical labor that benefitted young men and did not
help some groups such as women or the elderly. The emergency
banking measures and the creation of the FDIC helped to restore 21. How was WWII going to pull America out of the Great
public confidence in America's financial institutions. The long term Depression?
implications of these programs was not fully realized since
America's involvement in WWII lifted the nation out of the
economic crisis with the unprecedented production demands that
benefitted businesses and ended unemployment.
12.4 Document Writing Practice
Vocabulary Words
New Deal
Bank Holiday
Fireside Chats
Civilian Conservation Corps (CCC)
Tennessee Valley Authority (TVA)
Federal Deposit Insurance Corporation (FDIC)
Agricultural Adjustment Act (AAA)
Security and Exchange Commission (SEC)
Instructions:
- Answer the question below using the document and the vocabulary list above.
- Your answer should be 5-7 sentences and you need to use at least 3 vocabulary words.
- If you need to review the vocabulary click Unit 12 Quizlet
Instructions:
- Answer the question below using the document and the vocabulary list above.
- Your answer should be 5-7 sentences and you need to use at least 3 vocabulary words.
- If you need to review the vocabulary click Unit 12 Quizlet
Explain the passage of the Social Security Act as a part of the second New
Deal.
1 2.6- Political Challenges to Roosevelt’s Leadership
LT- I can analyze political challenges to Roosevelt’s leadership and New Deal Programs.
Effects of the New Deal 1. What did FDR begin as he rejected conservative
policies?
FDR gave Americans hope again, after President Hoover failed to
end the Great Depression. FDR rejected conservative policies and
began a new era of unprecedented (never seen before)
government activism to solve America’s problems. FDR used
2. List 2 ways that FDR made Americans feel confident.
government programs and fireside chats to make Americans feel
a.
confident in the government again. The New Deal was the first
b.
attempt by the US government to take responsibility for the
economy and welfare of the American people. FDR introduced
deficit spending (going into debt) for the first time in US history.
3. Which groups now made up the Democratic Party?
With so many people having so much
faith in FDR, the democratic party
gained more members. Now, unions,
African Americans, immigrants, and poor
voters made up the Democratic Party.
4. List the type of people each group helped.
The New Deal helped relieve a. AAA-
unemployment and provided long-term b. Wagner Act-
economic reforms (changes). However, c. CCC & WPA-
it did fail to end the Great Depression. d. SEC-
The New Deal Program relieved farmers (AAA), unions (Wagner e. FDIC-
Act), and people who were unemployed (CCC, WPA). The stock
market (SEC) and the banks (FDIC) were stabilized (calmed) and
trusted again. The only problem was that the economy was still 5. List the 2 reasons why the economy was still horrible.
horrible- unemployment was still very high and there was a large a.
gap between the rich and the poor. When FDR began his
presidency in 1933, 12 million people were unemployed. By 1939, b.
with FDR still in office, 10 million people were still unemployed.
Critics of FDR 6. What did conservatives think about the New Deal?
During his 12 year presidency, FDR faced
many challenges to his leadership and had
many critics. Opponents of the New Deal
came from all parts of the political 7. What did some liberals think about the New Deal?
spectrum. Some conservatives thought he
had made the government too large and
too powerful. These conservatives also felt
some aspects of the New Deal did not
respect the rights of individuals & 8. What did Senator Long believe about the New Deal?
property. However, some liberals thought Roosevelt had not gone
far enough to socialize the economy & eliminate inequality in the
US.
Perhaps Roosevelt's biggest critic was Senator Huey P. Long of
Louisiana. Long was planning to challenge Roosevelt for the 9. What was the “Share Our Wealth” Program?
presidency in 1936 until he was shot and killed by an assassin the
year before the election. Senator Long was one of those critics
who believed the New Deal had not gone far enough in its efforts
to help society. Instead of the New Deal, Long proposed what he 10. What was Long’s ultimate plan?
called the "Share Our Wealth" program. The plan would
guarantee a household income for each family in the US, which
would be paid for by high taxes on the wealthiest Americans.
Long in effect was planning to take from the rich to give to the
poor.
2 Unconstitutional Programs 11. What was the National Industrial Recovery Act?
Franklin Roosevelt was criticized for wanting to "pack the court 17. What did FDR’s opponents believe about him
(court-packing)." His opponents believed he was attacking the “packing the court”?
independence of the judiciary and subverting (challenging) the
Constitution. Many of Roosevelt's longtime supporters deserted
him on this controversial proposal. The opposition Roosevelt
received to this proposal began to sour the nation on the New
Deal.
12.6 Document Writing Practice
Vocabulary Words
Huey Long
National Industrial Recovery Act
Agricultural Adjustment Act (AAA)
Court Packing
Instructions:
- Answer the question below using the document and the vocabulary list above.
- Your answer should be 5-7 sentences and you need to use at least 3 vocabulary words.
- If you need to review the vocabulary click Unit 12 Quizlet
Instructions:
- Answer the question below using the document and the vocabulary list above.
- Your answer should be 5-7 sentences and you need to use at least 3 vocabulary words.
- If you need to review the vocabulary click Unit 12 Quizlet
How did Eleanor Roosevelt change the role of the First Lady?