Chapter 25: The Great Depression, 1929-1939

The First New Deal primarily focused on stimulating the economy in order to end the economic downturn. It did little to address the human suffering that resulted from the Great Depression.

false

Eleanor Roosevelt was an important advocate for President Roosevelt's New Deal, embarking on a national tour that was instrumental in winning support for his programs. Which of the following accomplishments of the early New Deal express the humanitarian goals she promoted?

the Federal Emergency Relief Agencies and other programs that together hired 300,000 women

Social Security has been one of the most enduring legacies of the New Deal, even though Roosevelt never intended for retired Americans to depend solely on Social Security from the federal government during their retirement.

TRUE

After the stock market crash of 1929, the Federal Reserve reduced the nation's money supply in an attempt to prevent inflation in consumer prices and restore confidence in the economy. This policy shrunk the nation's money supply by one-third between 1929 and 1932. What impact did this action have on the economy?

The Federal Reserve withdrew money from the economy, slowing economic growth rather than stimulating it.

How did Native Americans' attitudes regarding the New Deal change over time?

Native Americans were optimistic at first, but quickly became disappointed in the New Deal, as it failed to improve their lives in significant ways.

Identify Roosevelt's strategy for providing federal work relief to jobless Americans, and evaluate its success.

-As unprecedented as the work relief projects were, Roosevelt viewed these programs as temporary and was reluctant to sustain them. -His strategy was initially limited to the state level; however, he implemented a federal work relief program soon after.

Which of the following statements reveals the impact of the Great Depression on families?

-Birth rates decreased. -Divorce rates declined as couples could not afford to live separately or pay the legal fees to separate.

What was Treasury Secretary Andrew Mellon's initial approach to handling the economic crisis of the 1930s?

-He sought to let the economy work itself out. -He denied that any crisis existed.

What was President Hoover's early approach to the Great Depression, and how did his strategy affect the economy's recovery?

-Hoover sought to convince business, labor, and other industry leaders to play their part in getting the economy back on track. -Hoover took an active role in attempting to end the Great Depression. -Hoover's efforts were unsuccessful.

How did Steinbeck's The Grapes of Wrath speak to the experiences of many Americans during the Great Depression?

-It depicted the plight of those who had to leave their homes to travel to the Far West in search of work when farming became impossible in the Dust Bowl. -It illustrated the general shame felt by all classes of Americans in need of relief funds. -It depicted the disgrace a poor woman felt after she accepted relief from a charitable institution.

In what ways did the Tennessee Valley Authority (TVA) impact the Appalachian region?

-It encouraged conservation efforts throughout the region. -It directed electricity into the region. -It produced the Great Lakes of the South through the construction of dams.

Identify the impacts of the Dust Bowl that took place in the 1930s.

-It was the result of a severe drought, which led an extraordinary amount of topsoil to engulf farms and towns. -It had a severe impact on the agricultural industry in the Midwest and the Mississippi Valley, as crops died and farmers could no longer afford their property.

Identify the beneficiaries of the Social Security Act.

-retired Americans -Americans who were unemployed -Americans who were unable to work

Though women had a -1- rate of joblessness during the Great Depression, they were also tasked with providing -2-to their families if their husbands were -3-. Due to their disproportionately low-paying jobs, women were often able to -4- while men with higher wages lost their jobs. As the economy worsened, however, some people claimed that women were "stealing" jobs from men. States consequently began passing laws -5- married women from the workforce.

1-Lower 2-Emotional support 3-Laid off 4-Continue working 5-Barring

The black community was one of the most -1- groups during the Great Depression, as many African Americans were already poor, barely scratching out a living in the South on small farms. Those who had migrated north to work in -2-were often the first to lose their jobs. Blacks, Mexicans, and Asians were often -3- government or private charitable assistance. Facing increased competition from white and Mexican Americans, many -4- migrant farm workers in the West migrated to cities. As the economy spiraled downward, Mexicans Americans were subject to calls for -5- to Mexico regardless of their residency status. As many as 500,000 Mexican Americans were eventually deported to Mexico.

1-Seriously affected 2-Factories 3-Refused 4-Asian 5-Deportation

Roosevelt ensured that his Second New Deal programs would stand by filling the Supreme Court with justices who supported him.

False

What did Hoover believe to be the potential solution to the social crisis that emerged from the Great Depression?

He believed that volunteer efforts by generous Americans and charitable groups would provide adequate relief.

Identify the following economic acts or strategies that occurred during the economic crisis of the 1930s.

Q- Hoover's response to calls for federal aid for struggling Americans to finance construction projects at the state level A- Emergency Relief Act Q- a major tax increase that was poorly timed and further contributed to the economic crisis A- Revenue Act of 1932 Q- an attempt by Congress, supported by Hoover, to aid banks and other struggling entities by providing them with emergency loans A- Reconstruction Finance Corporation

The Supreme Court was hostile to many New Deal elements during Roosevelt's first term, ruling that elements such as the NRA were unconstitutional in seven out of nine cases that it reviewed. What was the main theme of the Court's decisions?

The Court ruled that the New Deal gave too much power to the federal government.

The Civilian Conservation Corps (CCC) was one of the most successful jobs programs of the early New Deal.

true

How did Roosevelt's vision in the 1932 presidential election differ from that of Hoover, the incumbent president?

-Roosevelt was a strong believer in experimenting with new and bold strategies to revive the economy. -Unlike Hoover, Roosevelt believed in using federal funds to thwart poverty.

What were some of the shortcomings of the New Deal for African Americans?

-The FHA did not provide mortgages for African Americans who wanted to live in white neighborhoods. -Both the CCC and the TVA practiced segregation. -Racism by New Deal administrators limited the opportunities available to African Americans.

Identify the reasons why Roosevelt's critics were opposed to the National Recovery Administration (NRA).

-The NRA supported big corporations over small businesses. -The NRA did not protect agricultural and domestic workers.

Identify the reasons why Roosevelt's critics opposed the New Deal.

-The New Deal increased taxes and was too socialist. -The United States still suffered from the Great Depression, and Roosevelt's programs didn't do enough to improve the economy.

What criticism of the New Deal did supporters of the Townsend Plan and the Share-the-Wealth Society have in common?

Correct choiceBoth programs called for far greater income redistribution from the wealthy to the poor than New Deal programs.

Complete the passage below describing why Father Charles E. Coughlin, the popular "radio priest" and founder of the National Union for Social Justice, attacked the New Deal and Roosevelt. Father Charles E. Coughlin believed that Roosevelt's New Deal was too __1__. In his speeches he accused Roosevelt of being used by __2__. He __3__ Hitler's anti-Semitic policies and __4__ the idea of similar policies in the United States.

1 communist 2 the jews 3 applauded 4 supported

Hoover's response to the Bonus Expeditionary Force protest revealed his concern for the plight of unemployed and desperate Americans. Hoover supported the demands of the veterans for increased benefits, but could not persuade Congress to spend the extra money.

FALSE

The success of the Democratic party in the 1930 midterm election forced Hoover to alter his strategy on the economy in order to gain public support.

False

Though the economy was soaring by 1927 as a result of consumer spending, investments into the stock market were beginning to slow.

False

The Mississippi governor Theodore Bilbo stated in 1931, "Communism is gaining a foothold ... . In fact, I'm feeling a little pink myself." Analyze this quotation, and evaluate its significance for American society during the Great Depression.

The governor was worried that sympathy for communism would gain support among economically devastated Americans in the early years of the Great Depression.

How did the role of the federal government change under Roosevelt?

-The government became responsible for ensuring a minimum quality of life for Americans. -The government became responsible for regulating the economy and ensuring stability.

What was the objective of the Smoot-Hawley Tariff, and how did this bill contribute to the Great Depression?

-The tariff prompted numerous countries to steer their exports away from the United States and imposed obstacles to selling American goods abroad. -It sought to aid the struggling agriculture sector and other industries by eliminating foreign competition.

The causes of the Great Depression continue to be debated by economists, though many argue that it was a combination of various factors that led to the economic collapse. What were some of these contributing factors?

-There were more goods in circulation than Americans could afford to buy. -High tariffs were imposed by the U.S. government to protect domestic companies.

During the early period of the Great Depression, millions of Americans suffered through which of the following experiences?

-Unemployment -Homelessness -Hunger

Identify the components of Roosevelt's three-pronged strategy that he sought to implement in his First Hundred Days

-subsidize the farm sector to boost low prices -promote compromises between management and labor -provide temporary aid for the unemployed

Complete the passage below describing the first decisions that Roosevelt made to address the collapse of thousands of the nation's banks. One of Roosevelt's advisers claimed that in his first eight days as president, Roosevelt "saved __1__ ." Most of this can be attributed to Roosevelt's push for the Emergency __2__ Relief Act, which led to a four-day __3__ of all banks in order to defuse the panic surrounding the financial sector. Roosevelt reinforced his strategy through __4__ chats, during which he assured Americans that they could safely deposit their money in banks once again. These reassurances proved successful as people __5__ their money to the banks once they reopened.

1 capitalism 2 banking 3 closure 4 fireside 5 returned

How did the New Deal evolve? How did it transform the role of the federal government in American life? Complete the passage below describing how Roosevelt's Second New Deal influenced the Democratic party. Roosevelt enjoyed a sizeable victory in the election of 1936, and the Democrats controlled Congress. Many of Roosevelt's policies __1__ the __2__ party. The president's __3__ drew __4__ from Congress. __5__ did not like the increasing number of __6__ and unionists who supported Roosevelt.

1 caused a rift in 2 democratic 3 court-packing plan 4 harsh criticism 5 southern democrats 6 African Americans

How did the Hoover administration respond to the Great Depression? Complete the passage below describing the social crisis that emerged during the Great Depression of the 1930s. A toddler begs for change in one of the Bonus Army camps. The signs set up read "Hoover's poor farm tobacco fund," and "Hard times are still 'Hoover'ing over us."The lack of funding at the state level and the federal government's __1__ to deal adequately with homelessness and joblessness led to the spread of __2__ throughout the country. These communities were commonly called __3__ as a critique of Hoover's handling of the economy. Hoover __4__ the calls for government intervention to curb poverty and unemployment, fearing that they would lead the nation down a __5__ path.

1 failure 2 shantytowns 3 hoovervilles 4 refused 5 socialist

Complete the passage below describing how Congress improved working conditions during the Second New Deal. Congress created a __1__ and limited the workweek to __2__. The __3__ made __4__ the minimum age for employment. Congress's new laws applied to businesses __5__.

1 minimum wage 2 forty hours 3 fair labor standards 4 sixteen 5 engaged in interstate

Complete the passage below describing an act of Congress. The __1__ Exchange Act of 1933 created greater transparency in the __2__ of stocks and bonds by demanding that all corporations selling their stock __3__ divulge pertinent information about their __4__ to better inform buyers.

1 securities 2 sale 3 publicly 4 company

In addition to creating the Federal Deposit Insurance Corporation, the -1- Act of 1933 also included a crucial section called the -2- Act, which blocked -3- banks from investing their consumers' savings in the stock market by -4- commercial banking and investment banking into two distinct categories. Those banks categorized as investment were the -5- banks allowed to participate in the stock market.

1-Banking 2-Glass-Steagall 3-Commercial 4-Separating 5-Only

As European countries began to recover from the -1-brought about by the First World War, they -2- their purchases of U.S. goods. Additionally, debts owed by European countries to America prompted -3- banks to lend such nations huge amounts of money, which only contributed to their overall -4-. When the banks could no longer support European countries, and government policies made it more difficult to -5-European goods in America, both the European and American economies spiraled into a depression.

1-Financial Ruin 2-Reduced 3-U.S. 4-Debt 5-Sell

While the U.S. stock market had -1- steadily since 1924, -2- that began in 1927 contributed to a surge in the stock value of American companies. A specific investment practice that allowed stocks to be purchased -3- with a modest down payment enabled investors to borrow the rest of the money from a -4-. When stock values began to plummet, -5- called in these "margin" loans, but investors, who had expected -6- to cover these loans, weren't able to repay what they had borrowed.

1-Grown 2-Reckless speculation 3-"On margin" 4-Stockbroker 5-Stockbrokers 6-Stock profits

Most of the migrants to the Far West were -1- and their families, who had lost or abandoned their -2-either when banks foreclosed or when the soil was no longer fertile. Many devastated farmers moved their families -3- toward California, where they had heard there were jobs. They lived in tents or -4- along the way, exposed to -5- and without basic -6-. They endured -7- and were looked down on as -8- or Arkies when they arrived from cotton areas in the South or the Great Plains.

1-White Farmers 2-Farms 3-Across the country 4-Cars 5-Weather 6-Sanitation 7-Poverty 8-Oakies

Identify how the following programs in Roosevelt's Second New Deal changed the role of the federal government.

Q- allowed the government to employ millions of Americans to work on public works projects A- Works Progress Administration Q- created several social-welfare programs to protect Americans who were not working A- Social Security Act Q- created an organization to oversee unions A- Wagner Act Q-reformed the Supreme Court, and gave the Court more authority to ensure the civil liberties of all Americans

Identify the First New Deal policies.

Q- paid farmers to limit their livestock and crop production in order to increase crop prices A- Agricultural Adjustment Act Q-provided jobs for Americans such as repairing roads, laying sewer lines, constructing airports or schools, and teaching in small rural public schools A- Civilian Conservation Corps Q-lessened the potential of future panics by guaranteeing that savings accounts up to a certain amount would be reimbursed with government funds in the event of bank failure A- Federal Deposit Insurance Corporation Q-a federal regulatory agency established to monitor the purchase and sale of stocks and bonds under the new enforcement laws A- Securities and Exchange Commission Q-sought to promote economic growth by allowing large corporations to establish prices among themselves for certain products A- National Recovery Administration

Identify how Roosevelt's Second New Deal programs differed from the programs in his First New Deal.

Roosevelt's Second New Deal programs focused on social justice, whereas the First New Deal programs were designed to save the economy.

Identify the effect that Roosevelt's Second New Deal programs had on unions.

Unions gained membership and became more widely recognized by employers.

When the Bonus Expeditionary Force marched on Washington to demand that Congress assist economically strapped World War I veterans, how did President Hoover respond?

When Congress did not act on the veterans' demands, Hoover's primary concern was to remove the homeless veterans who remained camped out near the Capitol building. He made no effort to address their demands for a bonus on their pensions.