World History - Chapter 16, Lesson 2
Franklin D. Roosevelt
"FDR" was elected in 1932 as president and argued that the government had to take an active role in combating the Great Depression.
Dust Bowl
1934 - after years of drought winds picked up and carried away the topsoil exposed by erosion -storms destroyed crops, land, and equipment
Overproduction
A condition in which the production of good exceeds the demand for them. Workers lost jobs as factories cut back.
New Deal
A massive package of economic and social programs instituted by FDR. -laws regulated stock market and protected bank deposits -government programs created jobs and gave aid to farmers -new Social Security system provided pensions for the elderly and other benefits
Great Depression
A painful time of global economic collapse that began in the summer of 1929 with decreasing production.
How did the government of the United States react to the Great Depression?
At first, by providing only minimal assistance under Roosevelt's New Deal, jobs were created, farmers received aid, Social Security was introduced, and the stock market regulated.
France vs. Britain Recovery
Britain; -in debt, factories out of date -general strike France; -economy recovered rapidly -reparations and territories gained from Germany helped US - leading economic power
Britain and France - Solutions fr Great Depression
Britain; -set up coalition government made up of leaders from three of its major political parties -government provided some unemployment benefits - failed to improve economy France; -took longer to hurt France -decreased production and unemployment -leftist parties united behind Leon Blum - tried to solve labor problems and passed some social legislation
"The Red Scare"
Fear of radicals and the Bolshevik Revolution in Russia set of this in 1919 and 1920. Police rounded up suspected foreign born radicals and a # were expelled from the US. This event fed growing demands to limit immigration
Why did Britain and France disagree on how to enforce the Versailles treaty?
France wanted a strict enforcement to ensure a weak Germany, which wouldn't pose a threat; Britain wanted a loose enforcement to prevent a weak Germany and the threat of a strong France.
France vs. Britain
France; -strengthened military -alliances; including Soviet Union -insisted on enforcement of Versailles treaty and complete payment of reparations -GOAL: keep Germany weak Britain; -wanted to relax the treaty's harsh treatment of Germany -feared that if Germany was too weak, the Soviet Union and France would be too powerful
What political issues did each of the three democracies face after World War I?
Great Britain faced political division and the demands of the Irish for self-government. France was plagued by political divisions and financial scandals. the United States had to deal with the fear of radicalism and growing demands for limits on immigration.
What are three causes of the Great Depression?
Less demands for raw materials, overproduction of manufactured goods, and the crash of the stock market.
What aggravated the economic decline?
October stock market crash
Was the New Deal successful?
Partially; though it was not able to end the Great Depression, it did ease its effect on millions of Americans.
General Strike
Strike by workers in many different industries at the same time.
How did the beginning of the depression in the United States affect world markets?
The United States economy was part of an international network of trade and finance; as its economy faltered, the economies that relied on it faltered, too.
Federal Reserve
The central banking system of the United States, which regulates banks, raised interest rates in 1928, and again in 1929.
Finance
The management of money matters, including the circulation of money, loans, investments, and banking.
How did the Federal Reserve's policies affect the Great Depression?
The policies made people less likely to invest, which further hurt demand and eventually contributed to the closure of many banks and businesses.
Disarmament
The reduction of armed forces and weapons.
How did the war and its peace treaties affect the international economy?
The war hurt the economies of Britain, France, and Germany. The cycle of war dept and reparations caused Europe's economy to become dependent on that of the United States.
What was the flaw in the disarmament agreements?
They agreed to reduce the size of the navies, but not their armies.
Kellogg-Briand Pact
This was sponsored by the United States in 1928 and echoed the hopeful "spirit of Locarno." It was an agreement signed by almost every independent nation promising to "renounce war as an instrument of national policy."
Maginot Line
To prevent a third invasion, France built this massive fortification along its border with Germany. It failed to stoop the German invasion in 1940.
What problems did France and Britain share?
disagreements between parties
What caused unrest in the United States?
fear of radicals led to the Red Scare