Crash and Burn
What role did easy credit play in creating an economic bubble before the Great Depression?
It allowed people to buy more than they could afford, fueling spending and investment that wasn’t sustainable.
What were shantytowns, and what did they represent?
Makeshift communities built by the homeless; they reflected widespread poverty and government inaction.
Who was Eleanor Roosevelt and what made her role unique?
FDR’s wife; she was an activist for civil rights and women’s rights, redefining the First Lady’s role.
What was FDR’s series of radio broadcasts to reassure Americans called?
Fireside Chats.
What was the role of the SEC (Securities and Exchange Commission) and how did it restore trust?
It regulated the stock market to prevent fraud and rebuild investor confidence.
What happened on Black Tuesday, and why was it a turning point?
On October 29, 1929, stock prices collapsed, wiping out billions in wealth and triggering the start of the Great Depression.
Why were soup kitchens and breadlines necessary during the Depression?
They provided food to the poor and unemployed, often run by charities or local governments.
What were the three main goals of the New Deal?
Relief for the needy, recovery of the economy, and reform to prevent future depressions.
What was the purpose of the WPA (Works Progress Administration)?
To employ millions in public works and cultural projects; it was the largest New Deal program.
How did the AAA (Agricultural Adjustment Act) try to help farmers?
It paid farmers to reduce crop production to raise prices.
What happened when banks failed during the early 1930s, and how did it affect people’s savings?
People lost their savings because banks didn’t have enough money to give back to depositors.
What was the Dust Bowl and how did it affect farmers?
A severe drought and poor farming practices caused dust storms that ruined farms and forced many to migrate west.
Why did some critics claim the New Deal was too radical, while others said it didn’t go far enough?
Conservatives feared government overreach and socialism; liberals wanted more help for the poor and unemployed.
What agency was created to insure bank deposits and restore public trust in banks?
FDIC (Federal Deposit Insurance Corporation).
What did the CCC (Civilian Conservation Corps) do?
Provided jobs for young men in conservation and infrastructure projects.
How did the Hawley-Smoot Tariff Act worsen the global economic crisis?
It raised U.S. tariffs on imports, leading other countries to retaliate with their own tariffs, reducing international trade.
What was the Bonus Army, and why did their protest damage Hoover’s reputation?
WWI veterans demanding early bonus payments were forcibly removed by the military, which hurt Hoover’s image.
Why was the Social Security Act considered a landmark reform?
It created pensions, unemployment insurance, and aid for the elderly and disabled—establishing the foundation of the welfare state.
What was the Wagner Act and why was it important for workers?
It protected workers’ right to unionize and bargain collectively, strengthening labor movements.
What did the Tennessee Valley Authority (TVA) do for rural communities?
Brought electricity, flood control, and jobs to poor Southern regions. Many jobs for people to build dams
How did speculation and buying on margin make the stock market crash worse?
Investors borrowed money to buy stocks, assuming prices would rise. When prices dropped, they couldn't repay loans, causing a financial panic.
How did Herbert Hoover’s response to the Depression impact his popularity?
His belief in limited government intervention was seen as ineffective, leading to public frustration and loss of support.
How did FDR use deficit spending to try and fix the economy?
He borrowed money to fund programs and jobs, increasing national debt but stimulating economic growth.
How did the New Deal reshape Americans’ expectations of government?
It established the idea that the federal government should play an active role in economic and social welfare.
What message did The Grapes of Wrath send to Depression-era Americans?
It highlighted the struggles of Dust Bowl migrants and criticized the failures of government and business.