Chapter 25 The Great Depression Summary In October 1929, the stock market's overinflated values collapsed, and the

Great Depression began. Its causes were complex, and its consequences were enormous. In a few short years, the 2 percent unemployment rate of the 1920s had become the 25 percent rate of 1932. The nation's political institutions were not equipped to respond. The task overwhelmed local and private relief efforts. President Herbert Hoovers tentative program of voluntary cooperation, big-business loans, and limited public works was activist by old standards but inadequate to the challenge. American tariffs and war-debt policy aggravated international economic problems and thereby added to domestic woes. Although the suffering of Americans, especially blacks and Hispanics, was great, most citizens clung to traditional values and resisted radical solutions. With veterans marching, farmers protesting, and millions not working, Franklin Delano Roosevelt won the presidency. Objectives A thorough study of Chapter Twenty-Five should enable the student to understand: 1. 2. 3. 4. 5. 6. 7. 8. 9. The relationship between the stock market crash and the subsequent Great Depression. The reasons that the Great Depression started and lasted so long. The effects of the Depression on business and industry. The problems of unemployment and the inadequacy of relief. The particular problems of farmers in the Dust Bowl. The impact of the Depression on minorities. The impact of the Depression on working women and the American family. The reflection of the economic crisis in American culture. President Herbert Hoover's policies for fighting the Depression.

Key Terms Black Tuesday Reparations Breadlines Global Depression Dust Bowl Okies Shantytowns Scottsboro Case National Association for the Advancement of Colored People (NAACP) Japanese American Citizen League Dale Carnegie Soap operas Orson Wells Marx Brothers Frank Capra Walt Disney Life Magazine The Popular Front American Communist Party Spanish civil War Southern Tenant Farmers Unions John Steinbeck Herbert Hoovers presidency Agricultural Marketing Act of 1929 Reconstruction Finance Corporation (RFC) Farmers Holiday Association The Bonus March Election of 1932 Franklin Delano Roosevelt

Homework Question 1. Explain how President Hoovers response to the Great Depression changed during the course of his presidency and the reasons for this transformation.

Chapter 26 The New Deal

Summary Franklin D. Roosevelt was bound by traditional economic ideas, but unlike Herbert Hoover, Roosevelt was willing to experiment and was able to show compassion. During the first two years of his New Deal, the groundwork was laid for a new relationship between government and the economy. Roosevelt sought temporary relief for the desperate unemployment, plus long-term recovery and reform for industry and finance. Not everything worked, and the Depression was not stopped, but Roosevelt got the country moving again. In 1935, frustrated and facing pressures from all sides, Roosevelt launched a new set of programs, which sometimes is called the Second New Deal. The new programs were less conciliatory to big business and more favorable to the needs of workers and consumers than were those of the New Deal of 1933. Roosevelt was swept to reelection in 1936 by a new coalition of workers, blacks, and liberals. Soon, however, Roosevelt's political blunders in the Supreme Court fight and congressional purge effort combined with growing conservative opposition to halt virtually all New Deal momentum. The legacy of the New Deal was a more activist national government poised to serve as the broker between society's various interests. Objectives A thorough study of Chapter Twenty-Six should enable the student to understand: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The series of emergency measures designed to restore confidence and enacted during the first 100 days. The New Deal programs for raising farm prices and promoting industrial recovery. The first federal efforts at regional planning. The New Deal program for reforming the financial system. The federal relief programs and Social Security. The political pressures from both the left and the right that caused Franklin Roosevelt to move in new directions from 1935 on. The changes in organized labor during the New Deal period. The effects of the Court-packing scheme, and of the recession of 1937 and 1938 on Roosevelt and the New Deal. The impact of the New Deal on minorities and women. The lasting significance of the New Deal to the American economy and political system.

Key terms Fireside chats Emergency Banking Act Twenty-First Amendment Agricultural Adjustment Act Agricultural subsidies National Industrial Recovery Act National Recovery Administration Minimum wage Public Works Administration Tennessee Valley Authority Federal Deposit Insurance Corporation Securities and Exchange Commission Government dole Work relief Civil Works Administration Civilian Conservation Corps Farm Management Administration American Liberty League Dr. Francis E. Townsend Father Charles E. Coughlin Huey Long Second New Deal National Labor Relations Board Industrial unions Congress of Industrial Organizations United Auto Workers Sit-down strike Memorial Day Massacre Social Security Act Unemployment insurance Works Progress Administration Election of 1936 Party realignment Court-packing plan

Recession of 1937 Broker state Black cabinet

Indian Reorganization Act Francis Perkins Eleanor Roosevelt

Homework Question 1. Analyze the responses of Franklin D. Roosevelts administration to the problems of the Great Depression. How effective were these responses? How did they change the role of the federal government?