Terms Election of 1928 Dust Bowl

“The Great Crash”: The event that triggered the Great Republican Herbert Hoover (helped assist with
Depression which occurred on Black Tuesday, October 29, 1929, WWI food effort) defeated Democrat Al Smith.
the day the stock market crashed. Hoover would be blamed for the Depression During the 1930’s farmers on the Great Plains
Incumbent: The name given to the current president who is Election 1932 faced a period of severe dust storms, droughts
running for the next presidency. Blamed for the Great Depression incumbent
Republican Hoover was defeated by Democratic (long periods without rain) resulting in a natural
Laissez-faire: Where the government has a “hands off”
approach to the economy with the belief that the government
Franklin D. Roosevelt who promised recovery with disaster as well as a financial disaster. Unable
a New Deal for the American People. It didn’t
should not interfere in the operation of the free market. help Hoover out that there was over a 20% to grow enough to pay their bills, farmers lost
unemployment rate.
their farms and were forced to abandon their way
Trickle down: Hoover’s method of solving the Great Election 1936
Depression where emergency loans is given to banks or Incumbent Democrat FDR faced Republican Alf of life. Many of them moved out west to
businesses to keep the business going in hopes that money Landon and crushed him in the election making California in search of work.
would trickle down to the average American. FDR believe that the people did back him up and
believe he was assisting them through the Great
Hoovervilles: These are makeshift home or shacks built by the Depression.
homeless during the Great Depression also referred to as (Visual of the Election of 1936 is on the right side
“Shantytowns”. Landon only took two states even losing his own
Deficit Spending: Roosevelt’s belief that the government must home state – Kansas.)
spend more money than it has to keep the economy going.
Alphabet Soup: name given to Roosevelt’s many organizations
aimed to help the public through relief, recovery, and reform.

The Great Depression and

Fireside Chats: President Roosevelt’s weekly radio addresses
in which he explained his actions directly to the American people
which helped give them faith.

the New Deal

Fiat Money: Paper currency such as the money we use today. Effects of the Great Depression
Bank Failures: If depositors (people who put money in
bank) feared a bank was unsound, they would remove
Causes of the Great Depression Page 1 of 3 their funds. This news would spread to others who also
withdrew their money before it was too late. These runs
Overproduction: The 1920’s saw a rapid economic on banks cause over 9,000 bank failures during the
expansion where manufactures made and sold products such 1930’s.
as automobiles, radios, and refrigerators; however, the
people or consumers lacked the money to purchase these Herbert Hoover’s take on the Great Depression Business Failures: With the onset of the Great
goods. Soon manufacturers were producing more than they Herbert Hoover believed in a true laissez faire economy (Republican ideal) Depression, the demand for goods decreased, prices fell
could sell. where the economy would balance itself out naturally without government and factories closed causing workers to lose their jobs.
intervention. Despite unemployment Hoover rejected federal government aid to As the economy worsened, other factories closed and the
Speculation and the Stock Market Crash: There unemployed and needy. Hoover believed in “volunteerism” where private county was caught in a vicious downward spiral. People
was a rise in people investing in the stock market (3 x the organizations provide emergency relief. Hoover believed the government couldn’t pay their rent or mortgages, and people lost their
people in 1929 than 1920). The people were buying on should not intervene but wait for economy to fix itself. Hoover’s inactivity plus
the Federal Reserve reducing the money supply instead of increasing it hurt the homes. Without any kind of unemployment insurance,
margin (paying 10% only) but responsible for all if it was lost.
economy. Hoover finally reacted by creating the Reconstruction Finance hundreds of thousands of American workers found
With speculation it seemed like you couldn’t lose and would
be guaranteed money if you invested during the 1920’s but Corporation giving emergency loans to businesses and banks. It was too little themselves living in makeshift homes, Hoovervilles.
the stock market crash October 29th, 1929, changed that. too late. (It is important to note that Hoover didn’t cause the Great Depression Unemployment: Over one quarter of the nation’s
but rather mismanaged a long simmering financial crisis but someone has to workforce was unemployed and many of the unemployed
Banking Practices: Banks would collect money from take the blame.) ~ “Blame it on Hoover” were without food and shelter. There was no
people and use that money to invest in other businesses. unemployment insurance thus President Roosevelt
Some of these bankers invested the money in unsound favored “work relief”, giving people emergency public
investments and the U.S. Government didn’t regulate (watch
jobs.
over) them nor regulate the stock market.
Foreclosures: Many homeowners and farmers were
Trade Restrictions: In 1930, President Hoover signed unable to make payments on their mortgages (money
the highest tariff in American history. This led to a tariff war owed to bank). Banks seized their property and forced
with other countries which made it difficult for U.S. producers them out of their homes and farms. The government
to sell overseas. The shrinking of the world market helped passed legislation making emergency loans available.
push the U.S. to the Great Depression.
 Franklin Delano Roosevelt (FDR) FDR Restores Faith in Banking
Through relief Franklin D. Roosevelt tried to restore the faith in the banking system with the ongoing
Longest serving U.S. President from 1933-1945 crisis started by the Stock Market Crash October 29th, 1929. He created a Bank Holiday and only let
FDR who won four elections: 1932, 1936, 1940, and sound (safe) banks reopen. These Federal Reserve approved banks would function under the
1944. President FDR led the U.S. both during the Emergency Banking Act.
Great Depression and later World War II. He Federal Deposit Insurance Corporation (FDIC): Created in 1933, it insured bank deposits so that
helped the American people regain faith in people would not lose their savings in the event of bank failures. This independent federal agency
themselves through his “Fireside chats” and New still exists today.
Deal Program. It is important to note that his plan
did not get the U.S. out of the Great Depression.
Social Security Administration
It is considered by many as the most important measure of the
New Deal. It provided workers with unemployment insurance, Eleanor Roosevelt
senior citizen pensions, and insurance if they died early. The longest serving First Lady of the United States. She
Workers and employers each paid new contributions to fund served as her husband’s eyes, ears, and legs (since FDR
was bound to a wheel chair) travelling across the country
(FDR signing the Social Security these benefits. Social Security continues to impact us today.
and world on FDR’s behalf. She spoke out strongly for
Act in 1935 ) women’s rights, racial issues, the cause of peace, and for
the poor. She pushed FDR to pass the Fair Employments
Practices Committee (1941) which directed against job
New Deal
In an attempt to calm the American people, FDR The Great Depression and discrimination in civil service and war production industries.
(FEPC was a precursor to the Civil Rights Act of 1964.)
states in his First Inaugural Address that the “only
thing we have to fear is fear itself”. He had a plan to the New Deal
help with the Great Depression, the New Deal.
The New Deal was President Franklin Delano Page 2 of 3 Opponents of New Deal
Liberty League: Conservative critics stated that Roosevelt
Roosevelt’s plan to solve the Great Depression
was a “traitor to his class” and that FDR was establishing a
through Relief, Recovery, and Reform popular dictatorship.
Relief: Alphabet Soup Agencies
These were short term actions to help the people over Huey P. Long: Nicknamed the “Kingfish” he was a former
FDR created several agencies to tackle on the Great Depression and it came to be known as his Louisiana governor and a senator. Huey P. Long was a
until the economy recovered. alphabet soup. Below are a few of those agencies and how they tried to curb unemployment by
FDR declared a Bank Holiday, made emergency staunch opponent of FDR and would rile up crowds through
providing jobs and at the same time, improving various parts of the United States.
loans to home owners and gave unemployed jobs. speeches. He wanted to give every American family $5000 a
Tennessee Valley Authority (TVA): Created in 1933, it built twenty one government owned dams year which would be paid by taxing the rich. He was
Recovery: along the Tennessee River, controlling floods and producing electricity as well as jobs
assassinated before he was able to campaign against FDR.
Designed to restore the economy by increasing Civilian Conservation Corps (CCC): Created in 1933, it gave jobs to young men such as planting
incentives to produce and rebuild people’s purchasing trees and cleaning up forests. Members of the CCC lived in camps and received free food. Most of Charles “Father” Coughlin: He was a priest who would
power. He put money into the economy to get it their pay was sent to their parents. give radio address to around 30 million people weekly. At first
Public Works Administration (PWA): Created in 1933, it created federal jobs by building projects, he supported FDR and his New Deal but then became a harsh
going. He also established the NRA and AAA to critic against FDR stating he was too friendly with bankers. He
such as schools, roads, courts, post offices, and bridges.
stimulate demand. also wanted to nationalize (put under government control)
Works Progress Administration (WPA): Created in 1935, it created jobs by hiring artists, writers,
Reform: and musicians to paint murals, produce plays, and create other artworks. major industries and railroads. He would eventually state anti-
Aimed to fix the American economic structure to Semitic (anti-Jewish) statements and later supported some of
Hitler’s and Mussolini’s policies.
ensure that the U.S. would never have such a severe
Grapes of Wrath
depression. The belief that the government should Grapes of Wrath is 1939 novel written by John Francis Townsend: Dr. Townsend felt FDR wasn’t
protect people from risks they could not handle on Steinbeck set during The Great Depression doing enough and wanted to give $200 a month to citizens over
their own. Roosevelt proposed Social Security, which focuses on farmers driven off their 65 years of age to be spent within the month. He felt the
introduced the TVA, F.D.I.C. and the Securities and homes and forced to move West in search of spending of this money would create new jobs, and bring an
work because of the Dust Bowl. It shows the end to the Great Depression.
Exchange Commission. true plight (struggle) of the Great Plains
farmers during the Great Depression.
 NRA and AAA SEC
NRA: The National Recovery Administration (1933) was the The Securities and Exchange Commission
Federal Government’s plan to revive industry during the [SEC] (1934) was created during the Great
depression by asking businesses to follow codes which set
Depression in order to regulate the stock market
standard prices, production limits, and minimum wages. In
1935 the Supreme Court declared the NRA unconstitutional and bring civil enforcement actions against
because the federal government had no power to interfere individuals or companies who have committed
with business activities within a state. accounting fraud. FDR placed Joseph Kenney
AAA: The Agricultural Adjustment Act was a federal law in charge of the SEC (JFK’s father. )
which reduced the agriculture output (to target against
overproduction) by paying farmers subsidies (money) not to
plant on land in order to reduce crop surplus and raise the How the New Deal Impacts Us Today
value of crops. The AAA was also deemed unconstitutional
by the Supreme Court since the government was too Under the New Deal, the federal government’s
involved in the everyday life of Americans.
power increased greatly. The government now
had a responsibility to make sure the national
Court Packing Scheme economy ran efficiently. The New Deal also
expanded the role of government in areas of social
In 1937 Franklin Delano Roosevelt proposed a and economic lives of everyday citizens. Many
plan to appoint Supreme Court Justices “who were
in touch with the needs of the nation” and a new states adopted similar versions of the New Deal
appointment to the Supreme Court for each justice
over 70.5 years old. This plan would have given
The Great Depression and involving more Americans in government.
Although some New Deal programs were
FDR the right to appoint six new Justices, giving
him control of the Supreme Court. The reason
the New Deal eliminated a few are still in effect today such as the
Tennessee Valley Authority (TVA), the Federal
FDR pushed for this plan was there the Supreme
Court declared two of his organizations in his
Page 3 of 3 Deposit Insurance Corporation (FDIC), and the
Social Security Administration.
alphabet soup unconstitutional, AAA and the NRA,
because it was said the government was too
The End of the Great Depression
involved in everyday life. His scheme was seen as 21st amendment
an attempt to destroy the separation of powers. By 1933, most Americans saw the ban on alcoholic beverages
His court packing plan was condemned (attacked) Even though FDR was elected numerous times
as a failure. With the 18th amendment and prohibition under the and had a plan to tackle the Great Depression, it
by the public and rejected by congress. A positive Volstead Act in effect, there was a rise of organized crime (ex:
note about the scheme was that it caused the was not his New Deal that pushed the U.S. out of
Capone in the 1920’s) because of the demand on alcohol.
Supreme Court to work with FDR and not declare Fewer than fourteen years after the ban on alcoholic drinks went the Great Depression. It was World War II. With
any other of FDR’s organization unconstitutional. into effect; Prohibition was repealed (abolished), by the Twenty- the need for mass production (weapons, tanks,
first amendment. The government invoked a $5 tax on every planes, boats, uniforms, jeeps) to ensure victory
barrel manufactured to make more money and there was a against the Axis powers, unemployment was no
decline in crime and organized criminal activity as well. longer a problem.

Gold Standard to Fiat standard

Since ancient times, gold and silver were two accepted forms of exchange or
currency. During the 1800’s the U.S. used this system of money. Use of the gold
standard came to an end in 1933 when President Roosevelt’s Executive Order
outlawed the ownership of gold, except for jewelry. Roosevelt wanted people to
rely on paper money (fiat money), in order to expand the money supply and
stimulate economic activity. Today, most countries in the world, including the
U.S., use fiat money (paper currency).