U.S. History Quiz Hint Study List

Great Depression and 1930s

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Industries in Trouble - They were business areas not enjoying good economic times during the 1920s. They were railroads, textiles and coal mining. The railroads suffered from government over-regulation and growing competition from automobiles. The textile business as distressed by increased foreign competition, high wage rates and the radical change in women clothing styles. Coal mining faced lower demand because of the end of World War I and competition from newly available alternative energy sources, i.e. oil, natural gas and hydroelectric.
Agriculture Problems - They were the biggest weaknesses of the U.S. economy during the1920s. They were the increased production for WWI which became overproduction after the war due to renewed foreign competition, plus lower demand for cotton and meat due to clothing and eating style change. Better seeds, fertilizer and technology at the same time increased output with no demand increase. The result was that farmers couldn’t pay their debts and ended up with increased debt.
Uneven Distribution of Income - It was another sign of 1920s economic trouble. It was where three-fifths of the nation’s wealth as owned by 2 percent of its people. Nearly half the nations families earned less than $1500 a year, the minimum amount then needed for a decent life. Even those earning twice that amount couldn’t afford most of the products the manufacturers were producing at increased rates. The result was low consumer demand.
Margin Buying - It is where an investor put up a small percentage of a stock’s cost and borrowed the rest with the stock as collateral. If the stock price went up, the loan could be paid, if not, then the broker could demand immediate full payment of the loan plus the interest.
Unrealistic Stock Speculation - It was the 192O’s investment of surplus money by the wealthy in the stock market. The less wealthy did the same, hoping to get rich quick. Some bought on the margin. Stock prices increasingly rose beyond he real value of the businesses.
Signs of Economic Troubles - They are the reasons that the Roaring Twenties were not as economically strong as many people believed at the time. They were industries in trouble, agricultural problems, uneven distribution of income, and unrealistic stork speculation.
Herbert Hoover - This Great Engineer and popular politician had the bad luck t be president of the United States when the booming 192Os ended in the Great Depression. He took the blame for the Great Depression. His foreign policy accomplishments such as with Latin America were forgotten.
“Al” Smith - He was the 1926 Democratic candidate for President. He was the outgoing governor of New York who had a rags to success story. The KKK attacked him because he was Catholic and his call for an end to Prohibition also cost him votes. Hs exaggerated New York City accent on the radio also cost him many rural votes. He lost the election to Hoover.
Hoover’s Good Neighbor Policy - It was the policy that Hoover continued from Coolidge i.e. the conciliation approach to Mexico. He made a goodwill tour of Latin America and in 1930 repudiated the Roosevelt Corollary to the Monroe Doctrine. He attempted to treat Latin American nations as equals.
Economic Multiplier - It is a type of industry that uses enormous resources and stimulates other businesses at the same time. For example, in the construction industry, new buildings mean new furnishings, new equipment, new appliances, additional insurance policies, plus more services. All of this creates jobs. When construction declines, it also creates a downward spiral in the other industries. Automobiles are another example.
Stock Market Crash - It was the sudden end to the inflated stock prices in the fail of 1929. Some like Joseph Kennedy (father of JFK) saw it coming and unloaded holdings early for a profit. Most continued buying. The market faltered in September and took the first big drop on Thursday October 24th. Banks and insurance companies rescued the market by buying. On October 29th the bottom fell out and continued plummeting for two weeks.
Black Tuesday - It is the term for date October 29, 1929, which saw the worst one day drop in Stock Market prices when many speculators who had bought on margin were forced to sell stock in order to cover their loans. Businesses also tried to sell stocks in a panic to unload them before the stock prices went even lower. Millions of stocks went unsold and over a two week period over $30 billion was blown away.
Laizzez-Faire - It is where the government generally stays out of economic affairs and allows business and people free choice and action. It was the United States government’s attitude for much of our history, until the Great Depression.
Abuse of Natural Resources - It was the price the U.S. paid for laizzez-faire economic success. It was wasteful exploitation of natural resources, destruction and pollution of land, waters and death of species like the passenger pigeon. The poor management by unaccountable companies set the nation up for environmental disasters like the floods of 1927 and the dust bowl of the 1930s.
Conservation Legislation - It was the solution imposed by the government to deal with the destruction caused by the abuse of natural resources. Starting in 1872 the government efforts started to be legislated. The Flood Control Act of 1928 gave the federal government the primary responsibility for flood control of the Mississippi Valley. The passing of laws in 1933, 1935 and 1936 were aimed at preventing soil erosion. Government regulation of natural resources continued to expand for the rest of the 20th Century
Easy Credit - It was one of the basic causes of the Great Depression. It was where people could and did buy stock on the margin. It was where people could and did buy the new manufactured goods like toasters, cars, radios, etc., on the installment plan. When the Stock Market panic hit it’s unsupported promise became a situation where price spiraled down because many were unable to buy stocks for any dollar amount.
Unbalanced Foreign Trade - It was one of the basic causes of the Great Depression. It was the1920s and 30s high-tariff policy designed to keep out foreign products so people would buy American. Other nations retaliated by cutting their purchase of U.S. exports and the fact that European nations, faced with heavy war debts and war destruction, couldn’t buy U.S. exports. The result was a trade war and harm to U.S. industries because they couldn’t sell abroad.
Mechanization - It was one of the basic causes of the Great Depression. It was the building of many new factories with the latest in technology for manufacturing resulting In the need for fewer workers. Fewer workers meant less money paid out in wages, which in turn meant less money to buy the factory-produced goods. This in turn meant large unsold inventory.

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Human Suffering - It was the results of worsening economic conditions from 1929 to1933. It was increasing numbers of people thrown out of work until the national unemployment average hit 25% with even more unemployed in certain areas. It was hunger, begging, shame, not being able to find work, loss of education for children, foreclosure, bankruptcy of businesses and farms, etc.
Herbert Hoover - This Great Engineer and popular politician had the bad luck to be President of the United States when the booming 1920s ended in the Great Depression. He took the blame for the Great Depression. His foreign policy accomplishments such as with Latin America were forgotten.
Bonus Army - They were World War I veterans who marched on Washington D.C. in the early 1930s. They demanded early payment of the government promised 1945 bonus because they needed it sooner. They were unsuccessful.
Hoover’s Philosophy - It was the belief that individuals, churches, and local areas should be the ones to care for children, the sick, the old, the disabled, the out-of-work, etc. It was the fear that federal handouts weakened people’s self—respect. In the Great Depression’s case, this lack of help from the national government and the overwhelming of local efforts meant the human suffering worsened with no hope in sight.
Hoovervilles - They are the shantytowns that grew up near the big cities during the Great Depression.
Franklin D. Roosevelt - He wore an opera cape, smoked cigarettes, used a cigarette holder, spoke with an aristocratic New York accent, and was born into an old wealthy American high society family. As an adult he was crippled by polio and had a loveless marriage. On top of all of this, his mother wanted to run his life. Nevertheless, he had a sunny and courageous outlook on life that helped the American people persevere during our darkest years in the Great Depression and World War II.
Bank Holiday - It was an economic measure taken by states and the Federal Government that closed banks during the Great Depression to keep people from withdrawing their savings. Only banks that were financially sound were allowed to reopen.
Twentieth Amendment - It was the moving of the presidential inaugurations up to January from March.

Video: United States History 18: The Great Depression and the New Deal

Stock Market Crash - It was the sudden end to the inflated stock prices in the fall of1929. Some like Joseph Kennedy (father of JFK) saw it coming and unloaded holdings early for a profit. Most continued buying. The market faltered in September and took the first big drop on Thursday October 24th. Banks and insurance companies rescued the market by buying. On October 29th the bottom fell out and continued plummeting for two weeks.
Hoover’s Philosophy - It was the belief that individuals, churches, and local areas should be the ones to care for children, the sick, the old, the disabled, the out-of-work, etc. It was the fear that federal handouts weakened people’s self-respect. In the Great Depression’s case, this lack of help from the national government and the overwhelming of local efforts meant the human suffering worsened with no hope in sight.
New Deal - It was a daring attack on the causes and symptoms of the Great Depression carried out by FDR. It was legislation which raised incomes of farmers and workers, helped preserve natural resources, provided money for the sick and aged, reduced unemployment, guaranteed safe banks, etc. at the cost of raising the national debt and increasing the federal bureaucracy.
Fireside Chats - It was the best means which FDR came up with to explain New Deal legislation to the people of the nation. It was a radio talk by the President with millions of Americans on a regular basis.
Huey Long - “The Kingfish” was the political boss of Louisiana from the late 1920s until his assassination in 1935. He won election In 1928 to the position of governor on the “Everyman a King...” slogan. As governor he silenced his opposition and became virtual dictator of the state. In 1931 he became senator and his “Share the Wealth” movement in the 1930s became a threat to Franklin Roosevelt’s re-election as President. On September 8, 1935 despite his bodyguards, Doctor Carl Weiss gunned him down in the hall of the Louisiana capitol.
Second New Deal - It was the change in the New Deal approach from relief and recovery to reform of the capitalistic system. This period began in 1935.
Packing the Court - It is FDR’s attempt to “reform” the federal courts by forcing retirement of judges at age 70 and increasing the number of judgeships. This measure would have allowed FDR to change the political makeup of the Supreme Court to one that would stop calling his New Deal programs unconstitutional. This proposal by FDR was very unpopular and never made it through Congress.

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Pragmatist - It is the belief that the value of an idea is whether or not it works. FDP was a follower of this philosophy. He tried out many ideas in his effort to end the Great Depression.
Fireside Chats - It was the best means that FDR came up with to explain New Deal legislation to the people of the nation. It was a radio talk by the President with millions of Americans on a regular basis.

Video: Franklin D. Roosevelt’s Hyde Park

Eleanor Roosevelt - Anna had a tragic youth. During her teenage years her dad died an alcoholic. Her mom liked to humiliate her and after her mom died her strict grandmother raised her. She thought of herself as an ugly duckling her entire life. When she found her handsome husband wasn’t faithful, she became a more independent person. She helped her husband in many ways after he was crippled by polio. She developed a common career with her husband in social/political matters becoming his personal representative and then a politically active First Lady loved by many.
Franklin D. Roosevelt - He wore an opera cape, smoked cigarettes, used a cigarette holder, spoke with an aristocratic New York accent, and was born into an old wealthy American high society family. As an adult he was crippled by polio and had a loveless marriage. On top of all of this, his mother wanted to run his life. Nevertheless, he had a sunny and courageous outlook on life that helped the American people persevere during our darkest years in the Great Depression and World War II.
Hyde Park - It is the estate where FDR was born and raised. The house is filled with history of one of our great Presidents.
Polio - It is an acute infectious virus disease that has a high fever and paralysis of motor control. It causes atrophy of muscles permanently disabling the victim. Suffers can never walk again without aid.

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First Hundred Days - It was the time period from March 9 to June 16, 1933. During this brief time Congress, in special session, passed more significant legislation than it usually manages to do in two years. This haste was necessary due to the urgent problems of the Great Depression.
New Deal - It was a daring attack on the causes and symptoms of the Great Depression carried out by FDR. It was legislation which raised incomes of farmers and workers, helped preserve natural resources, provided money for the sick and aged, reduced unemployment, guaranteed safe banks, etc. at the cost of raising the national debt and increasing the federal bureaucracy.
Civilian Conservation Corp - It was the CCC. It was the federal governments putting unemployed single males ages 17-28 to work building roads, planting trees, building trails, helping in soil erosion and flood control projects, etc.
Boondoggle - It was/is trivial government jobs and wasteful programs such as happened during the New Deal.
Tennessee Valley Authority (TVA) - It was the longest lasting New Deal project. It was the building of dams on the Tennessee River to develop that poverty stricken region’s natural resources all at the same time. It helped control floods, improved river navigation, produced electricity and agricultural fertilizers, and even helped control malaria and tuberculosis.
National Recovery Administration (NRA) - It was one of the most controversial agencies set up by the New Deal It limited industrial production so prices would rise and the producers could make a profit. It established minimum wage, abolished child labor, limited the workweek to 40 hours and allowed workers to unionize. Its symbol was the Blue Eagle.
Public Works Administration (PWA) - It was the pump-priming operation where the government would spend lots of money on creating jobs. It undertook projects requiring lots of workers and material. This provided wages and gave workers greater buying power, thus stimulating the economy. Bridges, airports, ocean ports, hospitals, aircraft carriers, etc. were built.
Second New Deal - It was the change in the New Deal approach from relief and recovery to reform of the capitalistic system. This period began in 1935.
Works Progress Administration (WPA) - It was the biggest New Deal program. It set out to create jobs as fast as possible. Between 1935 and 1941 it employed over 8 million people, mostly unskilled. They built or repaired roads, streets, built libraries, schools, hospitals, made garments for the needy, employed writers, artists, musicians, actors, etc.
Social Security - It was the system of social insurance established by the government. It was a pension system for retired workers and their spouses plus death benefits and support for surviving children up to age 18. The benefits came from a payroll tax, with half paid by the worker and half by the employer. This system, which continues today, has affected more lives than any other New Deal legislation.
The Securities and Exchange Commission (SEC) - Securities and Exchange Commission is a government agency established in 1934 and given the responsibility to enforce requirements on the stock market to prevent another crash like that of 1929.
Fixing of some Great Depression Causes - They were the reforms to the capitalistic system made by the Second New Deal. They were the SEC which regulated the stock market, the break up of the dozen holding companies controlling the nation utility companies, the tax on the wealthy in the attempt to break up large accumulations of wealth, and adding of power of the control of the money supply and interest rates to the revamped Federal Reserve Board.

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