11.6 Study Guide

Question 1

Explain what happened to stocks when the Stock Market crashed in 1929.

Answer 1

• In 1929, the stock market would crash as stocks bought on margin lost value and leaving investors unable to pay brokers.
• October 29, 1929, Black Tuesday, panicked investors tried to sell all their stocks
• One cause, was the amount of goods bought in the 1920’s on credit. So much was purchased that people were unable to pay back the credit.

Question 2

What did many economists and politicians believe about the economy in the 1920’s?

Answer 2

The crash was unexpected because many economists and politicians of the 1920’s believed the U.S. had entered an era in which everyone would be rich.

Question 3

Why did Great Plains farmers head to California during the Great Depression?

Answer 3

California lured the Okies with the promise of work in agriculture! (more work opportunities

Question 4

What happened to the unemployment rate between 1929-1932?

Answer 4

Unemployment rose 5% to 25%

Question 5

Explain what a Hooverville is…

Answer 5

Many became homeless and lived in “Hoovervilles”-shacks built by people who could not afford a home.

Question 6

What does the term “Dust Bowl” refer to?

Answer 6

Is used to describe the area between Texas and SouthDakota that was damaged by drought and dust storms in the 1920s and ’30s

Question 7

What caused the dust bowl?

Answer 7

Drought, wind storms, and poor farming techniques all led to the dust bowl.

Question 8

To many Californians, what did the arrival of the Dust Bowl refugees represent?

Answer 8

Fewer jobs, more job competition, scarce jobs.

Question 9

List the experiences of the Bonus Army in Washington D.C.?

Answer 9

• Started a Hooverville camp near the White House.
• A riot ensued in which the Bonus Army was driven out, their shelters burned down, and two were killed
• The Bonus Army never received their payment

Question 10

What was the purpose of the Federal Reserve?

Answer 10

The reserve regulates the nation’s money supply and prevents bank failures.

Question 11

Explain how the Federal Reserve contributed to the Great Depression.

Answer 11

After the stock market crash, the Federal Reserve system followed a policy that dried up credit.

Question 12

Explain Roosevelt’s bank holiday.

Answer 12

FDR called congress into a special session and closed all remaining banks, declaring a “holiday”, to keep people from taking their money out.

Question 13

What was the effect of the “Bank Holiday”?

Answer 13

The Bank holiday helped to restore trust in the banking system.

Question 14

What new belief about government was reflected in the New Deal?

Answer 14

The New Deal will reflect the idea that the government should create programs to get people back to work.

Question 15

How will Roosevelt try to help unemployed workers?

Answer 15

Roosevelt will try to help the unemployed workers by creating government-run job programs and building projects.

Question 16

How did Roosevelt try to meet the demand for public aid?

Answer 16

Roosevelt asked congress to appropriate $500 million to be distributed by FERA-Federal Emergency Relief Agency.

Question 17

Reconstruction Finance Corporation

Answer 17

Goal was to stimulate industry and create jobs.

Question 18

TVA (Tennessee Valley Authority)

Answer 18

• Designed to create jobs.
• Built dams on the Tennessee River to turn water into electricity.
• This project will be so important because it will bring electricity to large numbers of rural Americans.

Question 19

Why was the TVA project so important?

Answer 19

Effects of the TVA

• Creates thousands of jobs
• Creates hydroelectric power
• Creates flood control

Question 20

AAA (farming/livestock)

Answer 20

AAA helped out farmers by paying subsidy, or financial assistance, to reduce crop and livestock production.

Question 21

Soil Conservation Act of 1936 was…

Answer 21

To replace it, Roosevelt passed the Soil Conservation Act of 1936, which would not be funded by taxes, but instead, through the treasury.

Question 22

The Truth-in-Securities Act

Answer 22

Truth-in-securities act-designed to eliminate fraud in the stock market.

Question 23

AFL

Answer 23

The first lasting, and effective labor union was the American Federation of Labor (AFL) started in 1886.

Question 24

Share the Wealth program

Answer 24

Sen. Huey P. Long’s “Share the Wealth” plan-all incomes over $5 million should be confiscated and divided up equally.

Question 25

How did Roosevelt try to control the Supreme Court?

Answer 25

Roosevelt will pressure the Supreme Court to stop calling his policies unconstitutional so he introduced a bill to add more judges to the Supreme Court.

Question 26

Second New Deal…attack by rlc

Answer 26

Because of attacks by radicals, liberals, and conservatives, and hampered by the Supreme Court, Roosevelt would launch the Second New Deal.

Question 27

What was the purpose of programs such as the WPA and the CCC?

Answer 27

The WPA and the CCC programs showed Roosevelt’s belief in creating government jobs to get people to work.

Question 28

Social Security Act

Answer 28

The Government would accept direct responsibility for meeting the basic needs of its citizens through the Social Security Act. Instituted pensions for retired workers and survivors benefits to the elderly and orphaned.

Question 29

Rural Electrification Act

Answer 29

Lent money to groups of farmers who organized to build power plants.

Question 30

Why did Eleanor Roosevelt want women appointed to political posts?

Answer 30

Eleanor Roosevelt worked to get women appointed to political posts because she felt that women were in the best position to promote such things as child welfare and world peace.

Question 31

List the senior positions held by women during FDR’s presidency.

Answer 31

Secretary of Labor, Federal Appeals Court, Ambassador, and Director of the Mint.

Question 32

Why did employment for women not decline very much in the 1930’s?

Answer 32

Many employment opportunities were open to women during the 1930’s because jobs that traditionally went to women did not decline very much.

Question 33

Which group was least helped by the New Deal?

Answer 33

Minorities

Question 34

Black Cabinet

Answer 34

FDR appointed African Americans to serve in various branches of his administration.

Question 35

Indian Bureau

Answer 35

Once Native Americans had established their own governments, the Indian Bureau was authorized to provide the reservation with the funds needed to build schools, hospitals, and businesses.

Question 36

Describe the legacy of the New Deal.

Answer 36

The direct legacy of the New Deal was the expansion of government into almost all aspects of people’s lives.

Question 37

How does the government change as a result of the New Deal?

Answer 37

The New Deal will result in an increase the role the government plays in economic matters that continue to the present day.

Question 38

Fireside Chats

Answer 38

Roosevelt will be the first president to make use of the radio to keep the public informed in a series of speeches known as Fireside Chats.

Question 39

What was the symbol of wealth and status during the Depression?

Answer 39

During the depression, the car was the biggest symbol of wealth and status.

Question 40

Explain what people did to avoid the reality of the Depression.

Answer 40

To avoid the reality of the depression, people read books, went to the movies, and went for car drives.

Question 41

What advancement was made in the movie industry?

Answer 41

Movies became even more popular in the 30’s when sound became common.