Depression and the New Deal 1930s & 40s

Question 1

What were the causes of the depression?

Answer 1

• Wall St Crash; people lost confidence in the economy and share prices dropped as people panicked
• Businesses went bankrupt as people could not repay the money they had borrowed to buy shares.
• People lost their jobs as businesses lost money.

Question 2

Describe how the Great Depression impacted on people.

Answer 2

• High unemployment: By 1933 unemployment was at 14 million
• Low wages: average wages fell by 60%
• Homelessness - hoovervilles and soup kitchens

Question 3

Why did farmers suffer especially badly during the Great Depression?

Answer 3

• As people lost their jobs, demand for food dropped too. Many went bankrupt, loosing their jobs and homes.
• More than 2.5 million farmers moved to the west coast looking for work, little was there for them.

Question 4

Why was Roosevelt elected in 1932?

Answer 4

• In 1932, ex soldiers marched on Washington to ask for their pensions to be paid early. The army were sent in to use tear gas.
• Hoover believed in Laissez-faire. (Republican)
• As a Democrat, Roosevelt promised a new deal for people. He spent money on creating jobs and boosting the economy.

Question 5

How did Roosevelt’s new deal provide ‘relief’?

Answer 5

• Set up alphabet agencies, such as the Federal Emergency Relief Committee to provide kitchens, nursery care and blankets.

Question 6

How did Roosevelt’s new deal provide ‘recovery’?

Answer 6

Alphabet agencies:

• CCC: Civilian Conservation Corps; unemployed ken could work in conservation projects such as tree planting
• AAA: Agricultural Adjustment Administration; steady food prices and give machinery to farmers.
• TVA; Tennessee Valley Authority; to build dams around Tennessee river, making the land more fertile for farmers and creating jobs

Question 7

How did FDR’s new deal provide ‘reform’?

Answer 7

• Closing all banks and then gradually reopening healthy ones
• Set up alphabet agencies such as the National Recovery Administration to control industry and boost wages

Question 8

Describe criticisms of the new deal.

Answer 8

• Some said it didn’t go far enough; businesses still had too much power
• Some felt Roosevelt was interfering too much in business and taking power away from local government
• It failed to really challenge discrimination between African Americans, native Americans and women

Question 9

Describe three ways that war boosted the American economy.

Answer 9

• War Production Board was set up in 1942 to organise production and workers to meet the increased demand for war good. 50,000 new businesses were set up
• Lend Lease sent weapons to American allies, receiving payment for them later. By 1944, America were making half the world’s weapons
• Farmers got a huge boost as food exports increased
• 14million Americans worked in factory’s producing war goods

Question 10

What was the impact of the war on women and African Americans?

Answer 10

• % of women in paid employment increased to 50% by 1944
• Women’s wages increased
• The US army included over 1 million African Americans, fighting alongside their white comrades as equals.
• By 1943, 2 million African Americans were working in factories in the Northern States