New Deal + Great Depression

Question 1

Long term causes of crash

Answer 1

Overproduction + underconsumption of agriculture
“ “ of consumer goods
Protectionism (tariffs)
Debt increasing
Laissez faire

Question 2

Wall Street Crash

Answer 2

Period in October 1929 when shares + other investments in the US fell in value by large amounts, followed by the depression

Greatest stock market crash in US history

Question 3

Short term causes of crash (2)

Answer 3

Word spread about falling profits of overproducing big companies so people sold their shares
They dropped their share price to try to attract a buyer - lost a lot of money

Question 4

Black Thursday date + shares (2)

Answer 4

24th October 1929

13 million shares sold

Question 5

How many shares were sold on 29 October?

Answer 5

16 million shares sold

Question 6

How much did shareholders lose on 29th October 1929?

Answer 6

Shareholders lost a total of $8000 million

Question 7

How many banks had closed by 1933?

Answer 7

5000 banks had gone bankrupt

Question 8

Suicides in the Great Depression

Answer 8

Suicides up 50%

Question 9

Unemployment in Great Depression (2)

Answer 9

By 1933 unemployment had risen to 25% of national workforce (14 million people)
Compared to 3% in 1929

Question 10

How many farmers became hobos in the depression?

Answer 10

2 million

Question 11

How many businesses went bankrupt as a result of the crash + depression?

Answer 11

8500

Question 12

How did production + wages change between 1928 and 1933?

Answer 12

Industrial + farm production fell by 40%

Wages fell by 60%

Question 13

Hoover’s responses to Great Depression (3)

Answer 13

Hawley-Smoot Act 1930 - increased tariffs by 50%
- foreign countries retaliated, trade fell further
Reconstruction Finance Corporation - loans totalling $1500 million to rescue businesses, banks etc.
- didn’t help enough
Made $300 million available to states to help unemployed but only $30 million given out

Question 14

Roosevelt’s election campaign (3)

Answer 14

Grand train tour - 20800km
Vague plans but recognised everyone wanted change
Promised a New Deal

Question 15

Hoover’s views about the depression

Answer 15

Just a cycle of boom and bust

- ‘prosperity is just around the corner’

Question 16

Roosevelt’s 3 aims

Answer 16

Relief - help for victims of depression
Recovery - encourage economic recovery + employment
Reform - improve economic system to prevent another depression

Question 17

Roosevelt’s first 100 days

Answer 17

Emergency banking act

Alphabet Agencies

Question 18

Second New Deal

Answer 18

Social Security Act
Wagner Act
WPA
RA

Question 19

CCC

Answer 19

Helped 2.5 million young men

• they could sign up for periods of 6 months (could be renewed if work was not found)
• mainly environmental projects
• paid basic wage + provided with accommodation + food

Question 20

WPA

Answer 20

Created jobs for office workers, artists, actors + photographers
(Second new deal)

Question 21

PWA

Answer 21

Created millions of short-term jobs by paying the unemployed to build schools, bridges, dams etc
(Replaced WPA in 1935)

Question 22

Emergency Banking Act (4)

Answer 22

Roosevelt immediately tackled banking crisis:
Ordered all banks to close for 4 day bank holiday + remain closed until gov officials had checked them over
5000 trustworthy banks were allowed to reopen
- these were supported by gov money if necessary

Question 23

NRA (4)

Answer 23

Aim = to stimulate economy by giving workers money to spend with overproducing
Voluntary scheme that allowed firms to use the blue eagle as a symbol of presidential approval
Over 2 million employers joined
Set fair wages, improved hours + conditions

Question 24

Wagner Act

Answer 24

Made it illegal to sack workers for being in a union

2nd new deal

Question 25

SSA (4)

Answer 25

National System of pensions + welfare payments Scheme for unemployment insurance: - Employers + employees made small contribution to special fund each week — if workers became unemployed, they could receive a small amount of benefit until they found work

Question 26

AAA (3)

Answer 26

Set quotas to reduce farm production - force prices gradually upwards Helped farmers to use sustainable farming methods In cases of extreme hardship, farmers could receive help with mortgage payments

Question 27

TVA

Answer 27

Built series of dams to improve farming in Tennessee

Question 28

RA (2)

Answer 28

Helped smallholders + tenant farmers not helped by AAA Organisation moved over 500,000 families to better quality land + housing (2nd new deal)

Question 29

FSA (2)

Answer 29

Gave special loans to small farmers to help them buy land Built camps for migrant workers (Replace RA in 1937)

Question 30

FCA

Answer 30

Loaned $100 million in 18 months to farmers unable to meet mortgage payments

Question 31

FERA (2)

Answer 31

Met urgent needs of the poor | - sum of $500 million spent on soup kitchens, blankets, employment schemes + nursery schools

Question 32

Successes of New Deal (3)

Answer 32

Created millions of jobs Less bank failures Farmers helped significantly

Question 33

Failures of New Deal (5)

Answer 33

Strikes = dissatisfied workers - in 1934, 20 million days lost to strikes Did not solve unemployment - stayed at 10% throughout 1930s Women discrimination - average yearly wage was half a man’s Alphabet Agencies only gave basic wage Alphabet Agencies discriminated against African Americans

Question 34

Why and when did the New Deal come to an end?

Answer 34

By 1938, unemployment sliding back toward depression again (had risen to 10.5 million), which FDR acknowledged: Ended January 1939

Question 35

Opposition to the New Deal

Answer 35

Supreme Court viewed Alphabet Agencies as unconstitutional - imposed power of federal gov onto state gov Republicans - believed in self help, FDR doing too much Radical Democrats - FDR wasn’t doing enough

Question 36

How many homes had a radio in 1939?

Answer 36

28 million

Question 37

Music in 1930s (3)

Answer 37

Swing emerged + was popular with Americans Popularity of jazz continued Gramophones + vinyl became popular way to listen to music

Question 38

How many people went to the cinema every week in the 1930s?

Answer 38

60 million people (most likely to escape trouble of depression)

Question 39

Films/cinema in 1930s (2)

Answer 39

60 million went every week | Films reflected hard times that millions were suffering in the 30s even though tone was upbeat

Question 40

Comics 1930s

Answer 40

1930s witnessed development of comics | Batman + superman introduced at end of decade

Question 41

Art 1930s

Answer 41

WPA meant new works were created: | - actors were hired to put on new shows, artists to paint displays for schools etc.

Question 42

Literature 1930s

Answer 42

Great Depression produced some of the greatest works in American Literature

Question 43

US policy of isolationism

Answer 43

Didn’t want to get involved in other countries affairs after WW1 + stayed isolated for many years Only became fully involved in WW2 in retaliation to bombing of Pearl Harbour

Question 44

Lend Lease (3)

Answer 44

Began March 1941 with support to Britain but by end of war, US were helping USSR, France + other allies USA loaned war materials to its allies on understanding it would be returned by end of war by not charged for if it was destroyed Majority of contracts placed with US firms - stimulated economy

Question 45

Worth of materials shipped as part of lend lease?

Answer 45

Total of $50.1 billion worth of materials shipped