Unit 9 - Roaring Twenties, Great Depression, FDR

Question 1

Ku Klux Klan in the 20s

Answer 1

Ku Klux Klan membership soared to 4 million people in the 1920s. They engaged in violent acts including lynching and burning crosses.

Question 2

New Products in the 20s

Answer 2

A few new technologies that began changing America in the 1920s were electric lights, electricity, cars, radio

Question 3

Prohibition & Speakeasies

Answer 3

The 18th Amendment, known as “Prohibition,” banned the sale of alcohol. Liquor was sold in “speakeasies,” which were illegal bars throughout the nation during this era.

Question 4

Sports (Babe Ruth)

Answer 4

Spectator sports, like baseball, became huge entertainment in the 1920s. Babe Ruth was the biggest baseball star, and one of the greatest players and homerun hitters of all time. He hit 60 homeruns in a single season.

Question 5

Charles Lindbergh & the Spirit of St. Louis

Answer 5

In 1927, the airplane “The Spirit of St. Louis” was flown by pilot Charles Limbergh. He was a daring young pilot attempting something no person had ever done. He flew alone across the Atlantic Ocean from New York to Paris. HIs success made him a hero in the U.S. and around the world.

Question 6

Harlem Renaissance and Jazz

Answer 6

The “capital” of jazz music during the era was in Harlem, New York. Bessie Smith, Louis Armstrong, and Duke Ellington were famous jazz musicians during this era.

Question 7

Scopes Trial and “science vs. religion”

Answer 7

In 1925, Tennessee high school teacher John T. Scopes was brought to trial in Dayton, Tennessee, for violating the law by teaching the theory of evolution in his public school. William Jennings Bryan, a 3-time presidential candidate, prosecuted Scopes and he was found guilty. Clarence Darrow defended Scopes in the trial. Christian fundamentalists viewed the teaching of evolution as a challenge to their beliefs. Darwin’s theory of evolution taught that humans and other species developed over vast periods of time. This conflict led to a “science vs. religion” battle between different groups of people in the country.

Question 8

Buying on Credit/Margin Loans

Answer 8

A new consumer concept developed in the 1920s - buying on credit. This allowed people to “buy now and pay later.” Many people bought on margin, a process where the buyer paid as little as 10% of the price and borrowed the rest.

Question 9

What Caused the Great Depression?

Answer 9

1. The Stock Market Crash of 1929 - “Black Tuesday” on October 29, 1929, the stock market crashed ans lost 12% of its value, wiping out $14 billion of investments.
2. Bank Failures - As people saw others losing their money, many decided to try and withdraw their money from their banks as quickly as possible, which caused thousands of banks to fail.
3. Reduction in Purchasing (Spending) - Surviving banks were unsure of the situations, which made them concerned for their own survival. This led to less and less spending by the banks, and unwilling to lend money. With their investments worthless, savings diminished, and credit tight or nonexistent, spending by consumers and companies stopped. This led to workers being laid-off from their jobs by the masses. Then, people were unable to pay their bills or for things they had bought on credit. The unemployment rate rose above 25% in the country, with meant less and less money in taxes for the U.S. government, which led to poor economic policies.
4. Poor U.S. Economic Policies (President Hoover) - Vowing to protect U.S. industry from overseas competitors, Congress passed the Smoot-Hawley Tariff. This imposed near-record tax rates on imported goods. America’s trading partners also imposed their own tariffs, and world trade dropped by two-thirds.
5. Poor Social and Economic Conditions - the economic devastation was made worse by environmental destruction. A long drought, combined with poor farming practices created a vast region of the U.S to become known as the Dust Bowl. Unemployed people gathered in “Hoovervilles,” named after President Hoover, which were small towns of homeless and unemployed people.

Question 10

Hoover’s Response to the Economic Crisis

Answer 10

President Hoover thought the economic crisis was temporary. He believed that prosperity was “just around the corner.” He also believed that the “depression cannot be cured by legislative action or executive pronouncement.” Instead, he called on business leaders not to cut wages or factory output. He asked charities to do their best to help the needy, as he thought voluntary action by citizens and local governments would pull the nation through the crisis.

Question 11

Hawley-Smoot Tariff Act (1930)

Answer 11

In 1930, Congress passed tariffs, which raised the prices of goods purchased from other countries, trying to protect U.S. industry from overseas competitors. This hurt foreign countries, who then raised their own tariffs on American products, which hurt American businesses. The Act caused world trade to drop by two thirds by 1934.

Question 12

Hoovervilles

Answer 12

Hoovervilles were small, makeshift towns of homeless and unemployed people - named after President Hoover.

Question 13

The Bonus Army

Answer 13

When the Depression hit, a large group of U.S. World War I veterans called the “Bonus Army” went to Washington, D.C., to demand their war bonuses promised by congress be paid out to them early. Congress voted against meeting their demands. After the vote, about 2,000 Bonus Army members remained, and when police tried to break up their camp, conflict broke out and 2 people were killed. Hoover responded by calling in the U.S. Army. Veterans and their families fled as the troops burned their camp. Americans were horrified that the government had attacked war veterans. Hoover was then seen to be out of touch with ordinary people.

Question 14

Hoover and the Public Works Programs

Answer 14

Hoover finally saw that the federal government had to take action. Pressed by Congress, he agreed in 1931 to federal spending on public works - projects such as highways, parks, and libraries meant for public use (Hoover Dam is an example). The thinking was that building these projects would create new jobs. Unfortunately, state and local governments were already out of money. Hoover then asked Congress to create the Reconstruction Finance Corporation (RFC). The RFC lent money to businesses and provided funds for state and local programs. However, the RFC’s leaders were not willing to give out risky loans, so most of it’s available funds went unused and it did little to reduce suffering and unemployment.

Question 15

Election of 1932

Answer 15

President Herbert Hoover hoped for reelection, but his chances were slim with the nation’s economy falling apart. The Democrats chose New York Governor Franklin D. Roosevelt as their candidate, and voters elected him in a landslide victory.

Question 16

FDR’s New Deal

Answer 16

During the election of 1932, FDR told the Democrats and the nation, “I pledge you, I pledge myself, to a new deal for the American people.” He declared that “the country demands bold, persistent experimentation.” He also spoke of trying to help “the forgotten man at the bottom of the economic pyramid.”

Question 17

FDR’s Background

Answer 17

FDR was a distant cousin of Theodore Roosevelt. He came from a wealthy New York family. He won election to the NY Senate in 1910, where he became known as a leader with the ability to get others to support his views. IN 1913, he became assistant secretary of the navy. In 1920, Democrats chose him as their VP candidate, but they lost the election. In 1921, he was struck with polio, which left him paralyzed in both legs and bound to a wheelchair. He later returned to politics and won election to be the Governor of NY, where he earned a reputation as a reformer.

Question 18

Fireside Chats

Answer 18

In FDR’s first week in office, he ordered all banks closed for 4 days and Congress passed the Emergency Banking Relief Act to help banks reorganize. He gave a radio talk to the nation about how they could trust putting their money back in banks. This was the first of many “fireside chats” that helped him gain the public’s trust.

Question 19

John Maynard Keynes

Answer 19

Keynes was an English economist who believed that even free market capitalist nations needed some oversight by government, and is best known for new ways to get out of recessions. He argued for governments to stimulate faltering economies with public investiture. Even a small increase in government spending could net sizeable results, creating economic and social stability.

Government-led investment infused the economy with cash and provided work for those previously unable to participate in the economy because of joblessness. For instance, if a government hires a construction firm to build a bridge, the firm needs to hire workers and pay them. Those newly employed workers use their salaries to purchase food from a farmer. That farmer now sees increased demand and needs to hire more laborers, and so on. More workers meant more happy citizens, more money in the economy, and more equality among members of society.

When FDR assumed power in the midst of the Great Depression, Keynesian economic philosophy figured heavily into the new administration’s financial relief plan: The New Deal. When FDR assumed power in the midst of the Great Depression, Keynesian economic philosophy figured heavily into the new administration’s financial relief plan: The New Deal. Within one hundred days, FDR had created three crucial agencies designed to stimulate job growth.

Question 20

FDR’s New Deal and the Three R’s

Answer 20

The New Deal programs were known as the three “Rs”; Roosevelt believed that together Relief, Reform, and Recovery could bring economic stability to the nation. Reform programs focused specifically on methods for ensuring that depressions like that in the 1930s would never affect the American public again.

Question 21

Glass-Steagall Act

Answer 21

In 1933, in the wake of the 1929 stock market crash and during a nationwide commercial bank failure and the Great Depression, two members of Congress introduced an act, known today as the Glass-Steagall Act (GSA), that would separate investment and commercial banking activities. This was initially called the Banking Act of 1933. At the time, improper banking activity–the overzealous commercial bank involvement in stock market investment–was deemed the main culprit of the financial crash. It was believed that commercial banks took on too much risk with depositors’ money.

Question 22

Federal Deposit Insurance Corporation (FDIC)

Answer 22

On June 16, 1933, President Franklin Roosevelt signed the Banking Act of 1933, a part of which established the FDIC, which had the responsibility to insure bank deposits in eligible banks against loss in the event of a bank failure and to regulate certain banking practices. It was established after the collapse of many American banks during the initial years of the Great Depression.

Question 23

Gold Reserve Act (1934)

Answer 23

The Gold Reserve Act of 1934 was passed under President Franklin D. Roosevelt at the height of the Great Depression to stabilize the money supply in the U.S. Gold reserves were transferred from the Federal Reserve bank to the U.S. Treasury at a discount.
The precious metal was effectively converted from a currency to a commodity with the passage of the Act.
The intended effect of the law was to increase the money supply and stem deflation by devaluing the dollar, including in foreign exchange markets.

Question 24

Civilian Conservation Corps (CCC)

Answer 24

Roosevelt asked Congress to create the Civilian Conservation Corps (CCC). Over the next 10 years, the CCC employed about 3 million young people. The wokers did projects that helped the public, including planting trees to reforest areas, building levees for flood control, and improving national parks.

Question 25

Tennessee Valley Authority (TVA)

Answer 25

The TVA was aimed to promote the economic well-being of the Tennessee Valley region. It built dams along the Tennessee and other rivers. These dams helped control the terrible floods that were common to the area. The dams also used the power of flowing water to generate electricity, and as a result thousands of farms and homes got electricity for the first time.

Question 26

Agricultural Adjustment Act (1933)The Works Progress Administration (WPA) was an ambitious employment and infrastructure program created by President Roosevelt in 1935, during the bleakest years of the Great Depression.

Answer 26

FDR signed the AAA, which aimed to raise farm prices quickly. It also sought to control production so that farm prices would stay up over the long term. In the first year of the AAA, farmers grew more food than they could sell. The excess crops drove prices down, hurting farmers. The AAA paid farmers to destroy crops, milk, and livestock. This shocked many Americans to encourage throwing away good food when millions of Americans were going hungry. However, people who believed in the New Deal claimed it was necessary to bring up prices.

Question 27

National Industry Recovery Act (1933) and the National Recovery Administration (NRA)

Answer 27

Roosevelt called the NIRA the most important and far-reaching legislation ever passed in the U.S. The goal was to boost the economy by helping business regulate itself. The NIRA created the National Recovery Administration (NRA), which pushed businesses to set a minimum wage and abolish child labor. It also tried to set up codes governing pricing and other practices for every industry.

Question 28

Works Progress Administration (WPA)

Answer 28

The Works Progress Administration (WPA) was an ambitious employment and infrastructure program created by President Roosevelt in 1935, during the bleakest years of the Great Depression. The WPA – which in 1939 was renamed the Work Projects Administration – employed mostly unskilled men to carry out public works infrastructure projects. They built more than 4,000 new school buildings, erected 130 new hospitals, laid roughly 9,000 miles of storm drains and sanitary sewer lines, built 29,000 new bridges, constructed 150 new airfields, paved or repaired 280,000 miles of roads and planted 24 million trees.

Question 29

Federal Emergency Relief Act (1933)

Answer 29

The Federal Emergency Relief Administration (FERA) was a program established by President Franklin Roosevelt in 1933, building on the Hoover administration’s Emergency Relief and Construction Act. … FERA’s main goal was to alleviate household unemployment by creating new unskilled jobs in local and state government.

Question 30

Schechter v. U.S. (1935)

Answer 30

The Supreme Court case that invalidated as unconstitutional a provision of the National Industrial Recovery Act (NIRA) that authorized the President to approve “codes of fair competition” for the poultry industry and other industries.

Question 31

Supreme Court Response to FDR’s New Deal

Answer 31

In 1935, the Supreme Court began declaring some parts of the New Deal unconstitutional. On January 6, 1936, the Supreme Court decided in United States v. Butler that the Agricultural Adjustment Act (AAA) was unconstitutional for levying this tax on the processors only to have it paid back to the farmers. Regulation of agriculture was deemed a state power. The Supreme Court struck down several parts of FDR’s New Deal as unconstitutional, which dealt a blow to FDR’s plans.

Question 32

FDR’s Response to the Supreme Court

Answer 32

As the Supreme Court had struck down several parts of his New Deal as unconstitutional, FDR asked Congress to increase the number of seats on the Court from 9 to 15. He appeared to be trying to “pack the court.” So that the new Justices would tilt the court into voting in his favor. This action angered a lot of Americans, who believed in the Supreme Court and the system of checks and balances. When the Court eventually voted in favor of the Wagner Act and the Social Security Act, FDR dropped his Court-packing plan.

Question 33

Social Security Act

Answer 33

In 1935, Congress passed the Social Security Act. The Act placed a tax on workers and employers. Money from the tax paid for monthly pensions for retired people. The Act also placed a tax on employers to help fund unemployment insurance - payments to those who lose their jobs. Social Security also helped people with disabilities, the elderly poor, and children of poor families. With the Social Security Act, the federal government took responsibility for the welfare of all citizens.

Question 34

Election of 1936

Answer 34

FDR easily defeated Republican Alf Landon from Kansas, gaining 61% of the popular vote.

Question 35

Roosevelt Recession (1937)

Answer 35

The Roosevelt Administration was under assault during Roosevelt’s second term, which presided over a new dip in the Great Depression in the fall of 1937 that continued through most of 1938. Production and profits declined sharply. Unemployment jumped from 14.3% in 1937 to 19.0% in 1938. The downturn was perhaps due to nothing more than the familiar rhythms of the business cycle. But until 1937 Roosevelt had claimed responsibility for the excellent economic performance. That backfired in the recession and the heated political atmosphere of 1937, and FDR was blamed by a lot of people for the new recession and slow business recovery.

Question 36

Wagner-Steagall Act (1937)

Answer 36

The Housing Act of 1937, formally the “United States Housing Act of 1937” and sometimes called the Wagner–Steagall Act, provided for subsidies to be paid from the U.S. government to local public housing agencies (LHAs) to improve living conditions for low-income families.

Question 37

Fair Labor Standards Act

Answer 37

1938 Fair Labor Standards Act
The Fair Labor Standards Act was originally drafted in 1932 by Senator Hugo Black, whose proposal to require employers to adopt a thirty-hour workweek met fierce resistance.[22]

In 1938, a revised version of Black’s proposal was passed. The revised version was instrumentally supported by a number of notable people, including Frances Perkins, Clara Mortenson Beyer from the Bureau of Labor Standards within the United States Department of Labor, as well as Congresswoman Mary T. Norton.[23] The revised proposal adopted an eight-hour day and a forty-hour workweek and allowed workers to earn wage for an extra four hours of overtime as well.[22] According to the act, workers must be paid minimum wage and overtime pay must be one-and-a-half times regular pay. Children under eighteen cannot do certain dangerous jobs, and children under sixteen cannot work in manufacturing or mining or during school hours.[24][4] Though it did not cover executives, seasonal employees, and some other groups, the Fair Labor Standards Act gave raises to 700,000 workers, and US President Franklin Roosevelt called it the most important piece of New Deal legislation since the Social Security Act of 1935.

Question 38

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