The GREAT DEPRESSION & the NEW DEAL [APUSH Unit 7 Topics 9-10] Period 7: 1898-1945

Summary

This video explains the causes and effects of the Great Depression, including the 1929 stock market crash, agricultural overproduction, and speculative investments. It also highlights Franklin D. Roosevelt’s New Deal, a series of programs designed to provide relief, recovery, and reform. These initiatives expanded the role of the federal government, addressing unemployment, business instability, and banking crises. The video explores both the positive and negative responses to the New Deal, its long-term impact on American politics, and how it reshaped the nation's approach to social welfare and government intervention.

Takeaways

• 😀 The Great Depression began with the stock market crash of 1929, triggered by overproduction, high tariffs, and risky investments like buying on margin.
• 😀 The Hawley-Smoot Tariff of 1930 worsened the Depression by crippling the ability of the U.S. to sell its products overseas.
• 😀 Buying on margin led to massive debt when the stock market crashed, as people had borrowed money to buy stocks under the assumption prices would keep rising.
• 😀 The economic hardship of the Depression led to widespread poverty and homelessness, with many people living in makeshift camps called Hoovervilles.
• 😀 President Herbert Hoover's laissez-faire approach to the economy was criticized for not doing enough to alleviate suffering during the Depression.
• 😀 Franklin D. Roosevelt won the 1932 election with a promise of heavy government intervention, marking a significant shift in U.S. economic policy.
• 😀 Roosevelt's New Deal sought to provide relief for the unemployed, recovery for businesses, and reform of economic institutions.
• 😀 Key New Deal programs included the Public Works Administration (PWA), the Tennessee Valley Authority (TVA), and the Civilian Conservation Corps (CCC), which created jobs and built infrastructure.
• 😀 The National Industrial Recovery Act (NIRA) aimed to stabilize business competition by establishing minimum wages, shorter working hours, and price regulations.
• 😀 The Social Security Act of 1935 became one of the enduring New Deal programs, providing a safety net for retired workers and establishing the foundation for modern social welfare programs.

Q & A

What was the main event that triggered the Great Depression in 1929?

The main event that triggered the Great Depression was the stock market crash on October 29, 1929, known as Black Tuesday. This event was the culmination of weeks of declining stock prices, but it marked the point when the market bottomed out.

How did overproduction contribute to the Great Depression?

Overproduction, particularly in agriculture, led to farmers being in severe debt. The excess supply of goods, combined with high tariffs, made it difficult for the U.S. to sell these goods internationally, exacerbating the economic downturn.

What was the Hawley-Smoot Tariff, and how did it impact the Great Depression?

The Hawley-Smoot Tariff, signed into law in 1930, imposed high taxes on imports, which hurt international trade. This worsened the economic situation by limiting the ability of U.S. businesses, especially farmers, to sell their products abroad, further deepening the Depression.

What does 'buying on margin' mean, and why was it risky?

Buying on margin means borrowing money to purchase stocks, assuming that stock prices will continue to rise. This practice was risky because when the stock market crashed, people not only lost their investments but also found themselves in crushing debt, unable to repay the money they had borrowed.

How did the Great Depression affect ordinary Americans?

The Great Depression caused widespread poverty and homelessness. Many people lost their homes due to foreclosures and took refuge in makeshift shantytowns called 'Hoovervilles,' named derisively after President Hoover, who was blamed for the government's failure to address the crisis.

Why did President Hoover believe in a 'laissez-faire' approach during the early years of the Depression?

President Hoover believed that the economy would correct itself if left alone, adhering to a 'laissez-faire' philosophy. He thought that minimal government intervention would allow the market forces to restore balance over time, but this approach failed to alleviate the suffering of the American people.

What were the key promises of Franklin D. Roosevelt’s 1932 campaign?

Franklin D. Roosevelt campaigned on the promise of significant government intervention to address the economic crisis. He pledged to implement policies that would provide relief to the unemployed, stimulate economic recovery, and reform the financial system.

What were the three R's of the New Deal, and what did each entail?

The three R's of the New Deal were relief, recovery, and reform. Relief aimed to provide immediate assistance to the unemployed, recovery sought to revive the economy and businesses, and reform aimed to prevent future economic disasters through regulations and institutional changes.

What were some of the New Deal programs created to provide relief for the unemployed?

Some key New Deal programs for relief included the Public Works Administration (PWA), which funded infrastructure projects, the Tennessee Valley Authority (TVA), which created jobs in the energy sector, and the Civilian Conservation Corps (CCC), which employed young men for environmental conservation projects.

What was the significance of the Social Security Act of 1935?

The Social Security Act of 1935 established a safety net for workers over the age of 65 by creating a pension system funded by withholding part of workers' wages. It marked a significant expansion of the welfare state and is still in place today as Social Security.