A. CONSEQUENCES OF THE 1929 STOCK MARKET CRASH
1. A loss of confidence in the stock market
2. A reduction in the output of manufactured goods
3. A decline in investment in capital goods
B. OVERPRODUCTION AND UNDERCONSUMPTION
1. Companies overproduced consumer goods.
2. Consumers did not have enough money or credit to purchase goods.
C. DECLINE IN FARM PROSPERITY
1. The decline in farm prosperity in the 1920s was an important factor contributing to the Great Depression in the 1930s.
2. Depression of the prices of agricultural products during the 1920s was an important sign of economic weakness.
D. INTERNATIONAL TRADE
1. Serious dislocations in international trade were a significant cause of the Great Depression.
2. The Hawley-Smoot Tariff Act of 1930 raised tariffs, thus triggering a decline in trade. Within three years, world trade declined in value by 40 percent.
A. THE BONUS EXPEDITIONARY FORCE
1. In 1932, a ragtag "army" of World War I veterans known as the Bonus Expeditionary Force marched on Washington, D.C. Their objective was to demand that Congress pay them a bonus, which had been promised to World War I veterans.
2. President Hoover used force to disband the Bonus Expeditionary Force.
B. HOOVER'S ECONOMIC POLICIES
1. President Hoover believed that the economic recovery of the United States depended primarily on the business community.
2. President Hoover approached the task of caring for unemployed workers by emphasizing the importance of private charities.
3. President Hoover supported federal loans to private businesses and to state and local governments.
4. President Hoover established the Reconstruction Finance Corporation (RFC) in a belated attempt to fight the Great Depression.
A. GOALS
1. The three Rs were Relief, Recovery, and Reform.
2. Unlike Hoover, FDR favored direct federal relief to individuals.
3. The New Deal was a reform program that sought to restructure American capitalism rather than replace it with a socialist system.
4. The program used deficit spending on public works programs to revive the economy.
B. THE FIRST HUNDRED DAYS
1. All of the following concerns were addressed during the First Hundred Days of the New Deal:
• Restoring public confidence in the banking system (Note: The New Deal did not propose legislation that would nationalize the banks.)
• Creating new jobs in the public sector to reduce unemployment
• Raising farm prices by restricting agricultural production
• Providing mortgage support for homeowners
• Creating the Tennessee Valley Authority as a model project to provide cheap electricity, prevent floods, and serve as an experiment in regional planning
2. All of the following were passed during the First Hundred Days:
• The Civilian Conservation Corps
• The National Recovery Administration
• The Agricultural Adjustment Act
• The Tennessee Valley Authority
C. FARM POLICY: THE AGRICULTURAL ADJUSTMENT ACT (AAA) OF 1933
1. The purpose of the Agricultural Adjustment Act (AAA) of 1933 was to raise farm prices by limiting agricultural production.
2. The AAA established a national system of crop controls and offered subsidies to farmers who agreed to limit the production of specific crops.
3. Although the AAA was based on sound economic principles, it seemed to defy common sense. Hungry Americans were outraged when farmers plowed crops under and destroyed millions of piglets.
D. THE NATIONAL INDUSTRIAL RECOVERY ACT (NRA)
1. The National Industrial Recovery Act (NRA) sought to combat the Great Depression by fostering government-business cooperation.
2. The NRA allowed businesses to regulate themselves through codes of fair competition.
3. The NRA did not succeed. In contrast, Social Security proved to be much more enduring.
E. THE CIVILIAN CONSERVATION CORPS
1. The CCC was created during the First Hundred Days of the New Deal.
2. It established a jobs program for unemployed youth.
F. THE SOCIAL SECURITY ACT OF 1935
1. The Social Security Act created a federal pension system funded by taxes on a worker's wages and by an equivalent contribution by employers.
2. The aging of the U.S. population is now widely seen as a threat to the long-term viability of the Social Security system.
G. THE WAGNER ACT OF 1935
1. The Wagner Act is also known as the National Labor Relations Act.
2. It is often called the Magna Carta of labor because it ensured workers' right to organize and bargain collectively.
3. It led to a dramatic increase in labor union membership.
H. THE NEW DEAL AND BLACK AMERICANS
1. New Deal programs helped Black Americans survive some of the worst hardships of the Great Depression.
2. The New Deal did not directly confront racial segregation and injustice. As a result, there was no major action on civil rights.
I. THE COURT-PACKING SCHEME
1. Much to FDR's chagrin, the Supreme Court declared key parts of the New Deal unconstitutional.
2. FDR responded by attempting to "pack" (add more justices to) the Supreme Court. His goal was to make sure that New Deal laws would be found constitutional.
J. IMPACT OF THE NEW DEAL
1. Historians generally regard the New Deal as a program of reform rather than of revolution because the New Deal sought to restructure American capitalism rather than replace it.
2. The New Deal did mark a new direction for the federal government. For example, New Deal programs all demonstrated a willingness to use the government to enhance social welfare.
3. The New Deal programs were partially successful in reducing unemployment and reviving the economy.
4. The New Deal led to the emergence of the Democratic Party as the majority party.
5. The New Deal helped African Americans survive the Great Depression. (Note: New Deal programs did not directly confront racial injustice.)
6. It is important to remember that the United States did not fully emerge from the Great Depression until the massive military expenditures prompted by World War II.
7. Key things that the New Deal did not do include the following:
• The New Deal did not integrate the armed forces.
• The New Deal did not sponsor the Equal Rights Amendment.
• The New Deal did not include programs specifically designed to protect the civil liberties of African Americans.
• The New Deal did not establish the Bureau of Indian Affairs.
• The New Deal did not nationalize basic industries.
• The New Deal did not provide for legal recognition of unions for migrant workers.
TEST TIP
It is very important to remember New Deal programs and accomplishments. It is equally important to know what programs and accomplishments were not part of the New Deal. APUSH test writers construct a number of questions asking you to identify programs that were not part of the New Deal. Be sure to carefully study the list of programs that were not part of the New Deal.
A. THE CIO AND JOHN L LEWIS
1. The CIO (Congress of Industrial Organizations) organized unskilled and semiskilled factory workers in basic manufacturing industries such as steel and automobiles.
2. Here is how John L. Lewis explained the goals and strategy of the CIO:
"The productive methods and facilities of modern industry have been completely transformed.... Skilled artisans make up only a small proportion of the workers. Obviously the bargaining strength of employees under these conditions no longer rests in organizations of skilled craftsmen. It is dependent upon a national union representing all employees—whether skilled or unskilled, or whether working by brain or brawn—in each basic industry."
B. THE SPLIT BETWEEN THE AFL AND THE CIO
1. The American Federation of Labor (AFL) split apart at its national convention in 1935.
2. A majority of AFL leaders refused to grant charters to new unions that were organized on an industry-wide basis.
3. The AFL favored the organization of workers according to their skills and trades.
4. The CIO favored the organization of all workers in a particular industry.
A. THE DEMOCRATIC COALITION
1. All of the following were part of the Democratic Coalition that elected FDR in 1936:
• White Southerners
• African Americans
• Ethnic minorities
• Union members
2. The Democratic Coalition did not include wealthy industrialists.
B. SHIFT IN VOTING
1. As a result of the Emancipation Proclamation and the Reconstruction amendments, African Americans were loyal voters for the Republican Party.
2. During the presidency of Franklin D. Roosevelt, large numbers of Black voters switched their allegiance from the Republican Party to the Democratic Party.
TEST TIP
Although the New Deal was popular, it did have a number of outspoken critics. For example, Dr. Francis E. Townsend, Gerald Smith, Huey Long, and Father Charles Coughlin all criticized aspects of the New Deal.
A. HOOVERVILLES
1. Millions of Americans were evicted from their homes and apartments because they could not pay their mortgage or rent.
2. Hoovervilles (shantytowns of unemployed and homeless people) sprang up in most American cities.
B. PEOPLE ON THE MOVE
1. During the 1930s, the Great Depression led to a mass migration of Americans looking for work.
2. African Americans continued to migrate from small Southern towns to urban centers in the North and West.