Unit 8 Chapter 11
Great Depression & New Deal
Skeleton Notes
List Five (5) causes of the Great Depression in the United States
 Business Cycles – Boom and Bust
o Bad times are called Depressions
 Overproduction
 Speculation
o Buying on Margin
 Unstable Banking
 Tariffs limited Foreign Trade
The Great Depression
 The New York Stock Market Crash
o Black Thursday & Black Tuesday
 From Wall Street to Main Street
o Compounding Problems
 Stock Market-Default Loans-Can‘t pay rent-Banks Closed - People
lost personal savings
 Everyday people
o John Steinbeck
o Dorothea Lange
 The Dust Bowl
o 1930’s Farmers
 John Steinbeck’s The Grapes of Wrath – Oakies
 The Mexican Repatriation Act of Mexican Americans
Herbert Hoover’s Rugged Individualism
 Maintained Laissez-Faire
 The Volunteer Effort should fix depression
 Believe that buyers would eventually buy when prices dropped – never did!
 Hoover will respond
o Hoover Dam
o Too little to late
o Hoovervilles
Franklin Roosevelt & New Deal
 The Notion Government and Economy are separated = Not with New Deal
 How did FDR try to help with the Great Depression
o Brain Trust
o Fireside Chats
o Eleanor Roosevelt
o Frances Perkins
 FDR’s First 100 Days
o The Three R’s
o Blank Check by Congress
 Relief – short term actions designed to tide people over unit the
economy recovered
 Banking Crisis
o Bank Holiday
 Relief of Homeowners and Farmers
 Relief for Unemployed
 Legislation during New Deal
o PWA, FERA, CCC, WPA
 Recovery – measures to restore economy and stimulate spending
 Priming the Pump
 National Recovery Administration
 AAA – Agricultural Adjustment Acts
 Reform – Changings made so that Depression would never happen
again. Government protection to the people
 FDIC, TVA, SEC
 Social Security Act
 NLRA or Wagner Act -Growth of UNIONS
 Reactions to the New Deal
o Liberty League
o Francis Townsend
o Huey Long, Father Coughlin, Unconstitutional Agencies like NIRA & AAA
o Schechter Poultry v. United States -Government power
o Roosevelt’s Court Packing Scheme (1937)
 Impact of result of New Deal
o Reactions
o Government’s Roles
o Taxes