Open Book Test

I Intro (Leave Blank for Now)

The Great Depression plunged the American people into an economic crisis unlike any endured in this country before or since. The worst and longest downturn in our economic history threw  millions of hardworking individuals into poverty, and for more than a decade neither the free market nor the federal government was able to restore prosperity.

II Causes (The Causes of the Great Depression were: Over Speculation,Government Policy, and Unstable Economy

A. Over Speculation (Define... How It's Important):

• The assumption that property values would rise.
• In a sour economy, people loose their money and are unable to pay their loans and they loose money on their investments.

B. Government Policy:

• The general principles by which a government is guided in its management of public affairs, or the legislature in its measures. A general term used to describe all contracts of insurance.
• The execution of framework under which governmental and non-governmental organizations work to resolve one or more social, economic or political issues of a society. 

C. Unstable Economy:

        1. Uneven Prosperity:

• Not all people in the 20s were "roaring"; African Americans, farmers, and immigrants all faced some difficult times.
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        2. Overproduction:

• Overproduction of products; wheat.

• Farmers lost money due to too much produce and not enough consumers.

        3. Worker Issues / Farm Issues:

• Overproduction of crops, especially wheat.
• Dust Bowl destroyed many crops, forcing farmers to relocate.

III Effects

A. Poverty

• The state of being extremely poor.

B. Society

• As poverty levels worsened, crime rates increased; people were in need for essentials and the only way to receive them was by stealing.
• Suicide rates increased due to the rising poverty levels. People became deeply depressed because they felt that they had nothing during the depression time.

C. World: Changes in Quarters

• United States: Depression began in 1929-3, recovery began in 1933-2.
• Germany: Depression began in 1928-1,recovery began in 1932-3.
• Japan: Depression began in 1930-1, recovery began in 1932-3.
• Poland: Depression began in 1929-1, recovery began in 1933-2.

IV Solutions

A. Hoover

        1. Volunteerism

• The use or involvement of volunteer labor.

         2. Public Works

• The work of building such things as roads, schools, and reservoirs, carried out by the government for the community.

        3. Hawley Smoot

•  Law enacted in June 1930 which caused an increase in import duties by as much as 50%. The Smoot-Hawley Tariff Act goal was to increase U.S. farmer protection against agricultural imports.

        4. RFC

• Reconstruction Finance Corporation
• An independent agency of the United States government, established and chartered by the US Congress in 1932, Act of January 22, 1932, c. 8, 47 Stat. 5, during the administration of President Herbert Hoover.  

B. Roosevelt

        1. New Deal

a. Alphabet Soup

            -Example:HOLC (Home Owner's Loan Corporation)- to help homeowners pay their       mortgages.

            -Example:FCA (Farm Credit ADministration)- to begin helping farmers refinance their mortgages.

            -Example:CCC (Civilian Conservation Corps)- combination of Roosevelt's love for nature and commitment to conservation with the need to help the unemployed. 

            -Example:SEC (Securities and Exchange Commission)- to regulate the stock market and prevent fraud. 

b. Criticsim?

-Predictably, Roosevelt’s New Deal came under attack from the right, from Republicans, conservative Democrats, bankers, and Wall Street financiers who claimed that it doled out too many federal handouts. 

         2. 2nd New Deal

a. Franklin Delano Roosevelt -  32nd U.S. president; reelected in 1936; brought Second New Deal programs and policy through Congress

b. The second New Deal was the legislation that Roosevelt and Congress passed between 1935 and 1938.

c. The Second New Deal legislation relied more heavily on the Keynesian style of deficit spending than the First New Deal did.

V Criticism

A. Political Criticism (Ex. Came from both the Republicans and the Democrats)

-Predictably, Roosevelt’s New Deal came under attack from the right, from Republicans, conservative Democrats, bankers, and Wall Street financiers who claimed that it doled out too many federal handouts. 

B. Conservatives

• Critics began to feared the idea of the evolving programs and policies because they believed they would lead America towards socialism and destruction.

C. Liberals (Ex: Critizised the New Deal also, they....)

Ex: Soviet agents in the United States went so far as to launch a “popular front” campaign to actively support the president.

Ex: Moreover, an unprecedented number of people joined the American Communist Party during the decade.

VI Effectiveness

A. Changes in US

• Roosevelt altered his polices in order to assist the American need for federal relief assistance.
• Job and bank problems decreased.
• Public Trust became more visible to the government.

B.Unions

• The court-packing scheme took a severe toll on Roosevelt's popularity and marked the beginning of the end of the New Deal.

C. Culture 

• Marriages were delayed as many males waited until they could provide for a family before proposing to a prospective spouse. Divorce rates dropped steadily in the 1930s.
• More and more Americans learned about birth control to avoid the added expenses of unexpected children.
• Mass Migration reshaped the American mosaic.

VII Conclusion

 Programs to mend the nation-its finances, resources, and people-were put in place.  As the despair of the Great Depression finally wained, the American people, once again, faced an exceptional challenge-WWII.