Overview
This lecture reviews the causes and impacts of the Great Depression, Hoover's response, the Dust Bowl, and key elements and criticisms of FDR’s New Deal.
Causes and Impact of the Great Depression
- The Great Depression (1929-1933) began with the stock market crash on Black Tuesday (Oct 29, 1929).
- Massive unemployment led to widespread poverty and the creation of hoovervilles (shantytowns) and long soup lines.
- The foreclosure crisis forced many families from homes and farms.
- A large income gap between rich and poor worsened economic struggles.
- Bank runs and panics caused many banks to fail, erasing people's savings.
Social Effects and Responses
- Soup lines provided free meals to hungry, unemployed Americans.
- Hoovervilles, hobos, and Okies symbolize homelessness, displacement, and migration due to the Dust Bowl and economic hardship.
- The Bonus Army, WWI veterans, protested in Washington for early payment but were forcibly removed.
Hoover's Policies and Their Effects
- President Hoover promoted limited government intervention, believing the economy would self-correct.
- The Hawley-Smoot Tariff raised taxes on imports but hurt global trade and deepened the Depression.
- The RFC (Reconstruction Finance Corporation) loaned money to businesses, hoping for "trickle-down" effects, but did little for ordinary people.
The Dust Bowl
- The Dust Bowl (1930s) was a severe drought and dust storm disaster in the Great Plains, devastating farms and forcing migration.
The New Deal and FDR’s Leadership
- FDR’s New Deal focused on three R’s: Relief (immediate aid), Recovery (economic growth), and Reform (prevent future crises).
- The First 100 Days saw rapid passage of laws to address the crisis.
- Key programs: FDIC (bank deposit insurance), CCC (job creation for young men), WPA (public works jobs), Social Security Act (welfare for elderly, unemployed, and needy families).
Criticisms and Legacy of the New Deal
- Some argued the New Deal gave too much government power (Supreme Court rulings, court-packing controversy).
- Others felt it didn’t go far enough to help the poor (criticisms from Dr. Townsend, Huey Long).
- FDR’s landslide 1936 reelection showed public support for New Deal policies.
- The New Deal did not end the Depression, but established new government responsibilities and social safety nets.
Key Terms & Definitions
- Black Tuesday — October 29, 1929, the day the stock market crashed.
- Hoovervilles — Shantytowns for the homeless named after President Hoover.
- RFC — Reconstruction Finance Corporation, a government agency that loaned money to businesses.
- Dust Bowl — 1930s drought and dust storms that devastated the Great Plains.
- Bonus Army — WWI veterans who protested in DC for early payment.
- FDIC — Federal Deposit Insurance Corporation; insures bank deposits.
- CCC — Civilian Conservation Corps; provided jobs in conservation projects.
- WPA — Works Progress Administration; created jobs in public works.
- Social Security Act — 1935 law establishing welfare programs for vulnerable groups.
Action Items / Next Steps
- Review the three R’s and major New Deal programs.
- Understand criticisms of the New Deal from both sides.
- Prepare for questions on Hoover’s response versus FDR’s.