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

Heimler's History
4 Feb 202107:56
EducationalLearning
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TLDRThis video script delves into the Great Depression, a period of severe economic downturn that began with the stock market crash on Black Tuesday, October 29, 1929. It outlines the causes, including agricultural overproduction and high tariffs, which led to a surplus of unsellable goods, and speculative investment practices that inflated the stock market. The script discusses President Hoover's laissez-faire approach and the subsequent shift towards government intervention under President Franklin D. Roosevelt, who introduced the New Deal. The New Deal aimed to provide relief, recovery, and reform through various programs like the Public Works Administration, Tennessee Valley Authority, and the Civilian Conservation Corps. It also established regulatory bodies like the Federal Deposit Insurance Corporation and the Securities and Exchange Commission. The New Deal expanded the federal government's role, leading to a political realignment and long-term impact on American liberalism, despite facing criticism from both liberals and conservatives.

Takeaways
  • 📉 The Great Depression was triggered by the stock market crash on Black Tuesday, October 29, 1929, which was a culmination of weeks-long decline.
  • 🌾 Agricultural overproduction and high tariffs in the 1920s led to severe debt for farmers, contributing to the economic downturn.
  • 📈 The stock market was artificially inflated in the 1920s due to risky investment behaviors like buying on margin, which led to widespread debt when the market crashed.
  • 🏚️ The Depression resulted in widespread poverty, homelessness, and the creation of shantytowns, or Hoovervilles, named in criticism of President Hoover's economic policies.
  • 💡 President Hoover's laissez-faire approach was criticized, as he believed the economy would self-correct with minimal government intervention.
  • ⏳ Franklin D. Roosevelt's election in 1932 represented a shift towards heavy government intervention, with promises of significant economic reform.
  • 🔄 Roosevelt's New Deal aimed to address the 'three R's': relief for the unemployed, recovery for businesses, and reform of economic institutions.
  • 🛠️ The New Deal included programs like the PWA, TVA, and CCC, which provided jobs through public works and infrastructure projects.
  • 💼 The National Industrial Recovery Act (NIRA) of 1933 established codes to improve wages, working hours, and regulate certain product prices to foster economic recovery.
  • 🏦 The Glass-Steagall Act of 1933 increased banking regulation and led to the creation of the FDIC, insuring bank deposits and restoring confidence in the banking system.
  • 📊 The Securities and Exchange Commission (SEC) was established to regulate the stock market and prevent fraudulent activities like margin buying and insider trading.
  • 👴 The Social Security Act of 1935 provided a safety net for workers over 65, marking a significant expansion of the welfare state.
  • 🤝 The New Deal led to a political realignment, with groups such as Black people, the working class, and ethnic minorities aligning with the Democratic Party due to perceived support during the Depression.
  • 🏛️ The Supreme Court challenged parts of the New Deal as unconstitutional, leading to Roosevelt's controversial court-packing plan, which was ultimately not implemented.
Q & A

  • What is the significance of October 29, 1929, in the context of the Great Depression?

    -October 29, 1929, is known as Black Tuesday, the day when the stock market crashed, marking the beginning of the Great Depression.

  • What was the role of overproduction and high tariffs in the onset of the Great Depression?

    -Overproduction, particularly in agriculture, combined with high tariffs led to a surplus of goods that could not be sold on the global market, contributing to the economic downturn.

  • How did risky investment behavior contribute to the stock market crash of 1929?

    -Speculative buying on margin, where investors purchased stocks with borrowed money based on the assumption of rising prices, led to a bubble that burst, causing massive debt and loss when the market crashed.

  • What was President Hoover's approach to the early stages of the Great Depression?

    -President Hoover adopted a laissez-faire economic policy, believing that the economy would self-correct over time with minimal government intervention.

  • What was the main promise of Franklin D. Roosevelt's presidential campaign?

    -Roosevelt campaigned on the promise of heavy government intervention to address the suffering caused by the Great Depression.

  • What does the term 'limited welfare state' imply in the context of the New Deal?

    -A limited welfare state refers to a government that takes on the responsibility for the social and economic welfare of its citizens, which was a significant shift in policy during the 1930s under Roosevelt's New Deal.

  • What were the three main objectives of Roosevelt's New Deal?

    -The three main objectives of the New Deal were relief for the unemployed, recovery for businesses, and reform of economic institutions.

  • How did the Public Works Administration (PWA) contribute to the New Deal's relief efforts?

    -The PWA provided employment by engaging Americans in federal infrastructure projects such as building roads, dams, and bridges.

  • What was the purpose of the National Industrial Recovery Act (NIRA) of 1933?

    -The NIRA aimed to resolve economic hardship by establishing a set of codes that created security for workers through minimum wage levels, shorter working hours, and regulated prices of certain products.

  • What was the role of the Federal Deposit Insurance Corporation (FDIC) established by the Glass-Steagall Act of 1933?

    -The FDIC was created to restore confidence in the banking system by guaranteeing people's bank deposits with federal money.

  • What was the Social Security Act of 1935, and how did it function?

    -The Social Security Act of 1935 established a safety net of income for workers over the age of 65, where a portion of a worker's wages were withheld and later paid back upon retirement.

  • How did the New Deal impact the political alignment of certain groups in the United States?

    -The New Deal fostered a long-term political realignment of Black people, working-class individuals, and ethnic minorities towards the Democratic Party, as these groups felt that Roosevelt and the New Deal were aimed at alleviating their suffering during the Great Depression.

Outlines
00:00
📉 The Great Depression Overview

This paragraph introduces the topic of the Great Depression, its causes, and effects on the economy. It discusses the prosperity of the 1920s, the crash of the stock market on Black Tuesday, and the contributing factors such as agricultural overproduction, high tariffs, and risky investment behavior. It also touches on the impact of the Depression on Americans, including poverty, homelessness, and the criticism of President Hoover's economic policies.

05:02
🗽 Roosevelt's New Deal and Its Critiques

The second paragraph delves into Franklin D. Roosevelt's response to the Great Depression through the New Deal, which aimed to provide relief, recovery, and reform. It outlines key programs such as the Public Works Administration, the Tennessee Valley Authority, the Civilian Conservation Corps, the National Industrial Recovery Act, and the Glass-Steagall Act. Additionally, it discusses the establishment of the Federal Deposit Insurance Corporation and the Securities and Exchange Commission. The paragraph also covers the Social Security Act of 1935 and the political controversies surrounding the New Deal, including criticisms from both liberals and conservatives, the Supreme Court's rulings, and Roosevelt's proposed judicial reorganization bill.

Mindmap
Keywords
💡Great Depression
The Great Depression refers to a severe worldwide economic depression that took place during the 1930s. It is a central theme of the video, illustrating the economic crisis that led to widespread poverty and unemployment in the United States. The video discusses its causes, such as the stock market crash on Black Tuesday and the impact on American society.
💡Black Tuesday
Black Tuesday, also known as the stock market crash of 1929, is the day when the New York Stock Exchange collapsed on October 29, 1929. It is a pivotal event in the video, marking the beginning of the Great Depression. The crash symbolizes the culmination of risky investment behavior and the bursting of the speculative bubble that had inflated stock prices.
💡Overproduction
Overproduction is a situation where the supply of goods exceeds demand, leading to a fall in prices and potential economic downturn. In the context of the video, it is identified as a cause for the Great Depression, particularly in the agricultural sector, where farmers were in severe debt due to producing more than the market could absorb.
💡Tariffs
Tariffs are taxes on imported goods and services. The video explains that high tariffs in the 1920s, including the Hawley-Smoot Tariff of 1930, contributed to the Great Depression by making it difficult for the U.S. to sell its excess products on the global market, exacerbating the effects of overproduction.
💡Speculation
Speculation is the act of buying or selling a financial asset with the hope of profiting from price changes without regard to the asset's intrinsic value. In the video, it is mentioned as a risky investment behavior that led to the artificial inflation of the stock market in the 1920s, which eventually contributed to the 1929 crash.
💡Hoovervilles
Hoovervilles were shantytowns built by homeless individuals during the Great Depression. They are named after President Herbert Hoover as a form of criticism for his economic policies. The video uses Hoovervilles to illustrate the extent of poverty and homelessness during the Depression and the public's dissatisfaction with the government's response.
💡Laissez-faire economics
Laissez-faire economics is an economic system in which transactions between private parties are free from government intervention. President Hoover's belief in this approach is highlighted in the video as a reason for minimal government intervention during the early stages of the Great Depression, which is contrasted with Roosevelt's interventionist policies.
💡Franklin D. Roosevelt
Franklin D. Roosevelt, the 32nd President of the United States, is a key figure in the video due to his response to the Great Depression through the New Deal. His election in 1932 and subsequent policies marked a significant shift in American government's role in the economy and social welfare, which is central to the video's narrative.
💡New Deal
The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s. It aimed to provide relief for the unemployed, recovery for businesses, and reform of economic institutions. The video discusses the New Deal as a transformative set of policies that expanded the role of the federal government and addressed the economic and social issues caused by the Great Depression.
💡Glass-Steagall Act
The Glass-Steagall Act of 1933 was a piece of legislation passed as part of the New Deal to separate commercial and investment banking, thereby increasing regulation and restoring confidence in the banking system. The video explains its importance in the context of the New Deal's reform efforts, particularly in response to the widespread loss of confidence in banks following the stock market crash.
💡Securities and Exchange Commission (SEC)
The SEC is a regulatory agency established in 1934 as a response to the stock market crash and the need for greater regulation of the securities industry. The video mentions the SEC as a key component of the New Deal's reform efforts, designed to prevent fraudulent practices like buying on margin and insider trading, thereby restoring public trust in the stock market.
💡Social Security Act
The Social Security Act of 1935 is a cornerstone of the American social insurance system, providing a safety net for retired workers. The video discusses the Act as one of the most enduring programs established during the New Deal, which fundamentally changed the U.S. approach to social welfare by creating a system where a portion of workers' wages were withheld and later paid back upon retirement.
Highlights

The Great Depression began with the stock market crash on Black Tuesday, October 29, 1929.

Overproduction by farmers and high tariffs contributed to the economic downturn.

The Hawley-Smoot Tariff of 1930 further crippled the U.S. ability to sell excess products globally.

Speculative investment behavior, such as buying on margin, led to an artificial inflation of the stock market in the 1920s.

The stock market crash resulted in widespread poverty, homelessness, and the creation of Hoovervilles.

President Hoover's laissez-faire economic policies were criticized for their minimal government intervention.

Franklin D. Roosevelt's New Deal aimed to address unemployment and social upheavals through government intervention.

The New Deal focused on the three R's: relief, recovery, and reform.

Works programs like the PWA, TVA, and CCC were established to provide employment and infrastructure development.

The National Industrial Recovery Act of 1933 aimed to stabilize the economy by establishing fair labor standards and industry codes.

The Glass-Steagall Act of 1933 increased bank regulation and established the FDIC to insure deposits.

The Securities and Exchange Commission (SEC) was created to regulate the stock market and prevent fraudulent practices.

The Social Security Act of 1935 provided a safety net for workers over 65 through a system of wage withholding and retirement benefits.

The New Deal expanded the role of the federal government and modern American liberalism.

The New Deal faced criticism from both liberals, who felt it wasn't liberal enough, and conservatives, who saw it as federal overreach.

Roosevelt's attempt to expand the Supreme Court, known as the court packing scheme, was met with bipartisan opposition and failed to pass.

The New Deal left a lasting legacy of reforms, regulatory agencies, and a political realignment towards the Democratic Party for certain groups.

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Great DepressionEconomic CrisisHerbert HooverFranklin D. RooseveltNew DealHoovervillesStock Market CrashPWATVACCCNIRAGlass-Steagall ActFDICSECSocial Security ActWelfare StateLiberalismJudicial ReorganizationSupreme CourtPolitical RealignmentAP U.S. History