Download - USA 1930s AFL & Revision Booklet 2
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The USA in the 1930s
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Depression and the New Deal, the USA, 1929-1941
6. Depression and the New Deal: The USA, 19291941
Key issue: How serious
were the effects of the
Depression on themerican people?
The effects of the Wall Street Crash: the collapse of businessand industry; unemployment and its effects
The attempts of Hoover's government to deal with thedepression; economic failure
The unpopularity of Hoover and the election of Roosevelt.
Key issue: How did
oosevelt deal with the
Depression?
Roosevelt's fireside chats; banking crisis; New Deal helpingfarmers, unemployed, home owners, workers, depressed areas
The main Alphabet Agencies: AAA, FERA, CWA, PWA,WPA, CCC and TVA
Helping industry: the NRA
The HOLC and the Social Security Act.
Key issue: How far was
the New Deal
successful in ending
the Depression in the
USA?
The effectiveness of the New Deal in achieving its aims; itslimitations; the Second New Deal
Criticisms and opposition to the New Deal from the SupremeCourt and some politicians
The impact of the Second World War on American economic
recovery, 19391941: increase in US exports; policy of Lend-Lease; effects within USA.
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EFFECTS OF THE GREAT DEPRESSION
The Wall Street Crash of 1929 marked the start of the great depression which hit America
first and then the rest of the world during the 1930s. The Cycle of Prosperity turned into aSpiral of Depression as consumer spending fell by almost half and companies found itdifficult to sell their products. By 1932 the entire banking system was close to collapse. Thehighest cost of all was the human misery and despair. People had suffered the depression forover two years with no sign of improvement. Unemployment had risen to over 12 millionand there was widespread poverty and homelessness. President Hoover believed in Rugged
Individualism and that the government should not interfere. He was determined to balancethe budget and refused to spend government money to help the unemployed. Hoover believedin rugged individualism, which meant that people should look after themselves He thoughtthings would improve if people worked hard and that thegovernment should not interfere.Many Americans thought Hoover did not care and that he would do nothing to improve
things. This lack of action led to people blaming him for their problems.
There was no Social Security (Welfare) or unemployment pay in America at this time.The unemployed often went hungry. The only way they could get money was to borrowfrom friends or relatives. They were forced to buy cheap food, scavenge or beg for food.In some of the worst hit areas people were starving to death on the streets.
Unemployed people often had to rely on charity handouts and soup kitchens run byorganizations like the Salvation Army. Many unemployed people lost their homes as theycouldnt afford to keep up the payment on their rent or mortgages. Unemployment brokeup families and many men left home to look for work and ended up as hobos.
Hoovervilles were camps set up by the unemployed and homeless families on wasteground. People lived in tents or shelters made of waste materials. There were no watersupplies or toilets and the camps were usually built close to a river. The people who livedin Hoovervilles would go into the city to look for work, beg or go to soup kitchens.
Life was no better in farming areas. Farm prices fell by 70% and thousands of farmerswere made homeless when they could not pay their mortgages. Mechanization meantthere were fewer jobs available in farming states. Intensive farming of the prairies,drought and high winds destroyed the soil and turned the land into a dustbowl.
In 1931 ex-soldiers or veterans marched to Washington to petition the government to pay
out wartime bonuses early. Hoover used the regular army against them. His treatment ofthe Bonus Army seemed to show that Hoover did not care about the unemployed.
The use of terms such as Hoovervilles were designed to turn people against Hoover andhis policies. Hoover did provide finance for the Hoover dam and other public works butthis was very small scale and did little to improve the situation.
By the election of 1932 people had lost faith in Hoover and no longer trusted what he said.Many Americans believed Hoover would do nothing for them despite his claims thatrecovery was just around the corner when they could see no sign of improvement.
The Democrat Presidential candidate F.D.Roosevelt offered the voters a New Deal. Hepromised to take action to end the depression and by using government money and powerto help people suffering from the effects of the Depression. Roosevelt or FDR won!
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REVISION NOTES: EFFECTS OF THE GREAT DEPRESSION
QUESTION ANSWER NOTES
Why was there aneconomic depressionin America in the1930s?
How was theAmerican economyaffected by thedepression?
How did PresidentHoover deal withAmericas economicproblems?
Why was life hardfor the unemployedin America?
What wereHoovervilles?
Why did Rooseveltwin the election of1932 by a largemajority?
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CARD SORT TABLE: EFFECTS OF THE DEPRESSION
Economic
Social
Political
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Key Words
Veterans demand earlypayment of their bonuses
13 million unemployedpeople by 1932
Homeless people are forcedto build huts out of rubbish
1616 banks closed down by1932
Farmers attack judges andbailiffs
20,000 Companies hadgone bankrupt by 1932
1 million people becomehomeless
Evicted farmers head outwest to California alongroute 66
Spiral of Depression
Hoover uses the army toevict the Bonus Army
Hoovers government doesnot take action to end thedepression
1 in 20 farmers areevicted
People lose their savingswhen the banks close down
Salvation Army set upsoup kitchens
Farmers were unable to selltheir surplus food
Homeless people nicknametheir shantytowns Hoovervilles
Farmers organise strikes 23,000 people commitsuicide
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COMPARE & CONTRAST HH & FDR
HH believed in rugged individualism because .
FDR believed in the forgotten man because
HOOVER ROOSEVELT
Key Words & Concepts
Republican Democrat Laissez Faire Government Action
Rich University Degree Orphan Poor Background
Born in the USA Self-Made Millionaire Rugged Individualism
Forgotten Man Privileged Background History / Law Degree
Mining Engineer Polio Disabled New Deal
1928 1933 1933 1945 Increase taxes Lower taxes
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ROOSEVELT AND THE NEW DEAL
FDR believed that the government should take action and action now and use its powers toreduce unemployment and promote economic recovery by kick starting the Cycle of
Prosperity. He believed that only government action could give the American economy theboost it needed through relief, recovery and reform that would help the unemployed andhomeless, whilst making sure that something similar never happened again. In the short term,the government would tax and borrow to pay for public works and relief for the poor.Roosevelts first step was to try to restore confidence in the banking system. The EmergencyBanking Act closed all banks and only those approved by the government were allowed toreopen. In the first hundred days of his administration Roosevelts New Deal quickly tookshape. The most important aspects of the New Deal were the alphabet agencies whichwere set up to deal with specific problems -
TVA: The Tennessee Valley Authority provided work building dams, canals and powerstations. The TVA covered seven states and helped an entire region to recover.
CCC:Civilian Conservation Corps provided temporary relief/ jobs for unmarried menaged 16-25 on conservation projects such as tree planting, flood prevention, road building.
HOLC:Home Owners Loan Corporation bought mortgages from banks and offeredhomeowners long-term repayments, this prevented millions of people losing their homes.
PWA: Public Works Administration -. built schools, hospitals, roads and other publicbuildings, this provided employment reliefmainly for skilled workers.
CWA:Civil Works Administration 1933-34, provided reliefor jobs for over 4 million
men building roads, playgrounds, sports fields etc (later became the WPA) NRA: National Recovery Administration set standards and improved working
conditions in industry Blue Eagle Badge scheme for companies which met governmentstandards. This was rather like a kite mark showing that they had met minimumstandards ofhealth and safety as well as paid their workers the minimum wage.
AAA: Agricultural Adjustment Administration reduced farm surpluses and guaranteedprices by paying farmers to destroy 30% of their crops and grow less. For example, 6million baby pigs were killed and their meat was canned and given to the unemployed.
WPA:Works Progress Administration - created 3 million jobs building schools, roads,
post offices. These jobs put the unemployed to work using a method known as workfare.This was more expensive that welfare but it helped to get the unemployed to do sociallyuseful work that helped to develop their skills. By 1941 the WPA had spent $11 billion.
Wagner Actreformed and gave new rights to employees and labour unions.
SSA: Social Security Act provided old age pensions and later unemployment benefit in asimilar way to our National Insurance. (Relief and Reform)
Once a weekFDR would go on the radio and explain to the American people what he haddone that week to help end the depression. These radio broadcasts came to be known asThe Fire Side Chats and were important in helping to restore confidence. The first oneexplained how the Emergency Banking Act would restore the banking system.
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ROOSEVELT AND THE NEW DEAL
QUESTION ANSWER NOTES
What were the aimsof the New Deal?
How did Rooseveltrestore confidence inthe banking system?
Which of the NewDeal measures wereintended to providereliefby tacklingpoverty andhomelessness?
How did the NewDeal try to reduceunemployment andhelp recovery?
What did the NewDeal do to help
agricultural areasand provide relief,recovery and
reform?
How did the NewDeal try to promotethe recovery andreform of American
industry?
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HOW SUCCESSFUL WAS THE NEW DEAL?There has been much debate about whether the New Deal was a success. At the timeRoosevelts policies attracted a lot ofopposition and criticism.The Republicans thought theNew Deal was too costly and a waste of tax payersmoney. Huey Long and his supportersthought the New Deal did not do enough for the poor and wanted higher taxes on the richand a massive redistribution of wealth. Father Coughlin opposed the New Deal and wantedthe USA to adopt a fascist type government. Some people opposed the New Deal becausethey believed it threatened the Constitution. The Republican dominated Supreme Courtdeclared parts of the New Deal (AAA and NIRA) unconstitutional. Business leadersopposed government interference and the new rights given to workers and unions. BlackAmericans complained that the New Deal did not do enough to end discrimination. Therewere 15 million unemployed when Roosevelt became President in 1932, by 1939 there werestill around 10 million. Many historians believe this shows that the New Deal did not end thedepression. However, it gave people confidence and hope that things could get better.
The Emergency Banking Act made the financial system more open and honest and helpedrestore confidence.
Agencies such as the Home Owners Loan Corporation provided immediate help forpeople who were facing homelessness.
The Agricultural Adjustment Act reduced production in order to end overproduction,increased prices and provided subsidies to farmers. It was replaced during the SecondNew Deal by the Soil Conservation Act after the Supreme Court declared it illegal.
The Tennessee Valley crossed several states and the regions problems were too big for
any one state to deal with. The TVA built dams to stop the flooding in winter and thedroughts in the summer. The cheap hydroelectricity these dams produced attracted newindustries to the area, improved transport and helped farmers. These people could then usetheir new found prosperity to buy the electrical goods mass produced in the cities thishelping to reverse the Spiral of Depression by kick starting the Cycle of Prosperity.
During the Second New Deal, a national welfare system was established to provide socialsecurity (unemployment benefit) and pensions.
Industry was helped by the National Recovery Administration through the Blue Eaglescheme. Trade Union power increased and workers were given improved rights and
minimum wages were introduced. Without the New Dealunemployment would have been worse. It provided temporary
work for millions of unemployed. The public works, roads, dams, schools, airports andports, helped the USA become a Superpower during the Second World War.
The New Deal had faults and failures but it avoided helped to preserve freedom anddemocracy during the depression. Roosevelt was elected President three times and thisdemonstrated huge popular support for the new Deal
When the USA went to war in 1942, conscription greatly reduced unemployment. Themilitary forces of America and her allies provided massive orders for American
businesses. By 1944 unemployment was replaced by labour shortages and large numbersof women had to enter the workforce.
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HOW SUCCESSFUL WAS THE NEW DEAL?
QUESTION ANSWER NOTES
Why was thereopposition to theNew Deal?
What were the mainfailings of the NewDeal?
What were the mainsuccesses of the NewDeal?
Did the New Dealhave any long-termbenefits?
How did theminimum wage
introduced by theNRA help recovery?
Did the New Deallead to economicrecovery inAmerica?
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COMPARE & CONTRAST FIRST & SECOND NEW DEALS
The main differences between the First and Second New Deal were
FIRST SECOND
Key Words & Concepts
Emergency Relief Emergency Banking Act Social Security Act
Restore Confidence 1933 1936 Wagner Act AAA
WPA NRA Sick Chickens Case Soil Conservation Act
TVA PWA CCC Workfare Welfare CWA
Boondoggling Hundred Days Second World War Old Age Pensions
Unemployment Benefit Pump Priming Help the unemployed
Relief
Recovery
Reform
Reverse the
Spiral of
Depression
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How successful was the New Deal?
Successful Unsuccessful
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How successful was the New Deal?
Successful Unsuccessful
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The USA in the 1930sExamples of the types of questions you will be asked on Unit 2
Section B (AQA Modern World History)
Total for this question: 20 marks
Depression and the New Deal: The USA, 1929-1941
Study Source A and then answer both parts of Question which follow.
Source A The Consequences of the Great Depression in the USAThe photograph shows unemployed people in New York queuing for food onChristmas Day, 1931.
a) Using Source A and your knowledge, describe the main effects of the WallStreet Crash on the people of the USA.
(8 marks)
(b) The New Deal led to the economic recovery of the USA in the 1930s.Do you agree? Explain your answer.
(12 marks)
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Total for this question: 20 marks
Depression and the New Deal: The USA, 1929-1941
Study Source A and then answer both parts of Question which follow.
Source A shows work on a PWA construction site in Washington D.C. in 1933
a) Using Source A and your own knowledge, describe the ways in which the New
Deal tried to bring relief to those in need.(8 marks)
b) The Second World War was more successful than the New Deal in ending theDepression.
Do you agree? Explain your answer.(12 marks)
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The USA in the 1930s
Total for this question: 20 marks
Depression and the New Deal: The USA, 1929-1941
Study Source A and then answer both parts of Question which follow.
Source A is a photograph of unemployed Americans seeking work during the Depression inthe 1930s
a) Using Source A and your own knowledge, describe the human effects of the GreatDepression in America in the 1930s.
(8 marks)
b) The New Deal was a failure. Do you agree? Explain your answer.(12 marks)
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Generic Mark Scheme for Unit 2 Section B Questions
A Describe question (8 marks)
You will be given a source as a prompt. It will probably be a picture.
Write about the content of the picture. Give a general answer to the question. Write in detail about TWO aspects of the question.
Mark Scheme Marks
Writes nothing of relevance 0
Level 1 Describes some relevant facts from the source
OR
Offers a simple description/narrative that lacks
details
1-2
Level 2 Describes a number of aspects but lacks details
OR
Describes one aspect in detail including lots of facts
3-5
Level 3 Writes a detailed account of two or more aspects 6-8
An Analysis and explanation question. (12 marks)
You will be given a statement, you must say whether you agree or disagree withthe statement.
Give all the facts, arguments and explanations that support the statement. Give all the facts, arguments and explanations that oppose the statement.
Weigh up the two sides of the argument and come to your own conclusion.
Mark Scheme Marks
Writes nothing of relevance 0
Level 1 Describes the topic
OR
Makes general comments with little factual detail or
explanation
1-3
Level 2 Argues for OR against the proposition gives a
number of facts to support case but little
explanationOR
Argues for OR against the proposition gives one
reason but it is detailed and offers an explanation.
4-6
Level 3 Argues for and / or against the proposition, is
detailed and fully explained 7-10
Level 4 Examines the arguments for and against the
proposition and puts forward a reasoned
conclusion/judgement.
11-12