CHAPTER 25:   CRASH, DEPRESSION, AND NEW DEAL

ISSUES TO UNDERSTAND

After reading the chapter, you should be able to discuss the following:

1. Cause of the stock market crash and the depression that followed
2. President Hoover’s response to the depression, and why he acted as he did
3.  Who was hurt by the depression and how those depression victims protested
4.  Candidates, issues, and outcome of the election of 1932
5.  What is meant by the New Deal and which groups and individuals helped to shape it
6.  The programs and laws passed during the Hundred Days; what they accomplished and what they failed
     to do
7.  How nature and the workings of the Agricultural Adjustment Act hurt the rural poor
8.  The unusual outcome of the 1934 congressional elections and what that outcome signified
9.  What the Second New Deal was and why Roosevelt launched it in 1935
10. The groups that were helped by Second New Deal programs and how they were helped; which groups
     opposed the legislation and why
11. What is meant by Keynesian economics and whether Roosevelt followed Keynes' theories
12. The groups that made up the Democratic coalition and produced FDR's 1936 victory, and why those
      groups voted Democratic
13. The New Deal's conservation record
14. Why and how Roosevelt tried to reform the Supreme Court; why Congress rejected his "court-packing
     plan"
15. Causes of the Roosevelt recession
16. What brought about the end of the New Deal
17. The lasting effects of the New Deal on American society
 

VOCABULARY

The following terms are used in Chapter 25. To understand the chapter fully, it is important that you know what each of them means.

buying stock on margin purchasing stock partly with one's own money and partly with money borrowed from a bank or broker specifically for the purpose of buying the stock
gross national product the market value of the nation's total output of goods and services
foreclosure the legal action by which a bank repossesses the house or farm of a borrower for failure to keep up regular payments on the mortgage
ideology the doctrines believed byan individual or a group, often influencing their political and social actions
dark-horse candidate a little-known or unlikely political figure who unexpectedly wins nomination
pump-priming government spending (often to the point of creating a budget deficit) for the purpose of stimulating the economy
demagogue an unprincipled political leader; one who leads people by playing on their prejudices, passions, and fears
deficit spending government expenditure in excess of its tax receipts and other revenues
collective bargaining negotiation between employers and union representatives concerning wages, hours, and conditions of work
anti-Semitic prejudiced against or intolerant of Jewish people
archetypal possessing the original or usual pattern or model characteristics of a particular group
panacea a remedy for all ills; a cure-all
 
 
 

Chapter 25

IDENTIFICATIONS
 
 

After reading Chapter 25, you should be able to identify and explain the significance of each of the following:

Reconstruction Finance Corporation
Bonus marchers
Brain trust
Frances Perkins
Harold Ickes and the Public Works Administration
The Hundred Days
Civilian Conservation Corps
Federal Deposit Insurance Corporation
Federal Emergency Relief Act
Harry Hopkins
Tennessee Valley Authority
Agricultural Adjustment Act
National Recovery Administration and Section 7a
Federal Securities Act and the Securities and Exchange Commission
Southern Tenant Farmers' Union
dust bowls and "Okies"
"fireside chats"
Second New Deal
Charles E. Coughlin, Francis E. Townsend, and Huey Long
Works Progress Administration
National Youth Administration
John Maynard Keynes and Keynesian economics
Resettlement and Farm Security administrations
National Labor Relations (Wagner) Act
Social Security Act
Revenue Act of 1935 ("Soak the Rich" Law)

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