America: The Last Best Hope, Volume IIE, Chapter 5—FDR and the New Deal 1933-39 Chapter Overview Handout for Students Key Historical Points 1. Franklin Roosevelt and the new Democratic Congress responded to the crisis of the Great Depression with dramatic legislation during the "Hundred Days." The result was the New Deal. 2. New Deal measures addressed three components of the economic crisis: relief, recovery, and reform. 3. The United States restored diplomatic relations to the Soviet Union in 1933. 4. New Deal programs that provided jobs to the unemployed helped Americans maintain hope and a belief in the nation's capitalist system. 5. A "Dust Bowl" devastated the American farm belt during the 1930s. 6. Desperate times led to the rise of demagogues such as Huey Long and Father Charles Coughlin. 7. Despite the rise of dictatorships in Italy, Germany, and Japan that each sought to expand though violence, Americans were determined to remain out of future wars, as shown through the passing of the Neutrality Acts. 8. African-American athletes Jesse Owens and Joe Louis brought pride to all Americans by defeating German rivals and showing the fallacy of Hitler's racial theories. 9. FDR lost his attempt to check the power of the Supreme Court with his "court packing" plan, showing that Americans did not want to disrupt the delicate balance of power between our government's three branches. 10. As Germany became more aggressive during the 1930s, Britain and France attempted to appease him. Some Americans supported appeasement, but others were beginning to see his regime as a threat that would eventually need to be confronted. Timeline of Key Events 1933 Franklin Roosevelt inaugurated as President; Adolph Hitler comes to power in Germany; Prohibition ends; Roosevelt's 100 Days of legislation; Alphabet agencies begin (CCC, WPA, NRA, et al.); U.S. ends the gold standard 1934 Bruno Hauptmann arrested in the Lindbergh kidnapping case 1935 NRA is declared unconstitutional in Schechter Poultry Corporation V. United States; Huey Long is assassinated in Baton Rouge, Louisiana 1936 Remilitarization of the Rhineland by Germany; Berlin Olympic Games; Jesse Owens wins four gold medals; Spanish Civil War; Franklin Roosevelt re-elected for a second term 1937 Roosevelt attempts to stack the Supreme Court; Golden Gate Bridge is completed in San Francisco; Japanese occupy Manchuria; Amelia Earhart is lost somewhere in the Pacific; Hindenburg Disaster 1938 Munich Agreement cedes the Sudetenland to Germany; beginning of the policy of appeasement; Joe Louis defeats Max Schmeling for the heavy weight championship; Kristallnacht in Germany; Orson Wells' broadcast of War of the Worlds 1939 Poland is invaded; World War II begins in Europe Historical Questions 1. 2. 3. Giving examples of specific New Deal programs, explain how FDR’s administration provided relief, recovery, and reform for the stricken U.S. economy. What were the messages of Huey Long and Father Charles Coughlin and why did they achieve such a broad audience during the 1930s? Describe the actions taken by Adolf Hitler to dismantle the Versailles Treaty during the 1930s and the response of the democracies in Europe. Why did they respond in this way? Key People Adolf Hitler Alf Landon Amelia Earhart Benito Mussolini Bruno Hauptmann Charles Lindbergh Eleanor Roosevelt Father Charles Coughlin Franklin D. Roosevelt Gutzon Borglum Helene Mayer Huey Long Jesse Owens Joe Louis John Reed Joseph P. Kennedy King Edward VIII (Duke of Windsor) Marian Anderson Max Schmeling Neville Chamberlain Scottsboro Boys Will Rogers William Bullitt Winston Churchill Key Events Hindenburg disaster Hitler’s violations of the Versailles Treaty Kristallnacht (Night of Broken Glass) Louis-Schmeling Fights Historical Terms and Places New Deal Brain Trust First 100 Days Political "Left" and "Right" Alphabet soup agencies Bank run Bank Holiday Fireside chats Gold standard Greenbacks "rubber stamp" "coattails" "Blue Eagle" Kingfish Creation of Mount Rushmore Monument 1936 Election 1936 Olympics 1937 recession Rhineland Swastika Luftwaffe Führer Nazism "Black Cabinet" "Nine Old Men" FDR’s “Quarantine Speech” Trial of Bruno Hauptmann War of the Worlds broadcast "Court Packing Scheme" "Cliveden Set" Anschluss Gestapo Sudetenland "Peace in Our Time" Laws and Legislation National Industrial Recovery Act (NIRA) created the National Recovery Administration (NRA) and gave the president the power to regulate businesses by establishing codes of fair practice; declared unconstitutional by Supreme Court Civilian Conservation Corps provided work for young men ages 18-25 working in the nation's state and national parks and on other conservation and building projects Agricultural Adjustment Act another New Deal measure declared unconstitutional by the Supreme Court; it attempted to raise commodity prices by paying farmers to take acreage out of production and thus lower supply and increase demand Tennessee Valley Authority launched the largest array of public works projects the nation had ever seen Farm Credit Act measure offered government support to let farmers refinance their mortgages over a longer time period Home Owner's Loan Corporation helped over one million homeowners refinance their home loans for longer periods and at lower rates of interest, helping these struggling Americans keep their homes Federal Deposit Insurance Corporation designed to guarantee the deposits of Americans in private banks Social Security Act provided benefits for the unemployed and the disabled Wagner Act affirmed the right of workers to organize unions, bargain collectively and strike as a means to gain their demands; also set up the National Labor Relations Board (NLRB) to investigate charges of unfair labor practices Securities and Exchange Commission independent regulatory agency charged with enforcing federal laws preventing fraud and insuring honesty in the stock market Twenty-first Amendment overturned the Eighteenth Amendment and thus ended America's experiment with the prohibition Public Works Administration PWA had a budget of 3.3 billion dollars to be used to for large public works, such as dams, bridges, and highways Works Progress Administration employed millions of unemployed Americans in towns, cities, and rural communities; WPA workers largely completed public works projects such as roads, bridges, airports, and public buildings Neutrality Acts prohibited American businesses from selling war materials to nations at war and prevented Americans from traveling on ships belonging to belligerents Nuremberg Laws series of German laws in the mid-1930s that severely discriminated against that nation's Jews Munich Pact of 1938 Britain and France agreed to Hitler's demand that the Czechoslovakian region known as the Sudetenland be added to Germany Plessy v. Ferguson infamous Supreme Court decision from 1896 that justified segregation of facilities between black and white Americans as long as those facilities were "separate but equal." Schechter Poultry Corp. v. United States invalidated the National Industrial Recovery Act Five Themes of Geography Location Scottsboro (AL), Berlin, Mount Rushmore, San Francisco Place USSR, Louisiana, Austria, Czechoslovakia, Poland Human/Environment Interaction Impact of New Deal projects on Environment (CCC, WPA, TVA, dams) Movement Flight of the Hindenburg, flights of Amelia Earhart Region Black Hills, Rhineland, Sudetenland Key Economic Points 1. 2. 3. 4. 5. 6. 7. 8. The New Deal brought large regulation of American industry Despite dozens of new government work programs, unemployment remained high during the 1930s New Deal pro-labor practices meant wages and product prices remained higher than would be expected which kept both consumption low and unemployment high; a free market in recession (or depression) sees wages (and hence prices) drop until consumers begin to buy again—at that point recovery begins Some New Deal programs further developed America’s energy and transportation infrastructure Roosevelt policies to save banks (FDIC and increasing money supply) helped stabilize economy (at the same time other New Deal policies hampered its growth) Despite the 1930s terrible economic performance, the entertainment industry (movies, music, and radio) saw continued growth Counter-productive New Deal economic policies led to a “recession within a depression” in 1938 as unemployment quickly rose again The United States would not fully recover from the Great Depression until mobilization for World War II began in 1940-41
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