USA DEPTH STUDY – 1930s

PAST-PAPER ABC QUESTIONS 

Part A

In what ways did the Wall Street Crash affect the American economy?

• ‘The stock market crash produced an economic disaster.’
• ‘Share prices continued to fall for three years.’
• ‘Businesses and banks went bust.’
• ‘Over 11 000 banks stopped trading.’
• ‘The economy had to adjust to a reduction in trade.’
• ‘Businesses cut production.’
• ‘Wages reduced and unemployment increased.’
• ‘There was less money in the economy.’
• ‘People could not afford to buy goods.’
• ‘Business confidence collapsed.’
• ‘Any thought of business expansion had to be abandoned.’
• ‘By 1933, the economy was producing only 20% of what it had in 1929.’
• ‘Tax revenue increased.’

In what ways did Roosevelt help American industry during the First Hundred Days of his Presidency? 

• ‘Roosevelt introduced the Emergency Banking Act.’
• ‘Roosevelt helped to resuscitate industrial production.’
• ‘Roosevelt set up the Public Works Administration Act (PWA) to help industry.’
• ‘Roosevelt introduced the National Industry Recovery Act (NIRA).’
• ‘Roosevelt set up the National Recovery Administration (NRA) to help industry.’
• ‘New public works projects generated orders for building materials.’
• ‘The NRA aimed to increase the prices of factory goods to help factory owners make more profit.’
• ‘The PWA ensured building industries had plenty of work so they could make money again.’
• ‘Government money was used for projects to generate work for industries.’

What happened to the Bonus Marchers in 1932? 

• ‘They did not receive their war pensions.’
• ‘Hoover refused to meet the marchers.’
• ‘Hoover ordered the police to remove the Bonus Army from their camp.’
• ‘Hoover instructed MacArthur to treat the veterans with respect.’
• ‘MacArthur used cavalry, tanks, tear gas and infantry with fixed bayonets.’
• ‘Two veterans died.’
• ‘A thousand veterans were injured.’
• ‘Their camp was burned.’

What were the consequences of the Wall Street Crash for individual investors? 

• ‘Investors lost their money.’
• ‘Banks called in loans.’
• ‘Investors were unable to pay back their loans.’
• ‘Investors’ shares were worthless.’
• ‘Investors lost all their savings.’
• ‘Investors went bankrupt.’
• ‘Investors could not pay their mortgages.’
• ‘Investors with small businesses were ruined.’
• ‘Investors lost confidence in the American economy.’
• ‘If investors bought shares on the margin they could not pay back money to the bank.’

In what ways did farmers benefit from the work of the Tennessee Valley Authority? 

• ‘Measures were introduced to improve the soil so it could be farmed again.’
• ‘Dams helped to irrigate the land.’
• ‘Dams on the Tennessee River controlled flooding.’
• ‘Farmers had cheap electricity.’
• ‘Trees were planted to improve the soil.’
• ‘Water transport helped with the transportation of produce.’
• ‘The standard of living for farmers improved.

What did the Social Security Act of 1935 provide? 

• ‘It provided a national insurance scheme.’
• ‘It provided old age pensions.’
• ‘It provided pensions for widows.’
• ‘It provided unemployment benefit.’
• ‘It provided help for the sick.’
• ‘It provided help for the disabled.’
• ‘It gave money to public health to investigate disease.’

In what ways was Hoover’s credibility damaged by the Bonus Marchers? 

• ‘The Bonus Marchers were ex-First World War servicemen who had been promised a bonus payment of $500.’
• ‘This was not payable until 1945.’
• ‘25 000 destitute veterans marched on Washington in 1932 to claim their bonus.’
• ‘They gathered in camps around the city.’
• ‘Hoover refused to meet them and considered them as a revolutionary threat.’
• ‘Congress voted against paying the bonus early but the veterans remained.’
• ‘Hoover decided the veterans had to be evicted.’
• ‘He asked General MacArthur and the Army to clear the camps.’
• ‘Tanks, machine guns and tear gas were used and the tents and shelters were burnt.’
• ‘Two veterans were killed and nearly a thousand were injured.’
• ‘Hoover failed to keep control of MacArthur’s actions.’
• ‘Hoover publicly thanked God that the USA still knew how to deal with a mob.’
• ‘The Bonus Army was defeated but Hoover became even more unpopular.’

What benefits did the Tennessee Valley Authority (TVA) bring to the region? 

• ‘The building of hydroelectric dams helped to control the Tennessee River.’
• ‘Flood prevention schemes were introduced.’
• ‘Measures were taken to improve soil quality in the region.’
• ‘Forests were planted.’
• ‘The dams made it possible to irrigate dried out land.’
• ‘Power stations provided cheap electricity.’
• ‘New industries were attracted by cheap electricity.’
• ‘A new waterway linked major river systems.’
• ‘The new waterway gave easy access to the area.’
• ‘New industries were attracted by good transport systems.’
• ‘The TVA created thousands of jobs.’

Describe President Hoover’s reaction to the Bonus Marchers. 

• ‘He was not sympathetic to the Bonus Marchers’ demands.’
• ‘Hoover refused to meet the marchers.’
• ‘He considered the Bonus Army a revolutionary threat.’
• ‘He pointed out that Congress had recently voted against issuing the bonds early.’
• ‘He ordered the police to remove the Bonus Army from their camp.’
• ‘Hoover ordered the Army to evict the Bonus Army from Washington.’
• ‘Hoover put General Douglas MacArthur in charge of the operation.’
• ‘Hoover instructed MacArthur to treat the veterans with respect.’
• ‘Hoover told MacArthur to stop the assault on the Bonus Marchers.’
• ‘Hoover did not give the Bonus Marchers their war pensions.’

What were Roosevelt’s ‘Hundred Days’? 

• ‘This was the first phase of the New Deal.’
• ‘It was from March to June 1933.’
• ‘During this time, Roosevelt worked with his advisers, called the ‘Brains Trust’.’
• ‘They produced a wide range of sweeping measures to tackle the impact of the Depression.’
• ‘Roosevelt wanted to help farmers, the unemployed and the desperate poor.’
• ‘The main feature was the creation of the alphabet agencies.’
• ‘This included the CCC to provide voluntary employment for young men.’
• ‘The PWA provided jobs in major construction projects.’
• ‘The AAA paid farmers to take part of their land out of cultivation.’
• ‘The FERA assisted those in desperate need.’
• ‘It was a time when Roosevelt reformed the banking system.’
• ‘Every Sunday, Roosevelt broadcast on the radio in his ‘fireside chats’ to explain the New Deal.’

Describe how President Hoover reacted to the US economic crash. 

•  ‘Hoover considered it a normal business downturn.’
•  ‘His strategy was to sit it out until prosperity returned.’
•  ‘Hoover was against the federal government providing welfare support.’
•  ‘He believed in self-help and rugged individualism.’
•  ‘Hoover’s policies were considered too little and too late.’
•  ‘He cut taxes in 1930 to increase purchasing power.’
•  ‘He increased tariffs to protect American produced food and goods.’
•  ‘Hoover provided finance for a building programme.’
•  ‘Hoover’s most famous project was the Hoover Dam on the Colorado River.’
•  ‘Employers were encouraged to maintain wages.’
•  ‘Hoover set up the Reconstruction Finance Corporation to provide loans to businesses.’
•  ‘The Federal Farm Board was set up to buy surplus produce to stabilise prices.’ 

Describe life in a ‘Hooverville’

• ‘Residents searched for scrap metal and cardboard to reinforce their homes.’
• ‘They would search for employment in the nearby town or city.’
• ‘Some would resort to begging in the town.’
• ‘They waited for the charity organisations to bring food and clothing.’
• ‘They were dependent on soup kitchens and scavenging rubbish dumps for scraps of food.’
• ‘They were dependent on local government relief schemes.’ 

Describe the work of the Civilian Conservation Corps (CCC). 

•  ‘It was aimed at unemployed young men.’
• ‘It provided unskilled manual labour jobs.’
• ‘They could sign on for 6 months but this could be extended.’
• ‘They were provided with shelter, clothing and food.’
• ‘They were paid $30 a month but $25 had to be sent to their families.’
• ‘Most of the work was done on environmental projects in national parks.’
• ‘They planted millions of trees.’
• ‘They built a network of service buildings and roadways in remote areas.’
• ‘They made structural improvements to bridges.’
• ‘They built fire look-out towers.’
• ‘They worked on flood control by ditching and channel work.’
• ‘They set up camping and picnic areas for the public.’ 

In what ways did Roosevelt help farmers? 

•  ‘Roosevelt set up the Agricultural Adjustment Administration.’
• ‘Farmers were paid to take part of their land out of cultivation.’
• ‘Millions of acres of sown land were ploughed up.’
• ‘Livestock numbers were reduced including the slaughtering of six million piglets. This had

the effect of forcing prices gradually upwards.’

• ‘The AAA helped farmers modernise their farms.’
• ‘The AAA suggested methods which would conserve and protect the soil.’
• ‘In cases of extreme hardship, farmers could receive help with their mortgages.’
• ‘Farmers received electricity and the means to irrigate their land.’
• ‘Smallholders and tenant farmers were moved to better quality land.’
• ‘Special loans were given to small farmers to help them buy land.’ 

Describe Father Coughlin’s opposition to the New Deal

•  ‘He thought Roosevelt was failing to tackle the problems of the poor.’
• ‘He used the radio on a Sunday to broadcast his ideas.’
• ‘He had an enormous national audience of around 40 million Americans.’
• ‘He founded the National Union for Social Justice.’
• ‘This had, at its height, membership of 7 million.’ 

Describe the buying of shares on the stock market before the Crash. 

•  ‘Speculation, a form of gambling, was used.’
• ‘Americans bought shares on the stock market to make a profit.’
• ‘As more shares were bought, share prices kept rising.’
• ‘People bought shares on credit.’
• ‘Speculators did not intend to keep their shares for long.’
• ‘They bought shares with the sole purpose of selling them to someone else at a higher price.’
• ‘Speculators did not even have to pay the full value of the shares. They could buy ‘on the margin’.’
• ‘They did this by putting down 10% of the cash needed to buy shares and borrowed the rest.’
• ‘It was risky buying on the margin as the money could be lent by a bank using securities such as the speculator’s house as collateral.’ 

What was the role of the National Recovery Administration within the New Deal? 

•  ‘Its role was to bring industry, labour and government together.’
• ‘To create codes of fair practice.’
• ‘To reduce destructive competition.’
• ‘To help workers by setting minimum wages and maximum weekly hours.’
• ‘To set minimum prices at which products could be sold.’
• ‘To outlaw child labour.’ 

What did Roosevelt do to help industry in his first hundred days in office? 

•  ‘Roosevelt set up the NRA (National Recovery Administration).’
•  ‘Codes were drawn up for each industry to fix prices for goods.’
•  ‘The NRA aimed to help the factory owners make more profit.’
•  ‘Businesses that signed up were allowed to display the NRA Blue Eagle badge. The
• American public were encouraged to buy goods from members of the scheme.’ 
•  ‘Industry was given a boost through the formation of the PWA (Public Works Administration).’
•  ‘The construction industry was given government money to build facilities such as schools, hospitals and airports.’
•  ‘Roosevelt ordered all the banks to close until they had been checked over.’ 

In what ways was industry helped by the New Deal? 

• ‘The New Deal created huge infrastructure projects, each requiring materials such as steel and concrete. Such industries saw growth and employment.’
• ‘The Golden Gate Bridge in San Francisco and the Hoover Dam are examples of huge projects requiring massive amounts of materials.’
• ‘The National Industrial Recovery Act set up The National Recovery Administration which tried to do away with the evils of child labour, long hours and low pay.’
• ‘Those employers who agreed to fair wages and conditions in an employment code were allowed to display the NRA’s logo of a blue eagle.’
• ‘The NIRA also set up the Public Works Administration to create labour in building schools, hospitals, town halls, roads and bridges.’
• ‘The NIRA gave the right to workers to collective bargaining of wages. This was an enormous boost to trade unions, but also helped industry negotiate with one appropriate body.’ 

What was ‘buying on the margin’ in relation to the Stock Market?

•  ‘It was part of speculating on the Stock Market.’
• ‘Speculators did not intend to keep the shares for long.’
• ‘They borrowed money to buy shares and then sold them at a profit.’
• ‘They paid off the loan and still made a quick profit.’
• ‘‘Buying on the margin’ meant they only put down 10% of the cash needed to buy the shares.’
• ‘The speculator could borrow the rest.’
• ‘American banks made large loans so people could ‘buy on the margin’.’ 

Describe how the Agricultural Adjustment Administration (AAA) benefited farmers. 

•  ‘It made sure that prices for agricultural produce did not fall.’
• ‘It compensated farmers for their lost production.’
• ‘Cotton farmers were instructed to plough their crop back into the ground to stop prices falling.’
• ‘The government bought millions of piglets for slaughtering to keep prices up.’
• ‘It reached agreements with farmers to reduce future production to stop prices getting too low.’
• ‘It paid farmers to take part of their land out of cultivation and reduce their livestock.’
• ‘As a result of its actions, prices rose and farmers’ income doubled in the 1930s.’ 

Describe the social consequences of the Wall Street Crash. 

• ‘Many people were unemployed.’
• ‘Many had to queue for food at soup kitchens.’
• ‘Some were admitted to hospital suffering from malnutrition.’
• ‘People who borrowed money to speculate went bankrupt.’
• ‘Life savings were lost as banks failed.’
• ‘Banks called in loans which affected peoples’ lives.’
• ‘As a result, people lost their homes.’
• ‘Many farmers lost their farms.’
• ‘Some had to sleep rough as they had lost their homes.’
• ‘The homeless built shanty towns called ‘Hoovervilles’.’
• ‘These were built on the edge of towns and cities.’
• ‘There was no welfare state to support those in need.’
• ‘The unemployed relied on charity.’
• ‘A few committed suicide.’ 

What measures did Roosevelt introduce to deal with the problems facing American banks? 

• ‘He introduced the Emergency Banking Act.’
• ‘The Act forced banks to stay closed for four days/short time.’
• ‘The banks whose finances were considered hopeless were permanently closed.’
• ‘The remaining banks were promised government grants.’
• ‘It was thought this action would gain public confidence.’
• ‘These banks re-opened after four days.’
• ‘Roosevelt broadcast to the public reassuring them that the banks were now safe and viable.’
• ‘He encouraged them to deposit money in these banks.’ 

Describe how American banks were affected by the Wall Street Crash. 

• ‘Many banks failed and people did not trust them.’
• ‘Many thought that banks were no longer safe.’
• ‘People began to withdraw their savings.’
• ‘People began to put their money in safe deposit boxes or stored their money at home rather than trust a bank.’
• ‘In 1929, over 650 banks failed, with over 1300 going in 1930 and nearly 2300 in 1931.’
• ‘The biggest bank failure was the Bank of the United States in New York which had over 400000 depositors. It went bankrupt in December 1930.’
• ‘The Wall Street Crash also affected European banks which had a knock-on effect in the USA. This led to panic and money being withdrawn further.’ 

What were the consequences of the Wall Street Crash for the American people? 

• ‘People who had borrowed to speculate were bankrupt.’
• ‘Many people were unemployed.’
• ‘Life savings were lost as banks failed.’
• ‘Many farmers lost their farms.’
• ‘Some had to sleep rough or in Hoovervilles.’
• ‘Many had to queue for food.’
• ‘Many suffered from malnutrition and starvation.’
• ‘People committed suicide.’ 

What were the benefits of Roosevelt’s ‘fireside chats’?

• ‘They helped gain the trust of the American people.’
• ‘It gave the Americans confidence in their President.’
• ‘Roosevelt was able to explain his actions.’
• ‘They helped people to believe that their problems would be resolved.’
• ‘They made people feel that the whole nation was united in facing the nation’s problems.’
• ‘They kept the American people informed about the actions of the government.’ 

Part B 

Why did Roosevelt introduce the Second New Deal? 

 ‘Roosevelt introduced the Second New Deal because he realised that the poor needed more help. In rural areas farm labourers, sharecroppers and tenant farmers were struggling. Many had lost their land or their jobs because of the AAA which had reduced production and the amount of land farmed. As part of the Second New Deal, the FSA gave loans to sharecroppers and tenant farmers so they could buy their own land, and also set up labour camps to give migrant farm workers better living conditions.’ 

• ‘Many ordinary people still faced immense problems.’
• ‘Unemployment was still very high.’
• ‘The rural poor had not been helped by the First New Deal.’
• ‘There were still many workers being paid very low wages.’
• ‘Poor workers needed the protection of unions.’
• ‘Companies were using violence to stop strikes.’
• ‘It was introduced to make it easier for workers to join unions and so improve their wages and conditions.’
• ‘There were many old, unemployed and sick people suffering badly.’
• ‘Tenant farmers and share croppers had been forced off their land.’
• ‘Agricultural labourers had lost their jobs.’
• ‘Critics like Huey Long had said that the New Deal was not helping the very poor.’
• ‘The Supreme Court was challenging parts of the New Deal.’
• ‘There was a presidential election in 1936.’ 

Widespread criticism that not enough was being done by the New Deal to help the poor 

• Huey Long (Gov. of Louisiana) proposed ‘Share Our Wealth’ scheme
• Father Coughlin had over 40 million listeners on his radio show 
• The fact that so many people agreed with these left-wing critics showed Roosevelt that something had to be done to gain public support 

1936 Presidential election

• Roosevelt running for 2nd term as President 
• Needed to start campaigning to garner public support 
• 2nd New Deal his proposal to improve social reform and infrastructure – gain votes 

Supreme Court challenging parts of the New Deal 

• NIRA deemed unconstitutional in 1935 
• AAA unconstitutional in 1936 
• Roosevelt needed more agencies to replace those that had been struck down 

Why were speculators blamed for the Wall Street Crash?

‘Speculators had little interest in the company in which they were buying shares. Speculators were gamblers and they had no intention of keeping the shares for long. They often borrowed the money to buy some shares and sold the shares as soon as the price had risen. They paid off their loan and still made a quick profit to show for it.’ 

• ‘Speculators only wanted to make money out of buying shares.’
• ‘They had little interest in the long-term success of a company.’
• ‘Speculators could buy “on the margin”.’
• ‘Speculators borrowed huge sums from the banks.’
• ‘Many speculators were amateur investors in the stock market.’
• ‘Many speculators quickly lost their nerve in 1929.’

Speculators bought shares ‘on the margin’

• Only paid 10-20% of the shares and borrowed money from banks to pay the rest with their assets as collateral 
• More money was put into shares, increasing their value exponentially 
• Shares became overvalued – at one point, people feared that the prices of shares would not increase any further and started to sell them. Led to panic-selling and the dramatic fall in share prices, causing the stock market to crash 

Speculators were amateur investors in the stock market 

• Very few of them had sound knowledge about the economy / how to invest wisely 
• Merely bought shares in the hopes that share prices would rise and they could sell them for profit – not concerned about the long-term success of a company 
• Over-speculation ensued, inflating the prices of shares 
• Panic-selling caused share prices to drop, leading to the crash 

Speculators borrowed huge sums of money from banks 

• Would only foot about 10-20% of the share price with their own money, the rest was borrowed from banks 
• Banks loaned so much money to speculators that they lost money when share prices fell 
• Banks did not have money to support the recovery of shares when their prices dropped
• If these financial institutions could not support the stock market, it was doomed to crash

Why did the Tennessee Valley Authority become a showcase for the New Deal? 

‘The Tennessee Valley Authority (TVA) became a showcase for the New Deal because it introduced projects for the revival of agriculture in a very depressed region cutting through seven states. The Tennessee Valley had been badly affected by both flooding and soil erosion. The farming land had become a dust bowl. 33 dams were built to control the Tennessee River and to help irrigate the dry land, new forests were planted and measures taken to improve the quality of the soil. Agriculture could thrive again in the region.’ 

• ‘The TVA created thousands of jobs.’
• ‘The TVA provided cheap electricity.’
• ‘The TVA built dams to prevent flooding.’
• ‘The TVA made irrigation possible.’
• ‘The TVA improved the land.’
• ‘The TVA improved waterways in the area.’
• ‘The TVA planted forests.’
• ‘New industries were attracted to the area.’

Provided cheap and clean electricity 

• Hydroelectric stations built generated electricity that was cheap and clean
• Households could use electricity to perform daily tasks eg. washing with washing machines
• Farmers could operate machinery, boosting agricultural industry

Built dams 

• Prevented flooding 
• Made irrigation possible 
• Helped agriculture 

Planted forests 

• Prevented more soil loss from Dust Bowl 
• Clean air 

Created thousands of jobs 

• Employment for jobless young men
• Earn money to provide for families 

New industries attracted to area 

• Manufacturing 
• Provided jobs 
• Boosted economy 

Why were agricultural areas affected badly by the Depression? 

• ‘It cost more to take an animal to market than a farmer could sell it for.’
• ‘Exports fell as other countries were also hit by the Depression.’
• ‘American tariffs affected international trade, including agricultural produce.’
• ‘Farmers faced eviction.’

Dust Bowl

• Unsustainable farming practices in 1920s killed crops that held soil together, wind blowing away fertile soil 
• Soil no longer healthy to grow crops 
• Farmers lost livelihoods 

Overproduction in 1920s 

• European farmers recovered from WWI so surplus crops could not be sold to Europe 
• Demand for American crops fell, so did prices 
• Farm prices sank and farmers did not earn enough money to repay loans they had taken out to buy machinery / afford rent + other essentials 

American tariffs caused international trade to decline 

• 1930 Hawley-Smoot tariffs tried to encourage sale of US crops 
• Other countries retaliate and placed their own taxes on US crops 
• International trade fell and demand for US crops declined even more 

Other countries affected by Depression

• Did not have enough money to buy US produce 
• Demand fell, prices fell

Why was Roosevelt able to gain support during the presidential election campaign of 1932? 

• ‘Roosevelt promised a new deal.’
• ‘Roosevelt was a good public speaker.’
• ‘Roosevelt travelled around the country talking to people about the problems they were facing.’
• ‘Roosevelt promised to end prohibition.’
• ‘Roosevelt inspired confidence.’
• ‘The American people believed that Roosevelt cared about them.’
• ‘Roosevelt had a reputation for helping people in need.’
• ‘People thought Hoover didn’t care about them.’

Roosevelt was ‘man of the people’

• Genuine in his promises 
• Travelled around the country to more than 20 states and talked to the people, understanding their plight (did this despite his polio!)
• Made him seem sincere and boosted popularity

Promised to end Prohibition

• Legalising sale of alcohol could open jobs 
• People could become involved in alcohol trade and earn money to support families and get out of Depression

Proposed a New Deal

• One of Roosevelt’s campaigns to end Depression by setting up agencies helping various sectors of society 
• Vague and unclear but gave people a glimmer of hope that change was coming 
• People became more confident that their lives would improve – boosted Roosevelt’s popularity 

Hoover lacked compassion

• Bonus Marchers incident – instead of meeting with veterans Hoover ordered Gen. MacArthur to clear camp by force 
• Many injured and some died 
• Americans thought Hoover did not have any respect for those who had served their country
• Blow to Hoover’s reputation 

Why was Roosevelt unable to deal effectively with the Supreme Court’s opposition to the New Deal?

• ‘Some of Roosevelt’s policies were viewed as being unconstitutional.’
• ‘The Supreme Court had the ultimate power to block any measures passed by Roosevelt.’
• ‘Most of the Supreme Court judges were Republican.’
• ‘Roosevelt’s plan to pack the Supreme Court was unpopular.’
• ‘When he tried to deal with their opposition, Roosevelt looked like a dictator.’ 

Some of the Alphabet Agencies were struck down as unconstitutional 

• NIRA (1935) and AAA (1936)
• Hindered progress and work of New Deal agencies 

Majority of Supreme Court judges were Republican

• FDR was a Democrat 
• Conflicting ideologies caused rifts 
• Supreme Court did not like how much government interference there was and how much money was spent unnecessarily on the agencies 

Roosevelt looked like a dictator when he tried to deal with SC’s opposition 

• Roosevelt’s court-packing plan involved appointing up to 6 additional justices for every Supreme Court judge older than 70 
• This was seen as a political ploy to change the court for rulings in FDR’s favour 
• Many criticised him of being dictatorial and controlling 

Why did Roosevelt’s ‘Hundred Days’ have the effect of restoring confidence? 

• ‘Roosevelt’s ‘fireside chats’ explained what he was doing with legislation to solve the existing problems.’
• ‘He explained that he was producing a wide range of sweeping measures to tackle the impact of the Depression.’
• ‘He stabilised the banking system.’
• ‘Each of the ‘alphabet agencies’ were set up to tackle a specific problem.’
• ‘He set up organisations, such as the PWA, to create employment.’
• ‘He set up the CCC to carry out conservation work.’
• ‘Roosevelt helped farmers receive rewarding prices for their produce.’
• ‘Roosevelt helped the poor with emergency relief funds.’

Fireside chats explained what he was doing with legislation to solve existing problems

• Radio show to talk directly to his people and reach out to them, assuring them that action was being taken to pull the country out of its depression 
• Go through his proposals for what he was going to do to tackle the issues in society 
• Allowed Americans to stay up to date to the upcoming changes to legislation 
• Gave Americans confidence that action was being taken to improve their lives 

Stabilised banking system

• Set up 4 day banking holiday to close all banks and reopen trusted ones 
• Emergency Banking Act insured people’s deposits in banks and ensured the banking system was secure 
• Gave people confidence that the banking system was sound – encouraged them to save their money in banks again

Tackled unemployment 

• CCC employed 3 million jobless young men, teaching them skills in forestry, flood control and fire prevention
• CWA – short-term scheme to provide as many jobs as possible – benefitted more than 1 million people 

Improved working rights and workplace conditions 

• NIRA gave trade unions the legal right to bargain with their employers
• NRA set up codes of practices in workplaces, imposed minimum wage and maximum working hours, outlawed child labour 

Helped farmers

• AAA killed farm animals to raise crop prices 
• Paid farmers to limit amount of crops grown so farm prices could increase 
• Gave farmers money to pay mortgage 
• Helped farmers mechanise farms 
• TVA built hydroelectric stations to provide clean water and electricity + introduced irrigation 

Why did the Wall Street stock market crash have serious consequences for the American economy? 

 ‘After the first series of business and banking failures, the whole economy had to adjust to a reduction in trade and demand for American goods. Businesses had to reduce their operations by sacking workers and reducing the wages of those who remained. It became a vicious cycle as these actions took even more money out of the economy and further reduced the demand for goods.

• ‘The crash in share prices caused a lack in confidence.’
• ‘Many Americans were forced into bankruptcy.’
• ‘There were many bank closures.’
• ‘There was a fall in demand for goods at home.’
• ‘Other countries cut back on buying American goods.’
• ‘Businesses cut back production.’
• ‘This created unemployment.’

Why was the Wall Street Crash harmful to the American economy? 

• ‘Businesses and banks went bust.’
• ‘11 000 banks stopped trading.’
• ‘The economy had to adjust to a general reduction in trade.’
• ‘There was a reduction in demand for American goods at home and abroad.’
• ‘Businesses had to reduce their operations by cutting production.’
• ‘Workers were sacked or had their wages reduced.’
• ‘Less money in the economy meant that people could not afford to buy goods.’
• ‘Business confidence collapsed.’
• ‘Any thought of business expansion had to be abandoned.’
• ‘By 1933, the economy was producing only 20% of what it had in 1929.’

Businesses cut back production, some were bankrupt and forced to shut 

• People lost money as the value of their shares dropped 
• Bought fewer goods, could not contribute to economy 
• Demand for goods fell and companies earned less income
• Could not earn enough to cover production costs and went bankrupt  

Other countries affected by GD 

• America stopped importing goods from overseas 
• Overseas markets shrank eg. Japanese silk 
• America was huge consumer so the loss of such an important buyer affected economies of other countries 
• Other countries did not have enough money to buy American goods, reducing demand for US goods even further 

Banks closed 

• Lack of financial institutions to sustain growth of economy 
• Played a huge part in investment of firms – now that banks were unable to do so, companies could not expand and lost money

Crash in share prices caused lack of consumer confidence 

• People less willing to invest in companies 
• Did not have the money to buy shares 
• Loss of consumer confidence made many companies and industries suffer 

Americans forced into bankruptcy 

• Share prices fell and people lost money
• Unable to pay back loans they had taken out to buy shares so banks had to liquidate their assets 
• Americans lost everything and were unable to support the economy
• Stagnated growth of economy 

Unemployment rose 

• Workforce not supported 

Why was there conflict between President Roosevelt and the Supreme Court? 

 ‘During the 1930s most of the judges in the Supreme Court were old, conservative and Republican. The Supreme Court had to decide if measures passed by the President and Congress were consistent with the Constitution, and they declared that the NRA and the AAA were both unconstitutional. Roosevelt felt they were trying to undermine his attempts to solve America’s problems, and that their actions were based solely on a political dislike of the New Deal.’  

• ‘The Supreme Court was conservative in nature.’
• ‘The Supreme Court thought parts of the New Deal were unconstitutional.’
• ‘The Supreme Court believed the New Deal was undermining the American Constitution.’
• ‘Roosevelt was determined the Supreme Court would not stop his reforms.’
• ‘Roosevelt wanted to appoint judges sympathetic to his policies.’
• ‘Roosevelt was accused of acting like a dictator.’
• ‘Roosevelt was accused of trying to overthrow the Constitution.’

Most Supreme Court judges were Republican

• Roosevelt was a Democrat 
• Conflicting ideologies caused rifts 
• Roosevelt wanted to set up more agencies to fix problems in society but Republican judges had a conservative attitude; thought that government was interfering too much 

Supreme Court thought sections of ND were unconstitutional 

• Sick Chicken Case: Schechter Poultry Group accused of selling sick chickens and breaking AAA code. Was fined but the group appealed to the SC, which overruled the AAA’s decision. Said that AAA had no right to interfere in state affairs and charges against Schecter were dropped 
• Prompted the SC to deem AAA unconstitutional (1936)
• NIRA also unconstitutional – trade unions given too much power 

Roosevelt tried to pack the Supreme Court 

• Court-packing plan would involve appointing up to 6 new justices for every SC judge 70 years and above 
• Roosevelt accused of being a dictator 
• Ploy to ensure that all his policies were supported 

Why was Roosevelt successful in dealing with the banks? 

• ‘Roosevelt ordered a four day national bank holiday.’
• ‘At the same time, he passed the Emergency Banking Act through Congress.’
• ‘Unsound banks were not allowed to re-open.’
• ‘The remainder were given government grants and advice.’
• ‘A set of rules and regulations to stop reckless lending were imposed on the banks.’
• ‘He explained to the public what he was doing in his ‘fireside chats’.’
• ‘Roosevelt managed to restore public confidence in banks.’
• ‘He persuaded people to return their money to the re-opened banks.’

Emergency Banking Act 

• Insured people’s deposits in banks 
• Revised banking system
• People regained trust in banks and starting depositing their money in banks 
• Financial institutions gradually contributed to the economy again 

4-day Banking Holiday 

• All banks were shut and only those deemed trustworthy were reopened 
• People regained confidence in the banking system 

Explained to the people what he was doing with banks in his fireside chats 

• First fireside chat focussed on the changes in legislation to improve the banking system
• Directly told his people the changes that would be made 
• Allowed people to gain confidence and hope that change was coming and the revised banking system would be reliable 

Why was President Hoover’s personal reputation damaged by events relating to the Bonus Marchers?

• ‘It was a peaceful protest opposite the White House.’
•  ‘Hoover considered it a threat to government institutions.’
•  ‘Hoover called on the army to clear the site.’
•  ‘The camp was destroyed with the use of tanks, machine guns and tear gas.’
•  ‘Two veterans were killed.’
•  ‘A thousand veterans were injured.’
•  ‘It made Hoover seem heartless and ruthless.’
•  ‘Hoover had set the army on army veterans.’ 

Why did Hoover’s dealings with the Bonus Marchers damage his attempt to be reelected President in 1932?

•  ‘Hoover appeared heartless.’
• ‘He took action against former US soldiers.’
• ‘The action was very violent.’
• ‘He overreacted.’
• ‘Hoover would not admit he had failed to control MacArthur.’
• ‘He considered the veterans a mob.’ 

Bonus Marchers staged peaceful protest outside White House

• Merely campaigning to get their Veteran’s Bonus early because they were desperate for the money 
• Did not use any force or violent means to get what they wanted
• The fact that Hoover was unwilling to listen to the wants of the peaceful protestors and even used force against them showed his ruthlessness

Hoover called on US army to clear the camp 

• General MacArthur cleared the camp with tanks, machine guns and tear gas 
• A thousand were injured and 2 were killed 
• Showed that Hoover had no respect for veterans who had served bravely for their country

Showed that he had no compassion

• His people were suffering and he hardly did anything about their plight 
• Unwilling to listen to their problems (these people had suffered for 3 years)
• Not willing to enact change to help his people 

Why was there a Second New Deal in 1935? 

 ‘Roosevelt was concerned that progress was slow in overcoming unemployment and needed more immediate measures, such as the WPA. The Second New Deal was introduced, however, to produce a fairer and more caring society and these measures were more long term. This meant legislation such as the Social Security Act, which provided old age pensions and unemployment benefits based on an insurance scheme funded by taxes levied on workers and employers.’ 

• ‘Progress was slower than in Europe.’
• ‘Roosevelt came under heavy criticism.’
• ‘Huey Long suggested he could do much more.’
• ‘Roosevelt wanted a fairer society.’
• ‘Unemployment was stubbornly high.’
• ‘He needed to do more for poor farmers.’

Critics argued that the First New Deal did not do enough for the poor

• Huey Long, Father Coughlin and Francis Townsend 

Presidential election 1936 

• Campaign to gain support and votes 

Some policies in 1st ND deemed unconstitutional 

• NIRA, AAA → needed to replace these policies

Unemployment still extremely high 

• WPA set up to give 2 million people jobs per year 

Why was it important for Roosevelt to deal with the banks in 1933? 

• ‘The banking system was close to collapse.’
• ‘Customers were panicking and withdrawing their savings. This meant further bank closures were likely.’
• ‘The economy needed banks to loan to business.’
• ‘People needed a safe haven for their finances.’
• ‘Roosevelt needed to weed out ‘unsafe’ banks.’
• ‘It was to restore confidence.

Restore people’s confidence in banks 

• People lost faith in banks when they went bankrupt and could not return the people their money 
• Emergency Banking Act and 4-day banking holiday reopened trusted banks 
• People now had confidence that the banking system was more secure and started to deposit their savings again

Customers panicking and withdrawing savings – further bank closures very likely 

• Losing their money when share prices dropped 
• Banks did not have enough money to return all the deposits to their customers
• More and more banks going bankrupt which could not continue 
• Something had to be done to revise the banking system so that banks would not close 

Trusted banks had to be reopened to support economy 

• Thousands of banks went bankrupt 
• Could not contribute to stock market so economy even weaker 

Why did Republicans criticise the New Deal?

•  ‘The Republicans believed in minimal government intervention in the running of businesses.’
• ‘The New Deal appeared to undermine core American values.’
• ‘The Republicans claimed that Roosevelt had become too powerful.’
• ‘The Republicans believed in low taxation.’
• ‘There were many unnecessary jobs.’
• ‘People got money for doing nothing.’ 

Why did Huey Long oppose the New Deal?

 ‘Long supported the New Deal at first but by 1934 he was criticising it for not doing enough. He put forward a scheme called ‘Share Our Wealth’ which proposed the things he wanted to see which the New Deal was not doing. He wanted to reduce personal fortunes to a maximum of $3 million and a maximum annual income of $1 million. For the over sixties, he proposed a pension and a free washing machine and radio.’ 

•  ‘He thought the New Deal did not go far enough.’
• ‘He thought the New Deal was too complicated.’
• ‘He wanted to run for the presidency.’
• ‘Long wanted greater wealth redistribution.’
• ‘He wanted to tax more heavily the large corporations.’
• ‘He wanted tax revenues to be shared out equally among all Americans.’
• ‘He wanted the rich and the banks to pay more.’
• ‘Long wanted a maximum income per year.’
• ‘Long wanted pensions for the over 60s.’
• ‘He wanted ethnic minorities to be treated equally.’ 

Wanted to challenge Roosevelt’s presidency 

• By criticising ND and saying that its policies were insufficient, he would make people lose trust in Roosevelt and want to vote for him instead 
• By proposing his own policies that he deemed better than the ND he gained support from people 

Thought ND did not do enough for the poor 

• Cited high unemployment rate even after 1st ND implemented 
• Some people still living in poverty and not enjoying the benefits of the 1st ND 
• Wanted greater wealth redistribution 

Thought that ethnic minorities were still mistreated 

• Many still faced racial discrimination
• Not many enjoyed benefits of ND and were still living in poverty 
• Wanted equal rights 

Why were Roosevelt’s radio broadcasts important? 

•  ‘The radio broadcasts were important to restore the nation’s confidence.’
•  ‘The radio broadcasts made the American people feel Roosevelt cared about them.’
•  ‘They were important because they educated the American public.’
•  ‘They were important because Roosevelt told the nation about his plans for the future.’
•  ‘They were important because Roosevelt appealed to Americans to work with him.’
•  ‘Roosevelt wanted to gain the trust of the American people.’
•  ‘The broadcasts encouraged people to support the New Deal.’ 

Encouraged Americans to support New Deal

• By outlining the policies and work of the New Deal people became more aware of the change that was to come 
• Americans could understand the changes that were being made and feel that their lives were going to be improved 

Boosted popularity and reputation 

• The fact that Roosevelt took initiative to talk to his people directly cemented his personable and sincere qualities 
• People felt that he genuinely cared for them and was committed to improving their lives / enacting positive and lasting change 
• More people supported him for his actions and policies 

Restore confidence in the nation

• First fireside chat about 4-day banking holiday and Emergency Banking Act 
• Assured people that the banking system was to be revised such that only reliable banks were reopened
• Went through the changes made to legislation such that it was less likely for banks to fail and go bankrupt 
• Convince Americans that the work of his administration would be effective 

Why was the New Deal unsuccessful in solving the problem of unemployment? 

•  ‘It failed to provide permanent jobs.’
• ‘It did not help farmers enough.’
• ‘It did not help Black Americans.’
• ‘At its peak, there were 12 million unemployed.’ 

Failed to provide permanent jobs 

• CWA only designed as a short-term scheme to get people into employment 
• Minor jobs that made people boondogglers 
• Unsustainable because after a few years these people had no proper permanent employment 
• After the scheme was over it rendered millions unemployed again 

Did not help ethnic minorities especially Blacks 

• Many did not enjoy the same rights as white people – racial discrimination
• Jim Crow laws still in place which meant that many companies and factories were white-only 
• Unemployment for blacks was twice that of whites 

Did not help women enough 

• Majority of agencies that dealt with unemployment were only aimed at men
• CCC only employed young men 18-25 years old 

Why did weaknesses in the US economy lead to the Wall Street Crash?

• ‘Overproduction of consumer goods and by farmers.’ (2 marks)
• ‘Traditional industries were in decline.’
• ‘Those who could afford consumer goods had bought them.’
• ‘The majority of Americans had little money.’
• ‘Wages did not rise and prices did not fall.’
• ‘People in Europe could not afford US goods.’
• ‘Tariffs were erected by Europeans against US goods.’
• ‘Shares began to lose value.’
• ‘There was an uneven distribution of income.’
• ‘The construction industry was in downturn.’
• ‘Speculators were becoming nervous and began selling shares.’ 

Why, by 1929, was the US economy facing difficulties? 

• There was a downturn in construction.’
• ‘Farming was in trouble throughout the 1920s.’
• ‘Coal and traditional textiles were in decline.’
• ‘Cars and electrical goods were producing more than they could sell.’
• ‘The USA struggled to export its agricultural and manufactured goods.’
• ‘There was overproduction.’
• ‘Traditional trades were in decline.’ 

Overproduction and competition made farmers suffer

Traditional industries saw declines 

Consumer goods being produced more than they could sell

Shipbuilding and construction saw a decline since international trade was dropping 

Why was the National Industrial Recovery Act (NIRA) important to the success of the New Deal? 

 ‘The PWA used government money to build schools, roads, dams, bridges and airports. These would be vital once the USA had recovered and, in the short term, they created millions of jobs.’

‘The NRA improved working conditions in industry and outlawed child labour. It set out fair wages and sensible levels of production. The idea was to stimulate the economy by giving workers money to spend.’

‘The NRA was a voluntary organisation but firms which joined used the blue eagle as a symbol of presidential approval. Over 2 million employers joined the scheme.’

‘The Act was important because it was put into law so quickly and had an immediate effect. It was enacted near the end of the 100 days. It passed the House of Representatives in 7 days and through the Senate during June 1933.’ 

•  ‘It set up the Public Works Administration.’
• ‘It set up the National Recovery Administration.’
• ‘It created jobs.’
• ‘It produced community facilities.’
• ‘It improved working conditions.’
• ‘It was enacted in the first 100 days.’
• ‘It encouraged trade unions.’ 

Why did the Wall Street Crash take many Americans by surprise? 

• ‘The economy had boomed during the 1920s.’
• ‘Many consumer items had sold well in the 1920s.’
• ‘Share prices kept rising throughout the 1920s.’
• ‘Speculators had made huge profits.’
• ‘Investors did not realise the economy was slowing down.’ 

Why did the US government feel threatened by the Bonus Marchers? 

‘The government was worried because in the summer of 1932, First World War ex-servicemen and their families arrived in Washington demanding the “bonus” payment that had been promised to them by an act passed in 1924. The bonus, around $500, was not payable until 1945, but some families were destitute and wanted the payment now. In camps around the city, about 25000 veterans gbathered and the government was worried by the threat of their large presence.’ 

•  ‘Servicemen wanted their war bonus early’
• ‘They were considered as communist agitators.’
• ‘The sheer numbers worried the government.’
• ‘The marchers had public sympathy.’
• ‘Thousands marched on Washington.’ 

Veterans wanted their veteran bonus early

• Only due in 1945 but they were asking for it in 1932, 13 years early 
• Government thought that veterans were being too demanding by asking for money more than a decade before it was due to be given out 

Government considered them communist agitators 

• Government thought that they had been influenced by communism 
• Did not want to have communism take over America especially when the government was extremely anti-communist
• Hoover thus ordered Gen. MacArthur to use force to clear the camp 

Sheer numbers worried government 

• 43,000 veterans and their families set up camp outside the White House 
• Camp was expanding quickly in size and in numbers 
• Government thought there were enough of them to be considered a threat and wanted the camp to be cleared by force 

Marchers had public sympathy

• Veterans were well-respected for serving bravely in the war 
• People thought that veterans deserved the bonus early especially for their bravery and sacrifices 
• Considered a huge threat because they were demanding money early 

Part C

‘It is surprising that there was opposition to the New Deal.’ How far do you agree with this statement? Explain your answer. 

 ‘I think it is surprising that there was so much opposition. After the Wall Street Crash and during the Depression, millions of people were unemployed. They lost their homes and they were starving. Farmers lost their farms. Hoover’s government did little to help people. This means you would think everyone would have supported Roosevelt’s efforts to help people. Millions of people were found jobs, farmers were helped and the poor were helped with unemployment benefit and the old with pensions. It is surprising that there was opposition to any of this because these people badly needed the help.’ 

OR 

‘The opposition from Republicans was not surprising. They believed in the government intervening as little as possible and they thought that people should look after themselves and their families without government help. They also wanted low taxes. The New Deal went against all this. Republicans claimed that Roosevelt was moving America towards socialism and that the New Deal would destroy the freedom and free enterprise that allowed businesses to prosper. They were worried that the New Deal was interfering by reducing production on farms to keep prices up, and by creating jobs artificially through schemes like the PWA. These measures also involved putting taxes up. It is not surprising that the Republicans were opposed.

• The old, sick and disabled desperately needed help.’
• ‘People gained employment.’
• ‘Public works were created.’
• ‘Workers had more rights.’
• ‘The New Deal prevented the banking system from collapsing.’
• ‘Many farmers were helped because prices were stopped from falling.’
• ‘The American economy gradually recovered.’
• ‘The New Deal was producing a fairer society.’
• ‘The New Deal did little for black Americans.’
• ‘Republicans were bound to oppose it because they thought people should not be helped by government.’
• ‘Republicans believed in laissez faire in economic affairs.’
• ‘Republicans opposed government intervention.’
• ‘Republicans thought it was an attack by the government on their traditional freedoms.’
• ‘Many resented paying the higher taxes to fund the New Deal.’
• ‘Some claimed it was taking America towards socialism.’
• ‘The Supreme Court found parts of the New Deal unconstitutional.’
• ‘Huey Long criticised it for not doing enough to help the poor like the old, sick and unemployed.’ 

Surprising

ND revised banking system

• Emergency Banking Act 
• 4 day banking holiday 
• Reopened trusted banks and insured people’s deposits 
• Strengthened financial institutions and restored people’s confidence in the banking system 

ND did a great deal to support the poor and hungry 

• FERA provided $500 million in direct government aid 
• Increased the number of soup kitchens to feed hungry
• Provided employment schemes 
• SSA provided financial aid to single mothers and the disabled 
• Provided pensions to those above the age of 65 
• Still in force today 

ND did a great deal to support agriculture 

• AAA killed millions of piglets to raise farm prices 
• Paid farmers to limit the amount of crops grown
• Farm prices quickly rose to their pre-Depression levels 
• TVA built hydroelectric stations to generate cheap electricity and built dams to prevent flooding and introduce irrigation 

Unsurprising 

ND did not improve the lives of Black people

• Jim Crow Laws were still in force which meant that there was still racial discrimination and segregation
• Many factories and companies had ‘white-only’ employment policies 
• Many Blacks were unable to find employment and provide for their families, still living in poverty 

Some believed that Roosevelt was becoming dictatorial and totalitarian 

• Introduction of new government agencies made the federal government increase rapidly in size 
• Republicans and SC thought that it had too much control and interference in numerous sectors of society 
• “Laissez-faire’ went against what Roosevelt was implementing 

Overall

• More surprising that ND garnered opposition because it did a great deal to support the disadvantaged, get the banking system up and running and support farmers to stimulate the agricultural sector 
• Though Blacks unfortunately did not benefit from the ND, they were only a small fraction of population
• Republicans opposed Alphabet Agencies but these very organisations pulled the country out of the Depression

‘The greatest threat to the New Deal came from radical critics like Huey Long.’ How far do you agree with this statement? Explain your answer. 

‘Huey Long thought Roosevelt’s measures were weak. He wanted to do much more for the poor. He thought big corporations should be taxed more and the money used to build more roads, schools and hospitals. He thought there ought to be a cap on wealth and the taxes shared more evenly across society. Roosevelt regarded him as one of the most dangerous men in the USA.’ 

OR 

‘In 1935, the Schechter Poultry Corporation had been found guilty of breaking NRA regulations. It appealed to the Supreme Court. The Court ruled that the government had no right to prosecute the company. This was because the NRA was unconstitutional.’

• ‘The Supreme Court thought parts of the New Deal were unconstitutional.’
• ‘The business community resented the government’s interference in the economy.’
• ‘Radical leaders complained that the New Deal did not go far enough.’
• ‘Republicans still believed in ‘rugged individualism’.’
• ‘The wealthy thought the government was giving their money away.’ 

YES

Huey Long (Gov. of Louisiana) criticised the ND for not doing enough to support the disadvantaged 

• Argued that ethnic minorities did not enjoy benefits of the ND 
• Proposed ‘Share our Wealth’ scheme asking for greater wealth redistribution
• Wanted to run for the presidency, so these were the ways he convinced people not to support FDR but to support him instead – this shows that radical critics esp. Huey Long were a threat

Father Coughlin 

• Weekly radio show when he would criticise various aspects of the ND 
• Especially hated the nationalisation of banks 
• Had over 40 million listeners – the fact that he garnered such a huge following shows that radical critics like him were a threat  

NO

Greatest threat came from Supreme Court 

• Most judges Republican so naturally opposed FDR’s Democrat views 
• Was the arbiter of the constitution and had the power to strike down anything deemed unconstitutional 
• NIRA and AAA struck down in 1935, 1936 respectively
• Threat because it was undoing the work that FDR did to help the vulnerable 

Business Leaders 

• Detested government interference in business and economy 
• Hated the power that trade unions were granted – NIRA gave trade unions the legal right to bargain with their employers 
• NRA code stated that employers had to pay their workers’ social security contributions – employers hated this as they had to pay more money

Elite and rich

• Hated having to pay higher taxes than everyone else 
• Saw FDR as a traitor as he himself came from an affluent family 

Overall

Radical critics did pose a threat but Huey Long died in 1935 and Father Coughlin lost his following due to his anti-semitic views 

Supreme Court was the most significant threat because it struck down many of FDR’s policies  

‘Hoover did much to help the American people during the Depression.’ How far do you agree with this statement? Explain your answer.

‘Hoover interpreted the early depression as a normal business downturn. When it became clear that the economy was in more serious trouble than first thought, Hoover did take action to stimulate business and employment. Money was provided to finance a building programme to create more jobs, the most famous project being the Hoover Dam on the Colorado River.’ 

OR 

e.g. ‘Hoover’s actions were considered too little and too late. He was against providing welfare support for the unemployed as he thought this would undermine the American values of self-help and rugged individualism. Considering the scale of the jobless problem, it made him appear unsympathetic and indifferent to the human side of the depression.’ 

• ‘Hoover thought it was a normal downturn in the economy.’
• ‘He thought “prosperity was just around the corner”.’
• ‘He cut taxes to inject more purchasing power into the economy.’
• ‘Tariffs were increased to protect American food and goods.’
• ‘Finance was provided for large building schemes.’
• ‘The RFC was set up to provide loans to businesses facing hard times.’
• ‘Hoover set up soup kitchens.’
• ‘Hoover’s actions were considered too little.’
• ‘Hoover treated the Bonus Army with little sympathy.’
• ‘Hoover came across as grim-faced and conservative in his approach.’
• ‘Hoover did not think it was the government’s responsibility to provide social security.’

Hoover did take action

Hoover Dam

• Harnessed Colorado river to provide electricity and clean water to 7 states 
• Gave factories a cheap electricity supply to start production
• Farmers had water for irrigation of crops 
• Helped manufacturing and agriculture 

Reconstruction Finance Corporation 

• $2 billion in government aid to banks and businesses 
• Allowed businesses to get back up on their feet and banks to save themselves from bankruptcy 
• Helped financial sector and business 

Hoover did not take action

Bonus Marchers incident 

• Unwilling to understand plight of veterans and ordered clearing of camp by force 
• No compassion, ruthless 

Insensitive comments 

• “I am convinced that we have passed the worst”
• Spoke glowingly about relief efforts that did little to support the people – majority of Americans still living in abject poverty 

Conservative attitude 

• Did not believe that it was the government’s responsibility to provide social security schemes for Americans 
• Rugged individualism → thought that Americans had to get themselves out of poverty using their own means and drive (rags to riches)

‘The New Deal restored the faith of the American people in their government.’ How far do you agree with this statement? Explain your answer.

 ‘The New Deal certainly helped to restore the faith of the American people in their government, as it showed that the government was determined to help people when they really needed it. Many unemployed people found work thanks to the New Deal. The PWA employed thousands of workers to help build dams, bridges, hospitals and schools. Many people again had jobs and therefore could provide adequately for their families.’ 

OR

‘The New Deal did not restore the faith of most African Americans in their government. African Americans still found it very difficult to find jobs, and by 1935 35% of African Americans were living on relief. Those who had jobs often had menial jobs other Americans did not want.’ 

• ‘The New Deal helped people to keep their homes.’
• ‘The New Deal helped the unemployed.’
• ‘The New Deal restored confidence in the banking system.’
• ‘The New Deal showed the government was willing to help people.’
• ‘Industrial workers had their faith restored.’
• ‘Farm tenants and sharecroppers did not have their faith restored.’
• ‘Some New Deal agencies discriminated against black Americans.’
• ‘The Social Security Act did not help to restore the faith of all women.’
• ‘Native Americans were still a poor and excluded group in American society.’
• ‘Unemployment remained high.’

YES

Revised banking system

Helped farmers + agriculture

Social security

NO
Blacks not helped 

Unemployment remained high

‘It was the banks that caused the Wall Street Crash.’ How far do you agree with this statement? Explain your answer. 

‘It can be said that banks caused the Wall Street Crash since they lent speculators too much money and this encouraged speculation. In 1929, banks had lent speculators $9 billion, and this caused share prices to rise to artificially high levels. Once the share prices started falling, this led to panic and the failure of many banks.’ 

OR 

‘It was speculators who caused the Wall Street Crash. On the stock market, everything depended on confidence in the share prices rising. During the 1920s, the economy was booming, and this encouraged speculators to invest in shares for a short time to make a quick profit as the shares rose in value. When the economy started to stall, many speculators were caught with shares that had lost value. It led to panic selling as speculators tried to cut their losses.’ 

• ‘Banks were lending money to speculators.’
• ‘Share were being bought “on the margin”.’
• ‘Banks would loan up to 90 per cent of the share price.’
• ‘Weaknesses were evident in the US economy before the Crash.’
• ‘Traditional trades were already declining.’
• ‘There was over-production of consumer goods.’
• ‘The USA was unable to export since European countries had imposed tariffs in response to American tariffs.’
• ‘People lost confidence in the stock market.’
• ‘Speculation was risky since it depended on the stock market rising.’

‘Limited export markets were the main weakness of the American economy prior to the Wall Street Crash.’ How far do you agree with this statement? Explain your answer.

 ‘Limited export markets caused real problems in the American economy. The American economy relied on selling surplus goods to a thriving export market, but this was just not happening. The USA had put tariffs on foreign goods in the 1920s, and Europe then did the same to protect its own goods. This made it difficult for American exporters to sell their goods abroad, and they were left with surplus goods they could not sell.’ 

OR 

‘Demand for consumer goods fell as a result of the unequal distribution of wealth. Many Americans had already purchased all the new consumer goods they wanted, but 50–60% of the population simply could not afford these goods. The market was becoming saturated with goods that no-one wanted to buy.’ 

• ‘Europe had not recovered from the financial strain of a four year war.’
• ‘European countries could not afford American goods.’
• ‘Tariffs caused problems with export markets.’
• ‘Overproduction caused problems.’
• ‘50–60% of Americans earned less than $2000 a year.’
• ‘The distribution of wealth was uneven.’

Yes

Europe recovered from war and no longer had to rely on US goods 

Tariffs made other countries not want to buy US goods, some even retaliated with their own tariffs 

Competition from other countries reduced demand for US goods 

No

Wealth disparity 

Republican policies caused over-speculation

‘The greatest failing of the New Deal was that it did not end racial discrimination in American society.’ How far do you agree with this statement? Explain your answer.  

‘The New Deal did not end racial discrimination; black Americans continued to be treated as second class citizens. There were no specific New Deal laws to help black Americans and improve their civil rights, and in the south there continued to be segregation in education, transport and public places. Roosevelt failed to put through civil rights laws because he felt he needed the support of Democrats from the south to pass New Deal legislation, and these congressmen were greatly opposed to giving black Americans civil rights.’ 

OR

 ‘The New Deal’s greatest failing was that it did not end unemployment. Although jobs were created as part of the New Deal, most of them were temporary jobs and these would disappear when government funding stopped. Unemployment never fell below 5 million during the time of the New Deal.’ 

• ‘Black Americans were placed in segregated CCC camps.’
• ‘Black Americans were not allowed to live in the new town of Norris.’
• ‘Segregation in transport and education continued in the South.’
• ‘Roosevelt did not pass an anti-lynching law.’
• ‘Women’s average wages were still lower than those of men.’
• ‘The New Deal did not end unemployment.’
• ‘There was still a great deal of poverty in rural America.’

Yes

Blacks couldn’t find work because of the Jim Crow laws 

Discrimination by white officials at local and state levels meant that Blacks did not enjoy New Deal benefits 

No 

Unemployment remained high

Rural poverty still prevalent 

Few New Deal policies aimed at women

‘Criticism of the New Deal by the Supreme Court was more serious than criticism from other groups and individuals.’ How far do you agree with this statement? Explain your answer

‘The Supreme Court declared that the AAA and the NRA were unconstitutional. It was the Court’s task to decide if measures passed by the President and the Congress were consistent with the American Constitution. Most of the judges were Republican and they had a natural political dislike for the New Deal.’ 

OR 

‘Senator Huey Long did not think the New Deal went far enough. His ‘Share our Wealth’ scheme included the confiscation of large fortunes, lump sums for American families, pensions for the over 60s, free washing machines and radios, minimum wages and free education.’ 

• ‘The Supreme Court had to uphold the Constitution.’
• ‘Republicans believed in minimal government intervention and low taxation.’
• ‘Some Republicans accused Roosevelt of acting as a dictator.’
• ‘Some state governors argued that the New Deal laws conflicted with the rights of state governments.’
• ‘Business leaders in the Liberty League opposed the New Deal.’
• ‘Many of the wealthy did not like high taxes and benefit handouts.’
• ‘Huey Long thought the New Deal did not go far enough and he wanted all wealth shared.’
• ‘Dr. Townsend wanted a pension of $200 per month for the over 60s.’
• ‘Father Coughlin attacked the New Deal for being inadequate and wanted social justice for all.’

Yes

SC struck down AAA and NIRA 

SC mostly Republican judges 

No

Radical left-wing critics

Business leaders

Rich and elite 

‘Hoover did not deserve to be regarded as the “do nothing’’ President.’ How far do you agree with this statement? Explain your answer

‘Hoover did bring in measures to combat the Depression. He made tax cuts to inject more purchasing power into the economy and provided money to finance a building programme to create more jobs. He encouraged employers to make voluntary agreements with their employees to maintain wages and production. He set up the Federal Farm Board to buy surplus produce in an attempt to stabilise prices.’ OR

 e.g. ‘Hoover created an image of being heartless and uncaring by believing that government should stay out of business matters. He believed in ‘rugged individualism’, the idea that people should work hard for themselves and not expect government help.’ 

• ‘Hoover offered little until it was too late.’
• ‘His tax cuts of $130 million were too little and too late.’
• ‘He did not believe in state handouts.’
• ‘He thought it was up to the individual to get work.’
• ‘Hoover supported limited welfare provision.’
• ‘His job creation included the Hoover Dam in Colorado.’
• ‘He set up the Reconstruction Finance Corporation to provide loans to businesses.’
• ‘The loans amounted to over $1500 million.’
• ‘He increased tariffs by the Hawley-Smoot Act to protect American produced goods.’

How far did the New Deal achieve its aims? Explain your answer. 

‘One aim of the New Deal was relief, and part of this involved the relief of extreme poverty. The New Deal achieved this aim as millions of Americans were helped by the Federal Emergency Relief Administration (FERA). FERA had a budget of $500million and this was used to provide soup kitchens, clothing and bedding for those in desperate need.’ 

OR 

e.g. ‘The New Deal did not achieve its aim of recovery and getting everyone working again. Between 1933 and 1939 unemployment did not fall below 14% of the workforce, so there were still lots of people without jobs. The problem of unemployment was really only addressed when the USA became involved in the Second World War and the demand for American food and manufactured goods increased greatly, creating more jobs.’ 

• ‘Unemployment fell by over 30% between 1933 and 1939.’
• ‘Emergency benefits were given to help those in dire need.’
• ‘Working conditions improved overall.’
• ‘The banking system was reformed.’
• ‘Unemployment never fell below 14% of the workforce between 1933 and 1939.’
• ‘The New Deal did not end racial discrimination.’
• ‘Some companies still used violence to break up strikes and sit-ins.’
• ‘Sharecroppers and tenants were evicted from their land.’

‘Hoover’s idea of rugged individualism was the main reason he lost the 1932 election.’ How far do you agree with this statement? Explain your answer.

‘Hoover created an image of being heartless and uncaring by believing that government should stay out of business matters. He believed in ‘rugged individualism’, the idea that people should work hard for themselves and not expect the government to help them.’ 

OR 

‘Roosevelt promised a ‘New Deal’ and this offered some hope. He came over as someone with energy and determination and people felt he was on their side. He promised government schemes for new jobs, measures to revive industry and agriculture, and relief for the poor and unemployed.’ 

• ‘Republican policies seemed uncaring.’
• ‘Republican policies wanted little government intervention.’
• ‘Hoover himself seemed uncaring over the Bonus Army incident.’
• ‘Roosevelt proposed a New Deal.’
• ‘Roosevelt proposed government intervention.’ 

Yes 

Hoover’s belief in rugged individualism meant that few policies were implemented to help social reform

• Came from rags to riches background by working hard – thought Americans should do the same 
• Few policies implemented so Americans still lived in poverty 

“I am convinced that we have passed the worst” 

• Refused to implement policies 

No

Bonus Marchers 

• Highlighted lack of respect for veterans and lack of compassion

Roosevelt proposed New Deal

• Proposed change that people wanted to see 

Roosevelt travelled around and talked to the people

• Showed his genuine and caring personality compared to Hoover’s lack of compassion  

‘The main opposition to the New Deal came from the challenge to its legality.’ How far do you agree with this statement? Explain your answer. 

e.g. ‘The Supreme Court declared that the AAA and the NRA were unconstitutional. It was the Court’s task to decide if measures passed by the President and the Congress were consistent with the American Constitution. Most of the judges were Republican and they had a natural political dislike for the New Deal.’ 

OR 

e.g. ‘Senator Huey Long did not think the New Deal went far enough. His ‘Share our Wealth’ scheme included confiscation of large fortunes, lump sums for American families, pensions, minimum wages and free education.’ 

• ‘The Supreme Court had to uphold the Constitution.’
• ‘Republicans believed in minimal government intervention and low taxation.’
• ‘Some Republicans thought Roosevelt was acting like a dictator.’
• ‘Some state governors argued that the New Deal laws conflicted with the rights of state governments.’
• ‘Business leaders in the Liberty League opposed the New Deal.’
• ‘Individuals like Huey Long, Francis Townsend and Father Coughlin thought Roosevelt should do more than the New Deal.’

‘Uneven distribution of wealth was the main weakness of the US economy by 1929.’ How far do you agree with this statement? Explain your answer. 

 ‘About 5% of the population was receiving 33% of the income in 1929. Too much money was in too few hands. Mass production required mass consumption but there were millions of Americans who could not afford to buy the new consumer goods.’ 

OR 

‘By 1929, American industry was producing more consumer goods than there were consumers to buy. Industrialists wanted to export their surpluses but they were prevented by foreign tariffs as a result of retaliation to American tariffs.’

•  ‘Over 50% of Americans were too poor to take part in the consumer boom.’
•  ‘Those on low wages or the unemployed could not afford consumer goods.’
•  ‘Exporting was difficult because Europeans were still recovering from the war.’
•  ‘Foreign countries put tariffs on US goods to protect their own industries.’
•  ‘There was overproduction which saturated the market.’ 

How far could overproduction be blamed for the end of the economic boom? Explain your answer.

 ‘By 1929, there were signs that American industries were producing more consumer goods than they could sell. The market for these goods was largely the rich and middle classes. By 1929, those who could afford consumer goods had already bought them.’ 

OR 

e.g. ‘In the past, American industry would have tried to export its surplus goods. The people in Europe, however, could not afford American goods. In addition, after nine years of American tariffs, Europe had put up its own tariffs to protect its industries.’

•  ‘The poor could not afford the consumer goods.’
• ‘There was an uneven distribution of wealth in American society.’
• ‘Saturation point had been reached by the well off with consumer goods.’
• ‘Some older industries had been in decline by the mid ’20s.’
• ‘European markets were limited to American goods.’
• ‘Many banks were in a precarious state.’
• ‘Farmers were overproducing throughout the ’20s.’

‘Republican opposition was a greater threat to the New Deal than was the Supreme Court.’ How far do you agree with this statement? Explain your answer.

 ‘Republicans considered the New Deal as undermining the core values of the United States. They believed in minimal government intervention, low taxation, low government expenditure, self-help and individual responsibility. They thought Roosevelt was acting like a dictator.’ 

OR 

e.g. ‘The Supreme Court during the 1930s was made up of nine judges who were old, conservative and Republican. They had a natural dislike for the New Deal and declared both the NRA and AAA unconstitutional.’ 

•  ‘Republicans thought Roosevelt was too powerful.’
• ‘They thought the NIRA and the TVA were like Stalin’s economic planning.’
• ‘They believed in as little government interference as possible.’
• ‘The Supreme Court was made up of judges with Republican sympathies.’
• ‘The Court declared parts of the New Deal unconstitutional.’
• ‘Roosevelt failed to pack the Supreme Court with Roosevelt supporters.’ 

‘Republican policies were to blame for Hoover losing the presidential election of 1932.’ How far do you agree with this statement? Explain your answer. 

 ‘Hoover persisted with Republican policies of ‘self-help’ and ‘rugged individualism’. Republicans believed that the government should not intervene in the economy. Republicans believed that ‘prosperity was just around the corner’. The American people thought this meant Hoover didn’t care about their problems.’ 

OR

‘The American electorate was infected by Roosevelt’s confidence and determination to fight against the odds. The promise of a ‘new deal’ for the American people caught the imagination of the people.’ 

•  ‘Republican policies seemed uncaring.’
• ‘Republican policies expected people to stand on their own two feet.’
• ‘Republican policies wanted little government intervention.’
• ‘Hoover himself seemed uncaring over the Bonus Army incident.’
• ‘Roosevelt proposed a new deal.’
• ‘Roosevelt proposed government intervention.’
• ‘Roosevelt promised to end prohibition.’ 

‘The Supreme Court presented a greater threat to the New Deal than did opposition from radical critics.’ How far do you agree with this statement? Explain your answer. 

‘The Supreme Court was made up of nine judges who were old, conservative and Republican. They had a natural dislike for the New Deal and declared both the NRA and the AAA unconstitutional. They remained a powerful force after the 1936 presidential election when Roosevelt failed to appoint sympathetic judges.’

OR

e.g. ‘Radicals thought Roosevelt’s New Deal did not go far enough. Huey Long planned a major redistribution of wealth to stimulate the economy. He planned to take money from the rich and redistribute it among the poor. His views undermined the New Deal and made people question its policies.’ 

• ‘The Supreme Court was conservative in nature.’
• ‘According to the American constitution, the Supreme Court thought parts of the New Deal were unconstitutional.’
• ‘Francis Townsend wanted over 60s to get $200 a month from taxation.’
• ‘Father Coughlin thought the New Deal did not tackle the causes of poverty.’ 

How successful was the New Deal? Explain your answer.

 ‘America became a more compassionate society. Roosevelt’s policies gave new hope, new confidence and a sense of purpose. It enabled America to survive the Depression without resorting to extreme solutions such as fascism as happened in other countries.’ 

OR 

e.g. ‘The New Deal did not end racial discrimination in American society. Roosevelt needed the support of the Democrats in the South and this prevented him introducing civil rights laws which they would have opposed.’

•  Successful – ‘Unemployment fell by over 30%.’
• ‘Trade unions increased their membership.’
• ‘Working conditions and pay generally improved.’
• ‘The very poor benefited from welfare and other emergency payments.’
• ‘The banking system was saved.’
• ‘The morale of Americans increased.’
• ‘Communism and fascism had little support.’
• ‘It set the tone for future government policies.’
• Unsuccessful – ‘Unemployment never fell below 14%.’
• ‘Businessmen and industrialists disliked the support given to trade unions.’
• ‘Government policy forced many to lose their jobs in agriculture.’
• ‘It failed to end racial discrimination.’
• ‘Industry was hampered by increased rules, regulations and higher taxation.’

Hoover failed to win a second term as President because he was reluctant to provide government welfare support.’ How far do you agree with this statement? Explain your answer.

 ‘Hoover created an image of being heartless and uncaring by believing that government should stay out of business matters. He believed in ‘rugged individualism’, the idea that people should work hard for themselves and not expect the government should help them.’

OR

‘Roosevelt promised a ‘New Deal’ and this offered some hope. He came over with energy and determination and people felt he was on their side. He promised government schemes for new jobs, measures to revive industry and agriculture with relief for the poor and unemployed.’

• ‘Hoover offered little until it was too late.’
• ‘Hoover supported limited welfare provision.’
• ‘His tax cuts were too little too late.’
• ‘He thought it was up to the individual to get work.’
• ‘He did not believe in state handouts.’
• ‘Hoover treated the Bonus Army poorly.’
• ‘Roosevelt offered a ‘New Deal’.’
• ‘Roosevelt promised jobs and state support.’ 

‘The New Deal was a failure.’ How far do you agree with this statement? Explain your answer.

 ‘The New Deal was a success because it significantly reduced unemployment from a very high level. The millions of jobs created helped to improve the infrastructure of the country, such as dams, roads and public amenities.’ 

OR 

e.g. ‘The New Deal was not a success because, although unemployment was reduced, it was not ended. Many argued the various schemes did not provide real or permanent jobs. In 1937, when Roosevelt cut the spending on the New Deal, unemployment increased. It took the Second World War to finally remove unemployment.’ 

•  ‘It helped most of the unemployed.’
• ‘It introduced social welfare.’
• ‘The government became more involved in people’s lives.’
• ‘It did not benefit many of the farmers.’
• ‘Most Black Americans saw very little benefit.’
• ‘Many became jobless again during the slump.’ 

‘Roosevelt tried to do too much.’ How far do you agree with this explanation of the limited success of the New Deal? Explain your answer. 

The New Deal had limited success because Roosevelt did too much. He interfered in business, with the NRA introducing many new codes and regulations. Business leaders felt that all the rules and regulations plus the government encouragement of trade unions made it difficult to run their businesses profitably. This could mean job losses and even some businesses closing down.’ 

OR 

e.g. ‘The New Deal had limited success because Roosevelt did not do enough. Many of the jobs provided through the New Deal were temporary and the moment government funding was removed the jobs would disappear. There were still 9 million unemployed in 1936 and by 1938 the number of unemployed was over 10 million.’ 

•  ‘Roosevelt behaved like a dictator.’
•  ‘Roosevelt spent too much money.’
•  ‘Roosevelt interfered too much in people’s lives.’
•  ‘Roosevelt introduced too many codes and regulations.’
•  ‘Roosevelt did not do enough to help those who were suffering most.’
•  ‘Roosevelt did not do enough to help African Americans.’
•  ‘Few of the New Deal programmes were aimed at women.’ 

‘Hoover’s treatment of the Bonus Marchers was the main reason he lost the Presidential election of 1932.’ How far do you agree with this statement? Explain your answer. 

• ‘Hoover failed to deal with the Depression.’
• ‘Hoover lost popularity over his handling of the Bonus Marchers.’
• ‘Hoover offered little until it was too late.’
• ‘Roosevelt promised relief for the people.’
• ‘Roosevelt gave hope to the unemployed.’
• ‘People knew Roosevelt’s record.’
• ‘Roosevelt offered a ‘New Deal’.

‘The greatest opponents of the New Deal were the Republicans.’ How far do you agree with this statement? Explain your answer. 

‘Republicans opposed Roosevelt because he was a Democrat. Many of them still believed in ‘rugged individualism’ and they thought that ‘prosperity was just round the corner’. Most of the judges in the Supreme Court were Republicans as were most of the business community and high tax payers.’ 

•  ‘The Republicans still believed in ‘rugged individualism’.’
• ‘The business community resented the government’s interference in the economy.’
• ‘The Supreme Court thought parts of the New Deal were unconstitutional.’
• ‘The wealthy thought the government was giving their money away.’
• ‘Radical leaders complained that the New Deal did not go far enough.’ 

‘Hoover was the cause of Roosevelt winning the Presidential election of 1932.’ How far do you agree with this statement? Explain your answer

• ‘Hoover failed to deal with the Depression.’
• ‘Hoover did too little and too late.’
• ‘Hoover wanted to keep government out of business.’
• ‘Hoover was associated with shanty towns.’
• ‘Roosevelt promised to use public money.’
• ‘Roosevelt gave hope to the unemployed.’
• ‘Roosevelt was a charismatic speaker.’ 

‘Speculation on the stock market was more responsible for the Wall Street Crash than weaknesses in the US economy.’ How far do you agree with this statement? Explain your answer. 

‘When industrial output fell in the summer of 1929, for the first time in four years, speculators on the stock market became nervous about the value of their shares and began to sell. Soon panic set in with investors trying to sell their shares. The banks were not prepared to support the price of shares and so speculators began selling at a loss.’

OR

‘By 1929, sectors of the economy were showing signs of strain after the boom years of the 1920s. The boom was based on increased sales of consumer goods. American industry was producing more than they could sell as most had bought what they needed.’ 

• ‘The economy was slowing down.’
• ‘There was panic selling.’
• ‘Sales were falling.’
• ‘Share prices stopped going up.’
• ‘There was credit buying by speculators.’
• ‘Speculators tried to sell to save something.’