APUSH: Period 7, 1890-1945 - The Great Depression, Causes, Hoover's Response

Why This Matters

The Great Depression, which lasted from 1929 to the late 1930s, was a pivotal event in American history that significantly impacted the nation's economy, politics, and social structures. It is essential to understand the causes and responses to the Great Depression to grasp the broader themes of American identity, politics, and power. The Great Depression led to a reevaluation of the role of government in the economy, ultimately contributing to the New Deal policies of President Franklin D. Roosevelt, which shaped the course of American history.

Key Events & People

• Stock Market Crash of 1929: A massive stock market crash on October 29, 1929, marked the beginning of the Great Depression, wiping out millions of dollars in investments and leading to widespread panic.
• Herbert Hoover: The 31st President of the United States, Hoover's response to the crisis was criticized for being inadequate, and his policies exacerbated the economic downturn.
• Smoot-Hawley Tariff Act (1930): Signed into law by President Hoover, this protectionist trade policy raised tariffs on imported goods, leading to retaliatory measures from other countries and further exacerbating the economic crisis.
• Dust Bowl (1930s): A severe drought and poor farming practices led to massive dust storms and widespread poverty in the Great Plains region, displacing millions of people.
• Bonus Army (1932): A group of World War I veterans marched on Washington, D.C. to demand early payment of a promised bonus for their military service, but were met with force by the U.S. Army.
• Franklin D. Roosevelt: Elected President in 1932, Roosevelt implemented a series of policies known as the New Deal to address the economic crisis and provide relief to those affected.
• National Industrial Recovery Act (1933): A key component of the New Deal, this act established codes of fair competition and set minimum wages and working conditions for workers.
• Federal Emergency Relief Administration (FERA): Established by President Roosevelt in 1933, FERA provided direct financial assistance to states for relief programs, such as food and housing.

Cause & Effect Chain

• Cause: The stock market crash of 1929 led to a massive loss of wealth and a sharp decline in consumer spending.
• Effect: The decline in consumer spending led to a sharp decrease in industrial production and a rise in unemployment.
• Long-term consequence: The prolonged economic downturn led to widespread poverty, displacement, and social unrest, ultimately contributing to the rise of fascist and nationalist movements in the 1930s.

Essential Vocabulary

• *Protectionism*: A trade policy that aims to protect domestic industries by imposing tariffs or other trade barriers on imported goods.
• *New Deal*: A series of policies implemented by President Franklin D. Roosevelt to address the economic crisis and provide relief to those affected.
• *Dust Bowl*: A severe drought and poor farming practices that led to massive dust storms and widespread poverty in the Great Plains region.
• *Smoot-Hawley Tariff Act*: A protectionist trade policy signed into law by President Hoover in 1930, which raised tariffs on imported goods and led to retaliatory measures from other countries.
• *National Industrial Recovery Act*: A key component of the New Deal, which established codes of fair competition and set minimum wages and working conditions for workers.
• Federal Emergency Relief Administration (FERA): A program established by President Roosevelt in 1933 to provide direct financial assistance to states for relief programs.
• *Bonus Army*: A group of World War I veterans who marched on Washington, D.C. to demand early payment of a promised bonus for their military service.
• *Hoovervilles*: Shantytowns that sprang up in cities across the United States during the Great Depression, named after President Hoover.
• *Black Tuesday*: The day of the stock market crash in 1929, which marked the beginning of the Great Depression.
• *Roosevelt's First Hundred Days*: A period of intense legislative activity in 1933, during which President Roosevelt implemented a series of policies known as the New Deal.

Common Student Mistakes

• What students often get wrong: The Smoot-Hawley Tariff Act was signed into law by President Roosevelt, not President Hoover.
• Correction: The Smoot-Hawley Tariff Act was signed into law by President Hoover in 1930, raising tariffs on imported goods and leading to retaliatory measures from other countries.
• What students often get wrong: The Bonus Army was a group of World War II veterans, not World War I veterans.
• Correction: The Bonus Army was a group of World War I veterans who marched on Washington, D.C. to demand early payment of a promised bonus for their military service.
• What students often get wrong: The Great Depression lasted from 1925 to 1939.
• Correction: The Great Depression lasted from 1929 to the late 1930s, with the exact dates varying depending on the source.

DBQ / LEQ Connections

• Possible essay prompt: Analyze the causes and effects of the stock market crash of 1929. Be sure to include specific evidence from the period, such as the Smoot-Hawley Tariff Act and the National Industrial Recovery Act.
• Possible document-based question: Evaluate the effectiveness of President Hoover's response to the Great Depression. Be sure to include specific evidence from the period, such as Hoover's speeches and the Bonus Army incident.
• Possible LEQ prompt: Compare and contrast the policies of President Hoover and President Roosevelt during the Great Depression. Be sure to include specific evidence from the period, such as the New Deal and the National Industrial Recovery Act.

Quick Self-Check

1. What was the name of the protectionist trade policy signed into law by President Hoover in 1930?
2. Answer: Smoot-Hawley Tariff Act
3. Explanation: The Smoot-Hawley Tariff Act was a protectionist trade policy that raised tariffs on imported goods and led to retaliatory measures from other countries.
4. What was the name of the group of World War I veterans who marched on Washington, D.C. to demand early payment of a promised bonus for their military service?
5. Answer: Bonus Army
6. Explanation: The Bonus Army was a group of World War I veterans who marched on Washington, D.C. to demand early payment of a promised bonus for their military service.
7. What was the name of the program established by President Roosevelt in 1933 to provide direct financial assistance to states for relief programs?
8. Answer: Federal Emergency Relief Administration (FERA)
9. Explanation: FERA was a program established by President Roosevelt in 1933 to provide direct financial assistance to states for relief programs, such as food and housing.

Last-Minute Cram Sheet

• The Great Depression lasted from 1929 to the late 1930s.
• The Smoot-Hawley Tariff Act was signed into law by President Hoover in 1930.
• The Bonus Army was a group of World War I veterans who marched on Washington, D.C. to demand early payment of a promised bonus for their military service.
• The National Industrial Recovery Act was a key component of the New Deal.
• FERA was a program established by President Roosevelt in 1933 to provide direct financial assistance to states for relief programs.
• The stock market crash of 1929 marked the beginning of the Great Depression.
• The New Deal was a series of policies implemented by President Franklin D. Roosevelt to address the economic crisis and provide relief to those affected.
• The Dust Bowl was a severe drought and poor farming practices that led to massive dust storms and widespread poverty in the Great Plains region.
• Hoovervilles were shantytowns that sprang up in cities across the United States during the Great Depression, named after President Hoover.
• Black Tuesday was the day of the stock market crash in 1929, which marked the beginning of the Great Depression.