The New Deal and Its Impact

From the study guide

Course Outline

  1. Farmers' struggles in 1920s
  2. Causes of the Depression
  3. Life during the Depression
  4. The New Deal and government role
  5. Public opinion on the New Deal

1. Farmers' struggles in 1920s

Key Concepts & Definitions

  • Overproduction: Farmers produced too much food, which led to a surplus. This excess caused prices to drop significantly, making it difficult for farmers to earn enough income from their crops.
  • Farm debt: Many farmers borrowed money to buy land, equipment, or seeds. Due to low crop prices, they struggled to repay these debts, often losing their land as a result.
  • Dust Bowl: An environmental disaster characterized by severe dust storms that damaged farmland. It forced many farmers to abandon their land and migrate west, especially to California, in search of work.

Essential Points

Farmers produced too much food during the 1920s, which caused crop prices to fall sharply. As a result, many farmers found themselves unable to pay their debts, which they had often accumulated to finance their farming operations. The combination of overproduction and low prices made it difficult for farmers to sustain their livelihoods. The Dust Bowl, a devastating environmental event, further worsened their situation by destroying farmland with massive dust storms. This forced many farmers to lose their land and migrate westward, particularly to California, seeking new opportunities and work.

Key Takeaway

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Practice quiz preview

1. What was a primary reason for support or opposition to the New Deal among Americans according to the source?

2. How does the impact of overproduction on farmers in the 1920s differ from the impact of the Dust Bowl?

3. What was the primary role of the New Deal programs in response to the causes of the Depression?

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Flashcard preview

Farmers' struggles — cause?

Overproduction, farm debt, Dust Bowl

Causes of Depression — key factor?

Bank failures, stock crash, low wages, confidence loss

Life during Depression — hardship?

Unemployment, homelessness, savings lost

New Deal — main goal?

Create jobs, revive economy, increase government role

FDIC — function?

Protects bank deposits

WPA — purpose?

Create jobs through public projects

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