Lernzettel: The Roaring Twenties and Great Depression

📋 Course Outline

1. 1920s prosperity and mass consumption
2. Wall Street Crash of 1929
3. Causes of the Great Depression
4. The Great Depression in America
5. Hoover’s response to the crisis
6. Roosevelt and the New Deal
7. The Blitz and the British home front
8. London as a global city
9. Brexit and the Irish border
10. The Good Friday Agreement
11. History of Malta

📖 1. 1920s prosperity and mass consumption

🔑 Key Concepts & Definitions

• Roaring Twenties : A period of rapid U.S. economic growth in the 1920s that expanded production and consumption.
• Mass production consumer goods : A manufacturing approach that spread household items widely, making modern appliances common in many homes.
• Expanded credit : Borrowing supported by a booming banking industry, letting people buy goods and invest with limited upfront money.
• Fordist assembly line : A production system linked to Henry Ford that increased output and lowered costs, boosting affordability of cars.

📝 Essential Points

• America’s economy grew 42% during the 1920s, fueling a boom in production and spending.
• Mass production spread household appliances like washing machines, vacuum cleaners, and refrigerators into many homes.
• By the mid-1930s, 60% of households owned radios.
• Henry Ford’s assembly line let the Model T cost $300, helping drive auto-industry growth.
• The U.S. produced almost half of the world’s output after World War I because much of Europe had been destroyed.

💡 Memory Hook

Roaring 20s = growth + goods + credit; the boom was powered by mass production, but credit made later shocks hit harder.

📖 2. Wall Street Crash of 1929

🔑 Key Concepts & Definitions

• Buying on margin : Buying on margin is investing in stocks by putting down only part of the price and borrowing the rest from a broker.
• Black Thursday : Black Thursday is October 24, 1929, the day of the sharp intraday drop in the Dow Jones during a stock market collapse.
• Black Monday : Black Monday is October 28, 1929, when the Dow Jones kept falling after Black Thursday, deepening the panic.
• Black Tuesday : Black Tuesday is October 29, 1929, when the Dow Jones fell again by about 12% amid very high trading volume and an all-out panic.

📝 Essential Points

• From 1922 to just before the crash, the stock market value rose by 218%, encouraging widespread investing and borrowing to buy shares.
• By summer 1929, about 300 million shares were bought on margin, using only about 10%–20% down, which made the system fragile.
• On October 24, 1929, the Dow Jones fell 4.6% the day before and then dropped 11% during intraday trading on Black Thursday.
• On October 28 (Black Monday) and October 29 (Black Tuesday), the Dow continued falling, losing about 12% on Black Tuesday with more than 16 million shares traded.
• From the September 3, 1929 high to 1932, the Dow Jones lost almost 90% of its value as the decline lasted about three more years.

💡 Memory Hook

Think “Thu 24 → Mon 28 → Tue 29”: three consecutive drop days that triggered panic and a near-90% Dow collapse by 1932.

📖 3. Causes of the Great Depression

🔑 Key Concepts & Definitions

• Smoot-Hawley Tariff Act : A 1930 U.S. tariff law that raised taxes on imports, worsening international tensions and shrinking trade.
• Bank failures : A banking collapse where many banks went bankrupt and stopped lending to businesses and households.
• International trade collapse : A downturn in cross-border exchange triggered by retaliation after higher U.S. import taxes, reducing economic activity.
• Dust Bowl drought : A severe drought hitting 23 U.S. states that destroyed crops and intensified hardship for farmers.

📝 Essential Points

• In June 1930, Hoover signed the Smoot-Hawley Tariff Act, raising taxes on 900 imports to help farmers.
• Retaliation by other countries triggered a trade war and international trade began to collapse.
• Because banks were weakened, they would not lend, which contributed to real-estate collapse and slowing economic activity.
• The U.S. entered a deflation period, alongside crop failure from a major drought that hit 23 states and was the worst in 300 years.

💡 Memory Hook

Tariff → retaliation → trade war; banks stop lending; drought destroys crops → deflation and spreading unemployment.

📖 4. The Great Depression in America

🔑 Key Concepts & Definitions

• Migrant Mother : An iconic Dorothea Lange photograph used to show the human suffering caused by the Great Depression.
• First Inaugural Address : A Franklin D. Roosevelt speech delivered at the start of his presidency that described the Great Depression’s crisis and what it demanded.
• Foreclosure of small homes : A forced loss of property in which small homes and farms were threatened as families struggled during the Great Depression.

📝 Essential Points

• In his First Inaugural Address, Franklin D. Roosevelt described shrinking values, rising taxes, falling ability to pay, and frozen means of exchange.
• He said industrial activity appeared dried up, farmers had no markets, and years of family savings were gone in the Great Depression.
• Roosevelt framed the crisis as requiring action now, with the greatest primary task being to put people to work.
• He warned against a return of old evils by calling for strict supervision of banking, ending speculation with other people’s money, and ensuring a sound currency.

💡 Memory Hook

FDR’s diagnosis → “action now” and “put people to work,” plus three safeguards: bank supervision, no speculation, sound currency.

📖 5. Hoover’s response to the crisis

📖 6. Roosevelt and the New Deal

🔑 Key Concepts & Definitions

• Greatest primary task : A stated top priority to reduce unemployment by putting people to work through direct government action and job-creating projects.
• Strict supervision of banking and credits : A proposed safeguard that requires oversight of banks, credit, and investment decisions to prevent a return to past economic failures.
• End to speculation with other people’s money : A proposed safeguard that stops risky dealing funded by others’ savings to protect the economy from renewed instability.

📝 Essential Points

• Franklin D. Roosevelt delivered his first inaugural address on Saturday, March 4, 1933, to the American people as he took office.
• FDR describes an economic collapse with shrunken values, higher taxes, frozen means of exchange, failing industrial enterprise, and farmers losing markets for their produce.
• He proposes immediate action by putting people to work, including direct government recruiting and national projects using natural resources.
• He argues for safeguards against repeating “the evils of the old order” through strict supervision of banking and credits and ending speculation with other people’s money.
• He calls for an adequate but sound currency and presents his leadership as acting on a popular mandate for direct, vigorous action.

💡 Memory Hook

Jobs first (put people to work), then rules for Wall Street (bank/credit oversight and no other people’s money speculation).

📖 7. The Blitz and the British home front

🔑 Key Concepts & Definitions

• The Blitz : The Blitz refers to the sustained German air attacks on Britain during WWII that struck major cities like London.
• British home front : The British home front is the civilian sphere of life in wartime Britain, where people endured attacks, shortages, and government measures.
• Blitz newspaper double-page spread : A Blitz newspaper double-page spread is a wartime layout meant to report what bombings did to daily life and the wider country.
• Propaganda posters : Propaganda posters are persuasive visual messages produced to shape public attitudes and morale during war.

📝 Essential Points

• In the House of Commons on 13 May 1940, Churchill delivered the “Blood, Toil, Tears and Sweat” context of wartime survival tied to the need for victory.
• The Blitz reporting task requires describing main events, Londoners’ daily lives, and the consequences for the rest of the country.
• The same Blitz report must cover government policy and should avoid turning the piece into a political editorial.
• A Blitz spread can use photographs, propaganda posters, and a testimony to make events feel concrete and firsthand.

💡 Memory Hook

Blitz journalism checklist: events + daily life + nationwide impact + government policy (no political editorial).

📖 8. London as a global city

🔑 Key Concepts & Definitions

• Global city : A global city is a major urban center whose influence extends beyond its region through economics, politics, culture, and connections.
• Financial hub : A financial hub is a city area that hosts leading banks, insurers, and major market institutions that drive international finance.
• Cultural diversity : Cultural diversity describes the mix of nationalities and religions living together, visible in neighborhoods, food, festivals, and traditions.
• International tourism : International tourism is the draw of landmark sites, museums, and entertainment that attracts visitors from around the world.
• Global connectivity : Global connectivity is the combination of efficient public transport and international links that moves people and goods worldwide.

📝 Essential Points

• London is the capital of the United Kingdom and a major center for finance, culture, education, tourism, and international politics.
• London has more than nine million people and is a multicultural metropolis where hundreds of languages are spoken.
• The City of London and Canary Wharf host major international banks, insurance companies, and multinational corporations.
• London’s key political symbols include the Houses of Parliament and 10 Downing Street, and it hosts embassies and major conferences.
• London faces challenges such as very high housing costs, homelessness and overcrowding, congestion and air pollution, inequality, and flooding and heatwaves related to climate change.

💡 Memory Hook

London = Finance (City/Canary Wharf) + Politics (Parliament/10 Downing) + Culture (multicultural neighborhoods) + Visitors (landmarks/museums).

📖 9. Brexit and the Irish border

🔑 Key Concepts & Definitions

• Good Friday Agreement : A 1998 agreement that created a peaceful and open border in Ireland to allow free movement and trade.
• Northern Ireland Protocol : A 2020 protocol that avoided a hard border on the island by using a customs border in the Irish Sea.
• Windsor Framework : A 2023 framework that aimed to end the Irish border problem by using a dual regulatory system.
• Dual regulatory system : A post-2023 setup where Northern Ireland follows some EU rules for goods while the rest of the UK does not.
• Green and red lanes : A Windsor system where goods headed for Northern Ireland get minimal checks (green lane) while higher-risk goods face full checks (red lane).

📝 Essential Points

• In June 2016, Northern Ireland voted to Remain with 55.8% in favour and a 62.7% turnout.
• On 29 March 2017, the UK triggered Article 50 of the Treaty on European Union to begin withdrawal negotiations.
• Without an Irish border solution, the text warns this could lead to a no-deal Brexit with no transition period.
• After Brexit, customs checks would be needed between Northern Ireland and the Republic of Ireland because the UK left the EU Single Market and Customs Union.
• In 2020, the Northern Ireland Protocol placed the customs border in the Irish Sea to prevent a hard border on the island.
• In 2023, the Windsor Framework introduced green and red lanes so controls vary by whether goods could enter the EU.

💡 Memory Hook

Irish border problem is “moved then split”: 2020 Irish Sea (Protocol), 2023 dual rules with Green/Red lanes (Windsor).

📖 10. The Good Friday Agreement

🔑 Key Concepts & Definitions

• Peaceful open border : A border arrangement that removed heavy fortifications and enabled easier movement between Northern Ireland and the Republic of Ireland.
• Free movement and trade : The cross-border situation where people and goods could move more easily, supporting everyday life and commerce.
• Power-sharing system : A governance arrangement that shares political power between Unionists and Republicans rather than allowing one side to rule alone.

📝 Essential Points

• The Good Friday Agreement (1998) established a peaceful and open border between Northern Ireland and the Republic of Ireland to facilitate free movement and trade.
• The agreement ended the conflict commonly linked to “the Troubles” between Unionists and Republicans.
• The accord created a system where political power is shared between Unionists and Republicans.
• As fighting receded, the militarized frontier between the two parts of Ireland became much less visible.

💡 Memory Hook

GFA = “Gate + Governance”: open border for movement and a power-sharing deal for politics.

📖 11. History of Malta

🔑 Key Concepts & Definitions

• Mediterranean crossroads : A strategic-location idea where Malta lies between Europe and North Africa, shaping its role in trade, culture, and military activity.
• Ggantija Temples : A prehistoric megalithic temple complex built by early settlers in Malta, noted for its impressive construction.
• Knights of St John : A military-religious order given Malta in 1530, which strengthened the islands and defended them during the Great Siege of 1565.
• Valletta : The capital city founded by the Knights of St John, later described as a cultural and military centre.

📝 Essential Points

• Prehistoric settlers arrived around 5200 BC and built the Ggantija Temples.
• Phoenicians settled around 800 BC as traders, followed by Carthaginian then Roman rule in 218 BC.
• Byzantines ruled after the Roman Empire, then Arabs conquered Malta in AD 870 and shaped language and agriculture.
• Normans took control in 1091, and Malta became part of the United Kingdom in 1814.
• During World War II Malta was heavily bombed yet earned the George Cross from King George VI.

💡 Memory Hook

Malta’s timeline: builders (5200 BC) → traders (800 BC) → cross-battle defenders (Knights 1530/1565) → British (1814) → award courage (George Cross).

📅 Key Dates

📊 Synthesis Tables

Axis of mechanisms (Roaring Twenties vs crash/depression)

⚠️ Common Pitfalls & Confusions

1. Confusing Black Thursday (October 24, 1929) with Black Monday (October 28) or Black Tuesday (October 29) when tracking the sequence of Dow falls.
2. Thinking buying on margin means paying the full share price upfront rather than putting down only 10%–20% down and borrowing the rest.
3. Assuming banks failed because of only one company collapse instead of weakened banking reserves and vulnerability to bank runs.
4. Mixing the role of the Smoot-Hawley Tariff Act (June 1930) with the Dust Bowl drought, which are two separate drivers of depression hardship.
5. Believing FDR’s “action now” means waiting for markets to self-correct rather than using direct government recruiting and projects.
6. Treating the Blitz as a short event confined to one day, instead of a sustained German bombing campaign (September 40–June 41).
7. Mixing the Irish border solutions: confusing the 2020 Northern Ireland Protocol (Irish Sea customs border) with the 2023 Windsor Framework (dual regulatory system).

✅ Exam Checklist

1. Explain how “Roaring Twenties” growth (42%) plus mass production and consumer credit expanded consumption.
2. Define buying on margin and state why the 10%–20% down system was a weakness.
3. Reconstruct the crash timeline using the three consecutive drop days (October 24, October 28, October 29) and the Dow’s later near-90% loss by 1932.
4. State Hoover’s laissez-faire approach and one concrete sign of failure (continued bank bankruptcies; by end of 1930 more than 1300 failed).
5. Describe the chain linking Smoot-Hawley (June 1930) to retaliation, trade-war collapse, weak bank lending, real-estate collapse, and slowing of the economy.
6. Use the Dust Bowl facts (drought hit 23 states; worst in 300 years) to explain why farmers couldn’t sell/produce enough and how deflation and unemployment followed.
7. Summarize FDR’s First Inaugural diagnosis (values shrunken, taxes risen, frozen means of exchange, farmers no markets) and his “action now” logic.
8. List the safeguards FDR demanded against repeating “the evils of the old order” (strict supervision of banking/credits/investments, end to speculation with other people’s money, adequate but sound currency).
9. For the Blitz, explain the context in the UK and Churchill’s “Blood, Toil, Tears and Sweat” primary purpose, then state what the Blitz required a journalist to cover (events, daily life, consequences, government policy, no political editorial).
10. For Churchill’s wartime leadership rhetoric, identify his aim (wage war with all might; victory “at all costs”) as the speech’s central message.