Will Reed Mr. Kann Honors US History 1 Sunday, February 5th, 2017 Unit 13 Notes C
hapter 24 Textbook Notes Page 492: Chapter Intro ● 1933­ four years of worst economic depression in US history ○ This crisis lasted a long time Page 493: Wall Street Crash ● During the 1920s stock prices were large ● On the stock exchange on Wall Street in NYC: ○ Stock prices keep going up and up for 18 months from 1928 to 1929 ○ September 3: Dow Jones Industrial Average of major stocks had reached a high of 381 ● Millions of people invested in the “boom” market of 1928 ● Millions lost their money in 1929 when it collapsed B
lack Thursday and Black Tuesday ● Black Thursday: October 24, 1929— ○ There was much selling on Wall Street: then stock prices plunged ○ The next day bankers bought millions of $ of stocks ○ Strategy worked for only one business day Friday ● From this day on Wall Street went downhill Causes of the Crash ( Page 493­494) ● The stock market was a symptom not a cause ● Real causes included: ● Uneven distribution of wealth ■ Top 5% had 30% of wealth ○ Stock market speculation ■ People buying and dumping stocks, not holding them ○ Overuse of credit ■ Increasing personal debt and overbuying of goods ○ Overproduction ■ Factories making more than would be purchased ○ Weak Farm Economy ■ Increasing debt, terrible weather, and low prices ○ Government Oversight ■ Little to no government oversight of businesses. Tariffs that hurt farmers and international trade ○ Global Economic Problems ■
Intertwined global economy that was still struggling Effects (Page 494­ 496) ● The US Gross National Product from for $104 Billion to $56 Billion if 4 yrs ● 13 million jobs were lost: 25% of the workforce (excluding farmers) ● 20% of banks in the US closed ○ Wiped out 10 million savings accounts ● There was an increased amount of homelessness and starvation ○ Mortgage foreclosures and evictions became commonplace Hoover’s Policies (Page 496) ● Initially did little, thinking economy would recover, didn’t ○ Passed Hawley Smoot Tariff ■ Was 31%­49% tax on foreign imports ■ European nations passed higher tariffs, which decreased economic output for everyone ○ Poorly arranged Debt Moratorium crashed economies further, as insurance and debt markets collapsed Domestic Programs: Too Little, Too Late (Page 497) ● President Hoover was convinced government action was needed to fix the economy ○ Federal Farm Board enlarged to stabilize agricultural industry ○ Federally funded Reconstruction Finance Corporation propped up vital companies with emergency loans Despair and Protest (Page 497) ● 1932: there were millions of unemployed workers and impoverished farmers ● Farmers then created the Farm Holiday Association ○ This was made to prevent price drops by controlling supply ● The Bonus March of WWI ○ 1000 unemployed WWI veterans marched to DC to demand payment of the bonuses promised them at a later date ○ Two veterans were killed in a clash w the police ○ This event caused hatred towards Hoover The Election of 1932 (Page 497­498) ● Herbert Hoover was the Republican nominee while FDR was the Democratic nominee ○ Roosevelt pledged a “new deal” the repeal of Prohibition, aid for the unemployed, and cuts in gov’t spending ○ Franklin Delano Roosevelt won, pushing plans for an economic New Deal ○
Hoover passed constitutional amendment shortening time between election and presidential switch Franklin D. Roosevelt’s New Deal (Page 498­499) ● F.D. Roosevelt was the only child of wealthy family, lost to Harding in previous presidential race ○ He was paralyzed by polio in 1921 ○ He was New York mayor 1928 ○ FDR made many welfare and relief programs to help the unemployed ● Eleanor Roosevelt ○ FDR’s wife ○ Was a leader (women’s rights) New Deal Philosophy (499) ● In FDR election, he offered promises but no programs ● There was no detailed plan to end the depression ● New deal programs were made to protect the Three R’s: ○ Relief for people out of work ○ Recovery for business and the economy as a whole ○ Reform of American economic institutions ● Louis Howe: Chief political adviser ● Roosevelt went to a group of university professors: known as the Brain Trust ○ Included Rexford Tugwell, Raymond Moley, Adolph A. Berle, Jr ● People that Roosevelt appointed to high administrative positions were most diverse in U.S. history ○ African Americans, Catholics, Jews, and women ● Frances Perkins was his secretary of labor ○ The first woman ever to serve in a president’s cabinet The First Hundred Days (499­501) ● Bank Holiday: Temporary closing of banks to reorganize and fix them ● Repeal of Prohibition: Increased tax revenue, and economic movement ● Fireside Chats: Radio presentations with Roosevelt he would issue, talking to Americans about issues Financial Recovery Programs (500) ●
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Emergency Banking Relief Act: government were allowed to examine the finances of the banks when closed Federal Deposit Insurance Corporation's (FDIC): guaranteed individual deposit of $5,000 Home Owners Loan Corporation (HOLC): provided refinancing of small homes to prevent foreclosures ●
The Farmers Credit Administration: provided low interest farm loans and mortgages to prevent foreclosure on the property of indebted farmers Programs for relief for the unemployed (500­501) ●
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Federal Emergency Relief Administration: opened soup kitchens and other forms of relief for people across the country Public Works Administration: put people back to work building public infrastructure like skyscrapers, dams, roads, etc Civilian Conservation Corps: employed young men on projects on federal lands and paid their families monthly sums Tennessee Valley Authority: Program that sold power, built dams, and cleaned the valley Industrial Recovery Program (501) ●
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National Recovery Administration (NRA) was the key solution to combine immediate relief ○ Set wages, controlled production, and set prices Farm production control program: similar program to NRA, which regulated industry ○ Agricultural Adjustment Administration (AAA) made farmers reduce production Other Programs of the First New Deal (501­502) ●
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Civics Works Administration, which hired for PWA projects Securities and Exchange Commission: created to regulate stock trading Federal Housing Administration: insured bank loans and lowered homelessness Removal of gold standard The Second New Deal (502) ●
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Relief Programs: ○ Works Progress Administration: WPA employed 3.4 million people (men and women) ○ Most workers under the WPA worked on construction ○ Unemployed artists (painting, writers, actors) were put to work by painting murals, write, and perform. ○ Resettlement Administration: provided loans to sharecroppers, tenants and small farmers. Reforms: ○ National Labor Relations (Wagner) Act (1935): Guaranteed a workers rights to join a union ○
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National Labor Relations Board: empowered to enforce the law and protect workers’ rights ○ Rural Electrification Administration: provided loans for electrical cooperatives to supply power to rural areas ○ Federal taxes: Revenue act of 1935, increased the tax on wealthy. ○ Federal taxes also increased the tax on large gifts from Parent → child The Social Security Act: ○ Created a federal insurance program based upon the automatic collection of taxes ○ Social Security would be to make monthly payments to retired people over the age of 65 The Election of 1936: ○ Roosevelt was nominated for a second term ○ Alfred Landon was the republican nominee ○ Roosevelt won every state except Maine and Vermont, 60% of the popular vote ○ Democrats consisted of African Americans mainly in the Northern Cities ○ Africans joined the Democratic party because of Roosevelt’s New Deal Opponents of the New Deal (504) ●
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Opinion polls and the election results showed that the majority of Americans supported Roosevelt New Deal programs were very controversial ○ Became the target of attacks by Liberals and Conservatives Liberal Critics ○ Socialists + ext liberals in Democratic party criticized the New Deal ■ Mostly because it did too much for business and too little for the unemployed and the working poor ○ Said president failed to address the problems of minorities, women, and the elderly Conservative Critics ○ Attacked the New deal for giving federal government too much power ○ Conservative critics believed that WPA and labor laws bordered on communism and socialism ○ Anti­new deal organization was created called the “American Liberty League” ○ It’s purpose was to stop the New deal from “subverting” the economic and political development in the US The Supreme Court (505) ●
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FDR thought reelection meant he had to get around courts Court­reorg plan­ would have let FDR place six new justices ○ Universal dislike, accused of trying to take power for himself ○ Afterwards court upheld const of Wagner Act and Social Security ■ A few justices retired anyway Rise of Unions (506) ●
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Wagner Act + National Industry Recovery Act made Union's legal ○ Membership skyrocketed in 30s Formation of the C.I.O ○ AFL was a union Voltron ○ Committee of Ind Orgs were part of AFL and wanted unskilled workers let in ■ Break away, change to Congress of Industry Orgs ● Organized unskilled workers Strikes (506) Strikes were very often in the Depression time Workers at an automobile shop believed it was their right to join a union by participating in a sit­down strike Finally, the United Auto Workers Union was created 1937, a demonstration union picketers ended with four deaths Smaller steel companies agreed to deal with the C.I.O by 1941 Fair Labor Standards Act (507) ●
In 1938 Congress enacted the Fair Labor Standards Act ○ Provided a host of regulations on business in interstate commerce ○ It established
■ A minimum wage (initially fixed at 40 cents an hour) ■ A maximum workweek of 40 hours and time and a half for overtime ■ Child­labor restrictions on those under 16 ○ Supreme Court declared that child labor was unconstitutional Last Phase of the New Deal (507) ●
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Women: ○ Women sought to work because there was an income struggle since many fathers were unemployed, women were accused of taking jobs from men ○ Many New Deal programs allowed women to receive lower pay than men African Americans: ○ Employment rates were higher than national average ○ Jobless A.A were excluded from state and local relief programs ○ Lynching continued in the South ■ Civil rights leaders feared that they would lose votes to democratic white southerners ○ The New Deal did provide relief and gave A.A’s low paying jobs ■ Jobs were still segregated ○ African American singer Marian Anderson had been refused the use of Constitutional Hall in Washington D.C ○ Eleanor Roosevelt organized Anderson to have a concert at Lincoln Memorial ■ Over 100 African Americans were given middle level positions in federal departments by Roosevelt ○ 1941, an executive order was released to create a committee to assist minorities in gaining jobs Native Americans (509) ●
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John Collier ○ Was a long time advocate of Native Amer. rights ○ Was appointed commissioner of the Bureau of Indian Affairs in 1933 Indian Reorganization Act (1934) ○ The Dawes Act of 1887 was repealed in 1934 with the passage of the Indian Reorganization Act ■ It returned lands to the control of tribes and supported the preservation of Native American cultures Mexican Americans (509) ●
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Mexican Americans were the principal source of agricultural labor in the South West High unemployment and drought in the Midwest caused dramatic growth in white migrant workers Discrimination in the New Deal forced many thousands of Mexican Americans to return to Mexico