Unit 13 Notes
Chapter 24
Pg 492
● Franklin D. Roosevelt
○ Only fear, fear itself
● Panics
○ 1819
○ 1837
○ 1873
○ 1893
● Business cycle
○ Ups and downs of economy
● 1930s depression was different
○ Lasted longer
○ Affected more people
■ Middle and working class
○ Great depression
Causes and effects of the Great Depression 1929-1933 pg 493
Wall Street Crash​:
● Stock prices on rize
● Boom in 1920s
● Increase of stock market prices over 18 months
● Many people lose money when stocks collapsed
Black Thursday and Black Tuesday:
● Black Thursday
○ October 24, 1929
○ Unexpected mass of selling
○ Stock prices went down a lot
● Black Tuesday
○ No buyers
○ All sellers
○ Wall street kept falling
Causes of the Crash
Uneven distribution of income:
● Wages had gone up
● Top 5% had 33% of all income
Stock Market Speculation:
● People thought they could get from buying sticks
● People weren't invested in share profits for companies
● Buying on margin
○ Borrowing money for stickers
○ Down payment of 10%
Excessive use of credit: pg 494
● More people were buying cars,and new appliances
Overproduction of consumer goods:
● Increase productivity
● Increase credit
● Workers could not purchase goods if there pay was stagnant
Weak Farm economy:
● God from 1920s did go to farmers
● Drought & severe weather affected farmers
Government policies:
● Govt had faith in companies and did not intervene
● Enacted high tariffs
Global economic problems:
● Vations were more indepent
○ Caused by international banks
○ Manufacturing
○ Trade
● Europe hadn't recover yet from WW1
● US didnt look at Europe's problems
Effects:
● Great depression changed american thinking in policy
● Indicators
○ Health trackers for economy
● 20% of banks closed
● 10 million saving lost
● Unempolument 13 mill
○ 25%
Hoovers pg 496
Responding to a worldwide depression:
● Hoover told business not to change wages
○ Unions not to strike
○ Private charities to increase efforts
Hawley-smoot tariff(1930):
● Tax increase from 31 to 49%
● To satisfy business leaders
● Europe striked back and places high taxes on the US (aw snap)
Debt moratorium:
● 931
○ Bad in both europe and US
● Dawes Plan​ cut
● Hoover propes payment plan for international debt
○ Germany + Britain yes
○ French no
Domestic programs: Too little,Too late: pg 497
● Govt action was needed for economy
● Signed law programs
Federal Farm Board:
● Farj board created in 1929
● Before stock crash
● Help farms stabilize prices
Reconstruction FInance Corporation (RFC):
● Govt owned corporations created by congress
● Took emergency loans from RFC to help stabilize
Despair and Protest
Unrest on the Farms:
● Farms banded together against banks
● Farm holiday association
○ Reverse drop in prices
Bonas march:
● Unemployed WW1 veterans
● Rallied
Democrats: pg 498
● Nominated Franklin D Roosevelt
● As candidate pledged “new deal”
Results:
● Six states that were republicans switched to support roosevelt
● Roosevelt won
● Hoover was mow the “lame duck”
○ Couldn't cope with the depression
F.D.R the man
● Franklin admired theodore
Disability:
● Roosevelt was paralyzed by polio in 1921
● Wealthy enough to retire but did not
● Required assistance with walking
Eleanor Roosevelt: pg 499
● Eleanor, Roosevelt's wife
○ Most active first lady
○ Gave speeches, wrote in columns
New Deal Philosophy
The three R’s:
● Pledged a new deal for america
● Three R’s
○ Relief - people from work
○ Recovery - for business & economy
○ Reform - american economy
Brain trust and other advisors:
● Roosevelt relied on advisors
● Roosevelt advisors were very diverse
The first hundred days:
● People close to panicking
● Roosevelt's wanted to help people
Bank Holidays: pg 500
● Banks were failing
● President ordered banks to close for bank holiday
Repeal of Prohibition:
● President wanted to enact the repeal of prohibition
○ Needed to raise too money
● beer - wine revenue act
○ Legalised beer & wine for sale
○ Eradicated the 21st Amendment and 18th amendment
Fireside chats:
● President went on radio to have fireside chats
● Talked about banks reopening
Financial recovery program:
● The emergency banking relief act
○ Examine financed of banks closed
● FDC ( Federal deposit insurance company)
○ Gave banks 5,000 each
● The Home owners loan
○ Refinancing of small homes to prevent foreclosure
● The Federal Emergency relief
○ Grants of federal money to states and local govts for soup kitchens and
other relief from job losses
● Public works administration pg 501
○ Allocated money to states for roads, bridges, dmas
● The civilian conservation
○ Employed young men
● The tennessee valley authority
○ Experiment in regional development
○ Poorest place in tennesee valley
Industrial recovery program:
● National recovery administration
○ Helped each industry
○ Gave workers rights to organize collectify
Farm Production Control Programs:
● Farmers were given similar program
●
●
●
●
Govt subsidies every acre they plowed iner
Agricultural adjustment administration (AAA)
○ Same fate as NRA
○ Declared unconstitutional
Civil works administration
○ Added to PWA
○ Hired laborers for temporary construction projects
Securities and exchange commision (SEC) pg 502
○ Regulate stock market
The second New deal
Relief programs:
● WPA provided jobs
● Collected a lot of money double relief rate but less wage
● WPA workers worked on bridges
● National Youth Administration (NYA)
○ Loans to sharecroppers
■ tennants
■ farmers
Reform pg 503
● National Labor relations act
● Wager act
● Workers rights to join unions
The Social Security Act
The election of 1936
ALF Landon:
● Challenged Roosevelt
● Criticized democrats
● Business dislike him
Results:
● Roosevelt won
● Won every state except maine and vermont
● Democrats got more support from african americans
Opponents of the New Deal pg 504
Liberal cities:
● Liberals criticized new deal
○ Too much for business
○ Too little to unemployment
Conservative Critics:
● Relief programs could be socialist or communist
● Businesses alarmed
○ Increase of regulations
○
○
Pro Union stance
Finances of govt programs
Demogagues
Father Charles E. Coughlin:
● Founded national union for social justice
● Attacked on new deal became anti semitic
Dr Francis E. Townsend:
● Hero to senior citizens for secure income
● Retired person received $200 month
Cout-recorganzieted plan: pg 505
● Roosevelt did not appoint any supreme court justices
● “Court- packing” bill
○ President can append any supreme court justices for anyone older than a
certain age
Reaction:
● Outraged by R&D
● Tamper to check & balances
● Accused president of wanting more power becoming a dictator
Aftermath:
● Justices were already leaving
Rise of the Unions pg 506
Formation of the C.I.O:
● Unions grew
● Tension grew
● Conflicts grew between rival unions
● AFL were mostly white skilled workers
● Groups within AFL wanted to expand their inclusion
● Committee of Industrial Organizations (C.I.O)
○ Industrial unions joined together together to make this
Steel:
● U.S steel corporation recognized the C.I.O
● Almost all small steel companies cooperated with C.I.O
Fair Labor Standards Act pg 507
● Minimum wage fixed 40 cents an hour
● Maximum 40 hours a week
● Child labor was restricted on those under 16
Last Phase of the New Deal
Recession 1937-938:
● Banks were stable again
● Business were making more money
● Economy went backwards again and into recessionary period
● Govt was part of the blame
● Social security tax reduced buyers spending
Keynesian economy:
● Keynesian theory
○ Govt needs to spend more than tax revenue to initiate economic growth
○ Increase investment and create jobs
Life During the Depression
Women:
● Added pressure on families
● More women got jobs to help
● Women accused of taking jobs from men
● New deal programs had women making less money than men
Dust Bowl Farmers
● Drought in early 1930s ruined groups in great plains
○ Area became dust bowl
African Americans
● Discrimination continued
● Bad effects of AA who were hired and fired
● Unemployment was higher
● African Americans excluded from relief programs
Improvements: pg 509
● New deal provided relief for African Americans
○ Low paying jobs from WPA and CCC
● Moral support from Eleanor Roosevelt
Fair Employment Practices Committee:
● Executive order to assist minorities in getting jobs
● Only did this after A. Philip Randolph threatened a march in washington
Native Americans
Indian Reorganization Act:
● John Collier
○ Advocated for Native american rights
● Dawes Act was repealed
● Indian Reorganization Act
○ Supported preservation of NA culture
Mexican Americans:
● Faced discrimination
● New deal forced many Mexican Americans to move back