Lecture #6: The Disillusioned Twenties and
The Depressed Thirties
Last time I mentioned that one way of making a social commentary was through writing
fiction, and I rattled off a couple of names. However, I didn't really provide any good
examples. Here are a couple:
TS Eliot (1888-1965) wronte in his poem "The Wasteland" (1922
Unreal City,/Under the brown fog of a winter dawn/A crowd flowed over London Bridge,
so many/I had not thought death had undone so many…
And W.B. Yeats in "The Second Coming" (1921) wrote about political barbarism
that would haunt the 30s:
Things fall apart; the centre cannot hold;/Mere anarchy is loosed upon the
world,/The blood-dimmed tide is loosed, and everywhere/The ceremony of innocence in
drowned;/The best lack all conviction, while the worst/Are full of passionate intensity.
Additionally, I talked about the Industrial Revolution and the transformation from the
family farm to the factory. I argued that the early factories did not resemble the big
assembly lines with machines that we see today. Rather, they were houses to centralize
work. Then, to get into our topic of social commentary, we talked a bit about WWI. I
then argued that while social commentary has ALWAYS existed in one form or another,
it reached a real formative period in the years just following the Great War and during
the Great Depression.
Today, we are going to begin talking about the great depression in the US and Europe
so that we have a better understanding of the context in which Orwell wrote. We will
begin by examining the large institutions—states, banks, etc., and continue in more
depth examining the human tragedy of the depression.
Sayegh lecture 6
Great Depression, page 2
I.
Recapitulate Life after the War—Life after the war was hard. People
had to face the fact that family members wouldn't return home, that their
"home" may have been destroyed by fighting because of the introduction
of "total war" (especially people whose villages were on the fronts) and
that they literally had nothing to go home to. But the task of picking up the
pieces had to begin.
A. France loses status as world power
Politically, the Allied Powers saw as much instability as Germany. The French
went through seventeen governments between 1920-1929. They lost lots of
men, their country was in a shambles and they became economically dependent
on the other western nations. In England, it was the beginning of the end of her
status as an international power. The liberals went into permanent declin. The
US was run by business-friendly conservatives who encouraged economic
isolationism, which was disastrous for Europe.
B. Germany and spiraling inflation
Germany of course faced the toughest problems of the western nations. Why?
First, they lost the war and had to take full responsibility. In addition to the
territory Germany gave up in the armistice, they had to pay reparations that were
set by the Allies (basically the French and English here). Those payments were
set at $35 billion. Germany couldn't pay that kind of money, period, and before
1922, the Allies made no concessions on payment plans. Thus, in the twenties,
Germany faced spiralling inflation, political instability (lots of assassinations and
attempts at revolution); in short, the Weimar Republic never really attained a
foothold. An example of the spiralling inflation is this: in 1914, $1:4.2 DM;
beginning of 1923, $1:1800 DM; and fall, 1923 $1=4.2 million DM. People spent
their life savings for a stamp or a turnip. One turnip cost 50 million DM/ This bad
economic situation led ultimately to the rise of nazism.
C. Land decimated
D. People decimated, too
II.
Big Business in the 1920s
A. Pro-Business Governments
Economic growth throughout the 20s had been sluggish at best, and while
industries may have advanced, this was due primarily to modernization
techniques; it didn't accurately depict their ability to compete, especially with the
non-western nations who were beginning to give the western industrial states a
run for their money (esp. japan). In Great Britain, there was a brief spurt of
economic recovery around 1927; in France people were never told the exact
count of the casualties… The twenties were a time of "big business" of a
rejections economically, of the socialism of the prewar years (especially with the
rise of the Soviet Union). These policies set the stage for the 30s.
1. US—the Roaring 20s
2. Riding High on the Market
B. Failure of Labor to make change
1. UK—failure of general strikes
Basically got the franchise across the board in the twenties because of their
efforts during the war. It wasn't good politics to sort of forget them. But their
connections to socialism still proved spooky for countries keeping a watchful eye
Sayegh lecture 6
Great Depression, page 3
on the USSR. You really get a sense of this, I think in DandO when Orwell talks
about the secret meeting with the fake Russian communists.
Since the 20s were a period of business, labor fell to the wayside. Even general
strikes proved ineffective.
GB—1926, dockworkers and miners struck against lowering of prices in the
rhineland. Joined by railwaymen and other workers. Ultimately lost the strike.
MC turned against the workers, cont'd reduction of wages lowering standard of
living of wc. Left a legacy of bitterness among british workers that really
continues to this day—the full monty
France—policy of deflation, just like GB to keep price of manufactured goods
low, kept wages down. 1920s was a period of major strkes but was curiously
followed by a drop in union activity. Primarily because had a labor shortage.
Immigrants from colonies and eastern Europe filled the gaps. France also
passed a social insurance progam in 1930 for sickness, old age and death…this
is more than the other allies did.
Germany workers hurting along with everyone else.
US big violent strikes 1936-37 sit-down in Flint/Detroit area, AFL-CIO.
III.
Factors Leading to Great Depression (in US)
It started in late 1929 with a crash of the NYSE from irresponsible investing and
quickly spread to Europe. Historians provide three causes of the depression:
1. war—distorted world trade which couldn't be readjusted very quickly after
1918. There was overproduction in industry and agriculture, especially with
the rise of the US and Japan. By middle of the 1920s, prices dropped
quickly.
2. No capital to keep Europe going. Needed continued lending by the US to
assure growth in Europe. Great Britain, $1B for US supplies. France lost half
of her foreign investments (1/4 in Russia)
3. US policies—called "irresponsible and self-contradictory." It was a New
Creditor. Their foreign investments skyrocketed during this period. From
$2B in 1913 to $15B c. 1930. But policy of isolationism shielded it from
investments. Specifically, in the US however, there were other problems /
factors leading to the Great Depression. Throughout the 1920s, there was a
lot of the following:
A. Overproduction—farmers produced increasing amounts of goods
throughout the 1920s to make up declining crop prices. To make ends
meet, they had to sell MORE. But it wasn't just the farmers who
overproduced. Large industries like coal and textiles also produced
more than they could sell.
B. Underconsumption—Tied together with overproduction is the fact
that people weren't making lots of money in the 1920s despite the ideal
of a booming economy. As a consequence, they stopped buying
products. Workers produced goods but could never afford to buy
them. Since the goods they produced weren't being bought, many
workers were laid off.
Sayegh lecture 6
Great Depression, page 4
C. Bitterness over international finance—many heads of industries
were bitter about US funds going overseas to help rebuild war-torn
economies. The US sent money in the form of loans to France,
England AND Germany (to help it pay reparations). According to
Calvin Coolidge in response to a query to just cancel war debts 'cause
people couldn't pay up anyway, "They hired the money, didn't they? Let them
pay it!" Continued to have HIGH tariffs for imported goods, so countries
aren't really getting any profit/income to pay debts back. According to the
president of Chase National Bank, "The debts of the outside world to us are
ropes about their necks, by means of which we pull them towards us. Our
trade restrictions are pitchforks pressed against their bodies, by which we
hold them off."
IV.
The Crash of The US Stock Market
A. What Goes Up, Must Come Down—Despite the problems others saw
and felt in the 1920s, the stock market continued to climb. Many
people decided to speculate, seeing the possibilities of getting a quick
buck; however, cash was not always readily available, so people
borrowed money to purchase their stocks and used their stocks to
back up their loans. This would create a circular problem.
B. Black Tuesday, October 29, 1929— the Thursday previous to this,
there was a sharp downturn in selling on the market. However, heads
of big industries like JP Morgan, bought stocks like US Steel to
artificially stabilize the market. This didn't help
C. Panic Selling across Country—it didn't help because word still spread
across the nation that the market faced a huge decline. Consequently,
people were in a panic to sell their swiftly declining stocks. Money was
lost all over the place. Brokerage houses that lent money to people to
buy stocks recalled their loans, but these same people couldn't pay
since their stock's value rapidly plummeted.
D. Recalling Loans to Europe—In addition, the US government thought
that the best way to get back in sync economically was to have the
loans out to Europe recalled. IF the banks received money back from
the Europeans, the American economy would stabilize. But as I've
already argued earlier, this was an irresponsible fiscal policy, as the
Americans knew that there was no way these loans could be repaid so
quickly
E. Banks "lost" people's savings—As a consequence, since banks and
the federal government didn't ensure people's money (today we
generally only bank at places that insure our deposits, usually for
100,000). Many people who were laid off were forced to mortgage
their houses, or were forced onto the streets into shanty towns.
-pre- FDIC
-note "It's A Wonderful Life"
V.
What about the People?
A. Unemployment
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Great Depression, page 5
1. Federal Relief—I've just mentioned that many people lost their
savings. Some have argued that the Great Depression was the
Great Leveller in American Society because it didn't completely
discriminate between rich and poor.
2. Lost Savings = No security
B. Farmers—traditionally, American society views the farmer as the great
independent worker, a worker who doesn't rely on anybody else to
make his living. However, this is imprecise. The farmer is subject to
the whims of the market and to the whims of the buyer to make his
living. If people don't buy his goods, he has to lower the price in order
to sell it.
1. Overproducing—we found this happening in the 1920s. I
mentioned that the farmer compensated the lowering prices of his
goods by producing more. This worked for awhile. Farmers even
tried to work together to halt the economic downturn buy bidding
low on friends' farms to give it back. Additionally the Farmers'
Holiday Assocation was formed and its leader, a man named Milo
Reno, "encouraged people to take a holiday—to keep their
products off the market until they commanded a better price." (US
731). But this wasn't realistic, since prices couldn't get better.
People weren't always buying low because they were stingy. There
genuinely was a drop in demand because PEOPLE COULDN'T
AFFORD IT!
2. Others not buying goods—but the fact remained that people still
weren't buying the goods he grew. So he had a hard time of it in
the 1920s
3. Tenant Farmers—then there were the farmers who didn't really own
their land at all, they merely rented the land which they farmed.
Many of these people (especially from Arkansas, Tennessee and
Texas) left their homes in the South to find a better life in the west.
The Song for today ("Do Re Mi") depicts this mass migration.
4. The Dust Bowl—Many of these migrants also came from what is
known as the Dust Bowl, which you had to read for today. One of
the consequences of overproducing foodstuffs was that the land did
not get enough time to heal itself, to rejuvenate between harvests.
Thus a lot of the thick soil became degraded and suffered from
erosion. Nothing could grow in this wasteland.
Lecture 7: The Great Depression, Cont'd
I.
Introduction
Last time we examined the Great Depression and its causes. First, we
looked at the 1920s and saw that the era of "good times" of jazz and
flappers was not so hot as it tends to be depicted. Farmers had it rough
Sayegh lecture 6
Great Depression, page 6
throughout the 1920s. European countries were really hard hit by the
aftereffects of the war, etc. We then looked at the causes of the
International depression (war, no European capital, bad US fiscal policies)
and of the domestic (US) depression (overproduction, underconsumption,
bitterness over international finance). We then looked at the crash of the
US stock market and very quickly discussed the effects of the crash on the
people.
Today we're continuing our discussion of the depression by taking a
slightly deeper look at the lived experience of people who were "down and
out" during this time. Then I will set us up for our discussion of Orwell on
Monday by an examination of his life and writing.
II.
In the Country
A. Agricultural Output—as mentioned last time, farmers produced more to
make up for dropping prices. They did this on the former grasslands in
OK, KS and TX. These lands consequently suffered erosion and thus
in the drought years of the 1930s the DUST BOWL engulfed them.
B. Tenant Farmers—but as noted in Davidson and Lytle, farm owners
weren't the only people who suffered during this period. Many people
who RENTED the land they worked lost their incomes and their homes
because they couldn't pay their expenses. According to one farm
owner in Missouri responding to the creation of crop subsidies
(payments for reducing agricultural production): "I bought tractors on
the money the government give me and shet o' my renters…They got
their choice—California or WPA." (Gregory 13)
C. Exodus
III.
In the City—but the story of the dust bowl isn't the only tragedy of the
Great Depression. Factory workers, blue and white collar faced lowering
wages, layoffs and evictions from 1930. We get a good sense of urban
terror in Orwell's book, but let's look at the context for a moment.
A. Mass Unemployment—As I mentioned, people in urban areas faced
mass unemployment. Beginning of 1930, jobless was 4m; November,
1930 6m; January 1933 13m; additionally, people who WERE
employed may have not had enough work—they worked part time
struggling to make ends meet. Women, blacks and other minorities
were criticized for taking a good man's job. Thus, people really
suffering
1. the welfare state—we really don't see much attempt to alleviate the
sufferings of the unemployed until FDR takes office and establishes
the New Deal. Hoover remained for the most part committed to the
self-regulation of the economy. But this doesn't mean that he didn't try
to help. He did in fact establish a commission on poor relief to get
companies and workers together to work out a fair shake. He also
tried some public works, like the building of the Coulee and Hoover
Dams. And while in 1931 he did pronounce a moratorium on WWI
Sayegh lecture 6
Great Depression, page 7
debts, he also initiated the Hawley-Smoot Tariff. Publicized as a tariff
to help keep goods at home and get the farmers out of their sorry
situation, the tariff actually made it more difficult for foreign nations to
sell their products; consequently they couldn't earn enough money to
buy American products, and if American products were not purchased,
workers lost their jobs.
B. The Soup Kitchen
C. Hoovervilles—people who couldn't afford their rent were often forced
into the streets. Many cities had ramshackle buildings created of
Crates and boxes that housed families who had been evicted from
their homes.
1. displaced families
D. Is this anything new for the poor?
1. What about Riis?
2. Sacco and Vanzetti?
IV.
George Orwell (1903-1950)
A. Early Life—born in India under the name Eric Arthur Blair.
1. Education—went to Eton College in London
2. Early Career—and joined the Indian Imperial Police Force in
Burma. He did not like this and left in 1922 back to Europe to try to
be a writer
B. Literary Aspirations
1. Poverty, 1922-1927—early work as a journalist was hand-to-mouth.
While I assigned Down and Out as a Great Depression Book, it is
actually autobiographical of his time struggling to find work.
C. Life as a Writer—Once he did become a solid writer, he focussed
much of his writing on social commentary. What is Down and Out but
an indictment of poor living conditions and livelihoods? His other
works are equally about current issues
1. Animal Farm (1945)—often hailed as THE work condemning
totalitarianism, Animal Farm shows just what happens when
someone like Stalin takes control.
2. 1984 (1949)—note that this is written the year that China "falls" to
communism. It too is hailed as an idictment against governments
that control our actions. It is often called a Cold-War Document
because it is written when tensions between the US and Soviet
Union become worse
3. Road to Wigan Pier (1937)—this book talks about the harsh like of
English Coal Miners during the Great Depression. It advocates
labor reform and paints a sympathetic picture of depressionplagued industries in England
4. Down and Out in Paris and London (1933)—as I mentioned, this is
largely autobiographical about his life in the 1920s, but the timing of
publication made it speak to precisely the feelings people had
during the hardest, darkest part of the depression. So, in many
Sayegh lecture 6
Great Depression, page 8
ways then, this book is about the Depression more than it is about
his own life in the 1920s
V.
Conclusion