The 1930s
The Great Depression
The Stock Market Crash
1. Black Thursday – October 24,1929
A. Interest rates up
B. Investors sold shares
C. Prices of stocks plunged
2. Black Tuesday – October 29,1929
A. Prices dropped to an all-time low
B. Investors sold over 16 million shares of stock
3. To cover loans, investor HAD TO sell stock for
huge loses.
Roaring 20s vs Depression
The Depression Begins
1. Late 1929 – 1933 the US economy sank
A.
B.
C.
D.
GNP in 1929 = $103 billion; 1933 = <$56 billion
Incomes were cut in ½
Factories, RRs, businesses were shut down
Millions were unemployed
2. 1930 – 1932 over 5000 banks failed
A. No incoming funds
B. People panicked and withdrew their savings
C. Customers lost life-savings
What Caused the
Great Depression?
1. Global Economic Downturn
A. US put high tariff on imported goods
B. Smoot-Hawley Tariff of 1930
2. Debt – economic practices of the 20s
created long-term problems
A. Credit
B. Interest rates increased
C. Margin Buying (see next slide)
Margin Buying
• Margin buying: when a stock buyer
pays for a stock with a down payment
and takes a loan out for the remainder
of the price
• The buyer hopes to sell the stock
when it increases in price
• The buyer will then pay back the loan
and make money as well
3. Unequal Distribution of Wealth
A. The richest 1% of the population’s income
grew by 63%, the poorest 93%’s decreased
by 4%
B. Majority had no buying power
4. Overproduction
A. Natural business cycle creates recession,
depression
The
Business
Recession or
Cycle
depression
Cut back production;
lay off workers
Industries increase
production and hire
more workers
Surplus piles up
The 1930s
Effects of the Great Depression
Employment Trends
1.
2.
3.
4.
¼ of the work force lost their jobs.
Wages fell dramatically
Immigration to te US decreased
Blacks suffered first; 25-40% of Af Ams
had no jobs by 1933
5. The % of women in the workforce
increased
Life in the City
1. Federal Government did little; Aid came
from:
A. Local governments
B. Charitable organizations (Red Cross)
C. Neighbors
2. Food Shortages
A. Breadlines
B. By 1932 1 of 5 kids in NYC were malnourished
•
Long-term effects: stunted growth, weak bones, dental
problems
Photograph of a Breadline in New York City
During the Great Depression
Depression: Breadlines: long line of people waiting to be fed: New York City: in
the absence of substantial government relief programs during 1932, free food
was distributed with private funds in some urban centers to large numbers of
the unemployed. (Circa February 1932)
3. Homelessness
A. Shantytowns were built outside city
B. Blaming Hoover, they became known as
“Hoovervilles” and newspapers they slept under
were “Hoover Blankets”
Life on the Farm
1. Farmers of the Midwest had SURPLUS
A. Crops were rotting in the fields
B. Had to slaughter cattle because could afford to
feed
C. Banks foreclosed many farms
 Neighbors would help – at auctions they would
buy equipment at very low prices ($.25 for a
plow)
2. Tenant farmers from the South suffered
from lack of food b/c poor soils, no $
3. Migrant workers in the SW were forced
to return to Mexico
A. In the 1930s, 500,000 returned to Mexico
B. If stayed faced severe discrimination, poor
working conditions
Depression’s Impact (in billions)
Consumer
Spending
Food
1929
1933
$19.5
$11.5
Automobiles
$2.6
$0.8
Value of Shares
on NYSE
$89.0
$19.0
Depression’s Impact on Banks
Banking Industry
1929
1933
# of Banks
25,568
14,771
Volume of
Stocks Sold
1.1 Billion
0.65 Billion
Personal &
Corporate
Savings
$15.3 Billion
$2.3 Billion
The 1930s
Daily Life
Family Life
1. Some families united
A. Shared food and $
B. Doubled up in homes
C. Young adults moved back in with parents
2. Other families broke apart
A.
B.
C.
D.
E.
Divorce rates ↓
Birth rates ↓
Marriages were delayed
Suicide rate ↑ (28% more in ’32 than ’29)
Abandonment ↑ (1.5 million were left along)
3. Women faced greater challenges of
keeping the family together
A. Relied on old crafts
B. Took jobs outside the home
C. Daily chores were a challenge
Popular Culture
1. Inexpensive pastimes were popular
2. Movies
A. Survival was the theme; gangster, women were
often the main characters
B. Musicals
C. Comedians: Marx Brothers
D. Cartoons: Mickey Mouse and Donald Duck
http://www.lambiek.net/artists/d/disney/mi
ckey_postcard2.jpg
http://www.loc.gov/exhibits/bobhope/imag
es/vcvg25.jpg
3. Radio was free and at home
A. # of ↑ ; 12 – 28 million in the 30s
B. “Shows” were broadcasts (Orphan Annie)
4. Literature
A. Magazines, comic strips presented heroes:
Tarzan, Superman
B. Reader’s Digest was the #1 selling mag.
C. Novels were escapist and reality
5. Baseball – open to page 681 of OLD
BOOK
http://www.redboots.net/comic
s/supe_history.htm
http://www.redboots.n
et/comics/powers_cos
tume.htm
http://www.tarzan.com/bib/tidjah5.jpg
The 1930s
Hoover’s Failures
Hoover’s Philosophy
1. Did not believe in direct federal relief. It created:
•
•
•
Vast bureaucracy
Large federal budget deficit
Low self-respect
2. Rugged Individualism = relief comes from
individual effort and private enterprise
Why it failed? Put the burden on
local communities and private
enterprises
3. Committee for Unemployment Relief (1930)
Why it failed? Just urged Americans
to donate to charity
Boosting the Economy
1. Hoover did have a more active role in
stimulating the g’vt than the Republican
presidents
2. White House Conference
A. Mtg of top business, labor, and political leaders;
Hoover asked them to maintain employment,
wages
B. Gave optimistic statements
Why it failed? All talk, no change…
Hoover’s Programs
1. $800 million Public Works Programs
A. Hoover Dam
B. stimulate economy
C. make jobs
2. Programs to help Farmers
A. Agricultural Marketing Act of 1929
Why it failed? Farmers refused to
produce <
B. Home Loan Bank Act of ’32
3. The Reconstruction Finance
Corporation (RFC) Feb 1932
A.Lent $ to RRs, insurance
companies, banks
B.Goal = stop bank failures, create
jobs
Why it failed? Ignored small
bussiness, Too little too late…
Strikes
1. Rural Violence
A. Used violence to scare away foreclosure officials
B. Destroyed crops and blocked
2. Bonus Army
A. WWI veterans went to Washington, D.C. to support the
“Bonus Bill” and get $ early
B. Congress vetoed the bill
C. Men stayed
D. Army was sent in to remove veterans
E. The nation’s hatred for Hoover increased
The 1930s
The New Deal:
Restoring the Hope
1932 Election
FDR’s leadership was
encouraging
1. Promised government activism
2. He had an optimistic personality when
delivering his 16 fireside chats
3. > 450,000 letters were sent to the White
House w/in weeks; an average of 5-8000
/week throughout the 30s.
Hundred Days
1. Immediately after taking office FDR
called Congress into session.
2. Over the next 100 days they passed 15
pieces of legislation.
1st Concern: The Banking Crisis
1. March 6, 1933, FDR declared a bank
holiday
2. The Emergency Banking Act, March 9
3. Federal Deposit Insurance Corp., June
1933
Farmers
1. Farm Credit Administration, March 28
2. Home Owners Loan Corp. (HOLC)
Unemployment
1. Federal Emergency Relief
Administration (FERA), May 1933
2. Civil Works Administration (CWA)
3. Civilian Conservation Corps (CCC),
1933
Economic Recovery
1. National Industrial Act (NIRA)
A. Public Works Administration (PWA)
B. National Recovery Administration (NRA)
2. Tennessee Valley Authority (TVA), May
1933
1936 Election
FDR’s New Deal
• 1st New Deal Program (1933 – 1934)
– Tennessee Valley Authority (TVA)
– Public Works Administration (PWA)
– Securities and Exchange Commission (SEC)
• 2nd New Deal Program (1935 – 1938)
– Works Progress Administration (WPA)
– Social Security Act
Legacy of the New Deal
1. Expanded the government
2. US became a “welfare state” (take care of
the people)
3. Saw poverty as an economic problem
4. Supported the Arts
The 1930s
Militarism in Japan
Japan After WWI
1. Expanded territory
A. East Asia – Korea, Taiwan
B. China – Twenty-One Demands
C. Germany’s Pacific Islands north of the Equator
2. Third largest navy in the world
3. Bitter toward the West
A. Felt unequal.
B. 1924 - U.S. banned Japanese immigration.
C. The West did not support Japan’s policy in China.
Social & Political Tensions Rise
1.
2.
3.
Population Explosion
Rapid industrial growth created > need for raw
materials; forced to look elsewhere.
Social and political changes bring problems.
A.
B.
C.
D.
E.
F.
Working class more important
Labor unions increased in membership, power
Urban middle class grew.
Western influences become significant.
need for more and better education.
1925 universal male suffrage increased voting population
(3-14 million)
4. Political weakness becomes evident.
A. Power = nobles and industrialists.
B. Hirohito had military leaders who were against democratic
reforms.
C. Antidemocratic nationalists grew in strength in ’30s
D. Prime Minister Hamaguchi was assassinated in Nov. 1930.
E. Workers and farmers began looking toward military leaders
for order.
5. Militarism in Daily Life
A. Supporters of the military opposed Western influences
B. Favored traditional Japanese practices.
C. Young children learned military drills in schools.
Military Expansion
1. Sept. 1931 Japanese military invade
Manchuria w/o government approval.
2. In the ‘30s, the military used violence against
the government.
A. 1932 – Assassinated a prime minister.
B. 1936 – Army revolt that failed.
3. By 1937 the army and government had
become one.
4. Fearing he would lose his power, Hiroshito
gave no strong opposition.
5. The goal of the military leaders was to conquer
all of Asia
The 1930s
Rise of Fascist Italy
Totalitarianism
1. Goal = total control over every aspect of
citizen’s lives
2. Individual was seen as a servant to the
state with few personal freedoms
3. Used propaganda in books, radio, films,
the arts, and schools to promote
The Rise of Fascism in Italy
1. Nationalists were displeased
A. Italy was not given territory from Central
Powers.
B. No work for returning veterans.
C. Workers went on strike or took over factories.
D. Those in power were terrified
E. Peasants seized the land, inspired by the
Russian Revolution.
F. G’vt split into factions and was powerless
2. The Rise of Benito
Mussolini
A. Working-class
background
B. Was a journalist
when younger, who
supported Socialism
C. During WWI he
became a nationalist.
D. In 1919 he form the
Fascist Party.
http://www.dhm.de/lemo/html/biog
rafien/MussoliniBenito/
3. Political System of Fascism
A.
B.
C.
D.
E.
F.
Glorifies the state at all costs, even war.
Authoritarian government that is NOT communist
Antidemocratic
Aggressive nationalism
Gives the state absolute authority.
Defends private property and the class structure.
4. Compared to Communism
• Similarities
– Flourished in hard
economic times by
promoting social
change
– Dictators, part elite
claim to rule in the
name of national
interest
• Difference
– Comms want world
revolution while
fascists pursue
nationalist goals
– Communists won
support of working
class; fascists of
business leaders,
wealthy landowners,
the lower class
5. Appeal of
A. Promised a strong stable government
B. Revived national pride
C. Projected a sense of power and confidence at a
time of disorder, despair
Mussolini’s Road to Power
1. Conditions got worse after WWI.
2. Mussolini = “a little something for everyone.” He
promised:
A. Landowners → protect private property.
B. Workers → full employment, workers’ benefits.
C. Nationalists → to restore Italy to its former greatness.
3. Blackshirts used attacks against opponents and drove
them from office, starting in ’22.
4. Oct. 1922 the Blackshirts seized Rome w/ no protest
from King Victor Emmanuel II
5. The cabinet resigned and Mussolini was named Prime
Minister.
Mussolini’s Dictatorship
1. Ended democratic rule
2. Established a corporate state (representation w/
industry, not political parties)
A. Banned non-Fascist parties.
B. Syndicates - corporations of workers and employers that sent
representatives to a legislature in Rome to set policies.
C. Strengthened Mussolini’s power.
3. Opposition was persecuted
4. Successes:
A.
B.
C.
D.
Built up the military, ending unemployment
Rekindled patriotism and nationalism
Used all economic and human resources to
rebuild Italy.
Totalitarianism
True or False?
1. The individual is seen as a
servant of the state
2. The individual’s only concern
is providing for him/herself.
3. Art is used to promote the
government.
4. Films were used to
promote the government.
5. Education was free of
political teachings.
6. This type of government
grew out of WWI.
7. Western democracies
supported totalitarianism.
8. Democratic governments
used this type of government
during WWI.
Germany Upset with Treaty of
Versailles
1. Limited the size of army
2. Required a democratic government
3. Reparations - $35 billion
A. French occupation of the Rhur Valley in 1923
B. Inflation
Weimar Republic
1.
2.
3.
4.
Few believed in democracy
1919 voted on a national assembly
Weimar Republic 1919 – 1933
1920 nationalist army tried to overthrow
A. Felt betrayed
B. Suppressed but opposition continued
Rise of Nazism
1. National Socialist Workers’ party (Nazi)
2. Adolf Hitler
3. Brownshirts – private army of veterans and
street thugs
4. 1923 – tried to lead a revoltuion but failed
1. Arrested
2. Mein Kampf blamed Jews, Communists; “Master Race”
5. Depression of 1929 made him popular
6. 1933 became prime minister (Legally)
Hitler in Power
1.
2.
3.
4.
Goal = Totalitarian state
Reichstag burned b4 elections; Hitler blamed
communists
Nazi-dominated Reichstag voted Hitler emergency
powers to deal w/ “Communist threat”
Crushed opposition
A.
B.
C.
5.
Political parties banned
Constitutional rights ended
Government took over industry, churches
Attacks on Jews
A.
B.
C.
1935 Nuremberg Laws
Kristallnacht
Night of Long Knives
The Third Reich
1.
2.
3.
4.
Now had complete power; der Fuhrer
His government = Third Reich
Restored military strength
Controlled the arts and intellectuals;
many left
A. Sigmund Freud
B. Albert Einstein
5. Youth organizations