World War I left Americans exhausted - Debate over League of Nations had divides them Economy adjusted as cost of living doubled - Farm & factory orders were down - Soldiers took jobs from women& minorities - Farmers & factory workers suffered Many Americans responded to the stressful conditions by becoming fearful of outsiders - Nativism swept nation - prejudice against foreign-born people - Isolationism became popular - pulling away from world affairs The spread of Communism was perceived as a threat to America (The Red Scare) Communism - economic, political system, singleparty government - ruled by dictator - no private property 1919 - Vladimir Lenin & the Bolsheviks set up Communist state in Russia U.S. Communist Party formed (70, 000 radicals joined) - Some Industrial Workers of the World join Several bombs were mailed to government & businesses - People feared Red conspiracy Attorney General A. Mitchell Palmer took action - Appointed J. Edgar Hoover as special assistant - They hunted down Communists, socialists, & anarchists (Palmer Raids) - Anarchists oppose any form of government - Palmer Raids trampled civil rights & failed to find evidence of conspiracy Anti-Immigrant Attitudes had been growing in America since the 1880s - Southern & Eastern European immigrants Need for unskilled labor decreased in the U.S. after WWI Nativists believed fewer immigrants were needed since their were fewer unskilled jobs available, Also thought immigrant anarchists and socialists were Communist 1919 - 1921, number of immigrants grew almost 600% 141,000 to 805,000 Nativsists pressured Congress to limit immigration from certain countries (Southern & Eastern Europe) The Emergency Quota Act of 1921 set up a Quota system - Established the maximum number of people who could enter the U.S. from each country - sharply reduced European immigration 1924 – Amended law limited European arrivals to 2% of number of its national living in the U.S. in 1890 - Discriminated against southern, eastern Europeans (Didn’t arrive until after 1890) Law also prohibited Japanese immigration; - Caused ill will between U.S. & Japan - Japan had faithfully kept the Gentlemen’s agreement to limit emigration to the U.S. that had been negotiated by Teddy Roosevelt in 1907 - Many Canadians & Mexicans entered Government didn’t allow strikes in wartime - 1919 over 3,000 strikes Employers were against raises& unions; - Labeled strikers as Communists Boston police went on strike over raises & the right to unionize - Hadn’t received a raise since beginning of WWI) Mass. Governor Calvin Coolidge ended strike by calling out the National Guard - “there is no right to strike against the public safety by anybody, anywhere, anytime” Replaced strikers with new policemen People praised Coolidge for saving Boston if not the nation from communism - He was nominated as Warren G. Harding’s running mate in the 1920 election September1919 - Steel workers went on strike for the right to negotiate shorter working hours & a living wage - Also wanted union recognition & Collective bargaining rights Steel Companies hired strike beaters & used force (Police, Federal troops & state militias) Used propaganda to link strikers to communist Later negotiated Talks deadlocked Wilson appealed to both sides& the strike ended January 1920 1923 - report on the harsh working conditions shocked the public Steel companies agreed to a 8-hour day but no union 1919 - John L. Lewis became head of United Mine Workers of America Led strike & defied a court order to return to work Coal minors accepted arbitration - Miners received 27% wage increase - Lewis became national hero 1920s - union membership dropped from over 5 million to 3.5 million Immigrants were willing to work for less Hard to organize workers due to different languages Farmers who moved to the city were used to relying on themselves Less than 1% of African Americans & just over 3% whites were in union SSUSH16: The student will identify key developments in the aftermath of WW I. Explain how rising communism and socialism in the United States led to the Red Scare and immigrant restriction. 1. What is communism? Socialism? 2. What was the Red Scare? Karl Marx – The father of Communism Communism – Economic system in which the government owns all aspects. Red Scare - The fear in the United States that Communism would spread. Palmer Raids - Raids in the United States that were implemented to prevent Communist from coming into the United States. The Harding Presidency Warren G. Harding elected president Wouldn't rock the boat Said America needed normalcy Problems arose concerning arms control, war debts, & the reconstruction of war torn countries after WWI 1921 - President Harding hosted Washington Naval Conference Invited major powers, Russia wasn’t invited due to communist government Sec. of State Charles Evans Hughes proposed disarmament & others agreed 1928 – Fifteen countries signed the Kellog-Briand Pact - Nations denounced war as national policy - Pact was ineffective since it didn’t provide for means of enforcement Britain & France owed the U.S. $10 billion in war debts Could pay money by selling goods to the U.S. or by collecting reparations from Germany 1922 - Fordney-McCumber Tariff raised taxes on U.S. imports to 60% - Britain, France couldn’t sell enough goods to repay U.S. Germany defaulted on its reparation payments Dawes Plan - U.S. investors lent reparations money to Germany - Britain, France repaid U.S. Dawes Plan caused resentment on all sides - Britain & France didn’t think the U.S. paid its fair share for WWI - U.S. thought Britain & France were financially irresponsible Harding favored a limited government role in business,& social reform He believed that government was getting the way of people's lives and businesses Created Bureau of the Budget to help the government more efficiently Had capable men in cabinet Secretary of State Charles Evans Hughes went on to become chief justice of Supreme Court , Secretary of Commerce Herbert Hoover had done great job distributing foods & refugees in WWI Secretary of Treasury Andrew Mellon cut taxes & reduced national debt Harding also appointed the Ohio gang – His corrupt friends who caused him embarrassment - Were unqualified - They stole money from the government Ohio Gang hurt Harding's presidency Teapot Dome scandal— naval oil reserves were used for personal gain Government had set aside oil-rich public at Teapot Dome Wyoming & Elk Hills California for use by the U.S. Navy Interior Secretary Albert B. Fall leased land to private companies -He received over $ 400,000 in loans, bonds, & cash Fall became the first person to be convicted of a felony while holding a cabinet post - Fined $100,000 & spent a year in prison Harding tried to help his image by going on a speaking tour in the west - Had heart attack & Died on August 2, 1923 VP Calvin Coolidge assumed presidency - Restores faith in government 1924 – Coolidge was elected president Warren G Harding- Took over as President after Wilson, only stayed in office three years before passing away. The Business of America Calvin Coolidge wanted to minimize government interference in business “ the chief business of the American people is business” He favored policies that would keep taxes down & business profits up , & give businesses more credit to expand Coolidge’s approach worked in the 1920s - Lower income taxes gave people more money to spend - Wages rose and new technology increased productivity Henry Ford made cars affordable - Used assembly line 1908 - Model T hit the market (cost $825) By 1920's - Model T came off the line every 10 seconds Cars changed life paved roads, gas stations, motels, shopping centers A. Ford used cheap foreign labor. B. Ford reduced transportation costs. C. Ford avoided tariffs in the United States D. Ford reduced the raw materials used in production. Route 66 from Chicago to California 1920s – 1st Automatic traffic signals used in Detroit 1927 – Holland Tunnel opened to connect New York City & New Jersey (1st underwater tunnel specifically designed for cars) Gave mobility to rural families, women, & young people Enabled workers to live farther from jobs - Led to urban sprawl (spread of cities) Auto industry became economic base for some cities Boosted oil industry Late 1920s - 1 car for every 5 Americans 1927 – The Model A replaced the Model T Enabled customers to order a variety of colors Traveled faster & smoother Airplane industry started as mail service for U.S. Post Office Weather forecasting began - Planes carried radios& navigation tools 1926 – Henry Ford built trimotor plane Charles Lindbergh & Amelia Earhart flights helped promote airlines - 1927 - Charles Lindbergh became the 1st person to fly nonstop across the Atlantic - 1928 - Amelia Earhart became 1st women to fly nonstop across the Atlantic 1927 - Lockheed Company produced popular transport plane of the decade (Vega) 1927 - Nations 1st commercial airline formed (Pan American Airlines) - Brought cities closer together - Began transatlantic commercial flights 1920s were prosperous times for America 1920 to 1929 – Average annual income rose over 35%, from $522 to $705 People tired of sacrificing Ready to spend money New inventions - Refrigerator - Vacuum cleaner - Electric stove - Wrist watch Prosperity was a result of cheap power 1920's - electricity and petroleum become widely available Widespread electricity made possible by Samual Insull - He formed GE Company with Thomas Edison Electricity along with petroleum helped to transform the nation Factories used electricity to run machines Development of alternating current made it possible to distribute electricity over longer distances - Gave electricity to suburbs By end of 1920s, more homes begin to have electrical appliances Appliances made housework easier & freed women for other activities - Refrigerators , cooking ranges, & toasters Appliances coincided with trend of women working outside home Advertising agencies began hiring psychologists to learn to appeal to public (Social engineers) Made brand names familiar nationwide Pushed luxuries as necessities Results were impressive - “Say it with Flowers” slogan doubled florists business between 1914 & 1924 - “Reach for a Lucky instead of a sweet” caused people to choose cigarettes over candy - 1923 – Listerine advertisements warned about the disastrous effects of halitosis Businesspeople began working with service groups (Rotary, Kiwanis, & lions) - Raised money for charities & boosted the image of the businessman - promoted selves as benefactors of society Most Americans believed prosperity would last forever - Productivity increased, & businesses expanding - Several mergers in auto industry, steel, electrical equipment, utilities - Chain stores developed - National banks were allowed to create branches Not everyone became wealthy Iron, railroad industries weren’t prosperous Income gap between workers & managers grew - 1929 - 60% of Americans lived in poverty Farmers - food prices fell after World War I - New machines increased productions - Many farmers couldn't afford new machines - Drought and insects also damaged crops - Government refused to help farmers Labor - violent strikes following WWI led to antiunion feelings across the country - Court rulings caused the unions to lose power Businesses began provided easy credit to lure customers - “a dollar down and a dollar forever” Installment plan - pay for goods over extended period with interest Banks provided money at low interest rates Some economists & business owners thought installment buying was becoming excessive - Thought it was a sign of fundamental weakness behind superficial prosperity Most focused their attention on the present & didn’t worry about the future - Thought prosperity would last forever A. greater population density in central cities. B. growth of suburban areas around urban centers. C. increased production of coal in the United States. D. increased dependence on railroads for the transport of goods. Identify Henry Ford, mass production, and the automobile. 3. Who was Henry Ford? 4. What was mass production? 5. How did Ford change industry and production? Consumerism -The practice of people buying and using products. Changing Ways of Life 1922–1929, nearly 2 million people left farms & towns each year Largest cities were New York, Chicago, Philadelphia - 65 other cities with 100,000 people or more In 1920s - people caught between rural & urban cultures - close ties, hard work, strict morals of small towns - anonymous crowds, moneymaking, pleasure seeking of cities 1920 - 18th Amendment launched Prohibition Era - supported by religious groups in rural South & West - Said alcohol made workers inefficient & increased violence Prohibition -production, sale, transportation of alcohol illegal Government didn’t budget enough money to enforce the law People found ways to get around prohibition Speakeasies (hidden saloons, nightclubs) become fashionable People built their own stills to distill liquor (Bathtub Gin) - Prescriptions for alcohol & sacramental wine skyrocketed (legal) Bootleggers smuggled alcohol from surrounding countries Prohibition contributed to organized crime in major cities - Wanted to make money off illegal liquor Underground gangs battled for control of the booze racket 1923 – Al Capone emerged as leader of organized crime Controlled Chicago liquor business by killing competitors By mid-1920s - only 19% of population supported Prohibition 1933 – 21st Amendment repealed 18th Amendment A. the President vetoed the Amendment. B. women demanded the right to suffrage. C. the Supreme Court ruled it unconstitutional. D. Congress and the states agreed to repeal it. Eighteenth Amendment - This Amendment outlawed the unlawful consumption, production, and sale of alcohol. The Twenties Woman Flapper emancipated young woman, adopts new fashions & attitudes - Wore short bright colored dresses (1inch above the knees) - Skinned tone stockings - Cut their hair in boyish bobs & dyed it jet black - Went to events without chaperones Many young women want equal status with men & became assertive Middle-class men & women began to see marriage as equal partnership - housework, child-rearing still woman’s job Elders disapproved of new behavior and its promotion by periodicals& ads Casual dating began to replace formal courtship Women subjected to double standard (less sexual freedom than men) - must observe stricter standards of behavior Women were torn between old & new standards Employers replaced female workers with men after WWI Female college graduates became teachers, nurses, & librarians Many women became clerical workers as demand rose Some became sales clerks, or factory workers Few became managers& were always paid less than men Birthrate dropped partly due to more birth-control information - Margaret Sanger was arrested for passing out birth control information - She said that women couldn’t be free until they could choose - Most people considered birth control immoral - 1918 – New York Supreme Court said it was legal for doctors to give out birth control information Manufactured products & public services gave homemakers freedom Housewives could focus more on families & pastimes rather than housework Marriages increasingly based on romantic love & companionship Children spent most of day at school & organized activities - Adolescents resisted parental control (Peer pressure) Parents began relying on manuals of childcare & opinions of experts Working-class & collegeeducated women juggled family & work Nineteenth Amendment - This amendment stated that voting could not be restricted based on gender. Education and Popular Culture High school population increased dramatically in 1920s due to: - prosperity - higher standards for industry jobs Pre-1920s - High school for college-bound students 1920s - High schools began offering vocational training Public schools prepared immigrant children who spoke no English School taxes increased as school costs rose sharply School cost doubled between 1913 & 1920 Then doubled again by 1926 Mass media shaped mass culture& took advantage of increased literacy By 1914 - hundreds of local newspapers were replaced by national chains Gave readers more expansive coverage form the big cities 1920s - mass-circulation magazines thrived 1922 - Reader’s Digest founded 1923 - Time founded Radio was most powerful communications medium of 1920s Connected the whole country Networks provided shared national experience - Enabled people to hear the news as it happened 1920s - Many people had extra money& leisure time to enjoy it Crowds attended sporting events Athletes were glorified by mass media ◦ Babe Ruth ◦ Andrew Rube Foster – Founded the Negro National League ◦ Gertrude Ederle – 1st women to swim the English Channel ◦ Helen Wills – Pro tennis star Silent movies were already a national pastime 1927 – The Jazz Singer was released - 1st major movie with sound 1928 – Walt Disney’s Steamboat Willie was released - 1st animated movie with sound Introduction of sound led millions to attend every week “talkies” Playwrights & composers broke away from European traditions George Gershwin merged traditional elements with jazz to create American music Painters portrayed American realities & dreams - Georgia O’Keeffe painted intensely colored canvases of New York Sinclair Lewis was first American to win Nobel Prize for literature - Criticizes Americans conformity & materialism F. Scott Fitzgerald revealed negative side of era’s gaiety & freedom Writers soured by American culture & war settled in Europe - Saw little hope in the future - called Lost Generation Expatriate Ernest Hemingway introduced simple & tough, American style - Criticized glorification of war Describe the impact of radio and the movies. 6. How did radios affect Americans? 7. How did movies affect Americans? The Harlem Renaissance 1910–1920 - Great Migration of thousands of African Americans - moved from South to Northern cities By 1920 - over 40% of African Americans live in cities Racial tensions escalated in North -Summer1919 – About 25 urban race riots took place African-Americans continue to migrate in the 1920s 1900 - National Association for the Advancement of Colored People founded (NAACP) - protested racial violence - W.E.B. Du Bois led parade of 10,000 men in New York to protest violence NAACP leader James Weldon Johnson fought for civil rights legislation - NAACP antilynching campaign led to drop in number of lynchings Many African Americans migrated to Harlem - Neighborhood on the Upper West Side of New York’s Manhattan Island 1920s – Harlem became world’s largest black urban area - People from U.S. & Caribbean Harlem Renaissance - A literary & artistic movement celebrating AfricanAmerican culture - Expressed pride in African-American experience Claude McKay’s poems urged blacks to resist prejudice & discrimination - Also expressed the pain of living of life in the ghettos & the strain of being black in a world dominated by whites Langston Hughes’s poems described difficult lives of working class - many written in jazz, blues tempo Zora Neale Hurston showed folkways, values of poor, Southern blacks Influence& popularity of Harlem Renaissance reached beyond black audience Musical comedy Shuffle Along launched movement - Was popular with white audiences African-American performers won large followings Paul Robeson - Became a major dramatic actor in London & New York Jazz born in early 20th century New Orleans Spread across U.S. Became the most popular form of music for dancing Trumpeter Louis Armstrong made personal expression key part of jazz - Most influential musician in jazz history Edward Kennedy “Duke” Ellington - jazz pianist, orchestra leader - one of America’s greatest composers Cab Calloway & Armstrong popularize scat - improvised jazz singing using sounds instead of words Bessie Smith - blues singer, perhaps best vocalist of decade - 1927 – She became the highest paid black artist in the world Describe modern forms of cultural expression; include Louis Armstrong and the origins of jazz, Langston Hughes and the Harlem Renaissance, Irving Berlin, and Tin Pan Alley. 8. What was the Harlem Renaissance? 9. How did the following people / places / events influence the renaissance? - Louis Armstrong - Jazz - Langston Hughes - Irving Berlin - Tin Pan Alley The Great Depression Begins Under President Warren G. Harding, the Post WWI US economy remained relatively strong. Calvin Coolidge took over after Harding died of a Heart Attack. Coolidge supported big business and believed strongly in the laissez-faire economic system. “The business of the American people is business” For most of the 1920’s it appeared that Coolidge was right, the government should not interfere. The stock market began to do very well, with prices reaching new highs and continuing to climb. Many people began to buy on speculation, or bought on the margin (investors purchase stock for only a portion of what they cost, and borrow the rest of the money). Technology also helped produce the booming economy. Ford’s assembly line and the automobile. The mechanized assembly line led to lower prices and to this concept known as consumerism, the practice of people buying and consuming products. The problem with this was that most people were buying on credit (borrowed money), and later would be unable to repay what they owed. Problems began threatening economic prosperity by the end of the 1920s Farm debt - many farmers were forced to sell in the 1920's Consumer debt - many people were buying goods on credit More goods then buyers - prices rose faster than wages Declining Trade - 1920's U.S. raised tariffs other countries raised tariffs to retaliate Important industries struggled Income disparity - Consumers & farmers went steadily deeper into debt Key industries like railroads, textiles, steel barely made profit Replaced by other forms of transportations Mining, lumbering expanded during were no longer in high demand Coal especially hard-hit due to availability of new energy sources - Hydroelectricity, fuel oil, & natural gas Boom industries - automobiles, construction, consumer goods weakened Housing starts declined - Affected many related industries International demand for U.S. grain declined after war - prices dropped by 40% or more Farmers boosted production to sell more - Caused prices to drop further Farm income declined & farmers defaulted on loans Rural banks failed Congress attempted to pass the McNary- Haugen bill to help farmers - Price-supports - government bought surplus crops at guarantees prices - President Coolidge vetoed price-support bill 1920s - rich got richer & poor got poorer Prices rose faster that wages 70% of families earned less than minimum for decent standard of living - $2500 annually Most couldn’t afford flood of products factories produce Many people had been purchasing goods on credit (buy now, pay later) Businesses gave easy credit & consumers piled up large debts Consumers had trouble paying off debt & cut back on spending Democrat Alfred E. Smith - four times governor of New York Republican Herbert Hoover has served as secretary of commerce under Warren Harding & Calvin Coolidge U.S. had experienced prosperity under Republicans in 1920s Hoover won an overwhelming victory Late 1920s – Some economist warning of weaknesses in the economy - Most Americans ignored them People began investing in stock market - Looked like an easy way to make money Dow Jones Industrial Average was used as barometer of the market’s health - Measure based on the stock of 30 representative large firms trading on the New York Stock exchange tracks state of stock market 1920s - stock prices rose steadily “Bull Market” People rushed to buy stocks & bonds to make a quick profit - Many engaged in speculation - buy on chance of a quick profit - Began Buying on margin - pay small percent of price, borrow rest September 1929 stock prices peaked & then fell Many investors lost confidence & began selling October 24, 1929 Market took plunge & many panicked investors unloaded their shares October 29, 1919 Stock market crashed (Black Tuesday) - Shareholders sold frantically - Millions of shares had no buyers - People who bought on credit were left with huge debts - Others lose most of their savings Great Depression - economy plummeted & unemployment skyrocketed - lasted from 1929–1940 After crash, people panicked & withdraw money from banks Banks that invested in stocks failed& people lost their money 1929 to1932 - gross national product was cut nearly in half - 90,000 businesses went bankrupt 1933 - 25% of workers were unemployed Those with jobs received cuts in hours & pay Great Depression limited U.S. ability to import European goods Hawley-Smoot Tariff Act set highest protective tariff ever in U.S. Other countries couldn’t earn American currency to buy U.S. goods - Many countries retaliated by raising their own tariffs International trade dropped & unemployment soared around world Factors leading to Great Depression: Declining Trade - Tariffs & war debts cut down the foreign markets for American goods Farm problems - Many farmers were forced to sell Easy credit – Borrowed money to invest in market Income disparity Federal government kept interest rates low & encouraged borrowing A. stock market speculation B. the effects of World War II C. success of the U.S. farm economy D. foreign boycotts of U.S. products SSUSH17: The student will analyze the causes and consequences of the Great Depression. Describe the causes, including overproduction, under-consumption, and stock market speculation that led to the stock market crash of 1929 and the Great Depression. 10. Describe the following causes of the Great Depression - Overproduction - Under consumption - Speculation - The Crash of 1929 Speculation - Making high risk investments in hopes of high return. Overproduction - When markets have more of a product than consumers want. Under-consumption - When consumers are reluctant to buy all that has been produced. Buying on the margin - Investors purchase stocks for only a portion of what they cost, then borrow the difference and paid interest on the loan. Stock market crash of 1929 - This was called black Tuesday, and is seen as the signifying event that started the Great Depression Great Depression -From 1929 until WWII-severe downward economic trend resulting in low production of goods and high unemployment Hardship and Suffering during the Depression People lost jobs & were evicted from homes Had to live in parks or sewer pipes Shantytowns settlements consisting of shacks, arose in cities People dug through garbage & begged - Soup kitchens offered free or low-cost food - Bread lines - people lined up for food from charities & public agencies African Americans & Latinos had higher unemployment & lower pay Minorities were also targets of violence (Lynching or deportation) Most farmers could grow food for their families About 400,000 farms were lost through foreclosure - Many became tenant farmers Farmers in Great Plains exhausted land through overproduction 1930s - drought & windstorms scattered for hundreds of miles Dust Bowl - area from North Dakota to Texas that was hardest hit Many farm families migrated to Pacific Coast states (Route 66) - California towns became overcrowded - Many people who moved west were from Oklahoma (Okies) Explain the impact of the drought in the creation of the Dust Bowl. 11. How did drought affect the depression? 12. How did the Dust Bowl effect the depression? Family was source of strength for most Americans Believed in traditional values and emphasized the importance of family unity Many families entertained themselves with board games & radio - Monopoly was invented in 1933 Some families broke apart under strain of making ends meet Many men used to working & supporting families had difficulty coping ◦ Couldn’t find jobs ◦ Manny stopped trying Some men vena bonded their families - About 300,000 hoboes wandered country on railroad box cars No federal system of direct relief - cash or food from government Women Struggle to Survive Women worked hard to help their families survive the adversity Homemakers budgeted carefully, canned food, & sewed clothes Women worked outside home & were resented by unemployed men Early 1930s – Some cities refused to hire married schoolteachers Many women suffered in silence & were ashamed to stand in bread lines Poor diets & health care led to serious health problems in children Lack of tax revenue led to shortened school year & school closings Teenagers left home & rode trains in search of work & adventure - Many died or were beaten 1928 to 1932 – suicide rate rose over 30% Admissions to state mental hospitals tripled People gave up health care, college Put off marriage & children Stigma of poverty didn’t disappear & financial security became goal Many people showed great kindness to strangers - Gave food, clothing & a place to stay People developed habit of saving and thriftiness Explain the social and political impact of widespread unemployment that resulted in developments such as Hoovervilles. 13. How did unemployment affect Americans during this time? 14. What were Hoovervilles? Soup kitchens\Bread lines - These provided food for the poor in order to have anything to eat. Hoovervilles - Shanty towns that developed in parks around major cities during the Great Depression. Dust Bowl – Soil in the Midwestern United States dried up and was swept away by high winds in the early 1930’s Hoover Struggles with the Depression President Herbert Hoover told Americans the economy was sound Many experts believed depressions were normal part of business cycle - Believed that it was best to do nothing & let the economy fox itself Hoover believed government should foster cooperation between competing groups Many believed that people should succeed through their own efforts People should take care of own families & not depend on government Hoover opposed any form of federal welfare or direct relief to the needy - Believed that hand-outs would weaken people’s self respect & moral fiber - Said that charities & local organizations should help the less fortunate Hoover called meeting of business, banking, labor leaders to solve problems - Asked them to work to together to solve the problems Created organization to help private charities raise money for poor Hoover’s authorized the construction of the Boulder Dam on Colorado River w - later renamed Hoover Dam - Provided electricity, flood control, water to states on river basin People began blaming Hoover & Republicans for the economic problems Democrats won House of Representatives Republican Senate majority down to 1 vote People Grew frustrated with the Depression Farmers try to create food shortages to raise prices ◦ Burned fields rather than sell crops at a loss ◦ Some declared a farm holiday People began calling shantytowns “Hoovervilles” Hoover softened his stance on no government intervention in the economy Hoover negotiates agreements among private entities Backs Federal Farm Board (organization of farm cooperatives) - buy crops, keep off market until prices rise Got large banks to establish National Credit Corporation - Loaned money to smaller banks to prevent bankruptcy Late 1931 - Hoover persuaded Congress to pass measures reform banking, provide mortgage relief, & funnel federal money into business investment - Federal Home Loan Bank Act lowered mortgage rates Reconstruction Finance Corporation – Authorized emergency funds for businesses - Hoover believed that the money would tickle down to average citizens through job growth & higher wages - Critics said people couldn’t wait for the money to trickle down Hoover’s measures didn’t improve economy before presidential election 1932 – Incident with World War I veterans further damaged Hoover’s image & public morale 1924 – Congress agreed to pay a bonus to WWK vets who had not been adequately compensated for wartime service - Bonus was to be paid in 1945 in the form of cash & a life insurance policy Bonus Army – WWI veterans went to D.C. in 1932 to support Patman Bill: - called for immediate payment of bonus to WWI vets ($500 per soldier) Hoover opposed bill Believed they were communists He respected their right to protest (Provided food & supplies for shantytown) June 17, 1932 - Senate voted down Patman Bill Most veterans left Washington About 2,000 stayed to speak to Hoover Hoover fears violence& called on U.S. Army to disband Bonus Army - Led by General Douglass Macarthur & Major Dwight Eisenhower Infantry tear gassed over 1,000 people, including children Many people were injured (11 month old baby died) Public was stunned & outraged by government’s actions Herbert Hoover - President of the United States that was elected in 1928. Most people blamed him for the Great Depression The New Deal Democrats nominate NY governor Franklin Delano Roosevelt - reform-minded; projected friendliness & confidence Democrats overwhelmingly won presidency, Senate, & House Roosevelt had to wait 4 months to take over 20th Amendment wasn’t rarified until 1933 (Move inauguration to January) FDR worked with advisors known as “Brain Trust,” to formulate policies to alleviate problems New Deal – FDR’s program to alleviate the problems of the Great Depression focused on 3 Rs - Relief for needy - Economic recovery - Financial reform March 9 to June 16, 1933 - FDR took office & launched Hundred Days Congress passed over 15 major New Deal laws that expanded the federal government’s role in the nation’s economy March 5, 1933 – one day after taking office FDR declared a bank holiday & closed all banks to prevent further withdrawals Emergency Banking Relief Act - Permitted Treasury Dept. to inspect banks - Sound banks were allowed to reopen - Banks that needed help received loans - Insolvent ones remained closed (unable to pay bills) Bank Holiday revived public confidence in banks - Believed that the banks remained open were in good shape FDR gave fireside chats - radio talks explaining New Deal measures March 12, 1933 – FDR gave 1st fireside chat the day before the banks reopened after holiday - Discussed need for public support of government, banks Congress took another step to reorganize the banking system Glass-Steagall Act Established Federal Deposit Insurance Corporation (FDIC) - insured individual bank accounts up to $5000 - Regulates banking practices ( forced them to act cautiously with money) A. excessive government regulation of banks. B. the federal government's ownership of banks. C. an excessive amount of currency in circulation. D. the lack of protection for funds deposited by individuals in banks. Federal Securities Act – Required companies must give all information on stocks Securities and Exchange Commission (SEC) created to regulate stock market FDR got law allowing production of some alcoholic beverages 21st Amendment repealed prohibition by end of 1933 Roosevelt administration implemented programs aimed at helping farmers & other workers to stimulate economy Agricultural Adjustment Act (AAA) raised food prices by lowering supply - Government paid farmers not to plant crops Tennessee Valley Authority Created jobs renovating & building dams - Also provided flood control & hydroelectric power to region Civilian Conservation Corps (CCC) - public works jobs for young men 18 to 25 - Built road, planted trees & helped in soils erosion & flood control projects - Men sent $25 out of $30 home to family each month SSUSH18: The student will describe Franklin Roosevelt’s New Deal as a response to the depression and compare the ways governmental programs aided those in need. Describe the creation of the Tennessee Valley Authority as a works program and as an effort to control the environment. 15. What was the TVA? What was it created to do? National Industrial Recovery Act - established codes of fair practice for industries Created National Recovery Administration (NRA) - NRA sets standards, prices, limits production 1933 - Public Works Administration (PWA) was established as part of the NIRA – It provided money to states to create jobs chiefly in the construction of schools & other community buildings Home Owners Loan Corporation gave loans to prevent foreclosures Federal Housing Administration gives loans for mortgages & repairs (FHA) Federal Emergency Relief Administration— direct relief to needy Deficit spending - spending more money than government takes in - funded New Deal Opposition rose when the New Deal didn’t stop the Depression Liberals didn’t think New Deal did enough to help poor, & fix economy Conservatives believed Roosevelt used the New Deal to control business & socialize economy Supreme Court struck down NIRA & AAA as unconstitutional FDR proposed “Court-packing bill” - Change the Supreme Court from 9 to 15 justices - Would enable FDR to appoint 6 new justices Congress & press protested Starting in 1937 - justices retire & FDR appointed seven new ones Governor of Louisiana "King Fish" Built schools and hospitals Ruled Louisiana like a dictator Wanted to be president Decided to challenge FDR Offered new deal "Share our wealth" - Called for every family to get yearly income money to buy food and housing - Taxed the rich heavily Made enemies in his attempt to become president - Shot and killed in 1935 A. FDR's New Deal programs are unsuccessful. B. The New Deal programs are purely the creation of FDR. C. FDR has unwisely created the "Alphabet Soup" programs. D. FDR must end his "Alphabet Soup" programs immediately. Franklin Delano Roosevelt - Elected President in 1932 by an overwhelming majority. He was the first President to use the radio effectively. Implemented the New Deal. New Deal - Legislation and programs implemented during the Great Depression to provide economic relief and recovery. First Hundred Days - This was the time period from the inauguration in March through the following June in which many New Deal programs were implemented. Civilian Conservation Corps - This program launched a number of public works such as the construction of dams, highways, and bridges. Agricultural Adjustment Act - This act approved government loans for farmers and paid farmers not to grow certain crops in order to increase the price of agricultural products. Federal Deposit Insurance Corporation - This act insured bank deposits of up to $100,000 in case of bank failure. It served to prevent people from withdrawing their money out of panic. National Industrial Recovery Act - This act sought to bolster industrial prices and prevent US business failures. Public Works Administration - This provided employment for unmarried men who worked in the national parks, and eventually for women as well. Tennessee Valley Authority - This program concentrated on building hydroelectric dams in the Southeastern part of the United States, providing electricity and jobs in the Southeast. Court-packing scheme - Roosevelt proposed this idea when the Supreme Court continued to strike down his new Deal legislation. Huey P. Long - . A Senator and former governor of Louisiana, he was a critic of Roosevelt and supported the redistribution of wealth in the United States. He was assassinated for his “Communist” views. The Second New Deal Takes Hold By 1935, economic recovery not as great as FDR had expected - Unemployment remained high - Work programs & productions still behind 1920s levels FDR launched second phase Provided more relief for farmers, workers First Lady Eleanor Roosevelt a social reformer prodded president Was the first activist First Lady. Eleanor pushed to reform state government in New York, and the living conditions in major cities. She was a major supporter of women’s rights and minority rights. She even pushed her husband to include women in many of the New Deal programs. Eleanor did one other major thing, she helped hide the fact that Polio had rendered FDR disable to move around. Eleanor traveled many times to visit many groups in place of FDR - She traveled the country observing the social conditions & reminding FDR about the suffering - She also pushed for him to appoint women to government positions 1936 - Democrats won presidency & large majorities in both houses First time most African Americans voted Democratic First time labor unions supported presidential candidate Election was a vote of confidence in FDR & the New Deal 1936 - Soil Conservation and Domestic Allotment Act replaced AAA - Rewarded farmers for practicing soil conservation New Agricultural Adjustment Act avoided unconstitutional provision Resettlement Administration gave loans to small farmers to buy land Farm Security Administration - loaned to tenant farmers to buy land FSA hires photographers to shoot pictures of rural towns & farms 2nd New Deal established a series of programs to help youths, professionals & other workers Works Progress Administration (WPA) created many jobs for unskilled workers - WPA workers build airports, roads, public buildings - Women workers sewed clothes for the needy - WPA employed professional writers, artists, performers National Youth Administration (NYA) - provided education, jobs, counseling & recreation to young people - Gave aid to students in exchange for parttime work Wagner Act - replaced NIRA - Protected right to join unions & collective bargaining - Prohibited unfair labor practices (threatening workers or firing union members) - Established National Labor Relations Board that heard testimony about labor practices - Held elections to determine if workers wanted unions 1938 - Fair Labor Standards Act sets maximum hours & minimum wage - 44 hrs per week decreasing to 40 in two years & 25 cents per hr. 1935 - Social Security Act created Social Security system Provided insurance for retirees 65 or older Unemployment compensation Aid to disabled & families with children Rural Electrification Administration (REA) brought electricity to farms - Rose from 12.6 % in 1935 to 48% in 1945 to 90% in 1949 Public Utility Holding Company Act aims to stop financial corruption A. FDR's programs are straying too far from American ideals. B. the New Deal is succeeding in ending the Great Depression. C. the New Deal was a failure in ending the Great Depression. D. FDR needs to try to use some of the ideas created by Karl Marx. Explain the Wagner Act and the rise of industrial unionism. 16. What was the purpose of the Wagner Act? 17. What is industrial unionism? Explain the passage of the Social Security Act as a part of the second New Deal. 18. What is the Social Security Act?19. What was the second New Deal? Identify Eleanor Roosevelt as a symbol of social progress and women’s activism. 20. Who was Eleanor Roosevelt? 21. What did she do as a women’s activist? Second New Deal – Series of programs implemented in the United States after 1934 to continue bringing the United States out of the great depression. Eleanor Roosevelt - She was one of the only first ladies to take an impactful stance in the United States. She helped push through changes for women and minorities in the United States. Social Security Act - This act established retirement income for all workers once they reached the age of 65. It also provided some benefits for the unemployed and those with disabilities. Revenue Act of 1935 - This act raised taxes on those making above $50,000 a year as well as corporate and estate taxes. Named “soak the rich tax”. National Labor Relations Act - Set maximum hours & minimum wage - 44 hrs per week decreasing to 40 in two years & 25 cents per hr. Wagner Act - . This act was passed in 1935 and created a board to monitor unfair management practices such as firing workers who joined unions (it concentrated on protecting worker rights). The New Deal Affects Many Groups Several women were named to important government positions Frances Perkins became first female cabinet member (Secretary of Labor) - FDR also appointed 2 women as diplomats & 1 as a federal judge Women still faced discrimination in workplace from male workers National Recovery Administration (NRA) set some lower minimum wages for women Federal work programs hired far fewer women than men FDR appointed more than 100 African Americans to government Educator Mary McLeod Bethune headed Division of Negro Affairs of NYA Helped organize “Black Cabinet” Group of influential African-American who advised FDR on racial issues FDR was afraid of upsetting white Southern Democratic voters Refused to approve anti-lynching law & end to poll tax New Deal agencies discriminated against African Americans - pay them lower wages & favored whites African- Americans generally supported Roosevelt administration & New Deal - Saw them as the best hope for the future New Deal Coalition - different groups that support Democratic Party - Helped the democratic party dominate national politics throughout the 1930s & 1940s Political organizations in large Northern cities supported FDR Urban, religious, & ethnic groups also supported FDR - FDR appoints officials of urban-immigrant background Culture in the 1930’s About 65% of population went to movies once a week - Movies were still affordable - People watched them to escape real life - Grapes of Wrath - Gone With the Wind - The Wizard of OZ 90% of households had a radio Families listened together every day Dramas, variety shows played in evening - Soap operas for homemakers broadcast in middle of day - Children’s shows after school hours - Immediate news coverage became customary - Orson Welles - actor, director, producer, & writer Federal Art Project paid artists to make art, & teach in schools Aim to promote art appreciation & positive image of America Murals typically portrayed dignity of ordinary people at work Federal Theater Project hired actors & artists Singer, songwriter Woody Guthrie sung songs about the of plight of poor Federal Writers’ Project supported many who become major writers Richard Wright African-American author who wrote Native Son John Steinbeck wrote The Grapes of Wrath about Dust Bowl migrants The Impact of the New Deal . By 1937, economic improvement convinced many that Depression was ending Congress wanted to cut back programs By 1939 - New Deal was over Supporters Believed the New Deal helped country recover from economic difficulties Conservatives thought FDR made federal government too large - stifled free enterprise & individual initiative Liberals thought New Deal didn’t do enough to socialize economy & end inequalities Expanded power of federal government & president Social Security Act - Federal government takes responsibility for citizens’ welfare - Provided aid for aged, disabled & needy FDIC - still protects individual investors in case of bank failure SEC -still monitors stock market, enforces laws on stock, bond sales New Deal laws set standards for wages & hours - banned child labor, - Permitted unions Civilian Conservation Corps (CCC ) - planted trees, built hiking trails, & fire lookout towers Soil Conservation Service taught farmers how to preserve soil - Contour plowing, terraces, & crop rotation 1934 - Taylor Grazing Act- reduced grazing on public lands - Grazing had contributed to erosion that caused the dust bowl Tennessee Valley Authority (TVA) -created electricity, & prevented floods New Deal reduced suffering & gave people hope - Provided jobs, food & money New Deal didn't end depression WWII did In attempt to protect US businesses, Roosevelt raised tariffs on foreign imports. He felt this would push Americans to buy American products. Foreign nations responded in the same way, they imposed high tariffs on American made goods. Eventually this worldwide depression would be one of the major contributing factors to WWII. A. The Wagner Act. B. The Smoot-Hawley Tariff Act. C. The Bretton-Woods Tariff Act. D. The Fordney-McCumber Tariff Act. Roosevelt wanted to stay neutral in relations with countries in Europe. Several dictators had taken over in Europe, and Roosevelt wanted no part. Roosevelt and Congress passed the Neutrality Act, which stated we would not sale military supplies to countries in conflict in Europe. Eventually Roosevelt would realize it was inevitable that the US would enter into the conflict. With war mobilization the U.S. industry began to boom again. With money being pumped back into industry, the economy began to rise once again. By the end of WWII the U.S. unemployment rate had dropped to an all time low of 1%. WWII would be the final factor to bring the United States out of the Great Depression. Identify the political challenges to Roosevelt’s domestic and international leadership; include the role of Huey Long, the “court packing bill,” and the Neutrality Act. 22. Who was Huey Long? 23. What was the Court Packing Bill? 24. What was the Neutrality Act? Neutrality Act -Act that prohibited the sale of weapons to warring nations and was mean to keep the US from forming alliances that might drag the US into war.