Unit+V

The Great Depression and the New Deal

 * The 1920s was called the Roaring Twenties - mobsters (Al Capone), jazz music (Louis Armstrong), baseball (Babe Ruth), other illegal activity
 * 1929 stock market crashed
 * Black Tuesday - stocks shown all black b/c of crash, not red
 * Unemployment rate reached 25% by 1933
 * What else were causes of the Great Depression?
 * Great Depression during Hoover's presidency, FDR helped take America out of depression - New Deal, new programs, new results
 * What were these programs? How did they work?
 * the government spent less money in the twenties (6.4 million down to 3 million).
 * 1930s - 1940 government spent much more money (3 million - 9.5 million)
 * "Hooverville" - cities that were run down, poor, dirty. maybe they blamed Hoover.
 * The 1920s was a decade of mobsters and other illegal activities, jazz music, dance clubs, sports, fun, and excitement. There was a break in traditions. Modern technology such as cars, radios, and motion pictures. Boom in construction (highways, telephones, indoor plumbing, sewer systems). Cosmetics became acceptable and popular. Women wore flappers. Economic prosperity.
 * But in 1929 the stock market crashed and the economy crumbled.
 * The 1930s became a decade of depression, bankruptcy, and poverty. Personal income, tax revenue, profits, and prices all dropped. Unemployment rate reached 25%. Farmers suffered a lot because crop prices dropped, and that was all they had. Advancement in some ways. FDR became president and enacted the New Deal to try to fix the problems of the Great Depression.

BOOM and BUST cycles of capitalist economies - 1920s boom, 1930s bust. Busts often occur due to overexpansion and overproduction. Businesses make too many products that don't get sold and they have wasted their money. They wind up losing money and having to lay off workers. That is usually one part of bust cycles. Another part of bust cycles is bad banking pratices.

These are children in the 1930's. Their parents probably don't have jobs. They are dirty; they don't bathe often. They have no shoes. Their clothes are dirty and worn out, so they probably only have what they're wearing.

The number of Americans who owned cars rose from 8 million to 23 million!

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Top 5 Causes of the Great Depression

 * 1) Stock Market Crash of 1929 - stockholders had lost over $40 billion
 * 2) Bank Failures - Over 9000 banks failed throughout the 1930s. Bank deposits were inunsured so people lost their savings after the banks failed.
 * 3) Reduction in Purchasing Across the Board - People stopped buying -> Less production -> loss of jobs -> can't pay back what they bought w/credit
 * 4) American Economic Policy with Europe - Smoot-Hawley Tariff demanded high import tax -> less imports
 * 5) Drought Conditions - DUST BOWL. Mississippi Valley 1930 -> Farms sold for no profit, farmers couldn't pay debts and taxes

Stock Market crash was just a background cause for Great Depression, not an immediate reason for it. 1933 there are 28 states with no banks open! unemployment: 4million in 1930 to 12 million in 1932 Building projects were publically funded but privately built 40000 people went looking for jobs, there were 5000 to be had Hoover Dam 1931-1935 helped provide electricity in many surrounding areas Hoover Dam led to the development of Las Vegas because it was a place for the workers to go

[|Progress of the Depression: How Things Went from Bad to Worse]
Summary: The stock market crashed in 1929, which was one thing that worsened America. Then banks failed and shut down. Deposits were lost, and there was less money in circulation which caused a deflation. Companies laid off workers and people were buying less things. People were losing their jobs and could not afford to pay back their loans and were therefore in debt. Families were homeless and wandering around train stations looking for jobs. Things got better when Roosevelt took over as president and proposed the New Deal.

Key Concepts so far (before the New Deal):
2. Why did the economy start to tank in the late '20s and get really bad in the early 30s (multiple reasons)?
 * 1) What were the 1920s like?
 * The Roaring Twenties
 * CHANGE
 * Women: more partying, short hair, shorter dresses, opportunities
 * fun, music (jazz), dancing, radios, movies, sports, art
 * Urbanization
 * Prohibition/18th Amendment
 * Bootleggers, speakeasies, mobsters
 * Stock market crash of 1929
 * People bought a lot on credit
 * Bank failures
 * Drought/Dust Bowl
 * High import tax
 * Overproduction by businesses

3. What were the key characteristics of the Great Depression? (List the problems with descriptions and DATA)
 * Poverty/unemployment
 * Farm Bankruptcy - The Dust Bowl
 * Less people spending money and less money being made. Prices dropped/Deflation. More banks and businesses shutting down
 * Ineffective government under Hoover
 * Homelessness/Hobos
 * Emotional difficulties
 * Unstable stock market and banking system

4. Who was president when the economy went bad and what did he try to do? (specific terms). What were his political andeconomic philsophies? What is a philosophy?
 * Herbert Hoover was president from 1929-1933. He became president in March 1929 and the stock market crashed in October - 7 months later. Hoover did not cause the crash or the Depression, but he also didn't really help address them either. A philosophy is a set of ideas and beliefs. Hoover was a Republican, a Conservative, and he believed in laissez faire capitalism. He did not want the government to be involved in business matters; he did not believe in making rules and regulations. He wanted to keep the traditions of society and government instead of changing them. He believed in lower taxes, helping big businesses, and Social Darwinism.

Hoover Video

 * Millionaire from a mining company - business man
 * Workaholic
 * Wrong president for time period - voluntarism, not enough sympathy or emotion
 * Government wasn't doing enough
 * Bonus March: Bonus Army - WWI veterans wanted their bonus early (1931 instead of 1945). Government said no, veterans burned down an area
 * HOPE - FDR offered hope that Hoover didn't give

Hoover's Attemps to Aid the Economic Crisis

 * Smoot-Hawley Tariff: higher import taxes so that foreign goods become more expensive so that Americans buy American goods; HOWEVER, other countries passed tariffs on American goods and global trade slowed waaay down.
 * Reconstruction Finance Corporation: help businesses, help farmers who are losing their farms, banking reform (also by helping railroads), loans to states for feeding the unemployed, and expansion of public works - leads to more job opportunites. Funded through the U.S. Treasury.
 * Hoover Dam: electricity to surrounding areas
 * and other public works building projects: created jobs

5. The Presidental election of 1932 was Herbert Hoover (R) vs. Franklin Delano Roosevelt (D). FDR was enaugurated in March of 1933. FDR was a Democrat and liberal. He is more willing to accept change and implement government involvement in the economy.

FDR Video

 * Had polio, couldn't walk on his own
 * Media kept that from the public
 * "We have nothing to fear but fear itself"
 * Used a radio to communicate with public much more than any president before him
 * Eleanor Roosevelt: his eyes, ears, and legs.
 * She could travel easier than he could
 * transformed what the first lady was all about
 * 1935 Social Security Act
 * 1933-1937 First term: lots of programs, some progress
 * 1937 Setbacks
 * Conservative Supreme Court
 * AAA, NIRA
 * "Courtpacking incident"
 * FDR tried to add 6 more judges to the Supreme Court so there could be more liberal judges

FDR was president after Herbert Hoover. He was bold, courageous, and wanted to be helpful. He lost use of his legs due to Polio. He was strong, because he was fighting Polio and also trying to help America overcome the Great Depression.
 * Who was FDR? What was his background? What was his personality like?**

He was a Democrat and a liberal, while Hoover was a Republican and a conservative. FDR wanted to help the people and get involved because that's how he thought America would get out of the Great Depression. He wanted change. Things were not working before, so he believed he would have to try new things to get new results.
 * What was his political and economic philosophy? How was it different from Hoover's?**

Between 1933 and 1944, President Franklin D. Roosevelt made speeches over the radio. These became known as Fireside Chats. They ranged from fifteen to forty-five minutes. He talked about the New Deal and gave HOPE to the Americans.
 * What were Fireside Chats?**

Confidence and hope were so important because without those traits, no one would have believed anything would get better and therefore nothing would have gotten better. If people have confidence that there can be change, they are not afraid to make that change and they try harder. If they had hope, they could look forward to something intead of being depressed and doing nothing. They would work hard because they believed if they worked hard and made change then things would get better. If people had no confidence or hope, they would be giving up. America would not have survived, and many people would have became depressed as well.
 * Why were confidence and hope so important in the early 1930s?**

G. Major New Deal Programs -Emergency Banking Act -FDIC || -Emergency Banking Act: The government had the right to inspect the health of all the banks. -FDIC: Bank deposits up to $5000 were insured || -WPA -NIRA -SSA || -CCC: Provided jobs creating public works -WPA: Provided jobs of projects and public works -NIRA: government rules for working conditions -SSA: Provided income to retired senior citizens to fight poverty || -AAA -REA || -TVA: Dams were built to control floods, generate hydroelectric power, increase agricultural production. Provided jobs and helped farms. -AAA: farmers were payed to not produce crops, that way there was less surplus of crops which increased the demand so prices rose. -REA: low cost loans to farmers to bring electricity into their area || //-Fair Labor Standard Act// || -NIRA: government regulations for business production //-Fair Labor Standard Act: Banned child labor, set a minimum wage// ||
 * Great Depression Problems || New Deal Program || Program Descriptions ||
 * Banking || -Bank Holiday
 * Unemployment/Poverty || -CCC
 * Farming || -TVA
 * Businesses || -NIRA
 * Stock Market || -SEC || -SEC: full disclosure of information of stocks that are being sold. The Federal Reserve Board had the power to regulate the purchase of stock on margin. ||

Slide Show
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[|H. The Dust Bowl]
The Dust Bowl was a ginormous cloud of dirt and dust that swept through many states.
 * Huge black cloud, looked like smoke
 * 1934
 * afraid, thought it was a storm
 * so dark, even with the lights lit
 * had to tie wet rags over their mouths

Dust Bowl Vocabulary
1934-1938 || Huge dust storms in the Great Plains due to poor farming practices and drought. || Farmers learned from this mistake because they changed their ways of farming. Many people migrated and started their lives in a different area of the Unites States. ||  || people thought they were just coming from Oklahoma, which is why the migrants were nicknamed Okies. ||  ||   || main crops farmed in this area are corn and wheat. || This is a region where we get a lot of our food from. ||  ||
 * // TERM // || // DEFINITION // || // IMPORTANCE // || // IMAGE // ||
 * Dust Bowl
 * Drought || Very little or no rainfall. || The ground was dry and crops could not survive. ||  ||
 * Migrant || Someone who moves from one place to another. ||  ||   ||
 * Okie || People who migrated from the Great Plains. Most
 * Great Plains || A region of flat land where people farm. The two

Google Doc
media type="custom" key="8867928" The Farmers were a cause of the Dust Bowl. Because of their poor practices they wound up having to either migrate or struggle with the terrible dust storms.

Slide Show
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Government Actions to Help People Affected by the Dust Bowl

 * June 28, 1934: Taylor Grazing Act - 140 million acres of federally owned land to establish grazing districts. Stop the land from deteriorating.
 * January 15, 1935: Drought Relief Serive - Cattle slaughtering-government bought cattle from farmers who couldn't afford to keep them, helped farmers avoid bankruptcy
 * April 8, 1935: FDR approves of Emergency Relief Appropriation Act - $525million to drought relief
 * April 27, 1935: Farmers are paid to practice better farming techniques such as contour plowing and crop rotation
 * March 1936: FDR's Shelterbelt Project - planted trees across a 100 mile wide zone through the Great Plains to stop soil erosion, but funding problems made FDR transfer the project to the WPA where it had less success

Words and Music by Woody Guthrie
 * Pastures of Plenty

It's a mighty hard row that my poor hands have hoed My poor feet have traveled a hot dusty road Out of your Dust Bowl and Westward we rolled And your deserts were hot and your mountains were cold I worked in your orchards of peaches and prunes I slept on the ground in the light of the moon On the edge of the city you'll see us and then We come with the dust and we go with the wind California, Arizona, I harvest your crops Well its North up to Oregon to gather your hops Dig the beets from your ground, cut the grapes from your vine To set on your table your light sparkling wine Green pastures of plenty from dry desert ground From the Grand Coulee Dam where the waters run down Every state in the Union us migrants have been We'll work in this fight and we'll fight till we win It's always we rambled, that river and I All along your green valley, I will work till I die My land I'll defend with my life if it be Cause my pastures of plenty must always be free ||

Pasture of Plenty means that there were a lot of crops in California, Arizona, and other places outside of the Dust Bowl. The message of this song is that these people are looking for better life outside of the Dust Bowl and that these people must fight to survive. Dorothea Lange - famous photographer of the Dust Bowl This boy is ten years old. He does not go to school anymore because his father needs him to pick cotton. He is fixing the family car. I do not know any ten year olds now a day who can fix the family car.

Three Rs of the New Deal (Textbook pg. 712)
Relief: temporary aid -> short term (money to the needy, temporary jobs) Reform: Change -> different ways of doing things to avoid problems -> avoid another Great Depression Recovery: permanent aid -> long term (programs to get the economy back on track)


 * Employment Status of the Civilian Labor Force**

1929–1948
= = || = PERCENT UNEMPLOYED = = = || =ANALYSIS= || Stock market crash - Oct. 29 || More and more businesses are closing FDR defeats Hoover and becomes president || FDR takes office, New Deal begins Banking is addressed first, then unemployment (Hitler takes power in Germany) || More jobs programs || WPA - lots of jobs || FDR reelected || ^ Bad idea of the Conservative Republicans ||
 * = YEAR =
 * 1929 || 3.2 || Economy is good.
 * 1930 || 8.7 || Things start to unravel ||
 * 1931 || 15.9 || Economy is getting worse and worse ||
 * 1932 || 23.6 || Terrible!
 * 1933 || 24.9 || Worst of the depression! Really high!
 * 1934 || 21.7 || Still bad, but progress
 * 1935 || 20.1 || Social Security Act - major changes
 * 1936 || 16.9 || Unemployment is getting even better
 * 1937 || 14.3 || Best unemployment percentage during the ND ||
 * 1938 || 19.0 || Fewer job programs - (Maybe ease off a bit since things are getting better?)
 * 1939 || 17.2 ||  ||
 * 1940 || 14.6 ||  ||
 * 1941 || 9.9 || Japan bombs Pearl Harbor and the U.S. enters WWII ||
 * 1942 || 4.7 || Lots and lots of jobs, people joining the army or helping make war supplies ||
 * 1943 || 1.9 || So low because of the war ||
 * 1944 || 1.2 ||  ||
 * 1945 || 1.9 ||  ||
 * 1946 || 3.9 ||  ||
 * 1947 || 3.6 ||  ||
 * 1948 || 3.4 ||

= Legacies of the New Deal: = ==A. Results at the time - addressing key issues (Banking- restored)== ==B. Fighting unemployment and poverty - managing the Depression (the chart)== ==C. Programs that still exist today- Social Security, Sec, FDIC== ==D. Shifting voting patterns - African Americans start to vote Democrat - 1934== ==E. Progress on social issues - Women, African-Americans, etc.==
 * Women served as leaders in ND agencies
 * African Americans were hired to fill posts in government
 * William Haste - first black judge in USA
 * Eleanor Roosevelt - helped women in politics

F. Role of the government

 * ====Smoot-Hawley Tariff - Tax on imports====
 * ====Reconstruction Finance Corporation - Money to banks, railroad, businesses, etc.====
 * ====Hoover Dam - Gave jobs to people. Electricity. Flood control.====
 * ====New Deal - Programs by FDR to help America during Depression:====
 * -CCC: Provided jobs creating public works
 * -WPA: Provided jobs of projects and public works
 * -NIRA: government rules for working conditions
 * -SSA: Provided income to retired senior citizens to fight poverty
 * -AAA: farmers were payed to not produce crops, that way there was less surplus of crops which increased the demand so prices rose.
 * -REA: low cost loans to farmers to bring electricity into their area
 * Fair Labor Standards Act: Established a minimum wage
 * Emergency Banking Act: immediately closed down banks, reorganized, and reopened what was able to be opened
 * ====Laissez Faire capitalism - "Let it Be" Hoover did not want change====
 * ====Fireside Chat - Radio broadcasts from FDR====
 * ====Dorothea Lange - Famous photographer of the Dust Bowl. Emotional effect====