Presentation on theme: "2 Hoovers winning platform was based on continued prosperity We in America today are nearer to the final triumph over poverty than ever before in the."— Presentation transcript:
2 Hoovers winning platform was based on continued prosperity We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us. 1928
Lack of Diversification Unequal Distribution of Wealth Overproduction in Industry and Agriculture Decline in Exports International Debt Structure Monetary Policy – credit structure Stock Market Crash and Financial Panic Historians disagree as to the causes of the Great Depression. Most scholars would include:
The 1920s was known as a prosperous time, but not for everyone Installment buying allowed people to buy cars, radios and other new products of the 1920s. Farmers, however, were in a depression throughout the whole decade.
Nation's wealth grew by billions in 1920s but not distributed evenly Top 1% received a 75% increase in their disposable income Other 99% saw an average 9% increase in their disposable income. 80% of Americans had no savings at all. UNEQUAL DISTRIBUTION OF WEALTH
The chart shows that 99% of the population received a 9% increase in their income, while the top 1% saw their income rise by 75%. 1,230,000 Americans 121,770,000 Americans
8 The economy grew by billions throughout the 1920s. Total realized income rose from $74.3 billion in 1923 to $89 billion in 1929
Chart showing wages of unskilled workers. Notice how little the wages changed during the supposed prosperity of the 1920s.
HIGH TARIFFS AND WAR DEBTS European nations owed over $10 billion ($109 billion in 2010 dollars based on CPI) to US The U.S. insisted former allies pay (forces the allies to demand Germany pay reparations – will later lead to financial crisis when Europe could not purchase goods from the U.S) Fordney-Mc Cumber Act,1922 - high tariffs on industrial products. Other nations soon retaliated and world trade declined helping bring on the great depression.
11 Wages not rising enough for workers to buy all goods being made The surplus products could not be sold overseas due to high tariffs and lack of money in Europe Overproduction & Lack of Diversity in Industry
FARM OVERPRODUCTION Due to surpluses and overproduction, farm incomes dropped throughout the 1920s The price of farm land fell from $69 per acre (1920) to $31 (1930) Agriculture in depression from 1920 until the outbreak of WWII in 1939. Average annual income for an American family $750 -for farm families was $273 (1929) 30% of Americans still lived on farms. Surplus ears of corn
STOCK MARKET CRASH AND FINANCIAL PANIC WALL STREET ON THE DAY OF THE CRASH, OCTOBER 1929
Stocks overpriced due to speculation Fraud & illegal activity occurred due to lack of regulation Margin buying Federal reserve policy Major reasons for the stock market crash in October 1929
Federal Reserve Monetary Policy 9,000 banks bankrupt or closed 1930-1933 More than $2.5 billion in deposits lost Fed worsens situation by raising interest rates (contracting money supply even more) Failing business layoff workers – 25% unemployment rate (1932) Those working worked for less
16 "I do not believe that the power and duty of the General Government ought to be extended to the relief of individual suffering.... The lesson should be constantly enforced that though the people support the Government the Government should not support the people." (1930) President Hoovers belief in self-reliance would later affect his ideas about how to best solve the upcoming depression President and Mrs. Hoover
Belief excessive welfare undermines moral fiber of citizenry Red Cross & Salvation Army lines around the block Humiliation & self blame Many to resort to wandering
Farmers suffering increases Natural disaster & overuse – black blizzards Okies on way to CA Join bands of the just wandering
Agricultural product 1912-19131932-1933 Corn (per bushel)0.560.20 Wheat (per bushel) 0.880.41 Oats (per bushel)0.340.17 Butter (per lb)0.210.13 Butterfat (per lb)0.250.16 Wool (per lb)0.240.10 Hogs (per cwt)7.503.80 Milk (per cwt)1.790.90 Table shows the sharp decline in the prices of various products from American farms
20 YEARWHEATCORNOATSPOTATOESPEANUTS 1919216.3150.776.7191.19.33 1920182.661.053.8133.25.26 1921103.052.732.2113.53.99 192296.675.237.468.64.68 192392.683.540.791.56.78 1924124.7105.347.871.55.68 1925143.769.938.8166.34.56 1926121.775.340.1136.34.97 1927119.084.947.1108.95.04 192899.884.340.757.24.90 1929103.479.841.9131.53.83 193067.059.432.291.53.54 193139.032.121.346.42.09 193237.931.815.738.81.53 U.S. Department of Agricultures yearbook from 1934 shows the unstable prices of foodstuff
191019181932 Average gross receipts 217738371512 Average expenditures 77016551019 Balance14072182493 Table shows the extreme drop in profits for farmers. This explains why they were unable to afford new equipment, and in many cases their mortgages, which led to the hundreds of thousands of foreclosures on farms.
many tried to find better situation in North(not) bumped out of jobs by social downshift of whites Scottsboro case (noteworthy ex. of racism) NAACP succeeded in getting a place in labor movement Chicanos similar job & social status as African Americans Many forced to leave country – especially since excluded from relief programs Efforts to organize labor thwarted Found same poverty in cities as urban blacks
Long standing discrimination trends continued & worsened Primarily forced to stay w/in own community for low paying service work even if college educated Popular belief jobs should go to men only- men taking womens jobs (teachers, social workers) 20% more women working than before National Womens Party pretty much gone – feminism at a significant low point
Prosperous 1920s middle class families now homeless or poor Doing a lot own sewing, canning, food preserving Family members move in together to pool resources Decrease in divorce rates, marriage rates and birth rates Families break apart because of economic/ psychological strains
Success Ethic still major influence in Americans understanding of how things work Self blame major factor in hiding the realities of the era (so ashamed didnt want to be seen) How to Win Friends & Influence People (1936) – belief in adapting to become successful no matter what the situation
Depression Era Literature Waiting for Lefty- labor struggles U.S.A – pessimistic political & social commentary Native Son – struggles of racism in urban setting
27 Route to escapism (comedy, adventure, soap operas, music) Access to public events (Hindenburg crash, War of the Worlds broadcast) Centered life around home & created common social/ cultural experiences
Attendance dropped & then came back up Examined political & social themes (morality & virtues of the little guy Escapism
"Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931) They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime? Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum! Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime? Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum! Say, don't you remember, they called me Al; it was Al all the time. Say, don't you remember, I'm your pal? Buddy, can you spare a dime?
The Popular Front Social critics with a more optimistic attitude Solidifies during mid 1930s Linked with promoting Communist Party in US Helped create Lincoln Brigade Unemployment protest in DC Loses support when Moscow calls for a return to anti-liberal stance Important acceptable outlet for writers, workers, intellectuals New Deal sponsored literature often critical of social condition w/leftist slant (Grapes of Wrath)
Voluntary economic cooperation fails Actions too weak or too limited Agricultural Marketing Act Hawley-Smoot Tariff Reconstruction Finance Corp Discontent: Farmers Holiday, Hoovervilles, Bonus Army
Election of 1932 With no specificity of program landslide win for FDR Tense interregnum – no cooperation or connection bwtn admins Nothing to fear