Presentation on theme: "The 1920’s, the Great Depression, and the New Deal"— Presentation transcript:
1 The 1920’s, the Great Depression, and the New Deal Chapters 17, 18, and 19
2 Cause and Effect: Characteristics of the 1920’s caused by WWI The flapper and increased women’s rightsGreater independence and gains for women—education, employment, social restrictionsBirth control—Margaret SangerHow related to WWI?Harlem Renaissance and African American Political ActivismHarlem Renaissance: artistic and cultural flourishing in the African American community—Jazz, blues, literature (Langston Hughes, Claude McKay, Zora Neale Hurston)Political Activism: Marcus Garvey and Black NationalismHow different from earlier African American activism?NAACP
3 Cause and Effect: Characteristics of the 1920’s caused by WWI (Cont.) Higher wages/better standard of living for ordinary workersHow related to WWI?Nativism and the revival of the KKKHatred of foreigners, immigrants, Jews, and CatholicsKKK—harrased African Americans (like before), but now focused on “un- American” elements as well (anyone not a native born Protestant of north- western European ancestry)Immigration Restrictions: Emergency Quota Act of 1921, National Origins Act of 1924Organized crime/mobsters
4 Politics During the 1920’s: Pro-Business Laissez Faire Capitalism: government pursued a “hands off” approach to the economyhow does this compare to the Progressive policies toward the economy?Warren G. Harding ( )Very pro-businessMembers of his administration were involved in many scandalsTeapot Dome, Embezzlement from the Veterans Administration, Bribes and BootleggingDied of a stroke in 1923Calvin Coolidge ( )Also very pro-business“The man who builds a factory builds a temple, that the man who works there worships there, and to each is due, not scorn and blame, but reverence and praise.”“The business of America is business”
5 Problems Under the Surface: 1920’s Economy Economy during the 20’s was booming but there were hidden structural problemsFarmers1 in 4 farmers defaulted on loan payments, had their farms foreclosed onTariffHigh tariffs meant good business inside US, but no trade outside of USLabor problemsHigher wages during the war, but then wages staid flat, workers couldn’t afford to buy the products they were makingTaxesLower taxes for wealthy meant a rise in income inequalityWealthy began to invest extra money in the stock market
6 Election of 1928 Hoover vs. Smith 1928 Republicans nominated Herbert HooverSecretary of Commerce under Harding and Coolidge, engineer of the prosperity of the 1920’sSuccessful head of the Food Administration during WWIDemocrats nominated Al SmithMachine Politician turned progressive reformerFirst Catholic ever to run for PresidentSmith’s Catholicism played a large role in the election--many feared a Catholic in the White HouseHoover won easily
7 Herbert Hoover’s Background and Political Philosophy Born into poverty, self made manWent to Stanford, became an engineerBecame wealthy working in the gold mines of AustraliaProgressive reformer/humanitarian during WWIHoover’s philosophy (A Tale of Two Hoovers)Not the laissez faire capitalist that Coolidge wasHad progressive tendencies—have government and business work together to promote efficiency and increase production“Rugged Individualism”—individuals were responsible for helping themselves without direct government aid—that’s what made America Great
8 The Great Depression: 1929-1941 Worldwide economic downturnBegan/ended at different times in different places: generally speaking worst years were just about everywhereUnique for the breadth and depth of the economic downturnBeginning of the Great Depression in the US: Chain of EventsOctober 1929—US stock market crashInvestors had bought stock using borrowed money (buying on a margin) stock market crash meant investors AND banks lost lots of money ($40 Billion)economic problems go from stock market to banksBanks forced to call in loans to make up lost moneyproblems go from banks to the general economy AND to Europe (international bank loans)Businesses cut back/go out of business to repay loans, production slows, workers laid off, underlying problems of the US and world economies exposed, Depression begins
9 Great Depression: Background Causes Income inequalityWorkers not paid enough, meant they couldn’t consume as many goods as they were producing, lack of demand meant shutdown of businessesOverproduction of goodsTechnological advances had made it easier to produce more goods (both industrial and agricultural) eventually the country made more goods than it could consumeHigh tariffsHigh protective tariffs meant lack of international trade for US businessesProblems with agricultureFarmers had been stuck in a bad spot since the late 1800’s weak agricultural sector couldn’t support the economy when industrial sector collapsedEnvironmental problems—dust bowl—led to poverty/foreclosures in the southern part of the Midwest (Oklahoma, etc.)
10 Hoover and the Depression The two Hoovers battled it out over the response to the DepressionRugged Individualism Hoover—didn’t want to ruin the American character with handouts from the governmentHumanitarian Progressive Hoover—wanted to help ease the massive economic disaster using the governmentHoover was slow to act, but eventually did more than any other president before him, but (in retrospect) not enough to fix the problemNew public works spending--$2.25 billionReconstruction Finance Corporation (RFC) 1932Lent money to states, big businesses, railroads, banks, etc. – keep the big companies from going under or else thousands more will lose their jobsLimits of Hoover’s effortsNo direct aid from Federal government to the poor/unemployedNo government corporations that could compete with private businesses (viewed as socialistic)
11 Election of 1932: FDR emerges Franklin Roosevelt (Democrat)Distant cousin of Theodore Roosevelt, followed the same path to successParalyzed from waist down due to polioElection of 1932: Roosevelt vs. HooverRoosevelt promised people a New Deal—never exact about what that was, but he promised actionHoover had a horrible recordRoosevelt won easily, Democrats took control of the Congress
12 The New Deal 1933-1941 New Deal: Themes of the New Deal: The three R’s President Roosevelt’s policies during the Great Depression to help end the Depression and make sure another one didn’t happen againRoosevelt used the Federal govt. to regulate the economy, and Federal money to help jump start the economyMassive increase in the power and role of the federal govt.Themes of the New Deal: The three R’sReform: big business had been allowed to do whatever it wanted in the 1920’s, business abuses had helped cause the Depression, Roosevelt wanted to pass laws to fix these abusesRecovery: industry and agriculture had collapsed, by getting the government involved Roosevelt hoped he could use the power of the Federal govt. to help rebuild the US’s industrial and agricultural economiesRelief: there were millions of people out of work who needed food, housing, money and jobs right away, Roosevelt wanted to have the Federal govt. provide these people with money to stay alive as well as jobs so they could support themselves
13 The First New Deal 1933-1935 The Three R’s in Action Reform: Recovery Securities Exchange Commission (SEC) created to monitor business activity and the stock markets especiallyFederal Deposit Insurance Corporation (FDIC) insured money deposited in banksGlass-Steagall Banking Bill limited what banks could and couldn’t do (like buying stocks on a margin)RecoveryNational Recovery Administration (NRA) – tried to rebuild industry by using the government to get employers, workers and business competitors to cooperate and work togetherAgricultural Adjustment Administration (AAA) – tried to get farmers to work together to grow less food in order to boost food pricesReliefCivilian Conservation Corps (CCC)—made jobs for unemployed young menCivil Works Administration (CWA)—gave money and jobs to people in big citiesPublic Works Administration (PWA)—spent billions of dollars to fund public works projects around the country
14 The “Second” New DealFirst New Deal had not solved the Depression entirelySome thought the New Deal had gone too far, some thought it hadn’t gone far enoughThe Supreme Court had overturned some of the major elements of the first New Deal (NRA, AAA)Roosevelt responded with 2nd New DealWorks Progress Administration (WPA) billions for public works projects$13.4 billion, employed 3 million people at its heightSocial Security Act—pensions for elderly/disabled Americans2nd Agricultural Adjustment ActWagner Act—gave unions the legal right to organize, established the National Labor Relations Board to monitor workplace abuses by employersQuestion: which of the three R’s did Roosevelt focus most on during the 2nd New Deal?
15 Pros and Cons of the New Deal Economy improved (although the country was still in a depression)Lots of people got relief that they needed to surviveLaws were put in place to curb some of the abuses that had caused the Great Depression in the first placeConsNew Deal cost a lot of money—increased the national debtNew Deal greatly expanded the size and role of the federal govt.New Deal put limitations on what people could and couldn’t do with their propertyQuestion: Did the pro’s of the New Deal outweigh the cons?
16 End of the Great Depression: WWII 1st and 2nd New Deals improved the US Economy but didn’t totally fix the DepressionUnemployment only got as low as 10% (it had been around 25-30% before the New Deal)Massive government spending on military projects due to WWII finally ended the Great DepressionExample:WPA spent a total of $13.4 billion on public works projectsDuring WWII the US spent $50.1 billion on military aid for other countries (Lend Lease Act)In total the US spent about 5 times as much money on WWII as it did on the New DealMassive government spending resulted in the end of the Depression
17 New Deal and Labor NRA regulations, Wagner Act greatly aided unions Roosevelt was the first President since Teddy Roosevelt not to be openly hostile to unions—first pro-union presidentNational Labor Relations Board—meant to monitor and prevent abuses against unions by managementUnion membership began to grow during the DepressionEmergence of the CIOCommittee (eventually Congress) of Industrial OrganizationStarted out as a part of the AFL eventually became its own entity 1938Industrial union, not a trade union, different from the AFLUsed the sit-down strike in order to gain concessionsBecame a major force by the end of the Depression—4 million membersEventually merged with the AFL in the 1950s (AFL-CIO)
18 New Deal and African Americans African Americans and the New DealMany leaders of the New Deal were sympathetic to African Americans (Eleanor Roosevelt for example)Roosevelt appointed many African Americans to mid-level positions in his administration (Black Cabinet)Roosevelt mandated that 10% of all funds spent by the New Deal be allocated to African Americans (African Americans constituted 10% of the total US population)Many New Deal programs not specifically targeted to African Americans helped African AmericansLimitations: no effort made by Roosevelt to end segregation in the South (or anywhere else), some New Deal programs indirectly hurt African Americans (AAA)Significance: major swing in African American loyalty from Republican to Democratic party during the New Deal
19 New Deal and Women and Native Americans Roosevelt and other members of his administration were sympathetic to the plight of women during the DepressionRoosevelt appointed the first ever female cabinet member (Frances Perkins, Secretary of Labor)New Deal programs specifically designed to aid women (some elements of the WPA for example)Native AmericansRoosevelt formally reversed earlier government policies that took reservation land away from Native American tribesReturned control of land and Native American affairs to Native American tribesAppointed sympathetic director to head the Bureau of Indian Affairs
20 Roosevelt and the New Deal Coalition New Democratic CoalitionOld DemocratsConservative southern Democrats“Ethnic” Americans—recent immigrants, children of immigrantsCatholicsJewsUrban poorNew DemocratsLabor unionsAfrican AmericansFarmersNew Deal would make the Democratic party the dominant political party in the US, possibly until the present dayNew Deal Coalition weakness: diverse group of people, not easily united
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