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Causes of Great Depression
Republican policies during 20s
Easy credit policies
Farm surpluses (lowering prices)
Wealth gap
High speculation
Dust Bowl
Short money supply
Weakness of unions
High tariffs
Excess Production
Results in 1929 stock market crash and widespread bank failures
Hoover’s response to Great Depression
Reconstruction Finance Corporation
Giving money to businesses so they can hire more workers
“Bonus Army”
Suffering veterans demand bonus payments now
Hoover sends the army, quells the protests
Popularity plummets, loses election
Banks and the onset of the Great Depression (what happened to them and the effect of that)
Banks through margin buying had stakes in the stock market (using the money of their users)
Once stock market crashed, banks failed and lost all savings accounts
3 big Great Depression issues
Bank failures, Americans have no more savings or money
evictions, many left without a home
Unemployment, 25% of the nation without a job
What’s going on in Europe and Asia during the 30s?
Great Depression in Europe has led to the rise of Hitler in Germany
Japan has invaded Manchuria, starting a war of expansion with China
Hoover-Stimson Doctrine
America will not recognize any claims taken by force
Opposing wars with words, for now
Dust Bowl
Series of droughts and dust storms destroy farms in the great plains, motivate migration of the Oakies to California
Oakies = immigrants to California
FDR response to Great Depression
New Deal
Addressing unemployment, evictions, bank failures
Relief, Recovery, Reform
"Fireside Chats” boost Americans’ confidence in and transparency with government
“Banking Holiday”
One of FDR’s responses to the Great Depression’s bank failures
Mach 1933
No banks can operate
Gives USA time to break from the gold standard, launch fiat currency
FDIC
FDR and New Deal
Federal protection of savings accounts
Boosts confidence in banks
Glass-Steagall Act
Banks can no longer gamble with Americans’ money (margin-buying ended)
Important New Deal job-creation programs (the “alphabet soup”)
Job Creation
CCC (natural park work)
CWA (urban work)
TVA (Tennessee Valley Authority)
Basically socialism
Most successful program
Brings hydroelectric power to ~7 states
government taking control of and fixing poor areas
What did the New Deal “alphabet soup” programs actually do?
Didn’t directly boost the economy, but they circulated money
NRA (New Deal)
Voluntary gov. association of businesses
Wage controls (minimum and maximum)
Work hours set
Collective bargaining for unions protected
Many businesses join due to social pressure
Wagner Act (1935)
Protections for Unions (right to organize, collective bargaining, etc.), empowering them
Leads to strikes across the USA
John L. Lewis
Leading labor figure, leader of the CIO (large labor union), which eventually merged with the AFL to form the AFL-CIO, the most successful labor union in the USA
Social Security Act (1936)
New Deal
Money taken from paycheck to pay for the less fortunate (senile, homeless, etc.)
Highly controversial at the time
Major opponents of the New Deal
Supreme Court
Believes New Deal programs are unconstitutional
FDR responds with 1937 Court Packing Plan, which failed
Charles Coughlin
Francis Townsend (argues it doesn’t go far enough)
Racist opposition to FDR’s “black cabinet” of African-American advisors
American Liberty League (1934) in Congress sees it as socialist
Huey Long
Huey Long
Governor of Louisiana
Major opponent of the New Deal
Populism, extremely popular and dangerous to FDR’s president
Assassinated in 1935 before presidential run
How did US foreign policy in general change from 1933-1953?
Total isolationism, to minor intervention in the form of aid during WW2, and then to total intervention post WW2
Differentiate between Neutrality Acts of 1935-37 and 1939
1935-37: Restricting trade with all warring nations
1939: Cash and Carry, USA can trade with the Allies as long as they pick up the supplies themselves
American reaction to Japanese invasion of China
America embargoes Japan
Japanese assets in USA frozen
American public still hostile to war
German-American Bund
Pro-Nazi group in USA, hold massive 1939 rally
America First Committee
Isolationist political group
All aid short of war
Lend-Lease (and how does it differ from Cash and Carry)
Allies can borrow any piece of equipment from the USA
Shift from Cash and Carry, instead of buying equipment the Allies can now just take it (Allies becoming more desperate and losing money, USA leaning more into aid in response)
Helps British fend off Nazis, win the Battle of Britain
Nazis, having lost Britain, turn to the Soviets
Atlantic Charter (1941)
Formation of UN
FDR intends for the Soviets to join (it can only survive with both of the world’s superpowers, think League of Nations failures)
War Production Board
Wartime transition to command-economy
Wartime economy also nearly eradicates unemployment
Smith-Connally Anti-Strike Act (1943)
No union action during war effort
Growth of conservative-dominated congress
FDR’s Four Freedoms
Freedom of Speech
of Worship
“from Want”
“from Fear”
Norman Rockwell creates art representing these
GI Bill (1944)
Free college for veterans
Low-interest loans for housing
Assimilating returning veterans into the market, creating middle class (leading to baby boom)
Black Americans largely excluded from many benefits (red-lining prevents purchasing of homes)
Women during WW2
Changing gender roles due to work in factories, typists, etc.
Women serve roles in the military via emergency volunteer service, though not usually in direct combat
Will eventually be pushed out of factories in favor of returning men
Black Americans during WW2
Segregated units
2nd Great Migration north
Tuskegee Airmen, successful Black fighter pilots
Truman desegregates military post-war
Mistreatment post-war sparks renewed civil rights movement
Japanese Americans during WW2
Internment
Surge in racism due to fears of Japanese invasion
Korematsu v. USA, SCOTUS upholds internment
Hispanics during WW2
Brought to USA from Mexico via bracero program as another source of labor
Many forcibly deported after war
Zoot Suit Riots (1943)
White sailors attack Hispanics wearing flashy suits, see it as a waste of resources and thus unpatriotic
Casablanca Conference (1943)
Allies agree that Axis will have to agree to an unconditional surrender
The Second Front Controversy
The Soviets needed a second front opened in Western Europe to relieve the Nazi offensive into the USSR
Americans also begin to desire a second front as the Soviets push deeper into Nazi territory, threatening to take all of Europe (USA must secure their own sphere of influence)
Second front opened in Normandy, France at D-Day, 1944
Tehran Conference (1943)
Allies agree to open 2nd front in exchange for Soviets declaring war on Japan
Race to Berlin and what battle halted the Americans
After D-Day, Soviets and Allies squeezing Germany on both sides, racing to Berlin
Battle of the Bulge (1944-1945) halts American advance
Yalta Conference (1945)
Soviets promise free election in Eastern Europe, agree to join UN
Nazi war criminals will be prosecuted
Japanese ideology during WW2
Never surrender (honorable suicide = kamikaze and banzai charges)
Superior “Yamato Race”
Absolute obedience to authority (the Emperor)
leads to brutal warfare in Pacific Theatre
Bataan Death March (1942)
Japanese capture Philippines
American and Filipino POWs forced to march long distance north, thousands killed or die along the way
Battle of Midway (1942)
American navy destroys most of core Japanese navy, giving them the advantage in the naval war
Battle of Okinawa (1945)
Mass suicides amongst civilians and soldiers (banzai charges)
American victory, allowing invasion of Japan (but said invasion could cost over a million lives, and we have the Atomic Bomb, so what do we do?)
heavy casualties
Potsdam Conference (1945)
Atomic Bomb revealed to Stalin, but he already knew (spies)
Post-war reorganization of Germany
Unconditional Surrender
Beginnings of Cold War (what’s going on in Europe and differences between USSR and USA)
“Iron Curtain” speech by Churchill
Soviets have subjugated Eastern European occupation zones and propped up puppet governments
USA returns to interventionism
Soviet v. USA
Atheism v. Christianity
Authoritarian v. Democracy
Communism v. Capitalism
Truman Doctrine
USA will support “anti-totalitarian” forces in any way possible
Millions of dollars of military and economic aid to Greece and Turkey to prevent the spread of communism
Rise of “Containment”, end to isolationism
containment
Soviet Union will collapse eventually, so all the USA has to do is prevent the spread of communism
Leads to US military or economic intervention is many nations, especially in Latin America and Africa
American Economic Explosion
USA is a global manufacturing powerhouse post-war, other developed nations are destroyed and cannot compete
Baby boom
Suburbs
Demand-Side Economics
Citizens have more money + more production = more money in circulation
what was so special about the 1948 election? (what split the democratic vote? who won and why?)
racist conservative wing of Democratic party breaks off and forms Dixiecrats, who gain 4 states but lose election
Democrat Truman wins, unexpectedly beating Dewey
His anticommunist position and strong economy win him the election
HUAC
House Un-American Activities Committee
Mass investigations of suspected communists
Hollywood blacklists
Imprisonments of “convicted” communists, socialists — accused of being spies
Julius and Ethel Rosenburg
Convicted Soviet spies, executed
NATO and Warsaw Pact
Military defense pacts
NATO, 1949, Western alliance
Warsaw Pact, 1955, Soviet Union and Eastern Europe alliance
Japan under US occupation (what did the US do? how did it contribute to Japan’s success?)
No military allowed, therefore more money can be allocated towards research and development = skyrocketing Japanese economy
New constitution
Marshall Plan
USA wants to contain communism, make capitalism look good and prevent other nations from defecting
tons of aid to Western Europe to help rebuild, also expands American markets into Europe
McCarthyism
Senator Joseph McCarthy begins a witch hunt for suspected communists
claims he has “lists” of known communists in government
hearings blacklist and put many out of a livelihood
McCarthy eventually disgraced during a hearing, the tirades end
Berlin Blockade and how does USA respond
Stalin blockades West Berlin in an attempt to secure it for the Soviets
Truman responds with Berlin Airlift of supplies to West Berlin, Stalin lifts blockade in 1949
The Arms Race
Soviets test first nuclear bomb in 1949, beginning massive arms race between USA and USSR, who can make the most bombs
What happens in China in 1949?
Mao Zedong wins Civil War, KMT (anti-communists) flee to Taiwan
China is now communist
Korean War (1950-1953), what happened and how did it affect the power of the president
North Korea invades South Korea
UN authorizes invasion force led by USA to repel North Korea
UN almost wins, but China intervenes on behalf of North Korea, causing a stalemate
Armistice achieved by President Eisenhower, but President now has more power to engage in undeclared wars, paving way for Vietnam
National Security Council Doc. 68
Dramatic increase in defense spending to contain communism
Space Race
Soviets initially winning with first satellite (Sputnik), first man in space
Americans hope to beat Soviets by passing education reform, more efforts in STEM education for teens