Edexcel IGCSE History, USA

What were the economic benefits of WW1?

What were the economic benefits of WW1?

The fighting happened in Europe; America only joined near the end, less impacted; USA was able to sell and export goods, economic growth; their industry grew more than other countries.

Why was there an economic boom in the 1920s?

Natural resources; WWI impact; cheap labour; republican policies; hire purchase; advertising; consumerism; the stock market; new industries & methods.

What were the natural resources in America?

Timber, oil, gold, silver, coal, metal. USA is a big county with many raw goods, its industries were the largest in the world.

Why was there cheap labour in the 20s?

Immigrants came from Europe and Russia looking for opportunities, labour costs stayed low as there were lots of workers who would work for less.

What republican policies helped the economic boom?

Low taxation, people could spend more; trusts, corporations had control over vital industries; protectionism, tariffs stopped foreign companies being competitors; laissez-faire, they didn't interfere with businesses.

What was mass production?

The production line, created by Henry Ford, would bring a car past workers trained in a single job, it greatly increased speed so prices dropped and demand surged. Steel, rubber, glass, textiles, petrol, and road industries also saw a surge.

How did advertising change in the 1920s?

It was aimed in overwhelming people with brands, and even creating new markets; advertisements became big and colourful; advertisements began being used over radio too; by 1929 600000 people worked in advertisement and $2 billion was spent a year.

How did the stock market help the economic boom?

People were encouraged to invest, companies seemed worth more, everyone got richer.

What was the problem with farming in the 20s?

Farming had become very efficient from the war; there became a huge excess of food; prices dropped; farming income dropped $22 billion-$13 billion from 1919-28; 6 million people were kicked off their farms.

How did the coal industry suffer in the 20s?

Oil was now the main fuel. In North Carolina 1928, men were paid $18 and women $9 a week; minimum wage was $48.

How did the textile industry suffer in the 20s?

Fashion favoured synthetic fabrics and shorter skirts so cotton industry suffered.

How did the railway industry suffer in the 20s?

Now that cars were widely affordable, they were considered more convenient and demand for train travel dropped.

How did cinema change in the 20s?

In 1922 films became coloured; in 1927 films could have sound; Steamboat Willy came out in 1928; many Americans went to the cinema on a weekly basis.

How did jazz music influence American society in the 1920s?

Jazz increased in popularity as it could be heard over the radio; it was used as a form of rebellion; it inspired dances like the Charleston and Fox Trot.

What was marathon dancing?

Endurance contests where couples would dance non-stop for hundreds of hours, competing for prize money.

How did the radio change in the 1920s?

It became fashionable, 10 million radios were sold in 1929, just over a third of households had one, it was funded by advertisements.

How did women's place in the workforce change in the 20s?

2 million joined the workforce, this made up 20% of the force; they had access to many different jobs; the number of married women working went from 1.9-3 million, but this was only 12% of them. Most women still worked traditional jobs.

How did women's place in politics change in the 20s?

In 1920 they were allowed to vote, but most followed their husbands; in 1928 145 women were in state governments, but only 2 in the house of reps.

How did women's lifestyles change in the 1920s?

Divorce rate rose to 17%, birth rate fell to 21.3 per 1000. More electric appliances made jobs in the home easier, but they were still expected to look after the home and children. Few women got higher education on they didn't have equal pay.

Who were the flappers?

Young, single, free-spirited women; they rejected their parents values; they wore short skirts and socks, went to clubs to smoke and dance, didn't have chaperones and had sex before marriage.

Who were the WASPs?

White Anglo-Saxon Protestants

Why did immigration upset the Americans?

Most immigrants were Catholic or Jewish; many were poor, illiterate, or couldn't speak English; Americans were afraid immigrants would bring radicalism; they were afraid that immigrants would lower wages and steal jobs.

What was the Emergency Quota Act?

1921, restricted the annual admission to the USA to 357000, discriminated by ethnic groups, each nationality could send 3% of those already living in the USA.

What was the National Origins Act?

1924, quota was reduced to 164000 per year, 2% of each nationality.

What was the Red Scare?

Fear of a communist revolution, like the 1917 one in Russia, most prominent for middle & upper class; fear that southern & eastern Europeans were bringing communist and anarchist ideals.

How did workers increase the fear of the Red Scare?

In 1919, workers with low wages and few rights displayed unrest, there were 3600 strikes and those in power felt threatened.

When were there bombings in 1919?

In June eight cities experienced bomb attacks; there was also the bomb plot.

What was the mail bomb plot?

April 1919, 40 mail bombs addressed to important politicians were found, the plot was foiled because one bob went off early.

What were the Palmer Raids?

From 7 Nov 1919 to 1920, attorney general Alex Palmer used the General Intelligence Division to spy on and arrest suspected radical groups. It started with the Union of Russian Workers and by 2 January raids took place in 33 cities.

What happened to those targeted in the Palmer raids?

From the thousands of arrests around 600 were deported; the conditions prisoners were kept in were brutal, people froze to death and one committed suicide.

What were the effects of the Palmer raids?

Weakened the trade union; increased support for immigration restriction; encouraged beliefs that immigrants were radicals.

When did the Sacco and Vanzetti robbery happen?

3pm 15 April 1920, it happened in Braintree Massachusetts, they shot the paymaster and guard, and stole $15776.51, they weren't found till 5 May.

Who were Sacco and Vanzetti?

Italian immigrants and anarchists, they were unlikely to get a fair trail.

What happened at the Sacco and Vanzetti trail?

The trail took place in May 1921 by Judge Thayer, on 14 July they were sentenced to electrocution, they were executed 1927.

What were the results of the Sacco and Vanzetti case?

Workers protested in 60 cities in Italy; a mail bomb was sent to a US embassy in Paris 19 Oct 1921; immigrants in the USA united.

Why did so many black Americans live in the deep south?

30% lived there, due to the triangular trade when they were brought to work on plantations.

What was the civil war about?

Fought in 1860s, the South wanted to be a confederacy, North won and in 1865 slaves were freed.

What were Jim Crow laws?

Segregation laws, predominantly in the South; used for water fountains, schools, buses, cafes. They were also prevented from voting with literacy tests and intimidation.

What was the Great Migration?

The movement of 1.5 million black Americans away from the South to escape segregation and find opportunities. They ended up living in Ghettos like Harlem, and white workers didn't like them taking jobs. There were 24 riots in 1919.

What happened to black people suspected of crimes in the deep south?

They would be beaten, then burned or hanged by a 'lynch mob', 76 people were lynched in 1919.

When did the KKK start?

Originally after the civil war, shut down in 1817. Restarted by William Simmons in 1915 inspired by 'Birth of a Nation'.

How many members did the KKK have?

100000 in 1920 - 5 million in 1923 (16 senators, 75 congressmen, 111 governors, thousands of officials) - 200000 in 1929.

What views were at play in the Monkey Trail?

Darwinism: theory of evolution published 1859. Fundamentalists: Christians who believed in the Bible exactly.

How did the Monkey Trail start?

The Butler act, 1925, prevented teaching the theory of evolution in Tennessee. John Scopes from Dayton volunteered to break the law, backed by the American Civil Liberties Union. The trail began 10 July.

What happened in the monkey trail?

Leader of the defence Clarence Darrow[agnostic] started a debate with the leader of the prosecution William Jennings-Bryan[fundamentalist]. The trail became a media circus, a dramatic debate of ideals.

What were the results of the monkey trail?

John Scopes was charged $100, though this was eventually taken back; the Butler act remained till 1967; the trail garnered attention and exposed fundamentalist views as foolish.

What were the causes of Prohibition?

Groups like The Women's Christian Temperance Union, and Anti-Saloon league gave a variety of arguments, including:

-led to unemployment

-increased domestic violence

-led to sinful behaviour

-weakened economy

-during war grain was needed for food not alcohol

Positive impacts of Prohibition

-Alcohol consumption dropped

-deaths from liver disease fell from 29.5 per 100,000 in 1911 to 10.7 in 1929

-a survey suggested that 40% of people were in favour

-prohibition agents Izzy Einstein and Moe Smith seized around 5 million bottles of alcohol in the 20s.

Negative effects of Prohibition

-Gave a huge boost to organized crime

-Undermined respect for the law

-thousands lost jobs in farming and brewing

-economy harmed, roughly $11 billion lost by 1931

-peoples lives were at risk from low quality moonshine

-the enforcement was poor, very few convicted

How did gangsters impact life in the 20s?

-By Nov 1924 there had been about 200 gang-related murders in Chicago

-Chicago's mayor, Big Bill Thompson was re-elected in '27 because of gang support, they controlled politics

-Regular people got involved, on Chicago's south side they helped make 200 gallons of alcohol per day

What's a share?

A small part of a business that is bought or sold.

What's a dividend?

Portion of profits paid to a company's stockholders

What's speculation?

People invest in a company with increasing value, then sell shares at a profit later.

Causes of the Great Depression

1. Overproduction & under demand - companies making consumer goods like food and cars make more than they could sell, the market is saturated causing prices to fall, leading to unemployment rising. Overproduction in the farming industry lead to a dust bowl, further increasing unemployment rates within farmers.

2. Unequal distribution of wealth - the rich got richer and the poor got poorer.

3. High import tariffs on American Goods, Protectionism - caused American goods to be too expensive for other countries to purchase, so when other countries economies recovered, there was no-where for America to sell it's goods.

4. Speculation on the stock market - inexperienced people had to invest heavily in the shares during the 1920's hoping to make quick money, but once companies started to fall in value, people panicked pulling out their shares and selling them, being the last trigger to cause the bust.

5. Declining industries - Farming, coal, and textiles industries were failing, creating unemployment

6. Laissez-faire - the republican government liked businesses to be independent, they gave out loans to anyone, wouldn't implement minimum wage or high tax.

When was the Wall Street Crash?

October 1929

What's the downward spiral of the economy?

-Banks recall loans do to crash

-Companies can't pay so they go bust, as do the banks

-People lose jobs and cut back on spending

-More companies go bust as people aren't buying

-Banks won't give out loans

What was the impact of the great depression on banking?

People lost confidence in banks, withdrew all savings. Banks closed down as they couldn't pay and people lost savings.

What was the impact of the great depression on agriculture?

Prices for agricultural goods continued to fall, farmers couldn't pay off any debts and lost land. There were protests and mass migration. In 1930 a drought forced even more farmers to move as they could no longer continue over-production.

What was the impact of the great depression on industry?

Demand for goods dropped, prices were cut, wages were cut, people were fired, production drops, demand drops.

What were the effects of unemployment?

Living standards and health dropped, there was very little relief available. Birth rate fell, suicide increased, black people, women, immigrants, and the elderly suffered greatly. People lived in shanty towns known as hoovervilles.

Who was the bonus marchers?

WW1 veterans that asked to receive their pensions early. They marched into Washington D.C with their wives and children and stayed outside the white house demanding their money. This was too expensive so the government only paid for their tickets home. 5000 still stayed and police were sent to clear them and some were killed, Hoover's reputation was badly damaged.

What were Hoover's beliefs?

Volunteerism:the federal government shouldn't force people to do things, only encourage them.

Self-reliance:individuals should look after themselves, not rely on charity.

How did Hoover help banks?

Set up National Credit Corporation (1931) to raise money for banks, but investors were too afraid to spend much money.

Started Reconstruction Finance Corporation (1932) $2bill from gov to help banks, people was angry money wasn't spent on people.

How did Hoover help farms?

Agriculture Marketing Act (1929) set up Federal Farm board to buy crops, it was too little too late, prices still fell.

Hawley-Smoot Tariff (1930) raised tariffs to force people to buy American, but other nations did likewise so no trade.

Federal Farm Loan Act provided farmers mortgages but didn't help repay them.

How did Hoover help Industries?

National Business Survey Conference (1929) a meeting with Hoover & 400 businessmen, they made promises but they were soon broken.

In 1931 USA promised to stop collecting WWII debts for 18 months, but it wasn't long enough to stop Europe collapse.

Reconstruction Finance corporation (1932) made money available to loan, but most went to largest banks & companies.

How did Hoover help the unemployed?

President's Emergency Committee for Employment(1930-31(later President's Organisation for Unemployment Relief) organised and encouraged donations, but it wasn't enough.

Gov doubled spending on federal projects to make more jobs, but the spending was still very low.

RFC let the federal gov loan $300mill to for relief, but states had to meet tough requirements and only a tenth was loaned by 1932.

What happened in 1932?

Hoover's methods were making a difference, but 23 million people chose to vote in a democrat, Franklin D Roosevelt. He promised to use fed gov money to help the unemployed.

What were the aims of the new deal?

Recovery: higher income for farmers, more industrial production, end to banking crisis.

Relief: Provide money for relief from poverty, short-term relief projects for unemployed..

Reform: Social security system to help citizens, improvements in banks and businesses.

What did Roosevelt do to achieve his goals?

-Gain support using radio broadcasts (fireside chats)

-Use his majority in Congress to turn New Deal Policies into law

-Priming the pump

-Expand fed gov with new agencies to handle relief.

What's Priming the Pump?

-Government spending to create employment

-Workers get paid

-People buy goods

-Factories make more goods

-Factories need more workers

-More employment

What were the first hundred days?

FDR's first days in office, he formed the Brains Trust. Congress had an emergency meeting from March 9-June 16 1933 to help Roosevelt set up relief programs and agencies.

Roosevelt talked to the people 30 times over the radio, in an informal manner.

What were the Achievements of the first hundred days?

FDR passed the emergency banking act, closed banks for 4 days and federal checks made sure they were "financially sound". He told people to deposit savings 12 March; by the end of March $1 mill had been deposited. He passed a law to insure deposits over $2500, people had their faith restored.

FDR passed many laws that formed administrations known as the Alphabet Agencies.

How was the agricultural crisis solved?

The Agricultural Adjustment Act set up the Agricultural Adjustment Administration (AAA). It aimed to raise the price of goods. Farmers who kept land empty were compensated, so production fell but demand remained the same so prices rose. This wasn't enough as so much produce was already stored, so after the hundred days, the Commodity Credit Corporation was set up and paid farmers for extra goods to store.

The Farm Credit Administration helped improve mortgage arrangements for 20% of farms, so farmers could keep their land.

How was industry helped to recover?

The National Industrial Recovery Act (NIRA), set up the National Recovery Administration (NRA) which established quotas on how much could be produced, controlled prices, wages and working hours, and stopped child labour. Companies weren't forced to join, but many did, and incentives were offered; if businesses followed the code they got the symbol of the NRA, a blue eagle. 2.3 mill joined by July 1933.

The NIRA allowed people to join unions, membership rose from 3.1 mill in 1932 to 3.9 mill in 1939.

How was Direct Relief provided to the unemployed?

Federal Emergency Relief Act past in 1st hundred days, provided $500 mill for states to spend on relief, helped provide enough to feed people in short-term.

Home Owner's Refinancing Act gave people 20 yrs to pay a mortgage instead of 5.

How was Work Relief provided to the unemployed?

FDR believed Americans should get work, not handouts. Set up Civilian Conservation Corps (CCC), it gave unemployed 17-23 yr-olds tough outdoor work like building trails & reservoirs, for $30 a month. It was successful, but only employed 500,000 by 1935. The Public Works Administration (PWA) was given $3.3 bill for big construction projects to create jobs. Head of FERA, Harry Hopkins worried big projects would take to long, so the temporary Civil Works Administration made short projects with $400 mill. CWA closed 1934, but helped 4.2 mill survive the winter.

How did Federal Control affect the South?

The South states weren't doing enough to help the poor, so the Tennessee Valley Authority was set up to help seven states recover by

-providing work

-generate more electricity for remote farms

-control flooding & improve productivity

The main plan was to build up to 20 dams, supervised by the TVA, farmers educated on how to look after the land, drought and dust storms were partially solved.

Why did Roosevelt create the second new deal?

Unemployment remained high and national income low, workers kept on striking, so in 1935, Roosevelt started the second new deal.

What were the aims for the second new deal?

-More work relief for unemployed

-Support workers in industry, improve their rights

-Help rural poor get land

-Provide for the old in their retirement

What was the WPA?

Works Progress Administration, run by Harry Hopkins. Helped employ 8 mill, spent $11 bill. Provided work for:

-Manual labourers: road & park building

-Writers/performers: guidebook writing, travelling theatre

-The youth: stay on college or join training programs

-Women: sewing & teaching programs

What work relief was given to the poor? (2nd ND)

CCC, PWA & WPA (and other work relief projects) received $4 bill, provided temporary employment for the poor.

What housing aid was given to the poor? (2nd ND)

The Resettlement Administration was set up to help the rural poor, but also built new suburban towns for urban families. Only three were made. The Housing Act was passed to replace shanty towns with homes.

What working condition were given to the poor? (2nd ND)

The National Labour Relations Act was designed to improve the lives of industrial workers. A few yrs later, min wage and max hours introduced.

How were Farmers helped to get land? (2nd ND)

The Resettlement Administration, moved only a few thousand families from overworked land, replaced by Farm Security Administration which offered $1 bill in loans to help farmers buy land and equipment by 1941.

How were Migrant Workers Helped? (2nd ND)

The FSA helped those who had lost land in the GD or had none. Migrant camps were set up to provide shelter and medical help to those who had left the Dustbowl for work. Didn't help them find work, just helped them stay alive.

How were farm prices changed? (2nd ND)

The first Agricultural Adjustment Act had been declare invalid by the Supreme Court in 1936, but prices were still too low. A second Agricultural Adjustment Act was made compulsory limits to production. These were enforced through heavy taxes.

How were the old and disadvantaged helped? (2nd ND)

Before 1935, there was no national system for pensions or unemployment, so in most states little was done. So Roosevelt passed the Social Security Act, which created:

-Fed pension system, employees payed 1%(later3%) of their income into the scheme + tax on their employer for their retirement

-Fed unemployment insurance, employers of more than 8 paid tax that went to unemployment pay for 16 weeks at half normal rate

-Fed support provided money for very poor people, families with dependent children, and the disabled.

Negative Effects of SSA?

-Self funded, couldn't pay pensions immediately

-Grants for the disadvantaged varied state to state

-Domestic servants and agricultural labourers weren't included

How were Workers helped? (2nd ND)

Supreme court declared NIRA invalid in 1935, Senator Robert Wanger created the National Labour Relations Bill, AKA the Wagner Act, it:

-Strengthened unions, banned company unions and firing union members

-National Labour Relations Board (NLRB) supervised union negotiations and protected unions and their workers.

Union membership rose to 9 mill by 1940, NLRB got 14 lawyers, but many strikes had to be held, some turned violent.

How were Banks reformed? (2nd ND)

Control was divided between Federal Reserve, states, and big banks. The Banking Act of 1935 changed that by:

-Creating a board of governors of the Federal Reserve System chosen by the pres.

-Gave various powers to the board, taking them away from powerful banks

There was opposition from banks that didn't want to lose control, but it stabilised the central system, in 1936 no national bank closed, very little was paid in deposit insurance, and a repeat of the 1929 crisis was unlikely.

What was rural electrification like before the ND?

In 1930, only 10% (in poorest areas only 1%) of farms had electricity. Many were very remote so it wasn't profitable to access them. Farming families had no access to the new electrical appliances.

How did the ND affect rural electricity?

During the first ND, the TVA built dams to generate power and lent money for power cables. The Electrical Home and Farm Authority (EHFA) was set up to encourage companies to make cheaper electrical appliances for TVA areas and provide loans for farmers to buy them, backed by the RFC.

In 1935, the Rural Electrification Administration took over from the TVA, and also made loans to lay power cables.

Results of rural electrification schemes?

Success as:

-by 1941, 35% of farms had electricity. 40% by 1945

-417 co-operatives had been helped to lay wires for new customers with loans by 1939

-the EHFA arranged 100,000 contracts for electrical goods by 1938

However, utility companies slowed the progress as they were worried about losing profits, they built spite lines across proposed REA routes, and linked up rich communities, leaving the poor.

How did the Supreme Court oppose the ND?

The SC had the power to stop New Deal laws, it was run by 9 judges who had different political views from FDR, majority chosen by Republicans and could serve for life. The SC wanted to defend the rights of individual states, and stop the federal government from taking too much power.

What were challenges to the New Deal?

In order to express a view the Supreme Court needed a business or individual to appeal against an agency or law - then it could decide whether the agency/law was acting constitutionally or not.

e.g. in 1935 the Schechter Poultry Corp. which had signed up to the NRA codes but then broke the rules about wages and conditions of their birds. The Schechter brothers claimed the federal government had no power over trade within a state, the Supreme Court agreed - their ruling which became known as the 'Sick Chicken Case' said Congress had given too much law-making power to the NRA so it was shut down. This threated the legal basis of the other Alphabet Agencies e.g. 1936 a cotton

processor challenged the AAA, claiming it did not have the power to tax his business, the SC agreed.

How did FDR respond to the Supreme Court?

Roosevelt was angry, saying Supreme Court had gone against the views of the American people. In 1937 he asked Congress for the power to appoint a new judge to replace every current one over 70 hoping to replace 6 of the judges, this was known as court-packing. Congress thought Roosevelt was acting like a dictator so disagreed, but it

had sent a message to the Supreme Court, that their decisions reflected more the mood of the people, challenges to the New Deal

stopped.

Why did Republicans oppose Roosevelt?

-He was a democrat (republicans main enemy)

-He made the fed gov too powerful with the size of the alphabet agencies

-He spent billions on the ND, and planned to raise taxes under the 1935 Revenue Act.

In 1936 they attempted to win the election over FDR, but he was voted in for a 2nd term. But there was a recession in 1937, lessening support.

What was Successful Opposition to the New Deal?

In the 1938 elections to Congress enabled the Republicans to gain sufficient strength to oppose the New Deal, and discovered that many conservative Democrats from some of the southern states disliked FDR so would join in a coalition. Republicans now had the power to stop FDR passing new ND laws, but not the power to remove New Deal legislation completely.

The opponents used their power to:

-Cut spending on relief programmes.

-Investigate Alphabet Agencies & try to weaken

the WPA and NLRB, they accused officials of being communists.

Block new measures, in 1939 the housing plan & request for more public works were rejected.

This brought the ND to an end, the Fair Labor Standards Act of 1938 was the last piece of New Deal legislation to be passed.

Why did Businesses Oppose the New Deal?

Businesses liked that the ND had sorted the economic crisis in 1933, but when the immediate problems were over, they turned against the ND as:

-They didn't want to be told what to do e.g. NRA codes & ND laws made them pay a minimum wage and restrict working hours.

-ND supported unions: NIRA and Wagner Act gave unions the power to challenge business managers.

-They didn't like the gov spending lots and using taxes to fund New Deal programmes such as the WPA. They wanted low taxation so people had more money to buy goods.

What was the American Liberty League?

Founded in 1934, containing conservatives from both sides and business leaders. To spread their message they, created a national organisation,

distributed leaflets, broadcast speeches, & sponsored dinners.

They believed the ND was anti-business and threatened the power of the states, so:

-Charities should handle relief

-Business people who had money should be allowed to keep it.