Unit 7B: Great Depression & WW2

Trickle Down Economics

Rich has more money then they use the money to get more workers but usually they just kept the extra money

Henry Ford

Invented modern assembly line (specialized in cars)

Headquarters in Detroit, drops prices, growth in glass, rubber, leather, roads, oils

Impact of cars to families

splits family up, increased teen pregnancy, increased family time with family drives.

New Economic focus

From 1921-1929 improved economy by making consumer goods (stuff we want)

Consumer Goods

Clothing size, radios, vacuums, commercial flights, record players, cigarettes, cars (symbol of the rich), use credit (pay monthly through mortgages and loans), stores are regional and national, so it is familiar, slogans for brands.

Bullish Stock Market

Bull = everyone happy bc stocks are high and you make money

Bear = stocks are low and you lose money

Company starts watering stocks again

Stocks are high bc ppl, consume more

Can loan for stock (buying on margin)

Local banks invest in market and use ppl’s savings

tax cuts or the wealthy (Andrew Melon) —> thought best wat to help economy is to pay richest ppl.

Advertising

Capitalist propaganda

Peer pressure (everyone has it), sex appeal, celebrity spokesman

Madison Avenue (biggest advertising agencies)

Airplane

Orville and Wilbur Wright (kitty Hawk NC-1903)

Aviation company form

Charles Lindbergh is the first guy to cross Atlantic.

Radio

Guglielmo Marconi (1890s) —> first wireless with radio

1920 Broadcast of Harding election (station KDKA), first radio station

Brought family together

Radio stations broadcast games, comedy, stories, operas = unites people and assimilates ppl. (less accents)

Ppl. become aware of regional cultures

Movies

Pioneered by Edison 1890s

Nickelodeon’s —> short movie pics, for movie but won’t bring tons of money so they incorporate stories

Great Train Robbery (1903), The Great Big Nation, Jazz Singer (1927) —> first movie with sound and music

Social Impact from Movies

Clara Bow —> vamp (vampire, takes your innocence) so young women change ideas about being a women (sexual appeal)

Brings people together

Urbanization

1920 census (last census) —> more than ½ live in cities

New York and Chicago are the largest cities

Continued migration from farms, large immigration until anti-immigrant laws passed

• allowed AMericans to change rapidly

Flappers

young, urban , single, and had a job

• Find themselves a sugar daddy —> typically find rich older man to just play around

• Dresses are more straight (not baby maker!), but had low necklines and short skirts (still available), bob haircut (more masculine), lowered stockings (shows skin)

• Older women also showed a little bit of skin

Margaret Sanger

wants women to have access to birth control

Got arrested and continues to make speeches about it

National Women’s Party

Go out and campaign for equal rights and amendment

Alice Paul is leader, but amendment never passed

Bohemian Lifestyle

Just do what feels good

Freud tries to study brain and behavior (psychology)

Most of our actions are made by unconscious brain

Impact of Bohemian Lifestlye

If denying sex then you are mentally ill

Mafia

Moonshiners —> ppl. who make alcohol illegally

Mafia —> threatens ppl. so that they get what they want

WW1 prohibition by selling illegal alcohol, prostitution, and gambleing

Al Capone (Mafia) controls cities

• sets his men as police officers and eventually makes blood baths

  • Ex: St. Valentine’s Day = entertainment

Spectators Sports

Babe Ruth (baseball)

Jack Dempsey (boxing)

Notre Dame (football) —> 4 horse mane (football ) college

The Lost Generation

A lot of young men died so many were disillusioned with society —> so want to change all western culture

H.L. Mencken leads the movement —> criticized middle class values of marriage, patriotism, democracy

Books —> The Great Gatsby, Farewell to warms *Ernest hemingway). The SOund and the fury

Harlem Renaissance

African Americans come to Harlem and enjoy success and opportunity

Langston Hughes —> “The Negro Speaks of Rivers” and “Dream Deferred”

Jazz

Starts in South African Americans and brings up north Jazz clubs —> cotton club (Harlem New York City), bars (speakeasies —> hidden clubs) soon white ppl. adopt this culture as well

Black Nationalism and “The New Negro”

celebration of being black (politically)

• Marcus Garvey makes United Negro Improvement Association so that black communities benefit

  • communal success

Death of Progressivism

Disillusionment with war - did not attain 14 points

• Stops trying to save the war

• Isolate themselves by getting drunk and partying

Red Scare in the 20s: Labor Disputes

Causes —> post war inflation, job cuts, strikes (ex: 60,000 longshoreman and police officers strike in Boston)

Governor Calvin Coolidge arrests workers of strike

Red Scare in the 20s: Nativism

Scared of communism (Red Scare)

DId not want new immigrants (Bolshevik) bc they brought communism

Ex: sacco and Vanzetti (Italian anarchists) were blamed for robbing a place with the evidence of being a immigrant.

Anti-hyphanated movement

giv e up heritage and assimilate to American culture

Emergency Quota Act (1921)

only 3% of ethnic population in 1890

Immigration Act of 1824

2% ethnic population in 1890, no Japanese

Mail Bombs

Bombs on package, sent to capitalists, gov. officials, and ppl. involved in law.

Ex: attorney General’s house A. Mitchell Palmer, 1920 Wall Street

Palmer Raids

target ppl. he thinks that is sus.

usually targeted ppl. who looked a certain way

• J. Edgar Hoover becomes head of Bureau of Investigation

  • 6,000 ppl. arrested and 249 were expelled form nation by “Russian Ark”

Causes of conservative backlash

rural —> urban

women dresses became shorter

African Americans went from South to North

KKK in the 1920s

Strong in South and West and North

Anti- African American adn all new immigrants and semitism (Jews) and Communists and bootleggers (group that doesn’t want ppl. to drink)

Volstead Act

How gov. will control local agency on the transportation of alcohol

Prohibition

STRONG IN

• farmers

• south (afraid that black men will rape white women)

WEAK In

• cities in Northeast

OBSTACLES TO SUCCESS

• people sick of reform

• lack of support from gov.

• easy to make

• many don’t think it’s a crime

Positive Impact of Prohibition

hard to find, work attendance increases

Negative impact of Prohibition

Mafia, corruption, increased alcohol levels

Fundamentalism

Christians concerned about society

• conservative, strict, wants old ways

Modernist —> cna learn something from story, but not literarly

Monkey Scopes Trial

Dayton Tennessee teaches concept of evolution, so fired from job

Veterans (Bonus Army 1932)

wanted bonus now bc they are dying/ starving now but Hoover said no

• veterans started to riot in the capito to give bonus, Hoover ends up ordering police to get rid of them by shooting them

  • police and veterans started battle

Harding and the courts

Appoints 4 conservative justices

Adkins v.s. Children’s hospital

• minimum wage for women and children?

Use injunctions against strikes

Harding and Businesses

• Andrew Mellon Tax policies —> lower upper class taxes so that they use the rest for stocks which will help poor, but rich usually just used for themselves

  • Tariffs —> raise tariffs (Fordney-McCumber Tariff)

Harding and corruption (attorney general)

• Attorney Gen. Daugherty mishandles seized German Assets (Germans can’t benefit from assets made in America). However Attorney Gen. uses this money for himself

Veterans Bureau Scandal (Harding Corruption)

For medical help on veterans, but leaders of Bureau used it for themselves

Teapot Dome Scandal (Harding Corruption)

underground oil is dug up by Albert Fall and he sold it to Oil company that bribed the most

Coolidge and business

Secretary Herbert hoover —> associationalism wanted Trade Association

Standardized production, Share info., Set Prices (technically a pool)

Coolidge and Farmers

New tech = more crop = less income

Also were in debt bc they brought new lands and machinery

Demands after war id down bc no more war - no more need of American farmers

Lost statues - urbination (census 1920) and election of 1896

Roaring 20s not good for farmers

McNary Haugen Bill

raise tariffs on farm goods

US gov. buys excess farm goods and dumps on farm goods

Vetoed twice by Calvin Coolidge

CO-OP

Farmers union but failed bc no one trusted each other

Labor unions in the 20s

Good times for labor as wages go up = good economy

• bad times for unions (there’s no reason)

Conservative judges will try to weaken unions, injunctions and Red Scare (being in union = you are communist)

• yellow dog contracts come back. open shop laws (you don’t have to be part of that union if you work there)

Welfare Capitalism —> attract workers to join their company

• profit share (paid more if economy is good, boneses, and health programs)

  • company will pay you even if you are retired

Veterans

upset bc when they came back, ppl. who stayed got better pay

so they made Adjustment Compensation Act 91924)

• when veterans retire, gov. will give money to the part of their lives they were out fighting (veteran pension)

  • calvin coolidge vetoes bc he thinks gov. should not interfere

Great Depression 1929

Shifts tax burden to middle class - biggest consumers (still must pay off war debt)

• Hurts European economic trying to recover from WW1 which will hurt middle class consumers

Impacts on Families

Men and women were both jobless

Impact of Depression on Minorities

High unemployment (25%)

• 50% unemployment for African American

• Mexican American rounded up and send them back to Mexico (even citizens )

  • MASS DEPORTATIONS with repardido system

Depression impact on Farmers

Suffer form overproduction especially when war ended

• Drought came “Great Dust Bowl” for 10 years

  • sand dunes —> no more farms (no rain)

  • Used farming practices that depended on rain

Most moved to California to find work

Ohio farmers want to overthrow gov.—> not allowing food to come in, but gov. shot them

Hoover’s early Response to Depression

Thought it would be a downturn, but did not expect Great Depression

• suggested to use money so that stocks would rise again (ppl. saved more)

Hawley Smoot Tariff (1920) —> 60% tariffs

• should raise tariffs so that other countries would buy American products but resulted with tariff wars

Volunteerism —> asked businesses to not lay off workers (but they do)

• asked unions not to go on strikes (but they do)

Federal Farm Board

• get banks to voluntarily lower interest rates (take responsibilities by pay back loans)

Large Construction (Hoover Dam) = more jobs = pay rent (only one dam bc he believed that gov. can’t rescue everyone)

Muscle - Shoals Bill —> dam in Tenn = more jobs but Hoover vetoes —> socialists bc it will ruin electric companies

Reconstruction Finance Corporation (RCF)

Fed. go. loans money to state gov. to make more jobs (schools, roads) but states say no

Norris- LaGuardia Anti-Injunction Act

try to make unions like Hoover

Tried outlawing yellow dog contracts, right to strike, limits govs. use of injunction

Harding’s Foreign Policy (1921-1923)

Twin goals

1. Isolationism (unless it helped US.)

   1. Reduces costly armament (we don’t want war)

Harding’s Foreign Policy (1921-1923)

9 Power naval Treaty

U.S> has access to some navle ports in China

Harding’s Foreign Policy (1921-1923)

Washington Conference

US, UK, and Japan don’t make battleships for 10 years

After 10 years they keep 5:5:3 ratio

This will cause less wars and decrease tax rates

Coolidge’s Foreign Policy (1923-1929)

Dawes Plan

Germany needs to pay back UK, France, but Uk and France need to pay back America for war repartitions

America helped Germany out by giving money so everyone could pay back, but only works if America is in good economy

Coolidge’s Foreign Policy (1923-1929)

kellogg-Briand Pact

Treaty that says U.S. won’t interfere on wars

• Calvin shows no more progressivism and isolation

Coolidge’s Foreign Policy (1923-1929)

Hoovers Good Neighbor Policy

Did not care about Latin America

• no more Roosevelt Corollary, Dollar Diplomacy, Monroe Doctrine, ore Cowboy Diplomacy

Hoover’s Response to Japanese Agression

Japan Invades Manchuria for coal

League of Nations says don’t do it

• U.S. did not care bc we had our own problems

Hoover created “good Neighbor”

• did not care of Latin America

• FDR continues policy bc they wanted good relations during WW2

Election of 1932

GOP: Hoover

• Platform: self-help, Tariffs, RFC

Democrats: FDR

• Platform; Try stuff (the Great Spaghetti deal, no plan and just try)

• New Deal

  • First time farmers vote democratic

Cicilian Conservative Care (Relief CCC)

Instead of turning young men to bad ppl.

• military style camp so it will create National Parks (now they are employed and not radical)

  • segregated, bu African Americans were still allowed

Federal Emergency Relief Administration (relief FERA)

Fed. Gov. give money to states (grant = free money) so there are more jobs = dole, now ppl. have jobs!

Public Works Administration (relief PWA)

Building roads and bridges

Works Progress Administration (relief WPA)

Jobs for construction, professors, and artists

• pays artists to be artists with ppl’s taxes

Civilian Works Administration (relief CWA)

Help ppl. not starve during winter (pick up trash, help roads)

Banking (recovery) (Emergency Banking Act)

FDR closed all the banks so no bank failures

• Bank Holiday from 3/6-3/10 to look at banks to see record and if good then it will open up again (ppl. can trust)

Emergency Banking Act = reopen of banks

FDR orders US off of Gold Standard

Need to get back bc ppl. don’t have money

We need inflation to allow gov. to give money

Agricultural Adjustment Act (recovery AAA)

Help farmers get lower interest loans

• pay farmers not to farm, divide farmers to produce something (less produce = higher prices on crops)

Hurts African Americans (sharecroppers don’t have jobs. housing bc no need to farm).

Gov. tax corporations (like tyson chicken factory) in order to give money

However FAILS bc supreme Court did not pass the law

National Recovery Administration (blue bird) (recovery NRA)

Ask corporations to make codes of conduct and asked unions

• no more laying ppl off and no more strikes

FAILS bc both sides did not keep promise

• supreme court also says no “wanted lazzie faire”

Homeowners Low Corporations (recovery HOLC)

Low interest to buy house or keep house

Glass Steagall (reform)

FDIC (Federal Deposit Insurance Company) insurance

If banks go bankrupt he gov. will come and cover the loss

Separates banks —> commercial (checking and saving) vs. investment (putting in stocks so you get higher risk and higher reward)

Federal Securities Act (reform)

Gov. regulate stocks (companies can’t water stocks, need to be honest)

Tennessee Valley Authority (reform TVA)

Dam up 21 rivers (build dams) = more jobs

Afterwards gov. will own these dams so ppl. get free electricity

Securities and Exchange Commissions (reform SEC)

Watch stock market (make sure ppl. follow laws)

make sure companies follow the cans and can nots

National labor Relations Act (or Wager Act) (reform NLRA)

Creates NLR boards

Unions have the ability to exist (go on strike and picket)

Gov. will regulate corporations (no company can be too strong)

Wheeler-Rayburn (reform)

Wheeler-Rayburn Public utility Holding Company Act

Regulate companies’ rate, forbis large trusts in utility companies

Social Security Act (reform)

Everyone gets taxes on income (Fika)

• Allows ppl. to have an income for retirement

• Allows disabled (safety net) + orphans (ppl. @ risk)

• Gov. give some money when looking for new job (Employment insurance)

Payroll tax —> everyone paid into it so will be hard to go away

Everyone pays the same as everyone so rich don’t like

Hurts ppl. in the present bc it is taking away their current pay

Fair Labor Standards Act (reform)

Interstate businesses

Minimum wage, 40 hrs week, no child labor under 16 (big business)

Except —> domestic servants (nanny, maid, waiter)

• poor were not benefitted (minority)

US Housing Authority (reform)

Federal money for low income housing

Apartment for poor ppl.

Father Charles Coughlin

Catholic priest on radios

Hates FDR bc he’s doing too much = ppl. will depend on gov.

Hates Jews (hiring too much Jews)

Dr. Francis Townsend

Doing too little

Does not help old ppl.

Plan: wants every month gov. gives $200 to ppl. but everyone (old ppl) needs to spend all in one month

• FDR says we don’t have money —> makes new deal in return

Huey P. Long

He will say anything to get popular votes (governor Louisiana)

Criticizes FDR not doing enough

Plan (share our wealth plan) —> give money evenly throughout country

However was assassinated

Labor unions grow

John L. Lewis

Helped by New Deal protection - NLRA (wagner)

Go from trade unionism to industrial unionism —> before there was multiple unions but now they are combined so that everyone in the industry will be on strike so it can shut factory down (all factories under that company)

Trade union - AF of L and Industrial union - CLO

Militant Unionism

Sit down strike (can’t replace bc they are in your way)

Schechter v. Poultry Corp..

Court shut NRA

Court Packing

New Justice for every old justice (70 and up) who has not retired

• own party says no bc that is messing with checks and balances

New Deal Coalition

Democrats add African - American vote helped by FDR’s wife Eleanor persuaded minority

Farmers with AAA

Homeowners —> allow low interest so they keep homes or buy new homes

Intellectuals w/ WPA and African Americans by including them in new deals

Nagging Depression

Social Security starts and depression strikes again

• FDR also cuts gov. spending thinking it was enough

Keynesianism Economics

John Maynard Keynes (British economist)

• Mass deficit spending

  • Priming the pump —> need to spend more (gov. needs to spend money)

• Gov. does massive spending and borrowing so that ppl. are employed

Tyding-McDuffie Act

Let Philippines go after 12 years (1946)

Good Neighbor Policy

Hoover starts it

FDR wants to be friend the Western hemisphere so they don’t join Hitler

Attempts at amending the Constitution

7th Pan-American Conference (1933)

Change Declaration by only going to war with what ppl. want not the gov. unless we get invaded (FAILS)

Reasons for isolationism

Depression split between keep Phillipines go or not

European allies have not paid back

Bad memories of WW1

WW1 was fought for rich bc poor ppl. died

War debate and election of 1940

Should we or shouldn’t we go into war?

Committee to Defend America by Aiding the Allies (political group ex: Dr. Seuss) opposed by American First (don’t give aid to England)

GOP —> Wendell Willkie

• support British but avoid war

• get rid of new deals

• no president should have 3rd term (scared FDR would be a dictator)

Democrats —> FDR

• not time to change leader

• support British

• “your boys will not go into any foreign wars”