US History: The Great Depression and World War II

The Stock Market Crash of 1929 (Black Tuesday)

• The Gold Standard (US currency backed by gold) was suspended after WWI due to increased government spending and borrowing, which diluted the gold reserves backing the currency. This suspension created economic instability and uncertainty in the financial system.

• Banks loaned money for stock purchases, a risky gamble because it encouraged speculative investment practices where people bought stocks on margin, meaning they borrowed money to pay for the stocks, amplifying both potential gains and losses. This over-leveraging made the market highly vulnerable to a downturn.

• The market crash left people unable to withdraw their money as banks were insolvent, leading to widespread financial ruin; approximately 78\% of the population was affected. Bank failures wiped out savings, and the lack of deposit insurance meant individuals had no recourse to recover their funds.

Result of Black Tuesday: The Great Depression

• 78\% of the population (98 million people) lived in poverty due to job losses, bank failures, and the collapse of the agricultural sector. Many lost their life savings and homes, leading to widespread destitution.

• 25\% unemployment rate as businesses shuttered, factories closed, and demand for goods and services plummeted. Millions were jobless, leading to breadlines and soup kitchens becoming commonplace.

• Factories shut down, farms and homes were lost to foreclosure as people were unable to keep up with mortgage payments and loans. Rural communities were devastated, leading to mass migrations to urban areas in search of work.

• Many banks failed (9000 shut down, 7 billion lost), even some that hadn't invested in the stock market. This widespread collapse of the banking system froze credit markets and stifled economic activity because even healthy banks suffered from a lack of confidence and liquidity, exacerbating the economic downturn.

• The US economic crisis had global repercussions, described as: "If the US sneezes, the world catches a cold," but in this case, the US got "frickin’ pneumonia." International trade declined, and countries that relied on American loans and investments faced severe economic challenges.

• "Hoovervilles" sprung up, which were shantytowns named after the president, symbolizing his perceived failure to address the crisis. These settlements lacked basic amenities and symbolized the widespread poverty and desperation of the time.

The Election of 1932

• Herbert Hoover was unpopular due to his perceived mismanagement of the Great Depression (or lack of management). His policies were seen as inadequate to address the scale of the economic crisis.

• The Republicans had dominated the presidency since 1860, with the exceptions of Wilson and Cleveland. This long-standing Republican dominance made the shift to a Democratic president even more significant.

• Franklin Delano Roosevelt (FDR) won the election, despite Herbert Hoover winning 6 states and 59 electoral votes to FDR’s 472. This landslide victory demonstrated the public's desire for new leadership and a different approach to tackling the Depression.

• FDR's New Deal program, though vague, offered hope compared to Hoover's perceived inaction. His promises of government intervention and relief programs resonated with a population desperate for change.

• FDR was a distant cousin of Teddy Roosevelt, not his brother. This familial connection added to FDR's appeal, as Teddy Roosevelt was a popular and influential president.

Franklin Delano Roosevelt (FDR)

• FDR called a special session of Congress for nearly 100 days, known as the "Hundred Days," during which a series of landmark legislative actions were initiated.

• Congress passed 77 laws at FDR’s urging to revive the economy, addressing issues such as banking reform, unemployment relief, and agricultural recovery.

• FDR made 99 executive decisions targeting the Depression and other issues, demonstrating his willingness to take decisive action to address the crisis.

• "Bank Holiday": FDR declared a "bank holiday," suspending all banking transactions nationwide to prevent further bank runs. This measure aimed to stabilize the banking system and restore public confidence.

• FDR Quote: "I am prepared under my constitutional duty to recommend the measures that a stricken nation in the midst of a stricken world may require."

Dust Bowl

• An environmental disaster (1930-1936) caused by drought, bad farming practices (such as over-plowing and lack of crop rotation), and strong winds. These factors combined to create ideal conditions for massive dust storms.

• Led to devastating dust storms that destroyed crops, displaced thousands of families (known as "Okies"), and worsened the Great Depression. The Dust Bowl exacerbated the economic hardship and led to widespread agricultural devastation.

The New Deal

• FDR Quote: “The test of our progress is not whether we add to the abundance of those who have too much. It is whether we provide enough for those who have too little.”

• Civilian Conservation Corps: Aimed to combat unemployment by providing jobs for young men in conservation projects (reforestation, park development). The CCC provided valuable work experience and helped preserve natural resources.

• Tennessee Valley Authority: Focused on improving the Tennessee River system, providing flood control, and promoting economic development in the region. The TVA brought electricity and modernization to a rural and impoverished area.

The New Deal (Continued)

• National Recovery Administration: Promoted industry-wide codes of fair competition, set minimum wages and maximum hours, and encouraged labor unions. The NRA aimed to stabilize prices, regulate working conditions, and promote collective bargaining.

• Agricultural Adjustment Act: Boosted agricultural prices by encouraging farmers to reduce surpluses through subsidies. The AAA aimed to alleviate the economic distress of farmers by limiting production and increasing prices.

The New Deal (Continued)

• Social Security Act of 1935: Established a national old-age insurance program and facilitated state unemployment compensation programs. Social Security provided a safety net for the elderly and unemployed, transforming the role of government in providing social welfare.

• Wealth Tax: Increased income tax rates for higher income brackets, with the top rate reaching 75\% for incomes exceeding 1 million per year. This progressive tax policy aimed to redistribute wealth and fund government programs.

• Fair Labor Standards Act 1937: Created the right to a minimum wage and "time-and-a-half" overtime pay for work over 40 hours a week. The FLSA established basic labor standards and protected workers from exploitation. This bill has several notable conditions and exceptions.

Reelection (Multiple Times)

• Signifies FDR's popularity and continued leadership through the Depression and WWII despite growing criticisms as time went on. His ability to win multiple terms demonstrated his ability to maintain public support during times of crisis.

The New Deal - Supreme Court Reorganization

• The Supreme Court challenged the constitutionality of FDR's New Deal. Several New Deal programs were struck down by the Court, leading to a constitutional crisis.

• FDR proposed adding more justices to the Supreme Court to gain support for his policies (expanding the number of justices from 9 to 15). This plan, known as the "court-packing" plan, was highly controversial and seen as an attempt to undermine the independence of the judiciary.

• Congress rejected this proposal due to concerns about judicial independence. The defeat of the court-packing plan preserved the separation of powers and the integrity of the Supreme Court.

The New Deal - Executive Reorganization

• During this era, FDR sought to increase the powers of the executive branch beyond constitutional limits. His use of executive orders and administrative agencies expanded the reach of the presidency.

Quick Break Before War (1930s Culture)

• Popular culture provided an escape from the hardships of the Depression. Movies, radio, and music offered forms of entertainment and escapism.

• Films like Gone With The Wind and The Wizard of Oz (both 1939) signaled a resurgence of American entertainment. These iconic films captivated audiences and provided a much-needed respite from the economic turmoil.

• Prominent figures included Billie Holiday and John Steinbeck (The Grapes of Wrath). These artists captured the spirit of the times and addressed social issues through their work.

US Foreign Policy

• Focused on staying out of European conflicts. Isolationist sentiment was strong in the United States, with many Americans wary of involvement in foreign wars.

• Johnson Act 1934: Prohibited the US from lending money to foreign nations that had not paid their past war debts; forbade American citizens from lending as well. This act reflected a desire to avoid entanglement in European financial affairs.

• Neutrality Acts (1935, 1936, 1937): Aimed to keep the US neutral by preventing the sale of war materials, restricting American travel on warring countries’ ships, and prohibiting loans or credits to countries at war. These acts sought to prevent the US from being drawn into another European conflict.

• Ludlow Amendment: Proposed to give citizens more power over decisions relating to war, but it never passed. This amendment aimed to give the public a direct say in whether the United States went to war.

Foreign Events of the 1920s & 1930s

• Benito Mussolini took power in Italy (1922), establishing a fascist regime characterized by authoritarianism and nationalism. Mussolini's rise to power set a precedent for other fascist movements in Europe.

• The Soviet Union felt isolated due to its communist ideology, which hindered trade and diplomatic relations. The Soviet Union's communist ideology clashed with the capitalist values of Western democracies.

• Japan felt slighted after WWI because, despite fighting on the Allied side, it received no territory and was overlooked in the Treaty of Versailles. This resentment fueled Japan's expansionist ambitions in Asia.

• Hitler became Chancellor of Germany in 1933, capitalizing on Germans' low self-esteem and economic hardship after WWI. Hitler's charismatic leadership and promises of national renewal appealed to a disillusioned German population.

• Hitler promised to restore Germany's greatness and reclaim lost territory, while also persecuting Jewish people. Hitler's aggressive foreign policy and racist ideology led to the outbreak of World War II.

Munich Conference

• Participants: Adolf Hitler, Benito Mussolini, Neville Chamberlain (Britain), Édouard Daladier (France).

• Topic: Hitler demanded the Sudetenland, a region in Czechoslovakia with a significant German population. Hitler's claims were based on the principle of self-determination, but his true aim was to expand German territory.

• Outcome: Leaders agreed to allow Nazi Germany to annex the Sudetenland in an attempt to avoid war (Appeasement Strategy). This policy of appeasement was based on the belief that giving Hitler what he wanted would prevent a larger conflict.

• Neville Chamberlain proclaimed "peace for our time." Chamberlain's declaration was met with widespread relief, but it proved to be short-lived.

• Hitler later invaded the rest of Czechoslovakia and Poland, making war inevitable. Hitler's violation of the Munich Agreement demonstrated the failure of appeasement and led to the outbreak of World War II.

U.S. Military Policy

• FDR asked Congress to revise Neutrality Laws. He sought to provide assistance to countries fighting against Axis aggression.

• "Cash-and-Carry" (Neutrality Act of 1937): Allowed nations at war to buy non-military goods if they paid in cash and transported the goods themselves. This policy allowed the US to support the Allied cause without directly entering the war.

• Selective Service Act H.R. 1776 (A Bill to Defend the United States): Authorized the U.S. to provide military aid to nations whose defense was deemed vital to American security. This act marked a significant step towards US involvement in the war.

The Atlantic Charter (August 1941)

• A statement of common principles between the US and Britain, even before the US entered the war. The Atlantic Charter laid the foundation for the postwar world order and the establishment of the United Nations.

• Roosevelt's plan to provoke an incident to justify entering the war: "[Roosevelt] said he would wage war, but not declare it, and that he would become more and more provocative… Everything was to be done to force an ‘incident.’…The President…made it clear that he would look for an ‘incident’ which would justify him opening hostilities.” Recent historians dispute this quote due to lacking factual data around this quote

• Key principles:

  • Self-Determination: Nations deserve the right to self-determination.

  • Economic Cooperation: Promote free trade.

  • Disarmament: Reduce weapons to promote peace and stability.

  • Post-War Peace: Establish a system of general security and peace after the war through cooperation.

  • Freedom of the Seas: Ensure freedom of navigation and shipping.

• Participants: Roosevelt and Churchill.

Pearl Harbor

• December 7, 1941: Japan launched a surprise air raid on the U.S. Pacific Fleet at Pearl Harbor.

• Over 2,400 Americans were killed, more than 1,100 wounded, and 188 U.S. aircraft were destroyed. The attack shocked the nation and galvanized support for entering World War II.

• The US had placed an Oil Embargo on Japan in 1941 because the US was one of Japan’s biggest importers of oil, and Japan would run out of oil within a year with this embargo and would not be able to continue its expansion in the east. This embargo was intended to deter Japanese aggression in Asia.

• The U.S. also froze Japanese assets in American banks, preventing Japan from accessing its financial resources abroad. This measure further strained relations between the two countries.

Declarations of War

• September 3, 1939: Britain and France declared war on Germany after it invaded Poland. This marked the official start of World War II in Europe.

• September 6, 1939: Australia and New Zealand declared war on Germany in support of Britain. These countries joined the Allied cause to resist German aggression.

• June 1941: Germany surprise invaded the Soviet Union (Operation Barbarossa) pulling them into the war, but neither party declared war upon either. This invasion opened up a new front in the war and brought the Soviet Union into the Allied camp.

• December 8, 1941: The Pearl Harbor attack led to the US declaring war on Japan. This declaration marked the official entry of the United States into World War II.

• December 11, 1941: Germany and Italy declared war on the United States in solidarity with Japan. This declaration expanded the scope of the war and solidified the alignment of the Axis powers.

War in Pacific

• Battle of Coral Sea (May 4–8, 1942):

  • Japan attempted to invade Port Moresby in New Guinea, but the US stopped them, preventing a potential invasion of Australia. This battle was a crucial turning point in the Pacific War.

  • Technically a draw, but considered an Allied victory. The battle halted Japanese expansion and boosted Allied morale.

• Battle of Midway (June 4–7, 1942):

  • U.S. intelligence deciphered Japanese codes, enabling the US to prepare for the attack. This intelligence advantage proved decisive in the battle.

  • Stopped Japanese expansion in Asia. The Battle of Midway marked a major turning point in the Pacific War, shifting the balance of power in favor of the Allies.

  • Allied victory; major defeat for the Japanese Navy, weakening Japan.

• Battle of Guadalcanal (August 7, 1942 – February 9, 1943):

  • Allies gained control of the Solomon Islands. This campaign was a long and costly struggle, but it secured a strategic foothold for the Allies in the Pacific.

  • Allied victory.

American vs. Japanese Culture

• Both Japan and the US held distorted views of each other due to historical ignorance and prejudice. These stereotypes fueled mistrust and animosity between the two nations.

• The “Yamato Race”: Japanese used this concept of racial superiority to justify their expansion and conquest of other Asian nations. This ideology promoted a sense of Japanese uniqueness and superiority.

• Japanese Bushido Warrior Code: Fueled nationalistic fervor and justified brutal tactics within the Japanese military. This code emphasized loyalty, honor, and self-sacrifice.

• Cruel Treatment of War Prisoners: Japanese military personnel were known to treat prisoners of war extremely cruelly, including experiments on them while conscious. These atrocities demonstrated a disregard for human rights and international law.

Battle of the Atlantic

• Fought in the Atlantic Ocean. This prolonged naval campaign was crucial for maintaining supply lines between the US and Europe.

• Key aspects:

  • U-Boat (submarine) warfare by Germany. German submarines posed a significant threat to Allied shipping.

  • Allied use of Radar and Sonar to detect submarines. These technologies helped the Allies to locate and destroy German U-boats.

  • Use of Depth Charges and Escort Ships to combat U-Boats. These tactics were essential for protecting Allied convoys from submarine attacks.

• Allied Victory, securing the Atlantic from Axis powers. This victory ensured the safe passage of troops and supplies to Europe, contributing to the Allied war effort.

• Turning point: September 3, 1939, to May 8, 1945.

Casablanca Conference

• Participants: FDR and Churchill, Charles de Gaulle and Henri Giraud (France).

• Primary concerns:

  • Fear of German Technological Advancement. The Allies were concerned about Germany's potential to develop advanced weapons.

  • Stalin's plea for assistance. Stalin urged the Allies to open a second front in Europe to relieve pressure on the Eastern Front.

• Key outcomes:

  • Declaration of the United Nations: agreed to defeat Hitler first.

  • United Nations promise not to make separate peace treaties with axis countries.

Africa + Sicily

• Sicily Campaign (1943) / Operation Husky (July 9–10, 1943):

  • Objective: Gain a foothold in Europe, weaken Axis powers, and divert German forces. This campaign was a stepping stone towards the invasion of mainland Italy.

  • Outcome: Allied victory, leading to Mussolini’s downfall and paving the way for the invasion of mainland Italy.

• North African Campaign (1940–1943):

  • Battles: Series of battles in Egypt, Libya, and Tunisia. This campaign was a struggle for control of North Africa's strategic resources and geographic position.

  • Key Players: British, American, and German forces, with Rommel’s Afrika Korps. The campaign involved intense fighting between experienced forces.

  • Turning Point: Battle of El Alamein (1942), followed by Operation Torch (Nov 1942). These battles marked a turning point in the North African campaign.

  • Outcome: Axis defeat in Tunisia (May 1943), weakening their control over North Africa.

D-Day

• June 6, 1944

• Location: Normandy, France

• Code Name: Operation Overlord

• Objective: To liberate Western Europe from Nazi control

• Participants: American, British, and Canadian troops.

• Significance: Turning point in the war, it was the largest seaborne invasion in history, involving over 160,000 troops, 5,000 ships, and 13,000 aircraft. D-Day marked the beginning of the end for Nazi Germany.

Battle of the Bulge

• Germany launched a surprise attack on Allied forces in the Ardennes forest. This offensive was Germany's last major attempt to turn the tide of the war on the Western Front.

• The German aim was to push through the American lines and capture the port of Antwerp. Capturing Antwerp would have disrupted Allied supply lines and potentially forced a negotiated peace.

• The Germans initially achieved success, creating a "bulge" in the Allied lines. This initial breakthrough caused panic and confusion among Allied forces.

• The Allies launched a counteroffensive, pushing the Germans back and restoring the front line. The Allied victory in the Battle of the Bulge marked the end of German offensive operations in the West.

• Timeframe: December 16, 1944, to January 25, 1945.

Malta & Yalta Conference

• Malta:

  • Objective: To coordinate American and British views on issues to be discussed with the Soviet Union at Yalta, particularly military matters. The Malta Conference was a preparatory meeting for the Yalta Conference.

  • Location: Malta, Mediterranean Sea.

• Yalta:

  • Objective: Determining the postwar reorganization of Germany and Europe, including the establishment of the United Nations. The Yalta Conference was a crucial meeting for shaping the postwar world order.

  • Location: Yalta, Crimea.

The Manhattan Project

• Top-secret U.S. government research and development program during World War II (1942-1945) that led to the development of the first atomic bombs. The Manhattan Project was one of the most significant scientific undertakings of the 20th century.

• Key Figures:

  • J. Robert Oppenheimer: Director of the Los Alamos Laboratory. Oppenheimer played a pivotal role in the design and development of the atomic bombs.

  • Army Lt. Gen. Leslie Groves: Oversaw the overall project. Groves was responsible for the logistical and administrative aspects of the Manhattan Project.

• Origin: Began in 1938 with the discovery of nuclear fission by German scientists. The discovery of nuclear fission opened up the possibility of creating atomic weapons.

The Holocaust

• Nazi Germany and its collaborators systematically murdered approximately six million Jews across German-occupied Europe, representing around two-thirds of Europe's Jewish population. The Holocaust was a genocide of unprecedented scale and brutality.

• It was a genocide of European Jews during World War II. The Holocaust remains a stark reminder of the dangers of hatred, bigotry, and extremism.

Japanese Internment Camps

• Following the Pearl Harbor attack, President Franklin D. Roosevelt signed Executive Order 9066 on February 19, 1942, authorizing the forced relocation and internment of Japanese Americans and immigrants. This order led to the unjust imprisonment of thousands of innocent people.

• Examples of internment camps:

  • Manzanar: Located in the Owens Valley of California, it was typical of the 10 camps, with barbed wire and guard towers surrounding the housing section. Manzanar became a symbol of the injustice and hardship of the internment program.

  • Tule Lake: Became the largest of the 10 WRA camps, with a peak incarcerated population of 18,789 people. Tule Lake was known for its harsh conditions and served as a segregation center for those deemed "disloyal."

  • Topaz: Internees faced harsh conditions, living in cramped barracks with minimal privacy and inadequate facilities. Life in the internment camps was marked by hardship, uncertainty, and loss of freedom.

US Industry

• Wartime Expansion During World War II (1939 to 1944):

  • Gross National Product Increased. The war led to a surge in industrial production and economic growth.

Scootalooing On Back To The Great Depression

• World War II helps the US get out of the Great Depression:

  • Men going to war create new job opportunities within America. The war created a labor shortage, leading to increased employment opportunities for women and minorities.

  • Unemployment drops from 25\%$$ almost full employment by the end of WWII. The war brought an end to the Great Depression and ushered in an era of unprecedented prosperity.

• This economic boom had lasting effects on the US due to Increased exports and war stuff production. The war transformed the US into a global economic power.

Women

• As men go overseas to fight the war, women take over those jobs, building aircraft, war materials, and other important factory roles. This shift in the workforce challenged traditional gender roles and opened up new opportunities for women.

• Women also go overseas for the war in non-combat roles, serving as nurses, flying non-combat missions, and working as clerks, telephone operators, and stenographers. Women made significant contributions to the war effort, both at home and abroad.

Women

• Labor Force Participation Rate (%):

• started to work for old jobs that are now vacant due to wartime