The Great Depression and the Rise of FDR

  • The Great Depression was a severe worldwide economic depression that occurred during the 1930s.

  • Duration: 1930s to late 1930s or early 1940s.

  • Notable for being the longest, most widespread, and deepest depression of the 20th century.

  • Associated with the phrase "The Story of Us 'Bust'".

Prosperity of the 1920s and Growing Economic Problems

  • The booming economy led to overconfidence among Americans, fostering the belief that prosperity would continue indefinitely.

  • Credit usage escalated as Americans began buying goods on credit, leading to increasing debt.

  • The stock market experienced significant growth, with many people investing, epitomizing the bull market.

Herbert Hoover's Background

  • Herbert Hoover assumed the presidency in March 1929.

  • Notable credentials:

    • Mining engineer by profession.

    • Orphan.

    • Studied at Stanford University.

    • Took part in the Boxer Rebellion.

    • Organized food relief after WWI.

    • Served as Secretary of Commerce.

    • Managed the Mississippi flood crisis in 1927.

Major Causes of the Great Depression

  1. Wealth Inequality

    • Wealth distribution was highly uneven across the United States.

  2. Overproduction

    • Farmers and manufacturers produced more goods than could be sold, leading to a surplus.

    • Many farmers incurred debt due to this overproduction.

  3. Lack of Economic Diversification

    • The economy relied heavily on the construction and auto industries while consumer spending dwindled.

  4. Declining Exports and Trade Issues

    • The Hawley-Smoot Tariff reduced international trade, exacerbating the economic downturn.

  5. Weak International Economy

    • Post-WWI debt cycles among countries contributed to global economic instability.

  6. Federal Reserve Monetary Policy

    • The Federal Reserve raised interest rates rather than lowering them, which restricted economic growth.

Warning Signs of the Great Depression

Warning Sign #1: Farmers in Trouble

  • Farmers increased production during WWI, but post-war overproduction caused a decrease in farm prices.

  • Many farmers could not pay their debts, resulting in land foreclosures.

  • Farmers made up about 25% of the American population at this time.

Warning Sign #2: Economic Disparities

  • A small percentage (5%) of Americans controlled a significant portion (33%) of total income.

  • Most families lived on precarious financial margins, unable to purchase the surpluses produced.

  • This led to underconsumption, characterized by too many goods available for too few buyers.

Warning Sign #3: Credit Buying Habits

  • Americans increasingly bought consumer goods such as cars, radios, and household appliances on credit, deepening their debt.

  • Many also purchased stocks on margin, effectively gambling on the market.

  • This contributed to the financial instability of banks, which had invested heavily in the stock market.

Warning Sign #4: At-risk Industries

  • Industries such as clothing, steel, and mining struggled to break even, while automobile manufacturing, construction, and consumer goods sectors faced losses.

  • The U.S. economy lacked diversification and thus relied too heavily on specific industries for growth.

Warning Sign #5: Weak International Economy

  • Europe continued to struggle in recovering from WWI, which created cycles of international debt among various nations.

  • The protective tariffs imposed by the U.S. hurt international trade and contributed to domestic economic woes.

Impact of the Great Depression on American Society

  1. Increased reliance on unemployment and relief benefits from the government.

  2. Emergence of bread lines and soup kitchens, signifying widespread hunger.

  3. Approximately one-third of farmers lost their land.

  4. National unemployment rates reached 25%.

  5. Mass migrations occurred as individuals and families sought new opportunities.

  6. A rise in homelessness led to the formation of shantytowns known as Hoovervilles.

Impact of the Great Depression on Minorities

  • Minorities faced extreme difficulties; they were often the last hired and first fired.

  • The Repatriation Movement aimed to return Mexican immigrants to Mexico, reflecting the economic tensions during the era.

The Dust Bowl

  • Severe droughts and aggressive plowing of prairie land often led to ecological disasters referred to as the "Dirty Thirties."

  • Massive dust storms frequently swept over the Great Plains, prompting mass migration from these regions to other parts of the United States.

The Bonus Army Incident (1932)

  • Approximately 20,000 WWI veterans marched on Washington D.C. to demand early payment of bonuses owed to them.

  • Hoover's response involved sending in military troops to disperse the demonstrators, leading to injuries among veterans and significant public backlash against Hoover.

Franklin Delano Roosevelt (FDR)

  • Franklin Delano Roosevelt, often referred to as FDR, served as Governor of New York and was previously the Assistant Secretary of the Navy.

  • He suffered from polio, which became a significant part of his story.

  • His campaign in the 1932 election was built upon the promise of a "New Deal" for the American people.

1932 Presidential Election Results

  • Candidates:

    • Herbert Hoover: 59 electoral votes

    • Franklin D. Roosevelt: 472 electoral votes

  • Significant regional breakdown of electoral votes documented.

The Hundred Days

  • FDR declared a Bank Holiday to prevent bank runs (banks were temporarily closed).

  • Established the FDIC (Federal Deposit Insurance Corporation) to insure deposits and bolster bank confidence.

  • National Recovery Administration (NRA) provided financial support to failing businesses.

  • Homeowners Loan Association offered low-interest loans for home buying.

  • Civilian Conservation Corps (CCC) initiated public works programs for youth employment.

Politics of Urbanism

  • Shift in power as cities gained more influence than rural America.

  • Dependency on governmental financial aid became a central theme.

  • Several Southern Democrats began to switch allegiance to the Republican Party due to policy disagreements.

Popularity of the New Deal

  • The New Deal was characterized by optimism and FDR's effective communication through "Fireside Chats."

  • The “Brain Trust” consisted of academic advisors to FDR who shaped policy.

  • The Rural Electrification Association (REA) aimed to provide electricity to rural areas.

  • Immediate relief to the unemployed was provided through the Works Progress Administration (WPA) and the National Youth Administration (NYA).

Criticism of the New Deal

  • Critics argued that it expanded the federal government's scope excessively and represented a power grab.

  • Prominent figures such as Huey Long and Father Coughlin raised protests, the latter having an anti-Semitic stance.

  • The American Liberty League sought to curb the expansion of federal power deemed unconstitutional.

The Second New Deal

  • Notable legislation includes the Social Security Act of 1935, which established a federal retirement program.

  • Creation of the Securities and Exchange Commission (SEC) aimed to govern the stock market and prevent future financial crises.

1936 Presidential Election Results

  • FDR: 523 electoral votes

  • Alfred Landon: 8 electoral votes

  • Breakdown of regional electoral votes tabulated.

African Americans Shift to the Democratic Party

  • The support of the WPA and initiatives from FDR encouraged the alignment of African Americans with the Democratic Party.

  • Notable figures included Mary MacLeod Bethune and Eleanor Roosevelt, who were instrumental in advocating for the rights of African Americans within the party.

Judicial Challenges and the New Deal

The Court and Progressive Reform

  • Question of the Supreme Court's authority to declare acts of Congress unconstitutional is highlighted through historical perspectives covering 1787-1930.

  • Number of acts ruled unconstitutional in various time periods detailed (e.g., twice between 1787-1860).

The Court and The New Deal

  • The Supreme Court ruled several key New Deal provisions such as the National Recovery Act (NRA) and Agriculture Adjustment Act (AAA) unconstitutional, limiting executive legislative authority.

Court Packing Plan

  • FDR proposed a court reform plan that involved appointing additional judges for those 70 years of age or older who refused to retire, ultimately aiming for a court with 15 members.

  • This plan met significant opposition from both the court and Congress, reflecting political tensions.

The Court Reforms Itself

  • Eventually, some justices began to vote more progressively, and several new appointments were made by FDR over the subsequent four years.

Political Climate of 1937

  • Conservatives started seeking ways to halt the progressive movements and formed coalitions with Republicans.

  • John Nance Garner's belief in FDR's limited ambitions of seeking a third term was documented.

  • Context surrounding a small recession and the Wage and Hours Bill's passage included.

The Purge of 1938

  • FDR supported loyal New Dealers in congressional races and targeted anti-New Deal Democrats.

  • Responses from Southern Democrats referenced states' rights and comparisons to historical purges under dictators.

1938 Mid-Term Elections

  • Republican Party won significantly in the mid-term elections, taking control of 81 House seats, 8 Senate seats, and 13 governorships.

Geopolitical Events Leading to World War II

Japanese Expansion

  • In 1931, Japan invaded Manchuria, establishing a puppet state known as Manchuko.

  • By 1939, Japan controlled about one-fourth of China, leading to clashes with the Soviet Union and subsequent expulsion from the League of Nations.

Italian Expansion

  • Mussolini's Fascist coup and territorial expansions initiated by invading Ethiopia in 1934-35 were condemned by the League of Nations, but Italy withdrew from the organization when facing repercussions.

Spanish Civil War

  • The Spanish Civil War occurred from 1936-1939, with foreign powers taking sides (Italy and Germany backing the Nationalists and other democracies supporting Republicans).

German Expansion

  • Hitler's withdrawal from the League of Nations in 1933 and military rebuilds were significant early acts pointing toward future aggression.

  • Major events listed from 1936's occupation of the Rhineland to the 1938 annexation of Austria.

Soviet Diplomacy

  • The Molotov-Ribbentrop Pact established a non-aggression treaty between Nazi Germany and the Soviet Union, concerning territorial claims and interventions in Eastern Europe.

Key Battles in World War II

Battle of France

  • Notable as a tactical maneuver termed Blitzkrieg that successfully led to the swift invasion of France.

Battle of Britain

  • The Luftwaffe (Nazi air force) targeted Britain with significant air raids; Winston Churchill served as the British Prime Minister.

American Stance on Neutrality

  • Neutrality Acts of 1937-1938 were criticized for being inflexible.

  • FDR's “Quarantine Speech” in 1937 called for a global response against aggressive nations.

Foreign Policy and Military Preparedness

  • The America First Committee, coupled with low military preparedness scrutiny, highlighted the U.S.'s vulnerability prior to entering the war.

  • Key legislative measures included the Lend-Lease program and the first peacetime draft in U.S. history as facilitated by the Burke-Wadsworth Bill.

1940 Presidential Election

  • FDR won re-election, defeat of Wendall Wilkie, campaign slogans implied support for continuing wartime preparations.

Pearl Harbor Attack

  • On December 7, 1941, the attack on Pearl Harbor catalyzed America's entry into WWII, leading to the narrative of "Awakening the Sleeping Giant" in reference to U.S. military mobilization.

Executive Order 9066 and Japanese Internment

  • Authorized the incarceration of Japanese Americans and other ethnic groups in military zones, leading to extensive violations of civil liberties.

Korematsu v. U.S.

  • Landmark Supreme Court case that upheld internment as legal, justifying it under national security concerns over individual rights of Japanese Americans.

Contributions from Minorities in War

  • The Tuskegee Airmen were a significant group of African American military pilots who served in WWII, earning fame and respect for their service.

Major Military Campaigns

German-Soviet War

  • Initiation of hostilities between Nazi Germany and the Soviet Union on June 22, 1941, created a two-front war scenario for Germany.

Invasion of Normandy

  • The Allied forces launched a major military operation on June 6, 1944, with simultaneous beach landings, leading to the liberation of northern France by August 1944.

Battle in the Pacific

  • The Island Hopping Campaign saw U.S. forces successfully reclaim territories from Japan, including pivotal battles at Bougainville, Iwo Jima, Guadalcanal, and Okinawa.

Flying Tigers

  • The First American Volunteer Group operated in the Chinese theater during early WWII, composed of U.S. piloted and commanded under Presidential authority.

Battle of Midway

  • Significant naval engagement in June 1942 that marked a turning point in the Pacific Theater, leading to American victory over the Japanese fleet.

Bataan Death March

  • A tragic event involving the forced transfer of 60,000 to 80,000 prisoners of war by the Imperial Japanese Army, illustrating the brutal treatment of captives.

1944 Election Overview

  • FDR, with Harry S. Truman as his running mate, ran for a fourth term against Thomas Dewey.

Results of the 1944 Election

  • FDR won decisively with 432 electoral votes to Dewey's 99.

End of FDR's Presidency

  • FDR passed away on April 12, 1945, leaving Truman unexpectedly in charge.

End of European War

  • V-E Day (Victory in Europe) was declared on May 8, 1945 following significant events such as Hitler's suicide and the joint meeting of Soviets and Americans in Berlin on April 25, 1945.

The Holocaust

  • During WWII, Nazi Germany systematically murdered six million European Jews, accounting for approximately two-thirds of the Jewish population in Europe.

End of War in the Pacific

  • The United States dropped atomic bombs on Hiroshima (August 6, 1945) and Nagasaki (August 9, 1945), leading to V-J Day (Victory over Japan) on August 14, 1945, effectively concluding WWII.