chapter 22: the great depression (1929 – 1933). i.causes of the great depression introduction…...
TRANSCRIPT
Chapter 22: The Great Depression
(1929 – 1933)
I. Causes of the Great Depression
Introduction…A. Weakness in the Overall Economy
1. Depressed agriculture w/ drop in farm prices2. High unemployment in RR, coal, textile3. Increase in number of bank failures…4. Summer ‘29: underconsumption in economy…
I. Causes
B. Unequal Distribution of Wealth1. 1% v. 40%2. Economy depend on small % spending3. Masses couldn’t pick up slack when they stopped: underconsumption4. Wages didn’t keep pace w/ inflation: miners, textile workers, farmers
I. Causes
C. Excessive Buying on CreditD. Inadequate Govt Policies
* Laissez faire; tax policies; not enforce antitrust laws* FED: allowed low interest rate: led to stock speculation
E. Weak International Economy* Hawley-Smoot Tariff (1930)
II. The Great Stock Market Crash
Introduction…
Terms:1. “On the Margin”: investor borrows from
stockbroker who borrows from bank.2. Call loans: can be “called” in at any time3. Average American…4. Business Cycle: economy grows, contracts5. Dow Jones Industrial Average: an average of
stock prices of major industries
III. Misery & the Great Depression
A. By the Numbers1. 1929-1933: national income: $87 b to $40 b2. Wages dropped 60% 3. ‘29-’33: 5000 banks closed4. 25% unemployment: 10 million5. 90,000 business failed6. 1 million: homeless7. Marriages, births, colleges: dropped8. “Woman” jobs: less affected
III. Misery & the Great DepressionB. Urban Life
1. Hoovervilles/ Hoover Blankets2. Bread lines & soup kitchens3. Increase in malnutrition, tuberculosis, typhoid4. Relief efforts by Red Cross: limited b/c contributions were down5. Private organizations: overwhelmed
III. Misery & the Great DepressionC. Dust Bowl
1. 1930s: seven year drought hit parts of Texas, OKLA, Kansas, Colorado, N. Mexico2. Drought + poor farming techniques = loss of topsoil… created huge dust storms3. Okies, Arkies, The Grapes of Wrath4. W/ foreclosures, increase suffering of farmers
III. Misery & the Great Depression
D. Culture and the Great Depression
IV. Herbert Hoover’s Response
A. Philosophy1. Hoover the Man2. Philosophy
* Believed in self help and opposed direct govt relief; would destroy “rugged individualism” & initiative
*Laissez faire: no govt; eco will fix itself (bus. cycle)
* Preferred balanced budget & cut taxes* Relief: responsibility of local govt, private
groups* “Prosperity is Just Around the Corner”
IV. Hoover’s Response
B. Actions1. Reconstruction Finance Corporation2. Business Agreements3. Government Projects4. Hawley-Smoot Tariff ( 1930)5. Moratorium on European Debts
IV. Hoover’s Response
C. Bonus Army
V. Mandate for Change: FDR
Chapter 23: The New Deal
I. FDR’s Policy Strategies
A. Introduction…Fireside Chats… Brain Trust… 100 Days
B. Practical ApproachesDeficit Spending… Keynes
II. The New Deal in Action: Relief, Recovery, Reform
A. Relief1. Emergency Banking Act (1933)
* Bank Holiday2. Federal Emergency Relief Act/ Ad: chart3. Public Works Administration: chart4. Civilian Conservation Corps: chart5. Works Progress Administration: chart
II. The New Deal
B. Recovery1. Home Owners Loan Corporation (HOLC)
*Provided money to pay off mortgages2. Federal Housing Administration (FHA)
* Insured bank mortgages
II. The New Deal
B. Recovery3. National Industrial Recovery Act
* Chart* Suspended anti-trust laws to revive
business and reduce unemployment* Business: agree to fair wages and
hours; unions can organize* Not popular: raised prices and
favored BB* Declared Unconstitutional
II. The New DealB. Recovery
4. First/ Second Agricultural Adjustment Act
* Chart* Goal: raise income by cutting
surplus: crops & livestock* Financed by processing tax on
manufacturers* Public: outraged over destruction
III. The New Deal
C. Reform1. Glass-Steagull Banking Act/ FDIC: chart2. Securities Exchange Act/ Ad: chart3. Social Security Act/ Ad: chart **Important!!4. National Labor Relations/ Wagner Act
* “Magna Carta” of labor* after NRA: unconstitutional
5. Fair Labor Standards Act: chart
III. Constitutional Issues & the New Deal
A. Supreme Court… Introduction1. Schechter Poultry Corp. v. US
* “Excessive legislative powers by the executive branch was unconstitutional”2. US v. Butler3. Court Packing
III. Constitutional Issues
B. Tennessee Valley Authority 1. Federal funded corporation that provided jobs, cheap electricity, flood control to 7 poor states.2. Controversial: “creeping socialism”
C. Third Term Controversy
IV. The New Deal & Human Element
A. Eleanor RooseveltB. Dust BowlC. Native Americans
* Indian Reorganization Act D. AFL & CIO
* Increase in union members: laws*CIO: split: Committee for Industrial Organization: unskilled, minorities, women* Sit down strikes
IV. The New Deal: Human Element
E. “Homegrown Demagogues”Francis Townshend… Father Coughlin… Huey Long
V. Criticisms of the New Deal
1. The New Deal Put the Country Into Debt.2. The Federal Government was too large.3. Welfare and Govt assistance would
destroy people’s initative