the 1920s and early 1930s: prosperity and depression
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THE 1920s and Early 1930s: PROSPERITY AND DEPRESSION. EUGENIA LANGAN MATER ACADEMY CHARTER HIGH SCHOOL HIALEAH GARDENS, FLORIDA. ESSENTIAL QUESTIONS TODAY: - PowerPoint PPT PresentationTRANSCRIPT
THE 1920s and Early 1930s: PROSPERITY AND DEPRESSION
EUGENIA LANGANMATER ACADEMY CHARTER HIGH SCHOOLHIALEAH GARDENS, FLORIDA
ESSENTIAL QUESTIONS
TODAY:
WHAT CAUSED THE TENSION BETWEEN NEW AND CHANGING ATTITUDES, ON THE ONE HAND, AND TRADITIONAL VALUES AND NOSTALGIA, ON THE OTHER HAND, IN THE 1920s?
WHICH GROUPS WERE PROGRESSIVE/RADICAL AND WHICH WERE CONSERVATIVE, AND WHY?
WHAT CAUSED THE GREAT DEPRESSION? WHAT STOPPED IT?
BACKGROUND: POST-WAR TENSIONS
WAR-TIME ECONOMY:
WAR PRODUCTION + MOBILIZATION OF NEARLY 5 MILLION MEN = FLU DEATHS HIGH EMPLOYMENT, HIGH WAGES
NATIONAL WAR LABOR BOARD GAVE UNIONS COLLECTIVE BARGAINING RIGHTS (TO AVOID STRIKE) INCREASE IN UNION MEMBERSHIP (E.G., MORE THAN 3 MILLION MEMBERS OF AF OF L)
SOME INFLATION (LOTS OF MONEY CHASING SCARE GOODS – BUT WAGES ROSE WITH INFLATION
ECONOMY 1919 – 21: RECESSION THEN DEPRESSION -- CAUSES
DEMOBILIZATION: OVER 4 MILLION SOLDIERS RETURNED 1919-20, WITH NO JOBS AND NOTHING BUT $60 AND A TRAIN TICKET HOME
WAR PRODUCTION ENDED LAYOFFS + SOME FACTORIES SHUT DOWN PERMANENTLY
TOO MANY WORKERS, TOO FEW JOBS DECLINING WAGES AND ABOUT 5.5% UNEMPLOYMENT 1918-19
CONTINUED INFLATION: COST OF LIVING DOUBLED 1918 – 1920
WELCOME BACK TO LOW WAGES AND HIGH C.O.L.!
FARM PRICES = DEFLATION/ DEPRESSION EVEN EARLIER THAN REST OF ECONOMY
PLUS EVEN MORE ACRES UNDER CULTIVATION THE USUAL (FARM PRICES DROP, FORECLOSURES)
STOCK MARKET: DOW-JONES AVERAGE 1918-23"ROARING 20s" DIDN’T BEGIN UNTIL 1922!
POST-WAR STRIKES: IN 1919 OVER 4 MILLION U.S. WORKERS (MOSTLY AF OF L) WENT ON STRIKE – MORE THAN EVER BEFORE OR SINCE
WHY?
EMPLOYERS WANTED TO CUT HIGH WAGES AND BREAK POWER UNIONS GAINED DURING WWI
WHAT ARE SOME EXAMPLES OF MAJOR STRIKES IN 1919?
BOSTON POLICE STRIKE, STEEL STRIKE, COAL STRIKE
STRIKES UNSUCCESSFUL AND OPPOSED BY PUBLIC
BOSTON POLICE STRIKE, SEPTEMBER 1919
ORGANIZATIONAL STRIKE – POLICE WANTED AF OF L UNION
LOW WAGES, LONG WORK HOURS, ETC.
≈ 1100 POLICEMEN STRUCK (72% OF FORCE) SOME MINOR VANDALISM AND LOOTING
MASSACHUSETTS GOVERNOR CALVIN COOLIDGE CALLED OUT 5,000 TROOPS IN MASSACHUSETTS MILITIA AGAINST STRIKERS (5 TO 1!)
STRIKING OFFICERS AND MANY OTHER COPS REPLACED
MASSACHUSETTS MILITIA IN SCOLLAY SQUARE, BOSTON. DURING STRIKE 9 POLICEMEN WERE KILLED
CALVIN COOLIDGE: "THERE IS NO RIGHT TO STRIKE AGAINST THE PUBLIC SAFETY, ANYWHERE, ANYTIME."
A HERO: REPUBLICAN VP NOMINEE, 1920
TYPICAL NEWSPAPER COVERAGE OF THE POLICE STRIKE:
"BOLSHEVISM IN THE UNITED STATES IS NO LONGER A SPECTER. BOSTON IN CHAOS REVEALS ITS SINISTER SUBSTANCE." PHILADELPHIA LEDGER
"HE GIVES AID & COMFORT TO THE ENEMIES OF SOCIETY" – CHICAGO TRIBUNE
"STRIKING BACK" – NEW YORK EVENING WORLD
1919 STEEL STRIKE, SEPTEMBER 1919
ORGANIZATIONAL STRIKE – AMALGAMATED ASSOCIATION OF IRON, STEEL AND TIN WORKERS (AF OF L) WANTED STEEL INDUSTRY TO RECOGNIZE AND BARGAIN WITH UNION
≈ 350,000 STEELWORKERS STRUCK, SHUT DOWN STEEL MILLS IN NEW YORK, PENNSYLVANIA, WEST VIRGINIA, OHIO, ILLINOIS, INDIANA AND COLORADO
WILLIAM Z. FOSTER, L, AF OF L (MARXIST, IWW) LED STRIKE
U.S. STEEL CHAIRMAN ELBERT GARY REFUSED TO NEGOTIATE
LED STEEL INDUSTRY IN HIRING 30- 40,000 Black AND MEXICAN STRIKE-BREAKERS ("SCABS")
AS USUAL, PINKERTONS, LOCAL AND STATE POLICE, AND IN SOME PLACES THE ARMY AND NATIONAL GUARD ATTACKED STRIKERS
RESULT = COMPLETE DEFEAT FOR UNION.
ELBERT GARY – A HERO
PUBLIC OPINION – AGAINST STRIKE, EQUATED UNIONS WITH SOCIALISM AND COMMUNISM
UNITED MINE WORKERS (UMW) – COAL STRIKE, NOVEMBER 1919
LED BY UMW PRESIDENT JOHN L. LEWIS, L (NOT A MARXIST)
≈ 400,000 COAL MINERS STRUCK OVER WAGES
RED-BAITING: MINEOWNERS CALLED UNION "BOLSHEVIKS," ETC.
ATTORNEY GENERAL A. MITCHELL PALMER GOT INJUNCTION AGAINST STRIKE UNDER WARTIME FOOD AND FUEL ACT – BUT WAR WAS OVER! FACING CRIMINAL CHARGES AND ACCUSATIONS
OF COMMUNISM, LEWIS CALLED OFF THE STRIKE
"KEEPING WARM" – LOS ANGELES TIMES
"IF CAPITAL AND LABOR DON'T PULL TOGETHER" – CHICAGO TRIBUNE
RACE RIOTS, SUMMER 1919
BACKGROUND: "GREAT MIGRATION" OF BLACKS TO NORTHERN CITIES (≈ 2 MILLION 1910 – 1930, ≈ 500,000 BY 1919)
WHY: INDUSTRIAL AND OTHER JOBS IN NORTH (ESPECIALLY DURING WWI), LESS
1915: BOLL WEEVIL WIPED OUT COTTON CROP, BANKRUPT SOUTHERN PLANTERS EJECTED SOUTHERN SHARECROPPERS
ALSO, RETURNING BLACK WARVETS MORE ASSERTIVE ABOUTRIGHTS
AT LEAST 30 RACE RIOTS OF 1919 ( = ATTACKS BY WHITES ON BLACKS, ESPECIALLY RETURNING VETS
MOST RIOTS IN NORTHERN CITIES SUCH AS CHICAGO, PHILADELPHIA, SYRACUSE N.Y, AND WASHINGTON D.C.
SOME BLACK RESISTANCE (FIGHTING BACK)
MEDIA AND PUBLIC BLAMED RIOTS ON BLACKS AND BOLSHEVIK AGITATORS
ABOVE, WHITE GANG LOOKINGFOR BLACKS DURINGCHICAGO RACE RIOT OF 1919
LEFT: HEADLINE IN ARKANSAS NEWSPAPER
HEADLINE IN NEW YORK TIMES: "REDS TRY TO STIR NEGROES TOREVOLT"
RED SCARE, 1919
A. MITCHELL PALMERATTORNEY GENERAL 1919-21
LED BY A. MITCHELL PALMER, U.S. GOVERNMENT MANAGED TO TRANSFER WARTIME PUBLIC XENOPHOBIA AGAINST GERMANS TO PEACETIME XENOPHOBIA AGAINST "REDS" – COMMUNISTS, SOCIALISTS, ANARCHISTS, WOBBLIES
NATIVISM LINK: "NEW IMMIGRANTS" EQUATED WITH "FOREIGN AGITATORS"
CAUSES OF RED SCARE:
1919: COMMUNIST THIRD INTERNATIONAL DECLARED GOAL OF WORLDWIDE COMMUNISM
MITCHELL COULD CLAIM COMMUNIST PLOT AGAINST U.S. "FREEDOM"
APRIL AND JUNE 1919 – LETTER BOMBS ("WE WILL DESTROY TO RID THE WORLD OF YOUR TYRANNICAL INSTITUTIONS" ON PINK PAPER) SENT TO PALMER, SENATORS, FBI INVESTIGATORS
NOBODY KILLED BUT PUBLIC PANIC
"WHAT A YEAR HAS "PUT THEM OUT AND KEEPBROUGHT FORTH" – NEW THEM OUT" – PHILADELPHIAYORK WORLD INQUIRER
THE NEW NATIVISM: IMMIGRANTS ARE A PACK OF ANARCHISTS AND COMMUNISTS
PALMER RAIDS, 1919- 20
STRATEGY: ROUND UP AND DEPORT FOREIGN RADICALS
IMMIGRATION ACT OF 1919 AUTHORIZED DEPORTATION OF ALIEN ANARCHISTS AND ANY ALIENS ADVOCATING OVERTHROW OF U.S. GOVERNMENT
GOVERNMENT USED WARRANTLESS WIRETAPS (VIOLATED 4TH AMENDMENT)
JANUARY 20, 1920: FEDERAL AND LOCAL RAIDED OFFICES AND HOMES NATIONWIDE, ARREST OVER 6,000 PEOPLE (INCLUDING SOME U.S. CITIZENS)
PEOPLE ARRESTED WERE DENIED ACCESS TO LAWYERS (VIOLATED 6TH AMENDMENT)
POLICE ARRESTING SUSPECTED "REDS" IN CHICAGO
BUT NOT EVERYONE ARRESTED WAS AN ALIEN!
"RADICALS" AWAITING DEPORTATION HEARINGS AT ELLIS ISLAND
IN THE END ONLY ABOUT 565 ALIENS WERE DEPORTED – MOSTLY NOT FOR ANY ACTS, ONLY FOR MEMBERSHIP IN RADICAL ORGANIZATION
DECEMBER, 1920: EMMA GOLDMAN WAS ON THE BUFORD
SECRETARY OF LABOR LEWIS FREEDLAND POST OPPOSED THE RAIDS AND THWARTED DEPORTATIONS
INITIALLY PUBLIC SIDED WITH PALMER, BUT AS 1920 WENT ON WITHOUT EITHER STRIKES OR A REVOLUTION, MEDIA SUPPORTED POST
DOES THE CARTOONIST SUPPORT THE PALMER RAIDS?
SACCO AND VANZETTI: VICTIMS OF THE RED SCARE?
ARRESTED 1920 FOR ARMED ROBBERY AND MURDER – EXECUTED 1927
PLENTY OF EVIDENCE THAT THEY WERE ANARCHISTS, NOT MUCH THAT THEY DID THE CRIME
WERE THEY GUILTY? (YOU SHOULD HAVE AN OPINION BASED ON ASSIGNED READING)
SUPREME COURT DECISIONS TO KNOW
SCHENCK V. UNITED STATES, 1919
1. OPINION BY OLIVER WENDELL HOLMES, JR.
2. FACTS: CHARLES SCHENCK, SECRETARY OF SOCIALIST PARTY OF AMERICA, WAS CONVICTED OF VIOLATING THE ESPIONAGE ACT FOR DISTRIBUTING A HANDBILL COMPARING THE DRAFT TO SLAVERY
3. ISSUE: DID THE CONVICTION VIOLATE SCHENCK'S 1ST-AMENDMENT RIGHT TO FREEDOM OF SPEECH?
4. HOLDING: NO. DURING WARTIME, FREEDOM OF SPEECH IS LESS BROAD THAN DURING PEACETIME
AND AT ANYTIME: FREEDOM OF SPEECH NEVER INCLUDES "SHOUTING FIRE IN A CROWDED THEATER AND CAUSING A PANIC."
IF SPEECH PRESENTS "A CLEAR AND PRESENT DANGER" THAT SOMETHING THE GOVERNMENT HAS THE RIGHT TO PREVENT WILL HAPPEN, THE SPEECH HAS NO 1ST – AMENDMENT PROTECTION
5. LEGAL AND HISTORICAL SIGNIFICANCE – A VERY BROAD EXCEPTION TO FREEDOM OF SPEECH!
ABRAMS V. UNITED STATES, 1919
1. OPINION BY JUSTICE JOHN CLARKE (A NONENTITY – NOT IMPORTANT)
2. FACTS: ABRAMS WAS CONVICTED UNDER SECTION OF ESPIONAGE ACT BANNING INTERFERENCE WITH WAR PRODUCTION. HE DISTRIBUTED A LEAFLET CRITICIZING 1919 DEPLOYMENT OF U.S. TROOPS TO RUSSIA TO FIGHT SOVIETS, AND URGING GENERAL STRIKE OF MUNITION WORKERS TO STOP PRODUCING WEAPONS FOR THIS
(SO NOT AGAINST WWI OR ANY DECLARED WAR OF U.S.!)
3. ISSUE: WAS THE HANDBILL PROTECTED 1ST – AMENDMENT SPEECH?
4. NOT PROTECTED SPEECH UNDER THE "CLEAR AND PRESENT DANGER" TEST. EVEN THOUGH NO STRIKE OR DAMAGE TO WAR EFFORT WAS IMMINENT, THE HANDBILL HAD A "TENDENCY" TO CAUSE THOSE THINGS.
5. LEGAL AND HISTORICAL SIGNIFICANCE: TURNED "CLEAR AND PRESENT DANGER" TEST INTO "BAD TENDENCY" TEST – EVEN EASIER FOR GOVERNMENT TO RESTRICT SPEECH
HOLMES DISSENT: "CLEAR AND PRESENT DANGER" MEANS SOME UNLAWFUL ACTION IS IMMINENT
TWO ANTITRUST DECISIONS TO KNOW:
UNITED MINE WORKERS V. CORONADO COAL CO., 1922 – OPINION BY CHIEF JUSTICE TAFT
JUST KNOW WHAT IT HELD: LABOR UNIONS ARE "ASSOCIATIONS" COVERED BY THE SHERMAN ANTITRUST ACT – CAN BE SUED UNDER ACT FOR TREBLE DAMAGES FOR STRIKES, MULTI-UNION AGREEMENTS TO SEEK SAME WAGES, ETC.
FEDERAL BASEBALL CLUB V. NATIONAL BASEBALL LEAGUE, 1922 – OPINION BY OLIVER WENDELL HOLMES, JR.
PROFESSIONAL BASEBALL LEAGUES ARE NOT COVERED BY THE SHERMAN ACT, BECAUSE BASEBALL IS A GAME, NOT A BUSINESS (EVEN THOUGH IT MAKES $)
ELECTION OF 1920: REPUBLICAN TRIUMPH ("IT'S THE ECONOMY, STUPID," PLUS THE RED SCARE AND OPPOSITION TO WILSON – END OF PROGRESSIVISM FOR A WHILE
WARREN G. HARDING AND CALVIN COOLIDGE
JAMES COX AND FRANKLIN D. ROOSEVELT
ALSO RAN: EUGENE V. DEBS, SOCIALIST PARTY: FROM PRISON -- 913,000 VOTES (REFERENCE TO HARDING'S "FRONT PORCH" CAMPAIGN
WARREN G. HARDING – RANKED AS ONE OF THE WORST PRESIDENTS. ADVOCATED "RETURN TO NORMALCY"
SCANDALS, ESPECIALLY TEAPOT DOME BRIBERY SCANDAL
1921: HARDING TRANSFERRED NAVY OIL RESERVES AT TEAPOT DOME (AND OTHER WESTERN LOCATIONS) TO DEPARTMENT OF INTERIOR
1922: SECRETARY OF INTERIOR ALBERT B. FALL LEASED RESERVES TO OIL COMPANIES – FOR PERSONAL LOANS = $404,000
FALL WAS CONVICTED OF BRIBERY, GOT 1 YEAR IN PRISON – FIRST CABINETOFFICER TO GO TO PRISON FOR CORRUPTION
DEPLOYED MILITARY AGAINST STRIKES, , INCLUDING B-1 BOMBERS, AGAINST STRIKING COAL MINERS IN MATEWAN, W. VA. (50-100 MINERS KILLED, HUNDREDS CONVICTED OF CRIMES LATER – THE USUAL!)
SUPPORTED AND SIGNED FORDNEY-MC CUMBER TARIFF, HIGHEST IN HISTORY – SUPPOSEDLY TO HELP FARMERS
FARMERS OF COURSE OPPOSED IT!
DIED IN OFFICE, 1923
COOLIDGE: YET ANOTHER VP BECAME PRESIDENT (BUT WAS ELECTED IN OWN RIGHT IN 1924)
MOST FAMOUS QUOTATION: "THE BUSINESS OF AMERICA IS BUSINESS"
BUT NO HELP FOR FARMERS!
HERBERT HOOVER (MINING ENGINEER): SECRETARY OF COMMERCE FOR HARDING AND COOLIDGE
ELECTED PRESIDENT 1928
HIS "SOUTHERN STRATEGY": OUST ALL BLACKS FROM REPUBLICAN PARTY LEADERSHIP, MAKE IT ALL-WHITE PARTY
DOMESTIC POLITICS IN A NUTSHELL, 1920 – 32 (HARDING, COOLIDGE, HOOVER)
CONSERVATIVE REPUBLICAN ASCENDANCY
HARDING, COOLIDGE, HOOVER TRILOGY
LAISSEZ-FAIRE ON MOST DOMESTIC ISSUES:
NO HELP FOR FARMERS
OPPOSED TO UNIONS – SUPPORTED NATIONAL ASSOCIATION OF MANUFACTURERS "AMERICAN PLAN:
COMPANY UNIONS "OPEN" SHOPS STATE LAWS MAKING UNIONS ILLEGAL
FAVORED EASY CREDIT TO PROMOTE BUSINESS BY PROMOTING CONSUMERISM
SUPPORTED HIGH TARIFFS
SMOOT-HAWLEY TARIFF, 1930: HIGHEST YET U.S. EXPORTS DROPPED 61% BETWEEN 1930 AND 1933
THE ROARING 20s1922 - 1929
WHILE ALL THOSE CONSERVATIVE REPUBLICANS WERE RULING THE COUNTRY, A LOT OF PEOPLE WERE PARTYING – IN VERY NON-CONSERVATIVE WAYS
PROSPERITY
1921: FEDERAL RESERVE CUT INTEREST RATES, RECOVERY BEGAN
ECONOMY BOOMED 1923 – 29:
AVERAGE ANNUAL INCOME INCREASED FROM $641 IN 1921 TO $ 847 IN 1929 (32%)
U.S. GDP GREATER THAN ALL OF EUROPE'S COMBINED
LOW INFLATION, LOW UNEMPLOYMENT (< 4%)
WHO DIDN'T PROSPER?FARMERS AND NON-UNION BLUE-COLLAR WORKERS
WHAT FUELED PROSPERITY? CONSUMERISM!
ESPECIALLY THE MODEL T! HENRY FORD'S ASSEMBLY LINE
STANDARD BLACK MODEL TO
REDUCED PRICE:
$950 - 1909$360 - 1916$290 – 1925
MOST AMERICANS COULD AFFORD A CAR – BY 1930 MOST FAMILIES HAD ONE!
INDIVIDUAL MOBILITY: A MAJOR SOCIAL CHANGE
RISE OF AUTO AGE RIPPLE SOCIOECONOMIC EFFECTS:
SOME EARLIER INDUSTRIES BOOMED OIL STEEL RUBBER GLASS
ROAD CONSTRUCTION
TOTALLY NEW BUSINESSES CREATED
GAS STATIONS AUTO MECHANICS. BODY SHOPS MOTELS ROADSIDE RESTAURANTS AND DINERS CONSTRUCTION OF SUBURBAN HOUSES
Jobs. Jobs, jobs!
RISE OF CONSUMER CREDIT:
BEFORE 1920, MOST AMERICANS THOUGHT PERSONAL BORROWING WAS WRONG EXCEPT IN EMERGENCIES
AND NOBODY WHO DIDN'T OWN LAND COULD BORROW FROM BANKS
BY 1928, 2/3 OF ALL FURNITURE, WASHING MACHINES, CARS, ETC. WERE BOUGHT ON CREDIT
WHY? ADVERTISING – PEOPLE FELT THEY NEEDED THINGS THAT DIDN'T EVEN EXIST BEFORE!
WHAT WILL HAPPEN WHEN THE LOANS COME DUE?
PEOPLE ALSO BORROWED TO BUY STOCK
"BUYING ON THE MARGIN": 10-20% DOWNPAYMENT ON STOCK, THE OTHER 80-90% BORROWED FROM BROKER
IF STOCK PRICE ROSE ENOUGH, BUYER COULD PAY BACK LOAN AND MAKE PROFIT
BUT IF STOCK PRICE FELL, BROKER ISSUED "MARGIN CALL" AND BUYER HAD TO PAY DEBT OUT OF POCKET
STOCK MARKET WENT UP AND UP IN 20s, SO PEOPLE FELT OK TO BUY ON MARGIN (IT NEVER IS!)
ANOTHER REASON FOR INCREASED PROSPERITY: MORE PEOPLE MOVING TO CITIES (HIGHER INCOMES)
SOCIAL CHANGES
"THE NEW WOMAN"
19TH AMENDMENT, 1920 – WOMEN COULD VOTE
DID IT MAKE A DIFFERENCE IN ELECTIONS?
HEMLINES WENT UP, DID MORALS GO DOWN?
MORE WOMEN WORKED OUTSIDE HOME, MORE WENT TO COLLEGE
OUT WITH THE OLD, IN WITH THE NEW!
"THE FLAPPER" – FREE, FUN-LOVING, SEXUAL, SMOKING, DRINKING, DANCED THE CHARLESTON . . .
LIBERATION, OR A NEW FORM OF OPPRESSION?
MISS AMERICA PAGEANT, 1926
WOMEN ENCOURAGED TO STRUT AROUND HALF-NAKED FOR ENJOYMENT OF MEN
"THE STENO POOL": OFFICE CLERICAL WORK BECAME FEMINIZED
1920S STYLES: FOR THE FIRST TIME, MOST PEOPLE WORE READY-MADE, NOT HOME-MADE, CLOTHES – AND THEY WERE MODERN CLOTHES
RISE OF MASS HOMOGENIZED CULTURE, DUE TO MOBILITY, RADIO AND FILM
FIRST FULL-LENGTH MOTION PICTURE: BIRTH OF A NATION, 1915: RACIST (GLORIFIED KKK)
FIRST "TALKIE" – THE JAZZ SINGER (1920) – ALSO RACIST (YOU SAW A CLIP FROM IT EARLIER!)
1920S – A NEW KIND OF CELEBRITY– ATHLETES, PILOTS
BABE RUTH &TY COBB
JACK DEMPSEY
CHARLES LINDBERGH THE SPIRIT OF ST. LOUIS
MOVIE STARS: CHARLIE CHAPLIN, MARK PICKFORD ("AMERICA'S SWEETHEART"), RUDOLPH VALENTINO
AND THE CELEBRITY FAMOUS FOR BEING FAMOUS
CLARA BOW: THE "IT" GIRL – MINOR ACTRESS CELEBRATED FOR EXEMPLIFYING THE FLAPPER
COMPARE THE KARDASHIANS
JAZZ: THE 1920S IS THE "JAZZ AGE"
LOUIS ARMSTRONG, "SATCHMO": "WEST END BLUES," ONE OF THE EARLIEST JAZZ RECORDS (RECORDS THANKS TO THOMAS EDISON)
YOUNG PEOPLE FLOCKED TO BARS AND NIGHTCLUBS TO HEAR JAZZ, SMOKE, DRINK.
DRINK? HUH? WHAT ABOUT PROHIBITION (18TH AMDT?)?
PROHIBITION MAKE DRINKING GLAMOROUS!
“WHEN PROHIBITION WAS INTRODUCED, I HOPED THAT IT WOULD BE WIDELY SUPPORTED BY PUBLIC OPINION AND THE DAY WOULD SOON COME WHEN THE EVIL EFFECTS OF ALCOHOL WOULD BE RECOGNIZED. I HAVE SLOWLY AND RELUCTANTLY COME TO BELIEVE THAT THIS HAS NOT BEEN THE RESULT. INSTEAD, DRINKING HAS GENERALLY INCREASED; THE SPEAKEASY HAS REPLACED THE SALOON; A VAST ARMY OF LAWBREAKERS HAS APPEARED; MANY OF OUR BEST CITIZENS HAVE OPENLY IGNORED PROHIBITION; RESPECT FOR THE LAW HAS BEEN GREATLY LESSENED; AND CRIME HAS INCREASED TO A LEVEL NEVER SEEN BEFORE.” JOHN D. ROCKEFELLER, JR. – AND HE WAS ABSOLUTELY RIGHT!
PROHIBITION LED TO MORE ORGANIZED CRIME IN THE U.S.
LEADING PROHITION-ERA GANGSTERS – AL CAPONE AND BUGS MORAN – BOOTLEGGERS
WHEN GOVERNMENTS BAN SOMETHING PEOPLE WILL BUY NO MATTER WHAT (LIKE BOOZE AND DRUGS) IT CREATES BLACK MARKETS FOR THOSE THINGS
HOW MUST BLACK-MARKET BUSINESSES RESOLVE DISPUTES?
THROUGH VIOLENCE – “WAR”
THE “SAINT VALENTINE’S DAY MASSACRE,” 1929 – PART OF A WAR OVER CONTROL OF THE LIQUOR TRADE IN CHICAGO
SUPPORT FOR PROHIBITION BECAME ASSOCIATEDWITH “BACKWARD” ELEMENTS
HUMORIST WILL ROGERS REMARKED, “THE SOUTH IS DRY AND WILL VOTE DRY. THAT IS, EVERYBODY SOBER ENOUGH TO STAGGER TO THE POLLS."
THE NEW KKK: ("KOONS, KIKES AND KATH'LICS): NOT JUST ANTI-BLACK, ALSO ANTI-SEMITIC, ANTI-IMMIGRATION, ANTI-WOMEN'S SUFFRAGE
WOMEN'S KLAN – 500,000 MEMBERS NATIONWIDE
HIGH CULTURE OF THE 1920s
HARLEM RENAISSANCE (RESULT OF GREAT MIGRATION) – NOT JUST JAZZ – ALSO GREAT NOVELISTS AND POETS
LANGSTON HUGHES JAMES WELDON JOHNSON CLAUDE MCKAY ZORA NEALE HURSTON COUNTEE CULLEN
WHITE AUTHORS: "THE LOST GENERATION" (LARGELY EXPATRIATES. F. SCOTT FITZGERALD (WITH
ZELDA)
ERNEST HEMINGWAY AND GERTRUDE STEIN (BY PICASSO) – SHE COINED TERM"LOST GENERATION"
• F. SCOTT FITZGERALD– THE GREAT
GATSBY– THIS SIDE OF
PARADISE• 1920
• EARNEST HEMINGWAY– SUN ALSO RISES
(1926)– FAREWELL TO
ARMS (1929)
• THEODORE DREISER– AMERICAN
TRAGEDY (1925)
• SINCLAIR LEWIS– MAIN STREET
(1920)– BABBITT (1922)
• WILLIAM FAULKNER– SOLDIER’S PAY
(1926)– THE SOUND AND
THE FURY• 1929
• T.S. ELIOT– THE WASTE LAND
(1922)– THE HOLLOW
MEN (1925)
CULTURE CLASH: OLD V. NEW – THE SCOPES TRIAL
TENNESSEE'S BUTLER ACT BANNED TEACHING EVOLUTION
IN DAYTON, TN., HIGH-SCHOOL BIOLOGY TEACHER JOHN SCOPES WAS CHARGED WITH VIOLATING THE ACT
TRIAL BECAME A NATIONAL CAUSE-CELÈBRE: SCIENCE V. BIBLE
THE MOST FAMOUS LAWYERS IN THE COUNTRY HANDLED THE TRIAL: CLARENCE DARROW FOR SCOPES, WILLIAM JENNINGS BRYAN FOR TENNESSEE
DARROW LOST – BUT HE HUMILIATED BRYANT BY PUTTING HIM ON THE STAND AND QUESTIONING HIM ABOUT THE BIBLE (LIKE "WHERE DID CAIN'S WIFE COME FROM?)
DARROW QUOTATION: "WE HAVE THE PURPOSE OF PREVENTING BIGOTS AND IGNORAMUSES FROM CONTROLLING THE EDUCATION OF THE UNITED STATES."
SCOPES GOT $100 FINE – CONVICTION REVERSED ON APPEAL
TRIAL MARKED BEGINNING OF STILL-EXISTING DIVISION IN CHRISTIANITY BETWEEN FUNDAMENTALISTS AND PEOPLE WHO ACCEPT SCIENCE -- EXAMPLE: WHEN ASKED HOW OLD HE THINKS EARTH IS, MARCO RUBIO SAID IT'S "RELIGIOUS QUESTION."
THE GREAT DEPRESSION
DEFINITIONS:
RECESSION?
TWO CONSECUTIVE QUARTERS OF "NEGATIVE GROWTH" (DECLINE) IN GDP
DEPRESSION?
MORE THAN 10% DECLINE IN GDP
NOTE THAT THESE DEFINITIONS DO NOT TAKE ACCOUNT OF UNEMPLOYMENT, COLA, ETC.
EXAMPLE: RCA
1928 - $85
1929 - $505NO NEW INVENTIONS OR ANYTHING RCA DID LED TO THIS INCREASE
1928-1930: 40%
"PAPER PROFITS"SPECULATIVE BUBBLE: PRICES BEAR NO RELATION TO VALUE – SOMETIMES DUE TO FRAUD, LIES TO INCREASE STOCK PRICES
THE STOCK BOOM
BLACK THURSDAY, OCTOBER 29, 1929:MASSIVE SELLOFF – 12.9 MILLION SHARES TRADED (KEEP IN MIND – FOR EVERY SHARE SOLD, SOMEBODY BUYS – CHEAPER AND CHEAPER) MILLIONS OF MARGIN CALLS;
HOOVER AND MELLON CLOSED THE MARKET FRIDAY, DECLARED BUSINESS SOUND
MONDAY, N.Y. BANKERS, LED BY NYSE V.P. RICHARD WHITNEY, BOUGHT BLOCS OF STOCK FOR INFLATED PRICES TO PUMP UP MARKET – BUT A PANIC HAD BEGUN BLACK TUESDAY, NOVEMBER 3: ANOTHER 16
MILLION SHARES TRADED -- $30 BILLION LOST IN A WEEK
WHAT CAUSED THE CRASH?
THE FED DROPPED INTEREST RATES, 1921 – 28 LOTS OF $$ IN CIRCULATION
PLUS THE AVAILABILITY OF MARGIN BUYING
STOCK MARKET BOOM
MARKET FEVER OVERSPECULATION, INFLATED STOCK PRICES (BULL MARKET)
FED RAISED INTEREST RATES 1929 STOCK SELLOFF (BEAR MARKET) PRICES PLUMMET
THIS TRIGGERED TNE GREAT DEPRESSION, BUT IS ONLY ONE OF THE CAUSES OF IT
BY JUNE, 1932…TOTAL VALUE OF STOCK = 1/5 OF ’29 VALUE!BUT REMEMBER: FOR EVERYONE WHO SELLS AT A LOSS, A BUYER GETS A GREAT DEAL –"SHEARING THE SHEEP"
THE BUSINESS CYCLE: PROBABLY INEVITABLE IN MARKET ECONOMY. LAISSEZ-FAIRE ECONOMISTS AND REPUBLICANS BELIEVE IT'S ALWAYS OR MOSTLY SELF-CORRECTING
UNEMPLOYMENT (OVERSUPPLY OF WORKERS)
WAGES, CONSUMER CONFIDENCE
PURCHASING
SUPPLY OF GOODS PRODUCTIONAND EMPLOYEEES
SUPPLY AND DEMAND: EMPLOYMENT AND PRODUCTION – THE VICIOUS CYCLE
WHAT CAN STOP THIS CYCLE?EITHER A NEW INDUSTRY OR MARKET
OR MASSIVE GOVERNMENT SPENDING!
CAUSES OF GREAT DEPRESSION: WHYDID A TROUGH IN THE BUSINESS CYCLE DEPRESSION?
*UNEVEN DISTRIBUTION OF WEALTH: TOP .5% CONTROLLED 60% OF NATIONAL NET WORTH
*WORLDWIDE ECONOMIC CONDITIONS• WAR DEBTS/ REPARATIONS• HIGH U.S. TARIFFS – FORDNEY-MCCUMBER, SMOOT-
HAWLEY, 1930 TRADE WAR, REDUCTION OF EXPORTS (61% FROM SMOOT-HAWLEY ALONE) INTERNATIONAL TRADE WAR
*AGRICULTURALOVERPRODUCTION FARM DEPRESSION
*INDUSTRIAL OVERPRODUCTION, MOUNTING SURPLUSES OF DURABLE GOODS
*WEAK AND UNREGULATED BANKING SYSTEM
CAUSES OF GREAT DEPRESSION, CONT'D
*GOVERNMENT POLICIES: REPUBLICAN LAISSEZ-FAIRE (DO NOTHING , OR HELP BUSINESS AND HOPE IT TRICKLES DOWN)
*FEDERAL RESERVE: RAISED INTEREST RATES 1929 – 32 (TO COMBAT WAGE AND PRICE INFLATION): REDUCED MONEY SUPPLY BY 1/3 – MASSIVE CREDIT CRUNCH, BANKS WOULDN'T EVEN LEND TO EACH OTHER
*MASSIVE CONSUMER DEBT
*THE BUSINESS CYCLE
THE DOWNWARD SPIRAL OF DEFLATION: -
LOSS OF PAPER PROFITS LESS DEMAND FOR GOODS & SERVICES LESS PRODUCTION LESS EMPLOYMENT EVEN LESS DEMAND LESS $ IN CIRCULATION (AND FED MADE IT WORSE) CREDIT CRUNCH FEWER FACTORIES, NEW HOMES, ETC. LESS EMPLOYMENT EVEN LESS DEMAND
NOT ON DIAGRAM: PEOPLE LOST LIFE SAVINGS IN BANK FAILURES, STOCK MARKET CRASH --LESS DEMANDAND SO ON DEPRESSION
BANK FAILURES
BANK FAILURES OR RUMORED FAILURES BANK RUNS. PEOPLE FLOCKED TO BANK TO WITHDRAW $, WHEN BANK RAN OUT OF CASH IT CLOSED. PEOPLE DID NOT GET THEIR $ OUT LOST IT FOREVER!
A Bank Run
EFFECTS OF THE DEPRESSION?
ITEM 1929 1932
-GNP $104B $54B-INV. CAPITAL $ 10B $ 1B-INCOME $82M $40M-EXPORTS $5.2B $1.6B -UNEMPLOYMENT 3% 25%
ECONOMIC EFFECTS IN A NUTSHELL
-CORPORATE PROFITS FELL BY 50%
FARM PROFITS FELL BY 61%
BUSINESS FAILURES FELL BY 30%
STOCK VALUES FELL BY 83%
9000 BANKS FAILED LOSS OF $3.5B IN DEPOSITORS' $
GDP BEGAN TO IMPROVE IN 1933 DUE TO THE NEW DEAL. IT HEADED BACK DOWN WHEN CONGRESS CUT SPENDING – BUT WWII STARTED
EMPLOYMENT IS A "LAGGING INDICATOR"
WHAT WERE THE HUMAN EFFECTS OF THE GREAT DEPRESSION?
• FRED BELL• FORMER MILLIONAIRE• SELLING APPLES…
HOMELESSFAMILY
18 YEAR OLD MOTHER AND CHILD
AN UNEMPLOYMENT LINE
BREAD LINE
Soup Line
SOUP LINE
HOOVERVILLE -- SEATTLE
THE DUST BOWL . . . ON TOP OF EVERYTHING ELSE FOR FARMERS!
CAUSES:
GREAT PLAINS FARMERS DESTROYED THE SOD THAT PREVENTED SOIL EROSION, TRAPPED MOISTURE FROM SCANT RAINFALL (FOR MILLIONS OF YEARS)
DIDN'T PLANT GROUND COVERS, ROTATE CROPS OR DO ANYTHING ELSE TO PREVENT EROSION
1930S = DROUGHT YEARS
SOIL JUST BLEW AWAY
AND WHEN IT DID RAIN -- FLOODS
EFFECTS OF DUST BOWL
DROUGHT AND DEPRESSION – DOUBLE WHAMMY. MADE DEPRESSION WORSE
500,000 FAMILIES MADE HOMELESS
MAJOR MIGRATIONS MASSIVE DEMOGRAPHIC SHIFTS IN SHORT PERIOD OF TIME
2.5 MILLION PEOPLE MOVED FROM GREAT PLAINS STATES
NOT ALL FARMERS – ALSO PROFESSIONALS, MERCHANTS -- WHEN FARMERS LEFT, THERE WAS NO MORE MARKET FOR GOODS AND SERVICES
200,000 TO CALIFORNIA (ALL CALLED OKIES)
ALSO MANY MEXICAN-AMERICANS MOVED NORTH FROM LOWER DUST-BOWL STATES (MOST TO CALIFORNIA, BUT SOME TO CHICAGO AND OTHER MID-WESTERN CITIES)
N.B. – DURING 1930s ≈ 500,000 MEXICAN-AMERICANS DEPORTED TO MEXICO, INCLUDING NATIVE-BORN U.S. CITIZENS
MASSIVE INCREASE IN CALIFORNIA POPULATION
WHY DID SO MANY GO TO CALIFORNIA? IRRIGATION OF SACRAMENTO VALLEY
AGRIBUSINESS
LED TO "SOUTHERN RURAL" CULTURE IN PARTS OF CALIFORNIA (E.G. BAKERSFIELD); MEXICAN IN OTHERS (E.G. PARTS OF L.A., OXNARD)
"OKIES"
"MIGRANT MOTHER" - PHOTO BY DOROTHEA LANGE, WPA PHOTOGRAPHER
AND PEOPLE DISTRACTED THEMSELVES WITH ESCAPIST MOVIES, MUSIC, DANCING TO SWING MUSIC
SEE PP ON MY WEB SITE, "DEPRESSION DISTRACTIONS" AND RELATED MEDIA FILES
GOVERNMENT EFFORTS TO END THE DEPRESSION
HERBERT HOOVERSTANFORD-EDUCATED ENGINEE FORMERLYKNOWN AS "MR. CAN-DO"
“RUGGED INDIVIDUALISM”
1929: MOSTLY REPUBLICAN LAISSEZ-FAIRE
LOOKING AT THIS DATA, IF YOU WERE HOOVER, HOW WOULD YOU RESPOND?
THE REPUBLICAN PARTY POSITION
NO DEFICITS!
EVERY PENNY OF NEW SPENDING HAD TO BE OFFSET BY TAX INCREASES
(SAME AS TODAY EXCEPT NOW REPUBLICANS OPPOSE TAXES AND SAY NEW SPENDING MUST BE OFFSET BY SPENDING CUTS)
HOOVER DIDN'T ALWAYS AGREE, ESPECIALLY AS THE 1932 ELECTION NEARED, BUT PROPOSED NOTHING THAT HELPED.
HOOVER JOKES IN 1932
HOOVERVILLES: SHANTYTOWNS OF HOMELESS PEOPLE
HOOVER FLAGS: EMPTY PANTS POCKETS TURNED INSIDE OUT
HOOVER HOGS: ROAD KILL…MMM SOUNDS TASTY!
HOOVER BLANKET: NEWSPAPER – USED AS COVER FOR SLEEPING ON PARK BENCH
MAY 1932 – THE BONUS VETERANS MARCH AND HOOVER REACTION – DOOMED HIS CAMPAIGN
"IT'S THE ECONOMY, STUPID!" (JAMES CARVILLE) – HOOVER PROBABLY COULDN'T WIN RE-ELECTION IN 1932 ANYWAY
1924: OVER COOLIDGE'S VETO, CONGRESS PASSED "BONUS" BILL FOR WWI VETS
TYPICALLY SHABBY TREATMENT OF VETS: ONLY $20 PAID IMMEDIATELY, THE REST A 20-YEAR BOND (TOTAL FACE VALUE NEARLY $4 BILLION)
VETS COULD BORROW 22% OF THEIR BONUS IMMEDIATELY: BUT IN DEPRESSION, THEY NEEDED IT ALL
IN THE 1930s, MEN STARTED LEAVING U.S. TO WORK IN SOVIET UNION (STALIN WAS INDUSTRIALIZING, THERE WERE JOBS THERE) -- ABOUT 100,000 WOULD GO DURING THE DEPRESSION – DIDN’T MAKE GOV'T HAPPY!
JUNE 15, 1932: TO ATTEMPT TO HALT EXODUS TO SOVIET UNION, THE HOUSE PASSED THE WRIGHT-PATMAN BILL ALLOWING VETS TO GET BONUSES – BUT CHANCES IN SENATE WEREN'T GOOD
JUNE 17: THE BONUS EXPEDITIONARY ARMY BEGAN TO ARRIVE IN IN WASHINGTON AND CAMPED IN HOOVERVILL ON ANACOSTIA FLATS (S.E. D.C.) (SENATE VOTED AGAINST WRIGHT-PATMAN THAT DAY)
ABOUT43,000 PEOPLE, INCLUDING ≈ 17,000 VETS, THEIR FAMILIES AND MISCELLANEOUS SUPPORTERS
THEY CAME TO PROTEST– BUT MANY WERE HOMELESS, HAD NOWHERE ELSE TO GO
THEY BUILT A HOOVERVILLE ON THE ANACOSTIA FLATS IN S.W. D.C.
LAID OUT STREETS, PUT IN PLUMBING
BONUS ARMY MARCH ON CAPITOL, JUNE 17, 1932
JULY 18: ATTORNEY GENERAL ORDERED POLICE TO EVICT THE BONUS ARMY: CAMPERS CORNERED POLICE, POLICE SHOT AND KILLED TWO VETS
HOOVER THEN ORDERED ARMY TO EVICT THE BONUS ARMY
GENERAL DOUGLAS MC ARTHUR IN COMMAND, ASSISTED BY GENERALS GEORGE PATTON AND DWIGHT D. EISENHOWER LED THE CAVALRY ATTACK ON THE BONUS VETS
JULY 28 POLICE ATTACK ON BONUS ARMY CAMP
CAVALRY ATTACKED VETS WITH TANKS, FIXED BAYONETS AND ADAMSITE GAS (INDUCED VOMITING)
55 VETS INJURED, 135 ARRESTED, ONE VET'S WIFE SUFFERED MISCARRIAGE
ARMY THEN BURNED THE HOOVERTOWN
AFTER THE ATTACK AND BURNING THE CAMPS, VETS WERE ARRESTED, INCLUDING DISABLED VETS
HOOVERFDR
FRANKLIN DELANO ROOSEVELT, 1882-1945, PRESIDENT 1933 – 1945. HIS LEGS WERE PARALYZED FROM POLIO IN 1921, BUT THE PUBLIC NEVER KNEW IT.
HIS WIFE AND COUSIN, ELEANOR ROOSEVELT – TRANSFORMATIVE FIRST LADY. ACTIVIST. LATER MEMBER OF U.S. DELEGATION TO U.N., CHAIRED COMMITTEE THAT WROTE UNIVERSAL DECLARATION OF HUMAN RIGHTS, CHAIRED JFK'S COMMISSION ON THE STATUS OF WOMEN
WHAT WERE THE OPTIONS FOR DEALING WITH GREAT DEPRESSION?
1. LAISSEZ-FAIRE: DO NOTHING, WAIT FOR CYCLE TO CORRECT SELF
2. COMMAND ECONOMY – ABOLITION OF PRIVATE OWNERSHIP OF MEANS OF PRODUCTION -- COMMUNIST OR FASCIST
THERE WERE ABOUT 20-30,000 MEMBERS OF SOCIALIST AND COMMUNIST PARTIES (INCLUDING MANY INTELLECTUALS, ARTISTS, ACTORS, STUDENTS, ETC.)
ALSO MANY "FELLOW TRAVELERS," AMONG INTELLECTUALS, ARTISTS, ETC.
FASCISM IN U.S.:
FATHER CHARLES E. COUGHLIN
OVER 30 MILLION TUNED INTO HIS ANTI-SEMITIC RADIO SHOW SUPPORTING FASCISM (NATIONALIZATION OF INDUSTRY, RAILROADS, ETC. - PRAISE FOR MUSSOLINI AND HITLER)
3. POPULISM -- "SHARE THE WEALTH": HUEY LONG "THE KINGFISH", POPULIST GOVERNOR OF LOUISIANA, 1929- 32, U.S. SENATOR 1933-35: TAX CORPORATIONS, USE PROCEEDS FOR PUBLIC WORKS THAT WILL EMPLOY PEOPLE, SCHOOLS, AND PENSIONS
ROBERT PENN WARREN'S GREAT NOVEL, ALL THE KING'S MEN IS ABOUT LONG – MUST-READ!
JOHN MAYNARD KEYNES (BRITISH), “THE FATHER OF MODERN MACROECONOMICS”
YOU’LL LEARN ALL ABOUT HIS THEORIES IN AP MACRO
BUT FOR NOW: HE POSITED:
BUSINESS CYCLE DOES NOT AUTOMATICALLY CORRECT SELF.
IN TIMES OF HIGH UNEMPLOYMENT, GOVERNMENT SHOULD SPEND TO STIMULATE ECONOMY AND CREATE JOBS – EVEN IF IT REQUIRED DEFICIT SPENDING
THE NEW DEAL RELIED ON DEFICIT SPENDING RATHER THAN TAXATION
THE OPTIONS FOR ENDING DEPRESSION = 4 "Rs"
1. RELIEF2. RECOVERY 3. REFORM
4. REVOLUTION SOME OR ALL OF THE FIRST 3 Rs ARE NECESSARY TO PREVENT THE 4TH
THE NEW DEAL USED ALL OF THE FIRST THREE – THE GOAL WAS TO PUT EVERYONE WHO COULD WORK TO WORK, GIVE RELIEF TO THOSE WHO COULD NOT WORK, AND ENACT REFORMS TO PREVENT ANOTHER DEPRESSION
FIRST NEW DEAL AND SECOND NEW DEAL, AND "THE SWITCH IN TIME THAT SAVED NINE"
IN A SERIES OF DECISIONS IN 1933 & 1934. SUPREME COURT HELD THAT KEY ASPECTS OF FIRST NEW DEAL WERE UNCONSTITUTIONAL UNDER DOCTRINE OF "SUBSTANTIVE DUE PROCESS" ALL IN 5-4 DECISIONS
AGRICULTURAL ADJUSTMENT ACT – TO RAISE FARM PRICES. GOV'T PAID FARMERS NOT TO PLANT CROPS, RAISE LIVESTOCK, BOUGHT SURPLUS GRAIN RELIEF
NATIONAL RECOVERY ACT – ALLOWED INDUSTRIAL GROUPS TO FIX PRICES OF MANUFACTURED GOODS, REGULATED LABOR RELATIONS. RECOVERY
FDR'S RESPONSE = COURT REFORM BILL AKA "COURTPACKING PLAN" – PROPOSED ADDING 6 NEW S.C. JUSTICES (WHOM HE'D APPOINT)
UNPOPULAR, PART OF THE REASON REPUBLICANS WON ENOUGH SEATS IN CONGRESS IN '38 TO JOIN WITH CONSERVATIVE DEMS TO SHUT DOWN NEW DEAL RECOVERY PROGRAMS
IN WEST COAST HOTEL v. PARRISH (1937) ONE JUSTICE, OWEN ROBERTS, SWITCHED SIDES, REJECTED SUBSTANTIVE DUE PROCESS
DID HE DO IT BECAUSE OF FDR'S COURT- PACKING PLAN? HISTORIANS DISAGREE – I SAY YES
SOME HISTORIANS THING THE SECOND NEW DEAL (1935 – 1938) WAS MORE LIBERAL THAN THE FIRST (1933 – 1934) MORE ORIENTED TO PERMANENT REFORMS
YEAH, BUT IT LASTED LONGER!
EXAMPLES OF RECOVERY MEASURES THAT WORKED:
CIVILIAN CONSERVATION CORPS, 1933 - 1945: GOVERNMENT HIRED 2.5 MILLION YOUNG MEN AGED 18-20 TO PLANT TREES, BUILD PARKS, ETC.
WORKS PROGRESS ADMINISTRATION,. 193: EMPLOYED OVER 8.5 MILLION PEOPLE: LABOR TO BUILD ROADS, PARKS, DAMS, ETC., ALSO PAINTERS, PHOTOGRAPHERS, ACTORS, SINGERS, HISTORIANS, SOCIOLOGISTS, PYSCHOLOGISTS – EVERY JOB!
RELIEF: SOCIAL SECURITY ACT OF 1935: THE BEGINNING OF THE U.S. AS A WELFARE STATE
WELFARE FOR OLD PEOPLE (65+) AND WIDOWS (SURVIVORS)
PAYROLL TAXES ON CURRENT WORKERS FUND BENEFITS FOR RETIREES AND WIDOWS (OR WIDOWERS)
PAYROLL TAXES GO INTO SOCIAL SECURITY TRUST FUND – GOV'T CANNOT SPEND ON ANYTHING ELSE
REFORMS:
DURING THE FIRST "HUNDRED DAYS" FDR TOOK U.S. OFF GOLD STANDARD – ALLOWED FEDERAL RESERVE TO PUMP MORE DOLLARS INTO ECONOMY
BANK REFORM:
1. EMERGENCY BANKING RELIEF ACT, 1933: BANK HOLIDAY, ALL CLOSED, ONLY SOUND BANKS COULD REOPEN (DETERMINED BY FED)
BANKING ACT OF 1933: CREATED FEDERAL DEPOSIT INSURANCE CORP. INSURES BANK DEPOSITS UP TO MAX THAT VARIES WITH TIME, SO WHEN BANKS CLOSE, PEOPLE DON'T LOSE ALL THEIR $$.
STOCK MARKET REFORM: THE SECURITIES ACTS OF 1933 & 1934
1933 – MADE IT A CRIME FOR CORPORATIONS AND BROKERS TO LIE ABOUT STOCK OR OMIT MATERIAL INFO AFFECTING STOCK VALUE OR TO ENGAGE IN INSIDER TRADING
1934 – CREATED THE SECURITIES AND EXCHANGE COMMISSION TO ENFORCE '33 ACT
LABOR REFORM:
NATIONAL LABOR RELATIONS ACT / WAGNER ACT (1935) GAVE EMPLOYEES THE RIGHT TO JOIN UNIONS, REQUIRED EMPLOYERS TO BARGAIN WITH UNION OVER COMPENSATION AND WORK RULES AND NOT INTERFERE WITH EMPLOYEE RIGHTS – NLRB ENFORCES
FAIR LABOR STANDARDS ACT OF 1938
MINIMUM WAGE (CURRENTLY $7.25/ HR = $14,500/YEAR (BELOW CURRENT POVERTY LINE FOR FAMILY OF 4, $23,500)
MAXIMUM WORK HOURS @ REGULAR PAY= 40/ WEEK. "TIME AND A HALF" FOR OVERTIME
CHILD LABOR BANNED –KIDS 12-14 CAN'T WORK EXCEPT FOR PARENTS AND DELIVERING NEWSPAPERS, LIMITED JOBS KIDS 14 – 17 CAN DO (NOTHING "UNSAFE")
THE RESULT – THE NEW DEAL, MOSTLY THE CCC AND WPA WORKED. PEOPLE WHO DENY IT NOW DO IT FOR POLITICAL REASONS OR OUT OF IGNORANCE
WHAT DOES HISTORY OF NEW DEAL TELL US ABOUT THE WISDOM OF CUTTING GOVERNMENT SPENDING NOW, WITH 7.7 UNEMPLOYMENT RATE? WHAT DOES IT SUGGEST WE SHOULD DO TO INCREASE JOBS?