Part two: Bust - Americans’ experiences of the Depression and

Paper 1: Understanding the Modern World Section A: Period Studies AD America, 1920-1973: Opportunity and inequality Learning Objectives

At the end of the lesson, students should be able to: ❏ compare and contrast the policies employed by Hoover and Roosevelt to address the ; ❏ assess how effective Roosevelt’s New Deal programme was; and ❏ evaluate how the Second World War affected the American economy and people’s social lives.

Important Keywords

Great Depression Export New Deal Wall Street Crash Stock Market Fireside Chats This module explores the 3 experiences of Americans during the Depression and the New Deal. It tackles the following, in particular: ❏ American society during the Depression; ❏ the effectiveness of the New Deal on different groups in society; and ❏ the impact of the Second World War on America.

A billboard during the Great Depression in the U.S. American society during the Depression: 4 unemployment; farmers; businessmen Leading to the Great Depression

In the 1920s, many Americans began to invest in the stock market, increasing share prices.

In 1929, the economic boom in the U.S. came to an end with the During World War I catastrophic Wall Street Crash, which (1914-1918), the saw small investors panic sell their United States, in shares. contrast to many The Wall Street Crash on 24 European October 1929, also became countries, gained economic known as Black Thursday prosperity. in the U.S. American society during the Depression: 5 unemployment; farmers; businessmen Impact of the Great Depression on American society

UNEMPLOYMENT. Even FARMERS. From 1930 When drought returned, much of the before the Depression, to 1940, farm American region had become a dust many American workers production was also bowl. Moreover, grasshoppers were paid low wages. affected by the stock invaded fields damaging corn, beans, By 1933, the level of market. Farmers were and pasture crops. Despite trying to unemployment had plagued by chinch bugs, produce more, farmers were still risen to 25%, equivalent bad weather conditions, unable to pay their debts. As a result, to about 13 million and low prices for many farmers went bankrupt, lost Americans, making it produce. In 1934, their farms and became angry with the highest rate in U.S. drought hit American the government. Some participated in economic history. The farmers. The following ‘Farm Strikes’ setting up blockades on number did not drop year, rain then farm products and preventing delivery below 10% until the U.S. devastated farmers as trucks from entering the cities. joined World War II in they were unable to Despite their efforts, prices 1939. harvest due to wet of farm products did fields. not increase. American society during the Depression: 6 unemployment; farmers; businessmen Impact of the Great Depression on American society

BUSINESSMEN. After Between 1929 and From 1929 to the Wall Street Crash, 1933, industrial 1932, the stock Americans lost production fell by confidence in the market lost 90% country’s financial 47% of its value. system. People saving GDP or the Gross money in banks began Domestic Product Deflation reached 30% to withdraw their decreased by from 1930 to 1932, money, which the banks 30% which forced many to were unable to fulfil become migrant because they had By 1933, about workers. invested much of the 20% of American money in the stock banks announced market. As a result, their closure. some banks completely collapsed. American society during the Depression: Hoover’s 7 responses and unpopularity By 1929, seven Hoover followed the In 1930, Hoover passed months after he preceding Republican took his oath of the Hawley-Smoot Tariff economic concept of Act, which increased office, the U.S. laissez-faire, where stock market import duties on foreign markets are free to do goods. As a result, completely business without collapsed, foreign countries government refused to trade with signalling the interference. start of the Great the U.S. Depression. US President Not following the He also employed rugged In 1928, Republican Republican Party’s ideas for individualism, which made Herbert Hoover addressing the economic crisis, Hoover initiated people responsible for became the 31st measures to balance the their own life struggles president of the United budget and refrain from without government States. borrowing money. support. American society during the Depression: Hoover’s 8 responses and unpopularity Responses to deal with the crisis

Moreover, relief In February 1932, agencies were also set he introduced the up to assist with and Reconstruction coordinate local relief Finance efforts, i.e. the Corporation President’s Organisation intended to for Unemployment stimulate industry Relief. He insisted that and create jobs each community and through federal aid Image of the Penny Auctions state assume full worth responsibility for the $2 billion. Loans In 1929, the Agricultural Marketing Act assisted employment of its were given to ailing American farmers through marketing groups called people. Hoover also cut banks, insurance co-operatives. This act tried to control the prices of taxes by and railroad farm goods by ensuring the products were sold and $130 million. companies. the farmers earned a profit. American society during the Depression: Hoover’s 9 responses and unpopularity

Was Hoover successful?

Hoover’s initial policies were not effective, as unemployment continued to rise in 1932.

Despite Hoover’s attempts to revive the American economy, he was unable to escape the rise of unemployment and continued economic depression. On the other hand, he was successful in a number of things: ❏ States and local governments were able to expand infrastructure programmes. ❏ Banks and homeowners were financially supported. Political cartoon of Herbert Hoover trying to remedy the Great Depression American society during the Depression: Roosevelt’s 10 election as President In the November 1932 Presidential election, Roosevelt defeated reelectionist Hoover with 22,810,000 votes compared to his rival’s 15, 759,000 votes. Franklin D. Roosevelt, a Democrat, won by a landslide 42-6 states and became the 32nd president of the United States. Hoover’s unsuccessful attempts to solve the Depression made him U.S. President Franklin D. Roosevelt unpopular. Franklin Delano Roosevelt was the governor of New York before being elected president. He popularised ‘fireside chats’ or a series of addresses to the public through radio broadcasts. He Inauguration of U.S. President Franklin D. introduced the New Deal, which redefined the role of the federal Roosevelt on 4 March 1933 government and renewed public confidence in overcoming the Great Depression. American society during the Depression: Roosevelt’s 11 election as President “I pledge myself to a new deal for the American people.” - Franklin D. Roosevelt at the 1932 Democratic National Convention

Historians suggest that the election of Roosevelt was Watch U.S. the beginning of a President Franklin democratic coalition in D. Roosevelt’s American politics. It meant inaugural address. that African-Americans and other minority groups in the Access the video United States would be using this link heard. Moreover, Roosevelt https://www.youtu showed optimism in facing be.com/watch?v=rI the Great Depression KMbma6_dc compared to Hoover’s failed attempts in addressing the crisis. Effectiveness of the New Deal on different groups in society: 12 successes and limitations including opposition towards the New Deal from the Supreme Court NEW DEAL = Relief, BANK HOLIDAY. On 5 END OF PROHIBITION. With Recovery and Reform. With March 1933, Roosevelt aims to end the Great the election of Democrat declared a four-day banking Depression, Roosevelt urged Franklin D. Roosevelt as holiday, which prevented Congress to end Prohibition. president, he immediately Americans from By the end of the year, instituted a series of withdrawing money from through the 21st programmes which came to unstable banks. It was Amendment, Prohibition be known as the New Deal. followed by the passage of was ended and the buying These programmes aimed to the , and distributing beer in the provide jobs for Americans which reorganised banks United States was legalised. and stabilise the economy damaged by the Great and closed those that were As a result, the government Depression. Over a span of insolvent. Furthermore, regain public confidence. eight years, Roosevelt Roosevelt began his radio attempted to execute various broadcast ‘fireside chats’ to programmes to relieve the persuade Americans to put American economy. their savings back in banks. Effectiveness of the New Deal on different groups in society: 13 successes and limitations including opposition towards the New

Deal from Supreme Court Opposition Opposition from SupremeCourtthe

BUDGET CONTROL. However, members of the conservative majority in the In order to finance the New Deal, Supreme Court argued that some of Roosevelt’s New Roosevelt borrowed huge amounts of Deal programmes, such as the National Recovery money for projects. He also ensured Administration and the Agricultural Adjustment there was no budget deficit. Administration, were unconstitutional.

ALPHABET AGENCIES. In defence of his programmes, FDR added liberal Roosevelt also created a number of justices to the Supreme Court to neutralise the agencies to address specific issues conservatives. As a result of ‘Court-packing’, the and projects. They included, among administration’s public relations was affected and it others, the formation of Civilian gained further congressional opponents. Out of 16 Conservation Corps (CCC), Civil Works alphabet agencies under the New Deal, 11 were Administration (CWA), Farm Credit declared unconstitutional by the Supreme Court. They specifically pointed out that Administration (FCA), and the National Roosevelt’s imposition of power over the Recovery Administration (NRA). federal government was unconstitutional. Effectiveness of the New Deal on different groups in society: 14 successes and limitations including opposition towards the New Deal from Republicans and Radicals

Among the New Deal’s famous Another known critic of Roosevelt opponents was Senator was Charles Coughlin, a Catholic from Louisiana, who proposed an priest who established the alternative called ‘Share Our National Union for Justice and Wealth’. His idea aimed to ran a radio programme which confiscate any personal wealth specifically attacked the exceeding $3 million to distribute president for being an ‘anti-God’. to every American family. Along with Frances Townsend Moreover, he promised pensions and Gerald Smith, Coughlin for the elderly, cheaper food for the attempted to tap into Republican poor, and a standard national support in the 1936 election. minimum wage. Under Long’s An article written about Senator Huey Despite Roosevelt’s landslide P. Long after his death leadership, the state of Louisiana victory, Republican opponent Alf became known as the ‘Kingfish’ “Everybody is against me Landon still got 16 million votes. because he essentially ran the except the voter.”

Opposition from Republicans and Radicalsand Republicans from Opposition state. - Franklin Roosevelt The effectiveness of the New Deal on different groups 15 in society: Roosevelt’s contribution as president

Later in the 1930s, the economy returned to a recession but it was halted by the bombing of Pearl Harbor and the U.S.’s entry into WWII. By this time, the Great Depression in America had ended.

Achievements of Franklin D. Roosevelt achieved the following under the New Deal: Roosevelt ❏ About $4.8 billion was utilised for relief programmes. Teachers were put back to work. ❏ The number of labour union members increased from 3 million in 1933 to 9 million in 1939. Roosevelt ensured that the rights of workers were protected against unfair practices of employers. ❏ State benefits were offered to the elderly, the orphaned, widowed and those injured in industrial accidents. ❏ All employees of businesses with interstate commerce were protected with minimum wages and maximum working hours. ❏ Child labour was prohibited, except on farms. The effectiveness of the New Deal on different groups 16 in society: Roosevelt’s contributions as president

Success Indicators of He restored public confidence in the The semi-welfare state provided Roosevelt’s New Deal federal government, especially in the pensions to the elderly, widows, the president. His administration disabled and sick through the Social strengthened the position and role of Security Act. As a result, taxpayers the central government. felt pressure.

It stabilised the American banking First Lady Eleanor Roosevelt became system and prevented further the number one campaigner for closures of businesses, but it did not social reforms regarding women. solve the Depression immediately.

Short-term jobs were created by the His administration strengthened the Alphabet Agencies. But, it was only power and position of labour unions during WWII that widespread and made negotiations between unemployment ended. employees and employers possible. The effectiveness of the New Deal on different groups in society: 17 Roosevelt’s contribution as president; popular culture

POPULAR CULTURE. In contrast to the affluence of the 1920s, the following decade epitomised thrift and simplicity. The Great Depression profoundly changed American attitudes to clothing, recreational activities, and entertainment. Afternoon radio soap operas became highly popular along with half-hour comedy shows. In film, Hollywood was populated with supporters of the political left who funded movements and had an influence on the big screen. Most films were about life in the slums, about the poor, gangsters, and the unemployed. The Great Depression ended with portrayals of hope and optimism brought by the election of Roosevelt and his New Franklin D. Roosevelt shakes hands with young Lyndon B. Deal. Heroic biographies of George Washington, Andrew Johnson, with Gov. James Allred of Texas in between. Jackson, and Robert E. Lee became instrumental in Galveston, Texas, May 12, 1937: In the 1960s, the New Deal awakening American interest in the past. In 1939, The Wizard would inspire President Lyndon B. Johnson’s Great Society. of Oz became a household movie depicting fantasy and optimism. The impact of the Second World War: 18 America’s economic recovery

World War II began in Europe in 1939. The United States was not directly involved in the war until the Axis Powers attacked its military base in Pearl Harbor, located in the territory of Hawaii. The attack on 7 December 1941 led to the official entrance of the United States into WWII as part of the Alliance.

In 1942, a year after officially joining the war, the War Production Board was set up. The WPB was established to regulate the allocation and production of materials such as fuel and steel in the U.S. during WWII.

As a result Coal, steel, iron, and oil production Impact Impact ofWWII of growing in the U.S. greatly increased. demands, Moreover, production of arms industrial drastically increased and by 1944 production the U.S. was producing half of the in the U.S. weapons in the world. doubled in Image of the Pearl Harbor Attack, 1941 1945. The impact of the Second World War: 19 America’s economic recovery

Due to conscription, unemployment in the U.S. After the war, automobile sales increased again and dropped from 9.5 million in 1939 to 670,000 by low-interest rates on home loans were offered to 1944. returning servicemen. This caused a surge in the building of houses. Moreover, consumer goods became an instant hit. By the end of the 1940s, America produced 57% of the world’s steel, 62% oil, and 80% YEARcars. Chart Analysis Following the war, new conglomerates flooded 1960s $500 the American economy. Industries included the Sheraton Hotels, Image of wartime vehicle production in Detroit 1950s $300 Continental Baking, 57% 62% Hartford Fire Insurance, 80% and Avis Rent-a-Car. Smaller business 1940s $200 franchises like Mcdonalds also Output in thousand-million emerged in many

Impact Impact ofWWII cities. The impact of the Second World War: 20 Lend Lease; exports

LEND LEASE ACT. Passed “The moment approaches… when we shall no longer be able to pay cash for on 11 March 1941, this act shipping and other supplies.” - From British Prime Minister Winston Churchill’s personal letter to U.S. President provided American Franklin Roosevelt military aid to foreign Military supplies under the nations during the Second Lend-Lease Act included World War. Using aircraft, ships, tanks, machine appropriations from tools, industrial chemicals, Congress, the president of and communication and the United States was infrastructure equipment. In authorised to transfer war A November 1939 postcard supporting aid to the addition, the U.S. also supplies to countries Allies through amendments to the Neutrality Act sent to members of Congress by private interest transported clothes and food including Britain, the groups. supplies. The programme Soviet Union, China, The Lend-Lease Act was subtitled was managed by Harry Australia, and New as “An Act to Promote the Defense Hopkins, Edward Stettinius, Zealand without payment of the United States”. and Leo Crowley, as stipulated in the successively. Neutrality Act of 1939. The impact of the Second World War: 21 Lend Lease; exports

When WWII began, agricultural exports declined as shipping became dangerous. Under the Lend- Lease Act, agricultural exports became a government-financed programme, which increased prices and income for farmers. At the end of the war, the U.S. continued to export goods to countries under the Marshall Plan. The impact of the Second World War: Social developments, 22 including experiences of African-Americans and women

Around 2.5 million African-American men were drafted into the U.S. Army, Navy, Air Force, Marine Corps, and Coast Guard. Black women also participated in the war effort as nurses, factory workers, and assistants. Despite the inclusion, African- Americans faced segregation and discrimination while serving the United States.

For a better understanding of the roles and experiences of African-Americans during WWII, watch the video documentary. Access the video using this link: https://www.youtube.com/watch?v=U3rnCPeKBwg The impact of the Second World War: Social developments, 23 including experiences of African-Americans and women

Understand the changes experienced by American women during WWII using the following guidelines: ❏ Role during the war ❏ Significance of service ❏ Consequences after the war

For a better understanding of the roles and experiences of American women during WWII, watch a video documentary. Access the video using this link: https://www.youtube.com/watch?v=nxDdVoiLHcg 24 Glossary of Terms

NEW DEAL WALL STREET CRASH STOCK MARKET

Series of programmes The event where the stock It refers to the collection of enacted by Franklin D. market in the U.S. fell in markets and exchanges Roosevelt in response to the value, which caused the which buy and sell stocks Great Depression between Great Depression in America through brokers. 1933 and 1936. from 1929 until the 1930s.

GREAT DEPRESSION FIRESIDE CHATS EXPORT

The long and severe A series of radio broadcasts Goods and services send to economic recession popularised by President another country. experienced in the United Franklin D. Roosevelt in States beginning in 1929 which he addressed the until the late 1930s. American people.