The Great Depression

1. APUSH The Great Depression

2. Top 10 • Black Tuesday • Global Depression • Agricultural Marketing Act of 1929 • Election of 1932 • Scottsboro Case • American Communist Party • Franklin Delano Roosevelt • Herbert Hoover’s presidency • Japanese American Citizen League • Dust Bowl

3. The Great Crash • February 1928 – October 1929 • economic boom • stock prices rose dramatically • credit easily available • Buying on margin • October 29, 1929 • “Black Tuesday” • stock market crashed

4. Causes of the Great Depression • In the capitalist system recessions are cyclical • The Great Depression was a severe recession • It was such a large crash because: • lack of diversification (many overinvested in automobiles and construction) • Mal-distribution of wealth • consumers receiving too little money to spend to keep pace with growing markets and supplies • rising unemployment due to natural cycle and from technology

5. Causes of the Great Depression • Credit structures and indebtedness of farmers threatened banks • Banks also threatened by risky investments and loans in stock markets • US foreign exports declined because • some European nations’ productivity was increasing • others facing financial difficulties • International debt structure after WWI in which nations sought new loans to pay off existing Allied loans • Central nation reparations weakened the US economy after 1929 • left countries without resources to repay loans • began to default

6. Progress of Depression • Stock market crash triggered chain of events that further weakened economy over next 3 years • Banking system collapsed and billions of dollars in deposits lost • money supply contraction exacerbated by 1931 Federal Reserve interest raises • GDP, capital investment, gross farm product all down at least 25% by 193 • In 1932 national unemployment had risen to 25% (much more in some cities)

7. Unemployment and Relief • Americans were taught to believe that the individual is responsible for his/her own fate • poverty sign of own failure • The small relief system of the 1920s was incapable of dealing with new demands • The government was hesitant to increase support • decreasing tax revenues • welfare stigma. • Bread lines found in cities

8. Unemployment and Relief • In rural areas income declined 60% • 1/3 of farmers lost land • Massive drought extended through the “Dust Bowl” • starting in 1930 lasting for a decade • farm prices so low that many farmers left homes to seek employment (“Okies”) • Nationwide problems • Malnutrition • Homelessness • growth of shantytowns • massive migrations of people across the country seeking jobs and better living conditions 

9. African-Americans and the Depression • Most southernblacks were farmers • collapse of cotton and staple crop prices led them to leave land • menial jobs they had held in cities began to be given to whites • Mass migration of jobless southern blacks to Northern urban centers • Segregation and black disenfranchisement remained, but famous Scottsboro case in which group of 7 blacks falsely accused of rape resulted in national attention b/c of NAACP support • NAACP began working to increase black participation in unions and organized labor

10. Mexican-Americans and the Depression • Large Mexican immigrant (Chicano) population • centered mostly in Southwest • worked mainly menial jobs or as unskilled laborers in urban areas • When the Depression hit many whites forced them from their jobs • Relief to Mexicans severely limited • many rounded up to be sent back to Mexico • discrimination of Hispanics swept the region

11. Asian-Americans and the Depression • Depression strengthened pattern of economic marginalization of Asian American populations • centered mainly on the West coast • frequently lost jobs to whites desperate for employment • Some Japanese sought to form clubs to advance political agendas: • Japanese American Democratic Club worked for laws against discrimination • Japanese American Citizens League sought to make immigrants more assimilated

12. Women and the Great Depression • People believed that because jobs were so scarce, whatever was available should go to men • this belief strengthened the notion of women’s main role staying in the home • feelings that no woman with an employed husband should hold a job • Single and married women both continued to work during Depression • needed the money • result of nonprofessional nature of “pink-collar” jobs as more secure than those in heavy industry • male stigma about taking “pink collar” jobs • Support for Reform Era ideas of women becoming economically and professionally independent began to wane • Depression saw death of National Woman’s Party

13. Depression Families • Middle- and working-class families who experienced a rising standard of living in the 1920s, now uncertain because of unemployment or income reductions • Retreat from consumerism • women made clothes in home • home businesses established • banding together of extended family units

14. Depression Values • Pre-Depression acceptance of affluence and consumerism remained unchanged as people worked even harder to achieve ideals • Longstanding belief that individual controlled own fate and success through hard work (“success ethic”) largely survived the Depression • many unemployed simply blamed themselves • remained passive because they felt ashamed • Masses responded to messages that they themselves could restore their own wealth and success • How to Win Friends and Influence People by Dale Carnegie

15. Artists and Intellectuals in the Great Depression • Just as urban poverty had received attention during the Reform Era, during the 1930s many shocked at “discovery” of rural poverty • photography of Farm Security Administration photographers highlighted impact of hostile environment on people

16. Artists and Intellectuals in the Great Depression • Many writers began to highlight social injustices • Erskine Caldwell’s Tobacco Road(1932) of rural poverty • Richard Wright’s Native Son of urban ghettos • John Steinbeck’s novels of migrant workers • John Dos Passso’s USA trilogy attacked capitalism

17. Radio • Almost every family had radio and listening was often a communal activity • Most radio programming was entertaining and escapist in nature • comedies or adventures • soap operas • live programming of performances also developed • Radio allowed access to major public events in news, sports, politics • Drew nation together because of widespread availability of same cultural and informational programming • gathered family together in the home

18. The Movies • Early 1930s movie attendance dropped because of economic hardship, but by mid-1930s attendance began to rise again • Most movies were censored heavily and studio system kept projects largely uncontroversial • Some films did manage to explore social and political questions • Most films remained escapist in order to keep attention of audience away from troubles • Walt Disney (Mickey Mouse, Snow White) • Frank Capra (Mr. Smith Goes to Washington)

19. Popular Literature and Journalism • Literature was more reflective of growing radicalism and discontentedness than radio and movies, although escapist and romantic works were still widely popular • Works challenged American popular values: • John Dos Passos’s U.S.A. trilogy (1930-1936) attacked American materialism • Nathanael West’s Miss Lonelyhearts(1933) of a woman overwhelmed by the life stories of others

20. The Popular Front and the Left • Rise of Popular Front coalition lead by American Communist Party • supported Franklin Roosevelt and New Deal • mobilized intellectuals toward social criticism • Targeted the intellectual detachment of 1920s • In the late 1930s literature became more optimistic of society • Mobilized some men into the Lincoln Brigade to fight in Spanish Civil War against the fascists • The Communist Party • organized the unemployed and unions • supported racial justice • The party was under control of Soviet Union • when Stalin signed 1939 Nonaggression Pact with Hitler, the Party abandoned the Popular Front • returned to criticizing liberals

21. The Popular Front and the Left • The Socialist Party of America under Norman Thomas attempted to argue that the crisis was a failure of capitalist system • tried to win support for party by targeting rural poor • supported Southern Tenant Farmers Union • never gained much strength • Antiradicalism was a strong force in 1930s • hostility existed toward Communist Party • at the same time Left widely respected amongst workers and intellectuals • Famous accounts of social conditions of the era: • James Agee’s Let Us Now Praise Famous Men (1941) • John Steinbeck’s The Grapes of Wrath(1939)

22. The Hoover Program • Hoover responded to the Depression by trying to restore confidence in economy • tried to gather businesses into voluntary program of cooperation to aid recovery • by 1931 voluntarism had collapsed because of the worsening economy • Hoover tried using government spending to boost the economy • spending wasn’t enough in face of huge economic problems • sought to raise taxes 1932 to balance budget • Offered Agricultural Marketing Act • to help farmers with low crop prices • raised foreign agricultural tariffs in Hawley-Smoot Tariff of 1930 • neither helped

23. The Hoover Program • Democrats gained the majority in the House and increased in the Senate in 1930 elections by promising government economic assistance • Hoover’s unpopularity grew • shantytowns called “Hoovervilles” • In 1932 Congress created the Reconstruction Finance Corporation (RFC) to give loans to • imperiled banks • Railroads • Businesses • RFC failed to improve the economy because • it lent largely to big institutions • didn’t sponsor enough relief and public works

24. Popular Protest • By 1932 dissent beginning to come to a head: • Farmers’ Holiday Association attempted farmer’s product strike • veterans in “Bonus Army” marched on Washington to protest withholding of bonuses • Hoover called on Army units under General Douglas MacArthur to clear Bonus Army out of city • Popular image of Hoover as unsympathetic and unable to act effectively

25. The Election of 1932 • Republicans re-nominated Hover as candidate • Democrats nominated NY Governor Franklin Delano Roosevelt • Roosevelt avoided religion and prohibition, focused on economic grievances of nation • Roosevelt won large majority of popular vote and even more overwhelmingly in electoral college • Democrat majorities elected to House and Senate signified mandate for change

26. The “Interregnum” • The period between election and inauguration was one of increasing economic problems • expanding banking crisis • more depositors seeking to withdraw money in a panic • more banks declared bankruptcy • Roosevelt refused to make public commitments asked of him by Hoover to maintain economic orthodoxy or not institute broad economic reforms