AMERICA 2 Flashcards
why was there a depression
not all Americans could afford the goods and there was a limit to the amount people could buy, factories were making them faster than they could sell them (over production) and profits were falling
companies struggled to sell goods abroad because they had put taxed on US goods
how did Wall Street crash
some shareholders began to doubt whether their shares would keep making a profit
September 1929- some people began to sell their shares
more and more people sell shares, as shareholders tried to sell shares the prices of shares dropped
black Thursday 24 October 1929- 13 million shares sol, shares prices continued to drop
29 October- 16 million shares sold and average price of shares dropped by 40 cents- shareholders lost a total of $8 billion
how did the Wall Street crash affect banks
many Americans had borrowed money from banks to buy shares
when share prices fell, they couldn’t sell their shares for enough to be able to pay their loan back
banks when bankrupt as a result - 1929- 659 banks shut
some lost their bank savings
unemployment during the depression
13 million had lost their jobs by 1932, which was 25% of working people
between 1929 and 1932, factory production dropped by 45% as people weren’t buying things
house building fell by 80%
12,000 were losing their jobs a bay by 1932
20,000 US companies went out of business
250,000 Americans stopped paying mortgages in1932
in Cleveland 50 % of workers were unemployed in 1932
every town had Hoovervilles- shacks made of scrap metal which no washing facilities or toilets, migrants lived in them as they travelled around looking for work
in 1932 YMCA, was giving away 12,000 free meals a day in New York
farmers during the depression
as most people were unemployed people couldn’t buy the farmers food, farm income hd dropped to $5 billion and international. trade fell from $10 billion in 1929 to $3 billion in 1932
new farming methods meant they also produced too much food so they dropped prices to try and sell it, which further reduced their income
as a result famers didn’t have enough money to pay their mortgages and by 1932, 1 in 20 farmers had been evicted
a drought turned land into a dust bowl, making it impossible to grow crops, even in the still had their farm
some went to California to look for work on fruit farms, but many states banned migrant workers
businessmen during the depression
the stock market crashed so they were badly affected
they were producing more foods than people could afford to buy so many went bankrupt
1929 and 1933 10,000 banks closed and 100,000 businesses went bankrupt
industrial production fell by 40%
US exports fell from $10 billion to $3 billion
business en were forced to try new things, like selling apples or newspapers
hoovers response to the depression
he believed in rugged individualism so didn’t help much at the start, however eventually he did some things to help
- set up the reconstruction finance corporation which leant money to businesses in trouble and made some small loans to farmers
- in 1930 he cut takes by $130 million so people had more money to spend
- set up road and dam building program that created jobs
- in 1932 he made $300 million available to help the unemployed, however only $30 million was actually given out
- 1930- Hawley Smoot tariff which put a higher tax on foreign goods hoping it would make Americans buy the cheaper US goods, however other countries the taxed US goods so American exports dropped further
violence and protests during the depression
some people protested calling for change
1932- 25,000 unemployed ex soldiers march to Washington and asked for their war bonus to be paid early. in response hoover set. the army on them and they used guns, tanks and tear gas.
why was hoover unpopular
believed in rugged individualism- he thought people should overcome problems for themselves and didn’t do anything to help the depression until it was too late
wasn’t a good public speaker and people thought he was uncaring
republican
why was Roosevelt popular
democrat
he helped the depression- he spent $20 million helping the unemployed, promised the 3 R’s, people liked him because he was caring, he took his messages about helping the depression around the country sometimes he made 15 speeches a day, his idea for a “new deal” was liked by the people
he relied in an active government to improve the lives of people
result of the 1932 electron
Roosevelt won- out of 48 states, 42 voted for him
why did Roosevelt aims to do during the new deal
get Americans back to work
protect peoples savings and their property
provide relief for the sick, old and unemployed
get American industry and agriculture back on its feet
why did Roosevelt do during the 100 days
emergency banking act- closed banks and had them inspected. only well run banks with enough cash would be given loans and reopened. when they did people put money back into their accounts and banks could now lend money to businesses which would create jobs when they expanded
economy act- all government employees cut by 15% saving $1 billion for the unemployed
beer act- prohibition ended, the government could raise money by taxing alcohol
what was the FCA
farm credit administration- lent money to farmers who couldn’t keep up with loan payments
what was the NRA
National recovery administration- encouraged workers and employers to work out a code of fair pay and working conditions and gave workers right to join a trade union
however many employers refused to join, leading to strikes
2 million employers joined the scheme
what was the AAA
agricultural adjustment agency - paid farmers to produce less
as a result food prices rose and farmers income increased
however the AAA was criticised because food was being destroyed while millions went hungry
what was the TVA
tennessee valley authority
provided work building dams and electric power stations along the tennessee river area
what was the HOLC
home owners loan corporation
gave loan to people struggling to pay their mortgage
between 1933 and 1936 they helped 20% of US homeowners
what was the CCC
civillian conservation corps
jobless 18-25 year olds ere put to work in the countryside reading 2.5 million jobs
what was the CWA
civil works administration
provided temporary jobs or 4 million people, building schools, airport and roads
what was FERA federal emergency relief agency
$500 million was given to states to help the homeless
soup kitchens, blankets, clothing and school placed were provided
what else did Roosevelt introduce after alphabet agencies
Wagner act -
social security act-
works progress administration
farm security administration
what was the Wagner act
forced all employers to allow trade unions to operate in their companies and made it illegal to sack workers for being in a union
what was the social security act
provided state pensions for elderly
also allowed state governments to work with federal government to provide help for the sick and disabled
set up unemployment insurance- meant if workers were unemployed that received a small benefit to help them out
what wad the works progress administration (WPA)
brought together all the organisations whose aim it was to create jobs
also extended work beyond building projects to make jobs for office workers, actors, artists
what was the farm security administration
gave loans to small farmers to help them buy their land and also build camps to provided decent living conditions and work for migrant workers
opposition to the new deal- Supreme Court
said that the AAA was illegal- it said that giving help to farmers was. matter for the state government not the federal one
declared many of the NRA codes illegal
opposition to the new deal- republicans
many republicans believed in lassies faire and rugged individualism, and were horrified by the way the new deal dominated peoples lives
they said Roosevelt was like a dictator and was making the government too powerful
opposition to the new deal- radical politicians
Huey long- suggested an alternative to the new deal called ‘share our wealth’- said all fortunes over $5 million would be confiscated and shared out and every family would receive $5000 to but a car, radio and a house
Francis Townsend- wanted everyone to retire at age 60 to give more jobs to younger people
Charles coughlin- set up the ‘national union for social justice’- which aimed to provided work and fair wages for everyone, however he made speeches attacking jews and trade unions so his support declined
impact of the new deal
created jobs- CCC employed 2.5 million, 200,000 black got jobs in CCC, Mary `McLeod (black) got an important government post, some women got jobs in alphabet agencies
number of bank failures fell
GNP rose from 1933 to 1941
number of workers strikes fell
failures of the new deal
1 in 10 were still unemployed, 6 million unemployed in 1941
CCC campsites were segregated
women still faced discrimination- may of the NRA codes set women wages lower than men- 1937 $525 for women and $1000 for men, only 8,000 women employed in the CCC out of the 2.5 million , most of the alphabet agencies were aimed to help male manual workers
workers unions were treated with suspicion
most help went to large scale farmers and many small ones didn’t get much help
music in the 1930s
jazz was still popular- artist like Louis Armstrong
performers like glen miller also became popular
gramophone sales increased as vinyl record were more widely available
28 million had a radio in 1939
radios became the focus of the living room and brought families together
local radio stations like NBC were started
cinema in the 1930s
100 million went each week
musicals with actors like Charlie Chaplin, Disney cartoons and horror films like Frankenstein were popular
first Mickey Mouse colour carton- 1932
some books made into films- grapes of wrath and reflected the conditions of the great depression, many Americans could connect with the suffering in these films
comic books in the 1930s
first appeared in early 30s
popularity increased after the release of action comics in 1938 which included the debut of superman
literature in the 1930s
authors like John Steinbeck wrote about the great depress and the poverty and racism the witnessed §
the arts in the 1930s
WPA- employed actors, artists and writers
however the WPA was criticised for wasting tax payers money
sport in the 1930s
teams like the Harlem Globetrotters were popular
some stadiums gave free admissions to women to boost family interest
could listen to sport on the radio
what was lend lease
began in march 1941
the USA loaned war material to its allies with the understanding it would be returned by the end of the war
$50.1 billions worth of materials were shipped
it helped to stimulate the economy as US businesses created the thing to be sent abroad
US exports during the war
1939- cash and carry plan- Britain and France bought US goods- this created production jobs
by 1944, USA was making half of all the weapons in the world
January 1942- war production board set up to regulate the production of fuel and materials for the war
14 million employed in factories
750,000 black found jobs in factories
americas economic recovery during the war
- 500,000 new businesses started during the war and became rich as a result of war contracts, eg coke- set up plants to follow the troops around the world
- the war effort ended unemployment
- famers lives improved as the USA exported food to allies
- as demand for workers increased, so did wages. this meant people had more money to spend with stimulated new industries
- many invested in bonds- the lent money to the gov by buying war bonds which would be payed back with interest at the end of the war- Americans contributed $129 billion to war effort by buying bonds- this gave gov money to spend on wartime production which boosted the economy
social developments during the war
- there were very few shortages in the shops for basic goods
- gov expenditure rocketed for $20 billions in 1941 to $97.2 billion in 1944.- taxes were increased as a result, people were encouraged to help in war bounds and the national debt rose to 6 times what it had been in 1941
African American during the war
- 1 million joined the armed forces - they were stationed with whites in Britain and were able to go to pubs and restaurants with white people
- 1944- 2 million blacks working in factories to produce war materials many migrated from the south to the north
membership of the NAACP rose after the war from 50,000 to 500,000 - many blacks were expecting social change after experiencing no segregation in Britain - however one aircraft maker employed 10 blacks out of a workforce of 30,000
women during the war
- women took mens jobs
- 1 in 3 aircraft workers were women
- in a gov survey 60% of American plant managers said - women were their best workers
- many were earning higher wages
- 200,000 joined women section of armed forces
- the percentage of married women working went for 35% to 50% between 1941 and 1945
- any men still had prejudices against women and wanted life to return to normal after the war
- 1940- 1945 the number of women in work rose form 12 million to 19 million
- 1939- 36 women in shipbuilding, 1942- 200,000
unemployment during the war
1939- 9.5 million unemployed
1944- 670,000
1941- 4 million found jobs making planes and tanks
