Crisis of Identity 1920-45 Flashcards
What was unemployment in the 1920s and what happened to their wages?
Never exceeded 3.7%
inflation never higher than 1%
real wages of industrial workers rose by 14% 1914-1929
Which party was mainly in power in the 1920s and what did they aim to do?
Republicans - wanted to reduce federal activity and spending (laissez faire)
financiers believed if business was allowed to go unregulated it would thrive - gov intervention would stifle innovation and industrial progress
believed wealth could trickle down due to employment
What the successes and failures of Hardings presidency 1921-23
+ appointed many able men to government roles (Andrew Mellon and treasury secretary and Hoover as secretary of commerce)
+ elected to reduce gov spending which had risen 10 times between 1910-20. budget and acounting act 1921 required departments to present budgets for presidential approval - 1922 fell to $3.4 billion and Mellon reduced taxes
+ supported the Sheppard-Towner Maternity Aid Act which gave federal money to support infant and maternal health programmes
- African Americans
- unpopular
Successes and failures of Coolidge’s presidency, 1923-28
laissez faire
+ reduced taxes three times (worth $3.5bn to industrial companies
+1928 98% Americans paid no federal tax (popular)
+ ran at a profit $677mn 1925, $603 mn 1927
- encouraged business without gov interferance
- did very little with the US
- still very much divided
- organisations such as the Federal Trade Commission could not operate effectively
- existing laws over business practices such as price fixing often ignored
What were Hoover’s aims?
To continue prosperity
he claimed poverty had been defeated in the US in his inaugural speech
The Great Depression stats
unemployment 3.1% 1929 to 25% 1933
GDP fell from $108bn to $56.2
When was the Wall Street Crash?
1929
What was Hoover’s main emphasis when responding to the Wall Street Crash?
voluntarism and indirect aid through loans to industry and states
what was Hoover’s policy towards international trade during the depression?
Initially he wanted to protect US industry from competition
1930 Smoot-Hawley tariff - highest in history - 40% on industrial and agricultural imports - caused fall in international trade of $1.2bn by 1931. harmed industrialists and farmers
what did hoover do with war debts during the depression?
June 1931 US would postpone the collection of war debt for 18 months - designed to stimulate trade but tariffs to high and too poor
what did hoover do to help the unemployed
unemployment relief - secured $500,000 from Congress 1932 to help charities and relief agencies
set up the President’s Emergency Relief Committee to help co-ordinate efforts
What was the federal home loan bank act 1932?
intended to save mortgages by making credit easier to avoid evictions
federal loan banks set up to help loan associations provide mortgages
loans no more than 50% of value of property so inadequate to prevent reposession
what was the reconstruction finance corporation 1932?
RFC established to lend $2 bn to banks, railroads etc
critics said most of money went to largest institutions - 50% loans went to 7 largest banks
gov argued it made sense to help largest first as they employed the most but it did nothing for people who were desperate
what was the emergency relief and construction act 1932?
RFC authorised - lending of $1.5bn to states for public works schemes for employment
states had to be bankrupt and projects would have to generate enough to pay off the loans
some conservatives said this was too much others said ‘too little, too late’
evaluation of Hoover’s response?
+ done more than any other president to intervene
not enough
refused direct gov intervention even when a drought saw near starvation across huge areas (Congress only allocated $47mn to help which had to be repaid)
What did Roosevelt aim to do and how did he approach this?
1932
promised a ‘New Deal’ to restore faith in US economy through relief, recovery and reform
fiscal conservative
no specific plans laid out
fireside chats
What were the first 100 days?
more legislation that at any period in history
emergency legislation and alphabet agencies set up
What did roosevelt do with banking and finance?
reformed to make stronger - public confidence
Emergency Banking Relief Act (EBRA) gave Treasury authority to investigate banks threatened with collapse and ordered the RFC to buy up debts
Glass-Steagall Act - insured bank deposits against bank failure
stock exchange regulated by Securities exchange commission which oversaw market activities and prevented fraud
what emergency relief did roosevelt introduce?
Federal emergency relief administration (FERA) set up 1933
given $500mn divided equally among states
half given directly to states and other half kept back so $1 every $3 own funds
wanted to make emergency relief funds self-financing
what were the alphabet agencies?
16 created to deal with specific issues relating to recovery from Depression as well as relief
How did roosevelt help farmers?
problems such as overproduction were dealt with by the AAA (agricultural adjustment agency) which paid farmers to produce less - cause price rise
6 mn piglets slaughtered for price rise
successful as prices rose cotton 6.5 cents 1932 to 10 cents 1933
total farm income rose by 2bn in 2 years
how did roosevelt help industry?
National Industry recovery act (NIRA) set up the National Recovery Administration to facilitate industrial recovery
firms encouraged to agree to codes establishing working conditions and product standards
what did roosevelt do with public works?
NIRA created the Public Works administration funded by $3bn - pump-priming
hoped expenditure on public works would stimulate economy and create permanent jobs
many employees went back on relief when contracts ended - temporary relief
what were the civilian conservation corps?
young people needed to gain experience from work
formed to provide useful jobs in conservation
1935 500,000 recruits 3 bn trees planted
impacts of the first new deal?
huge political impact
+first time gov gave direct relief
+helped to restore confidence in the economy
- insufficient funding for scale of problem, but important ideas about role of federal gov
what was the second new deal and when was it introduced?
1935
more radical
favoured poorer classes
why did the second new deal happen?
needed to respond to demands of radical supporters
- congress demanded radical measures - wanted to introduce new legislation rather than what congress wanted
- more frustrated by wealthy and big business who opposed him despite his saviour of economy
- wanted to appeal to less advantaged ranks who he believed had been forgotten
but - still conservative
what was the emergency relief appropriation act, 1935?
biggest expenditure in history for relief 45.5bn for public works, set up
- works progress administration (WPA) which employed 20% workforce by 1940 on schemes (Fort Knox and Lincoln tunnel)
- national youth administration (NYA) to provide part-time jobs for students
what was the rural electrification act 1935?
provide electricity for rural areas where private companies did not want to
REA offered low interest loans to farmers to form co-operatives and buy electrivity
1941 35% farms had it, 773 systems built in 6 years
what was the revenue act 1935?
‘soak the rich’ act
increased taxes to pay for new deal reforms
maximum tax on high incomes 50 to 75%
raised little - only 1% population earned over $10,000 - principle objected to
what was the social security act 1935?
first measure of social security available to all who qualified - instituted old age and disability pensions
although meagre, set up future development
unemployment benefits $18 per week offered
- had to be self-financing - old age pensions paid into systems and amount they recieved based on how much they paid
- omissions including domestic and agricultural workers who earned too little to contribute
- healthcare insurance not provided due to opposition of American Medical Association
what was the Wagner (national labour relations) act 1937?
trade unions given legal rights such as collective bargaining and three man National Labour Relations Board to ensure fair deals between employers and employees
initiated in Congress
why was it hard to join a union in america in this period?
employers had hostility to unions and had adopted ‘yellow dog clauses’ to prevent employees joining them - National Recovery act outlawed these and set up a labour board to facilitate workers’ rights
-some ignored - Ford employed men to intimidate workers
why did the right oppose the new deal?
businessmen opposed measures now that capitalism had been saved - high taxes especially
Liberty Leaguers - formed 1934 to oppose new deal. believed free market unregulated would be best for economic recovery. 1936 125,000 members
fell away after 1936 election success
why did the left oppose the new deal?
issue of left joining together to form new party in 1936 election
1.’share our wealth’ - scheme designed to end poverty advocated by senator Huey Long
- all private fortunes over $3mn confiscated and redistributed
- gov should fund pensions an introduce minimum wage
- every family should be guaranteed an income of $2000-3000 per year
Feared to stand against roosevelt in 1936 election but was assassinated in 1935
2. Thunder on the left
radical - advocating for nationalisation of public utilities and using empty factories to provide jobs
Roosevelt vs supreme court
main task was to make sure legislation was constitutional or whether president had power to make the law
with the second new deal the court increasingly declared legislation unconstitutional
‘Black Monday’ 1935 several peices rejected including NIRA and AAA
what was the judiciary reform bill 1936?
raise number of judges to 15
replace existing judges with presidential appointees when they became over 70
wanted to appoint more who supported him but senate saw it as an attempt to gain control - defeated 70 to 20
defeated but huge victory in 36 election saw courts back off
what happened in the mid-term congressional elections of 1938?
roosevelt openly supported liberals - problems in establishing relations with the new congress
general economic trend 1920-45?
boom in 1920s before bust due to 1929 great depression
warning signs in 20s
how did overproduction contribute to depression?
boom dependent on continuous production which needed continuous demand
late 1920s demand was falling
more produced than could be sold
1929 survey - incomes of 80% so low they lived close to subsistence
how did the bull market contribute to the depression?
demand for shares increased - based on assumption share prices would continue to rise
many bought them on credit - 10% deposit and rest of weekly payments - ‘buying on the margin’
when boom collapsed valueless shares left behind and still had to pay original price of original investment
what happened when the wall street crash occured?
29th Oct 16mn shares sold as prices collapsed
nov $30bn lost
economic confidence destroyed = depression
also showed how vulnerable the economy was
banking weaknesses that contributed to the depression?
outmoded system
- Federal Reserve banks operated in own interests rather than nation
- national banks regulated by federal system but 30,000 small banks remained outside reserve system - some only issued their own currencies - completely unprotected against collapse
- favoured low interest rates bit made credit more easy and so debt grew
how did the weaknesses of the stock market contribute to the depression?
unregulated - unscrumpulous brokers could speculate and get involved in dealings to make prices rise and fall artificially
how did the weaknesses of the government contribute to the depression?
reluctance of gov to regulate economy left business interests free to become corrupt
how did the new deal help economic recovery?
limited
national total of personal income fell by $10bn between 1929-39
unemployment had fallen from 13mn 1933 to 9mn 1939 but still a huge figure
‘Roosevelt recession’ when funding withdrawn - suggests no real economic improvement
1937-38 unemployment rose by 3 mn and national income fell 13% per year
how did WWII help economic recovery?
aided recovery, masked new deal failures
1942 US had full employment but after there were labour shortages
during the war the US produced more war materials than all others combined
farm income grew 250% per year
was there social change in this period?
greater liberation for women, music etc but most remained conservative
how did the jazz age influence society?
rooted in black American musical traditions
louis armstrong made it more famous promting dance crazes such as charleston
nightclubs attracted young people (flappers)
radio and records
older people thought it encouraged immorality
did the position of women improve in this period?
on surface there were more opportunities in work and social life
few women had managerial positions and focus still on marriage and children
media - ‘flappers’ played into stereotype
how did the position of women change in politics?
limited
19th amendment 1920 gave right to vote, little real impact
few women in politics - 145 in all state legislatures 1928 and 2/435 delegates in House of Reps, no senators
how did the position of women change in employment?
some success in film/fashion but limited
typists and clerks but few managerial positions or if they did it forced family and child sacrifice
how did women’s rights change in this period?
increasingly concerned over birth control and healthcare (American Birth Control League) but found gov and conservative voices unsympathetic
1921 Sheppard-Towner Act - aid for pregnant mothers (enforced role as child-bearers)
what was prohibition and who supported it?
1919 eighteenth amendment banned the sale, transportation and manufacture of intoxicating liquor in the US to end the consumption of alcohol
mainly supported in rural areas and conservative/religious groups
generally a failure - ended 1933
why did prohibition occur?
- women’s groups argued alcohol consumption caused oppression
- big business owners claimed being drunk caused dangers and inefficiency in the workplace
- religious groups thought it caused immoral behaviour
- breweries owned by german-americans - unpatriotic to be drinking their product while US was at war
why did prohibition fail?
- impossible to police 18,700 miles of US coastline - alcohol could easily be smuggled in
- bootleggers manufactured and distributed it illegally
- alcohol for industrial purposes was legal so it was easily diverted
- treasury agents charged with the enforcement of prohibition were poorly paid and resourced - corrupt
less than 5% of illegal alcohol was intercepted
$2bn per year profits for illegal industry
gov suffered from loss of tax
what was the effects of the depression on workers, farmers and families?
huge human cost
no infrastructure for mass unemployment - no federal aid and charities could not cope
previously thought unemployed were to blame but despite showing this was not the case there was little help
before 1932 no state had a system of unemployment insurance and only 11 had a pension scheme
workers - sold possessions and rely on overwhelmed charities, many became hobos 1932 1 million itinerant workers without regular jobs
families - fall in marriages from 1.23mn 1929 to 980,000 1932, constant birth rate fall, suicide rates increased from 14/10,000 to 17.4/10,000, majority of elderly under poverty line
impact of the second world war on migration to urban and rural areas
27mn Americans moved during the war
population in rural areas fell by 29%
most moved to areas with defence plants (California 72% increase)
huge housing shortages - barrack-style housing created for 1.5mn people
1943 severe race riots (partly over housing) which left 34 dead
impact of the second world war on the role and status of women
- huge problems juggling childcare and working hours
- shortage of housing in urban areas - overcrowding
- shortages of materials, grew own produce in ‘victory gardens’, joined the women’s land army to replace male agricultural workers and learned to manage without luxuries
- to accommodate growing numbers of women in work the Community Facilities Act 1941 provided childcare facilities for women in defence plants - demand exceeded supply
- 1941-44 10% increase in women in manufacturing workforce
how did the second world war cause dislocation?
15mn serving in military (many overseas)
- led to growth of divorce rate and youth crime
- population increased through ‘furlough babies’
what were the divisions between countryside and city areas at this time?
1920 majority living in urban areas (first time), still clung to conservative values - hard work, thrift, moral values driven by religion, saw large cities as immoral (nightclubs, drinking etc)
- cities seen as centres of crime
- cities seen as centres of revolutionary ideas such as communism
widespread rural support for republican politics in 1920s - wanted to turn back time
tensions exaggerated
what were the divisions between the north, west and south 1920-45?
north seen as big business and political centre
- differences in wealth real, 1929 income per capita north $921, south $365
- new industries such as the car industry drawn to north because of good communications, large workforce
- development of synthetic fibres and reductions in amount of material needed in changing female fashions reduced need for southern cotton
what was the position of African Americans at this time?
continued to face discrimination
threat of resurgence of the KKK in 1920s
- re-emerged as potent force in south and west, 100,000 followers 1921
what were the beliefs and methods of the KKK?
wanted white supremacy and attacked AAs, Jews, Catholics and any un-american seeming people
opposed ‘foreign’ influences e.g. jazz
rallies and marches as well as practices of brutality
what was the influence of the KKK?
during peak the clan could control politicians and police, 1924 alleged to have helped elect governors in states - little influence in bigger cities
national profile - parades - 50,000 Washington march 1926, 4 million members 1924
lost support when rape and scandals by clan leader Stephenson - 1929 membership fallen to 20,000
impact of the KKK on AAs?
terrorised many populations and caused migration north
encouraged sympathisers to join separatist organisations such as Garvey’s Universal N***o Improvement Society - black people should return to Africa
what was the US’s general stance on FP?
isolationist after WWI and tried to remain seperate from WWII but was too influential and powerful to do so
was the US isolationist in the 1920s?
participated in treaties and international agreements to defend its interests
world’s largest trading nation and owed over $12bn in war debts
could not be isolationist but it did not join peace treaties after war or LofN
what disarmament agreements did the US join in 1920-45?
Washington Disarmament conference 1921-22 which reduced power of navies and signed Kellogg-Briand pact (1928) renouncing war as a means of settling agreements
- neither agreement had sanctions attached
what was the good neighbour policy?
attitude in Latin America
- withdrew troops from DR and Nicaragua in 1924 and encouraged trade
- 1929 volume of trade exceeded $3.2bn
- policy recognised US economic might but seemed less confrontational
FDR and the ending of isolationism, how did he change attitudes?
feared rise of European dictators
mood of strict neutrality
neutrality acts 1935-36 in which arms sales to belligerent nations were banned - 4th banned US civilian travel on belligerent ships
all goods sold on cash and carry basis
what escalated the ending of isolationism in the 1930s?
- full scale Japan/China war
- Germany pursued expansionist policy
when did rearmament begin and what happened?
Dec 1938
Jan 1939 congress gave $500mn for military spending and by 41 grown 4 times
restored prosperity to US
why did the US become involved in WWII?
by 1941 non-involvement was becoming increasingly difficult
- most Americans wanted the Allies to win and wanted to keep them supplied. ‘arsenal of democracy by ‘loaning’ material to Britain over a ‘lend-lease’ agreement
- 1941 unrestricted submarine warfare in the Atlantic saw US boats attacked by u-boats
- US boycotting crucial supplies to Japan (oil), increasingly dependent on capturing Dutch East Indies where there were lots of supplies - involved destroying US fleet in pacific to prevent US attack
- Pearl Harbour Dec 1941 US declared war, germany and its allies declared war on US
