USA 1918-41 Flashcards
Roaring Twenties - Key features of leisure industry in 1920s
Sport
1920s Golden Age of Sport. Boom spectator sports. College football popular
Roaring Twenties - Key features of leisure industry in 1920s
Cinema - Talkies
- Hollywood developing. Film companies established
- 17,000 cinemas by 1926
- In 1927 60 million Americans went to the cinema each week. By 1929 rose to 110 million per week
Roaring Twenties - Key features of leisure industry in 1920s
Radio
Radio boomed.
40% of US homes had radios by 1930.
NBC and CBS formed in the 1920s.
Radios had cultural impact, airing news, sports, plays, and soap operas sponsored by soap manufacturers.
Roaring Twenties - Key features of leisure industry in 1920s
Music (jazz)
Jazz & blues (black music) came to cities
By 1920s popular with middle class whites and associated with the flapper
Symbol of new way of living.
New night clubs established like the Cotton Club in Harlem - Duke Ellington & Louis Armstrong
Roaring Twenties - Key features of leisure industry in 1920s
Dance crazes - Charleston, Black Bottom
Visiting clubs and dancehalls v popular in 1920s
Slow formal dances replaced by Charleston. Openly sexual element to dances. Condemned by religious leaders
Dance marathons popular
Roaring Twenties - Key features of leisure industry in 1920s
Shopping
New ways to spend money. Department stores and chain stores opened.
Chain stores grew from 29,000 in 1918 to 160,000 in 1929
Mail order catalogues offered shopping opportunities to those who lived far from a big city
Causes of leisure boom
Advertising & Credit
1918 US firms spending $58.5million on advertising
By 1929 it was $200 million and employed 600,000 people
Ordinary Americans able to buy cars and luxury goods on credit (down payment then 1-5 years of monthly payments).
Buying consumer durables gave more time for leisure
Causes of leisure boom
Higher wages/steady employment
1921-1924 wages rose by 22%
More leisure time - working week was 3 hours shorter from the start of the 20s to the end
Employment was high
People had money to spend
Causes of leisure boom
The car
Cars made other features of 1920s possible
Entertainment, cinema, sport and shopping facilities
New roads built
Travelling salesman selling vacuum cleaners to underwear
Causes of leisure boom
Consumerism
Government encourages consumerist attitude - people felt they had to have the luxury goods like vacuum cleaner. They became an essential rather than luxury
Consumerism meant ordinary people felt entitled to purchase new products and spending money was leisure activity
Causes of leisure boom
Labour saving devices
Access to electricity in 1920s meant Americans could run all sorts of labour saving devices - fridges, washers, dryers, irons, toasters etc
Meant people, especially women, had more leisure time
What aspects of Jazz Age might upset people in rural & Bible Belt areas?
Sexual morality
- Rural and conservative areas felt urban values were eroding tradition.
- Cars enabled youth independence and premarital sex rose from 74% in 1900 to 31% in 1920.
- Movies exploited sex for sales, prompting 36 states to consider censorship.
What aspects of Jazz Age might upset people in rural & Bible Belt areas?
Betting
Sport industry encouraged betting
1919 baseball scandal - Chicago White Sox accused of throwing World Series for money
What aspects of Jazz Age might upset people in rural & Bible Belt areas?
Race issues
Jazz associated with black people, though rarely allowed into new venue unless as performers or workers
Plenty of racial prejudice
Some southern radio stations refused to play jazz
Music of speakeasies. Alcohol banned in 1919 but in clubs that sold illegal booze, jazz was often the entertainment
Women
Life of pre-war women
Makeup frowned upon
Chaperones when met men
Could not take part in sport or smoke or drink in public
In most states could not vote, participate in politics
Some could work, eg teacher. Expected to stop work when they married.
Divorce v rare
Women
Causes of women’s lives changing after 1917
War was key
Women joined war industries, doing male jobs
Access to money and freer social life
Given vote in all states - 19th Amendment of 1920
Consumer boom. Labour saving devices. More leisure time and cars meant more travel
Causes of women’s lives changing after 1917
Political
Positive
Women had right to vote in certain states - Wyoming 1869 but not national vote
National Women’s Party - Alice Paul - began to campaign aggressively for the vote
In 1919 given vote under 19th Amendment. Became law in 1920
Causes of women’s lives changing after 1917
Political
Negative
Little access to political power, despite having vote because parties thought them unelectable
1928 League of Women Voters proclaimed 145 women had won seats in 35 state legislatures and 2 were governors. These were exceptions
Causes of women’s lives changing after 1917
Economic
Positive
Urban areas women took on jobs in new industries
24% rise in women working from 1920-29
Many worked in new radio industry
Advertisers recognised purchasing power of women
Causes of women’s lives changing after 1917
Economic
Negative
- Women in traditional roles, earning less than men in clerical and domestic jobs.
- The National Women’s Party’s Equal Rights Amendment rejected in 1923.
Causes of women’s lives changing after 1917
Social
Positive
Domestic work done by new electrical goods
Could wear makeup
Films and novels exposed women to new role models
The divorce rate rose. Marriage still v popular but had fewer children
The cosmetic industry was the fastest growing in the 1920s. $17m a year in 1919 to $200m in 1929
Causes of women’s lives changing after 1917
Social
Negative
Negative
Traditional religious and country values meant the sexual revolution didn’t really spread
Most women opted for traditional roles and rising immigrant population restricted roles of women
Causes of women’s lives changing after 1917
Flappers
Positive
Positive
Some younger women became flappers
More glamorous lifestyle. Short hair, daring clothes, make up, smoked and drank in public and liberated behaviour
Associated with jazz and attending sporting events
Not prepared to fulfill traditional roles of wife and mother
Symbols - Joan Crawford
Causes of women’s lives changing after 1917
Flappers
Negative
Negative
Some felt flappers didn’t advance cause of women in 1920s.
Flouted law, were arrested and only pleasure seeking
Fears women would model themselves on flappers rather than on their mothers
Causes of Prohibition
Progressivism - background cause
Prohibition main policy of progressive movement that developed before 1914
Middle class supporters in small towns and rural America worried about crime and immorality in new cities and blamed on alcohol
Disliked recent immigration. Claimed immigrants prone to drink
Prob not main clause. Was an old movement and hadn’t come close to banning alcohol before WW1
Causes of Prohibition
Temperance movement
- Prominent groups: Anti-Saloon League of 1893 and Women’s Christian Temperance Union
- 27 states had passed such laws by 1917.
- The temperance movement believed that alcohol was responsible for ruining family life, promoting corruption and immorality, causing sexual immorality, and perpetuating poverty.
Causes of Prohibition
Businessmen
Big business saw drunkenness as leading to inefficiency and industrial accidents
Important and influential people who supported temperance movement
However far more business people were against the idea because of loss of trade
Causes of Prohibition
WW1
War led to national prohibition campaigns. Alcohol seen as unpatriotic. German brewers made big profits. Beer called Kaiser’s brew, easy to ban in 1918. Drink portrayed as cause of German aggression. Alcohol led soldiers astray. Lever Act banned grain use in alcohol in 1917. 18th Amendment banned sale, transport, manufacture of alcohol in US in 1919. National prohibition started Jan 1920.
Key features of Prohibition
Social impact - Soft drinks
Soft drinks industry developed in 19th century
1905 Coca Cola marked as Grand National Temperance Drink
Output increased 17.4 m cases in 1880s to 113m by 1920
Key features of Prohibition
Social impact - language
Speakeasy - illegal bars run by gangsters. Drinks sold were dangerous, made from industrial alcohol, led to blindness and sometimes death
Rum runner - someone who illegally transports alcohol over a border
Moonshine - home-made whisky
Bootlegging - someone who made illegal alcohol.
Key features of Prohibition
Social impact - health
Deaths from alcoholism fell by 80% in 1921
Poisoning from wood alcohol occurred
Overall 50,000 people died from alcohol poisioning by 1926
No quality control.
Key features of Prohibition
Unemployment & economic effects
Brewing industry affected. Some diversified into soft drinks
Farmers lost out - grain or hops not being used
Bars and hotels had to cut staff as people going out less
Grape growing industry forced closure of most of the wineries
Hit gov taxation. Losses were $11billion by 1931
Discriminated against poor. Saloons shut but speakeasies serving wealth stayed open
Key features of Prohibition
Growth of organised crime
Gangsters controlled alcohol, speakeasies, and expanded into illegal activities. Immigrants dominated the criminal gangs, with Italian, Irish, and Jewish involvement. Increased profits led to violence. Chicago, with its proximity to Canada and good transportation networks, became a major smuggling center. Torrio and later Capone ran the business in Chicago, with Capone earning a staggering $105 million annually. Gangsters gained popularity as American heroes, with Capone symbolizing enterprise and even running charities during the Great Depression.
Key features of Prohibition
Evasion of law
**Lack of funding **- John Kramer first Prohibition Commissioner
Appointed 1,500 federal agents to destroy liquor supplies and arrest anyone breaking the law
Some agents were effective but most didn’t have enough staff or money . By 1926 Kramer spending $10million and still wasn’t enough
Bribery & corruption - enforcement agents poorly paid and so bribes often worked. 1 in 12 officers sacked for taking bribes. One gang has 400 police on payroll
Key features of Prohibition
Bootleggers
Bootleggers organised into gangs to transport and distribute goods.
George Remus - King of Bootleggers made $5million
Easy to find alcohols
Chemists could sell on prescription
Thousands of illegal stills
Speakeasies grew
Causes of difficulty to enforce Prohibition
Unpopularity
Never popular measure
Grand juries never send to trial because they too were breaking the law
Prisons couldn’t cope
Never supported in all States, esp urban ones. Maryland never introduced it
President Harding had alcohol delivered to White House
Causes of difficulty to enforce Prohibition
Bootleggers and continued availability of alcohol
Bootleggers organised into gangs to transport and distribute goods.
George Remus - King of Bootleggers made $5million
Easy to find alcohols
Chemists could sell on prescription
Thousands of illegal stills
Speakeasies grew
Causes of difficulty to enforce Prohibition
Organised crime
Gangsters moved in to control smuggling alcohol and speakeasies
Criminal gangs deveoped to run illegal smuggling
Almost exclusively immigrant origin.Chicago - Italian & Irish. NY - half were Jewish
Increased profits - branched out into illegal gambling, brothels and drugs
Chicago centre of smuggling trade as close to Canadian border and had good road & rail networks
John Torrio ran most of the business in Chicago. Retired in 1925 with savings of $30million. Capone took over from him. Became more famous. Earned $105 million per year
Violence - as gangs began to compete murders and violence erupted
Valentine’s Day Massacre - 1929 Capone’s gang v Bugsy Malon
Popularity of criminals - Americans took gangsters to their hearts and made heroes of them. Capone became celebrity and symbol of free competition and enterprise. Ran charities and soup kitchens in the depression.
Causes of difficulty to enforce Prohibition
Enforcement agents & bribery
**Lack of funding **- John Kramer first Prohibition Commissioner
Appointed 1,500 federal agents to destroy liquor supplies and arrest anyone breaking the law
Some agents were effective but most didn’t have enough staff or money . By 1926 Kramer spending $10million and still wasn’t enough
Bribery & corruption - enforcement agents poorly paid and so bribes often worked. 1 in 12 officers sacked for taking bribes. One gang has 400 police on payroll
Causes of difficulty to enforce Prohibition
Geography & size
1000s miles of border made smuggling easy
1925 officers guessed they only intercepted 5% of alcohol coming in illegally
Waters outside national limit known as Rum Row
Almost impossible to enforce because so many people willing to break the law to drink alcohol
Causes of ending of Prohibition
Legal - Anti-social behaviour
Law breaking - social effects of prohibition worse than social ill-effects of drinking
Lawlessness had increased, respect for law lessened
Capone made into heroes. Gangland murders out of control. Between 1927 & 1931 227 gangland murders for which no one was convicted
Never full compliance and took 13 years to repeal the law
Causes of ending of Prohibition
Social - Ill Health
Some died or poisoned by illegal moonshine.
Health dangers of legal alcohol were less serious as could regulate manufacture
Causes of ending of Prohibition
Anti-prohibition campaign
Americans turned against idea. Parades and demonstrations
Powerful voices and arguments to repeal law
American Federation of Labour organised ‘no beer no work’ - working man entitled to beer after work
Reform had 1m members by 1932. Used same methods prohibition movement had used - leaflets, backing wet candidates, books etc and blamed society ills on being dry
Causes of ending of Prohibition
Depression and economy
Du Ponts argued prohibition lead to tax rises. Claimed alcohol tax could pay off National Debt in 15 years.
1920s period of reduced intervention by Republicans. After Wall Street Crash and depression, argued money could be spent on job creation and poor
Causes of ending of Prohibition
Politics
Some states had already repealed laws on prohibition
By 1932 Roosevelt found repeal was popular campaign issue. Managed to unite Democrat party on this issue
Causes of ending of Prohibition
Division in Prohibition movement
Dry lobby divided. Some wanted stricter enforcement whereas others wanted education programme to deter drinking
This division made it easier to repeal
Intolerance in 1920s - Race Issues
Key Features in Southern States - Segregation
Separate facilities for blacks and whites
After 1865 Southern states introduced laws against black people
Jim Crow laws -named after comedian who made racist jokes in 19th century
Plessy V Ferguson court decision said laws were constitutional as long as black and white facilities were equal
After WW! laws extended to include taxis, race tracks, boxing matches etc as fears of running into black soldiers increased. Even separate blood banks
Intolerance in 1920s - Race Issues
Key Features in Southern States - poverty and inequality
33% of black people on relief in South and 52% in North by 1932
Rural nature meant poorly paid
Majority of black farmers were sharecroppers. Lived in perpetual debt and lived in dire poverty
Intolerance in 1920s - Race Issues
Key Features in Southern States - lynching
Mob takes law into own hands to injure and kill a person accused of wrongdoing
Black people could be lynched for minor crimes or just for ignoring customs of south. By 1920s mobs used sadistic tactics - burning, torture, dismemberment, created festival atmosphere, sold tickets
1882-1968 3,446 lynchings of black people. Many not reported
Intolerance in 1920s - Race Issues
Key Features in Southern States - Ku Klux Klan
Post-WWI concerns over armed black veterans. KKK flourished in cities like Memphis and Atlanta. “Birth of a Nation” fueled white supremacy and fear. Labor tensions banned Jews, blacks, and immigrants. KKK reached 5 million members by 1923, using violence, intimidation, and political protest. Southern states opposed federal intervention. Immigration restrictions weakened KKK. Infamous kidnapping and rape case involved prominent KKK figures.
Key Features of Life in the North for Black Americans
Migration
One way to get out was migration to the North - 824,000 in the 1920s
This is because blacks could earn a better wage and segregation didn’t take place
In 1910 only 10% of blacks lived in the North and in 1940 that was 22%
With no Jim Crow in the North Blacks could assert their rights more.
Key Features of Life in the North for Black Americans
Ghettos
Just as there was no Jim Crow in the North didn’t mean there wasn’t any racism - migration led to the creation of ghettos these were black neighbourhoods where housing and other facilities were poor and overcrowding was rife.
July 1919 Race Riots in 20 cities and 1000s turned out of their homes
Key Features of Life in the North for Black Americans
Cultural Renaissance
A revival of interest in black culture and black pride
Black theatre
The rise of books, poems and magazines that put forward a black viewpoint
Black Political Movements
Ideas and methods of the UNIA
Led by Marcus Garvey
Wanted to encourage black pride and unity of blacks (black nationalism)
Had a back-to-Africa repatriation campaign. Asked the League of Nations to give over former colonies to make a new African Republic.
Garvey used rallies and sound bites to publicise his cause. He elected himself President-General of the UNIA.
Black Political Movements
Impact of the UNIA
By the mid-1920s, there were UNIA grocery stores, restaurants etc.
Black Star Line was a ship that would take black people back to Africa but it went broke and Garvey was deported for fraud.
Black Political Movements
Ideas and Methods of the NAACP
Led by WE Du Bois
Make Blacks aware of their civil rights and also an Anti-Lynching campaign
It focussed on legal strategies designed to confront civil rights issues.
Managed to limit the number of lynching
In 1935 tried to get Roosevelt’s help in getting an anti-lynching law
Black Political Movements
Impact of the NAACP
Successfully fought the grandfather clause (said that you could only vote if your grandfather had. Due to literacy tests etc blacks could never vote)
They won in the supreme court and it said that the grandfather clauses were null and void due to the 15th amendment
Membership rose to 1m by 1921
Emerging Black Middle Class/Economic Changes
In Chicago and New York, there was an emerging black middle class and a black capitalist movement to encourage them to set up businesses.
There was still poverty and low wages but life expectancy for blacks did rise from 45-48 from 1900-1930 (it rose for whites more)
Causes of the Fear of Immigration Post WWI
Social Reasons
WASPs feared non-white immigrants and those coming from Eastern Europe. Disliked Catholics and Jews. They felt they were being swamped and this caused some states to sterilise people from certain ethnic groups
Nativism valued those born only in the USA
WASP - White Anglo-Saxon Protestant
Causes of the Fear of Immigration Post WWI
Economic Reasons
New immigrants would accept lower wages and this caused more established immigrants to be worried.
After the war, munitions factories closed - led to unemployment and soldiers returning from the war wanted jobs
They believed that they were either being deprived of work or forced to accept low wages because of cheap immigrant and black labour
Causes of the Fear of Immigration Post WWI
Political Reasons
A fear that the new immigrants may bring anarchism or communism into the USA. New immigrants were blamed for problems such as trade unions and bombings.
The Republicans did very well out of immigration policies
The Impact of the Fear of New Immigrants
New Laws to Restrict Entry
- 1921 Emergany Immigration Act - immigration limited to 357,000 per year and quotas were set based on the 1910 census so that 3% of the number from that country could enter each year
- 1924 National Origins Act - Now only 150,000 pa and quotas changed to 2% from the 1890 census
- 1929 - Max of 150,000 pa and none from Japan or China
The Impact of the Fear of New Immigrants
Further Impact
Increased hatred of Eastern European, Asian immigrants and blacks. This led to violent racial incidents.
Laws passed to force the sterilisation of certain ethnic groups in some states
Causes of Palmer Raids
Anarchists
Espionage (1917) & Sedition Acts (1918) silenced open criticism or opposition to government
Strong opposition to WW1 from some immigrant groups, esp Italian-Americans. Arouses suspicion as already involved in organising strikes and demands for higher wagers
Published own newspapers highly critical of government
Unrest labelled anarchist or communist and seen as subversive
Causes of Palmer Raids
Communism
After WW1 saw birth of international communism after Bolshevik Revolution in 1917
Many western democractic states worried by the spread of communism, strongest in US
USSR set up Comintern to promote world revolution
Early 1920s American Communist Movement established, many members were foreign born
Causes of Palmer Raids
Bomb outrages
Some anarchists resorted to terrorism
1919 40 nail bombs sent to policitians and industrialists. 8 cities faced bomb attacks. Home of Attorney General (Alexander Mitchell-Palmer) destroyed and he narrowly escaped death
1920 bomb on Wall Street killed 38
Felt anarchists threatened nation’s security
Causes of Palmer Raids
Strikes
Large strikes in 1920s
Convinced government adn employers that new trade unions were dangerous.
Strike leaders seen as socialists. William Foster, leader of Boston steel workers, thought to be a communist.
Unions seen as foreign and socialist, blamed by influx of European immigrants
1919 4 million workers went on; strike 20% of workforce; overall 3,600 strikes
Feb 1919 5 day general strike in Seattle - railways, coal, textile and steel workers involving 400,000 workers
1919&1920 coal miner’s strike in W Virginia only ended when Governor used state troops to smash it
Worst disputes in textile industry. In 1927 girls working 56 hour week were paid 18c an hour
Impact of Palmer Raids
Impact on civil liberties
In Aug 1919, Mitchell-Palmer formed Intelligence Division to probe revolutionary actions led by Hoover. Spied on Reds, raided locations, amassed 200k cards on radicals, resulting in many arrests, deportations. Unlawful arrests, poor conditions, syndicalism made illegal in 32 states.
Impact of Palmer Raids
Longer term impact
New Year’s Day 1920 men & women rounded up for allegedly subversive activities in raids on 33 cities
Many recent immigrants and innocent. Had to be released due to lack of evidence
Newspapers and Supreme Court Justice criticized anti-sedition bills
Industry leaders realised that deporting immigrants was a drain on labour source, resulting in higher wages and decreased profits
Causes of Scopes Trial
Fears of South & Bible Belt
Many fearful of changes taking place - cars, flappers, immigrants, black political movement
Felt urban changes were harmful to their way of life
Scopes Trial must be seen in context issues like red scare, banning alcohol, banning immigration
Causes of Scopes Trial
Religious revival
High church attendance. Evangelicals like Billy Sunday used meetings, radio, rallies. McPherson built mega-church in LA. Scopes Trial against modern values. Fundamentalists supported prohibition, opposed Smith for being Catholic, from NY.
Causes of Scopes Trial
Banning of Darwin
Freedom of religion is guaranteed by First Amendment of 1791 but forbids any official or established religion
Many urban people believed in Darwins theory of evolution and retained their belief in God. Reinterpreting Bible stories in light of modern discoveries
Many rural Americans disagreed and believed in Fundamentalist theories - everything in Bible is literally true
Fundamentalists set up Anti-Evolution League - 6 states made illegal to be taught in schools.
Tennesse passed Butler Act 1925 banning teaching of Darwin in state schools. Joined by 5 other states.
Causes of Scopes Trial
Testing the law
Biology teacher John Scopes deliberately broke law in Dayton, Tennessee so he could be arrested and put the case in the courts
He was supported by American Civil Liberties Union who put an ad in newspaper looking for someone to test the law.
Causes of Scopes Trial
The trial
Scopes convicted and fined $100 but Fundamentalism was on trial
Defence attourney Clarence Darrow
Prosecutors led by William Jennings Bryan who had run for President 3 times. Supported by World Christian Fundamentalist Association who promoted traditional values
Trial first to be heard on radio. Newspaper reported throughout trial
Dramatic legal battle.
Darrow asked for Bryan to go on stand so could question his beliefs. Made to admit that he didn’t believe every word of Bible as literal truth
Anti-evolution lobby never recovered after the trial
Bryan died suddenly after trials
Darrow cleverly focused the trial on ideas rather than action of Scopes. However Judge rejected this and Scopes found guilty and fined
Tennesse Supreme Court overturned verdict a year later. Law never used again
Causes of Economic Boom of 1920s
Natural Advantages
US rich country with many resources, large population
1920 census 106.4 million people, compared with 42 million in Britain
US population rose by 16% in 1920s. Large market for cheap goods
Large immigration - cheap and plentiful workforce
Natural resources like coal, cotton, wood, metals
New railways, roads and good communications
Agriculture more efficent in world, even overproduction
Largely self-sufficient and huge internal market that could fuel its own industrial expansion.
Highly entrepreneurial
Causes of Economic Boom of 1920s
American Dream
US philosophy geared towards doing well economically as people keen to make money and become entrepreneurs
Inventions like light bulb, sewing machine, telephone, Bakelite
Work ethic of rugged individualism. Gov not intervene and allow people to make their own wealth
Encouragement of thrift and savings fuelled investment. Self made millionaires - Rockefeller and Carnegie
Causes of Economic Boom of 1920s
Impact of WW1
War a great stimulus to growth. Helped train workforce and high unemployment gave them high purchasing power with high wages.
During War US provided goods to Britain and France. Factory production increased by 35%
Largest growth was steel industry. 1910 26.1 million tons. 1922 42 million tons
New industries - air travel, radios, electricity, chemicals, vehicles, fertilisers, plastic. Overtook Germany
Exported new products - cigarette brands v popular in Europe
Produced 70% of world’s petrol
Gave out large loans to help countries fight war effort. Received interest on loans
Unskilled workers’ wages rose by 20%
Employment of women made more cash to spend
Causes of Economic Boom of 1920s
Laissez faire economics and Republican policies
Laissez faire policies let businesses get on. Gov took active role in economics during war but backed off in peacetime
1920s governments were Republican. Believed in laissez faire economics
Andrew Mellon, Treasure Security, second richest man in US, supported big business with low taxes, high tarrifs
Nov 1921 Revenue Act - changed taxes, charged businesses more but cut wartime tax on high levels of profit
Revenue Act 1925 changed taxes, cut individual tax and wartime tax but increased business tax from 1922
Businesses benefitted from state and congressional support against formation of trade unions
Yellow dog contracts enforced no strike agreements. Meant wages couldn’t rise too high. Trade union membership fell 1.5m 1920-1929
Causes of Economic Boom of 1920s
Tariffs and post war isolationism
Encouraged further consumer spending & conditions for business growth
Isolationism meant a high tariff policy that encouraged people to buy US goods
Fordney-McCumber 1922 raised tariffs and extended them to industrial goods. Gave President the power to raise them annually in line with selling price of these goods in the US
Causes of Economic Boom of 1920s
Mass production & scientific management
New management & production techniques led to cheap goods.
Affected other industries
Mass production
Took off in 1920s. Assembly lines. Model T was produced every 10 seconds by 1926. River Rouge Plant, Detroit employed 75,000 people & produced 1 million cars per year
New management techniques
Production costs kept down. Management focussed on productivity of workers. Management was crucial. Harvard Business School created. Time and motion studies to more production even more competitive
Causes of Economic Boom of 1920s
New industries
New industries
Electricity v important. Enabled new cheap goods
1920s second industrial revolution. Most of it was electricity generated
1914 30% of factories powered by electricity. 1929 this was 70%
Construction industry took off
Consumer durables created . 5,000 fridges in 1921, 1 million in 1930
Causes of Economic Boom of 1920s
Advertising
Selling techniques helped create huge demand for new goods.
1929 $2billion spent on advertising.
600,000 employed in advertising
Companies tried to sell new products and change habits.
Causes of Economic Boom of 1920s
Credit
1919 Alfred Sloan set up credit agency for ordinary consumers. Pay for products by installments
Hire purchase. 75% of cars and 50% household goods bought this way
1920-29 consumer credit grew from $32billon to £60 billion
Being in debt no longer shameful
Causes of Economic Boom of 1920s
Consumerism
Consumerist attitude - people felt they had to have new goods, an essential not luxury
Spending money became leisure activity
Women a big target - cosmetics, perfumes etc
Causes of Economic Boom of 1920s
Leisure opportunities
Sport - baseball, American football
Air travel - 500,000 people travelled by air per year
Cinema - Hollywood. 1920 talkies began. 1922 cinemas taking $14million a week, by 1930 $80million
Department stores - customers helped themselves to goods and pay at checkout.
Causes of Economic Boom of 1920s
Share buying increases
1.5m ordinary Americans bought shares
People found it easy to borrow ‘on the margin’ - borrow from bank or broker and pay it back when share price rose
Bank rates low so little encouragement to save
In bull market prices always seem to rise and plenty of confidence that it would always do so.
Causes of Economic Boom of 1920s
Car industry
Assembly line
Speeded up mass production so car prices fell
Ford pioneered hire purchase for car buying
By 1915 over 28 million cars in US
Knock-on effect on other industries
New jobs for factory workers and mechanics to service cars
1929 over 4 million workers depended on car industry
Causes of farming problems after 1919
War debts
$2billion in mortgages taken out post-war
Ford made Fordson tractor in 1917. Sold 750,000 in 10 yrs
Led to demand for combine harvester. Farmers built up debts to buy machinery
1923 Agricultural Credits Act gave farmers cheap loans and built up debts at a time of falling demand and overproduction
Causes of farming problems after 1919
Overproduction
Farmers producing 9% more by 1929 even though demand had falled
Farms were too efficient and too many of them
Overproduction was main problem, especially when European market dried up after WW1
Fall in demand and high tariffs meant farmers could not sell abroad.
Price of wheat fell $1.83 bushell in 1920 to $0.38 in 1929
Causes of farming problems after 1919
Fall in demand
New products like rayon hurt cotton farmers
Wool & cotton hit by changes in fashion. Shorter dresses and skirts needed less fabric
Prohibition hit wheat & hops farmers
European recovery meant didn’t need US exports which were expensive
Causes of farming problems after 1919
High tariffs
High tariffs hit exports. Overproduction couldn’t be sold abroad
Emergency Wheat Tariff 1921 on wool, sugar and wheat to give home producers an advantage
1922 Fordney McCumber tariff went further and put tariffs on 28 products but led to European retaliation that meant farmers found it harder to sell abroad
Causes of farming problems after 1919
Prices & incomes
All led to fall in prices that led to fall in income
Farm incomes fell $10billion in 1919 to $4billion in 1921
66% of farms in South Carolina were operating at loss. Had to cut wages or not raise them to keep up with factory worker wages
More than 3 million farmers earned less than $1000 per yr which was the minimum requirement of a family
Farm labourer income half that of coal miner and quarter of clerical worker
Causes of farming problems after 1919
Foreclosures & bankruptcy
600,000 farmers suffered bankruptcy in 1924
Foreclosures grew (farms were repossessed)
13m acres of land abandoned & not cultivate
Causes of farming problems after 1919
Unemployment
Many farmers found it unprofitable to harvest crops
Smaller farms lay off workers - 1million laid off. 6 million left for cities
Sharecroppers had worst time as so dependent on crop selling at a good price
Rural work force fell from 27% in 1920s to 21.2% of total labour force
Which industries in decline in 1920s?
Textiles
Post-war drop in demand. Rayon cheaper to produce than wool or cotton
Tariffs hid industry hard.
Dresses and skirts shorter so needed less fabric. 19m cloth for dress in 1913, 7m in 1928
Factory production needed fewer workers. More women employed as lower wages
Supreme Court said that banning child labour was unconstitutional
Textile factories moved south where labour was cheaper
Supreme Court banned laws on minimum wages for women
Most textile workers were not unionised so jobs not protected and wages were lower
Which industries in decline in 1920s?
Coal
Coal overtaken by oil & gas which could produce electricity much cheaper
Coal worker’s weekly wage was $30 below what was considered minimum wage
Which industries in decline in 1920s?
Rail
Faced competition from cars & lorries
Far slower growth than in past. 10% freight growth in 1920s
Impact of decline in 1920s
Economic
Wealth Gap
16 million families received less than $2000 per year
70million people (42% Americans) living below poverty line
Impact of decline in 1920s
Social
Unemployment
Between 1923 & 1929 over 200,000 miners lost jobs
In Muncie, Indiana 72% of working population were jobless at some stage in 1920s
Impact of decline in 1920s
Political
Strikes
As result of new technology was discontent and strikes
Strikes in 1929 led to police chief being killed after trying to break up mill strike
Medium term causes of the Wall Street Crash
Rising share prices drove up demand that drove up prices
Rising share prices inflated demand and prices. US stock exchange experienced a long bull market. Value of stocks increased significantly from 1925 to 1929.
1925 value stocks $27 billion. 1929 $87 billion
Medium term causes of the Wall Street Crash
More investors than ever before
1920 4 million share owners. In 1929 20 million.
Popularity of buying shares encouraged more companies to issue them to develop their businesses
Initially this pumped money into companies and the rising prices made large profits
Everyone wanted in to make a quick profit - FOMA
Medium term causes of the Wall Street Crash
Credit
Many shares bought on the margin - 10% deposit, rest on loan or HP from banks
People thought they were buying shares for a quick profit instead of keeping their money invested in the same business for some time. Speculation rather than investment
Federal Reserve Bank lowered interest rates in 1927 in time for a massive boom on the stock market fuelled by easy credit
Medium term causes of the Wall Street Crash
Behaviour of brokers & media
People were encouraged by books and media to invest. Part of American Dream
Some brokers operated illegal bull ring where they bought and sold to each other to talk the prices up and sold high to investors. Prices then fall and investors lose money
Short term causes of the Wall Street Crash
Mid 1929 -signs of trouble
Summer 1929 consumer boom running out. Unemployment rising, demand falling. Warehouses filing up
Prices of key things falling - coffee, sugar, copper, cotton. Had too much stock so prices fell rapidly
Car market and construction in decline
Banks found people not paying back loans
Share prices kept rising. Any falls were acted upon by buyers who thought they were temporary bargains that would soon recover
Short term causes of the Wall Street Crash
August 1929 Federal Reserve raised interest rates
Interest rates raised to 6% to try and cool market
More difficult to borrow and big investors saw trouble ahead
Smaller investors have to leave the market quickly if share prices fell as they had higher borrowing costs
Might choke off speculation because borrowing more expensive
Short term causes of the Wall Street Crash
Big investors start selling in Oct 1929
By October rumours of falling production and rising unemployment brought correction to market - make shares equal to business value
Big investors like Joe Kennedy were pulling out
Brokers who sold shares on the margin had borrowed from banks in first place.
Banks now demanding repayment.
To repay the brokers had to ask customers to repay their debts. Only way to do this was to sell their shares at any price
Short term causes of the Wall Street Crash
Oct 24th panic
People realised shares now worth less than what they paid for or the loans they had
24 Oct share prices started falling - Huge number of shares traded
29 Oct - 16 million shares sold and prices crashed.
By Nov 1929 shares had lost $26 billion in value,
Long term causes of Great Depression & Crash
Under consumption
Economic prosperity unevenly distributed. 1/3 of wealth to top 5%. Mellon’s tax policies favored rich. 80% had no savings. 71% earned less than $2500/year, lacking purchasing power. Failing industries, low-paid immigrants, farmers faced poverty. Unions weakened, Ford shut them down.
Long term causes of Great Depression & Crash
Over production
Car and construction industries in decline by 1920s due to underconsumption
Car sales fell 1/3 in 1929
Over production encouraged because many people bought on HP and could no longer keep up with payments
Tariffs meant could not sell abroad
Large companies put small companies out of business
Long-term Causes of the Crash and Depression
Falling Incomes for Farmers
The farming industry in crisis - Rural poverty and debt are rife
1/3 of US pop lived in rural areas and 66% of farms were making a loss
Intensive farming caused dust storms which made land useable. This didn’t cause the depression but it did make things worse once it did start
Short-term Causes for the Depression
Panic on Wall Street
People started to realise that the market was edging down meaning that their shares were worth less than what they paid for them.
By November 192 shares had lost $26 billion in value - now a 1/3 of what they were in September.
Short-term Causes for the Depression
Impact on Banks
- Brokers demanded payment from investors as both had made losses so brokers wanted payment
- Investors also had losses so they had to withdraw from banks in large sums.
- Banks had liquidity problems - they didn’t have enough cash on hand. So they turned to people who owed them money such as large companies.
Some banks crashed as these measures didn’t solve their problems. Also savers lost all their money as they had no deposit insurance
Short-term Causes for the Depression
Impact on Businesses
With little spare money banks called in on loans and stopped making new ones. This impacted consumers and businesses.
Affected businesses found they had to cut wages, limit investment or they began to go out of business because they were relying on loans
Causes of Why the Depression was Prolonged
The Continued Problems for the Banks
Banks lost money in the crash, causing distrust and mass withdrawals. In 1929 650 banks failed, leaving savers with nothing due to no deposit insurance. Surviving banks became cautious, refusing to lend, affecting businesses and individuals in need.
Causes of Why the Depression was Prolonged
Problems in Europe
The US gov blamed world events so they didn’t need to take responsibility or take action.
There were some issues such as countries trying to cut themselves off from the USA.
There were also WWI loans and some countries depended on thier US to keep paying these if the US pulled out they were left unable to pay. The US did call in its loans and the world economy contracted and so it rebounded back on the USA
Causes of Why the Depression was Prolonged
Government Policies
The US had no welfare or unemployment benefits due to the fear of creating a class of dependents. There was an emphasis on rugged individualism and hope that private charity would help the newly created poor and homeless however this was inadequate.
To help the poor the government encouraged people to give to charity. Many set up soup kitchens including Al Capone.
Short-term causes of the depression
Impact on Consumers
Some lost money on the stock market - not many though
Others lost due to the value of pensions and other investments fell due to share price falling
Some lost all their savings as the banks they saved with crashed
Others worked for companies that had financial problems which meant their wages were cut or made redundant
Long-term Causes of the Crash and Depression
Underlying Issues in the Banking System
There were 30,000 independent banks and each state had different rules for banks and there was no national system to help them out. Only 1/3 of banks were a part of the Federal Reserve so it was hard for the government to help them out.
Most banks were vulnerable to sudden and large withdrawals as they didn’t keep large reserves of cash. This was worsened by agricultural depression as a crop failure could lead to a run on the banks.
20% of banks already failed before 1929
The Impact of the Depression
Fall in Income
Farmers
Farm Prices had fallen so low that by 1933 the cost of transporting animals to market was higher than the price of the animals themselves
Total farm income had slipped from $6bn in 1929 to $2bn in 1932
Farm poverty was rife. It was almost impossible for farmers to pay mortgages and debts which meant 1/3 of them lost their land
The Impact of the Depression
Political Action
Farmers
Bankruptcy and foreclosure were common (banks repossessing the farm). Farming communities sometimes took action to try and stop farms from being sold at auction at very low prices
In 1932 75 people defended a farmer against deputy sheriffs in Wisconsin - they were trying to take his farm. The action failed
Buybacks also took place: one farm in Beraksa was worth $4,100 and was bought back for $50
The Impact of the Depression
Drought and Dust Bowl
Farmers
Farmers were hit by black blizzards which were partly their fault and partly the weather’s. This made the impact of the crash far worse for farmers.
Dust Bowl: 60% lost their farms; 500,000 buildings destroyed; 3,500 killed and 20m hectares couldn’t be farmed
The Impact of the Depression
Migrants, Why did they move?
Farmers
1m fled their farms to move west as a result of the Depression and the Dust Bowl. Okies and Arkies were the people fleeing west to states like California. They could get work as fruit pickers but th e wages were low and they had nowhere to live. They often set up temporary camps
Social Impact of the Depression
Unemployment and cuts in working hours
25% of labour force was unemployed; Ford made 1/2 of his workers unemployed in Detroit. In Chicago 40% of the workforce was unemployed.
Blacks were 52% unemployed
In addition, many people were on part-time contracts. US steel workers had their hours cut as production in steel mills dropped 30& in 1930
Social Impact of the Depression
Earnings and Poverty
Around 15% of all live savings lost
By late 1932 an estimated 25% weren’t receiving a wage
Only 20% of single-parent families were receiving financial support
Social Impact of the Depression
Homelessness
People couldn’t keep up mortgage payments and rent. And often lost their homes. In 1932 in NYC the gov had to find accommodation for 20,000 children whose parents couldn’t house them any longer
Social Impact of the Depression
Hoovervilles (Shanty Towns)
Hoovervilles were set up on the edge of major cities as people lost their homes
They were made of iron, tin, cardboard and anything else people could find. There were no running water or sewage facilities.
Bonus Army in Washington erected Bonus City which had 22,000 people
Social Impact of the Depression
Hobos/People on the move
Many people tried to travel around the country for work - hobos who would ride trains to try and find work. There were an estimated 2m in 1932 and 6500 were killed in 1933 by accidents on trains or by guards who made sure only paying passengers were on trains.
California had armed guards on trains
Social Impact of the Depression
Black People
Blacks had an unemployment rate of 50% compared to 30% for whites
1/2 of black women in the workforce lost their jobs
Social Impact of the Depression
Immigrants
Many lost their jobs to white people e.g. Mexican workers in California and the South West.
Some were deported - around 500,000 returned to Mexico in the early 1930s
Social Impact of the Depression
Women
Many lost their jobs as domestic workers - around 25%. Women were accused of taking men’s jobs if they worked. However, more women did work during the depression to try and help the family income, through low-paid jobs
Social Impact of the Depression
Elderly
Many couldn’t afford to retire so had to carry on working.
Only 11 states had pension schemes
Many had to rely on families to help them through
What were the key features of the Bonus Marchers in 1932
The cause of the veterans
The gov promised to pay WWI veterans a bonus of $625 for serving in the war, payable in 1945.
The veterans felt they couldn’t wait that long and in May/June 1932 20,000 veterans joined together and marched on Washington to support a bill which would allow them early payments of their bonuses. Hoover opposes this as paying the bonuses would cost $2.3bn and this was too much for Hoover. It passed the House of reps but it failed in the Senate.
Money was provided to help send the marchers home but 5,000 stayed and refused to leave
What were the key features of the Bonus Marchers in 1932
The Shanty Town
They built a shanty town called bonus city on Anacostia Flats outside Washington. One War Dept official said they were “tramps and hoodlums”
Hoover set a deadline for them to leave when this passed the police was to go in to get them out. When the police when in conflict broke out and 2 died. Hoover sent the army in the end and the marches fled. 100 were injured in the end. It all left a bitter taste in the mouth of many Americans.
What were the key features of the Bonus Marchers in 1932
Effects
It was an important event in Hoover’s presidency because people used it to show how he failed to deal effectively with the Depression. Hoover took the blame for what happened even though it was likely that the government didn’t have the money to pay the bonus
May have affected the 1932 election
Hoover’s measures to help Depression
Financial Policy
Moratorium on world debts from 1931. Would not collect war debts for 18 months. But as they had already called in loans they had already hurt world trade
By 1932 Hoover was cutting taxes. Average family man with income $4000 per year had tax cut by 2/3.
However, tax cuts upset the poor who thought they favoured the rich
Hoover’s measures to help Depression
Farmers
Emergency session of Congress April 1929 to help farmers
Agricultural Marketing Act 1929 to bolster price of grain, cotton etc
Provided $500 million to the Grain Stabilisation Corporation to buy surplus wheat from coops to stabilise prices and keep them high for farmers to make a profit
However this failed to stop prices falling, probably because they didn’t spend enough. Also gov built up huge supplies of food that it couldn’t release or the prices would drop. Unpopular as it seemed a waste of money. Bought wheat at 85 cents a bushel when market rate was 35 cents. Didn’t help all farmers and policy widely resented
Hoover’s measures to help Depression
Farmers
Federal Farm Loan Act 1932 provided $125 million for banks to provide mortgages.
But lending was tight because farmers had to pass various criteria
Hoover’s measures to help Depression
Business
Initially tried to make an agreement with employers not to lay people off and to try to maintain wages. 1929 National Business Survey Conference of 400 businessmen who made promises about wages, production & expansion
Most promises were broken as depression worsened
Hoover’s measures to help Depression
Homeless
Federal Home Loans Act 1932.
Federal home loan banks created to provide 50% assistance for people who couldn’t pay off their mortgages and to stimulate housing market
Had 41,000 applications for help but only 3 were accepted
Hoover’s measures to help Depression
Unemployed
Initial response we to rely on charity and to persuade businesses not to lay off people. Encouraged people to give to charity and set up soup kitchens
Charities were soon out of their depth as problem was so large
Hoover’s measures to help Depression
Unemployed (Reconstruction Finance Corporation)
Reconstruction Finance Corporation 1932 allowed federal gov to loan $300 million to states for relief
But the states had to meet tough requirements. Only $30 million loaned by end of 1932
Hoover’s measures to help Depression
International
Moratorium on world debts in 1931. US not collect debts for 18 months to give Europe more time to recover
But this didn’t do enough to prevent collapse of world trade and probably came too late
Principles behind New Deal
What were Roosevelt’s aims?
Relief
Helping people now - food, cash, jobs
Recovery
To get better long term. Get economy functioning again - raise incomes for farmers, end to banking crisis, higher rates of industrial production
Reform
Making permanent change to prevent re-occurence and to improve people’s lives. Make capitalist system work better for people - social security system, strengthen power of trade unions
Principles behind New Deal
How did Roosevelt intend to solve the crisis?
Pump-priming
The New Deal’s economic approach proposed government intervention through extensive spending on public works to generate employment and stimulate consumer spending. The New Deal aimed to prime the pump by providing wages and encouraging spending while also granting businesses cheap loans to boost investment and confidence. Although initially costly and reliant on borrowing, the government expected to recover the funds through taxation once the economy regained stability, allowing it to reduce its interventionist role.
Principles behind New Deal
How did Roosevelt intend to solve the crisis?
Fireside chats
Fireside chats
Spoke to people directly over radio 30 times. Brilliant propaganda. Three aspects
Homeliness - chats like a father discussing public affairs with family in living room. People felt closer to the government and president and made them feel included in the plans
Reasonableness - FDR said not make false promises and would not succeed every time. It prevented panic
Blame - spoke of the 10% who wanted the Deal to fail. Ordinary people believed he was fighting the rich and selfish on their behalf. Even though gains of the New Deal were not great FDR won 1936 election by another landslide
Principles behind New Deal
How did Roosevelt intend to solve the crisis?
100 Days/First New Deal
100 Days/First New Deal
March - June 1933
Period frantic activity that reformed banks, ended prohibition and reformed financial system
New laws passed with emergency legislation
Emphasis on relief and recovery
Agencies set up to help people - fix prices for farmers, civil works programmes to get people back to work
Principles behind New Deal
Why did FDR introduce Second New Deal?
Pre-empt opposition
Pre-empt opposition
Build up of political opposition - Heuy Long, Coughlin so social security and pensions introduced. Farmer- Labour Party pressing for more agricultural reform
Radical congress elected in mid-term 1934 elections. Had plans for labour laws, minimum wages, tax rises etc. FDR needed to do more as were strikes over poor working conditions. Workers were the mainstay of FDR ‘s support so alienating business was a little more acceptable
Agencies of the New Deal
Beer Act 1933
Helps unemployed & destitute
Ends prohibition. Only 7 states voted against 21st Amendment.
POSITIVE
Raises morale, raises taxation, reduced organised crime and need for high police costs
Agencies of New Deal
CCC 1933
helps unemployed & destitute
Because agencies were being attacked.
CCC 1933
18-24 year olds put to work in camps built by army. Military discipline enforced. Conservation work. Earned $30 per month, $25 of which is sent back home to families
POSITIVE
2 million helped in 9 years. Developed literacy & conservation skills. Some joined army afterwards. Money helped families
NEGATIVE
Comparisions to Hitler Youth. Trade Unions not keen. Only helped young people and mainly male. Only for 6 months but people kept coming back as no work elsewhere
Agencies of New Deal
WPA 1935
helps unemployed & destitute
Replaced PSA & CWA. 11 public projects and part of NRA
Spent $11 billion overall on roads, parks, writers and artistic projects, youth training programmes and programmes for women
POSITIVE
11,000 schools, 2,500 hospitals, 350 airports, 8,000 parks, 5,900 schools. Employed 8.5 million people over 5 years. 1/5 of nation’s workforce. Helped white collar professionals through community service schemes - musicians, actors
NEGATIVE
Not so good for city centre slums
Some of jobs were silly - Steinbeck told to take a census of dogs
Agencies of New Deal
NIRA 1933
Helps industry
The first joint economic planning between government and business aimed to maintain profits and ensure fair wages by offering a Blue Eagle reward for companies that signed agreements on codes, resulting in fair prices for goods and improved profits. Addressing low wages was a key focus due to its contribution to an uneven economy.
POSITIVE
Blue Eagle seen as a symbol of recovery
Showed government were on the case
9m in unions by 1939
Banned child labour
NEGATIVE
Employers hated it. Encouraged strikes, pushed up prices. Min wages too high for smaller firms. Success dependent on businesses sacrificing profits for unions
Agencies of New Deal
Emergency Banking Act 1933
Helps banks
Shut them for 4 days and inspected accounts. Only opened again when had adequate cash reserves. Fireside chats to reassure public. Gov bought shares in bank to give them stability
POSITIVE
Stopped panic and $300million in gold returned and $1 million in deposits
Confidence returned. Saved banks in 8 days
NEGATIVE
Were banks dealt with harshly enough?
Use of emergency leglislation criticised
Agencies of New Deal
Banking Act 1935
Helps banks
Created Federal Reserve Board over 12 regional branches
POSITIVE
Enhanced authority of Federal Reserve and provided belated central banking system. No more bank collapses after 1936
NEGATIVE
Opposition from bankers who didn’t wish to lose control
Agencies of New Deal
National Labour Relations Act (Wagner) 1935
Helps unions
Replaced NIRA, allowed unions, stopped spying/blacklisting. Secret ballot for striking.
Positive: increased union membership (3m-9m 1933-39), fair practices.
Negative: Ford ignored it, Memorial Day Massacre - 10 dead, 30 injured in clash with police supporting union membership.
Agencies of New Deal
Home Owner’s Refinancing Act 1933
Helps housing
To help people with mortgage payments. Given longer to repay
POSITIVE
Around 1 million people able to keep their homes
Agencies of New Deal
AAA Agricultural Adjustment Act 1933
Helps farming
- Reduced production to raise prices, receiving $11 per unused acre funded by a food production tax. Some food is given to the unemployed.
- Positive outcomes included doubled farmers’ income, reduced foreclosures, and Farmers v keen - 95% tobacco farmers signed up
- Negative aspects included destruction seen as wasteful, larger farms benefiting more, Cut in production more to do with dust bowl - 35 million acres destroyed, limited price increase due to existing surplus, and consumers being heavily affected by food processing tax.
Agencies of New Deal
Tennessee Valley Authority 1933
Helps farming
41,000 sq miles cultivated and built up where erosion had been
Big effort to electrify rural areas. Dams built.
Established Electric Home & Farm Authority to help farmers buy electrical appliances
POSITIVE
Provide jobs. 80% of valley had electricity by 1943
21 dams built, Norris Dam
Soil erosion prevented by trees being planted
3 greenbelt in Ohio, Wisconsin & Maryland
NEGATIVE
Too much intervention, near socialism
Power companies complained TVA unfair competition
Electricity companies built spite lines to richer areas and prevented poorer areas from getting permission to build lines
Underfunded. 4,000 families resettled but reluctant to move
Agencies of New Deal
Rural Electrification Administration 1935
Helps farming
Set up by REA to grant loans to rural coops to provide electricity
POSITIVE
1930 only 10% farms had electricity, some areas only 1%
Not profitable for large companies to provide electricity to remote areas
Huge effect on transforming rural life and farming methods
By 1941 35% of farms had electricity
Critics of New Deal
Supreme Court
V conservative as few Democrat Presidents from 1861 so fewer chances of having Democrat judges
1935 NRA declared unconstitutional
1936 AAA declared unconstitutional
Big blow to New Deal, could collapse
11 agencies hit on Black Monday. Democrats furious
Critics of New Deal
FDR & Supreme Court
After 1936 election FDR proposes to replace new judges to replace those over 70 so get a pro-New Deal court
Criticism that FDR amassing too much power. Split Democrat party. Led to limit on amount of time President can serve
Critics on right
Republican Party
FDR was democrat
Made federal gov too powerful. Opposed size and power of Alphabet Agencies
Supported anti-New Deal decisions of Supreme Court
Thought FDR spent too much money and put gov into debt
Tried to oppose by:
In 1936 election Alfred Landon campaigned for more power to be returned to the states, aid for farmers and end to New Deal Regulations
However lost election badly and do little until after 1938 mid terms
Critics on right
American Liberty League - ALL
Argued that FDR was a near totalitarian and threat to nation’s freedom with his interventionalist policy
Disliked being told what to do - NRA codes, min wage
Thought leading country towards bankruptcy and spending too much money on social security and work programmes
Thought low taxation was answer to persuading people to spend
Disliked help being given to unions
Tried to oppose by:
ALL joined with business leaders like Du Ponts to oppose New Deal
Spent between $500,000 & $1.5billion in promotional campaigns. Funding came mostly from Du Pont family, aswell as US Steel, Colgate, Heinz
Challenged Wagner Act but lost in Supreme Court in 1940
In 1934 allegedly involved in Business Plot to overthrow FDR
Republicaton Party asked it to stay out of 1936 election for fear it would lose support. Only had 150,000 members
Critics on right
Conservative Democrats
Often came from south and represented farming states
Disliked farming policies and Wagner Act.
Thought FDR was going too far with civil policies
Tried to oppose by:
Could join with Republicans after 1938 mid-terms
Managed to cut spending on relief programmes, investigate alphabet agencies and weaken them
Even accused officials of being communist
Did block housing plan and a request for more work projects in 1939
Critics on left: Huey Long
Who was he?
Criticism of New Deal
Governor of Louisiana. Became Senator. Popular because he taxed rich people and provided social services before New Deal (free school textbooks, adult reading and writing courses)
Opposition to New Deal
NRA controlled by big business
AAA left tenant farmers homeless
Social Security Act didn’t reduce gap between rich and poor
Campaign
Critics on left: Huey Long
Campaign recommendations
Share our Wealth: New tax code limits personal fortune to $5 million, annual income to $1.8 million (or 300 times average family income), and inheritances to $5 million. Funds used for basic household grant, minimum annual income, free education, pensions, veteran’s benefits, assistance to farmers, works projects, and 30-hour workweek.
Critics on left: Huey Long
Problems with campaign ideas
What happened to him?
Hugely unrealistic - not enough rich people to fund it
He was v popular. 8 million members of his Share our Wealth chapters
Pressure from Long and his organisation considered by some as being responsible for FDR’s turn to the left in 1935 when he enacted Second New Deal
He may have stood for president but assassinated in 1935
Critics on left: Father Charles Coughlin
Who was he?
Criticism of New Deal
Catholic priest from Detroit. Had 30 million listeners to his weekly radio programme
At first a supporter but later preached about negative influence of international baners and Wall Street
Thought Communists influenced FDR
Critics on left: Father Charles Coughlin
Campaign recommendations
Campaign recommendations
National Union for Social Justice established in 1934. Demanded nationalisation of parts of economy, including public utilities
Currency and banking reforms
Fairer taxation
Critics on left: Father Charles Coughlin
Problems with campaign ideas
Simplicity of ideas attacked supporters.
After 1936 Coughlin expressed sympathy for Hitler and Mussolini and his radio broadcasts became overtly anti-Semitic.
This turn to the left wrong footed his campaign and struggled to remain popular
Critics on left: Francis Townsend
Who was he?
Criticism of New Deal
Retired public health official who was shocked by elderly women searching through bins for food
He thought New Deal not doing enough for elderly people
Critics on left: Francis Townsend
Campaign recommendations
Old Age Revolving Pensions
Anyone over 60 receive pension of $200 permonth as long as they spent the money within 30 days of received it
To be paid for by national sales tax of 2% on all business transactions (like VAT).
Idea to end depression with consumer spending.
Critics on left: Francis Townsend
Problems with campaign ideas
What happened to him?
The tax would be too small to raise enough money
He got a lot of support. Got bill into House of Representatives, 20 million signatures. 500,000 people joined his clubs
When FDR passed 1935 Social Security Act Townsend continued to press for high payments for social security and old age assistance
Critics on left: Upton Sinclair
Who was he?
Criticism of New Deal
Writer of novels of social protest and politics.
Thought New Deal not doing enough for workers
Critics on left: Upton Sinclair
Campaign recommendations
Called for new economic system in which state would take over running of farms and factories as state run co-ops. Workers paid special currency to be spent at other co-ops
Empty land and shut down businesses to be opened up for unemployed to use. Could produce what they needed
Critics on left: Upton Sinclair
Problems with campaign ideas
What happened to him?
Clubs were formed ‘End poverty in California’.
Sinclair won state primary in 1936
Lost election for governor after being unfairly associated with communism
The Impact of the New Deal
Economic Growth/Industry - Successes
Measures such as NRA
Most businesses that survived were able to make a profit.
NRA tries to stimulate recovery
NRA Blue Eagle everywhere and seen as a symbol of recovery
1937 depression suggests his spending was making a difference
The Impact of the New Deal
Economic Growth/Industry - Problems Remaining
Measures such as NRA
Many businesses ignored the NRA codes
Older industries remained unprofitable and the county faced a deep recession 1937-38
Industrial recovery delayed until the war
The Impact of the New Deal
Banks - Successes
Measures such as Emergency Banking Act and Glass Steagall Act
No bank failures under FDR and deposits insured
Stabilised banking and financial markets
Centralised the system
Deposit insurance
The Impact of the New Deal
Banks - Problems Remaining
Measures such as Emergency Banking Act and Glass Steagall Act
People put money back into banks, but does not help investment which is still slack and stock prices do not recover until after the war
The Impact of the New Deal
Unemployment - Successes
Measures such as WPA, FERA, CCC and PWA
Agencies provided work for millions and unemployment fell from 12.4m in 1933 to 9.5m in 1937.
WPA employed 8m people
New roads, parks and schools were built
The Impact of the New Deal
Unemployment - Problems Remaining
Measures such as WPA, FERA, CCC and PWA
Unemployment didn’t fall enough. The gov didn’t spend enough and the quality of the agencies varied
The CCC provided 6 months of poorly paid work with no skill training
In 1939 17% of the workforce was still unemployed
The Impact of the New Deal
Unions - Successes
Measures such as Wagner Act, NRA and Minimum Wage Act
Unionisation allowed and strengthened
Right to collective bargaining
Ending Child Labour
Min wages and max working hours
7m union members by 1938 in the most powerful industries
The Impact of the New Deal
Unions - Problems Remaining
Measures such as Wagner Act, NRA and Minimum Wage Act
Hostility from employers, strikes rose and unions were still treated with suspicion
Many strikes broken by employer violence
7 hour battle between National Guard and strikers in Toledo, Ohio in 1934
The Impact of the New Deal
Social Welfare/Relief - Successes
Measures such as Social Security Act and HOLC
Social Security Act meant that unemployment benefits were accepted by the US economy. Also gave pensions to those over 65 and maternity and disabled benefits. This showed that the gov was capable of compassion and was responsible
35% of the population received relief from the government
The Impact of the New Deal
Social Welfare/Relief - Problems Remaining
Measures such as Social Security Act and HOLC
Welfare accused of destroying individualism and putting a huge burden on taxpayers.
Social Security was quite limited in who could be paid and most agencies didn’t give direct benefits.
In 1935 only 4% of the 13 million US workers were eligible for a pension
The Impact of the New Deal
Farmers and Agricultural Workers - Successes
Measures such as AAA, Farm Security Administration and TVA
Farm income rose from $2.5bn a year to $4.6bn
TVA - enormous areas helped and a huge scheme of regeneration to change the economy of the whole area.
The Impact of the New Deal
Farmers and Agricultural Workers - Problems Remaining
Measures such as AAA, Farm Security Administration and TVA
Big Farmers do better
Dust Bowl migrants given little support
Farm incomes rarely reached the levels of even 1929
The Impact of the New Deal
Women - Successes
Measures such as Social Security Act, WPA and NYA
Women - Eleanor Roosevelt and Francis Perkins as role models
Numbers rose in work by 22-25% in the 1930s
Female Ambassadors and judges appointed
Grants provided for women with dependent children in Social Security Act
The Impact of the New Deal
Women - Problems Remaining
Measures such as Social Security Act, WPA and NYA
Some NRA codes required women to be paid less than men - in 1937 they were earning around 1/2 a man’s wage
Only 1 woman elected to the Senate in the 1930s
The Impact of the New Deal
Black People - Successes
Measure such as WPA, NYA, TVA and CCC
30% of black families received relief
FDR had an unofficial black cabinet to advise him
Around 200,000 black Americans recived benefits from agencies
CIO unionised many blacks and also prohibited race discrimination in its organisation
The Impact of the New Deal
Black People - Problems Remaining
Measure such as WPA, NYA, TVA and CCC
- No guarantee against discrimination in agencies - CCC was segregated
- By 1935 30% of blacks couldn’t get work - whites still came first
The Impact of the New Deal
Native Americans - Sucesses
Measures such as Indian Reorganisation Act 1934 and WPA
The IRA restored 7.4m acres of land to tribes
Native Americans were given a chance to vote and government themselves
The new law recognised the right of Native American women to vote
The Impact of the New Deal
Native Americans - Problems Remaining
Measures such as Indian Reorganisation Act 1934 and WPA
Some New Deal polices such as a plan to hill large numbers of the Navajo’s sheep and goats were unpopular
Reliance on New Deal like the WPA left them without help when they closed down
