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The Great Depression & New Deal, 1929-1941
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Origins and Causes Extreme wealth inequalities Ballooning stock market Over reliance on unprotected loans Too much speculation & borrowing Overproduction and uneven distribution capabilities Stock Market crash was a symptom Banks lacked money, people lost savings, debts were called in, no cash Production stopped, workers fired, no $, consumption declined, no profits, more workers fired
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President Hoover Herbert Hoover Progressive War Reconstruction Opposed direct federal aid Self-help & volunteerism Self-help cooperatives
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“Hoover’s America” Anti-tax views & opposition to gov’t support deepened depression Texas legislature vetoed a bond measure for relief Oklahoma governor William Murray called out the national guard to enforce segregation in OK City Colorado Senator Ed Costigan wanted federal government to help states in relief efforts
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Hoovervilles
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Seattle, 1931
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The Bonus Army/March World War One veterans Gov’t denied their pensions Marched on Washington, 1932 Congregated around White House Gen. Douglas MacArthur Military evicted them from D.C. Deep anger at gov’t Deep class divisions http://www.youtube.com/watch?v=xqev dBZCbcQ http://www.youtube.com/watch?v=xqev dBZCbcQ
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Election of 1932 Hoover v. FDR
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Hoover Believed that the key to recovery was confidence Depression was a “ world-wide economic conditions beyond our control ” Government and business officials tried to maintain public confidence
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Voluntary action fails Business promised to keep wages up but did not keep the promise After a year of bad times people began to blame the depression on President Hoover
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Government actions Agricultural Marketing Act- designed to stabilize prices of crops Program was a failure- lost more than $150 million To create jobs they spent money on building roads, parks, and dams. Hoover Dam
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Government actions Hawley-Smoot tariff- Highest import tax, Europeans raised their taxes too, caused a slowdown of trade Reconstruction Finance Corporation (RFC) - lent money to banks and large industries Banks continued to fail People felt that the government was only helping the rich Hoover ’ s unpopularity grows
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Hoover thinks relief should come from state and local governments People thought he was cold hearted Blamed him for their problems 1932- Finally lent money to state and local governments for unemployment but it was too little to late Bonus Army demanded pension money for 1945 marched in Washington Hoover called in the Army Army used force to make marchers leave Many people were injured
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ActionGoal Success or Failure/Why? Organized White House conference of business leaders to presuade business leaders voluntarily to maintain workers wages FAIL- businesses cut workers pay Signed the Hawley- Smoot tarriff bill protect domestic industries from imports FAIL- Europe raised their own tariffs bringing slow down in international trade
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set up Reconstruction Finance Corporation to help banks so they could extend loans FAIL- people thought government was only helping the banks not people Insisted that state and local governments handle relief programs to protect self- respect & avoid creating a large bureaucracy FAIL- refusal to provide direct aid. Created a negative public reaction
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FDR- Franklin Delano Roosevelt Promised people a new deal and that “ happy days were here ” Democrat Harvard graduate On New York State Senate twice Assistant secretary of Navy under President Wilson Polio in 1920 and never walked again Ready to experiment with government roles Brought optimism to the table Worked with depression relief as a governor of New York
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FDR- Franklin Delano Roosevelt Wife Eleanor was niece of Theodore Roosevelt Experienced political worker and social reformer Worked for several causes Public housing legislation State government reform Birth control Better conditions for working women
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Election of 1932 “ This campaign is more than a contest between two men… it is a contest between two philosophies of government ” Hoover 1932 Battle between how much the government should and should not be involved in fixing people ’ s problems Hoover argued that government would be to powerful
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Election of 1932 FDR won with a margin of 7 million votes People didn ’ t always support FDR because of his ideas, they opposed Hoover for being too passive 1933- FDR took office
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Roosevelt and the New Deal Frederick Delano Roosevelt (FDR) Programs to address the Depression “Relief, Recovery, Reform” Debt spending Consume our way out of the depression Role of government
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Immediate Responses, 1933 Banking Holiday Closed Banks for 10 days Federal Emergency Relief Act Federal funds for relief National Industrial Recovery Act Fair work and competition codes Administration to enforce codes Guaranteed labor’s right to organize
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New Deal Programs Civilian Conservation Corps Soil Conservation Service Soil Erosion Planting trees Irrigation and range management http://www.youtube.com /watch?v=qolPqXNGW3I http://www.youtube.com /watch?v=qolPqXNGW3I
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Tennessee Valley Authority Flood control, Electricity, Irrigation, work
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Works Progress Administration WPA Biggest agency 1935 employed 8 million and $2 billion fund Bridges, reservoirs, irrigation, sewage, schools, playgrounds, education, training Work Programs paid minimum wages, pulled them off charity and soup lines “We Work Again” http://www.youtube.com/watch?v=Gk0Sp TOi9Aw http://www.youtube.com/watch?v=Gk0Sp TOi9Aw
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1935 Social Security Act Safety net for all Americans Percentage of paycheck Based on shorter life-span Intended to supplement (not replace) income Less inclined to “retire”
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Financial System Federal Deposit Insurance Corporation (FDIC) Insured individual bank deposits Securities and Exchange Commission (SEC) Regulated trading practices in stocks and bonds
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Problems with New Deal Relief based on race: Tucson scaled payments based on race Favored large industries and business Hurt some small farmers Local agencies administered relief and ran programs
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Propaganda/Education Government Promotional Film http://www.youtube.com/watch?v=Aq5UiGdje8U http://www.youtube.com/watch?v=Aq5UiGdje8U
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Water and the West Bureau of Reclamation Hoover Dam Water for L.A., Imperial Valley, Phoenix, and power for region Central Valley Project harnessed the Sacramento River Water storage, irrigation, hydro-electricity Federal-corporate alliance $2.5 billion by 1935
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Hoover Dam
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Grand Coulee Dam Columbia River, 1941 Largest concrete structure in the world Created a 150 mile lake Too much power Bonneville Power Administration Powered 70% of Northwest
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The Dust Bowl Economic and environmental disaster Overproduction, monocrops Plowed up grasses for farms to meet the needs of a booming wheat market Soil exhaustion, soil erosion Drought and winds 1935: Blew winds from CO and NE, blackened the sky across the plains, into the East and Atlantic Ocean
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Responses Killed millions of animals, burned millions of tons of food Taylor Grazing Act Federal control of grazing
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Migrants: Okies Poor whites and sharecroppers Evicted from OK, TX, MI, ARK Going to CAL L.A. Police Chief “bum blockade”
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Mexican and Okie Farmworkers
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Mexican Repatriation Mexican & Mexican Americans sent to Mexico Nearly 1 million L.A. County deported 12,000 Colorado deported 20,000
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The Indian New Deal John Collier Progressive Pueblos Preserve cultures
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The Indian New Deal Multi-faceted legislation Education Politics Religion Land Culture Language
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Indian Reorganization Act IRA, 1934 Economic & political assistance Business Councils Tribal Constitutions BIA, Interior Over half rejected it
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Women Eleanor Roosevelt Work & aid Patriotic home economics conserve, recycle, help America “as a woman”
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African Americans Jobs in gov’t Sharecropping 100,000 blacks evicted by AAA No loans from FHA Mary McCloud Bethune http://www.youtube.c om/watch?v=Gk0SpT Oi9Aw http://www.youtube.c om/watch?v=Gk0SpT Oi9Aw
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“Share the Wealth” Huey Long Populist Gov. in LA Use of radio and sensational claims Rhetoric of poverty / class tensions Senator Share the Wealth Social Justice http://www.youtube.com/watch?v=mdzAbxsjPRA&NR=1 http://www.youtube.com/watch?v=mdzAbxsjPRA&NR=1
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Public Art and Culture Federal Writers Project Theater Oral histories of slavery, folk lore, Indian stories, Mexican Revolution, cowboys, frontier life, etc National cultural resources and heritage Federal Arts Program http://www.youtube.com/watch?v=PKsm3Sm BBKU&feature=related http://www.youtube.com/watch?v=PKsm3Sm BBKU&feature=related
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Federal Theatre Project
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Writer’s & Theater Project
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WPA Posters
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Travel through the West
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New Deal Work Mural
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End of the Depression Federal spending on an unprecedented level failed to stop it The largest entrance of the federal government into the American economy Made the federal government into a “broker state” between labor and capital Social programs and “safety net” Brought fed gov’t into the lives of nearly all Westerners WWII ended the Depression
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Comparisons with the Present? Wealth inequalities Deregulation Bad Home mortgages Massive individual debt Inflated costs & uncontrolled speculative investments in commodities Collapse of investment-debt-loan system A Vicious Cycle: Retraction of loans, increase in job losses, fall in investments, layoffs, decline in consumption, reduced production, layoffs, no consumption…
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