USA CHAPTER ONE (economic downturn + recovery)

the collapse of the US stock market in 1929, bankrupting many US businesses

share prices at an all time high

29th October 1929, 16m shares sold at low prices.

13 million

1928

laissez faire attitude to economy

rugged individualism

1. Reconstruction Finance Corporation (Feb 1932) US$2 billion given in loans to struggling banks

2. Emergency Relief Act (Jul 1932) US $300 million given to state governments to help the unemployed

3. Home Loan Bank Act (Jul 1932) 12 regional banks set up with a fund of US$125 million

WWI veterans who wanted the bonus they had been promised after the war. When they were denied they set up Hoovervilles outside Washington DC in protest

the marchers were offered transport home but around 5000 refused to leave. Conflict broke out and 2 veterans were killed. Hoover brought in the army to deal with the situation, 100 people were injured and a baby died from tear gas poisoning

optimistic approach

new deal

hoover and republicans blamed for depression

‘I pledge you, I pledge myself, to a new deal for the American people’

42 out of 48

radio broadcasts in which Roosevelt spoke directly to the American people

federal emergency relief act gave 500 million to state agencies in grants

farm credit administration gave low interest loans to farmers

• Civil Works Administration → by 1934: 4 million Americans on CWA payroll. Jobs included scaring birds away from buildings or sweeping leaves

• Civilian Conservation Corps → jobs for hobos living in Hoovervilles 18-25. By 1941 >2million men had work with CCC

• Agricultural Adjustment Act → farmers paid to produce less, increasing prices. 1936 incomes were 1.5x 1933 incomes

• National Recovery Administration → wages + working conditions, max hours + min wages

• Tennessee Valley Authority → series of dams to generate cheap electricity + control flooding; made destroyed land in dust bowl fertile again. TVA eventually covered 7 states

• Huey Long: Republican governor of Louisiana; claimed Roosevelt was not sharing the country's wealth properly. Slogan 'share our wealth' and he gained much support.

• Father Charles Coughlin: Catholic priest, claimed Roosevelt was not doing enough for the needy. He had a weekly radio show with 40m listeners.

• Dr Frances Townsend: former army doctor + old age activist had benefited little from the new deal by 1934. He set up the Townsend clubs which had 5m members by 1935

• believed Roosevelt was doing too much to help people + was changing US gov. role

• represented rich American families + large businesses who didn’t want more tax

• believed actions were unconstitutional as they took too much power away from state governments

• laissez-faire attitude to economy + believed American economy would recover on its own

The conservative democrats / DIXIECRATS

a political organisation set up in 1934 to preserve individual freedom. This was backed by wealthy businessmen like Alfred Smith and John Davis

when the 4 Schechter brothers, who ran a poultry business and were signed with the NRA (set up by NIRA) were taken to court by the NRA for selling diseased chickens. When the brothers appealed to the supreme court it declared the NIRA illegal and its actions unconstitutional and 750 NIRA codes of practice were subsequently scrapped.

When the supreme court declared the AAA illegal as giving help to farmers was a 'state affair'. As a result, all federal government help to farmers ceased.

10 million

• Works Progress Administration: organised US$4.8 billion relief program. Put unemployed teachers back to work and employed artists, writers and actors.

• Wagner Act: set up the National Relations Board which had the power to act against employers using unfair practices.

• Fair Labour Standards Act: established min wages and max hours. 300 000 workers paid more as a result + >1 million got shorter working hours. Child labour not permitted except on farms.

• Social Security Act: pensions for the elderly and injured. Also imposed unemployment benefits.

• restored people's faith in the government.

• democracy was maintained.

• extended role of the central government.

• too much federal power/ bureaucracy

stabilised banking system \n - provided roads, schools and power stations \n - cut number of business failures \n - provided short-term solutions only \n - didn't solve underlying problems \n - took longer to recover than European countries, only by time of WWII

- unemployment fell \n - labour unions strengthened (3m 1933- 9m 1939) \n - only short-term jobs \n - recession 1937-8 \n - Unions treated with suspicion

provided semi-welfare state w/help for the poo

encouraged spongers?

~2000 benefited from CCC

slum clearance

still discriminated against, discriminated against Alphabet Agencies e.g. AAA

first to be fired by big businesses

some prominent female figures e.g. Eleanor Roosevelt + Frances Perkins

tokenism

8000 out of 2.75 million women employed by CCC

some NIRA codes required women to be paid less than men