Stocks rise during the 20s, they start to go flat and people panic and pull out their stocks
1929, Great Depression
Government passes tariffs to protect American businesses
Hawley-Smoot Tariff - so high that people couldn't buy internationally, other countries raised tariffs in response
Didn't help Americans because there was no consumer activity
Market crashes
Big layoffs
Cut hours
Less job opportunities
25% unemployment rate
50% Black unemployment rate
Someone goes to the bank and asks to clear their account, little bit of drama and then he goes to the press and says the bank didn't want to give him his money
Bank Run - everyone rushes to the bank to withdraw money
Bank Failure - not everyone can get their money, the bank runs out
1500 banks close in the first year
Hoover does nothing to help the depression
Volunteerism - the rich people need to give money to the poor, doesn't work
Localism - the depression is only on a local level, solve it in your own city
Reconstruction Finance Corp. (RFC) - Funds busywork projects with government money to open jobs and stimulate the economy
Blame Hoover for everything
Hoover city, Hoover flags, Hoover wagons - everything that symbolizes poverty is associated with Hoover
1932, Hoover is up for reelection
Government promised veterans checks, didn't give them because they didn't want to go into debt
Big uproar, Congress writes bonuses for vets but Hoover vetoes
Bonus Army - 100,000 homeless veterans move to DC and set up encampment outside of government buildings
Hoover tells the police to use tear gas on the veterans
Eleanor Roosevelt protests with veterans, Franklin Roosevelt wins election
Franklin D. Roosevelt had polio as a child and didn't have much use of his legs
Media agreed not to photograph him in his wheelchair
He didn't want to appear weak to the fragile American society
Brain Trust - Group of advisors to help Roosevelt
Black Cabinet - Group of advisors to help Roosevelt with rights of Black people
First Hundred Days - Roosevelt promised that he accomplish as much as possible in his first 100 daysin office
Congress was willing to pass a lot
Fireside Chats - Roosevelt educates the public via radio (often), made public like Roosevelt more
Bills: Closed banks on weekends, acronyms
President's success is now measured by what they do in the first 100 days
The New Deal
Relief - provide relief to the impoverished and homeless
Recovery - build the economy back up
Reform - make sure this doesn't happen again
Hundred Days Bills
FDIC (Federal Deposit Insurance Corporation) - if your bank fails the government will return your money up to 250k
SEC (Securities and Exchange Commission) - outlaws Insider Trading
Glass Steagall Banking Act - commercial banks and investment banks have to be separate
CCC (Civilian Conservation Corp) - gives people jobs and helps the environment
WPA (Works Progress Administration) - hires entertainment workers (so they have stuff to do)
Federal Writers Project - part of the WPA, interviewedformer slaves
Dust Bowl:
During WWI, farmers were dry farming to save water
The land become over-tilled and the soil was lose
Normally rain would fix this and pack the soil back down but in the 1930s there was a drought
There were also dust storms
Led to dust-monia and death
Oakies - Oklahomans who mass migrated to California
AAA (Agricultural Adjustment Act) - sets crop prices and buys back farmer surplus
TVA (Tennessee Valley Authority) - build dams in TN River Valley, provides electricity and water to people in App.
NIRA (National Industrial Recovery Administration) - A government agency that helped businesses to recover from the depression, provides jobs
PWA (Public Works Administration) - provides money for public programs (canals, bridges, roads, etc.)
Wagner Act - anyone can join a union, you can't be fired for joining a union
SSA (Social Security Administration) - take money from paychecks and gives it to old people
Radical Leftists think Roosevelt isn't helping the right people
He's only helping businesses and bankers
Huey Long - LA Senator, Populist, thought Roosevelt isn't doing enough; wanted Share Our Wealth Program (wealth tax)
Long ran against Roosevelt during primaries (be Dem nominee) but he was assassinated
Charles Coughlin - Canadian, Catholic Priest, was initially on Roosevelt's side but turned against him because he thought he was on helping bankers; turned to anti-Semitism (Jews are bankers), blamed the depression on Jewish people, pro Hitler and Mussolini
Conservatives thing Roosevelt is doing too much
Too much government spending
Schechter Poultry v. US
Court case against the NIRA
Supreme Court decides the establishment of the NIRA is unconstitutional
Roosevelt was mad because the overruled his largest bill
Roosevelt considered proposing a bill for a mandatory retirement age of judges
SC says if he proposes his bill then they will overturn all his other New Deal bills