Topic 13 Readings

Lesson 1: Causes of the Depression

Objective 1

Identify the causes of the Great Depression.

(This objective combines other objectives listed in this lesson that include:

Identify how weaknesses in the economy in the 1920s caused the Great Depression.
Explain why the stock market crashed in 1929 and the crash’s effect on the economy.
Describe how the Great Depression deepened in the US & spread overseas.)

Notes

Wealthy individuals alone cannot keep the economy booming; a healthy economy requires more people to buy more products, leading to further wealth creation.
Uneven wealth distribution in the 1920s pointed to an uncertain future for the American economy.
The stock market crash in 1929 affected the country's banking system, leading to a crisis as depositors tried to withdraw their money.
Business leaders resorted to production cutbacks to maintain price levels and layoffs to reduce payroll.
Companies began closing plants and laying off workers, leading to a rise in unemployment, as exemplified by Henry Ford closing several Detroit automobile factories and leaving almost 75,000 people unemployed.

Summary

In the 1920s, the wealthy couldn't buy enough to keep the economy growing, and the uneven distribution of wealth made the future of the American economy uncertain. The stock market crash of 1929 led to bank runs and business leaders cutting back on production and employees to maintain price levels. This highlighted the challenges of underconsumption and the devastating effects of a stock market crash on the broader economy.

Lesson 2: Americans Suffer

Objective 1

Examine the spread of unemployment in America’s cities

Notes

Annual average unemployment rates in the US remained below 3.7% between 1921 and 1929 but spiked to 24.9% during the depression.
While some workers managed to keep their jobs, many experienced pay cuts and reduced hours.
Families were forced to cut back on food expenses, with children eating smaller meals and meat disappearing from the table.
Americans resorted to selling furniture, pawning jewelry, and moving to cheaper lodgings to make ends meet, and many ended up homeless in makeshift shantytowns known as Hoovervilles.

Summary

The Great Depression caused high unemployment rates, reduced wages and working hours, and significant financial hardship for American families. Many resorted to selling their belongings and moving to cheaper lodgings, but some ended up homeless in shantytowns known as Hoovervilles. The depression led to significant changes in the economy and society as a whole.

Objective 2

Analyze the effects of the Great Depression on farmers

Notes

Crop prices fell drastically during the Great Depression, leaving farmers struggling to make ends meet.
For example, a bushel of wheat that sold for $2.16 in 1919 sold for only 38 cents in 1932.
This price decline was seen across all farm products, and many farmers were forced to default on their mortgages, leading to the loss of nearly one million farms between 1930 and 1934.
A drought in the mid-1930s further compounded the challenges faced by farmers during this time.

Summary

During the Great Depression, farmers were hit hard by drastic drops in crop prices for wheat, cotton, corn, beans, cattle, and hogs. This led to protests, including one where farmers dumped 1,000 gallons of milk on a road. Nearly one million farmers lost their farms between 1930 and 1934 due to mortgage defaults. Even farmers who survived the market crash faced additional challenges, such as a drought in the Great Plains. The Great Depression had a devastating impact on the agricultural industry, causing widespread economic hardship and suffering for farmers and their families.

Objective 3

Describe how the Great Depression affected the family life and the lives of African Americans and Mexican Americans.

Notes

Gigantic clouds of dust and dirt from the southern Great Plains during the Dust Bowl could rise up to 8,000 feet and move at speeds of up to 100 miles per hour.
Migrants fleeing the Dust Bowl faced competition from other farm laborers, with African Americans often being the last to be hired and the first to be fired.
Landowners in the South threw African American sharecroppers off their farms, while hundreds of thousands of people of Mexican ancestry were forced out of the US, and those who remained worked in farming, ranching, and industry.

Summary

The Great Depression caused huge dust storms in the southern Great Plains, hitting Texas, Oklahoma, Kansas, New Mexico, and Colorado. Migrants fleeing the Dust Bowl faced stiff competition for work, with African Americans being the first to lose their jobs and the last to be rehired. In the South, African American sharecroppers were evicted from their farms, and hundreds of thousands of people of Mexican ancestry were forced to leave the US. The dust storms added to the challenges faced by those living in the region.

Lesson 3: Two Presidents Respond

Objective 1

Contrast Hoover’s approach to the economic crisis with F. Roosevelt’s approach

Notes

Hoover initially took a hands-off approach towards the Great Depression, then adopted a volunteerism approach which ultimately failed due to lack of enforcement.
Hoover then changed course and used federal power to fight the depression, going against the localism approach and creating the Reconstruction Finance Corporation which gave billions of dollars in government loans to railroads, large businesses, and banks.
Some Americans turned to socialism, communism, or fascism during the depression, but many still believed in freedom.
Roosevelt won the election and pledged a "New Deal" which involved strong action by the federal government to put people to work and let farmers keep their land. This led to the passing of 15 major bills in the first 100 days, including relief, recovery, and reform efforts.
The New Deal included various programs and agencies such as the FDIC, SEC, AAA, TVA, CCC, FERA, NRA, and PWA. These initiatives aimed to stabilize the economy, create jobs, raise crop prices, regulate industries, and build infrastructure.
Eleanor Roosevelt played a strong role in politics and helped dissolve issues with veterans.

Summary

Hoover initially adopted a laissez-faire approach to combat the Great Depression, but later switched to other ideologies when this approach failed. He believed that the economy should recover naturally. Roosevelt, on the other hand, wanted the federal government to take strong action against the depression and created new departments and passed many bills. He regulated stock markets and opened up banks, among other things.

Objective 2

Describe the programs that were part of the first New Deal and their immediate effect on Americans’ lives.

Notes

Roosevelt's "New Deal" was aimed at addressing the Great Depression through strong federal action, with a focus on relief, recovery, and reform.
The New Deal created a range of new government programs and agencies to provide jobs, stimulate the economy, and stabilize key industries such as banking and agriculture.
Some of the most notable initiatives included the creation of the FDIC to restore trust in the banking system, the SEC to regulate the stock market, and the CCC to provide jobs in conservation work.
The New Deal also involved taking the US off the Gold Standard, which had both short-term benefits and long-term consequences.
Overall, the New Deal marked a significant shift in the role of the federal government in American life, setting a precedent for greater government intervention in times of economic crisis.
Eleanor Roosevelt played a significant role in the New Deal as a political figure and advocate for social justice, especially for marginalized groups such as women, minorities, and veterans.

Summary

After winning the election, Roosevelt launched the "New Deal" program to tackle the Great Depression, with a strong belief in federal government action. He aimed to create employment opportunities and allow farmers to retain their land. Roosevelt passed 15 significant bills in the first 100 days, focusing on relief, recovery, and reform. He closed banks, established the FDIC to ensure bank deposits up to 5k, which boosted public trust. He also created the SEC to regulate the stock market and took the US off the Gold Standard, which had a short-term positive impact but negative long-term effects. Roosevelt introduced several initiatives, such as the AAA to raise crop prices, TVA to manage floods and generate electricity, CCC, FERA, NRA, and PWA to offer relief, create jobs, and regulate.

Objective 3

Identify the New Deal’s opponents and their major criticisms.

Notes

Critics of the New Deal believed it was too radical and made the federal government too powerful. They argued that the government was telling businesses how to operate, spending a lot of money, and accumulating debt, which undermined free enterprise and individualism.
To defend their beliefs, critics created the American Liberty League, which was against government intervention in business and believed in limited government.
Critics of taking America off the Gold Standard argued that it would lead to increased inflation and devalue the dollar at extraordinary rates.
The Populist Movement saw themselves as spokespeople for poor Americans and provided contrasting ideas on how to run the government. They believed in taxing the rich and redistributing wealth to help the poor and working class.
The Populist Movement emerged during the late 1800s as a response to the growing power of big businesses and the concentration of wealth among a small group of individuals.
The Populist Movement also advocated for other reforms such as direct election of Senators, regulation of railroads, and the use of silver in currency.

Summary

Critics of the New Deal believed that it made the federal government too powerful by dictating how businesses should operate and spending a large amount of money that added to the national debt. They argued that this undermined the principles of free enterprise and individualism. The American Liberty League was established to defend against the policies of the New Deal. The Populist Movement proposed redistributing wealth by taxing the rich to support the poor. There were concerns that the decision to take the US off the Gold Standard would lead to a rise in inflation and devalue the dollar at an alarming rate.

Lesson 4: The New Deal Expands

Objective 1

Analyze ways that the New Deal promoted social and economic reform and its long-term effects

Notes

Roosevelt introduced a second wave of legislation to address long-term issues, including the creation of the WPA, which employed 8 million people and spent $11 billion improving highways, rivers/harbors, and promoting soil and water conservation. Critics argued that the Democratic Party was trying to buy supporters, and that the programs were expensive and the government used money they didn't have.
The Social Security Act established a pension system for retirees, unemployment insurance for workers who lost their jobs, insurance for people with work-related accidents, and aid for mothers and children in poverty and those with disabilities. It was funded by payroll taxes and is still in place today.
The Rural Electrification Administration (REA) loaned money to electric utilities to build power lines and bring electricity to rural areas. By 1960, 80% of American farms had electricity. The REA also created a subsidy for agriculture and developed water systems that supplied many people with water and prevented flooding.
These New Deal programs had significant long-term effects, such as reducing poverty, providing greater economic security for workers and retirees, and improving infrastructure in rural areas. However, they also faced criticism for being too costly and increasing government intervention in people's lives.
Social Security continues to be a major component of the US social safety net, providing financial support to millions of Americans in retirement or during times of need.
The New Deal's focus on public works programs and infrastructure investment set a precedent for later government initiatives aimed at stimulating the economy and promoting job creation.

Summary

\During the New Deal, Roosevelt introduced a second wave of legislation aimed at addressing long-term problems. The WPA employed 8 million people and spent $11 billion on infrastructure improvements, but faced criticism for being too expensive and perceived as the Democratic Party buying supporters. The Social Security Act created a pension system, unemployment insurance, insurance for work-related accidents, and aid for those in poverty and with disabilities, and was funded by payroll taxes. The Rural Electrification Administration brought electricity to rural areas and created subsidies for agriculture and water systems. These programs reduced poverty, provided economic security, and improved infrastructure, but also increased government intervention in people's lives. Social Security remains a major component of the US social safety net, and the New Deal's public works programs set a precedent for later government initiatives aimed at job creation and economic stimulus.

Objective 2

Explain how New Deal legislation affected the growth of organized labor

Notes

The New Deal saw a resurgence in union activity, driven in part by the National Labor Relations Act of 1935 (also known as the Wagner Act), which gave workers the right to collective bargaining and negotiate about hours, wages, and working conditions.
The Fair Labor Standards Act of 1938 established minimum wage and maximum hours, providing greater protections for workers.
The American Federation of Labor (AFL) represented skilled workers who joined trade or craft unions but made little effort to organize them. The Congress of Industrial Organizations (CIO) targeted lower-paid and ethnically diverse workers, leading to the creation of many new unions.
The Sit-down Strike of General Motors was a notable labor action during this period, in which workers refused to move until their demands were met. Police and state militia threatened to move them, but the workers held their ground for 44 days and eventually won union recognition. This strike and others contributed to the growth of unions during the New Deal era.

Summary

The New Deal saw a resurgence in union activity, which was largely driven by the National Labor Relations Act of 1935, or the Wagner Act, that gave workers the right to collective bargaining and negotiate for better wages, hours, and working conditions. The Fair Labor Standards Act of 1938 established minimum wage and maximum hours for workers. The American Federation of Labor represented skilled workers who joined trade or craft unions, while the Congress of Industrial Organizations targeted lower-paid and ethnically diverse workers, leading to the creation of many new unions. The Sit-down Strike of General Motors was a notable labor action during this period that contributed to the growth of unions, in which workers refused to move until their demands were met. Police and state militia threatened to move them, but the workers held their ground for 44 days and eventually won union recognition.

Objective 3

Evaluate the impact of Roosevelt’s plan to increase the number of U.S. Supreme Court justices on the course of the New Deal

Notes

After creating many programs, Roosevelt's work was shot down by the Supreme Court, causing shock in America.
Roosevelt called for adding up to 6 new justices to the Court, known as court packing, to increase support for the New Deal.
The move was criticized for trying to increase presidential power and upsetting the balance between branches of government.
The Court eventually swung in favor of the New Deal, causing Roosevelt to back off on court packing.
Roosevelt lost popularity and faced increased criticism, leading to the loss of seats in both the Senate and the House, as well as losing support from Southern Democrats.

Summary

President Roosevelt's New Deal programs faced significant opposition from the Supreme Court, resulting in several of them being struck down. In response, Roosevelt proposed "court packing," which was viewed as an attempt to increase presidential power and upset the balance of government branches. The Court eventually began to swing in favor of the New Deal, causing Roosevelt to back off on court packing. However, this resulted in the Court assuming a larger role in the federal government. Roosevelt's support began to decline due to his court packing proposal and misjudgment of unemployment and interest rates, causing his party to lose seats in the Senate and House and losing support from Southern Democrats.

Lesson 5: Effects of the New Deal

Objective 1

Identify the social and political contributions of Eleanor Roosevelt, Frances Perkins, and other women involved in New Deal programs

Notes

Eleanor Roosevelt transformed the role of First Lady and made numerous political, social, and economic contributions to American society.
Frances Perkins, the first female Cabinet member, played a leading role in establishing Social Security and the Fair Labor Standards Act.
Some New Deal programs reinforced traditional gender differences and did not fight to end gender discrimination in the workplace.
Molly Dewson, head of the Women's Division of the Democratic Party, observed that Eleanor Roosevelt provided women with an unprecedented access to the President.

Summary

The New Deal provided some women with the opportunity to increase their political influence and promote women's rights. Eleanor Roosevelt and Frances Perkins were key figures who made significant contributions to American society during this time. However, some New Deal programs still reinforced traditional gender differences, and Molly Dewson noted the unprecedented access that Eleanor Roosevelt provided for women to the President.

Objective 2

Explain how the New Deal expanded economic opportunities for racial and ethnic minorities

Notes

The New Deal brought fundamental changes to the nation, including changes to the role of the federal government in the economy and the relationship of the American people to their government.
Some New Deal programs, such as the Works Progress Administration (WPA), provided job opportunities to African Americans and other minorities.
African American leaders, such as Mary McLeod Bethune, played a significant role in advocating for the needs and interests of their communities during the New Deal era.
The New Deal did not fully address racial discrimination, and many programs continued to be segregated and unequal for African Americans.

Summary

The New Deal provided some job opportunities to African Americans and other minorities through programs like the WPA, and African American leaders like Mary McLeod Bethune played an important role in advocating for their communities. However, the New Deal did not fully address racial discrimination, and many programs continued to be segregated and unequal for African Americans.

Objective 3

Notes

The New Deal coalition united various groups, such as southern whites, northern blue-collar workers, poor midwestern farmers, and African Americans.
African Americans began to vote Democratic during the 1930s due to the efforts of Franklin and Eleanor Roosevelt.
Programs such as the CCC and WPA brought individuals of diverse backgrounds together, breaking down regional and ethnic prejudices.

Summary

The New Deal coalition brought together various groups and lessened social and ethnic divisions in American society. African Americans began to vote Democratic, and programs like the CCC and WPA facilitated intercultural interaction, reducing prejudices.

Objective 4

Notes

The New Deal increased the federal government's role in providing social welfare and regulating the economy.
Franklin D. Roosevelt became known for expanding the power of the presidency through his use of executive orders and radio broadcasts.
The New Deal's legacy is still debated among historians, with some arguing that it failed to bring about significant change and others praising it for laying the groundwork for modern social welfare programs.

Summary

The New Deal expanded the role of the federal government and the presidency in American society, with Franklin D. Roosevelt utilizing executive power to enact social welfare policies. Its long-term impact is still subject to debate among historians.

Lesson 6: Culture During the Depression

Objective 1

Explain how radio and movies related to the characteristics and issues of their times

Notes

Radio and movies were a means of escapism for Americans during the Great Depression.
Large radio networks and film companies dominated the entertainment industry during the 1930s.
Popular genres of movies included musicals, romantic comedies, and gangster films, while swing music was the most popular genre of music during the era.
Depression-era films reflected social issues such as the public's distrust of big business and government, while radio shows provided both entertainment and information.

Summary

Radio and movies provided Americans with an escape from the challenges of the Great Depression, with swing music and popular genres of movies dominating the entertainment industry. Depression-era films and radio shows also reflected social issues such as distrust of big business and government.

Objective 2

Explain the relationship between the New Deal and the arts

Notes

During the New Deal, the federal government provided funding for the arts for the first time in American history.
Programs such as the Federal Art Project, the Federal Writers' Project, and the Federal Theatre Project provided job opportunities for artists and writers.
The federal arts programs were criticized by some members of Congress for promoting radical values, but they set a precedent for further federal funding of the arts in the 1960s.

Summary

The New Deal provided funding for the arts for the first time in American history, with programs such as the Federal Art Project providing job opportunities for artists. Despite criticism from some members of Congress, the federal arts programs set a precedent for future federal funding of the arts.

Objective 3

Describe the major themes of literature in the Depression era

Notes

Many writers of the 1930s crafted novels featuring working-class heroes, seeing "ordinary Americans" as the best hope for a better day.
John Steinbeck's The Grapes of Wrath, which follows the fictional Joad family's struggles during the Great Depression, was the most famous novel of the era.
African American writers focused on the plight of blacks facing both the depression and continuing prejudice, while playwrights such as Lillian Hellman and Clifford Odets addressed socially conscious issues of the time.

Summary

Depression-era literature focused on the struggles of working-class heroes and the issues of the time, with John Steinbeck's The Grapes of Wrath becoming the most famous novel of the era. African American writers and playwrights such as Lillian Hellman and Clifford Odets also addressed socially conscious issues.