Chapter 22 - Living in Hard Times PDF

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This chapter focus on the great depression, what FDR did to get the US out of the great depression, and the period right before the US joins WW2. Notes on Chapter 22...

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Chapter 22 - Living in Hard Times 22.1 The Great Crash of 1929 ➔ Stock Speculation - overly aggressive investment in the stock market; reeling on the fact that the stock market will always go up. ➔ Result: stocks are overvalued. Because stock goes up more people, buy stocks. Self fulling proficiency. ➔ Margin Buying - greed, borrowing money to invest with the assumption you will be able to pay back your loan with your anticipated profits. (investment plan similar ➔ American are getting more comfortable with debt. ➔ Black Tuesday - October 29,1929 start the stock market crash, a few big shots(rich people, who realize the stock market was overvalued) start selling of stocks which cause others to sell their stock. ➔ Complete reversal people want to sell stocks not buy stock ➔ Not just the market crashing, in 1930 60% of American families lived below the poverty line The Hoover Years ➔ Hoover ask for “voluntary collective action” - business leaders are asked to keep prices low and wages high, don’t fire employees. Tells banks to help other banks and people. Asks farmers to keep surplus off the market and keep prices high. ➔ Reconstruction Finance Corporation - provided funds to bank and railroads, keep them out of bankruptcy (sail out) ➔ Hawley-Smoot tariff - protective tariff (high trying to protect american industry. Disaster! Other countries respond with their own high tariffs, trade war result; american exports dies. ➔ Hoovervilles- shanty towns, homeless people who banded together in public spaces. Plywood house with roofs. Blamed hoover for their problems. ➔ Bonus army- World War 1 veterans march on DC protesting for their bonuses ( which wasn't due until 1945) They blame the government for depression and they are dispersed by Douglas MacArthur. ➔ Election of 1932- Franklin D Roosevelt are FDR is elected president and Promises a new deal for the American people. ➔ Fireside Chats- connected directly to the American people by radio. delivered information and comforted the public.

➔ FDR outlines an ambitious agenda for his first 100 days. ➔ The Brain Trust- FDR closed Circle of advisors which were the architects of the new deal ( Harvard Grads) ★ The key to a ending the depression was creation of jobs. ➔ Emergency Banking Act - declared a “bank holiday” which required every bank to be closed and inspected by the government. Banks could only be if it was sound. Want to restore confidence in the banks. ➔ Glass-Steagall act- created the FDIC (federal deposit insurance corporation) Guarantees your bank deposit. ➔ Civilian Conservation Corps (CCC) - employed young men in conservation projects (planting trees or building parks) ➔ Federal emergency relief Act(FERA) - provided direct government money are grant to those without income. ➔ Agricultural adjustment act (AAA) - raised Farm prices by strictly regulating the surplus of crops. ➔ Tennessee Valley Authority (TVA) - built dams on the Tennessee River to control flooding, bring electricity to rural areas, and make jobs. ➔ Public Works Administration (PWA) - committed two large-scale public construction project. (bridges, highway, etc). ➔ The Indian New Deal - reversal of the Dawes Act series of changes that transformed government's Indian policies by recognizing tribal rites to hold reservation land ( tribes can adopt a constitution end dedicate tribal membership) ➔ African Americans are especially hard hit by the Great Depression, first to lose jobs (Great Migration). ➔ “ Black Cabinet” - FDR's informal group of black advisors advocating for African Americans. The Dust Bowl When the depression hits farmers were already in trouble due to enormous Surplus. facing foreclosure, debt, end heavy back taxes (not paying taxes) ( Shay's Rebellion) Then the Great Depression happens By the mid-1930s us is experiencing a historic drought, Dust Bowl. Dust Bowl - happen during the great depression in the great plains, when a great drought literally blows away fertile soil. Due to this farmers moved to California.

● Migrant Farmers - farmers who follow the work. ● Okies - negative name associated with farmers moving to California that assumed they were all from Oklahoma (majority where) ● Wagner Act - expand rights of union members by allowing them to strike, collectively bargain, and to join a union without fear of getting fired. ● American Federation of Labor (AFL) - national union composed of skilled craftsmen (harder to replace). Some AFL members expand and create new unions. ● Congress of Industrial Organization (CIC) - comprised of both unskilled and skilled workers. Labor unrest increases. ● Sit down strikes - happened on the factory floor, prevent scabs due by mostly unskilled workers. Critics of the New Deal ● American Liberty League - conservative group (Republican laissez-faire) new deal is socialist. ○ Share Our Wealth Society- leader Huey Long (unapologetically socialist) the new deal doesn’t go far enough. 3 R’s - Relief, Recovery, Reform ● The First New Deal - first 2yrs of FDR presidency focus was on Relief and Recovery, ex) help the people starving, putting people back to work, and fixing banking system. ● The Second New Deal - after first 2yrs focus on Reform, long term financial security. ● Social Security Act - established a system of federal old age petitions, retirement wasn’t a thing before this and it also help bring down unemployment since all of these old people aren’t looking for work. Past 3 president (R) b/c of this the Supreme Court is very conservative ● The Supreme Court rejects a lot of FDR new deal policies. He proposes to “pack the courts” - constitution nevers says how many judges their can be, so FDR wants to put more judges who are more liberal. Fails the congress at the time was in total cooperation with FDR however this is the one significant act where congress stands up to FDR and doesn’t allow him to “pack the courts”. New Deal didn’t end the Great Depression WW2 did.

22.3 The Roots of World War 2 The Treaty of Versailles ends the WW1 and makes Germany to pay enormous reputation (to the victor goes the spoils). Germany capital militarily,politically,economically, and socially Then the Great Depression happens. Adolf Hitler is able to rise to power promising that he will make Germany great again Rebuild military and starts to expand. Same time Japan an island nation lacks food and national resources for it growing industrialized society. Expansion is key to its survival. They start to build an Empire start with China (1932) goes up and down the Pacific rim of Asia. League of Nation is powerless b/c in no small part that the US didn’t join and that European have no stomach for war just fought one. ● Munich Conference (1938) - leaders brag they have “achieved peace in our time”. Germany agrees to peace as long as it can keep the land already invaded. ● Appeasement - giving in to an aggressor in order to keep peace....