The 1930s

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The 1930s

• The Great Depression

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The Stock Market Crash

• Black Thursday October 24,1929
• Interest rates up
• Investors sold shares
• Prices of stocks plunged
• Black Tuesday October 29,1929
• Prices dropped to an all-time low
• Investors sold over 16 million shares of stock
• To cover loans, investor HAD TO sell stock for
  huge loses.

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Roaring 20s vs Depression
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The Depression Begins

• Late 1929 1933 the US economy sank
• GNP in 1929 103 billion 1933 lt56 billion
• Incomes were cut in ½
• Factories, RRs, businesses were shut down
• Millions were unemployed
• 1930 1932 over 5000 banks failed
• No incoming funds
• People panicked and withdrew their savings
• Customers lost life-savings

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What Caused the Great Depression?

• Global Economic Downturn
• US put high tariff on imported goods
• Smoot-Hawley Tariff of 1930
• Debt economic practices of the 20s created
  long-term problems
• Credit
• Interest rates increased
• Margin Buying (see next slide)

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Margin Buying

• Margin buying when a stock buyer pays for a
  stock with a down payment and takes a loan out
  for the remainder of the price
• The buyer hopes to sell the stock when it
  increases in price
• The buyer will then pay back the loan and make
  money as well

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• Unequal Distribution of Wealth
• The richest 1 of the populations income grew by
  63, the poorest 93s decreased by 4
• Majority had no buying power
• Overproduction
• Natural business cycle creates recession,
  depression

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The BusinessCycle
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The 1930s

• Effects of the Great Depression

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Employment Trends

1. ¼ of the work force lost their jobs.
2. Wages fell dramatically
3. Immigration to te US decreased
4. Blacks suffered first 25-40 of Af Ams had no
   jobs by 1933
5. The of women in the workforce increased

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Life in the City

• Federal Government did little Aid came from
• Local governments
• Charitable organizations (Red Cross)
• Neighbors
• Food Shortages
• Breadlines
• By 1932 1 of 5 kids in NYC were malnourished
• Long-term effects stunted growth, weak bones,
  dental problems

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Photograph of a Breadline in New York City
During the Great Depression                    
                                                  
                                                  
                                                  
             Depression Breadlines long line of
people waiting to be fed New York City in the
absence of substantial government relief programs
during 1932, free food was distributed with
private funds in some urban centers to large
numbers of the unemployed. (Circa February 1932)
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• Homelessness
• Shantytowns were built outside city
• Blaming Hoover, they became known as
  Hoovervilles and newspapers they slept under
  were Hoover Blankets

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Life on the Farm

• Farmers of the Midwest had SURPLUS
• Crops were rotting in the fields
• Had to slaughter cattle because could afford to
  feed
• Banks foreclosed many farms
• Neighbors would help at auctions they would buy
  equipment at very low prices (.25 for a plow)

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• Tenant farmers from the South suffered from lack
  of food b/c poor soils, no
• Migrant workers in the SW were forced to return
  to Mexico
• In the 1930s, 500,000 returned to Mexico
• If stayed faced severe discrimination, poor
  working conditions

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Depressions Impact (in billions)
Consumer Spending 1929 1933
Food 19.5 11.5
Automobiles 2.6 0.8
Value of Shares on NYSE 89.0 19.0
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Depressions Impact on Banks
Banking Industry 1929 1933
of Banks 25,568 14,771
Volume of Stocks Sold 1.1 Billion 0.65 Billion
Personal Corporate Savings 15.3 Billion 2.3 Billion
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The 1930s

• Daily Life

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Family Life

• Some families united
• Shared food and
• Doubled up in homes
• Young adults moved back in with parents
• Other families broke apart
• Divorce rates ?
• Birth rates ?
• Marriages were delayed
• Suicide rate ? (28 more in 32 than 29)
• Abandonment ? (1.5 million were left along)

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• Women faced greater challenges of keeping the
  family together
• Relied on old crafts
• Took jobs outside the home
• Daily chores were a challenge

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Popular Culture

• Inexpensive pastimes were popular
• Movies
• Survival was the theme gangster, women were
  often the main characters
• Musicals
• Comedians Marx Brothers
• Cartoons Mickey Mouse and Donald Duck

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• Radio was free and at home
• of ? 12 28 million in the 30s
• Shows were broadcasts (Orphan Annie)
• Literature
• Magazines, comic strips presented heroes
  Tarzan, Superman
• Readers Digest was the 1 selling mag.
• Novels were escapist and reality
• Baseball open to page 681 of OLD BOOK

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The 1930s

• Hoovers Failures

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Hoovers Philosophy

• Did not believe in direct federal relief. It
  created
• Vast bureaucracy
• Large federal budget deficit
• Low self-respect
• Rugged Individualism relief comes from
  individual effort and private enterprise
• Why it failed? Put the burden on local
  communities and private enterprises
• 3. Committee for Unemployment Relief (1930)
• Why it failed? Just urged Americans to
  donate to charity

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Boosting the Economy

• Hoover did have a more active role in stimulating
  the gvt than the Republican presidents
• White House Conference
• Mtg of top business, labor, and political
  leaders Hoover asked them to maintain
  employment, wages
• Gave optimistic statements
• Why it failed? All talk, no change

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Hoovers Programs

• 800 million Public Works Programs
• Hoover Dam
• stimulate economy
• make jobs
• Programs to help Farmers
• Agricultural Marketing Act of 1929
• Why it failed? Farmers refused to produce lt
• Home Loan Bank Act of 32

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• The Reconstruction Finance Corporation (RFC) Feb
  1932
• Lent to RRs, insurance companies, banks
• Goal stop bank failures, create jobs
• Why it failed? Ignored small
  bussiness, Too little too late

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Strikes

• Rural Violence
• Used violence to scare away foreclosure officials
• Destroyed crops and blocked
• Bonus Army
• WWI veterans went to Washington, D.C. to support
  the Bonus Bill and get early
• Congress vetoed the bill
• Men stayed
• Army was sent in to remove veterans
• The nations hatred for Hoover increased

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The 1930s

• The New Deal Restoring the Hope

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1932 Election
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FDRs leadership was encouraging

1. Promised government activism
2. He had an optimistic personality when delivering
   his 16 fireside chats
3. gt 450,000 letters were sent to the White House
   w/in weeks an average of 5-8000 /week throughout
   the 30s.

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Hundred Days

1. Immediately after taking office FDR called
   Congress into session.
2. Over the next 100 days they passed 15 pieces of
   legislation.

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1st Concern The Banking Crisis

1. March 6, 1933, FDR declared a bank holiday
2. The Emergency Banking Act, March 9
3. Federal Deposit Insurance Corp., June 1933

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Farmers

1. Farm Credit Administration, March 28
2. Home Owners Loan Corp. (HOLC)

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Unemployment

1. Federal Emergency Relief Administration (FERA),
   May 1933
2. Civil Works Administration (CWA)
3. Civilian Conservation Corps (CCC), 1933

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Economic Recovery

• National Industrial Act (NIRA)
• Public Works Administration (PWA)
• National Recovery Administration (NRA)
• Tennessee Valley Authority (TVA), May 1933

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1936 Election
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FDRs New Deal

• 1st New Deal Program (1933 1934)
• Tennessee Valley Authority (TVA)
• Public Works Administration (PWA)
• Securities and Exchange Commission (SEC)
• 2nd New Deal Program (1935 1938)
• Works Progress Administration (WPA)
• Social Security Act

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Legacy of the New Deal

1. Expanded the government
2. US became a welfare state (take care of the
   people)
3. Saw poverty as an economic problem
4. Supported the Arts

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The 1930s

• Militarism in Japan

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Japan After WWI

• Expanded territory
• East Asia Korea, Taiwan
• China Twenty-One Demands
• Germanys Pacific Islands north of the Equator
• Third largest navy in the world
• Bitter toward the West
• Felt unequal.
• 1924 - U.S. banned Japanese immigration.
• The West did not support Japans policy in China.

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Social Political Tensions Rise

• Population Explosion
• Rapid industrial growth created gt need for raw
  materials forced to look elsewhere.
• Social and political changes bring problems.
• Working class more important
• Labor unions increased in membership, power
• Urban middle class grew.
• Western influences become significant.
• need for more and better education.
• 1925 universal male suffrage increased voting
  population (3-14 million)

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• Political weakness becomes evident.
• Power nobles and industrialists.
• Hirohito had military leaders who were against
  democratic reforms.
• Antidemocratic nationalists grew in strength in
  30s
• Prime Minister Hamaguchi was assassinated in Nov.
  1930.
• Workers and farmers began looking toward military
  leaders for order.
• Militarism in Daily Life
• Supporters of the military opposed Western
  influences
• Favored traditional Japanese practices.
• Young children learned military drills in schools.

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Military Expansion

• Sept. 1931 Japanese military invade Manchuria w/o
  government approval.
• In the 30s, the military used violence against
  the government.
• 1932 Assassinated a prime minister.
• 1936 Army revolt that failed.
• By 1937 the army and government had become one.
• Fearing he would lose his power, Hiroshito gave
  no strong opposition.
• The goal of the military leaders was to conquer
  all of Asia

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The 1930s

• Rise of Fascist Italy

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Totalitarianism

1. Goal total control over every aspect of
   citizens lives
2. Individual was seen as a servant to the state
   with few personal freedoms
3. Used propaganda in books, radio, films, the arts,
   and schools to promote

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The Rise of Fascism in Italy

• Nationalists were displeased
• Italy was not given territory from Central
  Powers.
• No work for returning veterans.
• Workers went on strike or took over factories.
• Those in power were terrified
• Peasants seized the land, inspired by the Russian
  Revolution.
• Gvt split into factions and was powerless

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• The Rise of Benito Mussolini
• Working-class background
• Was a journalist when younger, who supported
  Socialism
• During WWI he became a nationalist.
• In 1919 he form the Fascist Party.

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nito/
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• Political System of Fascism
• Glorifies the state at all costs, even war.
• Authoritarian government that is NOT communist
• Antidemocratic
• Aggressive nationalism
• Gives the state absolute authority.
• Defends private property and the class structure.

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4. Compared to Communism

• Similarities
• Flourished in hard economic times by promoting
  social change
• Dictators, part elite claim to rule in the name
  of national interest

• Difference
• Comms want world revolution while fascists pursue
  nationalist goals
• Communists won support of working class fascists
  of business leaders, wealthy landowners, the
  lower class

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5. Appeal of

1. Promised a strong stable government
2. Revived national pride
3. Projected a sense of power and confidence at a
   time of disorder, despair

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Mussolinis Road to Power

• Conditions got worse after WWI.
• Mussolini a little something for everyone.
  He promised
• Landowners ? protect private property.
• Workers ? full employment, workers benefits.
• Nationalists ? to restore Italy to its former
  greatness.
• Blackshirts used attacks against opponents and
  drove them from office, starting in 22.
• Oct. 1922 the Blackshirts seized Rome w/ no
  protest from King Victor Emmanuel II
• The cabinet resigned and Mussolini was named
  Prime Minister.

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Mussolinis Dictatorship

• Ended democratic rule
• Established a corporate state (representation w/
  industry, not political parties)
• Banned non-Fascist parties.
• Syndicates - corporations of workers and
  employers that sent
  representatives to a
  legislature in Rome to set policies.
• Strengthened Mussolinis power.
• Opposition was persecuted
• Successes
• Built up the military, ending unemployment
• Rekindled patriotism and nationalism
• Used all economic and human resources to
• rebuild Italy.

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Totalitarianism

• True or False?

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The individual is seen as a servant of the state
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The individuals only concern is providing for
him/herself.
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Art is used to promote the government.
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Films were used to promote the government.
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Education was free of political teachings.
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This type of government grew out of WWI.
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Western democracies supported totalitarianism.
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Democratic governments used this type of
government during WWI.
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Germany Upset with Treaty of Versailles

• Limited the size of army
• Required a democratic government
• Reparations - 35 billion
• French occupation of the Rhur Valley in 1923
• Inflation

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Weimar Republic

• Few believed in democracy
• 1919 voted on a national assembly
• Weimar Republic 1919 1933
• 1920 nationalist army tried to overthrow
• Felt betrayed
• Suppressed but opposition continued

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Rise of Nazism

1. National Socialist Workers party (Nazi)
2. Adolf Hitler
3. Brownshirts private army of veterans and street
   thugs
4. 1923 tried to lead a revoltuion but failed
5. Arrested
6. Mein Kampf blamed Jews, Communists Master Race
7. Depression of 1929 made him popular
8. 1933 became prime minister (Legally)

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Hitler in Power

• Goal Totalitarian state
• Reichstag burned b4 elections Hitler blamed
  communists
• Nazi-dominated Reichstag voted Hitler emergency
  powers to deal w/ Communist threat
• Crushed opposition
• Political parties banned
• Constitutional rights ended
• Government took over industry, churches
• Attacks on Jews
• 1935 Nuremberg Laws
• Kristallnacht
• Night of Long Knives

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The Third Reich

• Now had complete power der Fuhrer
• His government Third Reich
• Restored military strength
• Controlled the arts and intellectuals many left
• Sigmund Freud
• Albert Einstein
• Youth organizations