The Great Depression History 106 About the Great Depression October 1929 Stock market crash of 1929 ended roaring 20 s o Role of government in economics reinforced o 11 of the most prominent investors committed suicide Dust Bowl Happened to farming land sparked by drought Causes of the Great Depression Similar to Recession of 2008 Overproduction Farmers produced too much product Mal Distribution of Wealth Tariffs o 43 of stock market owned by 1 of population o Massive tariffs so many could not afford products o Farmers as well of consumers did not like tariffs o Circulation of dollars was low because of high tariff Low Regulation Low or no regulation of stock market o 30 of stock market was bought on credit Banking Practices not protecting consumers they were spending money on stock market Economic Indicators Stock prices went down unemployment went up about 25 Production slowed cut in half Banks closed Social Indicators Marriage rates dropped by 30 Birth rates dropped to 0 Crime went up murder rate tripled Responses to Great Depression Herbert Hoover Was blamed for the depression o Secretary of Commerce then elected as President in 1928 o He was willing to intervene in the great depression but people did not support him Bonus March Group of World War I veterans needed their bonus but he postponed it then the veterans marched to Washington Hoover sent current troops to disperse them Voluntary Cooperation met with business leaders to get them to help each other o National Credit Corporation businesses could pool money together Trickle down give money to large institutions rather than consumers Self Liquidating ventures build toll roads and dams to alleviate the depression Summary Government was too late but growing government role in US economy o Hoovervilles Shanties and immigrant ghettos Blamed Hoover FDR and the New Deal Franklin D Roosevelt was elected as president after Hoover Democratic Coalition Changed the voting block for the Democratic party African Americas Urban areas o He had to get the south vote and urban votes broad range o 3rd Democratic president in history Organizations made by New Deal o First Phase Relief and Immediate suffering Federal Emergency Relief Association Soup lines fed people National Recovery Association passed price fixing and incorporated trade unions Public Works Association Subways put people back to work roads Civilian Conservation Core helped young men and families paved roads Agriculture Adjustment Association fought against overproduction paid farmers not to farm Farm and Homeowner Mortgage Acts temporary help with paying mortgages Glass Steagal Act FDIC Insurance for people that would invest money in banks Security and Exchange Commission Fought the problem of buying on credit and set what banks would have to keep Tennessee Valley Authority built hydroelectric power plants o Second Phase Recovery and Reform Social Security Elderly would have a source of income temporary unemployment compensation WPA Works Progress Association made cities better helped people go back to work Crop Insurance farmers were not as vulnerable The use of the Radio allowed for Roosevelt to go to the homes of his people Fireside Chats Fair Labor Standards Act Restricted child labor minimum wage and overtime pay 44 hours is regular time taxation rose National Labor relation Act Roosevelt legalized collective bargaining o Increased Union membership Summary of FDR s Legislation o Stopped the crash and became very popular Social Reactions Socialism o Townsend Plan Retirement plan for the elderly 200 per month o Father Coughlin Talk show attacks against banks criticized against FDR popularity declined o Huey Long Governor of Louisiana steep income tax more socialist than FDR assassinated Conservative Backlash o Herbert Hoover one of the people who did not like FDR s policies o Supreme Court Packing Plan FDR wanted to add a mandatory retirement age and change number from 9 to 15 New Deal Summary Relieved suffering more confidence WWII ended Depression US Debt and Deficit Spending Democratic Coalition Growing size and role of US government ended Laizzire Fair World War II History 106 Origins of WWII Hitler comes to power in 1939 Veinmar Republic Democratic Structure of government of Germany after Kaiser Hitler reputed the Treaty of Versailles built up another army Germany was against the socialists but 1939 Russia socialist communist and Germany signed Nonaggression Pact Systematic extermination of Jews during the 1941 Hitler s Aggression and new Geopolitics o Appeasement Other countries were less eager to go to war so they gave Germany what they want annex the Chex republic o Blitzkrieg Lightning War using air power and tanks offensive warfare o September 1 1939 Germany over powered Poland Norway Denmark Netherlands and then France in 1940 US Isolationism o Merchants of Death Big bankers and armament companies who profited from WWI o Nye Committee and Neutrality Acts Went and investigated the banks and found that they were guilty of lobbying Nye Committee Senator Nye led this but started to blame Wilson and funding was cut Neutrality Acts US would keep out of all international affairs no loans no American traveling on foreign ships o Clergy wanted no part of the war this time they were embarrassed after WWI for believing rumors But this caused the dismissal of concentration camps Road to War o Destroyers for Bases British could borrow destroyer for bases in the Caribbean o Lend Lease Act Leasing program for all war items for Britain France and China o Pearl Harbor Attack December 7th of 1941 got US involved in war attacked because of US colonies in the Philippians Warrior Society Japanese beliefs that US was weak Germany ally of Japan also declared war on US Silenced the US Pacifists Turning Point of WWII Germany overrode Soviet Union even with the Nonaggression Pact in 1941 and lost most of his military power there during the winter Invasion of the Soviet Union weakened Germany turning point WWII Japanese Internment Camps o Japanese Immigrants were questioned for US loyalty Draft Initial US Defeats o Bataan Death March US and Pilipino troops were marched to POW camps treated badly o US made a effort towards Total War and Unconditional Surrender Germany First o Soviet Heavy Lifting Soviet wanted help fighting Germany o Bombing Raids Targeted Germany industries Flying Fortresses but many were destroyed by Germany Largely unsuccessful and lost many bombers o Enigma Code