Black Thursday and the Great Depression

Black Thursday and the Onset of the Great Depression

• The stock market experienced rapid growth throughout the 1920s, leading to an economic boom driven by increased investment.
• The stock market value increased from $27 billion in 1925 to $87 billion by 1929.
• Individuals engaged in margin buying, using borrowed money to purchase stocks, which increased financial risk.
• Overproduction in industries, coupled with stagnant wages, led to surplus goods and decreased consumer demand.
• Economic struggles in post-WWI Europe reduced demand for U.S. exports, negatively affecting the U.S. economy.
• The Federal Reserve increased interest rates to curb risky stock buying, but speculators continued borrowing at high rates.
• "Black Thursday," October 24, 1929, marked the stock market crash as stock prices plummeted due to lack of buyers.
• Overproduction exceeded consumer purchasing power, leading to economic imbalances.
• The U.S. economy suffered as a result of the collapse of the European economy.
• The agricultural sector struggled with low farm prices after World War I.
• Between 1929 and 1932, the Gross National Product (GNP) and farm prices decreased by 50-60%.
• Around 5,500 banks failed, and 13 million people became unemployed by 1933.
• President Hoover initially encouraged businesses to maintain wages and employment levels.
• The Emergency Committee for Employment was established in 1930 to coordinate relief efforts, but it had limited success.
• The Reconstruction Finance Corporation (1932) was created to provide financial aid to struggling banks and insurance companies.
• "Hoovervilles," makeshift homes built by homeless people, became common due to widespread poverty.
• The Farmers’ Holiday Association attempted to raise prices by withholding grain and livestock from the market.
• WWI veterans, known as the Bonus Army, marched on Washington to demand early payment of their war bonuses.
• Franklin D. Roosevelt (FDR) and the Democratic Party capitalized on Hoover’s unpopularity during the Depression.
• FDR promised a "New Deal" and won the 1932 election in a landslide victory against Hoover.
• Margin buying involved borrowing money to invest in stocks.
• The Federal Reserve raised interest rates to slow down stock trading.
• The Great Depression impacted nearly all sectors, leading to business failures and extensive unemployment.
• The stock market boom of the 1920s was fueled by risky investments.
• The Great Depression was triggered by falling stock prices in 1929.
• Hoover’s policies were ineffective, leading to FDR's election and the promise of the New Deal in 1932.

The New Deal Takes Shape, 1933-1935

• Despite New Deal programs, the Great Depression persisted, leading to criticism from both the right and left.
• Conservative critics believed FDR's policies overextended federal power and undermined the free market.
• The National Recovery Administration (NRA) faced criticism from business owners for being too restrictive.
• Critics on the left argued FDR did not do enough to redistribute wealth or aid the poor.
• Father Charles Coughlin, a radio commentator, initially supported FDR but later criticized him.
• Coughlin called for nationalizing banks and issuing a national currency.
• Dr. Francis Townsend proposed the Townsend Plan, granting $200 per month to Americans over 60, requiring them to spend it within 30 days.
• Huey Long advocated the "Share Our Wealth" plan, taxing the wealthy to provide a guaranteed annual income and home ownership.
• Roosevelt maintained a broad coalition by adjusting policies and focusing on immediate relief and long-term reforms.
• Roosevelt pushed for additional legislation to address the needs of the American people amid economic challenges.
• The 1934-1935 period was crucial for the New Deal’s development, setting the stage for more reforms.

The New Deal Changes Course, 1935-1936

• FDR's 1935 State of the Union address outlined the Second New Deal, which expanded the government’s role in the economy.
• Expanding public works programs was a key component of the Second New Deal.
• Assistance for the rural poor was included in the Second New Deal.
• Support for organized labor was included in the Second New Deal.
• Benefits for retired workers became a key component of the Second New Deal.
• More strict business regulations were included in the Second New Deal.
• Higher taxes on the wealthy became a key component of the Second New Deal.
• The Emergency Relief Appropriation Act was passed due to high unemployment in 1935.
• The Works Progress Administration (WPA) employed over 8 million Americans in infrastructure and artistic projects.
• The National Youth Administration (NYA) provided job training and part-time work for unemployed youth.
• The Public Works Administration (PWA) oversaw over 34,000 construction projects.
• Relief programs caused large federal budget deficits due to government spending exceeding tax revenue.
• The focus of the second phase of the New Deal was on assisting workers, farmers, and disadvantaged groups.
• The Resettlement Administration aided poor farmers and Dust Bowl migrants in relocating to more productive areas.
• The Rural Electrification Administration (REA) provided low-interest loans to extend electricity to rural areas.
• The Soil Conservation Act encouraged farmers to use soil-conserving practices after the AAA was declared unconstitutional.
• The National Labor Relations Act (Wagner Act) guaranteed workers the right to collective bargaining.
• Closed shops, where employers only hire union members, were allowed by the Wagner Act.
• Blacklisting union organizers was outlawed by the Wagner Act.
• The National Labor Relations Board (NLRB) was established to supervise labor disputes and protect workers' rights.
• The Banking Act of 1935 strengthened the Federal Reserve Board’s control over monetary policy.
• The Public Utilities Holding Company Act targeted and regulated monopolies controlling public utilities.
• The Wealth Tax Act of 1935 introduced higher taxes on the wealthy, with a maximum rate of 75% on incomes above $5 million.
• The Social Security Act of 1935 established old-age pensions, unemployment benefits, and aid to widows, orphans, and the disabled.
• FDR won the 1936 election in a landslide, gaining support from labor unions, farmers, urban dwellers, and African Americans.
• The Civilian Conservation Corps (CCC) planted trees, built trails, and prevented soil erosion.
• The Soil Conservation Service promoted contour plowing and crop rotation.
• The Taylor Grazing Act (1934) restricted grazing on public lands to prevent soil erosion.
• 160 new wildlife refuges were founded during the New Deal.
• The National Resources Planning Board promoted sustainable management of resources.
• The Second New Deal focused on social justice concerns like unemployment, poverty, and workers' rights.
• Programs like the WPA and the National Labor Relations Act characterized the Second New Deal.
• The Social Security Act established the foundation for America’s modern welfare state.

The New Deal's End Stage, 1937-1939

• The Supreme Court challenged FDR’s New Deal agenda by invalidating the NRA and the AAA.
• FDR proposed a plan to "pack" the Supreme Court by adding justices for each member over 70.
• FDR's court-packing plan was criticized and ultimately rejected.
• In 1937 the Court upheld the Wagner Act and a state minimum wage law.
• The economy experienced a downturn in 1937, known as the Roosevelt Recession.
• The Roosevelt Recession was caused by reduced consumer income and contractionary monetary policy.
• FDR initially cut back on New Deal relief programs, then reversed course and authorized new spending.
• The Farm Security Administration (FSA) provided low-interest loans to tenant farmers and sharecroppers.
• The FSA operated camps providing shelter and medical services to migrant workers.
• The FSA hired photographers to document the lives of migrant workers and Dust Bowl families.
• The Housing Act of 1937 allocated $500 million for urban slum clearance and public housing construction.
• The Fair Labor Standards Act of 1938 banned child labor, established a minimum wage, and set a 40-hour workweek.
• The Agricultural Adjustment Act of 1938 provided loans to farmers and stored surplus crops to stabilize prices.
• Opposition to the New Deal grew, particularly from Republicans and conservative Democrats.
• The New Deal's focus shifted to foreign affairs due to the rise of fascism in Europe and militarism in Japan.
• The court-packing plan failed, but the Supreme Court eventually upheld New Deal measures.
• The Roosevelt Recession of 1937-1938 was caused by fiscal policies and reduced government spending.
• Final New Deal programs addressed social issues like labor rights, poverty, and housing.
• Growing opposition slowed the New Deal's momentum, shifting FDR's focus to international concerns.

Social Change and Social Action in the 1930s

• The Great Depression had widespread psychological and social effects on American society.
• People took any available jobs, often below their skill level.
• Women faced pressure to leave their jobs to make room for men, worsening their economic situation.
• The birth rate fell and the divorce rate spiked during the Depression.
• Families struggled financially, with many losing their savings in bank failures.
• High school enrollment increased due to a lack of job opportunities.
• Families returned to simpler skills and less costly recreation due to economic strain.
• Minorities, already impoverished, were disproportionately affected.
• Significant strides were made in the unionization of industrial workers.
• The Wagner Act (1935) guaranteed workers' rights to organize.
• The American Federation of Labor (AFL) started gaining momentum.
• The Committee for Industrial Organization (CIO) formed within the AFL, advocating for all workers regardless of race, gender, or skill level.
• The United Steelworkers organized a strike in U.S. Steel in 1937, leading to union recognition and improved conditions.
• Walter Reuther led a sit-down strike at General Motors (GM), resulting in the recognition of the United Automobile Workers (UAW).
• The Republic Steel Company was forced to recognize the CIO union after a deadly confrontation.
• The United Textile Workers strike of 1934 failed due to widespread arrests and violence.
• Some industries, like Ford, resisted unionization.
• The CIO focused on unskilled workers, women, and minorities.
• Roosevelt's administration remained neutral in labor disputes, aiding unionization efforts.
• African Americans (AA) and Hispanic Americans resisted racism and exploitation.
• AA sharecroppers and tenant farmers were vulnerable to eviction, and workplace racism persisted.
• The NAACP fought for voting rights, against lynching, and segregation.
• The Urban League organized boycotts against discriminatory employment practices.
• Economic hardship and racial inequality led to a violent riot in Harlem in 1935.
• California restricted land ownership by Japanese Americans and limited immigration from the Philippines.
• Mexican Americans faced hostility due to job competition, leading to returns to Mexico or settlement in southwestern barrios.
• The Confederación de Uniones de Campesinos y Obreros Mexicanos (1933) emerged from a strike by grape workers.
• The workers gained pay increases through strikes despite company opposition.
• Native Americans faced poverty and discrimination, but the New Deal included reforms.
• In 1930, about 330,000 Native Americans lived in poverty with limited education and healthcare.
• The Dawes Severalty Act led to the takeover of two-thirds of Native American land by white settlers.
• The Indian Reorganization Act of 1934 restored tribal sovereignty and encouraged self-governance.
• Tribal lands that had been taken were restored.
• Tribal councils were encouraged along with Indian schools promoting Native American history and handicrafts.
• The Civilian Conservation Corps (CCC) built schools, hospitals, and irrigation systems on reservations.

The American Cultural Scene in the 1930s

• People sought solace in entertainment like movies and radio during the Great Depression.
• Movies offered escapism and lightened the harsh realities of the Depression.
• Films provided emotional detachment and uplifting stories or characters.
• America retained its democratic values, reflected in the cultural scene by the end of the 1930s.
• The Popular Front was a political and cultural movement against fascism.
• The Popular Front raised awareness about the global political landscape.
• American culture was influenced by New Deal policies in the late 1930s.
• There was renewed interest in American history, folk art, and literature.
• Streamlining was a design style influenced by airplanes.
• Sleek curves were introduced into product design as a marketing tool.
• The 1935 World's Fair showcased streamlining and a better future.
• The GM Futurama Exhibit at the World’s Fair envisioned a technologically advanced future.
• The World’s Fair celebrated innovation and the belief in technological progress.
• Hope and Anxiety were both present during the cultural trends of the 1930s.
• Hope for the future and prosperity was present for many.