Formal Writing and the Great Depression

• These notes cover key topics related to the Great Depression and the New Deal era.

Hoover: Background and 1928 Election

• Republican candidate in 1928.
• Orphaned, went to Stanford, majored in mining and engineering, and became wealthy.
• Entered politics because of humanitarian work in World War I to assist Europe.
• Served as Secretary of Commerce and was the third Republican president in a row.
• Hoover's opponent in the 1928 election was Al Smith (Democrat, Catholic) of New York.
• Hoover won the 1928 election by a landslide.
• Believed that businesses should be left alone.
• Was opposed to giving direct relief.
• Believed the federal government would have to intervene.

Al Smith

• Governor of New York.
• A Democrat, Catholic, and outspoken.
• Lost the election when he ran against Hoover.

Bonus Army

• Groups protested in D.C. because of the federal government's lack of action.
• World War I veterans were promised a bonus for their service but didn't receive it.
• Veterans set up a tent city near the White House.
• Hoover called in the U.S. Army to take down the city, leading to injuries.
• The Bonus Army incident ruined Hoover's reputation.

Smoot-Hawley Tariff Act

• Raised tariffs on 20,000 imported goods, leading to retaliation from major trading partners.
• Other countries also imposed tariffs.
• Reduced U.S. trade (imports/exports) by more than 50%.
• Hoover supported the Act.

Stock Market Crash

• Agriculture was not doing well.
• The stock market increased, but there were few regulations and profits were on paper, not reflecting reality.
• There was not enough money to back the stock increases.
• Issue arose when people began to take stocks out.
• In October 1929, foreign investors began to sell stocks, fearing the stock market did not have enough money.
• Bankers attempted to stabilize the market by injecting funds, they then withdrew funds, and the market crashed.
• People who bought on margins were the ones who suffered, as they had to pay back borrowed money plus interest.
• Black Tuesday: October 29th, 16,410,030 stocks were sold in a single day.
• Four million Americans became unemployed.
• Hoover thought the economy became stabilized, but more than 12 million Americans were unemployed, banks collapsed, and 25% of the labor force was out of work.

Effects on Families

• The men who were the breadwinners were unemployed, feeling like failures
• Families doubled up and rented out rooms to pay rent.
• People developed cheap habits.
• Relief programs were not open to Black individuals and families.
• High school graduation rates increased because teens stayed in school due to the lack of work for adults.
• Marriage rates decreased but then increased.
• Separation rates increased.
• Fertility rates declined as contraception became legal.
• Women's employment was restricted to bring men back into the workforce.
• The norm was that women belonged in the home.
• Black women had pink-collar employment " in homes as maids, nannies, and cooks, but the job pool shrank.
• White women took these jobs over Black women.

FDR: Background and Fireside Chats

• Very wealthy, attended Harvard and Columbia Law School.
• Served as NY State Senator, Secretary of the Navy, and Governor of NY.
• Had polio.
• Fireside Chats involved speaking to the American people directly through the radio.

First One Hundred Days & New Deal

• Focused on helping banks, agriculture, and civilians through the First New Deal.
• The goal was to stabilize the banks.
• FDR closed all banks for 4 days.
• Banks either reopened in time, stabilized, and successful or they never reopened.
• The New Deal consisted of programs, projects, and reforms to stabilize the economy in the 1930s.
• New Deal was intended to create programs that would lead to relief, recovery, and reform.
• The New Deal aimed to stabilize banks, aid agriculture, and alleviate unemployment.

Emergency Banking Act

• Allowed the federal government to bail out large banks by supplying an unlimited amount of currency to stable banks, known as "A banks".

Federal Deposit Insurance Corporation (FDIC)

• Insures individual deposits up to $5,000.
• Replaced the Emergency Banking Act.
• If banks collapse, the federal government will ensure the money.

Agricultural Adjustment Act (AAA)

• Placed production limits on domestic crops to increase demand and prices.
• Large landowners received the money, while sharecroppers and tenant farmers did not.
• The AAA was found unconstitutional.
• Production fell, prices rose, and farmers become happy.

Public Works Administration (PWA)

• Led by Harold Ickes.
• Built hospitals, schools, and courthouses.
• The federal government invested $6 million into private companies and worker hires.
• Allowed businesses to be the employers.

Civilian Conservation Corps (CCC)

• Combined work relief with the preservation of natural resources.
• Employed young men in unskilled jobs, such as building infrastructure.
• Funded by the government.

National Labor Relations Act

• Allowed workers the right to organize labor unions, engage in collective bargaining, and strike.

Tennessee Valley Authority (TVA)

• Electrified the rural Southeast.
• Still present today.
• Addressed challenges of living in the area.
• Refused to hire Black workers.

Social Security Act of 1935

• Promised economic security to the elderly, sick, disabled, and poor.
• Federal health insurance was not included in this act.
• Landmark act in American social legislation.

National Industrial Recovery Act

• Allowed for the creation of public work programs.
• Government tried to create employment opportunities.
• CCC, CWA, PWA, WPA, TVA were not overall successful.
• Private industry worked better.

National Youth Administration

• Part of the Works Progress Administration.
• Prevented high school and college students from dropping out.
• Employed young people after school hours.
• Followed Eleanor Roosevelt's equality with Black Americans.
• 10% of the budget was from Black youth.

Gold Standard

• The dollar bill was based on the gold standard.
• Roosevelt separated the U.S. from the gold standard.
• The business sector used it as a security blanket.

Liberty League

• Anti-New Deal party, including Al Smith.
• Looked to support and finance candidates that would run against the New Deal.

Business Response/Concerns to FDR/New Deal

• People had faith in FDR, but businesses opposed because money was not being given to them.
• Felt FDR was leaning towards socialism.
• Not happy with unions and minimum wage.
• Unemployment high.

Communist Party Response/Concerns to FDR/New Deal

• Felt FDR wasn't' doing enough for the poor.
• New Deal was not for helping poverty and to keep the economically oppressed at bay.

Al Landon

• Republican candidate against FDR in 1936, lost by a landslide.

Huey Long

• Governor of Louisiana.
• Democrat that was for socialism.
• "Share the Wealth" program, redistribution of wealth, and to tax oil companies to help the poor.

Father Coughlin

• Catholic priest with a popular radio show and charismatic speaker.
• Anti-Semitic views, blamed Jewish bankers for planning to take over the world and blamed Jews for communism.
• The Catholic Church censored him.

1934 Congressional Elections and 1936 Presidential Election

• Congressional elections gave Democrats large majorities in both houses
• Republicans could not slow down the New Deal
• FDR defeated Al Landon and was backed by traditional Democrats, small farmers, labor unions, Northern blacks, Jews, and intellectuals.