Great Depression Powerpoint PDF

Unit 1 The Great Depression, An African Lens: 1929 – 1934 In these days of difficulty, we Americans everywhere must and shall choose the path of social justice...the path of faith, the path of hope, and the path of love toward our fellow man.“ Franklin Rosseveld  While the Great Depres...

Unit 1 The Great Depression, An African Lens: 1929 – 1934 In these days of difficulty, we Americans everywhere must and shall choose the path of social justice...the path of faith, the path of hope, and the path of love toward our fellow man.“ Franklin Rosseveld  While the Great Depression's influence has predominantly been examined in the context of Western nations, this course will shift the Introducto spotlight to Africa, with a specific emphasis on its repercussions on the ry political landscape of the Union of South Africa and the emergence of Thoughts labour movements in Kenya. Period: 1929-1934 Sub discipline: Economic history influencing pollical histories Lecture Layout Introductory thoughts Critical questions  Introductory thoughts Today, we delve into a pivotal period in history, the Great Depression, a seismic event that reverberated through the lives of countless individuals, reshaping political, social, and economic landscapes. Emerging from the ashes of the Roaring Twenties, the Great Depression brought about unparalleled challenges. It was a time when jobs vanished, livelihoods crumbled, and families faced dire hardship. But its impact extended far beyond the borders of the United States. Often, the narrative of the Great Depression focuses predominantly on Western experiences, sidelining the profound consequences felt in Africa. The African continent, although distant from the epi center of the crisis, bore its own set of hardships. For this lecture series the student must think deeply about how this global catastrophe touched the lives of individuals in Africa and reshaped the trajectory of the continent, reminding us of the importance of a  Some Critical Questions 1. What was the Great Depression? And What were its causes? 2. What was its impact in the US? And Why was the US The epicentre 3. Critically assess the lasting social, political and economic impact on the world and the United States 4. Provide a critique on the historiography of the study of the Great Depression and its lack of an African Focus 5. Analyse the specific industries or sectors within African economies that were most affected by the Great Depression. How did these economic shocks reshape the socioeconomic dynamics of African societies? 6. Anyalse its impact on South African politics during the 1920’s Select Readings Fourie, J. (2014). The South African poor white problem in the early 20th century: Lessons for poverty today. Cape Town : Stellenbosch Univeristy: Department of Econmics. Jewsiewicki, B. (1977). The Great Depression and the Making of the Colonial Economic System in the Belgian Congo. African Economic History, 153-175. Retrieved from https://www.jstor.org/stable/3601245 Minaar, A. (1990). The effects of the Great Depression (1929-1934) on South African white agriculture. Human Sciences Research Council, 83-108. Retrieved from https://www.tandfonline.com/doi/abs/10.1080/20780389.1990.10417176?journalCode= rehd19#:~:text=Furthermore%2C%20agriculture%20was%20dependent%20upon,cert ainly%20for%20the%20longest%20period. Schreven, S. (2022). Who wasted the Great Depression in Africa. Retrieved from https://edepot.wur.nl/572468 Stichter, S. (1984). The Impact of the Depression on Workers' Movements in East and Central Africa, 1930-. Fernand Braudel Center, 117-131. Retrieved from https://www.jstor.org/stable/40240979  Towards a definition The Great Depression as a disaster because of its length, depth, and consequences. The Depression lasted a decade, beginning in 1929 and ending during World War II. Industrial production plummeted. Unemployment soared. Families suffered. Marriage rates fell. The contraction began in the United States and spread around the globe. The Depression was the longest and deepest downturn in the history of the United States and the modern industrial economy.( Federal Reserve History, 2013) The Great Depression was the worst economic crisis in modern history, lasting from 1929 until the beginning of World War II in 1939. The causes of the Great Depression included slowing consumer demand, mounting consumer debt, decreased industrial production and the rapid and reckless expansion of the U.S. stock market. TO UNDERSTAND THE GREAT DEPRESSION is the Holy Grail of macroeconomics. Not only did the Depression give birth to macroeconomics as a distinct field of study, but also—to an extent that is not always fully appreciated—the experience of the 1930s continues to influence macroeconomists’ beliefs, policy recommendations, and research agendas. And, practicalities aside, finding an explanation for the worldwide economic collapse of the 1930s remains a fascinating intellectual challenge And perhaps that was the worst of it. Whether you were a banker or a baker, a homemaker or homeless, it was with you night and day - a terrible, unrelenting uncertainty about the future, a feeling that the ground could drop out from under you for good at any moment.” Timeline March 4, 1933: Franklin D. Roosevelt is inaugurated as the 32nd President of the October 29, January 22, United States. 1929: "Black 1932: The April 19, Tuesday" - Reconstruction 1933: Stock Market Finance Abandonment September 1, Crash. The New March 3, 1931: Corporation of Gold 1939: World York Stock The "Starvation (RFC) is Standard - The War 2 begins Exchange March" - established in U.S. officially World War II experiences a Unemployed the U.S. to leaves the gold Begins - catastrophic workers protest provide standard, Germany collapse, in various U.S. financial allowing for invades Poland, leading to a cities support to greater marking the rapid decline in demanding struggling monetary start of World stock prices. relief and jobs. businesses. flexibility. War II. June 17, 1930: September 18, June 17, 1932: 1934-1938 Smoot-Hawley 1931: The Bank Bonus Army Securities Act of Tariff Act is of England is Marchers - 1933 is signed into signed into law, forced to Thousands of law, aiming to regulate the stock raising tariffs on abandon the World War I Social Security Act imported goods gold standard, veterans gather is signed into law, and signaling a in Washington establishing the exacerbating global financial D.C. demanding Social Security international crisis. early payment system in the U.S. Fair Labor trade tensions. of their Standards Act is bonuses. signed into law, establishing the first federal minimum wage and maximum workweek. Conceptual understandings: Making sense of the cause  Conceptual understandings: Making sense of the 1. cause Stock Market Crash (1929): The most 6. Reduction in Consumer Spending The immediate trigger was the stock market crash of sudden drop in stock prices and widespread 1929. On October 29, 1929, known as "Black unemployment caused people to drastically reduce Tuesday," the New York Stock Exchange their spending. This led to a decrease in demand for experienced a massive collapse, causing a goods and services, further exacerbating the drastic drop in stock prices. economic downturn. 2. Over-speculation and Speculative Bubbles: 7. Protectionist Trade Policies: The Smoot- Before the crash, there was a frenzy of Hawley Tariff Act of 1930, which raised tariffs on speculation in the stock market. Many people imported goods, was meant to protect American were buying stocks in the hope that their prices industries. However, it ended up worsening the would keep going up, often without considering global economic situation by reducing international the actual value of the companies. trade. 3. Bank Failures: As stock prices plummeted, 8. Deflationary Spiral: Falling prices, known as many banks that had invested heavily in the deflation, made it harder for businesses and stock market suffered significant losses. This led farmers to pay back their debts. This led to a to a wave of bank failures, wiping out people's vicious cycle of reduced spending, lower savings and causing a crisis of confidence in the production, and more job losses. banking system. 9. Maldistribution of Wealth: There was a 4. Credit Crunch: The banking system was significant gap between the wealthy and the rest of weakened by the sudden loss of money due to the population. The concentration of wealth in the the stock market crash and subsequent bank hands of a few limited consumer spending and failures. This made it difficult for businesses and hindered economic stability. individuals to get loans or credit, which in turn reduced spending and investment. 10. Lack of Government Intervention: In the early stages of the Great Depression, governments 5. Global Economic Instability: The economic were slow to respond with effective policies. This troubles in the United States were exacerbated delayed recovery efforts. by similar issues in other parts of the world. For example, the European economy was still 11. Psychological Impact: The crisis had a recovering from the devastation of World War I. profound psychological effect on people. Fear and uncertainty led to a decrease in consumer confidence and business investment. Conceptual Conversations: Spreading to the rest of the world 1. Global Economic Interconnectedness: 1. The world economy was highly interconnected by the early 20th century due to international trade, investments, and financial ties. This meant that economic shocks in one country could quickly spread to others. 2. International Trade and Dependence: 1. Countries around the world relied on international trade for economic growth and stability. When the United States, a major global economic player, experienced a severe economic downturn, it had a ripple effect on trading partners. 3. Gold Standard and Fixed Exchange Rates: 1. Many countries were on the gold standard, which linked their currencies to a fixed amount of gold. This meant that when one country's economy was struggling, it had to reduce its money supply, which led to deflation. This, in turn, reduced imports from other countries, impacting their economies. 4. Debt and Reparations from World War I: 1. The aftermath of World War I left many countries deeply in debt. The Treaty of Versailles imposed heavy reparations on Germany, which had a destabilizing effect on the European economy. This economic strain contributed to the global spread of the Great Depression. 5. Reduction in Global Trade: 1. The implementation of protectionist policies, such as the Smoot-Hawley Tariff Act in the United States, led to a sharp reduction in international trade. This hurt exporting countries and exacerbated the global economic downturn. Conceptual Conversations: Spreading to the rest of the world 6. Financial Contagion: The interconnectedness of financial markets meant that when major financial institutions in one country faced difficulties, it had a domino effect on the global financial system. The failure of banks and financial institutions had a cascading impact on economies worldwid. 7. Reduction in Investment and Capital Flows The economic uncertainty of the Great Depression led to a sharp reduction in foreign investment and capital flows. This lack of investment further hampered economic recovery in many countries. 8.Political and Social Unrest: 1. The economic hardships of the Great Depression led to political and social unrest in many countries. This instability further impacted economic stability and hindered recovery efforts. 9. Lack of Effective International Cooperation: 2. The response to the crisis was often fragmented and lacked effective international coordination. Countries implemented policies independently, which could sometimes exacerbate the global economic downturn. The economic boom of the 1920’s: A "chicken in every pot, and a car in every backyard." Political economy of war Technological advances automatic switchboards, conveyer belts and concrete mixers. New mass market techniques Consumer culture Cheap credit The Great Depression in the 30’s  The Great Depression in Africa Africa mainly exported primary commodities: agricultural products and minerals. The price of these products plummeted, falling further than the prices of manufactured goods. As a result, for the same volume of export you could only buy half the amount of imported goods such as textiles. In response to this fall in prices, people started to produce and export more, which made African economies more dependent on these exports.” Michiel de Haas,2022) The Great Depression did not have much of an impact in Africa as it did in Europe and America because their economies were not as developed. However, there remained an impact. Kenyan economy in the 1930’s White settler: “organized into estates or plantations that employed large amounts of relatively low- skilled migrant labour and that exported coffee, tea, sisal, maize, and other commodities to the world mark.” African peasant sector- flourishing, selling maize, vegetables, and other crops largely on the domestic maize such as soda ash mining, railway and marine transport and docking, building and construction, and urban commercial enterprise Indian in small family-organized businesses and on the railways The Great Depression in Africa Causes of the Depression in Kenya Labour was reduced in the estates -1932. On the railway, employment fell from 15,628 in 1930 to 12,000 in 1993 Crop prices fell “the unhappy "solution" had been greater exploitation of female labour and a tendency for males to accept outside wage labour only under forced or sea- sonal arrangement How to sell what can be easily produced Wage cuts – 15- 50% But few protests are recorded. Such was the need for work that when some sisal estates that had closed attempted to re-open with a reduced labour force in 1933 Because of the increasing congestion in the African reserves, not all migrant workers could shift out of wage labour during the Depression. Population increase and social differentiation in the reserves had already created a landless and land- poor stratum Migration to towns; cause social issues The Great Depression in Africa Tax example, French West Africa, governments attempted to offset declining revenues during the Depression through increasing African tax In Kenya, the tax rate was not increased, but it was held steady even while the cash incomes of workers and peasants declined- Although it became increasingly difficult to pay taxes; there was enough produce – therefore no famine. African workers, especially in urban centers and mining regions, began to organize in response to declining wages and poor working conditions.African labourers increasingly engaged in strikes and protests, particularly in South Africa, Ghana (then the Gold Coast), and Nigeria. The formation of unions was initially met with resistance from colonial authorities but grew in strength during the 1930s and 1940s The Nigerian Railway Workers’ Strike of 1931: Workers protested wage reductions and poor living conditions, marking one of the first organized labour movements in Nigeria. South African Mineworkers: The Depression saw increased strikes from African miners, particularly in gold mining, where labour conditions worsened. Gold Coast Cocoa Farmers Strike (1937-1938): Farmers protested low prices for their crops set by British trading firms, a significant early example of agrarian labour movement The Great Depression in Africa The Nigerian Railway Workers’ Strike of 1931: Workers protested wage reductions and poor living conditions, marking one of the first organized labour movements in Nigeria. South African Mineworkers: The Depression saw increased strikes from African miners, particularly in gold mining, where labour conditions worsened. Gold Coast Cocoa Farmers Strike (1937-1938): Farmers protested low prices for their crops set by British trading firms, a significant early example of agrarian labour movement In response to labour unrest, colonial authorities in Africa began to offer limited reforms such as marginal wage increases and improved working conditions to prevent further strikes. These concessions, however, were largely superficial, and the deeper structural inequalities persisted until the decolonization movements of the 1950s and 1960s.  The Great Depression in South Africa in 1931, 38,75 per cent of the White and approximately 80 per cent of the Black population were rural. South Africa’s economy in the 1920 was more geared towards exports – causing an over reliance on external factors fall in export prices for South African produce led to a decrease in the value of farming exports. as a result, income from agricultural and pastoral export swas£5million less in 1929 thanin1928. In the following years this reduction continued unchecked,andbetween1929and1932 the gross value of agricultural production in South Africa fell by almost 70 per cent. National income fell by 19percent, imports by 39percent, exports by29,4per cent, employment by12,75percent,whilegovernment revenue fell by nine percent. The price of gold remained steady Goldas a percentage of total exports rose from49per cent (£44377752) in 1928 to seven percent (£46 119 416) in1931 and peaked for the period at 77percent (£69 941 144) in 1933. By the end of the Depression was providing about three quarters of the total export income. The Great Depression in South Africa Agriculture had the biggest impact Sharp decrease in Agricultural exports between 1928-1933 Initially a surplus of produce Famine Locust infestation The suddenness, the dramatic fall in farming income and in how short a time the effects of the economic depression were felt by the farming community were the outstanding features of the Great Depression. By June 1931 the situation had become serious especially in the smaller towns which were the centres of sheep-rearing districts. These towns, having no wage-earning class, no railway workshops, universities, many civil servants, harbour officials or other professional and commercial personnel, were almost in a state bordering on insolvency since they were entirely dependent upon the prosperity of the farmer. The abandonment on the Gold Standard in 1934 – saw the increase again.  The Great Depression in South Africa The poor white problem “Dutch Reformed Church Synod- 1887 -The first conference, held in 1893 at Stellenbosch, was followed by similar conferences in 1916 (Cradock), 1923 (Bloemfontein), 1930 (Pretoria) and in 1933 (Bloemfontein). The first Congress of the People (Volkskongres) in 1934 was entirely dedicated to investigating the poor white problem (the armblankevraagstuk).” Many poor whites were resettled in "white welfare" schemes, intended to restore their economic self-sufficiency. “Although the average indebtedness of White farmers was put at £1 000 per farm in 1930, in the preceding years most farmers had been able to pay the interest due on their bonds. It was only when the Depression and its low prices arrived that farmer/owners were actually forced off the land. Before the Depression, the most of those leaving were the poor White tenant farmers (`bywoners') and those farming on small uneconomic farms. The Depression saw the phenomenon of White farmer/owners, many of them quite substantial landowners, being pushed off their farms because they could no longer make a living. This movement of farmer/owners off the land had not been much in evidence before the Depression (although there had been a large movement of the poor White `bywoner' class.) However, the movement off the land was slowed since there was even less of an economic future for rural Whites in the urban centres where factory or other jobs were scarce. Those jobs that were available, had to be competed for with cheap Black labour. The `civilised' labour policy did not help unskilled Whites much where qualified artisans protected their own interests through the `closed-shop' principle.”  The Great Depression in South Africa Politics Rand strike of 1922 United Party pack 1933- ( South African Party and United Party) The economic hardships faced by Afrikaners during the Great Depression led to a surge in Afrikaner nationalism. Political parties like the National Party used the economic distress of poor whites to advocate for more racially discriminatory policies. The rise of Afrikaner nationalist movements in the 1930s was partly a response to the poor white problem and the perceived need to protect white livelihoods. The Carnegie Commission of 1932 The Carnegie Commission's report advocated for state interventions to uplift poor whites, including education, land reform, and employment programs. The report reinforced the racial segregation policies, as it framed the poor white problem in terms of restoring white superiority over black labour. Welfare programs were directed at improving white livelihoods, often at the expense of black workers who continued to face economic exclusion. The economic collapse reinforced racial segregation as poor whites received government assistance, while black workers were largely left out.Segregation policies were expanded in the labor market to protect white workers from competition, leading to increased discrimination against black laborers.The Great Depression also influenced the development of apartheid policies, which would later institutionalize the racial hierarchies that were The Great Depression in South Africa Legislation During the early years of the Depression most of the legislation passed by the government was concerned with giving assistance and relief to the South African farmers, while later legislation was aimed at the rehabilitation of the farmer The Native Service Contract Act of 1932-Tenants on white-owned farms now had to work between three and six months for the landowner or pay a heavy tax of five pounds. It was also illegal for tenants to leave the farms on which they worked without written permission. Religion The Dutch Reformed church Recovery The abandonment of the Gold Standard World War 2 Factory work Conclusion The Depression had an immense impact on the global economcy in the 1930’s Showcased the interconnectedness of the global economy in the 20th Century Although the focus is on the West, there was considerable impact on Africa How did the Great Depression influence the relationship between African workers and their colonial rulers? In what ways did worker movements during this time set the stage for decolonisation efforts in Africa? How did the Great Depression deepen racial inequalities in South Africa?In what ways did the Poor White Problem influence later apartheid policies?