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Economic downturn and Recovery, Republican attempts to deal with the…

- - - - 3.5 million shares bought and sold
    - - 13 million shares traded
      - Share prices collapsed
  - - - Food left to rot in ground
    - - Exhausted soil turned to dust
      - 20,000 Ha
    - - Fruit-growing areas in West
      - Arkies
      - Okies
      - Worked for v.low wages
      - Locals hated them because they took their work
  - - - Brought wives and children
    - - 5,000 refused
    - - Sent police initially & 2 veterans died
      - Sent army after and razed Hooverville to the ground
        
        100+ injured
        
        Baby died of tear gas
        
        Reinforced that Hoover did not care in eyes of people
  - - - 1932
        2m+ hobos
  - - - 1929
        1.23m
      - 1932
        982,000
    - - 1926
        12.6/1000
      - 1932
        17.4/1000
    - - DROPPED
- - - - Headed by Harry Hopkins
        (Previous head of FERA)
      - Organised $4B relief programme
      - Put unemployed teachers back to work
      - Created community service schemes to employ artists, writers and actors
    - - Upheld worker rights
      - Union members
        3m 1933
        to
        9m 1939
      - Gave power to employees
    - - Min. wages and max. work hours established for all employees
      - 300,000 workers secured higher wages
      - 1m+ had shorter work week
      - Child labour not permitted except on farms
    - - Gov. accepted full responsibility for meeting basic needs of citizens
      - Established:
        
        Pensions for elderly, orphaned, injured in industrial accidents
        
        Unemployment benefits funded by a tax on payrolls of employers
  - - - Huey Long
        
        Argued the wealth was not shared out fairly
      - Father Charles Coughlin
        
        40m weekly radio listeners listened to him criticising New Deal for not really helping the needy
        
        Labelled Roosevelt 'anti-god'
      - Dr Frances Townsend
        
        Gained support from elderly because Roosevelt did little to help them by 1934
        
        Townsend clubs had 5m ppl by 1935
    - - Republicans
        
        Represented interests of wealthy American families and large business corporations
        
        Traditional opponents of Democrats
        
        Believed Roosevelt was changing role of government and doing too much
      - American Liberty League 1934
        
        Smith and Davis = wealthy businessmen
        
        Previously stood as Democrat presidential candidates
        
        Preserve individual freedom and backed by wealthy businessmen
      - Dixiecrats
        
        Democrats from Southern states
        
        Represented farming regions
        
        Against Wagner Act = power to trade unions
    - - Few Democrat judges
      - 16 Alphabet Agencies tried
        1935-1936
        
        11 declared unconstitutional
        
        He was actually using federal powers not given by constitution
      - Sick Chickens 1935
        
        Schechter brothers sold diseased chickens
        Breaking rules of NRA they signed in 1933
        
        1935
        NRA took them to court
        Court declared NIRA illegal = unconstitutional
        
        750 NRA codes of practice scrapped
      - US v. Butler 1936
        
        Declared AAA illegal
      - Feb 1937
        Threatened to retire Supreme Court judges over 70 and replace them with ones that supported his policies
        
        Lost him support from some of his own party as he failed to ask them beforehand
        
        Many saw this as unconstitutional
        
        March 1937
        Sick chickens decision repealed and Social Security Act accepted
  - - - Relief
        
        Assist removing poverty
        
        Provide food
        
        Intervene to prevent loss of homes
      - Recovery
        
        Boost economy so ppl can get jobs
      - Reform
        
        Ensure welfare provisions in future for
        
        Sick
        
        Old
        
        Unemployed
        
        Disabled
        
        Destitute
    - - 2,000 banks closed 12 months prior
      - Restored confidence in banking
        
        Fireside Chats
        
        Talked to 60m ppl on radio
        
        Convinced ppl to trust in banks
        
        Closed all banks for 10 days
      - Alphabet Agencies
        
        Agricultural Adjustment Act (AAA)
        
        Reduced production payment from gov = killing crops/livestock
        
        Supreme court rejected act in 1936
        
        Civilian Conservation Corps (CCC)
        
        Gave conservation project jobs for 18-25s
        
        Earned $1 a day
        
        Civil Works Administration (CWA)
        
        Created public jobs
        i.e. sweeping parks/scaring away pigeons = laughed at
        
        Jan 1934
        4m on payroll
        
        1935
        Replaced by the Works Progress Administration
        
        Emergency Banking Act (EBA)
        
        Prevents banks from investing savings in the stock market
        
        Setup to restore confidence in banking
        
        Farm Credit Administration (FCA)
        
        Low-interest loans to farmers
        
        20% of farmers benefitted from scheme
        
        Federal Emergency Relief Administration (FERA)
        
        Provided $500m emergency relief via grants to state and local agencies
        
        Temporary measure
        
        National Recovery Administration (NRA)
        
        Set regulations
        
        Fair prices
        
        Fair wages
        
        Min. wage
        
        Fair working conditions
        
        Max. hours
        
        Adopted blue eagle symbol
        
        Launched publicity campaign and asked people to only buy from store with their sybol
        
        Removed by Supreme Court 1935*
        
        Public Works Administration (PWA)
        
        Spent $3.3B on large scale public works
        
        Reconstruction Finance Corporation (RFC)
        
        $15B pumped into Hoover's agency
        
        Tennessee Valley Authority (TVA)
        
        Aimed to regenerate region, which was most depressed in USA
        
        Created dams to provide cheap power
        
        Activities covered 104,000kmsq with a population of 7m ppl across seven states
  - - - 42/48 states voted for him
    - - Simple but bold message
  - - - New Deal restored faith in gov.
      - Preserved democracy i.e. no mass right wing support
      - Greatly extended role of central gov and president
      - Gave too much power to the federal gov and president
    - - Stabilised the banking system
      - Short-term, did not target underlying causes
      - Greatly improved US infrastructure i.e. roads, schools, power stations
      - Took longer to recover compared to Europe and in 1937 when New Deal budget was reduced, country went back to depression
    - - Alphabet Agencies = short term jobs
      - 24.9m 1933
        fell to
        14.3m 1937
      - NRA and New Deal strengthened position of labour unions and forced negotiations
      - Unions still treated with suspicion - many strikes broken up with brutal violence in 1930s
    - - Social Security Act = semi-welfare state
      - Some argued that welfare measures put too much pressure on taxpayers
    - - New Deal agencies discriminated against black americans
      - 200,000 benefitted from CCC and slum clearance programmes and housing projects
      - Little done to end segregation and discrimination in the Deep South
    - - Some states tried to avoid Social Security payments to women with introduction of special qualifications
      - Eleanor Roosevelt was important campaigner for social reform
      - Frances Perkins became first female appointed as Secretary of Labour
      - Some NIRA 1933 required women to be paid less
      - 8,000/2.75m employed by CC were women
- - - - Tried to fix prices on produce