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USA 1918-41, Hoover's response to the GD, Achievements and…

- - - - Mass Production
        
        Started by Henry Ford
        
        Before mass production, each individual Model T car took 12 hours to build if built by a single person
        
        The idea was to have workers perform a single job and specialise in it.
        
        They would wait for the car to come to their station via conveyor belt and put their part onto the car
        
        Effects
        
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      - Advertising
        
        The advertising industry grew a lot. Companies like Kellogg's used posters to encourage people to buy their products
        
        Effects
        
        Radio also helped develop advertising as. they would often be sponsored by big brand dames or played adverts.
        
        As a result, Americans ended up spending more leisure time listening to adverts
      - Hire Purchase - Customers pay for a product in instalments. The customer fully owned the product once the instalment had been paid off in full
        
        Hire purchase encouraged people to buy more as it was relatively cheaper to pay in instalments than to save up
        
        Effects
        
        Because demand increased, factories had a reason to keep producing
        
        In 1929, 75% of cars and 50% of electrical devices were bought using hire purchase
      - Consumerism - Buying and using a lot of goods and services (mostly more than you need)
        
        Advertising and marketing companies encouraged consumerism
        
        Instead of buying one type of item. Stores would encouraged people to get the same product but in different colours (for example)
        
        Effects
        
        Shopping became a leisure activity and a way to show off wealth.
        
        5,000 fridges sold in 1921, 1 million sold by 1929
        
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- - - - Biggest threat to Roosevelt because it had the power to stop New Deal laws.
        
        The unsupportive judges had been selected by the Republicans and could serve for life.
        
        Supreme Court believed that it had a duty to protect the rights of the individual states and stop the president and federal government from taking too much power.
        
        Actions
        
        To express their views, the court needed a business or individual to appeal against an agency or law
        
        Schechter Poultry Corp.
        
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    - - The Republican Party opposed Roosevelt because:
        
        He was a member of the Democratic Party: main opponent to the Republican party
        
        Actions
        
        They used these arguments to try defeat Roosevelt in the 1936 presidential elections.
        
        Their candidate Alfred Landon campaigned for:
        
        Power to be returned to the states
        
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        Aid for farmers
        
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        An end to the New Deal
        
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        He spent too much money: The federal government was spending billions of dollars on the New Deal. Republicans did not like using borrowed money to do this or Roosevelt's plan to raise taxes under the Revenue Act (1935)
        
        He made the federal government too powerful: they opposed the size and power of the Alphabet Agencies
    - - Business had previously benefited from the New Deal because it had helped calm the economic crisis.
        
        However, they turned against it after the problems of 1933 were over because:
        
        The New Deal supported unions: The NIRA and Wagner Act gave unions the power to challenge business managers
        
        Businesses did not like the way the government was spending so much: federal taxes were used to fund New Deal programmes, like WPA and Social Security. Businesses wanted low taxation so people had more money to buy goods. They believed that was the way to create jobs.
        
        They did not like being told what to do: NRA codes and New Deal laws made businesses pay a minimum wage and restrict working hours. This went against the traditional laissez-faire beliefs many businessmen had.
    - - Noble critics
        
        Huey Long - US Senator
        
        Huey Long's "Share our Wealth Programme"
        
        Became popular for heavily taxing the rich and using the money to provide social services and introduce reforms to help Louisianans
        
        His support grew and he was able to win election to Congress as a senator
        
        Long's objections to the New Deal
        
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        Share our Wealth (1934)
        
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        Idea: "Tax the rich and give to the poor"
        
        Father Coughlin - Famous radio priest
        
        Father Coughlin's "Social Justice Campaign"
        
        His show, "The Golden Hour of the Little Flower" had around 30 million listeners which meant politicians took his opinions seriously
        
        Coughlin's objections to the New Deal
        
        Initially supported the New Deal but when he turned against it, Roosevelt needed to find a way to respond
        
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        Idea: "Give the government even more power to fix the economy"
        
        Francis Townsend - Retired health officer
        
        Idea: "Provide over-60s with $200 a month to boost consumer spending "
        
        Francis Townsend's "Old Age Revolving Pensions, Ltd"
        
        Proposition:
        
        Citizens aged 60+ should get $200 a month to spend
        
        Funded by 2% sales tax and can help economy grow
        
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        Upton Sinclair - Popular novelist
        
        Idea: "Let poor people farm empty land and run abandoned factories"
        
        1934: Used his fame to run for governor in California
        
        Proposition
        
        Empty land and shut-down factories should be opened up for the unemployed to use
        
        Could allow them to produce what they needed and ease their poverty
        
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      - Impact of criticism
        
        Roosevelt's popularity was challenged
        
        Not serious blocks to the New Deal unlike the Supreme Court or Republicans that could vote down his policies
        
        However, did influence later policies in the 2nd New Deal:
        
        Critic: Huey Long
        
        Response: Revenue Act
        
        Critic: Francis Townsend
        
        Response: Social Security Act
        
        Critic: Father Coughlin
        
        Response: National Labour Relations Act
  - - - First 100 days of the New Deal
        
        These administrations aimed at helping to solve the major problems of the GD:
        
        Agriculture:
        
        AAA: The Agricultural Adjustment Administration aimed at helping farmers
        
        Ending overproduction
        
        They aimed at raising the prices of agricultural goods
        
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        Subsidies were offered to farmers who limited their production to make up for the lost income
        
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        Industry:
        
        NRA: National Recovery Administration wrote rules for industries to follow
        
        Set quotas on how much was produced
        
        Companies were not forced to join the scheme but incentives were offered
        
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        Controlled prices
        
        Set wages
        
        Limited working hours
        
        Banned child labour
        
        Fund raising:
        
        Beer and Wine Revenue Act helped to end prohibition, making it legal to buy and sell alcohol below 3.2%, which the government taxed, raising funds to help finance the New Deal
        
        Money:
        
        The Economy Act reduced government running costs by 25% which lowered federal spending by around $450 million
        
        Unemployment:
        
        FERA: Federal Emergency Relief Administration provided relief payments ($500 million for each state to spend on relief))
        
        Money was meant to add onto the existing state relief funds and help with immediate problems created by unemployment
        
        Relief helped provide families with a basic income to survive in the short term
        
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        Banking:
        
        Emergency Banking Act closed banks for 4 days. Federal checks were carried out and only "financially sound" banks were allowed to open
        
        12 March 1933: On one of his fireside chats, Roosevelt asked Americans to deposit their savings rather than taking their savings out
        
        By the end of March, Americans had deposited $1 million in their banks
        
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  - - - November 1934:
        
        Elections had brought in new politicians who wanted reform.
        
        Supreme court had also shut down some of it's agencies from the first New Deal.
        
        Main aims of the 2nd New Deal
        
        support workers in industry and improve their rights
        
        Help the rural poor get their own land
        
        Provide for the old during retirement
        
        Provide more work relief for the unemployed
        
        Types of help
        
        Rural electrification
        
        Help for the poor
        
        Help for farmers
        
        Help for the old and disadvantaged
        
        Help for workers
        
        Work relief
        
        CCC, PWA, WPA all helped provide temporary employment for the poor
        
        Housing
        
        Resettlement Administration helped build new suburban towns for urban families
        
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        Working conditions
        
        NLRA: National Labour Relations Act (Wagner Act) aimed to help improve the working lives of industrial workers
        
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        Reforming banks
        
        Banks were rescued by 1933 Emergency Banking Act but no major reforms had taken place
        
        Control was still divided between the Federal Reserve, the states and the big banks
        
        The Banking Act (1935)
        
        Created a board of Governors of the Federal Reserve System chosen by the president
        
        Gave various financial powers to the Board, taking them away from the more powerful banks
        
        Impact of the Banking Act
        
        Some bankers opposed it out of fear that they'll lose control
        
        Strengthened the central banking system
        
        1936: no national bank closed and very little had to be paid out in deposit as a result of the act
        
        US banking system had been modernised and a repeat of the 1929 crisis was far less likely
        
        The Work Progress Administration (WPA)
        
        1935: Harry Hopkins (from CWA) put in-charge of WPA
        
        WPA ended up spending $11 billion helping people
        
        Groups the WPA provided work for
        
        Young people: Helping students tay on at college or join training programmes
        
        Women: Sewing and teaching programmes
        
        Writers and performers: Guidebook writing and travelling theatre groups
        
        Manual labourers: Road and park building
- - - - Middle - upper-class Americans were worried that Communism would drastically transform society and take away wealth and power.
        
        The Russian revolution suddenly made the idea of a communist government become a reality. Worldwide revolution was promoted by the Comintern.
        
        The government was concerned because immigrants from eastern and southern Europe brought these ideas with them.
        
        1919: An outbreak of unrest amongst angry industrial workers lead to around 3,600 strikes across the US over low wages and little rights
        
        A police strike in Boston created serious challenges for law and order. It also threatened politicians and industrial bosses.
        
        April 1919: 40 mail bombs sent to politicians and industrialists were found
        
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  - - - Police started investigating immediately but it wasn't until May that a car associated with the crime was found at a local garage.
        
        5 May 1920: S & V went to pick up the car and the mechanic called the police like they had told him to.
        
        S & V were caught and were found to be carrying guns too. They were anarchists and were arrested because of their connection to the "Red Scare" bombings
        
        They tried to lie about the details but when the information was discovered, it greatly reduced their chances of getting a fair trial as Americans were anti-immigrant & anti-anarchist. The trial was held a year later only.
        
        May 1921: 167 witnesses were gathered for the trial and the evidence was given:
        
        Guilty
        
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        Innocent
        
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        Results
        
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  - - - Fundamentalists: Believed that everything mentioned in the bible actually happened. More traditional value and didn't appreciate dancing and other new fashions
      - Modernists: Still believed in God but believed that bible had to be reinterpreted as a result of modernisation. For example, Darwinism was accepted as they believe God caused evolution
        
        Anti-Evolution League of America was set up to oppose the teaching of evolution in schools.
        
        1925: Campaign succeeded in Tennessee and Butler Act was passed. Those caught teaching evolution could be fined up to $500.
        
        The trial
        
        Modernists in Dayton asked John Scopes, a high school teacher, to try break the law and see what happens
        
        10 July 1925: Scopes' trial begins. Involves popular fundamentalist William Jennings-Bryan & well known lawyer Clarence Darrow who was also a member of the American Civil Liberties Union. This turned the small trial into a national event
        
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  - - - 1874: Women's Christian Temperance Union used peaceful methods like marching to campaign against alcohol
        
        1893: Anti-Saloon league pressured the government directly to end the drinking of alcohol
        
        Reasons to ban alcohol
        
        Alcohol damaged society: Women said that alcohol consumption affected family life as it led to unemployment, domestic violence and wages being wasted in the bar
        
        Arguments were highly effective, by 1917, half the states had already passed prohibition laws
        
        18th Amendment (1919): Manufacture, sale and transportation of alcoholic drinks was banned.
        NOTE! drinking wasn't banned by this Amendment, this caused major loop holes later one
        
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        It led to sinful behaviour: Religious groups believed alcohol was responsible for sin
        
        It weakened the economy: Workers who were drunk were less efficient at their jobs
        
        It created problems for a country at war: Grain was needed for food production rather than alcohol manufacture
  - - - Treatment in the South
        
        Jim Crow laws - A series of laws passed to segregate society. This included:
        
        Sitting in different parts of restaurants
        
        Travelled on different railway carriages
        
        Used different toilets
        
        Education limited by availability of black schools
        
        Supreme court refused to challenge the Jim Crow laws
        
        Black southerners felt powerless due to lack of government support
        
        Lynch mobs were common due to the lack of government action in protecting black lives. Police rarely stopped the lynchings and would sometimes take part.
        
        The great migration to the North
        
        The north didn't have large numbers of slaves so meeting black people was relatively new to them
        
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    - - 1865: Created after American Civil War to defend white supremacy
        
        Members attacked and intimidated black people because they didn't want them to vote
        
        1871: Shut down by federal government after violence peaked
        
        1915: Film Birth of a Nation influenced William Simmons to restart the clan.
        
        Values of the new KKK:
        
        White Anglo-Saxon Protestants (WASPs) were a superior race
        
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        Immigration should stop because it brought foreigners into the USA who threatened the power of WASPs
        
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        WASPs should have strong Christian values. Klan targeted criminals who did not meet their moral standards e.g: adulterers and bootleggers
        
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- - - - The NCC's investors were afraid to lose their money and spent very little of it
  - - - The RFC was criticised for using government money to help banks rather than people
- - - - Higher tariffs led other nations to do the same, reducing international trade.
  - - - The Farm Board built up huge amounts of extra goods and could not stop the fall in prices.
  - - - The Federal Land Banks provided mortgages, but did not help farmers repay them.
- - - - Most of the money loaned by the RFC went to the largest banks and companies
  - - - Promises made in 1929 by major employers were broken as the Depression worsened
  - - - The Moratorium did not help enough to prevent the collapse of the international economy
- - - - ECE and POUR could not raise the enormous sums of money needed to help the large numbers of unemployed.
  - - - Federal spending on public works was very low. It was $210 million in 1930, whereas states spent around $2 billion a year.
  - - - States had to meet tough requirements in order to borrow the money. Only $30 million had been loaned by the end of 1932.
- - - - The WPA employed 8 million people.
        
        The work relief projects created new parks, roads and schools
        
        Shortcomings
        
        The projects relied heavily on government spending
        
        Work relief projects provided work for only about 40% in need of it
        
        The New Deal relied heavily on government spending. When Roosevelt tried to cut spending in 1937, unemployment rose by about 5%.
        Until the Second World War increased demand for factory and agricultural workers, the New Deal had made many Americans dependent on relief
    - - 35% of the population received relief from the government.
        
        The Social Security Act provided unemployment insurance for the first time
        
        Shortcomings
        
        The Government did not spend enough on relief
        
        Relief varied from state to state
        
        The poor needed social housing, but the government built little
        
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- - - - $4 billion worth of direct help from the governmentx
        
        RFC helped 6,000 banks to reopen after their forced closure in March 1933
        
        AS a result, the New Deal helped unemployment fall from 12.8 million in 1933 to 9.5 million by 1939.
        
        Shortcomings
        
        Industry
        
        The NRA codes did not work as many business ignored them
        
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        Farming
        
        Farm income rarely reached 1929 levels during the 30s
        
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        Banking
        
        Despite help from the RFC, 106 banks that had received extra funds were forced to close
        
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