APUSH 7.3

Rural Electrification Administration (REA) - Reform

gave low cost loans to farm cooperatives to bring power into their communities. Gave farmers electricity

Federal Deposit Insurance Corporation (FDIC) (1933)

government agency created by President Roosevelt that regulates banks and insures bank deposits for consumers. Still exists

Social Security Administration (SSA) - Reform

national pension fund for retired persons, an unemployment insurance system, and public assistance programs for dependent mothers, children, and physically disabled. Pension was financed by a payroll tax to begin in 1937. exist to this day and is very important

Bonus march, 1932

unemployed veterans from WWI marched to Washington, DC demanding the payment of bonuses promised to them at a later date (1945) - Congress didn't pass the Bonus Bill and President Hoover ordered the U.S. army to break up their encampment -Tanks and tear gas were used to destroy the veterans' camps - Incident all but sealed Hoovers failed reelection bid

The stage was set for the election of 1932- NY Governor Franklin D. Roosevelt won the democratic nomination. Roosevelt promised a "new deal for the American people" that included a repeal of the prohibition amendment. Republicans renominated Hoover.

Landslide victory for Democrats. Bands across America struck up Roosevelt's theme song- "Happy Days Are Here Again"- as millions of Americans looked with hope toward their new leader.

At the end of the 1920s, the United States boasted the largest economy in the world. Following WWI, Europeans struggled while Americans flourished. However, the stock market crash created a chain of events that led to the longest, deepest economic crisis in American history.

Long-term underlying causes sent the nation into despair.

Huey Long

Louisiana governor and US senator who was a critic of the New Deal - Supported a redistribution of wealth from the rich to the poor - FDR feared him politically, but he was assassinated.

Scopes was arrested for reading a part of the Textbook, Hunter's Civic Biology, to the class- part of a chapter on the evolution of humankind and Darwin's theory of natural selection.

Representing Scopes was trial Lawyer Clarence Darrow, and the Prosecutor was William Jennings Bryan. Bryan was a Christian who lobbied for a constitutional amendment banning the teaching of evolution throughout the nation.

FDR criticism during the time of presidency Left: Liberals attacked him for not providing enough relief and for maintaining the fundamental aspects of capitalism.

Right: Conservatives claimed his policies were socialism in disguise and that an interfering activist government was destroying a proud history of self-reliance.

Department stores opened up generous lines of credit for those who could not pay up front but could demonstrate the ability to pay in the future.

Similar Installment Plans were offered to buyers who could not afford the lump sum, but could afford "12 easy payments".

On the first day back in business, deposits exceeded withdrawals. On June 16, 1933, Roosevelt signed the Glass-Steagall Banking Reform Act. This law created the Federal Deposit Insurance Corporation.

Under this new system, depositors in member banks were given the security of knowing that if their bank were to collapse, the federal government would refund their losses. The act also restricted banks from recklessly speculating depositors' money in the stock market. In 1934, only 61 Banks failed.

Hoover said that political agitators, anarchists, and communists dominated the mob- untrue. Hoover and MacArthur clearly overestimated the threat posed to national security. As hoover campaigned for reelection that summer, his actions turned an already sour public opinion of him even further downward.

Undoubtedly, the fault of the Great Depression was not Hoover's, but he would receive great blame from his people. Urban Shantytowns were dubbed Hoovervilles. Newspapers used by the destitute as bundling for warmth became known as Hoover Blankets. Pockets turned inside out were called Hoover flags.

Seemed to be no end to alphabet soup: Securities and Exchange Commission- created to serve as a watchdog on the stock market Federal Housing Authority- provided low interest loans for new home construction Home Owners Loan Corporation- allowed homeowners to refinance mortgages to prevent foreclosure or to make home improvements.

United States Housing Authority- initiated the idea of government owned and low income housing projects Public Works Administration- created thousands of jobs by authorizing the building of roads, bridges, and dams. National Youth Administration- provided college students with work-study jobs.

Many nations in Europe had already experimented with pension plans, with Britain and Germany finding exceptional success. America's social security plan was described as a "contract between generations". The current generation of workers would pay into a fund while the retirees would take in a monthly stipend.

Upon reaching the age of 65, individuals would start receiving payments based upon the amount contributed over the years.

The lender was so certain that the market would rise that such transactions became commonplace, despite warnings by the Federal Reserve Board against the practice. But... there was a limit to how high the market could reach.

What causes stock prices to fall? When investors believe a stock is a good value they are willing to pay more for a share and its value rises. When traders believe that the value of a security will fall, they cannot sell it at as high of a price. If all investors try to sell their shares at once and no one is willing to buy, the value of the market shrinks.

Everyone wanted to see the trial. Entrepreneurs sold everything from food to Bibles to stuffed monkeys. The Trial became the first ever to be broadcast on Radio.

When Judge Raulston refused to admit expert testimony on the validity on the evolutionary theory, Darrow lost his best defense. He decided that if he was not permitted to validate Darwin, his best shot was to attack the literal interpretation of the Bible.

Depositing money in savings account carried a degree of risk. If a bank made bad investments and was forced to close, individuals who did not withdraw their money fast enough found themselves out of luck.

When depositors feared a bank was unsound and began removing their funds, the news would often spread to other customers. This would cause a panic, leading people to leave their homes and workplaces to get their money before it was too late.

The increase in prices actually caused a slight slowdown in recovery. Workers complained that participating industries found loopholes to violate minimum wage and child labor rules.

When the Supreme Court finally declared the NRA unconstitutional in 1936, many had taken to calling it the "National Run Around"

Although President Hoover refused to address them, the veterans did find an audience with a congressional delegation. Soon a debate began in Congress over whether to meet the demonstrators' demands. As the deliberation continued in Congress, the Bonus Army built a Shantytown across the Potomac River in Anacostia Flats.

When the senate rejected their demands on June 17, most veterans returned home, but several thousand remained in the capital with their families.

Significance of the Renaissance

brought together whites and blacks and became a vehicle for raising the self-respect and status of African Americans.

National Youth Administration (NYA) - Relief

created under the emergency relief act, provided jobs for young people

Society of the 1920s

cultural clash in American society intensified between Modern America (urban, industrial, and secular) and Traditional America (rural, agrarian, and WASP)

FDR legacy- as sweeping as his objectives were, they still fundamentally preserved the free-market economy. There was no nationalization of industry, and the social safety net created by Social Security paled by European standards. His mastery of the Radio paved the way for the media-driven 20th century Presidency.

His critics charged that he abused his power and set the trend for an imperial presidency that would ultimately endanger the office in future decades. The New Deal itself created millions of jobs and sponsored public works projects that reached almost every county in the nation.

In 1932 Hoover signed legislation creating the Reconstruction Finance Corporation. This act allocated a half billion dollars for loans to banks, corporations, and state governments. Public works projects such as the Golden Gate Bridge and the Los Angeles Aqueduct were built as a result of this plan.

Hoover and the RFC did not provide federal aid to individuals. He believed this was stifle initiative and create dependency where individual effort was needed.

Immigrants brought new cultures, religions, and languages to the increasingly complex American Mosaic.

The success of the Bolshevik revolution brought a widespread suspicion of socialists, radicals, and labor unions.

This was the largest tariff in American history, and passed against the advice of prominent economists. The Amount of protection received by industry did not offset the losses brought by a decrease in foreign trade.

The tariff proved to be a disaster. Believing in a balanced budget, Hoover's 1931 economic plan cut federal spending and increased taxes, both of which inhibited individual efforts to spur the economy.

Post War Economic difficulties

Severe labor unrest: - soldiers wanted old jobs back - women were expected to go home and assume traditional duties - blacks were expected to go home and accept 2nd class citizenship - conversion of factories from war to piece time goods caused a period of layoff and unemployment for may workers.

Black Monday

something ig

Bootlegging

the act of making of transporting alcoholic liquor for sale illegally

Post war Nationalism = Nativism

- Anti-immigration - National Origins Act - Palmer Raids - Sacco-Vanzetti Trial - Return of the KKK

The Lost Generation

- The generation of men and women who came of age during or immediately following WWI. - as a result of their war experiences and the social upheaval of the time, they were viewed as cynical, disillusioned, and without emotional stability - very critical of the consumerism and materialism of the roaring 20s - American writers included Hemmingway and Fitzgerald

Politics of the 1920s

- a resurgence of conservatism (progressivism is temporarily dead) - conservative Republican dominated decade (aka the "neo old guard") - pro-business, laissez-faire, and status quo approach to governing

Court-Packing Plan or Scheme (1937)

- after the Supreme Court declared a series of New Deal programs unconstitutional in such cases as Schecter v United States (1935) and Butler V United States (1936), President FDR unsuccessfully attempted to add new members to the Supreme Court. - The plan would have added 6 new liberal justices that would have been more sympathetic to FDR's New Deal

Bracero Program (1942)

- agreement between the US and Mexico that allowed the importation of temporary contract workers from Mexico to the US - partly done to fill a void in the workforce as a result of US entering WWII.

Wagner Act (1935)

- aka National Labor Relations Act - protected workers rights to organize labor unions and collective bargaining - Created the National Labor Relations Board providing govt. investigation of unfair labor practices.

The Jazz singer (1927)

- first motion picture with sound - nicknamed "talkie"

Securities and Exchange Commission (SEC) (1934)

Agency of the federal government that regulates financial markets and investment companies. Still Exists

They were unarmed, but many believed them to be a threat to national security. On July 28, Washington Police began to clear the demonstrators out of the capital. Two men were killed.

Fearing rising disorder, Hoover ordered an army regiment into the city, under the leadership of General Douglass MacArthur. The army rolled into Anacostia Flats and forced the Bonus Army to flee. MacArthur then ordered the shanty settlements burned.

Unemployment- FDR adopted an economic strategy known as "priming the pump". To start a dry pump, a farmer often has to pour a little water into the pump to generate a heavy flow. Likewise, Roosevelt believed the national government could jump start a dry economy by pouring in a little federal money.

Federal Emergency Relief Act- Law gave $3 billion to state and local governments for direct relief payments. Under the direction of Harry Hopkins, FERA assisted millions of Americans in need. While Hopkins and FDR believed this was necessary, they were reticent to continue this type of aid.

However, there were still some advantages of prohibition. Social scientists are certain that the actual consumption of alcohol decreased during this decade. Health records indicate a decrease in alcoholism and alcohol-related diseases such as cirrhosis of the liver. But.. the minuses outweighed the pluses.

Federal allocation of funds to enforce prohibition were inadequate. Loopholes in the Volstead Act, the law implemented to enforce the 18th Amendment, encouraged abuse. Alcohol possession was permitted for medical purposes, and production of small amounts was permitted for home use.

In the end, economics doomed prohibition. Costs of ineffectively policing the nation were simply too high.

Government officials soon ratified the 21st amendment, repealing the 18th.

Foreign Policy of the 1920s

- "Return to Normalcy" was the approach at the beginning of the 1920s. An attempt to return to the days of isolationism and the Monroe Doctrine

Glass-Steagall Act (1933)

Law that forbade commercial banks from engaging in excessive speculation. Established the Federal Deposit Insurance Corporation (FDIC). Still exists

All over Europe, fascist governments were on the rise, but Roosevelt steered America along a safe path when economic spirits were at an all-time low. Conservatives bemoaned a bloated bureaucracy that was nearly a million workers strong - they complained that Roosevelt more than doubled the national debt in 2 short terms, a good deal of which had been lost through waste.

Liberals pointed out that the gap between the rich and poor was barely dented by the end of the decade.

3 R's of the New Deal

Relief, Recovery, Reform

It attempted to create a managed economy by relieving businesses of antitrust laws to eliminate "wasteful competition". The NRA attempted to create artificial scarcity with commodities. Hope was that higher prices -> higher profits and higher wages -> economic recovery.

To avoid charges of Socialism, the NRA allowed each industry to draw up a code setting production quotas, limiting hours of operation, or restricting construction of new factories. Once the president approved each code, pressure was put on each business to comply.

A committee of staffers led by Secretary of Labor Frances Perkins, the first female to ever hold a cabinet position, penned the Social Security act. In addition to providing old-age pensions, the legislation created a safety net for other Americans in distress.

Unemployment insurance was part of the plan, to be funded by employers. The federal government also offered to match state funds for the blind and for job training for the physically disabled. Unmarried women with children would also receive funds under the Social Security Act.

Nativism- immigrants from areas outside Northern and Western Europe became targets of narrow-mindedness. African Americans faced new threats from a resurgent KKK. Socialists, anarchists, and atheists were attacked.

Since the 1880s, America's shores were flooded with immigrants primarily from southern and eastern europe. Critics of an open immigration policy cried that America's racial stock was being overrun by undesirable ethnicities.

Improvisation meant that no two performances would ever be the same. Harlem's Cotton Club boasted the talents of Duke Ellington.

Singers such as Bessie Smith and Billie Holiday popularized blues and jazz vocals. Jelly Roll Morton and Louis Armstrong drew huge audiences as white Americans as well as African Americans caught Jazz fever.

New products made household chores easier and led to more leisure time. Products previously too expensive became affordable. New forms of financing allowed every family to spend beyond their current means. Advertising capitalized on people's hopes and fears to sell more goods.

"Buy Now, Pay Later" became the credo of many middle class Americans of the roaring 20s.

unfortunately, northerners did not welcome African Americans with open arms. While the legal systems of the northern states were not as obstructionist towards black rights, the prejudice among the populace was acrimonious.

White laborers complained that blacks were flooding the employment markets and lowering wages. Most new migrants found themselves segregated by practice in run down urban slums. The largest of these was Harlem.

Mexican Repatriation, 1929-1939

- partly as a result of the Great Depression, the US govt. sponsored a Mexican Repatriation program encouraging Mexicans to voluntarily move back to Mexico. - thousands were deported against their will.

Great Depression (1929-1941)

- period of high unemployment and widespread bank and business failure - caused by the economic system that was out of balance with too much supply and not enough demand (people would try selling)

Prohibition (Volstead Act passed which led to the 18th)

- population generally supported prohibition and felt it was permanent but still wanted to drink - organized crime increased (Al Capone) - moon shining and bathtub gin emerged - government did not make an effort to enforce prohibition (small budget)

New Deal: Recovery

- short term acts passed and programs created to bring back consumer demand and "prime the pump" of the economy.

Luisa Moreno

- social activist who unionized workers, led strikes, and created the first national Latino civil rights assembly

1921-1926 (Huge Boom)

- stock market growth - "Roaring 20s" - Economy - Society - Technology - Art, Literature, Music.

Fundamentalism vs Modernism

- struggle between traditional rural America and Urban America - Fundamentalists emphasized the interpretation of the Bible - Modernists attempted to reconcile the Bible with scientific knowledge. - Scopes Trial

Smoot-Hawley Tariff (1930)

- the highest tariff in US history second to the Tariff of 1828 - the high rates led to a tariff war with other nations that worsened the international depression and cut American exports and imports by more than half.

Sacco and Vanzetti (1921)

- two italian anarchists convicted of murder - wasn't sufficient evidence - were executed in spite of public out cry - Example of Nativism

The Presidential leadership during the 1920s was pretty unremarkable. Warren Harding won his bid for the White House with his campaign slogan "return to normalcy".

Harding found himself mired in scandals unknown in America since the Grant administration. Although Harding himself was above the graft, his friends were more than willing to dip into the public treasury. Fraud and Bribery plagued the Veterans Bureau and the Justice Department.

In the increasingly competitive marketplace, manufacturers looked to more and more aggressive advertising campaigns. One trend was to use pop psychology methods to convince Americans that the product was needed. Example- Listerine. Using a seldom heard term for bad breath, halitosis, Listerine convinced thousands of Americans to buy it.

Advertisers were no longer simply responding to demand, they were creating demand. Radio became an important new means of communicating a business message. Testimonials from Hollywood film stars sold products in record numbers.

Disenfranchisement and Jim Crow Laws led many African Americans to hope for a new life up North. Hate groups and hate crimes cast alarm among them in the south. Most blacks were sharecroppers in an endless cycle of debt. In the 1890s, a boll weevil blight damaged the cotton crop throughout the region, increasing the despair.

All these factors encouraged blacks to seek better lives. Pull factors up North - Industrial jobs were numerous, and factory owners looked near and far for sources of cheap labor.

Politics became interesting in the election year of 1928- Democrats nominated Al Smith, the first Catholic ever to earn nomination for a major party. Smith raised eyebrows with an open opposition to the prohibition amendment.

As a result, the South broke with a long tradition of supporting democrats and helped herbert hoover to continue Republican domination of the Presidency.

This law based admission to the US on nationality. Immigrants from Northern and Western Europe granted higher quotas than from other parts of the world. Asian immigration was banned completely.

As a sign of pan-Americanism, there were no restrictions placed on immigrants from the western hemisphere.

Protests and violence by workers was blamed on Bolsheviks (communists) who supposedly infiltrated American society and labor unions

Big business conservatives used the red scare to hurt the effectiveness of labor unions by associating them with communism - Once peacetime economy was restored in 1921, labor unrest went away and consequently the red scare disappeared.

Black Thursday

Black Thursday is the name given to Thursday, October 24, 1929, when panicked investors sent the Dow Jones Industrial Average plunging 11% at the open in very heavy volume. Black Thursday began the Wall Street crash of 1929, which lasted until October 29, 1929.

John Maynard Keynes (Keynesian Economics)

British economist and dominant economist in America for 50 years starting during the Depression, father of Keynesian Economics which predicted that depression and recessions can be less frequent if the government is involved

As banks closed and savings disappeared, less money was spent on goods and services. Many consumers who had bought the new conveniences of the golden twenties on the installment plan were unable to make their payments.

Businesses began to lay off workers to offset new losses. Unemployment brought even less savings and spending, and the economy slowed even more.

For the single income family, all these new conveniences were impossible to afford at once.

But retailers wanted the consumer to have it all.

After several years of trying to connect Al Capone to bootlegging, federal prosecutors were able to convict him for income tax evasion.

The 18th Amendment was different from all previous changes to the constitution. It was the first experiment at social engineering. Only amendment that restricted rather than increased individual rights. Civil Liberties advocates considered prohibition an abomination.

The Harlem Renaissance brought a new form of entertainment. The sounds of jazz bands had appeal that transcended African American audiences.

The 1920s ushered in more lasting changes to the American social scene than any previous decade. Escapism loomed large as many coped with change by living in the present and enjoying themselves. The economic boom that unleashed the transformation and its consequences made the Roaring 20s an era to remember.

Flappers were northern, urban, single, young, middle class women. Many held steady jobs in the changing American economy.

Clerking jobs were numerous. Increased phone usage resulted in greater need for phone operators. Consumer-oriented economy of the era saw a burgeoning number of department stores. Women were needed on the sales floor to relate to the most precious customers- other women.

Garvey founded the Black Star Steamship Company to begin transporting African Americans "Back to Africa".

Closely watched by government officials, Garvey was convicted of mail fraud in 1923 and deported to Jamaica.

First group to feel the heat was suspected socialists. The wave of postwar strikes touched off an anti-labor sentiment across America. Fears fueled by the Russian revolution touched off a witch hunt for potential threats to American security.

Immigrants became targets for intolerance. Ethnic purists succeeded at slamming the open door for immigrants shut. Hate groups such as the Ku Klux Klan gained in popularity as working-class Americans took aim at blacks, immigrants, catholics, and jews.

Protestant fundamentalists were worried as the numbers of Jewish and Catholics grew larger. Labor leaders claimed that immigration lowered wages. As a result, Congress slowly built walls against newcomers.

The first line of defense was a literacy test in 1917, but this was not very successful. An outright cap on immigration numbers was enacted in 1921. Ethnic nationalists claimed that these conditions favored Southern and Eastern immigrants too favorably. The result was the National Origins Act of 1924.

Farmers faced tough times. The Great Depression for the American Farmer really began after WWI. Much of the Roaring 20s was a continual cycle of debt for the American farmer, stemming from falling prices and the need to purchase expensive machinery. When the stock market crashed, it sent prices in an even more downward cycle.

The first major New Deal initiative aimed to help farmers attempted to raise farm prices to a level equitable to the years 1909-1914. The Agricultural Adjustment Administration was established.

Effects of the 18th Amendment

- Black Market - Organized crime and Mafia

Four major characteristics of an economic crisis

- Business Failures (reduction in jobs) - Unemployment (no consumers) - Bank Failures (no money being loaned) - Deflation (prices drop)

Problems concerning foreign policy

- European Loans - Dawes Plan

Strengthening of the KKK

- Evolved into a Pro-American Ideology (WASP) - anti-everything - Spread to Northern Urban areas as result of Great Migration of Blacks

Black Tuesday

Black Tuesday, also known as the Wall Street Crash of 1929, was the worst stock market crash in US history. Black Tuesday was an abrupt end to the rapid economic expansion of the roaring 20's, and is widely considered to be one of the causes behind the beginning of The Great Depression

The Teapot Dome Scandal exposed Secretary of the Interior Albert Fall for accepting bribes for allowing private oil companies to lease public lands. Harding fell ill in 1923 and died shortly after.

Calvin Coolidge brought no significant change to Harding's Laissez faire, pro-business style. Progressives bemoaned the end of activist Presidents protecting the public good, prompting Bob Lafollette to launch an unsuccessful run for presidency under the progressive party banner in 1924. The only successful progressive reforms during this period occurred in state and local levels.

Writers, actors, artists, and musicians glorified African American traditions, and at the same time created new ones. The most prolific writer of the Harlem Renaissance was Langston Hughes. He cast off the influences of white poets and wrote with the rhythmic meter of blues and jazz.

Claude McKay urged African Americans to stand up for their rights in his powerful verses. No aspect of the Harlem Renaissance shaped America and the world as much as jazz. City dwellers flocked to see the same performers.

The stock market crash had many short term consequences. Banks that improvidently lent money to futures traders to buy stock on margin found that many of those loans would go unpaid.

Consequently, a rash of Bank Failures swept the nation. If a working class family was unfortunate enough to have their savings held in trust by a failed bank- too bad for them, all their money was lost.

By night, flappers engaged in the city nightlife. Frequented jazz clubs and vaudeville shows. Speakeasies were a common destination. With the political field leveled by the 19th amendment, women sought to eliminate social double standards. Flappers engaged in activities to please themselves, not a father or husband.

Consequently, the flapper was less hesitant to experiment sexually than previous generations. Sigmund Freud said sexual behavior was natural --- more young people experimented.

National Labor Relations Act (NLRA) - Reform

Created the National Labor Relations Board to protect the rights of organized labor and to collective bargain

The Federal Theater Project for example, hired actors to perform plays across the land. Artists like Ben Shahn were paid to paint murals. Authors such as John Steinbeck and Richard Wright were hired to write regional histories.

Critics called the WPA "We Piddle Around" or "We Poke Along", labeling it the worst waste of taxpayer money in American history. However, although the average monthly salary was barely above subsistence level, millions of Americans desperately needed cash, skills, and self-respect.

Long would join the US Senate in 1930 and in 1934 he would start a movement called "Share Our Wealth". With the motto "Every Man A King," Long proposed a 100% tax on personal fortunes exceeding a million dollars. The elderly would receive pensions.

Democrats worried that a Long bid for the presidency would steal votes from FDR in 1936, but an assassin's bullet ended his life in 1935.

Unfortunately, Tenant farmers and sharecroppers did not receive government aid; the subsidy went to the landlord. The owners often bought better machinery with the money, which further reduced the need for farm labor.

Despite its success, the Supreme Court put an end to the AAA in 1936 and declared it unconstitutional.

Tennessee Valley Authority (TVA) - Reform

Development of the Tennessee River watershed. Built 20 dams to control flooding, generate hydropower, increase agri. production, and revitalize the Tennessee Valley Region. TVA also provided jobs, low cost housing, reforestation.

New Immigration Laws were passed to restrict Southern and Eastern Europeans from immigrating to the US

Emergency Quota Act (1921)- based on 3% of each nationality living in the US in 1910 (actually benefited Southern and Eastern Europeans) Immigration Quota Act (1924)- 2% of nationality living in the US in 1890, no Japanese immigration at all, Canadians and Latin Americans exempt from act.

First New Deal (1933-34)

Emphasis: recovery Political Position: conservative Primary aim: economic recovery Philosophy: economic nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity) Objectives: higher prices for agriculture and business Beneficiaries: big business and agricultural business

Second New Deal (1934-1941)

Emphasis: reform & relief ● Political Position: liberal ● Primary aim: permanent reform ● Philosophy: international economic cooperation and economic abundance ● Objectives: increased purchasing power and social security for public ● Beneficiaries: small farmers and labor

Public Works Administration (PWA) - Relief/ Recovery

Established by the NIRA, intended for both industrial recovery and unemployment relief. Construction projects including public buildings, highways, bridges, and dams for water and power.

Works Progress Administration (WPA) - Relief

Established under the Emergency Relief Appropriation Act. Employed people to build roads, bridges, schools, post offices. Under the arts program, writers and artists got paid to do stuff.

The group that profited most from the illegal market was organized crime. City crime bosses such as Al Capone of Chicago sold their products to willing buyers and intimidated unwilling customers to purchase their illicit wares. Crime involving turf wars among mobsters was epidemic.

Even city police took booze and cash from the likes of Al Capone. Mobs forced legitimate businessmen to buy protection, tainting those who tried to make an honest living.

Jewish immigrants played a major role in the development of the American musical theatre during this era.

Ex: Composer George Gershwin blended jazz and classical music in his symphonic Rhapsody in Blue and the folk opera Porgy and Bess.

Employees would have one percent of their incomes automatically deducted from their paychecks, a rate at which was originally envisioned to reach 3%. Employers would also contribute for their employees. The plan was mandatory except for individuals in exempted professions.

FDR knew that this reform would be permanent. He guessed that once workers had paid into a system for decades, they would expect to receive their checks.

In 1933 only about 1 in 10 American farms was powered by electricity. The Rural Electrification Authority program was created to address this issue.

Faced with government competition, private utility companies sprang into action by sending power lines to rural areas. By 1950, 9/10 farms enjoyed electricity.

1919-1920 (Transition from War to Peace)

Factories: War -> Peace (Temporary Recession) - causes labor unrest Soldiers--> Women, African Americans

The intolerance of the 1920s is embodied in the murder trial of Nicola Sacco and and Bartolommeo Vanzetti. These two self-avowed anarchists and atheists were arrested in 1920 for 2 Massachusetts murders.

However, the trial was not about the murders, but about their backgrounds and beliefs. The judge criticized their political views in court. Their guilt or innocence remains uncertain. The Jury found them guilty and they were silenced by the electric chair.

Charles Coughlin

- Roman Catholic Priest who was a critic of the New Deal - Used his national radio program to attack FDR - eventually discredited for his antisemitism (prejudice against Jews) and support of fascism.

General characteristics of the 1920s

-Modern society vs traditionalism - Postwar nationalism--> feeds jingoism and nativism - Economic Boom--> Buying on credit

Federal Housing Administration (FHA) - Recovery

1934 - created to stimulate the building industry by providing small loans for home construction.

Farm Security Administration (FSA) - Relief

1937 - Meant to aid sharecroppers. Set up temporary housing for "Okies" and "Arkies" (Dust Bowl Refugees from Oklahoma and Arkansas) who migrated to California.

Fair Labor Standards Act (FLSA) - Reform

1938 -- set minimum wages and maximum working hours.

Scopes Trial/ "monkey trial" (1925)

- John Thomas Scopes charged with violating Tennessee's law for teaching evolution - Defense attorney was Clarence Darrow. - Prosecutor was William Jennings Bryan "Great Commoner" - First trial to be broadcast on Radio.

Banks were divided into 4 categories. Slightly over half the nation's banks were deemed first category and fit to reopen. The second category was permitted to allow a percentage of its deposits to be withdrawn. The third category consisted of banks that were on the brink of collapse. When the holiday was ended, these banks were only permitted to accept deposits.

5% of banks were in the final category- unfit to continue business. On the Sunday evening before the banks were reopened, Roosevelt addressed the nation through one of his signature "fireside chats". He assured radio listeners that the crisis was over and the nation's banks were secure.

Aschan School

- NY artists of the early 1900s whose work focused on portrayals of urban life

American society after WWI

- Only country to emerge from the war economically, politically, and militarily strong - Wanted to return to isolationist policies - Revival of Nativism (especially against Southern and Eastern Europeans) EX: Sacco and Vanzetti

New Deal: Reform

- Permanent acts passed and programs created to prevent an economic depression from happening again in the future.

Jazz Music

- Product of African American communities, characterized by improvisation

Palmer Raids, 1919-1920

- Raids led by Attorney General Mitchell Palmer. - The goal was to search for political radicals and deport foreign born political activists - reaction to postwar difficulties blamed on anarchists and socialists.

KKK March on Washington (1925)

- The KKK led a march on Washington and demanded laws against immigration - Klan also opposed Catholics, Blacks, and Jews.

Great Migration of African Americans

- a mass movement of African Americans out of the rural South to urban areas. when: 1914-1919 why: European demand for American products and ultimately US participation in WWI.

Natural Origins Act (1924)

- law that established quotas based on nationality for immigration to the US - law limited immigration from Southern and Eastern Europe, permitting larger numbers from North and West - Example of Nativism

Harlem Renaissance

- literary and artistic movement in the 1920s in which black writers and artists described African American life through music, murals, literature, etc. - partly as a result of Great Migration

Impact of the radio and automobile

- mass advertising - pop culture - popularized certain figures - assembly line * Scopes "Monkey" Trial

Prohibition (18th amendment)

- nationwide ban on alcohol. - caused division between those who supported the ban and those who didn't (dries and wets) - led to organized crime, mobster activity, and violence to control the lucrative black market trade in alcohol - repealed by the 21st amendment.

New Deal: Relief

-immediate aid to provide the bare necessities to those struggling to survive during the Depression - attempt to halt further deterioration of the economy

Running under the Slogan "Rugged individualism" made it difficult for Hoover to promote massive government intervention in the economy.

1930- succumbing to pressure from American industrialists, Hoover signed the Hawley-Smoot Tariff which was designed to protect American industry from overseas competition.

Federal Emergency Relief Administration (FERA) - Relief

1933 - supported nearly 5 million households each month and funded thousands of work projects for the unemployed. Also provided vaccinations and literacy classes for the poor.

Civilian Conservation Corps (CCC) - Relief

1933 - took unmarried men from ages 18-25 from relief rolls and sent them into the woods and fields to plant trees, build parks, roads.

Foreign Policy how would it be approached

-The Kellogg-Briand Pact is a 1928 international agreement in which signatory states promised not to use war to resolve "disputes or conflicts of whatever nature or of whatever origin they may be, which may arise among them". There were no mechanisms for enforcement. - The Washington Naval Conference was a disarmament conference called by the United States and held in Washington, DC

Civil Works Administration (CWA) - Relief

1933- Employed people in useful construction jobs such as repairing schools, laying sewer pipes, building roads. Some jobs were seen as useless though (raking leaves)

Agricultural Adjustment Act (AAA) - Recovery

1933- The AAA Paid farmers for not planting crops in order to reduce surpluses and increase demand. Farm income rose, but many tenants and sharecroppers were pushed into the ranks of the unemployed. Supreme court voided it.

It was a boom time for the stock market in the 1920s as stock prices soared to record levels and millionaires were made over night. Stock fever was sweeping the nation, and fueling the rapid expansion was the risky practice of buying stock on the market.

A Margin purchase allows an investor to borrow money, typically as much as 75% of the purchase price, to buy a greater amount of stock. Stockbrokers and even banks funded the reckless speculator. Borrowers were often willing to pay 20% interest rates on loans, being dead certain that the risk would be worth the rewards.

Red Scare (1919-1920)

A brief wave of fear over the possible influence of Socialists/Bolsheviks in American life.

The Great Depression

A financial and industrial slump U.S. and other countries, roughly beginning with the stock-market crash in October, 1929

Roosevelt Recession

A period in which the American economy stalled after several years of recovery. The recessions was most likely caused by cuts in government spending introduced by FDR in 1937 in an attempt to balance the federal budget.

Stock Market Crash of 1929

A plummeting of stock prices on Wall Street that signaled the beginning of a ten-year depression affecting all industrial societies in the western world.

Bankers were glad that FDR did not intend to nationalize the banking system as many European countries had done.

Although radical in speed and scope, FDR's banking plan strengthened the current system, without fundamentally altering it. One of his advisors quipped, "Capitalism was saved in 8 days."

Over half of the nation's automobiles were sold on credit by the end of the decade.

America's consumers could indeed have it all, if they had an iron stomach for debt. Consumer debt more than doubled between 1920-1930.

Manufacturing of Near Beer (regular beer without alcohol) was also permitted. The problem was that to make near beer, it was first necessary to brew the real variety, so illegal breweries could insist their product was scheduled to have the alcohol removed.

Americans everywhere began to partake in illegal drink. Every city had countless speakeasies- which were not-so-secret bars hidden from public view. While the number of drinkers may have decreased, the strength of the beverages increased. People drank as much as they could as fast as they could to avoid detection.

After Darwin's theory of humans being descended from Apes, America's churches debated whether to accept the findings of modern science or continue to follow the teachings of ancient scripture. By the 1920s, most urban churches had been able to reconcile Darwin's theory with the Bible, but rural preachers preferred a stricter interpretation.

Amid the changes brought by the decade, religious fundamentalists saw the Bible as the only salvation from a materialistic civilization in decline.

Although the United States had little history of massive social upheaval or coup attempts against the government, hunger stirred up this passion among the masses.

As bread riots and shantytowns grew in number, many began to seek out alternatives to the status quo. Demonstrations in the nation's capital increased, as Americans grew increasingly weary with President Hoover's perceived inaction.

One major threat to FDR came from Father Charles E. Coughlin, a radio priest from Detroit. Originally a supporter for the New Deal, Coughlin turned against Roosevelt when he refused to nationalize the banking system and provide for the free coinage of silver.

As the decade progressed, Coughlin turned openly anti-semitic, blaming the Great Depression on an international conspiracy of Jewish bankers. He formed the National Union for Social Justice and reached a weekly audience of 40 million radio listeners.

Even the United States sent troops to Russia hoping the White Russians could oust the Communist Reds. All this effort was in vain. The Bolsheviks murdered the Royal Family and secured control of the nation.

Back in the US, veterans were returning home. Workers who avoided striking during the war were now demanding wage increases to keep pace with spiraling inflation.

Middle Class Americans stretched their debt capacities by purchasing automobiles and household appliances on installment plans. There were fundamental structural weaknesses in the American economic system.

Banks operated without guarantees to their customers, creating a climate of panic when times got tough. Few regulations were placed on banks and they lent money to those who speculated recklessly in stocks.

Young Americans were looking to cut loose and have a good time. Prohibition did not end the usage of alcohol. Organized crime flourished as gangland violence related to bootlegged liquor plagued America's cities.

Flapper women strove to eliminate double standard values and young females engaged in behaviors previously reserved for men such as smoking and drinking.

On October 24, 1929- Black Thursday. Massive sell-a-thon began. By the late afternoon, wealthy financiers like JP Morgan pooled their resources and began to buy stocks in hopes of reversing the trend but the bottom fell out of the market on Tuesday, October 29.

For some stocks, no buyers could be found at any price. By the end of the day, panic erupted, and there was a downward spiral from there. Suicide and despair spread.

Thousands of banks were going out of business and families were losing their life savings overnight. FDR deemed remedying these failing financial institutions his first priority after being inaugurated. He declared a "Bank Holiday" 2 days after taking office.

From March 6-10, banking transactions were suspended across the nation except for making change. During this period, Roosevelt presented the new congress with the Emergency Banking Act. This law empowered the President through the Treasury Department to reopen banks that were solvent and assist those that were not.

Tennessee Valley Authority created in 1933. Geography of Tennessee River Valley was a problem for its residents. Centuries of resource exploitation contributed to soil erosion and massive, unpredictable floods that left parts of seven states impoverished and under utilized.

Funds were authorized to construct 20 new dams and to teach residents better soil management. The hydroelectric power generated by the TVA was sold to the public at low prices, prompting complaints from private power companies that government was presenting unfair competition. Soon Flood Control ceased to be a problem and FDR considered other regional projects.

The environment of intolerance prompted a drastic response by Marcus Garvey. Garvey believed that equality for African Americans could never be achieved in the US. He formed the United Negro Improvement Association to promote economic cooperation among black businesses.

Garvey made speeches and created uniforms and flags to symbolize a new black pride. The ultimate goal for blacks across the world should be to return to the "Motherland." Only in Africa could a strong nation dedicated to promotion of black culture flourish.

Effects of the Great Migration

Good: cultural diffusion Bad: many times met with hostility and discrimination

Ironically, FDR didn't make any concrete proposal during his campaign, only promising a "new deal"

However, the people were desperate for change and elected him into office.

FDR was a strong supporter of Woodrow Wilson and the League of Nations. He became the unsuccessful democratic candidate for the vice president in 1920. Roosevelt campaigned hard for Al Smith's 1924 and 1928 presidential bids and then received Smith's support to run for governor of New York.

In his two terms as governor, he earned a reputation as a progressive reformer. Once president, he had no strategy to fix the depression, but was a bold experimenter. He surrounded himself with competent advisors and delegated authority with discretion and confidence.

He deported 249 Russian Immigrants without just cause and the so called "Soviet Ark" was sent back to Russia. With his sponsorship, the Federal Bureau of Investigation was created under the leadership of J. Edgar Hoover.

In january of 1920, federal agents broke into the homes of suspected Anarchists without search warrants, jailed labor leaders, and held 5,000 citizens without respecting their right to counsel. Eventually most of the detainees were released, but many were deported.

As Germany slipped further into depression, the US would intervene again. The Dawes Plan allowed Germany to extend their payments on more generous terms.

In the end, when the Great Depression struck, only Finland was able to make good on its debt to the United States.

White supremacy was quickly, legally, and violently restored to the New South, where 90% of African Americans lived. Starting in about 1890, blacks migrated to the North in great numbers in a great migration.

Instead of wallowing in self-pity about their past, the recently dispossessed ignited an explosion of cultural pride. African American culture was reborn in the Harlem Renaissance.

The fight against the "Demon Rum". When the states ratified the 18th Amendment in 1919, the manufacture, sale, and transportation of alcoholic beverages was outlawed. Protestant ministers and progressive politicians proclaimed a holier and safer America.

It was predicted that worker productivity would increase, families would grow closer, and urban slums would disappear. But... prohibition would be repealed 14 years later after being deemed a failure.

Jelly Roll Morton

Jazz piano player who began his career in New Orleans. Sometimes called the "father of jazz."

Louis Armstrong

Jazz trumpet player and singer from New Orleans who played a pivotal role in popularizing jazz.

Keynes Ideas

Keynesian Economics= Deficit Spending (could lead to debt tho) Great Depression = Dark Ages

Congress of Industrial Organizations (1938)

Labor organization led by John L. Lewis that was created from a group of powerful unions that left the American Federation of Labor in an attempt to unionize unskilled industrial workers. -Eventually merged with American Federation of Labor

The churches of America were similarly torn by the struggles of old and new.

Modernists reconciled the theories of Charles Darwin with scripture, while fundamentalists persisted with a strict interpretation of creation theory.

Harlem Renaissance notable figures

Musicians: Duke Ellington, Jelly Roll Morton Writers: Langston Hughes, Alan Locke, Claude McKay Painters: Aaron Douglass

As a master of the radio, his confidence was contagious among the American populace. Before his first term expired, Roosevelt signed legislation aimed at fixing banks and the stock market. He approved plans to aid the unemployed and the nation's farmers. He began housing initiatives and ventures into public owned electric power.

New Deal programs aided industrialists and laborers alike. His friends and enemies grew with every act he signed into law. The New Deal sparked a Revolution in American public thought regarding the relationship between the people and the federal government.

The Great Depression had created an environment where the federal government accepted responsibility for curing a wide array of society's ills previously left to individuals, states, and local governments. An armada of government bureaus and regulatory agencies was erected to service the programs of the New Deal.

Observers called them the "alphabet agencies." While the CCC, CWA, and WPA were established to provide relief for the unemployed, the New Deal also provided a program intended to boost both industries and working Americans. The National Recovery Administration was created to spark business growth and improve labor conditions.

Desperate times- thousands performed odd jobs from taking in laundry to collecting and selling apples on the street. Citizens of Washington state lit forest fires in hopes of earning a few bucks extinguishing them. Millions of backyard gardens were cultivated to grow food.

Oklahoma was particularly hard hit, as a drought kicked up a "Dust Bowl" that forced thousands to migrate westward. Blacks endured unemployment rates of nearly twice the white communities- often the last people hired and first people fired.

Edward Hopper

Painter whose depiction of urban scenes showed life in modern America.

Fusion of art and technology created a new profession of industrial designers. Influenced by art deco and streamlining styles, they created functional products from toasters to locomotives that aesthetic appeal. Many skyscrapers such as the Chrysler and Empire State buildings in New York, were also built in the art deco style.

Painters such as Edward Hopper were inspired by the architecture of American cities to explore loneliness and isolation of urban life. Regional artists such as Grant Wood and Thomas Hart Benton celebrated the rural people and scenes of heartland America.

Postwar strikes swept the land. A small group of radicals formed the Communist Labor Party in 1919. Progressive and Conservative Americans both believed that labor activism was a menace to society. The hatchetman against radicals was Woodrow Wilson's attorney General, A. Mitchell Palmer.

Palmer was determined that no Bolshevik revolution would happen in the United States. From 1919-1920, he conducted a series of raids on individuals he believed were dangerous to American security.

Yiddish Theater

Political and artistic plays performed Yiddish in NY during the 1920s - symbolized the outpouring of the Jewish community.

Agricultural prices had already been low during the 1920s, leaving farmers unable to spark any sort of recovery. When the depression spread across the Atlantic, Europeans bought fewer American products, worsening the slide.

President Hoover's minimalist approach to government intervention made little impact. The economy shrank with each successive year of his presidency.

Reconstruction Finance Corporation (1932)

President Hoover's plan for economic recovery - US govt. agency established to provide financial aid to railroads, financial institutions, and business corporations.

Cont'd

Presidents: Harding, Coolidge, Hoover Republican dominated - "Return to Normalcy"- Harding - Scandals: Teapot dome

National Recovery Administration (NRA) - Recovery

Promote economic recovery by ending wage and price deflation and restoring competition. Set business codes and quotas. Blue eagle symbol and "We Do Our Part" slogan. Temporarily restored investor confidence and consumer morale, but failed to stimulate industrial production. Supreme court declared it unconst.

National Labor Relations Board was designed to protect the right of collective bargaining and to serve as a liaison between deadlock industrial and labor organizations. Critics bemoaned the huge costs and rising national debt and spoon-feeding of Americans.

Regardless, many of the programs found in FDR's "alphabet soup" exist to this day.

Social Security Act of 1935

Provided federal financial assistance to the problems of old age and unemployment. Social Security also provided benefits to widows and fatherless children. - still exists

Buying on Credit/Installment Buying

Purchasing products with the promise you will pay for product at a future time

Great Migration Push and Pull factors

Push: Poverty, indebtedness, racism, and violence in the rural south Pull: factory jobs, opportunities to live in communities with more freedom.

The automobile was first and foremost among these products. The practices of Henry Ford made these affordable to the American masses. The widespread use of cars led to changes in work patterns and leisure plans.

Radio usage also brought further changes. For the first time, a national popular culture was supplanting regional folkways. Americans across the country were sharing the same jokes and worshipping the same heroes. Housework was minimized with the introduction of labor saving devices ----> Greater leisure time.

Because alcohol was illegal, there could be no regulation of it. Desperate individuals and heartless profiteers distilled anything imaginable, often with disastrous results.

Some alcohol sold on the black market caused nerve damage, blindness, and even death. While women of the previous generation campaigned to ban alcohol, the young women of the 20s consumed it with passion.

In addition to the nationwide 25% unemployment rate, many laborers were forced to choose between wage cuts or getting fired. Most people who retained their jobs saw their incomes shrink by a third.

Soup kitchens and charity lines, previously unknown to the middle class, were unable to meet the growing demand for food.

The 1920s saw culmination of rapid industrialization. New products seemed to burst from American production lines with the potential to revolutionize American life. Products that had previously been toys for the rich were now available to a majority of Americans.

Standard of living increased as the economy grew stronger and stronger.

Social Security differed from European plans in that it made no effort to provide universal health insurance. The pensions that retirees received were modest- below poverty level standards in most cases.

Still, Roosevelt knew that the plan was revolutionary. For the first time, the Federal Government accepted permanent responsibility for assisting people in need. It paved the way for future legislation that would redefine the relationship between the American people and their government.

A propaganda campaign similar to that of WWI ensued. Firms that participated in the NRA displayed blue eagles reminding consumers of a company's apparent patriotism. To enlist support of Labor Unions, the NRA outlawed child labor, set maximum hours, and required a minimum wage.

The greatest victory for labor unions was the guarantee of the right to collective bargaining, which led to a dramatic upsurge in union membership. Unfortunately, the NRA did little to improve the economy.

Outstanding international debt- while practicing political isolation, the US was completely entangled with Europe economically. The Allies owed the US an enormous sum of money from WWI. Lacking the resources to reimburse America, the Allies relied on German reparations.

The German economy was so debased by the Treaty of Versailles provisions that they relied on loans from American banks for support. In essence, American banks were funding the repayment of the foreign debt.

The Eastern front had not gone well for Russia. The pressures of their losing effort forced the Russian Czar to abdicate. The new government had not fared much better. Finally in November 1917, Lenin led a successful revolution of the Bolshevik workers.

The ideas of Karl Marx had been known since 1848, but nowhere in the world until now had a successful communist revolution occurred. Once the war against Germany was over, the western powers focused their energies on restoring Czar Nicholas.

Indian Reorganization Act (IRA) - Reform

The Indian Removal Act of 1934 reversed the forced assimilation policies of the Dawes Act. Tried to stop the loss of Indian lands and encouraged tribes to establish local self govt.

Darrow hammered Bryan with tough questions on his strict acceptance of several of Bible stories. The "Great Commoner" felt it important for an articulate defender of the Bible to speak on its behalf. At one point in the testimony, Bryan claimed that the defense had "no other purpose than ridiculing every Christian who believes in the Bible"

The Key to Darrow's defense strategy was to have scientists testify, but the judge barred this from happening. Darrow was charged with contempt of court. On the trial's eighth day, Raulston ruled that Bryan's testimony would not be allowed to stand on the record.

By 1915, the Ku Klux Klan was almost dead. William Simmons of Atlanta, a history teacher at Lanier College, summoned a secret gathering on Stone Mountain on Thanskgiving, where participants pledged to reassert white supremacy.

The Klan grew on a national level, particularly strong in the midwest and south but powerful as far west as Oregon. The targets of this group weren't just blacks. Catholics, Jews, and Non-Nordic immigrants were attacked.

Mexicans in California were offered free one-way trips back to Mexico to decrease job competition in the state.

The Latino population of the American Southwest sharply decreased throughout the decade as ethnic violence increased.

The New Deal

The New Deal consisted of social, economic, and financial measures that aimed to provide relief for those affected by the Great Depression

1925- Tennessee passed the Butler Law- forbade the teaching of Darwin's theory of evolution in any public school or university. Other southern states followed suit. The American Civil Liberties Union led the charge of evolution's supporters.

The Union offered defense to any Tennessee teacher willing to fight the law in court. The man who accepted the challenge was John T. Scopes, a science teacher and Football coach.

New Deal Democratic Coalition

The alignment of interest groups and voting blocs that supported the New Deal and voted for Democratic presidential candidates from 1932 until approximately 1968, making the Democratic Party the majority party during that period.

It was clear to Darrow that all was lost. In order to appeal the case to a higher court, Darrow asked the Jury to find his client guilty. The Jury did. Scope was found guilty, fined $100, and released.

The battle that played out proved a victory for supporters of evolutionary theory despite what happened. A later court dismissed the fine imposed on Scopes, though in the short term, the antievolution law as upheld.

In the fall of 1933, Roosevelt authorized the Civil Works Administration, which would also be headed by Hopkins. Earning $15 per week, CWA workers tutored the illiterate, built parks, repaired schools, and constructed athletic fields and swimming pools. Hopkins put writers and artists on the payroll as well.

The largest relief program of all was the Works Progress Administration. When the CWA expired, FDR appointed Hopkins to head the WPA. Americans of all skill levels were given jobs to match their talents. Most of the resources were spent on public works programs such as roads and bridges, but WPA projects spread to artistic projects too.

Pensions for the retired or the notion of Social Security was not always the domain of the federal government. Individuals were expected to save a little of each paycheck for the day they would retire. Only few people were aggressive enough to negotiate a pension plan with an employer.

The majority of Americans lived check to check with little or nothing extra to be saved for the future. Many became a drag on the rest of the family upon retirement. The Social Security Act of 1935 aimed to improve this predicament.

However comprehensive the New Deal seemed, it failed to achieve its main goal: ending the Depression. In 1939, the unemployment rate was still 19%, and not until 1943 did it reach its pre-Depression levels.

The massive spending brought by the American entry to the Second World War ultimately cured the nation's economic woes.

Townsend argued that this plan would ignite the economy, as well as provide for a proper pension for those who had worked so hard for so long.

The person considered the greatest threat to Roosevelt politically was Huey "The Kingfish" Long of Louisiana. As governor of Louisiana, Long used strong-arm tactics to intimidate the legislature into providing roads and bridges to the poorest parts of the state.

One method of driving up prices was to create artificial scarcity. If farmers produced less, the prices of their crops and livestock would increase. The AAA identified seven basic farm products: wheat, corn, tobacco, rice, hogs and milk. Farmers who produced these goods would be paid by the AAA to reduce the amount of acres in cultivation or the amount of livestock raised. Farmers were being paid to farm less.

The press and the public immediately cried foul. To meet the demands set by the AAA, farmers plowed under millions of acres of already planted crops. 6 million young pigs were slaughtered to meet the subsidy guidelines. In a time when many were out of work and thousands starved, this wasteful carnage was considered downright wrong. But Farm income did increase during the AAA.

First, American firms earned record profits during the 1920s and reinvested much of these funds into expansion. By 1929, workers could no longer continue to fuel further expansion, so a slowdown was inevitable.

The richest one percent of Americans owned over a third of all American assets. Such wealth concentrated in the hands of a few limits economic growth. The wealthy tended to save money that might have been put back into the economy if it were spread among the middle and lower classes.

Federal protection of bank deposits ended the dangerous trend of bank runs. Abuse of the stock market was more clearly defined and monitored to prevent collapses in the future.

The social security was system was modified and expanded to remain one of the most popular government programs for the remainder of the century. For the first time in peacetime history the federal government assumed responsibility for managing the economy.

KDKA in Pittsburgh, 1920

The world's first commercial radio station. In November 1920, KDKA broadcast the returns of the U.S. presidential election, beginning a decade in which radio became pervasive in U.S. culture. By 1933, two-thirds of American homes had a radio, twice as many as those with telephones.

Direct payments might be "narcotic", stifling the initiative of Americans seeking paying jobs. Although FERA lasted 2 years, efforts were soon shifted to "work-relief" programs. This would pay individuals to perform jobs rather than provide handouts. The first such initiative began in March of 1933 called the Civilian Conservation Corps- aimed at unemployed unmarried men ages 17-25.

These men would leave their homes to live in camps in the countryside. Subject to military discipline, they built reservoirs and bridges, and cut fire lanes through forests. They planted trees, dug ponds, and cleared lands for camping. Youths were removed from the streets and given paying jobs and provided with room and shelter.

Foreign Diplomacy- The US wanted to avoid mistakes that led to WWI. President Harding convened the Washington Naval Arms Conference in 1921. The US, Great Britain, and Japan agreed to a ten year freeze on the construction of battleships.

They also agreed to uphold the Open Door Policy and to respect each other's holdings in the Pacific. In 1928, the United States and France led an initiative called the Kellog-Briand Pact, in which 62 nations agreed to outlaw war.

The demonstration that drew the most attention was the Bonus Army March of 1932. In 1924, Congress rewarded veterans of WWI with certificates redeemable in 1945 for $1,000 each. By 1932, many of these former servicemen had lost their jobs and fortunes in the depression.

They asked Congress to redeem their bonus certificates early. Led by Walter Waters of Oregon, the so-called Bonus Expeditionary Force set out for the nation's capital.

During the 1938 Congressional Elections, Roosevelt campaigned vigorously against anti-New Deal democrats. In nearly every case, the conservatives won.

This Coalition of Southern Democrats and Republicans dominated the Congress until the 1960s and effectively ended the reform spirit of the New Deal.

Another reformer who felt the New Deal had not gone far enough was Francis Townsend, a doctor from Long Beach, California. Townsend proposed the Old Age Revolving Pension.

This plan called for every American over the age of 60 to retire to open up jobs for the younger unemployed. The retirees would receive a monthly check for $200, but there was one catch. The recipients had to agree to spend the entire sum within a month.

Frustrated by a Conservative Supreme Court overturning New Deal initiatives, FDR hatched a "Court Packing" scheme. He proposed that when a federal judge reached the age of 70 and failed to retire, the President could add an additional Justice to the bench.

This scheme would enable him to appoint six justices to the high court. Conservative Democrats and Republicans charged FDR with abuse of power and failed to support the plan.

Federal Deposit Insurance Corporation (FDIC) - Reform

To restore confidence in banks and encourage savings, Congress created this to insure bank customers against the loss of up to $5,000 their deposits if their bank fails. Created by the Glass-Steagall Banking Reform Act and is still in existence.

Fireside Chats

radio broadcasts made by FDR to the American people to explain his initiatives

Securities an Exchange Commission (SEC) - Reform

serve as a federal watchdog to protect public and private investors from stock market fraud, deception and insider manipulation on Wall Street.

buying on margin

the purchasing of stocks by paying only a small percentage of the price and borrowing the rest

1927-1929 (warning signs)

• Buying goods on credit • Buying stock on the margin • Farmer overproduction Paid vacations, pensions, and fringe benefits - Stock Market starts to fluctuate

1930s (The Greatest Depression and the New Deal)

• By 1932 (election Yr.) - Country is desperate • 25% Unemployment • FDR - The New Deal • 3 Rs • Alphabet Agencies

1930s (Foreign Policy & World Affairs)

• Global Depression • High Tariffs Isolate the World • Treaty Unraveling • League Ineffective • Germany & Italy turn to Fascism -Build up militaries • Japan dominating/Picking apart the Pacific The US Focused on Depression at Home