The USA in the 1930s

Depression and the New Deal, the USA, 1929-1941

6. Depression and the New Deal: The USA, 19291941 Key issue: How serious The effects of the Wall Street Crash: the collapse of business were the effects of the and industry; unemployment and its effects Depression on the American people? The attempts of Hoover's government to deal with the depression; economic failure The unpopularity of Hoover and the election of Roosevelt. Roosevelt's fireside chats; banking crisis; New Deal helping Key issue: How did Roosevelt deal with the farmers, unemployed, home owners, workers, depressed areas Depression? The main Alphabet Agencies: AAA, FERA, CWA, PWA, WPA, CCC and TVA Helping industry: the NRA The HOLC and the Social Security Act. Key issue: How far was The effectiveness of the New Deal in achieving its aims; its limitations; the Second New Deal the New Deal successful in ending the Depression in the Criticisms and opposition to the New Deal from the Supreme USA? Court and some politicians The impact of the Second World War on American economic recovery, 19391941: increase in US exports; policy of LendLease; effects within USA.

RJH 09

The USA in the 1930s

EFFECTS OF THE GREAT DEPRESSION The Wall Street Crash of 1929 marked the start of the great depression which hit America first and then the rest of the world during the 1930s. The Cycle of Prosperity turned into a Spiral of Depression as consumer spending fell by almost half and companies found it difficult to sell their products. By 1932 the entire banking system was close to collapse. The highest cost of all was the human misery and despair. People had suffered the depression for over two years with no sign of improvement. Unemployment had risen to over 12 million and there was widespread poverty and homelessness. President Hoover believed in Rugged Individualism and that the government should not interfere. He was determined to balance the budget and refused to spend government money to help the unemployed. Hoover believed in rugged individualism, which meant that people should look after themselves He thought things would improve if people worked hard and that the government should not interfere. Many Americans thought Hoover did not care and that he would do nothing to improve things. This lack of action led to people blaming him for their problems. There was no Social Security (Welfare) or unemployment pay in America at this time. The unemployed often went hungry. The only way they could get money was to borrow from friends or relatives. They were forced to buy cheap food, scavenge or beg for food. In some of the worst hit areas people were starving to death on the streets. Unemployed people often had to rely on charity handouts and soup kitchens run by organizations like the Salvation Army. Many unemployed people lost their homes as they couldnt afford to keep up the payment on their rent or mortgages. Unemployment broke up families and many men left home to look for work and ended up as hobos. Hoovervilles were camps set up by the unemployed and homeless families on waste ground. People lived in tents or shelters made of waste materials. There were no water supplies or toilets and the camps were usually built close to a river. The people who lived in Hoovervilles would go into the city to look for work, beg or go to soup kitchens. Life was no better in farming areas. Farm prices fell by 70% and thousands of farmers were made homeless when they could not pay their mortgages. Mechanization meant there were fewer jobs available in farming states. Intensive farming of the prairies, drought and high winds destroyed the soil and turned the land into a dustbowl. In 1931 ex-soldiers or veterans marched to Washington to petition the government to pay out wartime bonuses early. Hoover used the regular army against them. His treatment of the Bonus Army seemed to show that Hoover did not care about the unemployed. The use of terms such as Hoovervilles were designed to turn people against Hoover and his policies. Hoover did provide finance for the Hoover dam and other public works but this was very small scale and did little to improve the situation. By the election of 1932 people had lost faith in Hoover and no longer trusted what he said. Many Americans believed Hoover would do nothing for them despite his claims that recovery was just around the corner when they could see no sign of improvement. The Democrat Presidential candidate F.D.Roosevelt offered the voters a New Deal. He promised to take action to end the depression and by using government money and power to help people suffering from the effects of the Depression. Roosevelt or FDR won! 2 RJH 09

The USA in the 1930s

REVISION NOTES: EFFECTS OF THE GREAT DEPRESSION QUESTION ANSWER NOTES

Why was there an economic depression in America in the 1930s?

How was the American economy affected by the depression?

How did President Hoover deal with Americas economic problems?

Why was life hard for the unemployed in America?

What were Hoovervilles?

Why did Roosevelt win the election of 1932 by a large majority?

RJH 09

The USA in the 1930s

CARD SORT TABLE: EFFECTS OF THE DEPRESSION

Political

Social

Economic

RJH 09

The USA in the 1930s Key Words

Veterans demand early payment of their bonuses 20,000 Companies had gone bankrupt by 1932

13 million unemployed people by 1932 Homeless people are forced to build huts out of rubbish

1 million people become homeless Evicted farmers head out west to California along route 66

1616 banks closed down by 1932

Spiral of Depression

Farmers attack judges and bailiffs Hoovers government does not take action to end the depression Hoover uses the army to evict the Bonus Army

People lose their savings when the banks close down

1 in 20 farmers are evicted

Farmers were unable to sell their surplus food

Salvation Army set up soup kitchens

Farmers organise strikes

23,000 people commit suicide

Homeless people nickname their shantytowns Hoovervilles

RJH 09

The USA in the 1930s

COMPARE & CONTRAST HH & FDR HOOVER ROOSEVELT

Key Words & Concepts Republican Rich Democrat University Degree Laissez Faire Orphan Government Action Poor Background Rugged Individualism History / Law Degree New Deal Lower taxes

Born in the USA Forgotten Man Mining Engineer 1928 1933

Self-Made Millionaire Privileged Background Polio 1933 1945 Disabled Increase taxes

HH believed in rugged individualism because .

FDR believed in the forgotten man because

RJH 09

The USA in the 1930s

ROOSEVELT AND THE NEW DEAL FDR believed that the government should take action and action now and use its powers to reduce unemployment and promote economic recovery by kick starting the Cycle of Prosperity. He believed that only government action could give the American economy the boost it needed through relief, recovery and reform that would help the unemployed and homeless, whilst making sure that something similar never happened again. In the short term, the government would tax and borrow to pay for public works and relief for the poor. Roosevelts first step was to try to restore confidence in the banking system. The Emergency Banking Act closed all banks and only those approved by the government were allowed to reopen. In the first hundred days of his administration Roosevelts New Deal quickly took shape. The most important aspects of the New Deal were the alphabet agencies which were set up to deal with specific problems TVA: The Tennessee Valley Authority provided work building dams, canals and power stations. The TVA covered seven states and helped an entire region to recover. CCC: Civilian Conservation Corps provided temporary relief / jobs for unmarried men aged 16-25 on conservation projects such as tree planting, flood prevention, road building. HOLC: Home Owners Loan Corporation bought mortgages from banks and offered homeowners long-term repayments, this prevented millions of people losing their homes. PWA: Public Works Administration -. built schools, hospitals, roads and other public buildings, this provided employment relief mainly for skilled workers. CWA: Civil Works Administration 1933-34, provided relief or jobs for over 4 million men building roads, playgrounds, sports fields etc (later became the WPA) NRA: National Recovery Administration set standards and improved working conditions in industry Blue Eagle Badge scheme for companies which met government standards. This was rather like a kite mark showing that they had met minimum standards of health and safety as well as paid their workers the minimum wage. AAA: Agricultural Adjustment Administration reduced farm surpluses and guaranteed prices by paying farmers to destroy 30% of their crops and grow less. For example, 6 million baby pigs were killed and their meat was canned and given to the unemployed. WPA: Works Progress Administration - created 3 million jobs building schools, roads, post offices. These jobs put the unemployed to work using a method known as workfare. This was more expensive that welfare but it helped to get the unemployed to do socially useful work that helped to develop their skills. By 1941 the WPA had spent $11 billion. Wagner Act reformed and gave new rights to employees and labour unions. SSA: Social Security Act provided old age pensions and later unemployment benefit in a similar way to our National Insurance. (Relief and Reform)

Once a week FDR would go on the radio and explain to the American people what he had done that week to help end the depression. These radio broadcasts came to be known as The Fire Side Chats and were important in helping to restore confidence. The first one explained how the Emergency Banking Act would restore the banking system.

RJH 09

The USA in the 1930s

ROOSEVELT AND THE NEW DEAL QUESTION ANSWER NOTES

What were the aims of the New Deal?

How did Roosevelt restore confidence in the banking system?

Which of the New Deal measures were intended to provide relief by tackling poverty and homelessness?

How did the New Deal try to reduce unemployment and help recovery?

What did the New Deal do to help agricultural areas and provide relief, recovery and reform?

How did the New Deal try to promote the recovery and reform of American industry?

RJH 09

The USA in the 1930s

HOW SUCCESSFUL WAS THE NEW DEAL? There has been much debate about whether the New Deal was a success. At the time Roosevelts policies attracted a lot of opposition and criticism.The Republicans thought the New Deal was too costly and a waste of tax payers money. Huey Long and his supporters thought the New Deal did not do enough for the poor and wanted higher taxes on the rich and a massive redistribution of wealth. Father Coughlin opposed the New Deal and wanted the USA to adopt a fascist type government. Some people opposed the New Deal because they believed it threatened the Constitution. The Republican dominated Supreme Court declared parts of the New Deal (AAA and NIRA) unconstitutional. Business leaders opposed government interference and the new rights given to workers and unions. Black Americans complained that the New Deal did not do enough to end discrimination. There were 15 million unemployed when Roosevelt became President in 1932, by 1939 there were still around 10 million. Many historians believe this shows that the New Deal did not end the depression. However, it gave people confidence and hope that things could get better. The Emergency Banking Act made the financial system more open and honest and helped restore confidence. Agencies such as the Home Owners Loan Corporation provided immediate help for people who were facing homelessness. The Agricultural Adjustment Act reduced production in order to end overproduction, increased prices and provided subsidies to farmers. It was replaced during the Second New Deal by the Soil Conservation Act after the Supreme Court declared it illegal. The Tennessee Valley crossed several states and the regions problems were too big for any one state to deal with. The TVA built dams to stop the flooding in winter and the droughts in the summer. The cheap hydroelectricity these dams produced attracted new industries to the area, improved transport and helped farmers. These people could then use their new found prosperity to buy the electrical goods mass produced in the cities this helping to reverse the Spiral of Depression by kick starting the Cycle of Prosperity. During the Second New Deal, a national welfare system was established to provide social security (unemployment benefit) and pensions. Industry was helped by the National Recovery Administration through the Blue Eagle scheme. Trade Union power increased and workers were given improved rights and minimum wages were introduced. Without the New Deal unemployment would have been worse. It provided temporary work for millions of unemployed. The public works, roads, dams, schools, airports and ports, helped the USA become a Superpower during the Second World War. The New Deal had faults and failures but it avoided helped to preserve freedom and democracy during the depression. Roosevelt was elected President three times and this demonstrated huge popular support for the new Deal When the USA went to war in 1942, conscription greatly reduced unemployment. The military forces of America and her allies provided massive orders for American businesses. By 1944 unemployment was replaced by labour shortages and large numbers of women had to enter the workforce.

RJH 09

The USA in the 1930s

HOW SUCCESSFUL WAS THE NEW DEAL? QUESTION ANSWER NOTES

Why was there opposition to the New Deal?

What were the main failings of the New Deal?

What were the main successes of the New Deal?

Did the New Deal have any long-term benefits?

How did the minimum wage introduced by the NRA help recovery?

Did the New Deal lead to economic recovery in America?

10

RJH 09

The USA in the 1930s

COMPARE & CONTRAST FIRST & SECOND NEW DEALS FIRST SECOND

Relief Recovery Reform Reverse the Spiral of Depression

Key Words & Concepts Emergency Relief Restore Confidence WPA TVA NRA PWA Emergency Banking Act 1933 1936 Wagner Act Social Security Act AAA

Sick Chickens Case CCC Hundred Days Workfare

Soil Conservation Act Welfare CWA

Boondoggling

Second World War

Old Age Pensions

Unemployment Benefit

Pump Priming

Help the unemployed

The main differences between the First and Second New Deal were

11

RJH 09

The USA in the 1930s How successful was the New Deal? Successful Unsuccessful

12

RJH 09

The USA in the 1930s How successful was the New Deal? Successful Unsuccessful

13

RJH 09

The USA in the 1930s The USA in the 1930s

Examples of the types of questions you will be asked on Unit 2 Section B (AQA Modern World History)
Total for this question: 20 marks Depression and the New Deal: The USA, 1929-1941 Study Source A and then answer both parts of Question which follow. Source A The Consequences of the Great Depression in the USA The photograph shows unemployed people in New York queuing for food on Christmas Day, 1931.

a) Using Source A and your knowledge, describe the main effects of the Wall Street Crash on the people of the USA. (8 marks) (b) The New Deal led to the economic recovery of the USA in the 1930s. Do you agree? Explain your answer. (12 marks)

14

RJH 09

The USA in the 1930s

Total for this question: 20 marks Depression and the New Deal: The USA, 1929-1941 Study Source A and then answer both parts of Question which follow. Source A shows work on a PWA construction site in Washington D.C. in 1933

a) Using Source A and your own knowledge, describe the ways in which the New Deal tried to bring relief to those in need. (8 marks) b) The Second World War was more successful than the New Deal in ending the Depression. Do you agree? Explain your answer. (12 marks)

15

RJH 09

The USA in the 1930s The USA in the 1930s

Total for this question: 20 marks Depression and the New Deal: The USA, 1929-1941 Study Source A and then answer both parts of Question which follow. Source A is a photograph of unemployed Americans seeking work during the Depression in the 1930s

a) Using Source A and your own knowledge, describe the human effects of the Great Depression in America in the 1930s. (8 marks) b) The New Deal was a failure. Do you agree? Explain your answer. (12 marks)

16

RJH 09

The USA in the 1930s

Generic Mark Scheme for Unit 2 Section B Questions
A Describe question (8 marks) You will be given a source as a prompt. It will probably be a picture. Write about the content of the picture. Give a general answer to the question. Write in detail about TWO aspects of the question. Mark Scheme Writes nothing of relevance Describes some relevant facts from the source OR Offers a simple description/narrative that lacks details Describes a number of aspects but lacks details OR Describes one aspect in detail including lots of facts Writes a detailed account of two or more aspects Marks 0

Level 1

1-2

Level 2

3-5 6-8

Level 3

An Analysis and explanation question. (12 marks) You will be given a statement, you must say whether you agree or disagree with the statement. Give all the facts, arguments and explanations that support the statement. Give all the facts, arguments and explanations that oppose the statement. Weigh up the two sides of the argument and come to your own conclusion.

Level 1

Level 2

Mark Scheme Writes nothing of relevance Describes the topic OR Makes general comments with little factual detail or explanation Argues for OR against the proposition gives a number of facts to support case but little explanation OR Argues for OR against the proposition gives one reason but it is detailed and offers an explanation. Argues for and / or against the proposition, is detailed and fully explained Examines the arguments for and against the proposition and puts forward a reasoned conclusion/judgement.

Marks 0

1-3

4-6

Level 3 Level 4

7-10 11-12

17

RJH 09