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The Great Depression I: Challenging the American Way of Life I: The Crash of Consumption II: The Corporate Welfare State III: Ironies of the Depression Terms Samuel Insull John Mayward Keynes Herbert Hoover “Blue Eagle” Franklin D. Roosevelt “The Folk” New Deal: Aaron Copeland CCC WPA Thomas Hart Benton PWA NRA Woody Guthrie TVASEC  1929, crash of stock market o Continued spiraling downward o Biggest depression I: The Crash of Consumption  Fundamental weakness in business structures  Saw prosperity (on surface)  Felicity (weakness underneath) o Bank ruptcy’s (a lot)  1926 (most prosperous year) 22,000 businesses failures (declared bank ruptcy)  1927, 23,000 bank ruptcy’s declared by businesses o Employment beginning to fall  Automobile industry  Construction (leading industry) o Samuel Insull  Head of electrical empire  Provided electricity for 39 states  Built on shaky foundation  Holding company for local companies  Local companies bought stock, inflated it’s value (appear more prosperous)  Value of little electric companies began to go down (domino effect)  Bubble in economy  Uneven distribution of wealth (extreme in 1920’s) o Top (well), Bottom (not well) o Wealthy increased buying habit by 75% (1920­29) o Top 10% owned national wealth o Bottom ½ expected to go under  International market o End of WWI, European economies in bad shape o Tremendous demand for American goods (England and France) o Paid for goods with the help of Germany o Demanded payments from Germans (millions) o Germans got money from Big American Banks o Americans loaning money to themselves o Bubble style prosperity  October 1929, biggest economy in the world collapses (until early winter 1930)  Businessmen commit suicide on Wall Street  Scenes of ordinary life o Soup kitchens (urban) o Long lines of men looking for work o Business going bank rupt o Factories closing down o Desperate poverty (rural)  Atmosphere of failure/dread, psychological and emotional depression o Dread of future o New to America II: The Corporate Welfare State  Herbert Hoover (elected year before depression, 1928) o Golden by the Republican Party o Born in Iowa o Orphan o Horatio Alger tale come to life o Stanford University (studied engineering) o Drifts into government (engineering and government) o Woodrow Wilson  Head of food relief program in Europe (aid program) o Worked high government positions o Spokesman of corporation (business and government) o Responses with continue with corporation of business and government (didn’t work) o Begins to lose creditability o Collection of huts (in public parks)  Referred to ask Hoovervilles o Americans expected the government to look over them economically  Hoover wasn’t meeting it  1932, renominated Hoover (republican) vs. Franklin D. Roosevelt (democrat) o Didn’t have to do much o Just don’t do anything stupid o Became president o Wave of energy that exploded o The 100 days, announces a New Deal  Tsunami in legislation  Number of programs  Several goals  Restore consuming power o Do something about banks o Urgency relief baking bill (federal government stands behind banks, had no money, psychological)  Restore financial power in federal government o Tax revenue dried up o End of prohibition, tax alcohol  Provide relief o Agriculture, extend credit to farmers (buy seed, keep up with payments) o Large number of agencies (civilization conversation care), make work, hired young men, low wages o PWA (public works administration) build roads and bridges, low wages o Economic philosophy, John Maynard Keynes (English)  Modern economy, needed government that relied on deficit spending  Good for government to spend more money  Cycles in economy, down­deficit spend (stimulate economy)  Get more tax money in return  Roosevelt adopted idea  Ex. Tennessee Valley Authority o Lack of power o Building domes to create hydroelectric power, send out power to poor households (Roosevelt) TVA  WPA, government program to build roads, schools, public buildings  Central thrust of New Deal o Use government to stimulate economy o Corporate liberalism o Government leading economy to prosperity  Ex: NRA (national recovery administration)  Blue Eagle (logo)  Drafted codes in competition  Limited production  Assigned markets  Intervened to set prices  SEC (securities exchange commission)  Regulate stock market  Set regulations and codes of conduct  Roosevelt saved Capitalism by reforming some of it’s abuses III: Ironies of the Depression  Cultural dimension  No big revolution during 1930’s  Ironies: o Reacted by blaming themselves  People who lost homes, etc.  Personal failure  Old American tradition (responsible for your own fate)  Private failure o Turn to the past  Looked back for inspiration  Folk (emphasized)  Reliance on common, ordinary working Americans  Americans survived everything in past and will survive the depression  Country values guided them through hard times  Music – Aaron Copeland o Drew upon old fashion rural tradition o “A Rodeo”, “Fanfare for the Common Man”  Art – Thomas Hart Benton o Great murals  In past, Americans working hard and carrying through  Fold singer – Woody Guthrie o “This is your land” The Great Depression II: Demagogues, Radicals, and the New Deal I: Demagogues II: Radical Dissent III: The Second New Deal Terms Dr. Francis Townsend Partisan Review Father Charles Coughlin Popular Front Huey Long WPA Mike Gold Social Security Act New Masses Wagner Act (NLRA)  Franklin Roosevelt o Instill confidence in American people  Made speeches  Attacking problems, things were going to get better o Value of activity, government programs  Progress was being made effectively  1935­36 the New Deal wasn’t working or very slowly and weakly o Unemployment – 25­30% o Farm Income – 50% of what it had been o Food shortages, rural people couldn’t get food o Business failures/foreclosures  American economy was ½ what it was in 1929  Criticism began, unhappiness o From demagogues and radicals I: Demagogues  Upper working/middle working class = unhappy social group  Fearful of going up or going under  Against New Deal and Roosevelt  Dr. Francs Townsend o Mid 60’s o Made heated speeches about older people suffering from Great Depression o 60+ should get $200 a month form government = life saver  Never said where the money was supposed to come from  ½ of national wealth o Very popular  Father Charles Coughlin o Radio priest, local in Detroit, expanded o Originally fan of New Deal o No changes = critizes the New Deal o Blame depression on conspiracy on Wall Street = profits to themselves  Jewish conspiracy, anti­Semitism  Jewish bankers wanted to bring wealth and power to their culture  Huey Long o Great political character o “Kingfish” in Louisiana (govern/senator) o Flamboyant, ruthless, shroud, ambitious o Gets national audience o 1934, national aspirations (presidential) o Share our wealth program  “Every man a king” o Guarantee an income of $2,500 to every family and house worth $5,000 o Proposal to pay the government should sees the land of wealth, 100% tax on millionaires o Roosevelt thought of him as a threat and most dangerous man in politics  Important of display of feelings of desperation in working/lower class people II: Radical Dissent  Depression represented bank ruptcy of American capitalism  Mike Gold o Socialist, later radical o Flirted with communism o Working class background o With the IWW o Influenced by Mexican Revolution o Editorial of New Masses (socialist)  Clasp of system  Rise of workers democracy  Partisan Review o Intellectual version o Influential journal (new york 1934) o Leading venue to write about problems and political solutions o Various arguments on behalf of democratic system o Argued for democratic socialism o Try to include modern art is liberating and goes hand in hand with democratic socialism  Popular Front o Announced by American communist party (1936) o Great danger was fashion coming to America o Need a ground alliance (liberalist, socialist, and communist = popular front) III: The Second New Deal  Roosevelt = shrude o Understand American political scene o Aware of demagogues o Adjustment in New Deal. The second New Deal  Takes a few steps to the left  Greater government involvement  Sympathy with working people  Attempts to insure well­being of ordering American o Understood modern media  Fire side chats (radio discussions)  WPA (works progress administration) o Huge government program o $5 million o Promote/over saw work projects  Build roads  Build public buildings  Artist  Theatre o Employed 2 million people  Social security act (1935) o Aid at Townsend crowd o National old age insurance, funded by taxes and contributions (would get pension) o 1970, covers everybody  Wagner Act (NLRA), 1935 o Named after senator Wagner (NY) o National Labor Relations Act o Support labor unions/organizations  Workers created company unions  Wagner out lawed that o Free election system back by federal government o Workers wanted to organize, free election o Power of federal government being behind labor unions/worker  Roosevelt because 2 New Deal. Remained popular (1936) nd  Despite 2 new deal, in 1930’s great depression was bad o Progress was small o Economy/state was still bad  Pulled out of great depression by WW2