Depression and New Deal, 1929-38 Flashcards
How did the Depression of 1929-1932 impact the working class/ ‘ordinary’ people?
The working class was heavily impacted by the Depression. Unemployment increased which caused issues like poor living conditions and poor diets. In fact, by 1931 a survey in Colorado said all school children were insufficiently fed. The poor diets and living conditions led to spread of diseases such as dysentery, typus and pellagra. Seeing as the USA had no old age pensions, or a national system of unemployment welfare people found it hard to cope. Helping the unemployed was seen as a state responsibility but most of the help to the unemployed came from voluntary organisations (Hoover encouraged voluntarism). The migration of unemployed from state-to-state cause friction because states would rather help their own poor/ unemployed than the new arrivals. The suicide rate rose 14 percent between 1929-32, marriages fell by ten percent over the same period, and birth rates dropped. The working class struggled during the Depression, especially when it came to poverty and unemployment.
How did the Depression of 1929-1932 impact ethnic minorities?
The Economic Depression led to an increase in racial discrimination, specifically in the workplace. Most employers would only hire those who were white. One example occurred in California where the drop in demand for agricultural products affected tens of thousands of Spanish-speaking Hispanic workers. In fact, during the Depression, almost 500,000 Mexican citizens (most before 1933) were forced to leave the US. Spanish speakers were encouraged by several states to ‘go home’ by barring non- US citizens from public works programmes (some states even paid the rail fare for these workers to the Mexican border). Another group that experienced racial discrimination were The Chinese. In 1932, NY customers boycotted Chinese laundries in an attempt to drive them out of business. The last example of how ethnic minorities were affected during the Depression were Black Americans. Already suffering discrimination for generations, they faced new oppression; Black people were the last to be hired and usually the first to be fired when companies downsized. In Milwaukie, Wisconsin, white workers at Wehr Steel foundry went on strike, demanding that black workers be fired. Discrimination was worse in the Old South- white mobs in Louisiana attacked black railway workers, killing ten, for the reason to drive out all black Americans out of their jobs. Lynching of black people increased during the Depression, reaching 24 deaths in 1932. All of these examples demonstrate how ethnic minorities were placed at the least priority when it came to employment and ha to deal with racial prejudice along with facing poverty.
How did the Depression of 1929-1932 impact farmers?
The Depression caused a collapse of businesses, meaning farmers across the US struggled even more that the workers in towns and cities. Farm incomes fell by two-thirds between 1929- 1932 due to a sharp fall in demand that led to cheaper farm prices. Specifically cotton in the south-east, for example, saw its price fall by two-thirds in between the same year. The banking sector also took toll on farmers. Most farmers had bank loads which they used their farms as security for but in 1930 over 600 banks went out of business, so thousands of farmers lost their livelihoods.
How did the Depression of 1929-1932 impact veterans?
In 1932, some of those affected by the Depression took matter into there own hands, this included veterans who had fought in WW1. 21000 veterans marched on Washington DC., demanding that they should receive the bonuses they were due in 1945 immediately. The ‘Bonus marchers’ were ordered to be removed by the army under General Douglas MacArthur. The army forcibly evicted the Bonus marchers from Washington DC. Using tanks (resulting in 2 deaths) on the 28th of July 1932 at the ‘Battle of Anacostia Flats’. President Hoover declared the Bonus marchers as a treat to democracy. Veterans may have acted, but it only resulted in a bad reputation and counter forces.
How did the Depression of 1929-1932 impact those who were homeless?
Despite Hoovers attempt to assure people that economic recovery was soon, the reality was very different. Unemployment rose significantly from 6.9 % in 1930 to 24.1% in 1933. During Hoovers presidency 13 million people lost their jobs (62% of these people wee out of work for more than a year). The USA lacked a federal welfare system between 1929-33 so the unemployed had to rely on help from the state governments. However, many of these failed to offer anything more that short-term help which had led to a rapid rise in homelessness. New vocabular became popular: ‘Hoover blankets’ (the newspapers used by people as blankets when sleeping rough), ‘Hoover flags’ (pulled out pockets), ‘Hoover wagon’ (a motor car pulled by mules). Every major city and town had a shanty town known as ‘Hoovervilles’ to house the homeless by 1930. Homes in Hoovervilles were makeshift shacks that were usually built on wasteland with no water, sanitation (including sewerage disposal and waste collection), or power. Homeless people were termed ‘Hobos’ and constantly harassed by the police.
Evaluation: Who had the worst experience during the Depression?
I think ethnic minorities I general had the worst experience during the Depression, specifically black Americans. Even though black Americans were typically the last to be hired and usually the first to be fired, when employed they would usually be construction workers, farmers, and sharecroppers. Construction worker rates dropped and as we know farmers struggled therefore black Americans had the same issues in these lines of work in addition to racial discrimination.
Who was President Herbert Hoover?
A Republican president between 1929 to 1933.
Describe President Hoovers ideology.
- Hoover believed in Laissez-faire- the idea that the economy would fix itself
- He also believed that it was the State’s responsibility (not Federal) to provide aid for the people
- He believed in “Rugged individualism”
- Hoover blamed those outside the US for the Depression.
- Germany owed reparations.
- Allies owed US for loans.
- Hoover negotiated a moratorium (temporary suspension) on inter-Allied war debts and cancelled Germany’s payments to encourage international trade.
What 3 ways did Hoover attempt to stop the Depression with?
- The Smoot-Hawley Tariff (1930)
- The Reconstruction Finance Corporation (RFC)(January 1932)
- Emergency Relief and Construction Act (July 1932)
What was the Smoot-Hawley Tariff (1930)?
Where they raised import taxes (tariffs) to the highest level in US history, in an attempt to protect US economy from foreign competition.
Name a weakness of the Smoot-Hawley Tariff (1930).
This forced other countries to retaliate, following a suit and raise their own tariff rates.
What was the Reconstruction Finance Corporation (RFC) (January 1932)?
The first major departure from thee laissez fire approach. The RFC was given $2 billion of taxpayers’ money to directly assist banks and insurance companies in financial trouble. It aimed to help the US banking system with 90 percent of the money going into loans for small/ medium sized banks.
Name a strength and weakness of the Reconstruction Finance Corporation (RFC) (January 1932).
It did prevent a worsening of the depression but failed to encourage banks to lend more to businesses facing financial issues and possible bankruptcy.
What was the Emergency Relief and Construction Act (July 1932)?
After helping aid the banks, the next step was to help the unemployed. Passed on 21 July 1932, the Act was the USA’s first massive relief programme.
Name a strength and weakness of the Emergency Relief and Construction Act (July 1932).
It provided support for both businesses and individuals but by mid-1932 the depression was so deep that business/ public confidence was so low that they needed a dramatic change to end the crisis.
