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1

Explain why Congress passed Neutrality Acts in the years 1935 to 1937.

1. Congress did not want to get involved in hostilities with other nations- Senate did not ratify T.o.V 1919 -> Didn't join L.o.N b/c of collective security - Am. made it clear that it wanted no part in Eu. conflicts with Manchurian crisis 1931-33 when it continued to trade with Jap. - WSC + TGD made domestic issues much more pressing- America First Committee which supported isolation had 850k members at its peak Link: Such isolationist beliefs were made prominent after WW1 2. WW1 -> G submarine warfare- A sig. reason why Am. entered WW1 was b/c of G unrestricted submarine warfare sinking GB ships with Am. passengers and the public outrage of this- 1st Neutrality Act clearly states that US citizens travelling on ships belonging to belligerent nations did so at own risk-Congress wanted to ensure that US citizens didn't travel on ships of belligerent nations - prevent war fever if the situation were to re-occur b/c Am. passengers would have been warned by the gov. Link: Another crucial factor to why Am. joined WW1 was because they could not afford to allow allies to lose 3. WW1 -> loans to allies- Allies -> 2.5 bill, only 27 mill to Central powers-> this placed pressure on Am. gov to join WW1 - 1936 2nd Neutrality act added embargo on loans and credit to belligerent nations- Congress wanted to ensure bankers didn't give loans to belligerents to ensure the situation wouldn't be repeated

2

Explain why President Hoover was unpopular in 1932

1. Hoover’s methods of increased taxation -The Revenue Act of 1932 increased personal income taxes dramatically- brought back a variety of excise taxes from WW1-higher income taxes involved an increase by 4%-large surtax on higher-income earners, leading to a total tax rate of anywhere from 25 to 63%. -sank America into a deeper depression-unemployed such as farmers or those whose wages had been cut struggled to pay these taxes. -Most Ams already suffering from TGD forced to pay taxes ->although federal lending may have increased, consumerism decreased which led to a greater economic decline. Link: Alongside increasing taxation, Hoover also increased federal spending by increasing tariffs. 2. Smoot-Hawley tariff in 1930-increased tariffs significantly on a wide variety of imported goods, creating the highest tariff rates in U.S. history. -raised the average tariff by some 20 percent-prompted retaliation from foreign governments-> Within 2 yrs some 24 countries adopted similar duties reducing global trade. -U.S. imports + exports to Eu fell by 2/3 between 1929-32Link: Federal spending raised from increased taxes and tariffs were not only spent on improving agriculture and encouraging public work schemes, but also the banking system3. National Credit Corporation in 1931 -Hoover’s attempt at creating a voluntary board composed of bankers and insurance executives in order to secure failing banks. -received $500 million in gov funds -unsuccessful b/c the banks didn't support and voluntary. -Federal Home Loan Bank Act 1932 = more specific therefore saw to specific improvements. -rate of foreclosures dropped noticeably after banks began functioning-change came too late for thousands of families

3

Explain why the US economy declined in the years 1930 to 1932

1. WSC = trigger -late Oct 1929, panic in stock market led to a loss of 4 bill -As an attempt to prop up the stock market, on the 26th of October bankers paid out $40 billion dollars to stabilise prices. -but brokers who had sold shares on the margin borrowed money from these banks which demanded money back. -> mills of investors can't repay debts so sell shares. -> Panic stricken brokers + investors sold over 16 million shares in 1 day -slumped value of the stock market by 14 bill- By 13thNov, 1929, over 30 bill disappeared from Am econ.Link: Although investors and brokers made up only 5% of the American population, banks which supported the majority of the American population had also suffered from this loss.2. Bank Failure-During 1920s, average 70 banks failing/year nationally. -After WSC, during the first 10 months of 1930, 744 banks failed which -10 times as many-- 9k banks failed during 30s. -3k in 1932 alone-By 1933, depositors saw $140 bill disappear through bank failures. -no such thing as deposit insurance. If a bank failed, you lost the money -millions of Americans loss all their savings. -Without money, consumerism reached an all time low which caused the US economy to decline greatly.Link: Although banks suffered a massive loss from the wall street crash, it was the agricultural economy that caused many of them to foreclose. 3. The declination of the agricultural economy = long term- early 1920’s farmers overproduced surplus in cotton, corn, rice, tobacco, wheat and hogs. -value of farm produce fell from 1919-21 by 6 bill.-Farmers unable to repay loans -> debt. -When agricultural prices and incomes fell more steeply than usual in 1930, many farmers went into bankruptcy. -rural banks failed in alarming numbers ->harvest of 1930. -By Nov and Dec so many rural banks had defaulted on their obligations that urban banks also began to fail. -> wave of bank failures frightened depositors into withdrawing their savings, further deepening the crisis.

4

Why did the atomic bomb in 1945 strengthen the USA’s position as a world power?

1. The use of the atomic bombs in 1945 undoubtedly, saved American lives and money as it prevented a full scale invasion of Japan. - If the a bombs not used Am full invasion of Jap’s home islands, war would have been elongated. -A ground invasion would have resulted in nearly immeasurable more casualties. -A joint war plans committee ->46k Ams would die in an invasion of Kyushu and later Honshu. -175k Am casualties not out of the question. -Alongside an increase in casualties which would lower Am civilian morale and consumerism, the war cost Am $341 billion in 1945. -by dropping the a. bombs Am able to remain out of debt. Link: The quick end to the second world war by the use of nuclear warfare gave America unprecedented economic strength. -Am soil physically untouched by war besides PH -> diff if Am had invaded Japan. -Am received benefits of war econ without cost of recovery unlike most of Europe or Japan. -treaty of San Francisco, 1952, formally ended Jap's as imperial power, forcing Jap compensation to Allied civilians + pow who had suffered under Jap war crimes. -This treaty made extensive use of the UN Charter and the Universal Declaration of Human Rights -> Am. goals-Although unjustified due to Jap civilian death, a.bombs led to fear of defying Am gov, allowing Am to strip other nations of their empire whilst expanding their own econ. eLink: Much of the worldwide fear of America came from it’s evident nuclear capacity after the use of atomic bombs in 1945. 3. This allowed America to have a higher tier of warfare above Russia, essentially causing America to become the sole super power in 1945. - FDR ensured Manhattan project 1942 kept a secret. -surprise of a bombs allowed Am an advantage over USSR ->Stalin vulnerable- Despite great alliance WW2, once common enemy removed, USSR once again enemy to capitalism and democracy. -a bombs allowed Am to broker peace treaty towards Am’s favour with USSR in 1947. - Russia strengthened from the war -> Am able to limit USSR expansion -> remain the sole world power in the

5

Explain why FDR won the Presidential election of 1932

1. Hoover's failures-Smoot-Hawley tariff in 1930-U.S. imports + exports to Eu fell by 2/3 between 1929-32-The Revenue Act of 1932 increased personal income taxes dramatically-sank America into a deeper depression-Most Ams already suffering from TGD forced to pay taxes ->although federal lending may have increased, consumerism decreased -> greater econ decline. Link: Both increasing tariffs and taxes made Hoover seem uncaring and not understanding of the Am. public2. Hoover unpopular-summer 1932 -> bonus marchers, WW1 veterans, marched in Washington DC demanding payment of $500. -Hoover -> tanks, the army and tear gas to disperse the marchers. 2 died. -Increased Hoover's unpopularity-FDR -> end to unpopular prohibition- public tired of problems Prohibition had caused – the gangsters, killings, crooked dealings by big businessesLink: Hoover's failure and unpopularity during TGD named him as the 'do nothing' president2. FDR promised to do something - policies and ideals were much more popular and suitable for the situation v. Hoover rugged individualism + self-help -FDR promised ‘New Deal’, provide jobs, relief for poor, and unemployed, action to help industry and agriculture and resolve the banking crisis. -Roosevelt promised gov would help fund charities + construction projects-Hoover rarely funded relief programmes

6

Explain why President Hoover was unpopular in 1932

1. Hoover’s methods of increased taxation -The Revenue Act of 1932 increased personal income taxes dramatically- brought back a variety of excise taxes from WW1-higher income taxes involved an increase by 4%-large surtax on higher-income earners, leading to a total tax rate of anywhere from 25 to 63%. -sank America into a deeper depression-unemployed such as farmers or those whose wages had been cut struggled to pay these taxes. -Most Ams already suffering from TGD forced to pay taxes ->although federal lending may have increased, consumerism decreased which led to a greater economic decline. Link: Alongside increasing taxation, Hoover also increased federal spending by increasing tariffs. 2. Smoot-Hawley tariff in 1930-increased tariffs significantly on a wide variety of imported goods, creating the highest tariff rates in U.S. history. -raised the average tariff by some 20 percent-prompted retaliation from foreign governments-> Within 2 yrs some 24 countries adopted similar duties reducing global trade. -U.S. imports + exports to Eu fell by 2/3 between 1929-32Link: Federal spending raised from increased taxes and tariffs were not only spent on improving agriculture and encouraging public work schemes, but also the banking system3. National Credit Corporation in 1931 -Hoover’s attempt at creating a voluntary board composed of bankers and insurance executives in order to secure failing banks. -received $500 million in gov funds -unsuccessful b/c the banks didn't support and voluntary. -Federal Home Loan Bank Act 1932 = more specific therefore saw to specific improvements. -rate of foreclosures dropped noticeably after banks began functioning-change came too late for thousands of families

7

Explain why FDR launched the second New Deal.

1. 1st ND did not extend far enough. -attracted much opposition. -Political developments on the left proposed far-reaching economic reforms -> popular with Am public -> aware that issues such as industry, housing and agriculture still in depression. -ND tended to benefit white, middle-class rather than the majority of Americans. -eg. housing felt a wider range of legislative action was needed -in order to ensure support 2ND necessaryLink: Left wing criticism that the first new deal did not extend far enough brought a spirit of reform into the government. 2. FDR did not want to be forced into accepting the proposals of others. -The Farmer-Labour party 1918, began to grow masses of support -by 1934 50 supporters in both houses-Radical change progressed through their programme. -max hours of work and min wages, greater investment in public works, higher taxes for the wealthy + social security. -radical senators eg. Wagner -> preparing own proposals. -climate in new Congress was for action FDR prevent this. -didn't want to surrender initiative in preparing ND leg. -important that he had power to act in his own way with his own measures before being forced to put forward ideas which he many not have agreed with. Link: Alongside the proposals of others, FDR also refused to accept control by the Supreme Court. 3. Much of the first New Deal legislation had begun to be overturned -> replace overturned leg. -New measures needed to be introduced to replace acts - eg. NRA, SC declared unconstitutional. -NRA managed to make significant beneficial output through public work schemes. -PWA funded with $3.3 bill with the hope that expenditure on public works would stimulate the economy. ->put hundreds of thousands of people to work, building nearly 13 thousand schools, 50 thousand miles of roads among other things. -pumped billions of dollars into the economy which is why it needed to be retained.

8

Explain why the US economy declined in the years 1930 to 1932

1. WSC = trigger -late Oct 1929, panic in stock market led to a loss of 4 bill -As an attempt to prop up the stock market, on the 26th of October bankers paid out $40 billion dollars to stabilise prices. -but brokers who had sold shares on the margin borrowed money from these banks which demanded money back. -> mills of investors can't repay debts so sell shares. -> Panic stricken brokers + investors sold over 16 million shares in 1 day -slumped value of the stock market by 14 bill- By 13thNov, 1929, over 30 bill disappeared from Am econ.Link: Although investors and brokers made up only 5% of the American population, banks which supported the majority of the American population had also suffered from this loss.2. Bank Failure-During 1920s, average 70 banks failing/year nationally. -After WSC, during the first 10 months of 1930, 744 banks failed which -10 times as many-- 9k banks failed during 30s. -3k in 1932 alone-By 1933, depositors saw $140 bill disappear through bank failures. -no such thing as deposit insurance. If a bank failed, you lost the money -millions of Americans loss all their savings. -Without money, consumerism reached an all time low which caused the US economy to decline greatly.Link: Although banks suffered a massive loss from the wall street crash, it was the agricultural economy that caused many of them to foreclose. 3. The declination of the agricultural economy = long term- early 1920’s farmers overproduced surplus in cotton, corn, rice, tobacco, wheat and hogs. -value of farm produce fell from 1919-21 by 6 bill.-Farmers unable to repay loans -> debt. -When agricultural prices and incomes fell more steeply than usual in 1930, many farmers went into bankruptcy. -rural banks failed in alarming numbers ->harvest of 1930. -By Nov and Dec so many rural banks had defaulted on their obligations that urban banks also began to fail. -> wave of bank failures frightened depositors into withdrawing their savings, further deepening the crisis.

9

Explain why there was opposition to the New Deal.

1. Political Opposition from LW - Socialists + communists wanted end to capitalist economic system- nationalisation of industry was necessary to bring Am. out of TGD- Coughlin -> inflationary measures to be implemeted - greater use of silver coinage - Huey P. Long -> 'Share our Wealth' campaign 1934 gained popular support amongst WC-> $5k homestead allowance + min wage $2.5k a year Link: Similarly FDR faced political opposition of ND from RW2. Political Opposition from RW Cons. Reps- Gov. intervention went too far -> socialist + un-am. - believed it damaged BB- ND policies allowed greater union organisation + right to collective bargaining -> opposed BB control over trade- Liberty League -> Rep politicians + industrialists -> main aim to uphold Constitution against ND policies b/c believed they undermined itLink: The majority of the Supreme Court were RW Cons. Reps3. Supreme Court -> believed it cost US its democracy- US gov too much control over industry- National Industrial Recovery Act -> Schechter Poultry Corporation v US May 1935 - Supreme Court ruled NIRA unconstitutional b/c couldn't regulate intrastate trade - AAA -> US v Butler Jan 1936- unconstitutional -> tax couldn't be used to transfer wealth directly from person to person

10

Explain why prohibition was ended

1. Economic Considerations- Loss of state revenue huge- NYC received almost 75% of revenue on alcohol sales - prohibition had cost federal gov. $11 bill in lost taxation- cost more than $300 mill to enforce- Economic issues took on greater importance b/c TGD Link: Similarly, business elites also felt an economic loss from prohibition 2. Business elite- Big industrialists who had supported Prohibition now had a change of heart- Rockefeller Jr who had donated >500k to Anti-Saloon League -> called for its repeal published in NY times- stated disappointment in growth of speakeasies, increased crime + general disregard for law - Pierre du Pont of General Motors also campaigned for repeal at head of association against prohibition amendment -> both believed work ethic had decreased b/c prohibitionLink: The views of such business elites were the views of the many 3. Shift in public opinion- prohibition did not eradicate social issues - widespread disregard for law, corruption + underground drinking - growth of repeal organisations -> Women's organisation for national prohibition reform had >1.5 mill members by 1933 - 19th amendment -> politicians had to take notice

11

Explain why the USA was so prepared for war in December 1941

1. Cash and carry clause in 3rd Neutrality act, 1937- meant that Am. was producing arms- allowed countries to buy arms - bias -> following invasion of China by Jap in 1937- FDR didn't invoke act on both sides- GB ships used to deliver arms to Chinese Link: Similarly, Lend-lease act favoured Chinese, GB and USSR2. March 1941 Lend-Lease Act passed -> allowed aid to be given to belligerents - under scheme USA supplied war materials to GB, China and later Soviet Union- Lend-lease marked end of isolationism + neutrality- US ships escorted British convoys part way across Atlantic as far as Iceland-> enabled mood of public to shift against G after invasion of Soviet union June 1941Link: Support of the British was yet again prominent in the Atlantic Charter3. Atlantic Charter - Churchill + FDR met in Newfoundland August- joint statement of war aims-> gave Churchill a pledge that if USA joined war Hilter would be main priority- Direct result -> Selective Service Act Sept 1940 - compulsory for all men 21-36 to register for military service- signalled readiness to prepare for war when time came

12

Why did FDR use ‘fireside chats’ during his term in office?

1. Deal with crisis of banks - Loss of confidence in banks -> withdrawal + foreclosure- first 100 days bank holiday + emergency banking legislation - FDR knew he had to ensure Am. public in order for legislation to be effective - On March 12, 1933, delivered a relatively informal address on the banking crisis-praised the “fortitude and good temper with which everybody [accepted] the hardships of the banking holiday.” -When banks opened again, the panicked “bank runs” that people had feared did not materialise-public confidence had been restored in some measure for the time being.Link: With the success of first fireside chat, FDR continued to use this technique to gain public support for policies2. Public support for policies - 90 percent of American households owned a radio. - potential of mass media to communicate directly and intimately with the public- 30 total radio addresses from March 1933 to June 1944. - topics ranged from domestic issues such as the economic policies of the New Deal, drought and unemployment, to Europe’s battle with fascism and American military progress in Europe and in the Pacific during World War II.Link: FDR's fireside chats not only helped to increase support for his policies, but also for his personal popularity 3. Popularity- FDR only president to serve 3 terms-invoked memories of the Founding Fathers, Abraham Lincoln + inspirational figures from Am’s past. -“The Star Spangled Banner” was played after each chat ended, underlining that patriotic message. -Through TGD and war, the reassuring nature of the fireside chats boosted the public’s confidence and Roosevelt’s approval rate -worker is quoted as saying, “is the only man who knows that my boss is a son of a bitch.”-undoubtedly contributed to his unprecedented number of election wins.

13

Explain why unemployment declined in the USA in the years 1939 to 1941

1. Mobilisation for war -growing labor shortage in war centres, sound trucks going street by street begging for people to apply for war jobs.-Greater wartime production created millions of new jobs- draft reduced no. of young men available for civilian jobs.-great was the demand for labor that millions of retired people, housewives, and students entered the labor force, lured by patriotism and wages.Link: Before WW2, women had a limited range of jobs to fill which left most unemployed 2. Women- Women joined the workforce to replace men who had joined the forces- Roosevelt stated that the efforts of civilians at home to support the war through personal sacrifice was as critical to winning the war as the efforts of the soldiers themselves. - "Rosie the Riveter" became the symbol of women labouring in manufacturing. - 3.5 million women entered workforce during WW2 Link: Similarly, Af.Am's were also given greater employment opportunities due to the war 3. Af. Am's- Over 2.5 million African-American men registered for the draft, and black women also volunteered in large numbers.- 125,000 African Americans served in U.S. military WW2- Large migration from south to north during WW2 - booming defence industries, employed black workers - Large numbers entered the construction trades and transportation, and a few obtained white-collar jobs in banks, insurance firms, and public utilities