Origins of Cold War Cascade

America, 1920-45 [Revision Cascade]

This Cascade will give you points and ideas for writing an answer about any of the topics in the list. And, when it comes to revision, you can use it to test your memory of the points and ideas you might want to raise in the exam. Click on the yellow arrows to reveal the paragraph points, and again to reveal ideas for developing the point. I have given you five points for every topic but, in practical terms for the exam, you will probably get away with remembering three or four.
1. 1920s: Why did the USA prosper in the 1920s? a. First World War European countries were buying American goods to supply the war, whilst the war meant that European firms were unable to compete b. Government policies Laissez faire and protectionism helped firms to make a profit c. Improvements in production Mass-production techniques such as the assembly line and time-and-motion studies increased productivity d. Consumer spending Large amounts of money in Americans’ pockets increased demand – especially for cars and domestic ‘gadgets’ . e. Buying stocks and shares This created a supply of money for investment in American firms 2. 1920s: Why did industrial production increase? a. Mass production on assembly lines Mass production on assembly lines (by 1927, Ford was making a new Model T every ten seconds) allowed ‘economies of scale’ – a Model T fell from $850 in 1911 to $295 in 1920 b. ‘'Time and motion’ studies ‘Time and motion’ studies improved efficiency and reduced waste c. New inventions New inventions – rayon cloth, Bakelite (an early form of plastic) – created ‘new’ industries d. Spin-off effects Especially the boom in the car industry led to expansion in steel, glass, rubber, petrol, road-building and house-building . e. Buying stocks and shares This created a supply of money for investment in American firms 3. 1920s: How did the automobile industry stimulate the US economy? a. Spin-off industries Raw materials – automobile-building stimulated the steel, glass and rubber industries b. Oil industry The need for petrol stimulated the oil industry c. Road-building The need for roads stimulated the construction industry d. Suburbia Rich people could move out of town to ‘the suburbs’ – this stimulated house-building . e. Detroit prospered Detroit – the world centre of the motor industry – prospered and grew rapidly; 5 million vehicles were produced there in 1929 4. 1920s: How did the automobile industry affect US society? a. Economic prosperity Automobile-building stimulated the steel, glass and rubber, petrol and building industries b. Personal mobility More than 15 million Model-Ts had been built by 1927; this represented a huge increase in personal mobility c. Status An expensive car was a status symbol d. Suburbia Rich people could move out of town to ‘the suburbs’ – this stimulated house-building . e. Moonshine and bootleggers Bootleggers used cars and lorries during the prohibition to transport moonshine 5. Increased consumer spending: causes a. High wages Average wages increased by 27% in the 1920s, which increased spending b. Adverts Adverts (including radio broadcasts after 1921) encouraged spending c. Hire purchase Hire purchase (the ‘never-never’) with weekly instalments (‘easy payments’) d. Mail order Mail order increased the market for consumer goods . e. Travelling salesmen There were perhaps half a million commercial travellers going door to door selling everything from bibles to heroin 6. The stock market boom: facts a. Based upon industrial confidence People speculated because they believed that prosperity would go on rising forever b. Bull market Share prices rose 500%, 1924–1929 c. Speculation People were speculating (buying low to sell high) – there were 600,000 speculators by 1929 d. Buying ‘on the margin’ People were allowed to borrow 90% of the cost of the shares; speculators borrowed $9 billion in 1929, hoping to pay back the loans from the rising prices . e. Corruption e.g. insider trading, and selling shares for firms which did not exist 7. Republican government policies: facts a. Laissez-faire In the 1920s, Republican presidents (Harding, 1920–1923 and Coolidge, 1923–1928) believed that government should let business do as it wanted (‘Rugged individualism’) b. Protectionism The Fordney-McCumber Act (1922) kept out imports by raising tariffs c. Trusts and Cartels The government allowed trusts (huge super-corporations), and cartels (alliances of companies) which fixed prices d. Low income tax The government reduced income tax (which favoured the rich) and instead increased tariffs (which hurt the poor) . e. Weak trade unions The courts allowed American businessmen to forbid workers to join trade unions (‘yellow dog’ contracts) and to break strikes by force 8. The boom in the 1920s: facts a. Economic growth of 40% The US economy grew by 40% b. Automobiles The number of automobiles on US roads rose from 8 to 23 million c. Millionaires The number of millionaires rose from 7000 to 35,000 d. Domestic gadgets A craze for ‘gadgets’ (fridges, washing machines, vacuum cleaners, telephones) . e. Hoover promised ‘triumph over poverty’ In 1928, Herbert Hoover proclaimed ‘triumph over poverty’ and promised Americans ‘a chicken in every pot and a car in every backyard' 9. The boom in the 1920s: Industries which boomed a. Automobiles Automobiles (5 million Model Ts were sold in 1929) b. Electrical goods Electrical goods (the number of radios rose from 60,000 to 10 million in the 1920s) c. Construction Construction (e.g. the architect Frank Lloyd Wright) d. The film industry The film industry – Hollywood (first ‘talkies’, 1927); 100 million Americans went to the movies every week . e. Entertainment and sport Entertainment (social life boomed – e.g. jazz, speakeasies, flappers etc.) and sport (baseball – Babe Ruth earned $80,000 a year) 10. 1920s: How far was 1920s America a divided society? a. Rich versus poor 5% of the people owned a third of the wealth; 40% of the population lived in poverty b. New industries versus old industries Agriculture, textiles and coal declined; electrical good, automobiles and oil boomed c. Black American versus KKK Many black Americans suffered discrimination and had low-paying, menial jobs; Ku Klux Klan membership grew from 5000 in 1920 to 5 million in 1925 d. Immigrants versus WASPS White Anglo-Saxon Protestants hated the immigrants from eastern Europe and Asia and imposed immigration quotas . e. Flappers versus traditional Many older people disagreed with the flappers and jazz; the Anti-Flirt Association opposed the new dances, the Hays code regulated sexual morality in films 11. 1920s: Why was the USA isolationist? a. Monroe Doctrine, 1823 The ‘Monroe Doctrine’ (1823) was the American policy to stay out of European affairs b. First World War After the horrors of the First World War, America in the 1920s became again isolationist – Americans such as Senator Borah did not want to get dragged into European affairs c. Racism White Anglo-Saxon Protestants (WASPS) hated immigrants – especially the Japanese and Chinese, and poor Catholics and Jews from Eastern Europe d. The Red Scare Americas feared Communism, and feared that immigrants from Russia and eastern Europe might be ‘infected’ . e. Protectionism Americans wanted to protect American industry from outside competition 12. Isolationism: effects a. Foreign policy The USA kept out of world politics – this weakened American influence in the world b. League of Nations US isolationism weakened the League of Nations and helped the rise of Hitler c. President Harding, 1920 Warren Harding was elected to put ‘America first’ and ‘return to normalcy’ d. Tariffs The government imposed tariffs to protect American industry . e. Immigration quotas The Republican government imposed quotas to prevent immigration 13. 1920s: Why did some groups not prosper? a. Agriculture was in recession Machinery had led to overproduction, which lowered prices and profits, and cotton was plagued by the boll weevil b. Old industries The ‘old industries’ (coal, wool and cotton) were in decline (cf. oil and rayon) c. Unemployment Unemployment ran at 2 million people throughout the 1920s d. Black Americans 1 million black farm workers lost their jobs in the 1920s, many black Americans suffered discrimination and had low-paying, menial jobs . e. Native Americans Native Americans lived in poverty and repression on reservations 14. 1920s: Who did not prosper? a. Lowest 60% were below the poverty line In 1929, 60% of Americans lived below the poverty line (earning $5 a day) b. Farm workers wages Farm workers wages were only a third of industrial workers’ wages c. Black Americans Many black Americans lived in poverty; New York's black Harlem district was overcrowded and segregated d. The unemployed There were few, inadequate, welfare benefits . e. Top 5% were super-rich A third of the wealth was owned by the top 5% of the people; 40% of the population lived in poverty 15. 1920s: Why were some Americans racist? a. Left-over attitudes from slavery In the south, black people were lynched, and ‘Jim Crow’ laws segregated black and white b. Isolationism After the horrors of the First World War, America in the 1920s became again isolationist – Americans wanted to ‘keep to themselves’ and ‘shut out the world’ c. WASPs White Anglo-Saxon Protestants (WASPS) hated the Japanese and Chinese, and poor Catholics and Jews from rastern Europe d. KKK The Ku Klux Klan attacked Jews, Catholics, drunks, gamblers and black people; membership grew from 5000 in 1920 to 5 million in 1925 . e. Trade Unionists Trade unionists worried that immigrants would be cheap labour and take their jobs 16. Immigration: facts a. Immigration Law, 1917 The 1917 Immigration Law insisted that immigrants must be able to read English, and banned all immigration from China and Japan b. Palmer Raids, 1920 After anarchist bombs (1919) caused a 'Red Scare', Palmer, the US Attorney-General, ordered the arrest and deportation without trial of some 10,000 suspected Communists c. Emergency Quota Act, 1921 The 1921 Emergency Quota Act set a maximum of 357,000 immigrants a year d. Reed-Johnson Act, 1924 The 1924 Reed-Johnson Act set a maximum of 154,000 immigrants a year . e. Sacco and Vanzetti, 1927 Two Italian anarchists, Sacco and Vanzetti, were executed for a murder they did not commit; the jury refused to believe 107 Italian witnesses who swore they were not there 17. Discrimination against black people: facts a. Race riots There were race riots – e.g. in Chicago in 1919 b. Lynchings In the south, black people were lynched; one campaign claimed 3436 lynchings occurred 1889–1922 c. Jim Crow In the south, ‘Jim Crow’ laws segregated black and white; black people did not have the vote d. KKK The Ku Klux Klan attacked black people; membership grew from 5000 in 1920 to 5 million in 1925 . e. Trade unions and jobs Many trade unions had a whites only policy; in many industries black people were ‘last in, first out’; many black Americans had low-paying, menial jobs 18. Prohibition: causes a. First World War During the war, the government tried to reduce alcohol consumption to improve workers’ productivity and prevent absenteeism from work b. Temperance movement Organisations such as the Anti-Saloon League and the Women's Christian Temperance Union campaigned for its prohibition for 50 years c. Religion Many campaigners were religious and saw drink as a sin d. Women Female campaigners like Carrie Nation blamed alcohol for domestic violence and family poverty . e. Doctors It was known that alcohol caused cirrhosis and mental illness; the American Medical Association supported prohibition in 1919 18. Prohibition: facts a. #18th Amendment, Jan 1919 Prohibited the ‘manufacture, sale, or transportation of intoxicating liquors’ b. Volstead Act, Oct 1919 Defined an intoxicating liquor as anything over 5% proof c. The Untouchables Federal agents such as Eliot Ness (the ‘Untouchables’) were employed to stop the trade d. Moonshine, bootleggers and speakeasies Illegal moonshine was smuggled by bootleggers and sold in 250,000 speakeasies . e. Anti-prohibition movements Organisations such as the Movement for Repeal of National Prohibition were set up to try to get prohibition repealed 20. Prohibition: the impact on society a. The alcohol industry Saloons died out, and breweries went bankrupt – the beer-making town of St Louis went into recession b. Taxation Prohibition caused government problems because a seventh of all taxes came from taxes on alcohol c. Disrespect for the law During prohibition, it became fashionable for young people to go to a speakeasy for jazz, dancing, flappers and liquor d. Al Capone Gangsters such as Capone (and his 700 hit-men) bribed judges and police, ran protection rackets and murdered rivals (e.g. St Valentine’s Day Massacre, 1929) . e. #21st Amendment, 1933 In 1933, FDR admitted prohibition had failed and repealed prohibition 21. The Roaring Twenties: causes a. Growing surplus wealth Growing surplus wealth and a shorter working week let the entertainment industry grow b. Urban culture The new culture was based on towns (nightclubs, electricity and traffic) c. Widened horizons Horizons widened – films, records (‘78s’), the automobile, plane flights and radio (there were 508 radio stations by 1922) d. Disrespect for the law During prohibition, it became fashionable for young people to go to a speakeasy for jazz, dancing, flappers and liquor . e. Jazz High-tempo black music, played in nightclubs, and new jazz dances such as the Charleston and the Black Bottom became fashionable 22. Young people: facts a. Films ‘Talkies’ began with The Jazz Singer (1927), people worshipped movie stars like Charlie Chaplin; in 1930, 100 million Americans went every week b. Sport Millions enjoyed sports such as baseball (‘Babe’ Ruth earned $80,000 a year), boxing (Jack Dempsey) and golf (Bobby Jones) c. Nightclubs Millions enjoyed liquor, jazz and dancing d. Flappers Flappers (‘brainless, cigarette-smoking morsels of undisciplined sex’) smoked, drove and went out unchaperoned. Some were openly lesbian and/or wore men’s clothes . e. Radio The number of radios rose from 60,000 to 10 million in the 1920s; it widened people’s horizons and introduced them to jazz music 23. The film industry: consequences a. 100 million cinema-goers They were cheap (10 cents) – in 1930, 100 million Americans went every week b. Talkies ‘Talkies’ began with Al Jolson, The Jazz Singer (1927) c. Movie stars People worshipped movie stars and copied their looks and behaviour d. Charlie Chaplin and social issues Charlie Chaplin films such as Easy Street explored social issues (e.g. poverty, work) . e. Clara Bow and sexual freedom Films such as Clara Bow’s Rarin’ To Go included sexually lax characters 24. Women: facts a. Flappers Flappers (‘brainless, cigarette-smoking morsels of undisciplined sex’) smoked, drove and went out unchaperoned. Some were openly lesbian/wore men’s clothes b. Fashions Fashions: no corsets (flat chested), short daring dresses, bobbed hair, make-up c. Work Work: the number of working women rose to 10 million by 1929 d. Suffragettes Women were given the vote in 1920 . e. Most women were not flappers However most women still looked after their families without the household gadgets; most working women were in low-paid jobs 25. Weakness in the US economy: causes a. European competition European industry had recovered after the First World War (helped by US loans) and was competing with US firms b. Overproduction Overproduction in agriculture and the old industries lowered prices and profits c. Wall Street was overheating Insufficient controls on bankers and credit had allowed banks and brokers to lend $9 billion to stock-market speculators; they were vulnerable to a stock market crash d. Tariff wars Other countries had responded to US tariffs by raising their customs duties – this made it more difficult for American firms to export . e. Unequal distribution of wealth The top 5% owned a third of the wealth, so money was being saved not spent, so demand was reduced and industry faltered 26. Tariffs: causes a. Isolationism After the horrors of the First World War, America in the 1920s became again isolationist – Americans wanted to ‘keep to themselves’ and ‘shut out the world’ b. European recovery After 1919, European industry and agriculture recovered and began to challenge America industry c. High American wages American wages were high, and US businessmen feared cheap imports d. Overproduction in agriculture Overproduction was causing a depression in US agriculture, and American farmers wanted to keep out cheap foreign food . e. Income Tax In 1913, President Wilson introduced the 16th amendment, bringing in Income Tax; this was hated by the Republicans and high tariffs allowed them to reduce it 27. Tariffs; policy a. Emergency Tariff Act, 1921 President Harding passed an Emergency Tariff Act increasing tariffs b. Fordney-McCumber Act, 1922 Set the highest tariffs in history (up to 400%) c. ‘Scientific tariff’ The ‘scientific tariff’ was the first principle of the Fordney-McCumber Act – the lower the wages in the country of origin, the higher the tariff d. ‘American selling price’ The ‘American selling price’ was the second principle of the Fordney-McCumber Act – the higher the cost in America, the higher the tariff . e. Tariff Commission A Tariff Commission continuously monitored imports and suggested changes in tariffs 28. Tariffs: effects a. Income tax reductions Tariffs allowed the government to reduce income tax on the rich; this led to an accumulation of saving, and helped cause the Depression of the 1930s b. High prices Tariffs kept prices high (and harmed poor people) c. American firms became inefficient Tariffs allowed American firms to become inefficient d. World trade was damaged Tariffs encouraged other countries to retaliate, and thus blocked world trade, which helped to cause the 1930s world depression . e. Foreign loan repayments Tariffs harmed the ability of foreign countries such as Britain and Germany to repay their loans to America 29. Wall Street Crash: causes a. Wall Street was overheating Share prices had risen 500% 1924–29, and there was speculation and corruption – e.g. insider trading, and selling shares for firms which did not exist b. Speculators There were only 600,000 speculators, but their rash buying had pushed prices too high c. Buying on the margin Buying ‘on the margin’ meant that, when prices fell, shareholders would be unable to pay back the loans and would go bankrupt d. Roger Babson Respected economist Roger Babson predicted a crash, thus helping to cause it . e. Panic-selling When prices began to fall, there was a loss of confidence, leading to panic selling, as shareholders tried to get out before they lost everything 30. Wall Street Crash: events a. Bear scare, Mar 1929 Prices fell steeply, but banker Charles Mitchell of the National City Bank lent speculators $25 million to keep on speculating b. Black Thursday, 24 Oct 1929 Black Thursday: 13 million shares were sold in a panic, and prices crashed; Mitchell and the banks bought $250 million of shares, and prices stopped falling c. Black Monday, 28 Oct 1929 Prices began to fall again, and 9 million shares were sold at falling prices d. Black Tuesday, 29 Oct 1929 Crash: 16 million shares sold, $10 billion lost – US steel fell from $261 to $150; prices fell so fast that the tickertape machines could not keep up . e. Prices stopped falling, Nov 1929 Prices continued to fall until the middle of November 31. Wall Street Crash: consequences a. Triggered a Depression Long-term weaknesses meant that the US economy was not robust enough to weather the Crash; the Crash triggered, but did not cause, the Depression b. Banks and brokers Banks and brokers had lent $9 billion to the shareholders; now they went bankrupt too, causing a financial crisis c. American businesses The banks stopped lending money to American firms, which went bankrupt d. European recession The banks demanded back their loans to European firms; this caused depression in Europe, which stopped buying American goods (so American firms wet bankrupt) . e. Fall in demand People ruined by the Crash, or sacked in the aftermath, stopped spending, which led to falling demand and more firms went bankrupt (‘the cycle of depression’) 33. The Depression: causes a. The Wall Street Crash By damaging banking; the Crash triggered the Depression; weaknesses in the American economy meant it was ill-equipped to cope b. Smoot-Hawley Tariff, 1930 The government raised tariffs (Smoot-Hawley Tariff, 1930); this provoked retaliatory rises by 60 other countries, which reduced American exports c. Federal Reserve The Federal Reserve raised interest rates, which pushed more businesses into bankruptcy d. Dust Bowl The Dust Bowl (erosion of over-farmed soils in the Midwest) ruined many farmers . e. Maldistribution of wealth 5% owned a third of the wealth (they saved not spent); 40% lived in poverty – the falling demand ruined sales, profits and the economy 34. The Depression: economic effects a. Production and wages fell Production fell by 40%, wages by 60% b. 10,000 banks went bankrupt 10,000 banks went bankrupt as a result of the financial crisis after the Crash; there was a panic of 3 March 1933 – $110 gold paid out to foreign banks c. 20,000 businesses went bankrupt Many firms went bankrupt (20,000 in 1932) d. 13 million unemployed The number of unemployed rose to 13 million (quarter of the working population); up to three-quarters of black workers were unemployed in some southern towns . e. Old industries Old industries were badly hit – in one steel town, 80% of workers were unemployed 35. The Depression: social effects a. Business and industry collapsed Production and wages fell, thousands of banks and firms went bankrupt, 13 million were unemployed, especially in the ‘old industries’ b. Social consequences e.g. soup kitchens, bread lines, hoovervilles, hobos, the Bonus Army, the Iowa farm strike, suicides c. Modern industries expanded The ‘new industries’ (electrical goods, chemicals) continued to grow rapidly d. Falling prices increased prosperity Prices fell by 50%, so people in a job were better off during the Depression . e. Continued development The Empire State Building was opened in 1931, and the 1930s saw ‘nylons’, the first TV channels, the expansion of air travel, movie-going and the first beer cans 36. Unemployment: effects a. Soup kitchens and bread lines There was no welfare system for the unemployed – so there was poverty: men with placards begging for a job, soup kitchens (one run by Al Capone) and ‘bread lines’ b. Hoovervilles and hobos People lost their homes; ‘Hoovervilles’, hobos and migrant workers (Of Mice and Men); midwestern farmers moved to California (The Grapes of Wrath) c. Bonus Army The ‘Bonus Army’ (20,000 ex-soldiers) demanded their pensions early, and set up a Hooverville in Washington to campaign for it d. Iowa Farm Strike There were riots and violence (e.g. the ‘farm strike’ in Iowa 1932–1933, when out-of-work farmers and labourers attacked food trucks and burned bridges) . e. 23,000 suicides There were 23,000 suicides in 1932 37. Hoover’s government and the Depression: facts a. Mexican Repatriation Programme, 1929 A scheme to reduce unemployment by sending 50,000 Mexican immigrants back to Mexico (this continued until 1937) b. Smoot-Hawley Tariff, 1930 The government raised tariffs (Smoot-Hawley Tariff, 1930); this provoked retaliatory rises by 60 other countries, which reduced American exports c. Committee for Unemployment Relief, 1931 Hoover’s Committee for Unemployment Relief advised charities how to help the unemployed, and the government provided $300 million unemployment pay d. Public Works Schemes, 1929–1932 The government $4000 million for public works schemes (e.g. the Hoover Dam) . e. Reconstruction Finance Company, 1932 The RFC gave $2billion in loans to business and state government 38. Hoover's unpopularity: causes a. Revenue Act, 1932 To pay for his anti-recession programme, Hoover raised income tax on the highest incomes from 25% to 63% b. Blamed for the Depression ‘In Hoover we trusted, now we are busted’ and mocked his promise of ‘a chicken in every pot’; people knew his policies were not ending the Depression c. Bonus Army Hoover sent the army to attack the Bonus Army and burn the Hooverville; this was seen as a wicked attack on war heroes d. 1932 election campaign Cinemas did not show his picture because people booed, and his campaign train was pelted with eggs and rotten fruit; he made only 9 radio speeches . e. Assassination attempts The Secret Service stopped many attempts to assassinate the president, including a suicide bomber 39. The election of Roosevelt: causes a. Polio Roosevelt had polio, so he had suffered, and was admired as a ‘fighter against adversity’ b. New York State Governor As Governor of New York State he had tried many ideas to combat the Depression c. He blamed the rich FDR blamed the bankers and the rich, which appealed to poor people d. He offered a New Deal FDR promised ‘a New Deal for the American people’, including public works programmes, welfare, support for industry and agriculture and banking reform . e. Landslide election victory FDR got 23 million votes (42 states); Hoover got 16 million votes (six states) 40. Roosevelt: How he dealt with the Depression a. Public confidence His polio, inaugural speech, and the fact that he blamed the rich and liked a beer made him popular with people, who saw him as ‘one of us’ b. Hundred Days An intensive period of government reforms and intervention, March–June 1933 c. Banking reforms The bank holiday, the Glass-Steagall act and the Securities and Exchange Commission stabilised and restored confidence in the banks and Stock Exchange d. Alphabet agencies Helped industry and agriculture, and set up a system of public works and poor relief for the poor and unemployed . e. Second New Deal The Second New Deal (Wagner, Social Security, National Housing and Fair Labour Acts) set up a state system of social security 41. Roosevelt: How he restored confidence a. New Deal, 1933–1935 FDR promised ‘a New Deal for the American people’, including public works programmes, welfare, support for industry and agriculture and banking reform b. Inauguration speech, 4 Mar 1933 In his inauguration speech, he said: ‘The only thing we have to fear is fear itself’ c. Fireside chats, His fatherly ‘fireside chats’ on the radio explained his policies, built up support and criticised his opponents d. He blamed the rich FDR blamed the bankers and the rich, which appealed to poor people, who saw him as ‘one of us’ . e. Beer Act, 1933 The 1933 Beer Act abolished Prohibition – this made him popular, especially his comment: ‘I think this would be a good time for a beer.’ 42. Roosevelt: How he solved the banking crisis a. Bank holiday, 4 Mar 1933 Roosevelt closed all banks for four days, while their books were audited by the government; only those strong enough to operate safely were allowed to reopen b. Fireside Chat, 12 Mar 1933 Roosevelt gave his first fireside chat, assuring people that they could trust the banks with their savings; this re-established confidence in the banks c. Hoarding gold forbidden, Apr 1933 Executive Order 6102 forced people with gold to sell it to the Federal Reserve in exchange for dollars; this stopped them hoarding and made them use currency d. Glass-Steagall Act, Jun 1933 The Glass-Steagall Act set rules for lending money safely for banks to obey . e. Securities and Exchange Commission, 1934 The Securities and Exchange Commission reformed and ended corruption on the stock exchange 43. The New Deal: farmers, industry and depressed areas a. AAA The Agricultural Adjustment Administration paid farmers to reduce production, which increased prices – farmers were 50% better off by 1936 b. NRA The National Recovery Administration encouraged employers to pay fair wages and charge fair prices; companies were awarded the Blue Eagle symbol c. TVA The Tennessee Valley Authority built 21 dams and modernised the Tennessee Valley (forests to stop soil erosion, power stations, water sports) d. CWA Civil Works Administration (Works Progress Administration after 1935) provided small work schemes for 2 million unemployed as writers, actors, photographers . e. PWA The Public Works Administration employed people on large-scale schemes such as San Francisco’s Golden Gate Bridge, dams, airports and highways 44. The New Deal: poor and unemployed a. CCC The Civilian Conservation Corps gave environmental work to 2.5 million young unemployed volunteers b. FERA The Federal Emergency Relief Administration helped the homeless and unemployed c. HOLC The (Home Owners Loan Corporation) helped a million people refinance their mortgages d. Letters to the President Thousands of people wrote to Roosevelt (and his wife) asking for help; every letter was answered . e. Second New Deal, 1935–1938 The Second New Deal (Wagner, Social Security, National Housing and Fair Labour Acts) set up a state system of social security 45. The New Deal: criticism and opposition a. Republicans called it boondoggling Republicans argued it damaged industry and was ‘boondoggling’ (jobs for no purpose); in 1938, they won the Senate, and Roosevelt got no more laws passed. b. Employers and rich people Many employers hated the NRA regulations; rich people accused Roosevelt of betraying his class c. Supreme Court, 1937 The Supreme Court said the AAA and NRA infringed states’ powers; there was a crisis in 1937 when FDR tried to ‘pack’ the Supreme Court d. Father Charles Coughlin Father Coughlin formed a Fascist-like organisation called the National Union for Social Justice, attacked the Jews and called for greater government controls . e. Huey Long and Francis Townshend Some people said the New Deal did not go far enough; Long ran a ‘share the wealth’ campaign, Townshend wanted early retirement and generous pensions 46. The Second New Deal: facts a. Soil Conservation Act, Apr 1935 The Soil Conservation Act (replaced the AAA) continued subsidising farmers b. Wagner Act, Jul 1935 The Wagner Act (replaced the NRA) set up the National Labour Relations Board (NLRB) to stop employers victimising workers and protected workers' right to join a trade union c. Social Security Act, Aug 1935 The Social Security Act set up federal systems of old-age pensions and unemployment insurance and gave help to people with physical disabilities d. National Housing Act, 1937 The National Housing Act provided loans to buy houses and reduced excessive rents . e. Fair Labour Standards Act, 1938 The Fair Labour Standards Act regulated hours and conditions of work and fixed a minimum wage 47. The New Deal: Successes a. Industrial output rose, unemployment fell Gross Domestic Product rose from $56bn to $127bn, 1933-1941, whilst unemployment fell from 25% to 10%; the TVA and PWA improved the country’s infrastructure b. Banking stability The bank holiday, the Glass-Steagall act and the Securities and Exchange Commission stabilised and restored confidence in the banks and Stock Exchange c. Working people The NRA improved working conditions, the NLRB helped them join a union and the Fair Labour Act gave them a minimum wage d. Poor people The Social Security Act provided a benefit system of pensions, unemployment insurance and disability payments which helped millions of poor Americans . e. Indian Reorganisation Act, 1934 The New Deal helped Native Americans – the Indian Reorganisation Act provided funding for them to improve the reservations, and keep their customs and languages 48. The New Deal: Limitations a. The Depression did not end When Roosevelt tried to reduce spending in 1937, industrial output fell and unemployment rose again; by 1939, 9 million people were still out of work b. Some measures harmed recovery e.g. NRA regulations damaged firms’ profitability, Roosevelt cut public sector pay by 15%, the Federal Reserve increased interest rates c. Black Americans and women Black Americans and women continued to suffer discrimination in the workplace. Roosevelt did not give either group a Civil Rights Act d. Industrial conflict The NRA did not end industrial troubles – in 1937, there were 4700 strikes, and ten strikers were shot dead by police in Chicago (the ‘Memorial Day Massacre’) . e. Many Americans opposed the New Deal The Supreme Court declared the AAA and the NRA unconstitutional; the Republicans, employers, Long, Townshend and Coughlin opposed it 49. The US economy in World War Two: facts a. Arsenal of democracy The USA did not enter the war in 1939, but was able to sell weapons to Britain; this stimulated American industry b. Lend-Lease Act, Mar 1941 When the British were no longer able to pay, Roosevelt passed the Lend-Lease Act, by which America supplied weapons to Britain, to be paid for after the war c. Office of War Mobilisation, May 1943 The OWM was set up organise the whole US economy for the war effort d. $304billion war spending, Dec 1941 After Pearl Harbor, the US entered World War II; the government spent $304 billion on the war, stimulating demand and technological innovation . e. General Max After prices increased 11% in 1941, General Maximum Price Regulation (‘General Max’) tried to keep inflation and wages increases down 50. The Second World War: effect on the US a. Rapid economic growth The US economy grew 52%, 1939–44 b. Rising standard of living Under ‘General Max’, prices only increased 15%, but wages increased 65% – so the standard of living improved for most Americans c. Employment The percentage of the labour force in employment rose from 85% to 98%, 1941–45 d. Technological innovation Especially the atomic bomb, in aviation and aerospace, and in mechanical and civil engineering . e. Trades Unions New employees joined trade unions, which grew powerful