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1920's to WWII

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Adam Shockey

on 12 December 2018

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Transcript of 1920's to WWII

Learning Target: Students will understand
the following cyclical historical threads:

1. Irrational exuberance in the 1920's

2. "The Great Gatsby"

3. The causes of the US Great Depression

4. How global interdependence along with US Great Depression caused a worldwide great depression
Great Gatsby Quotes:
"I hope she'll be a fool--that's the best thing a girl can be in this world, a beautiful little fool."
•"A phrase began to beat in my ears with a sort of heady excitement: 'There are only the pursued, the pursuing, the busy, and the tired.'"
- F. Scott Fitzgerald, The Great Gatsby, Ch. 4

"But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions?"

Alan Greenspan, Fedral Reserve (Bank Chairman), 1996
The 1920's
The Great Depression

FDR and the New Deal
Global Interdependence

After congress failed to sign treaty of Versailles
Also failed to enter the League of Nations,
the US began period of Isolationism from the world that would last until the late 1930's

Especially after the stock market crash in 1929, this isolationism (neglect of Europe) directly led to the rise of Hitler and WWII

The rise of Adolph Hitler was related to US Neglect and belief that it could ignore problems in Europe without eventually being affected

Today in History

*Christopher Columbus becomes
first European to set foot on Island of
Hispaniola (now Haiti and Dominican
Current Events

Iran Revolutionary Guard prepare for war
Iran’s Revolutionary Guards have been put on a war footing amid increasing signs that the West is taking direct action to cripple Iran’s nuclear programme.
Sun-like star hosts Kepler's first confirmed habitable zone planet
After Onset of Depression:

1. Unemployment Soars
(from 4 million to 12 million between 1930 and

2. Dust Bowl causes Families to Migrate to California

3. Minority Groups worse off than others

4. Exception: Labor unions do make progress
1. To fight the Depression, FDR launches what some call an "alphabet soup" of
reforms and Federal programs
a. reforms themselves not as effective as
hope and morale it gave the country
b. example of CCC boys
Popular Culture

1. Monopoly board game

2. organized crime "infamy"

3. Radio and movie stars

1. Irrational Exuberance:
a. American's over investment in
stock market (buying on margin
just like today's sub-prime loans
to part-time target employees),

leads to --> crash of stock market

b. leads to Bank Failures a year later

c. leads to millions more Americans losing their savings

d. by 1932 number of unemployed in America rises from 4 million
to 12 million

2. Global interdependence
a. Depression in US contributes
directly to depression in
b. Depression in Germany leads directly
to rise of Radicalism and Hitler

3. Failure of treaty of Versailles
FDRs Alphabet soup of Federal Programs:
FDR was a product of the
Progressive Era

"A pragmatist and an
Political Experience:

1. Local: At height of first Progressive Era,
Elected New York State Senate

2. Federal Government and waging
war: Secretary of Navy under Wilson 1913

3. State: Governor of New York
Brain Trust
2 New Deals

1. 1st New Deal (1933-1935)
--Focus was on recovery and relief

2. 2nd New Deal (after 1935)
--started from attacks on the New Deal
from those who wanted more of it and those who wanted
less of it (government involvement through New Deal Policies)
First 100 Days:

1. 15 bills passed with overwhelming support in congress
New Deal's 3 Goals:

1. recovery from Depression
2. relief for people
3. reform (regulation) passed during the first New Deal:
a. Creation of FDIC and Glass-Steagall Act
b. Federal Securities Act 1933
c. SEC (Securities and Exchange Commission)
Alphabet soup of New Deal Programs

II. The 2nd New Deal:

"We have not weeded out the over privileged, and
have not effectively lifted up the underprivileged."
Roosevelt Address to Congress (1935) while announcing
2nd New Deal."

1. What were the objectives?:
changed from recovery for business and industry focus to direct relief, stability, and security for the average American
less favor to big business and more concern for the poor and underprivileged

2. What was the support base?:
Now through Democratic party alone!
(Not in partnership with more moderate and progressive republicans as before)

What was the program focus?: To appeal to the new groups of:
a. labor unions
b. farmers
c. African Americans

What were some successes of the 2nd New Deal that are popular today?:

1. Social Security Act

2. National Labor Relations Act (Wagner Act):
Government help for labor unions and protecting union members against abuses by employers against them
US History

December 12, 2011


1. Versailles and the Rise of Hitler

2. Lenin, Stalin, Communism

3. Pre-cold war tensions

4. Total War
Warm-up Activity:

Historical Similes

Ex. The Declaration of Independence is the Revolutionary War as

Declaration of Independence; Revolutionary War

Gettysburg Address;______________

Sample answer: The Gettysburg Address is to the Civil War


Greer Incident; WWII

Gulf of Tonkin Incident; ________________

The "Greer Incident" is to WWII as,
Just watch First minute
Global Studies

Tuesday December 12, 2011
The Land and Religion

1. The Jewish Claim and Judaisim

2. The Palestinian Claim

3. The claims of Islam

4. The Persians

5. Christianity

6. The Turks
Judaism Patriarchal Period (2000-1700 BC)

a. The Torah and Abraham

b. The story of Isaac and Ishmael: 2 interpretations

i. Genesis Chapter 21: Isaac is claimed to be the favorite son

ii. Qur'an: Ishmael is implied to be the favored son

3800 B.CE - 2001 BCE - The Dawn of “History”
2000 B.C.E. - 587 BCE - Context of Ancient Israelite Religion
538 BCE - 70 CE - Judaism After the Babylonian Exile

230 BCE-400 CE - Rule of Rome
70 - 500 - Rabbinic Jewish Period of Talmud Development
325 - 590 - Consolidation & Dominance of Classical Christianity
600 - 1500 - “Medieval” Period in the West
570 - 1258 - Reception & Classical Development of Muhammad's Islamic Message
1095-1258 - Crusades
1258-1500 - Further Transitions and Rebuilding of Political Islam
1291-1516 - Mamluk Rule
1517-1569 - Reformation and Post-Reformation Christian Period
1500-1920 - Dominance of Ottoman Muslim Empire in Turkey
1700-1917 - Jewish Modern and Contemporary Periods
1914-1918 - Islamic Unrest and Realignment in the Middle East
1918-1947 - British Rule in Palestine
1947-Present - Modern Israel & the Diaspora
WWII Day 4
and Germany’s Actions Leading to WWII DATE:


Hitler’s rise to power in 1933 led to the persecution of German Jews

Germany and Austria became unified

Germany and Britain signed the Munich Pact, authorizing Germany to force the Sudetenland from Czechoslovakia

Germany took over the rest of Czechoslovakia The Nazis systematically eliminated the civil and human rights of Jews and other “undesirables” under their control

Germany signed a non-aggression pact with Russia, agreeing to divide Poland

The Nazis built death camps to attain “the final solution of the Jewish question,” resulting in the murder of six million Jews and more than five million others

Germany invaded Poland Britain and France declared war

2.Economic Measures Against Japan DATE: 1940-1941

a.Japan used the Vichy government to expand into French Indochina

b.Japan wanted to build bases in the area

c.America responded by holding Japanese funds and creating embargos

d.Led to failed negotiations between the United States and Japan over Japan’s presence in China
3.United States Domestic Measures for WWII DATE: 1942-1943

a.War Production Board regulated raw materials

b.Prices and wages were frozen

c.Income tax was extended to more people

d.The United States sold Liberty Bonds

e.The government had the power to take over businesses closed by strikes
4. Women During WWII DATE: 1940s

a. 216,000 women served in the armed forces in non-combat duties

b. WAACS (Army), WAVES (Navy), and SPARS (Coast Guard) were forces made up of women

c. Women also served as defense plant workers

d. The women who worked in the manufacturing plants during World War II were symbolized by the icon “Rosie the Riveter,” a feminist image

5. Braceros DATE: 1942

a. An agreement between the United States and Mexico brought thousands of Mexican agricultural workers, or braceros, to the United States

b. Braceros were prevalent in the South and the West

c. Braceros became part of the American agricultural economy after World War
6.Battles of the Coral Sea and Midway DATE: 1942

a.Battle of the Coral Sea (May 1942)—American carriers sent planes against the Japanese troops, forcing them to turn back from an invasion of Australia

b.Battle of Midway (June 1942)—American planes destroyed Japanese carriers as they moved toward the American-owned Midway Islands, becoming a defining moment in the Pacific front
7. Internment Camps DATE: 1942

a. FDR authorized the evacuation of all Japanese from the West Coast into relocation centers

b. The government interned around 120,000 Japanese-Americans, two-thirds of them native-born United States citizens

c. Move came under public fear of Japanese sabotage following Pearl Harbor, and in some part, due to racial discrimination

d. In 1988, Congress voted to pay compensation to each surviving internee
8. Smith-Connally Anti-Strike Act DATE: 1943

a. Congress was concerned about the loss of production due to labor strikes

b. The Act authorized the federal government to seize and operate industries stopped by strikes

9.Tehran Conference DATE: November 28-December 1, 1943

a.Meeting of the Big Three: Roosevelt, Churchill, and Stalin

b.Agreement that Russia would attack Germany from the east as the Allies would attack from the west

c.First time Roosevelt had met Stalin

10. G.I. Bill DATE: 1944

a. Signed by FDR and passed to give educational benefits to those who had served in the Armed Forces during World War II

b. Bill was created to help members of the Armed Forces adjust to civilian life, afford a higher education, and restore lost educational opportunities

c. The G.I. Bill also promoted volunteerism for the Armed Forces and led to a better educated population
11. Korematsu v. U.S. 1944

a. Korematsu was arrested and convicted after failing to comply with military order to move to a Japanese relocation center

b. The Supreme Court upheld his conviction based on war powers; the government’s need to protect against espionage outweighed Korematsu’s rights

c. Justice Frank Murphy, in his dissent, stated the decision was the “legalization of racism”

12. D-Day DATE: June 6, 1944

a. Eisenhower, Commander-in-Chief of Allied forces, ordered an invasion at Normandy, France

b. The operation involved over 4,500 vessels

c. American troops commanded by George S. Patton weakened the German troops in France
13.Battle of the Bulge DATE: December 1944

a.German counterattack that pushed the Allies back into Belgium

b.Last stand of Hitler’s armies

c.Eventually the Allies returned to Germany, leading to surrender on May 7, 1945

14. Yalta Conference DATE: February 1945

a. Meeting of the Big Three (Roosevelt, Churchill, and Stalin) to talk about post-World War II plans

b. Germany was to be divided into American, British, French, and Soviet zones

c. Poland’s boundaries would be revised, and free elections would be established

d. Russia would help by attacking Japan three months after Germany’s collapse in exchange for the Sakhalin and Kurile Islands

e. Agreed to hold conference in San Francisco to form peacekeeping organization (United Nations)

15. Harry S. Truman DATE: 1945-1953

a. Thirty-third President Became president in 1945 after FDR died

b. Decided to drop atomic bombs on Japan

c. Banned racial discrimination in federal hiring and armed forces

d. The Truman Doctrine instituted policy of “containment” against Communism

e. Re-elected against Thomas Dewey in 1948
16. Potsdam Conference DATE: July 17-August 2, 1945

a. Attended by Truman, Stalin, Churchill, and Churchill’s replacement, Clement Atlee

b. Agreed upon a policy for the occupation of both Germany and Japan

c. Decided German reparations

d. Declaration made to Japan to surrender or be destroyed
17. Manhattan Project, Enola Gay, and Hiroshima/Nagasaki DATE: Manhattan Project, 1942-1945; Enola Gay ’s Flight, August 6, 1945; Bombing of Hiroshima, August 6, 1945; Bombing of Nagasaki, August 9, 1945

a. The Manhattan Project described operations by Army engineers to design an atomic bomb

b. J. Robert Oppenheimer directed the group at Los Alamos, New Mexico

c. Enola Gay was the plane that carried the atomic bomb into Hiroshima, Japan, on August 6, 1945, killing 40,000 people immediately

d. A second atomic bomb was dropped on Nagasaki, Japan, on August 9, 1945

e. The decision to drop the bombs was controversial, as some argued that the Japanese were essentially beaten and were willing to surrender, but that the United States insisted on an unconditional surrender

18. V-E Day and V-J Day DATE: May 8, 1945 and August 15, 1945

a. V-E Day, or Victory in Europe Day, was the day the Allies announced Germany’s surrender in Europe

b. V-J Day, or Victory in Japan Day, was the day
19. United Nations DATE: Established Summer 1945
a. Created at the San Francisco conference

b. Representative body of nations that wished to resolve global issues

c. Composed of a General Assembly and a Security Council

d. All members sit on General Assembly and form policy

e. Security Council has eleven members, five permanent and six additional that rotate

f. Permanent members are the United States, Britain, France, Russia, and China
20.Cold War DATE: Began 1946
a.War of words caused by differences in economic and political beliefs between the United States and U.S.S.R.

b.No actual fighting took place

c.Churchill commented that an “Iron Curtain” had been dropped between Western Europe and the Soviet’s Eastern Europe

I. Appeasement
Munich and Cuban Missile Crisis and Gulf War

II. Civil Liberties during wartime
Civil War -- suspending habeous corpus

WWII -- Japanese internment (and Korematsu v. U.S. 1944 )

Post 9-11 -- Patriot Act
Uncle Sam's Depressed: 1930-1940

Review of events that caused great depression:

1. Stock market Crash
2. Bank Failures
3. Farm Failures
4. Bad weather: the Dust Bowl

All 4 = Economically Catastrophic Decade
The Presidents of the 1920s--"America's business is business"
1. Warren G. Harding (1920-1923)

2. Calvin Coolidge (1923-1929)

3. Herbert Hoover (1929-1933)
1920s: the people

1. the growing middle class

2. the danger: buying on credit
and stock market speculation
US History 2nd period:

1. Lecture

2. notes on Great depression packet
Smoot-Hawley Tarriff
"It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something." - Franklin D. Roosevelt
Agricultural Adjustment Administration (AAA)--
Program whose goal was to raise prices of crops so farmers could make more money
Some New Deal Programs:
National Industrial Recovery Act (NIRA)-- program whose goal was to help 3 groups:
Business/Industry(by increasing wages for workers and prices)
labor unions (by protecting worker rights and establishing minimum wages)
the unemployed (by starting hundereds of thousands of public works projects
1. Great Depression: Enormous economic downturn signaled by the stock market crash of 1929 not ending until the mobilization of the economy to full employment during WWII
a. Comes into full force in March 1930
b. Caused by many different factors
c. Textbook will lay out for you major details of causation

2. Long term investment
a. Purpose is to buy and hold stocks and to choose them carefully

3. Speculative investment
a. Looking for companies that are moving quickly in an upward fashion in a short period of time, and then to sell them quickly to make a quick buck

4. Buying on margin
a. Buying stock on credit: putting down a small amount of money towards the
b. EG.
5. Bull market (1924/1926-1929)
a. Amount of stock (and demand for stock) on the market increases greatly
b. When crashes in 1929 it becomes a “Bear market”
c. Those buying stock are the rich but increasingly the growing middle class

6. Purchasing power
a. Is not available across society (or even middle class) to support health/true growth of companies whose stock value is going up
b. Going into speculative stocks, not into purchasing products of the companies whose stock is being purchased
c. Weak companies fold first, then this affects strong companies
d. Depression lasts as less and less purchasing power exists
e. Other problems from 1920’s manifests itself
i. Psychology of prosperity does not match the underlying reality
f. Economic indicators at time of depression
i. $1500 annual income is the poverty line
ii. 40% of all americans at poverty line
iii. This leads to purchasing power problem
1. Housing, food, essential clothing
2. 60% of people are making $2000/year or less

g. What does G.D. mean in human terms (what is a true depression)?
i. From 1929-WWII
ii. Impact comes from job layoffs
iii. By 1932, FDR unemployment reaches 25% of workforce (12 million plus people); mostly male breadwinners
iv. Depression not spread equally
1. E.g. some places and groups hit harder than others
a. NYC 1 million unemployed
b. Farmers (non-land owning) laborers, day laborer, migrant worker, share-croppers) affected harshly
c. Rural areas
d. African Americans : last hired, first fired
7. Dust bowl (1930-1936/39)
a. Natural disaster affecting rural areas
b. Kansas, E. Colorado, Arkansas, Oklahoma, Texas, N.M.
8. Herbert C. Hoover (1929-1933)
a. Harding (March 1921-Aug. 1923)
b. Calvin Coolidge (1923-1929)
c. 1930s hardship
i. Hoover flags (empty pockets turned inside out)
ii. Hoover blankets
iii. Hoovervilles
iv. Nose-dive in marriage rates, divorce rates depressed
v. Birth rate drops
9. Hoover biography (1874-1964)
a. Born in Iowa, orphaned
b. Moves to California, studies at Stanford, studied mining engineering
i. Hoovers skills in demand, travels worldwide, becomes independently wealthy (China, Australia, Africa, Europe, becomes well-known internationally)
c. By WWI has own mining consulting firm, then devotes himself to public service
i. WWI uses connections in London, Europe, to help americans caught up in war
ii. Help people in Eur. caught up in war

d. American and European relief activities, 1914-1918
e. U.S. Food Administrator 1919
i. Bring food relief into war torn areas of Europe
ii. Becomes household name
f. Sec. of Commerce 1921-1928
g. President 1929-1933
i. By time becomes president, well-known and becomes well known as Horatio Alger (rags to riches) symbol
ii. 1920s new relationship between business and policymakers to resolve national problems and assist public welfare (hoover fits bill of this new trend in 1920s)
iii. Runs against Al Smith in 1928 election

1. Horatio Alger Jr was a prolific 19th-century American writer, best known for his many young adult novels about impoverished boys and their rise from humble backgrounds to lives of middle-class security and comfort through hard work, determination, courage, and honesty.
10. U.S. Food Administration (1918-1919)

11. Secretary of Commerce (1921-1928
12. Progressive individualism (as opposed to “rugged individualism)
a. Must protect individualism
b. But must combine with:
i. Equal opportunity
ii. Public service
c. Must guard against selfishness of rugged individualism

13. Rugged individualism

14. opportunity/service
15. Wilsonian progressive
a. Wilson brought Hoover into France at end of war
b. Embraces Wilson’s “New Freedom” philosophy
i. Limited, decentralized view of aid and assistance to others, must respect marketplace
ii. Gov’t has limits
iii. Economic views: Competition as opposed to government regulation
iv. Social issues: social reform should be done at the state-level of government, city-level, private philanthropy
v. So when Depression hits, Hoover doesn’t believe it should last long
c. In Hoover’s mind, Gov’t has to investigate, call economic conferences,
i. assist business and agriculture to become more efficient, competitive
ii. Problem is depression is so bad businesses cannot climb out on their own
d. Gov’t should encourage relief at state, local, business/private philanthropy
16. volunteerism

17. trickle-down theory

18. voluntary relief

19. work relief

20. Direct relief
a. People will become dependent

21. President’s Organization on Unemployment Relief (POUR 1930)
a. Wants to sustain view that have to have private individual relief to get out of depression)
b. Hoover will approach major business leaders to raise money to then provide relief
i. Private business cannot deal with scale of problem during G.D.
ii. People are fearful to spend money in any way
iii. Great Dep. has sealed opportunity off
23. Smoot - Hawley Tariff (1930)
a. Textbook--talks about within context of Hoover’s efforts to deal with G.D.
24. Reconstruction Finance Corporation (RFC 1932)
a. Federal program established to lend money to businesses, banks, and railroads during the Great Depression in an effort to jump start the economy
b. Fed. Gov’t lends money to businesses, banks, railroads to try to restart economy and bring confidence back to major wealth creators in the economy
c. Right idea in terms of “spending way out of” depression; if big businesses recovered then money would “trickle down”
d. Problems though are:
i. It will not get enough money into the economy quick enough through this method;
ii. money not going to businesses that are on the edges and only into the hands of the few
iii. Feeling enormous pressure from state and local governments as tax base shrinks; Hoover does allow RFC to loan money to state governments but still not enough

25. John Maynard Keynes (1883-1946)
a. English economist
b. Changed the world’s outlook on the economy and the function of government in society
c. Against old view that just need to wait the business cycle out (that in the long run, things will get better)
d. “In the long run, we’re all dead.” --J.M. Keynes

26. Hoover did try to take action using the best economic theories available at the time; but ultimately his philosophy that direct relief would create dependency was inflexible.
a. Hoover did:
i. Assumed government responsibility: if the economy gets down, it is the president’s job to solve issue
ii. Paves way for greater government action

iii. Tried relief for the poor, RFC, POUR
b. Hoover became increasingly inflexible and reclusive as Depression wore on
c. Bonus Expeditionary Force
i. Example of Hoover’s inability to connect with the public

1920s was a “roaring” decade, but not for all
Businesses prospered
People had fun
Farmers struggled
Reemergence of the KKK

Many historians have described the 1920s as a “roaring” decade for the nation but not everyone was able to participate in this prosperity

Many businesses experienced success and others had a lot of fun but farmers struggled and race relations declined as demonstrated by the re-emergence of the Ku Klux Klan

“Return to Normalcy”
Pace of change
Urban vs. Rural – Modern vs. Traditional
Clash of civilizations?

The pace of change over the previous decades had been massive and unsettling to vast swaths of the country
Within the 19-teens alone there had been 4(!) constitutional amendments within 3 years alone
People were tired of this pace and interest, and passion, for progressive causes waned in favor of a “return to normalcy”

The 1920s
• Introduction
• A “Modern” Era?
• “Roaring”
• Business
• Fun and Heroes
• Women
• Politics
• “Other” Side
• Farmers
• Nativism
• Conclusion

I. Themes
• 1920s was a “roaring” decade, but not for all
– Businesses prospered
– People had fun
– Farmers struggled
– Reemergence of the KKK

“Return to Normalcy”
• Pace of change
• Urban vs. Rural – Modern vs. Traditional
• Clash of civilizations?

II. What was roaring during the roaring 20s?

1. Business

Stock Market Prices

Many in Business Prospered
• Minor recession after WWI followed by tremendous growth
• Gross National Product (GNP) increased from $70 billion in 1922 to $100 billion in 1929
• U.S. economy was very “consumer-oriented”

Consumer-Oriented Economy
• New electrical products transformed daily life:
– Vacuum cleaners replaced brooms
– Items bought at supermarkets replaced canning
– Commercially made bread replaced home-baked bread

• Notice their “twist” offering new electric appliances for home
• There were MANY new products:
– Radio
– Automobile

Consumer-Oriented Economy
• 14 million American families owned radios by 1930
• National broadcasting companies were formed
– NBC = 1926
– CBS = 1927
• “Amos ‘n’ Andy” first network comedy show in 1928

Consumer-Oriented Economy
• 8 million registered cars in 1920; 23 million by 1930
• Up to mid-1920s Ford Model T was dominant
• Sales of General Motors cars later outpaced Ford
• Ended isolation of some in rural areas and completely transformed dating

Consumer-Oriented Economy
• Consumer credit was widely available
• 60% of U.S. families owned a car by 1930

Consumer-Oriented Economy: Impact
• Indebtedness increased
• A sense of “sameness” was created
– Similar cars were driven by many
– People often listened to the same radio shows
• Environmental impact:
– Increased reliance on fossil fuels
– 1916: U.S. produced 50 million barrels of gasWhy
– 1929: U.S. produced 435 million barrels!

2. Fun and Heroes
Fun and Heroes
• Fans watches Babe Ruth hit home runs
• Louis Armstrong became a Jazz innovator
Fun and Heroes
• By 1930 weekly movie attendance neared 80 million
• Valentino = leading male movie star of the 1920s

• Most celebrated hero was Charles Lindbergh
Fun and Heroes
• Began his career as a stunt flier and airmail pilot
• Flew alone from New York to Paris in 1927
• Became an important symbol
– U.S. individuality combined with technology can accomplish anything!

3. Women
Women’s Roles
• The Women’s Movement splintered following passage of the 19th Amendment
• The proportion of women working outside the home remained about the same (24%)
– Women usually earned less money than men
• A new image was popular with young women:
– Flappers

• A young woman with bobbed hair, a short skirt, and a cigarette
• Listened to jazz music and danced the Charleston
• Many broke the law by drinking; openly discussed sexual relations

Women’s Roles
(Music and Generation Gap)
• A “Generation Gap” seemed to be developing between parents and their children

4. Politics
• Dominated by the Republican Party as they controlled the White House and Congress
• Supported pro-business policies in general

President Warren Harding
• Former journalist and Senator from Ohio
• Known to enjoy poker parties and good liquor
• Several scandals plagued his administration
Died of a heart attack in 1923

Harding Administration Scandals
• Charles Forbes/Veterans Bureau
– Convicted of stealing Veterans Bureau Funds
• Albert Fall/Secretary of Interior
– Allowed oil companies to drill on lands in California and Teapot Dome, WY
– He received “loans” in return

President Calvin Coolidge
• Assumed the Presidency following Harding’s death
• Supported Harding’s policies of high tariff, tax and spending cuts
• Coolidge was re-elected in 1924
The 1920s

5. Farmers
Farmers Problems
• Agriculture did not prosper like business in the years following WWI
• Between 1919-1921 total farm income fell from $10 billion to $4 billion
• Wages dropped; farmers who borrowed money during WWI could not repay loans
Farmers and Government
• Many looked to government for help
• In late 1920s Congress acted and passed the McNary/Haugen Bill
McNary/Haugen: A Possible Solution
• A price support plan whereby the U.S. government would purchase surplus crops
• Excess products would then be sold on the world market
• Passed by Congress in 1927 and 1928 but vetoed by Coolidge twice
• Significance: The nation as a whole wasn’t ready yet to subsidize agriculture
Farmers and Government
• Many looked to government for help
• In late 1920s Congress acted and passed the McNary/Haugen Bill
• Problems continued for farmers, but in the 1930s the government was more responsive
The 1920s

Middle-class = income is between 67 percent and 200 percent of the average median income.

25. Franklin D. Roosevelt (1882-1945)
a. New York State Senator (1911-1913)
b. Asst. Secretary of the Navy, (1913-1920)
c. Governor of New York (1929-1932)
d. President (1933-1945)
e. Facts about his life
i. Comes out of wealth and status
ii. Son of a well-to-do merchant
iii. Out of Upstate New York
iv. Private tutors
v. Harvard
vi. Columbia Univ. Law School
vii. Practiced law and then ran for public office
viii. Elected in Upstate New York farming community
ix. Helps with Wilson’s campaign
x. Runs as Vice-Presidential Candidate in 1920 on the Democratic ticket with James M. Cox
xi. Is stricken with polio in summer of 1921


1. Over-production/underconsumption due to lack of purchasing power--economy producing products that people could not afford to buy.

2. Factory shutdowns and reduced factory production

3. Farm sector stagnates (Shi and Tindall, 904)
From 1929 to 1933, U.S. economic output (called gross domestic product, or GDP) dropped almost 27 percent. By 1932, one-quarter of the workforce was out of work.
As the financial and industrial sectors collapsed, the farm sector stagnated.
Farm incomes had soared during the Great War because the European nations needed American grains, beef, and pork.
Eager to sustain their prosperity, farmers took out mortgages to buy more acreage or equipment to boost output.
Increasing production during the twenties, however, led to lower prices for grains and livestock.
To make matters worse, record harvests in the summer and fall of 1929 caused prices for corn, wheat, and cotton to fall precipitously, pinching the income of farmers with mounting debts.

g. FDR philosophy
i. Progressive
ii. Non-radical mentality to using government

26. Pragmatist (not an ideologue)
a. As governor of New York during the G.D. he experimented with government action similar to programs that would be tried during the New Deal

27. Brain Trust
a. FDR identifies people in agriculture, economics, industry experts, and engages them about the issues affecting the economy
b. FDR realized specialists needed to solve the myriad problems of the G.D.

28. George Norris (1861-1944)
a. Republican Senator from Nebraska
b. Advocate of public ownership of hydro-electric power plants
c. Got Congress to pass the Muscle Shoals Bill but vetoed by President Hoover in 1931 as being socialistic
d. Pioneered the Tennessee Valley Authority and Rural Electrification Act

29. Tennessee Valley Authority

1. ...

Shi, David E.; Tindall, George Brown. America: A Narrative History (Brief Tenth Edition) (Vol. 2) (Page 918). W. W. Norton & Company. Kindle Edition.
i. High tariffs: Smoot-Hawley Tariff: was intended to help the farm sector by raising tariff barriers on farm products imported into the United States. But a swarm of corporate lobbyists convinced Congress to add hundreds of new imported manufactured items to the tariff bill.
1. Had effect of raising prices for consumers
2. Entrenches global depression
3. Tariff caused another drop in the stock market
4. Trade war with other countries

ii. Bank Failures and Federal Reserve Policies
1. Restricted money supply to ward off inflation leading to increased bank failures

i. Reduced purchasing power
ii. Inability to repay war debts

44. 20th Amendment (1933): sets the beginning date of the Presidential term (Jan. 20th) and congressmen (Jan. 3rd) from the previous date of March 4; outlines the succession processes for the Vice-Presidency and congressmen
a. Reason for amendment is an anachronism based around the need to give time over the winter to change administrations
b. Urgency of Great Depression also sparks desire for the new president to take office sooner

45. March 4 Inauguration

46. March 6 Bank Holiday
a. FDR’s first major New Deal legislation prompted by people’s runs on banks
b. Shuts down banks

47. March 9 Emergency Bank Relief Act
a. Provides for safe liquidation of unsound banks
b. Props up banks that do have a chance to survive
c. Provides credit and currency through the act
d. Draws on existing programs like the Federal Reserve and RFC to carry it out
e. Prohibits hording of gold and the export of any gold

48. March 12: Fireside chats over radio
a. Sits down and speaks to an estimated 60 million people (1/2 of all Americans) about what he is doing and why
b. Asks Americans to bring money back to banks
c. Within 30 days 1 billion dollars are brought back to banks
d. Though Americans wanted the banks to be nationalized, but FDR resists and preserves the private banking system

• In short-time FDR sets right the banking crisis
• Establishes himself right away as an effective crisis president

29. Tennessee Valley Authority (est. 1933)
a. background
i. Muscle Shoals an established amunitions plant
ii. Norris thought Federal Govt should take it over, turn it into a larger recovery area
iii. Tennessee river runs through 7 states in one of the most impoverished areas of country
b. Roosevelt sees Norris’s efforts in the 1920s as a model for New Deal projects nation-wide
c. TVA would work to:
i. Modernize the region through the use of an expert-led model of development
ii. Put people to work:
1. Building 21 dams
2. Dredged rivers promoting barge trade
3. Soil conservation and forestry management/recreation areas
iii. Results = 1.5 million farmers had access to electricity and indoor plumbing, drew new businesses to the region, grew labor unions and improved schools/libraries
iv. Exemplifies FDR’s willingness to innovate, experiment, and use the federal government to do so
30. Patrician
a. FDR comes from wealth and money. Believes has an obligation to assist larger society

31. Broker politics
a. FDR's administration philosophy, meaning:
i. FDR viewed his job as president was to bring together different political groups so that they could come together and see where they have common ground
ii. FDR saw his role as a broker among people/groups/politicians and their competing ideas, directing them towards the public good
b. FDR is a masterful politician: charm, communication, good skills with both constituents and other politicians
32. Humanitarian
a. Shaped by his struggles with polio
b. Could therefore empathize and connect with voters
33. National partnership
NEW DEAL: Name given to FDR’s effort to end the Great Depression

• Did not end the G.D.
• A continuous experimental response to the G.D.
• FDR’s ideology is not consistent, it is pragmatic, ambiguous, andunclear; sometimes it will be conservative, other times liberal, other times a mix of both conservative and liberal
• The 3 R’s: relief, recovery, reform
34. Relief, recovery, reform
a. Relief: 25% unemployment, need to deal with food, shelter, etc. issues
b. Recovery: must rebuild economy and pursue policies/programs that will lead to recovery
c. Reform: what to do to make sure another G.D. does not happen

35. Phase I (First New Deal): 1933-1935
a. Focuses on relief and recovery

36. Phase II (Second New Deal): 1935-1938
a. Recovery and reform

37. Fiscal policy: government spending

38. Fiscal conservative
a. FDR was raised as a fiscal conservative but realizes this won’t work to get country out of G.D.
39. Fiscal liberal

40. John Maynard Keynes (5 June 1883 – 21 April 1946)
a. Classical vs. “Keynesian” economics
b. Classical
i. During recession/depression you should cut spending (fiscal conservatism)
c. Keynesian
i. During recession/depression the government should spend more (fiscal liberalism)
ii. Spending money will take up the slack that the private sector is no longer doing
iii. Government should create programs to put purchasing power back into the hands of citizens (consumers)
iv. In the short run, need to go into debt
v. After recovery takes place, tax revenues will become greater and can pay off debt
vi. Look at debt as an investment (just like when a business invests in itself)

41. Deficit spending (through borrowing from banks and selling of government bonds)

• Roosevelt starts spending money intuitively on relief programs, get people working
o Relief
o Agricultural aid
o Industrial recovery
o By 1937 looks like economy is starting to recover on a quicker pace
o Roosevelt then goes back to fiscal conservatism and starts shutting down New Deal programs, but this is premature and the economy goes back down again
o Swings back to fiscal liberalism
• Do not look for ideological consistency in FDR

43. Phase I: 1933-1935
a. Recovery
i. Restore confidence in capitalistic system and government
ii. To save capitalism will have to reshape it
iii. Focuses on banking, agriculture, and industry
49. Agricultural Adjustment Act (1933)
50. crop control
51. subsidies
52. processor tax
53. sharecropper/tenant farmer

54. U.S. v. Butler:
a. Supreme Court rules AAA unconstitutional
b. rules that the tax was not a true tax to raise general revenue and they were tied to oppressive government stipulations and contracts as to how the processor tax was to be used
c. This and other Supreme Court rulings setup FDR's tensions with the judicial branch during the G.D. and his attempts at "court packing" to try and do an end run around the S.C.

54. Second AAA (1938)

55. National Industrial Recovery Act (NIRA) (1933)
a. focused on setting fair wages and prices

56. business codes

57. anti-trust legislation

58. collective bargaining

59. Works Progress Administration (1935)
a. Largely a federal construction program with a government hired workforce
b. 11 billion dollars spent on
i. 1.4 million projects employing 8.5 million people
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