A.P. Final ReviewPart III

Progressives through World War II

Progressive MovementGOALS1. Protecting social welfare

• Settlement houses, soup kitchens, YMCA• Jacob Riis

2. Promoting moral reform• Prohibition

3. Creating economic reform• Muckrakers – journalists who wrote about corrupt

business and politics• Upton Sinclair

4. Fostering efficiency• Scientific management• Assembly line production

5. Election reform

Election Reforms

• Initiative – a bill originated by citizens (not lawmakers) placed on the ballot

• Referendum – vote on an initiative• Recall – ability of voters to remove

public officials by forcing them to face election sooner than scheduled

• 17th Amendment – direct election of Senators (not state legislatures)

Teddy Roosevelt’s Square Deal• Federal arbitration – 1902 coal strike threatens

supply• Government creates a commission to work out a

compromise (a new precedent)• Forced arbitration!!!

• Trust-busting – used Sherman Antitrust Act to sue companies believed to have a monopoly

• Regulation• Meat inspection act – strict guidelines for meat processing• Food and Drug act – halt sale of contaminated foods and

medicines and called for truth in labeling• Conservation

• Set aside over 200 million acres as National Parks, Forests and Preserves

• Civil Rights – no improvement!!!!!

TR Legacy

• Contributions• Conservation• Enlarged power and

prestige of presidency

• Compromise diplomacy (with a BIG stick)

• Public opinion as a political weapon

• Public awareness of global community

Good Old Will Taft

• Father of Dollar Diplomacy• Increase US

investment in strategic areas

• Trustbuster• 2x TR• Standard Oil• US Steel (oops)

Bad Old Will Taft

• Payne-Aldrich Bill• Intended to reduce

tariffs instead raises tariffs

• Breaks campaign promise and splits Republican Party

• Ballinger-Pinchot Dispute• Open public lands to

corporate development

1912 Election

GOP Divided by Bull Moose

Equals Democratic Victory!

1912 Election

GOP Divided by Bull Moose

Equals Democratic Victory!

1912 Election

• Labeled as the Election that changed the century• Why?

• Choice of political and economic philosophies• Democratic – Laissez faire economics and social

policy• Republican – socially conservative, limited

progressive reforms• Progressive – activist welfare state

• Winner?• Progressive reforms for Americans!!!

Dr. Wilson

• Jeffersonian• Moral wall?• Goals

• Tariffs• Underwood Bill

• Banks• Federal Reserve Act

• Trusts• FTC• Clayton-Anti Trust

Act

Income Tax / Federal Reserve System

• 16th Amendment – graduated tax on income• Started at 1% and rose to 6%• Today = 20% and up

• Federal Reserve System• US divided into 12 districts

• Each district has a federal reserve bank• Issue currency, loan money to banks

Wilson’s “Moral Wilson’s “Moral Diplomacy”Diplomacy”

Wilson’s “Moral Wilson’s “Moral Diplomacy”Diplomacy”

The U. S. shouldbe the conscienceof the world.

Spread democracy.

Promote peace.

Condemn colonialism.

America Becomes a

World Power

American Imperialism

• Factors• Economic competition between nations• Political and military competition• Belief in racial and cultural superiority

• Actions• Hawaii• Cuba• Puerto Rico

Hawaii

• Sugar, Sugar, Sugar• 75% of wealth• No duty (tax) on sugar sold to U.S.• Most plantation owners from U.S.

• Political issues• Only land owners can vote• U.S. treaty for Pearl Harbor• Change in Hawaii’s ruler

• Liliuokalani – deposed with help from U.S. military• President Cleveland refuses to recognize as a territory unless

Hawaiians want it• President McKinley proclaims Hawaii a U.S. territory

CUBA

• Cuban Revolution – 1895• U.S. Split

• Support Spain to protect American business interests

• Support Cuban rebels to promote liberty

• Yellow journalism – reporting that exaggerates the news to lure new readers

• Stirs support for rebels

• Creates news

• Teller amendment promises Cuban independence if US assists

““Yellow Journalism” & Yellow Journalism” & JingoismJingoism

““Yellow Journalism” & Yellow Journalism” & JingoismJingoism

Joseph PulitzerJoseph Pulitzer

William Randolph Hearst

William Randolph Hearst

Hearst to Frederick Hearst to Frederick Remington:Remington: You furnish the You furnish the pictures,pictures, and I’ll furnish the war! and I’ll furnish the war!

De Lôme LetterDe Lôme LetterDe Lôme LetterDe Lôme Letter

Dupuy de Lôme, Dupuy de Lôme, SpanishSpanishAmbassador to the Ambassador to the U.S.U.S.

Criticized PresidentCriticized PresidentMcKinley as McKinley as weak and weak and aabidder for the bidder for the admirationadmirationof the crowd, besidesof the crowd, besidesbeing a would-be being a would-be politicianpoliticianwho tries to leave a who tries to leave a doordooropen behind himself open behind himself whilewhilekeeping on good termskeeping on good termswith the jingoes of hiswith the jingoes of hisparty.party.

Remember the MaineRemember the Maineand to Hell with Spain!and to Hell with Spain!Remember the MaineRemember the Maineand to Hell with Spain!and to Hell with Spain!

Funeral for Maine victims in Havana

Funeral for Maine victims in Havana

The Treaty of Paris: 1898The Treaty of Paris: 1898The Treaty of Paris: 1898The Treaty of Paris: 1898

Cuba was freed from Spanish rule.Cuba was freed from Spanish rule.

Spain gave up Puerto Rico and the Spain gave up Puerto Rico and the island ofisland ofGuam.Guam.

The U. S. paid SpainThe U. S. paid Spain$20 mil. for the$20 mil. for thePhilippines.Philippines.

The U. S. becomesThe U. S. becomesan imperial power!an imperial power!

American Impacts

• 350-400 Battle Deaths• 2000-5000 Death by Disease

• Typhoid, Malaria, etc.• Bad beef

• Unprepared• Clothing, training, weapons, leadership

• Strengths• Numbers, Navy

The American Anti-The American Anti-Imperialist Imperialist LeagueLeague

The American Anti-The American Anti-Imperialist Imperialist LeagueLeague

Founded in 1899.Founded in 1899.

Mark Twain, Mark Twain, Andrew Andrew Carnegie, WilliamCarnegie, WilliamJames, and WilliamJames, and WilliamJennings Bryan Jennings Bryan amongamongthe leaders.the leaders.

Campaigned Campaigned against the against the annexation of theannexation of thePhilippines and Philippines and otherotheracts of imperialism.acts of imperialism.

Cuban Independence?Cuban Independence?Cuban Independence?Cuban Independence?

Senator Orville Platt

Senator Orville Platt

Platt Amendment (1903)Platt Amendment (1903)

1. Cuba was not to enter into any agreements with1. Cuba was not to enter into any agreements with foreign powers that would endanger its foreign powers that would endanger its independence.independence.

2. The U.S. could intervene in Cuban affairs if 2. The U.S. could intervene in Cuban affairs if necessary to maintain an efficient, independent necessary to maintain an efficient, independent govt.govt.

3. Cuba must lease Guantanamo Bay to the U.S. for3. Cuba must lease Guantanamo Bay to the U.S. for naval and coaling station. naval and coaling station.

4. Cuba must not build up an excessive public debt.4. Cuba must not build up an excessive public debt.

Puerto RicoPuerto RicoPuerto RicoPuerto Rico

1900 - Foraker ActForaker ActLimited degree of popular Limited degree of popular

governmentgovernment

1901-1903 1901-1903 the the Insular CasesInsular CasesConstitution does not fully Constitution does not fully

apply to apply to territoriesterritories

1917 – Jones Act 1917 – Jones Act

U.S. Citizenship for Puerto U.S. Citizenship for Puerto RicansRicans

Emilio AguinaldoEmilio AguinaldoEmilio AguinaldoEmilio Aguinaldo

LLeader of the Filipinoeader of the FilipinoUprising.Uprising.

July 4, 1946:July 4, 1946:Philippine Philippine independenceindependence

The Boxer Rebellion: The Boxer Rebellion: 19001900

The Boxer Rebellion: The Boxer Rebellion: 19001900

The Peaceful Harmonious The Peaceful Harmonious Fists.Fists.

““55 Days at Peking.”55 Days at Peking.”

The Open Door PolicyThe Open Door PolicyThe Open Door PolicyThe Open Door Policy

Secretary John Hay.Secretary John Hay.

Give all nations equalGive all nations equalaccess to trade in China.access to trade in China.

Guaranteed that China would NOT be Guaranteed that China would NOT be taken taken over by any one foreign power.over by any one foreign power.

Panama: The King’s Panama: The King’s CrownCrown

Panama: The King’s Panama: The King’s CrownCrown

1850 1850 Clayton-Bulwer Clayton-BulwerTreaty (US not allowed Treaty (US not allowed to get exclusive control to get exclusive control over Panama route)over Panama route)

1901 1901 Hay-Paunceforte Hay-PaunceforteTreaty (US free to build Treaty (US free to build and fortify a canal) and fortify a canal)

Panama revolution?Panama revolution?

1903 1903 Hay-Bunau- Hay-Bunau-Varilla TreatyVarilla Treaty. . (US (US purchases rights from purchases rights from French)French)

The Roosevelt Corollary The Roosevelt Corollary to the to the

Monroe Doctrine: Monroe Doctrine: 1905 1905

The Roosevelt Corollary The Roosevelt Corollary to the to the

Monroe Doctrine: Monroe Doctrine: 1905 1905

Chronic wrongdoing… Chronic wrongdoing… may in America, as may in America, as elsewhere, ultimately elsewhere, ultimately require intervention by require intervention by some civilized nation, some civilized nation, and in the Western and in the Western Hemisphere the Hemisphere the adherence of the adherence of the United States to the United States to the Monroe Doctrine may Monroe Doctrine may force the United force the United States, however States, however reluctantly, in flagrant reluctantly, in flagrant cases of such cases of such wrongdoing or wrongdoing or impotence, to the impotence, to the exercise of an exercise of an international police international police powerpower .

Speak Softly,Speak Softly,But Carry a Big Stick!But Carry a Big Stick!

Speak Softly,Speak Softly,But Carry a Big Stick!But Carry a Big Stick!

Treaty of Portsmouth: Treaty of Portsmouth: 19051905

Treaty of Portsmouth: Treaty of Portsmouth: 19051905

Nobel Peace Prize for TeddyNobel Peace Prize for Teddy

Yellow Peril

• Post Russo-Japanese War• Laborers flock to California

• Racial tensions• School discrimination

• Gentlemen’s Agreement• Japan agrees to limit (eliminate?) laborers

headed to California

The Great White Fleet: The Great White Fleet: 19071907

The Great White Fleet: The Great White Fleet: 19071907

The Mexican Revolution: The Mexican Revolution: 1910s1910s

The Mexican Revolution: The Mexican Revolution: 1910s1910s

Victoriano Huerta seizes control of MexicoVenustiano Carranza, Pancho Villa, Emiliano Zapata, and Alvaro Obregon fought against Huerta.The U.S. also got involved by occupying Veracruz and Huerta fled the country.Eventually Carranza would gain power in Mexico.Pancho Villa seizes power – pursued by ‘Blackjack’ Pershing until recalled for WWI

World War I - Causes

1. The Alliance System1. The Alliance System

Triple EntenteTriple Entente::Triple EntenteTriple Entente:: Triple AllianceTriple Alliance::Triple AllianceTriple Alliance::

The Major Players: 1914-17

The Major Players: 1914-17

Nicholas Nicholas II II

[Rus][Rus]

Nicholas Nicholas II II

[Rus][Rus]

George V [Br]George V [Br]George V [Br]George V [Br]

Pres. Poincare Pres. Poincare [Fr][Fr]

Pres. Poincare Pres. Poincare [Fr][Fr]

Allied PowersAllied Powers::Allied PowersAllied Powers::

Franz Josef [A-H]Franz Josef [A-H]Franz Josef [A-H]Franz Josef [A-H]

Wilhelm II [Ger]Wilhelm II [Ger]Wilhelm II [Ger]Wilhelm II [Ger]

Victor Victor Emmanuel Emmanuel

II [It]II [It]

Victor Victor Emmanuel Emmanuel

II [It]II [It]

Central PowersCentral Powers::Central PowersCentral Powers::

Enver PashaEnver Pasha[Turkey][Turkey]

Enver PashaEnver Pasha[Turkey][Turkey]

Europe in 1914Europe in 1914

2. Militarism & Arms Race2. Militarism & Arms Race

1910-1914 Increase in Defense

Expenditures

France 10%

Britain 13%

Russia 39%

Germany

73%

3. Economic & Imperial Rivalries

3. Economic & Imperial Rivalries

4. Aggressive Nationalism

4. Aggressive Nationalism

Pan-Slavism: The Balkans, 1914

Pan-Slavism: The Balkans, 1914

The“Powder

Keg”of Europe

The“Powder

Keg”of Europe

The Assassination: Sarajevo

The Assassination: Sarajevo

Who’s To Blame?Who’s To Blame?

Soldiers Mobilized

0

2

4

6

8

10

12

14

France Germany Russia Britain

Mil

lio

ns

Almost

40 Million

Activated

1914-18

Blood Money or Capitalism?• Loans

• Allies ($4B by 1916)

• Trade with Allies• War goods• Food

• Blockades• British• German

• Enforced by U-Boat

The Sinking of the Lusitania

The Sinking of the Lusitania

Election of 1916

Woodrow WilsonDemocrat

“He Kept Us Out of War”

Charles Evans HughesRepublican

Charles Evasive HughesDove-Hawk

The Zimmerman Telegram

The Zimmerman TelegramWilson proposes

“Peace without Victory”

German response:

Unlimited Submarinewarfare in the warzone!!!

Secret proposal toMexico

Allied Ships Sunk by U-Boats

Allied Ships Sunk by U-BoatsBefore the US Enters the WAR

After the US Enters the WAR

Wilson’s Fourteen Points

• Moral leader of the Allied Cause• KEY POINTS

• Abolish secret treaties• Freedom of the seas• End of economic sanctions• Reduction in arms• Self-determination for colonies• League of Nations (collective security)

1917 – Selective 1917 – Selective Service ActService Act1917 – Selective 1917 – Selective Service ActService Act

24,000,000 men registered for the draft by the end of 1918.

4,800,000 men served in WW1 (2,000,000 saw active combat).

400,000 African-Americansserved in segregated units.

15,000 Native-Americans served as scouts, messengers, and snipers in non-segregated units.

Government Excess & Government Excess & Threats to the Civil Threats to the Civil Liberties of AmericansLiberties of Americans

Government Excess & Government Excess & Threats to the Civil Threats to the Civil Liberties of AmericansLiberties of Americans

1. Espionage ActEspionage Act – 1917 - forbade actions that obstructed recruitment or efforts to promote insubordination in the military. - ordered the Postmaster General to remove Leftist materials from the mail. - fines of up to $10,000 and/or up to 20 years in prison.

Government Excess & Government Excess & Threats Threats to the Civil Liberties of to the Civil Liberties of AmericansAmericans

Government Excess & Government Excess & Threats Threats to the Civil Liberties of to the Civil Liberties of AmericansAmericans 2. Sedition ActSedition Act – 1918

- it was a crime to speak against the purchase of war bonds or willfully utter, print, write or publish any disloyal, profane, scurrilous, or abusive language about this form of US Govt., the US Constitution, or the US armed forces or to willfully urge, incite, or advocate any curtailment of production of things necessary or essential to the prosecution of the war…with intent of such curtailment to cripple or hinder, the US in the prosecution of the war.

Government Excess & Government Excess & Threats Threats to the Civil Liberties of to the Civil Liberties of AmericansAmericans

Government Excess & Government Excess & Threats Threats to the Civil Liberties of to the Civil Liberties of AmericansAmericans3. Schenck v. USSchenck v. US – 1919

- in ordinary times the mailing of the leaflets would have been protected by the 1st Amendment. - BUT, every act of speech must be judged acc. to the circumstances in which it was spoken. -The most stringent protection of free speech would not protect a man in falsely shouting fire in a theater and causing a panic. [Justice Oliver Wendell Holmes] - If an act of speech posed a clear and present danger, then Congress had the power to restrain such speech.

Council of National Council of National DefenseDefenseCouncil of National Council of National DefenseDefense

War Industries Board – Bernard Baruch

Food Administration – Herbert Hoover

Railroad Administration – William McAdoo

National War Labor Board – W. H.Taft & Frank P. Walsh

Results of This New Results of This New Organization of the Organization of the Economy during WWIEconomy during WWI

Results of This New Results of This New Organization of the Organization of the Economy during WWIEconomy during WWI

1. Unemployment virtually disappeared.

2. Expansion of “big government.”3. Excessive govt. regulations in eco.4. Some gross mismanagement

overlapping jurisdictions.5. Close cooperation between public

and private sectors.6. Unprecedented opportunities for

disadvantaged groups.

Labor Issues vs. PatriotismLabor Issues vs. PatriotismLabor Issues vs. PatriotismLabor Issues vs. Patriotism

Post-war labor unrest: Coal Miners Strike of 1919.

Steel Strike of 1919.

Boston Police Strike of 1919.

Opportunities for Opportunities for African-Americans in African-Americans in WW1WW1

Opportunities for Opportunities for African-Americans in African-Americans in WW1WW1

“Great Migration.” 1916 – 1919 70,000

War industries work.

Enlistment in segregated

units.

Increased Racial Tension

• African-Americans used as strike breakers

• Great Migration expands urban issues• Overcrowding• Economic competition• Segregation

• Race riots / lynching increase

Role of Women

• Patriotism and opportunity lead to female factory workers and farmers

• Wilson endorses (finally) suffrage as a “vital necessity” for the war effort

• Economic, social, and political strength

Wilson Fights for Peace

• Early 1918 German military takes over the German government

• German Kaiser began peace negotiations• German army/navy mutiny• Germany surrenders 11/11/1918 @ 11:00 a.m.

• Last allied offensive 9:00 a.m. • Last deaths @ 10:59 a.m.

• Wilson travels to Paris for negotiations• No Republicans invited

Treaty of Versailles

• Britain and France wanted harsh conditions to insure Germany would not be a threat again

• Conditions:• Germany accepts blame for the War• Germany has to pay 132 billion in

reparations• Alsace-Lorraine returned to France• German military drastically reduced• Colonies become protectorates of Allies• Nine new nations created – Czechoslovakia,

Hungary, Romania, Serbia, Poland, Lithuania, Estonia, Latvia, and Finland

Weaknesses of the Treaty

1. Humiliates Germany2. Ignores Russia

- Separate peace with Germany 1917- Russian Revolution

3. Reassigns colonies – not self-determination or freedom

Domestic / Political Issues

• Isolationists• Henry Cabot Lodge

• Led opposition of “moral” pledge – Article 10 (US OBLIGATED to help w/o Congress)

• Successfully delayed treaty hearings

• Wilson – inflexible• Who kills the treaty?

Consequences of the War

• Human – 10 million dead, 25 million injured• Economic - $330 billion, destruction of

European economy • Physical destruction of property• Political – End of German, Austrian, Russian,

and Ottoman Empires• Creation of weak states• Establishment of communism• Psychological – deepens and expands

nationalism, expands pessimistic view of humanity

US Consequences of WWI

• 120,000 dead – 300,000 injured• Accelerates America’s emergence as

world’s greatest industrial leader• Relocates American population to urban

areas• Increases anti-immigrant and anti-radical

sentiments

Post-War America

Roaring Twenties & Depressing Thirties

Post-War America

• Renewed isolationism• WHY?

• Increased suspicion of foreign-born people• WHY?

• Increased political conservatism• Turning away from progressive reforms

Attorney General, A. Mitchell Palmer (The Case Against the Reds) Palmer Raids 1920

Sacco & Vanzetti Trial

Union membership = communism Decline in Union Membership

Protect America from foreign ideas and people

“The Red Scare”:

Return of the Klan

• By 1924 membership = 4.5 million• Beliefs

• Keep “blacks in their place”• Drive Catholics, Jews, and foreign-born out of

the country• Enforce prohibition• Oppose labor unions

Immigration Act of 1924• AKA the National Origins Act, Asian Exclusion Act or the

Johnson-Reed Act• Limited the number of immigrants who could be admitted from

any country to 2% of the number of people from that country who were already living in the United States in 1890.

• Excluded immigration to the US of Asian laborers,[1] specifically Chinese immigrants [2] and had the effect of preventing Japanese Americans from legally owning land.

• The law was aimed at further restricting the Southern and Eastern Europeans who had begun to enter the country in large numbers beginning in the 1890s, as well as East Asians and Asian Indians, who were prohibited from immigrating entirely.

• It set no limits on immigration from Latin America.

Immigration Changes

Red = North/West

Europe

Blue = South/East

Europe

The Prohibition Experiment1920-1933• Causes

• Various religious groups thought alcohol was sinful

• Need to protect the public’s health

• Alcohol leads to crime, domestic abuse, and job issues

• Nativism – against foreign born brewers and immigrants that used alcohol

• Effects• Widespread disregard for

the law• Increased smuggling and

bootlegging• New source of criminal

income• Birth of organized crime

Science vs. Religion

• Fundamentalism – literal interpretation of the Bible

• Adam & Eve or a Monkey?• Evolution theory• Creation theory

• The Scopes Trial• Bryan vs. Darrow

Business of America

• Impact of the Automobile• Paved roads• Urban sprawl• Independence and economic revolution

• Airplanes• Electric Conveniences

• Radios ($75), washing machine ($150), sewing machine ($60)

• Advertising, credit, and consumer choices

The Twenties Woman

• Fashion • What do clothing styles reflect?

• Actions• Smoking, dancing, and drinking

• Relationships• Marriage• Double standard• Birth Control – Margaret Sanger• Sigmund Freud – Repression is unhealthy?

• Work• 10 million women workers (24% of the total)

African-Americans

• Great Migration• By the end of the 1920’s almost five million

African-Americans lived in cities (40%)• Huge numbers of race riots (25 in 1919)

• Goals – NAACP • Protest racial violence• Promote legislation to protect African-

American rights

Marcus Garvey

• Founded Universal Negro Improvement Association• Promote African-American businesses

• Support a ‘Back to Africa’ movement• Black Star Line

• Colonize a nation

• Convicted of mail fraud and jailed

• Legacy = black pride, economic independence and reverence for Africa

Harlem Renaissance

• Literary and artistic movement celebrating African-American culture• Why Harlem?

• Mix of southerners, West Indies, Cuba, Puerto Rico, and Haiti• World’s largest black urban community

• Key figures• Claude McKay – militant poet• Langston Hughes – poet• Louis Armstrong – Jazz musician• Duke Ellington – Jazz musician

Isolationism in the New World

• Washington Conference• Reduce Naval Arms race• Limit base building in Far East

• Kellogg-Briand Pact• International agreement against using war as an

instrument of national policy• Small problem:

• No way to enforce• No provision for military or economic sanctions against any

nation that violated the pact

Double Trouble

• Economic isolationism = Tariff Walls• Thirty two increases in six years• Pressures Europe to respond in kind• Future outcomes?

• Teapot Dome (or the Return of Grant)• Secretary of the Interior Fall leases oil lands to private

business in exchange for $400k (loans)

Debt, Debt, and more Debt

• Creditor status• $16 B owed: how to collect?• Allies issues

• Tariffs reduce sales which reduce payments

• Reparations from Germany• French occupation of the Ruhr Valley

• Cripples economy – hyperinflation

• Dawes Plan

Dawes Plan

Main points of The Dawes Plan were:1. The Ruhr area was to be evacuated by Allied occupation

troops. 2. Reparation payments would begin at 1 billion marks for

the first year and should rise over a period of four years to 2.5 billion marks per year.

3. Foreign loans (primarily from the United States) would be made available to Germany.

Goal: Repayment of debts by Allies to US (BIG CIRCLE)

Hoover’s Early Actions

• Help the Farmers (McNary-Haugen)• Buy surplus = boost prices• Problems with this plan?

• Hawley-Smoot Tariff• Highest protective tariff in peacetime• Decreases foreign purchases• Raises foreign tariffs• Fuels anti-American attitudes

The Stock Market Crash – The Final Straw!!!• Crash – 10/29/29 (16 million shares traded)

• By mid-November investors lost $30 Billion• By end of December investors lost $10 Billion

more……..

Short Term Effects 1929-33• Bank Failures

• By 1933, 6000 banks closed (25% of all banks)• 9 million individual savings accounts lost

• Manufacturing output cut in half• 85,000 businesses went bankrupt

• Unemployment• 1929 – 3% of eligible workers unemployed• 1933 – 25% of eligible workers unemployed• Remaining workers take reduced pay and hours

Impacts – Urban Areas

• Widespread homelessness • Creation of shantytowns (Hoovervilles)• Begging, soup kitchens, bread lines• Destruction of families• “Riding the rails” > 2 million men

• Increased racial tensions• Competition for employment

Impacts in Rural Areas

• Huge numbers of farm foreclosures (over 400,000 between 1929-1932)

• Environment issues• Overproduction destroys soil• Extreme drought creates ‘Dust Bowl’

• Migrant families• Farmers move West for work

President Hoover’s Reactions

• “Any lack of confidence in the economic future…..is foolish”• Remain optimistic!

• Rugged individualism – succeed through effort

• Limited government involvement in economy• Federal building projects – Boulder Dam

• Federal Farm Board – help raise farm prices

• Reconstruction Finance Corp – loan money to banks, industries, etc. (up to $2 billion)

The Bonus Army

• WWI veterans scheduled to receive a ‘bonus’ in 1945 (about $500 each)

• 20,000 march to Washington in 1932• WE WANT OUR BONUS NOW!!!!• Created a shantytown outside of Washington

• Hoover orders them to leave (most obey)• 2000 stay and are removed by US Army with

force (gas and bullets)• Nation is shocked!

Franklin Delano Roosevelt

• Promised “A New Deal for the American People”• Three goals:

• Relief for the needy

• Economic recovery

• Financial reform

• Used radio broadcasts (fireside chats) to explain goals to the people

Financial Reform

• Emergency Banking Relief Act of 1933 • Close all banks (bank holiday)• Only financially secure banks reopened• Support stable banks with Federal Treasury (print more

money)• Glass-Steagall Banking Act of 1933 – provide

federal insurance for individual accounts (FDIC)• Call in the gold supply• Temporarily take US off gold standard• Treasury buy gold at market price

Relief for the Needy

• Jobs• Civilian Conservation Corp (CCC) provided jobs for

young men building roads, parks, and planting trees• Federal Emergency Relief Administration (FERA) –

payments to states for direct relief or wages for work projects

• Civil Works Administration (CWA) provided construction and teaching jobs – short term

• Works Progress Administration (WPA) – created jobs for 8 million people in everything from construction to music teachers

More Relief for the Needy

• Direct Relief• Federal Housing Administration – government

loans for home mortgages• Agricultural Adjustment Act – raise prices by

lowering production and loans to meet mortgages

Critics

• Huey Long (Kingfish)• Share the Wealth Program

• Tax Rich

• $5000 per family initially

• $2000 minimum annual income

• Government support for pensions, education, and veteran’s benefits

FDR labels him asone of the two mostdangerous men in America!

More Critics

“The great betrayer and liar, Franklin D. Roosevelt, who promised to drive the money changers from the temple, had succeeded [only] in driving the farmers from their homesteads and the citizens from their homes in the cities. . . I ask you to purge the man who claims to be a Democrat, from the Democratic Party, and I mean Franklin Double-Crossing Roosevelt."

Father Coughlin1/3 of Americans listened to his weekly radio broadcasts

Economic Populist with an Anti-Semitic twist*

More CriticsDr. Francis Townsend

$200 per month per Senior Citizen

Economic Reform

• National Recovery Act – promote fair business practices• Set competitive prices• Establish work standards for hours and child labor• Provide workers with the right to unionize and conduct

collective bargaining• Ruled unconstitutional (unanimously) by Supreme

Court – “Sick Chicken” Decision

Sick ChickensSchechter Poultry Corp. v. United States (1935)

• Schecter Poultry was alleged to have sold unfit chicken to a butcher. Schecter and the butcher are both based in Brooklyn New York. Schecter did no out of state business.

• Schecter Poultry Co. was charged by the federal government which argued that under the National Industrial Recovery Act Schecter Poultry can be regulated by the federal government which under the NRA set up codes in cooperation with various industries.

• Schecter Poultry argued that the NIRA was unconstitutional because the federal government had no right to regulate intrastate trade.

• The Supreme Court citing Gibbons v Ogden as the precedent reversed the lower courts decision in Schecter and struck down the NIRA as unconstitutional. The Supreme Court thus said reaffirmed the fact that the federal government may not regulate intrastate trade only interstate trade.

More Programs

• Public Works Administration (PWA) provided money to the states for school and public building construction

• Agricultural Adjustment Act – raise prices by lowering production• Subsidized scarcity or organized waste

• Creates more unemployment

• Taxing regulations ruled unconstitutional

Dust Bowl

• Creates massive relocation of Plains farmers to West Coast

• Migrant farmers• Regional protection

from “Okies”

Financial Reform

• Federal Securities Act requires companies to:• Provide complete

factual financial information about the company

• Created rules for ‘insider’ information

3/10/04 - Stewart convicted on all charges

Tennessee Valley Authority

• Massive Project intended to:• Control flooding (20 dams)• Generate electricity• Stimulate impoverished region• Create jobs

SSA 1935

• Social Security Act provided:• Retirement insurance – supplemental insurance

for retirees 65 or older• Unemployment compensation• Aid to families with children and the disabled• Financed by a payroll tax on employers and

employees

Labor Reforms

• National Labor Relations Act (Wagner Act) • protects workers from unfair labor practices• reaffirms the right to organize and bargain collectively

• Committee for Industrial Organization (CIO)• John L. Lewis forms union of unskilled labor• Successful with GM, USS

• Fair Labor Standards Act – set modern labor rules on hours, ages, and minimum wages

1936 Election Trivia

• FDR won 46 of 48 states• 98.5% of Electoral Votes (two party record)

• FDR won almost 61% of popular vote (record at that time)

• George Gallup accurately predicated the winner using a ‘scientific’ poll for the first time

• FDR believes the landslide equates to complete public support for New Deal

The Issue with the Court

• "A part of the problem of obtaining a sufficient number of judges to dispose of cases is the capacity of the judges themselves. This brings forward the question of aged or infirm judges--a subject of delicacy and yet one which requires frank discussion. In exceptional cases, of course, judges, like other men, retain to an advanced age full mental and physical vigor. Those not so fortunate are often unable to perceive their own infirmities. . . A lower mental or physical vigor leads men to avoid an examination of complicated and changed conditions. Little by little, new facts become blurred through old glasses fitted, as it were, for the needs of another generation; older men, assuming that the scene is the same as it was in the past, cease to explore or inquire into the present or the future."

• FDR note to Congress proposing legislation to allow the Executive to add judges to courts where sitting judges were 70 or older and refused to retire

The Public’s View

After 6 months of debate,Congress voted againstchanging the Constitution.

However, most Courtdecisions after the debatesupported New Deal legislation.

Keynesian Economics 1,2,31. Modern economies are driven by demand for goods and services. When demand is high,

the economy is healthy. When demand drops, the economy goes into recession.

2. When an economy goes into recession, it might recover by itself, but it might not. Sometimes demand needs to be stimulated.

3. There are three segments of the economy that drive demand, and each responds to different stimuli:

• Consumers. For the most part, consumers simply spend what they earn, so there's not much that can be done to stimulate consumer demand (though this has changed since 1936 — see below for more details).

• Business. Spending by businesses can be stimulated by lowering interest rates so that loans for capital equipment are cheaper. This is the first line of attack during a downturn.

• Government. If that's not enough, government can pick up the slack by running deficits and buying more goods and services itself. This is the second line of attack.

More on Keynesian Economics

• Of course, the opposite is also true: if the economy is overheating, you can cool it down by raising interest rates or running a budget surplus. The basic idea is simply that aggregate demand drives the economy, so the goal of fiscal policy should be to manage demand in order to achieve sustainable long term growth rates.

National Debt

• Debt doubles from $19.5 B to $40.4 B in eight years!

• Lots of critics• Brain trust = commies

• Pro Jewish

• Handout state

Success or Failure?

No end to the Depressionbut what did it accomplish?

Long Term Impacts of the New Deal

1. Deficit spending

2. Expanding government’s role in the economy

3. Protection of workers’ rights

4. Banking and Finance Reform

5. Social Security

6. Environmental protection

End of the Depression?

• Although the New Deal programs relieved the nation’s suffering and provided hope for the American people……..

• The massive spending for equipment and supplies for WWII truly ended the Great Depression!!!

Domestic Focus

• London Economic Conference 1933• Attempt to develop a coordinated attack on the

Great Depression• Stabilize currencies and exchange rates• Revive global trade

• US chooses to not participate• Currency agreements would limit FDR’s financial

recovery plans

• Impacts of US non attendance?

Foreign Policy Shifts

• Expensive imperialist policy• Release Philippines (1946)

• Recognize Soviet Union• Why?

• Trade and balance of power

• Good Neighbor Policy• Abandon cousin Teddy’s corollary (no armed intervention in Latin

America)• Reciprocal Trade Agreements

• Reduce tariffs to increase free trade• Reversed tariff=prosperity trend• Improved foreign relations

Rise of the Dictators

• Causes• Harsh treaty conditions• Failed democracies• Worldwide economic crisis

• Impacts• Stalin – Soviet Union• Mussolini – Italy• Hitler - Germany

U. S. Neutrality Acts:1934, 1935, 1937, 1939

U. S. Neutrality Acts:1934, 1935, 1937, 1939

U.S. Isolation or Intervention?

• League of Nations – failure• Isolationism – 70% of Americans felt involvement

in WWI was a mistake • Neutrality Acts

• No sale or loans to nations at war• No sale or loans to nations undergoing civil war

• “Quarantine Speech”• Roosevelt urges 90% who want to live in peace to

isolate 10% who threaten a breakdown of international law and order

Appeasement: The Munich Agreement, 1938

Appeasement: The Munich Agreement, 1938

Now we have “peace in our time!” Herr Hitler is a man we can do

business with.

Now we have “peace in our time!” Herr Hitler is a man we can do

business with.

British Prime Minister Neville British Prime Minister Neville ChamberlainChamberlain

The Nazi-SovietNon-Aggression Pact, 1939

The Nazi-SovietNon-Aggression Pact, 1939

Foreign Ministers Foreign Ministers von Ribbentrop & von Ribbentrop &

MolotovMolotov

Poland Attacked: Sept. 1, 1939

Poland Attacked: Sept. 1, 1939

Blitzkrieg [“Lightening War”]

Blitzkrieg [“Lightening War”]

9/3/39Britain &FranceDeclareWAR!!

America-First Committee

America-First Committee

Charles Lindbergh

Charles Lindbergh

Great Britain.........................$31 billionSoviet Union...........................$11 billionFrance......................................$ 3 billionChina.......................................$1.5 billionOther European.................$500 millionSouth America...................$400 million

The amount totaled: $48,601,365,000

Great Britain.........................$31 billionSoviet Union...........................$11 billionFrance......................................$ 3 billionChina.......................................$1.5 billionOther European.................$500 millionSouth America...................$400 million

The amount totaled: $48,601,365,000

U. S. Lend-Lease Act,1941

U. S. Lend-Lease Act,1941

The Atlantic CharterThe Atlantic Charter Roosevelt and Roosevelt and

Churchill sign treaty Churchill sign treaty of friendship in of friendship in August 1941.August 1941.

Solidifies alliance.Solidifies alliance. Fashioned after Fashioned after

Wilson’s 14 Points.Wilson’s 14 Points. Calls for League of Calls for League of

Nations type Nations type organization.organization.

Why Attack Pearl Harbor?

• US Embargo on Japan• No gasoline, oil, lubricants• Freeze Japanese assets in American banks

• US Demands (to end embargo and restore trade)• No further aggression – end alliance with Germany• Leave China and IndonesiaUS Beliefs• Japan not prepared or strong enough to attack• War only if attacked!