Title: U.S. EOC Review PART II
1U.S. EOC ReviewPART II
2 American Imperialism (Turn of 20th Century)
- Post-Civil War, most Am. showed little interest
in expanding their nations territory
international influence. Instead, they focused on
reconstructing the South, building up the
nations industries settling the West. - Beginning in the 1880s, however, American
opinion began to shift. More people wanted to
make the United States a world power. - Reasons for imperialism new markets, more
materials, manifest destiny/anglo-saxonism, and
The Influence of Sea Power Upon History - Imperialism- the economic and political
domination of a strong nation over other weaker
nations. - At the time, there was economic military
competition from other powerful nations (Germany,
France, England, and Russia were all expanding
and imperializing other weaker nations) they
were all competing to become the worlds
superpower America, having just industrialized,
was not about to fall behind. - Alfred Mahan argued for building a modern navy,
support for this grew in the late 1800s to avoid
being shut out of foreign markets.
3REASONS FOR IMPERIALISM
- ECONOMIC REASONS FOR IMPERIALISM Actions in the
Pacific/Latin America were primarily taken to
improve the U.S. economically. - ECONOMIC REASONS No one (1) country has all the
rubber, tin, oil, and other resources it takes to
maintain a good economy. - Because factories depend on raw materials to make
their products, it was necessary to go out and
find more and more raw materials. - The question thus became What countries have
stuff and are they weak enough for America to
politically and economically (and sometimes
militarily) exploit them? Asia and the Caribbean
provided the answer to that question. - In a sense, this fed right along with the ideas
of Social Darwinism powerful nations most
adapted, weaker nations less adapted and
therefore destined to be dominated and exploited. - Also, the US made a lot of stuff during the
industrial era. There were only so many Americans
who would buy it. In order to sell to more,
American businessmen needed to go out and find
more and more countries to open up trade with. - MORAL REASONS FOR IMPERIALISM- Manifest Destiny-
the idea that God destined America to keep
expanding and that it is Americas moral purpose
to spread civilization and American
Christianity throughout the world, especially
the weaker ones who were misfortunate by not
having these advancements.
4CAUSES SPANISH-AMERICAN WAR
- Cuba Cuba was an important and highly profitable
sugar cane colony of Spain. Beginning in the
1890s, the US and Cuba had an agreement where
they would be allowed to set up sugar cane
plantations, railroads and mines in Cuba (with
Spanish permission, of course). For a long time,
trade with the US helped fuel the Cuban economy,
until in the late 1890s Cuba hit a depression.
Soon, Cubans started calling out for independence
from Spain. - Led by rebel Jose Marti, the Cubans began a
revolution for their independence, free from
Spain. But the rebellion was brutally crushed by
Spanish forces there were many war atrocities,
including mass killings and concentration camps
in Cuba. - News of these atrocities reached the US via
yellow journalism (sensational news stories),
this angered Americans enough to hate Spain. - In addition, many Cuban rebels purposely wrecked
American-owned property in Cuba (railroads and
factories) in order to influence wealthy business
owners to cry for war. - Many Americans wanted war with Spain would use
any excuse to start it. In March 1898, the USS
Maine, an American navy ship, blew up off of the
Havana Harbor, Cuba, and immediately the US
blamed Spain. On April 19, 1898, the US declared
war on Spain.
5Consequences The Spanish-American War
- Fighting in Cuba for the Americans was not as
easy as they expected. Many died from disease
caused by unsanitary war conditions more
American soldiers died as a result of disease
than actual combat. Soon, Teddy Roosevelt, then
Secretary of the Navy, quit his high-paying job
to start a group called the rough riders, a
cavalry unit made up of cowboys and miners.
Their courageous war efforts boosted the Am.
advance along with the navy, helped defeat
Spain the Spanish surrendered on Aug. 12 1898.
TR would emerge with the medal of honor and
labeled a war hero. - Philippines The US also helped the Philippines
gain independence from Spain. However, there was
much disagreement between the US and the
Filipinos as how the Philippines would be
controlled, and if the US should stay behind.
After much tension, the US, deciding not to annex
the Philippines, left the island in 1902.
Although it took until 1946 to finally grant them
full independence, the US let the Philippines
become its own independent country, without
annexing it. - Because of the Spanish-American War, the US was
able to acquire Guam (territory), the
Philippines, and Puerto Rico (commonwealth).
Cuba was free (but really became a
protectorate) Guam and Puerto Rico were
annexed, therefore the U.S. became a world
power. More importantly, the Spanish-American war
kicked out most of the original colonial powers
from the Western hemisphere and solidified the
U.S. as the dominant power of the hemisphere.
Platt Amendment the amendment that made Cuba a
protectorate of the US after the Spanish-
American War
6Reasons for building Panama Canal
- Because of the Spanish-American war, the US
realized that they needed a quicker route from
the Pacific to the Atlantic ocean. The US navy
would be much more efficient if a shortcut could
be found. The Panama Canal, if built, would
reduce travel time drastically. - In addition, ownership of the Panama Canal would
mean that the US could make a lot of money and
possess a lot of influence as the country who
possesses the key to door to the Pacific and
Atlantic. It would also increase and make easier
American trade with other countries. - President Teddy Roosevelt pushed for the building
of the Panama Canal at all costs. - Teddy Roosevelt needed the Panama Canal built and
for America to make its presence known throughout
the world. After some political and naval
maneuvering, the US was able to obtain from
Colombia (the original owners of the isthmus of
Panama where the canal was to be built) the
isthmus of Panama. American then, after long
years and work, built the canal!
The Canal proved difficult because of Yellow
Fever (viral) and malaria (bacterial). The
imported workforce kept dying.
7Roosevelt Corollary
- Increased involvement in world affairs and an
increased interest in building the Panama Canal
lead Roosevelt to issue the Roosevelt Corollary,
in which he said that the US would intervene in
Latin American affairs when necessary to maintain
economic and political stability in the Western
hemisphere He called it the Big Stick Policy. - Im going to build a canal, so stay away! Spain
and any power who wants to intervene in the
Americas has to deal with the United States! - This statement of intent is a reminder to the
rest of the world of the earlier stated (81 years
earlier!) Monroe Doctrine of 1823, which also
warned the world powers of the world to stay out
of the western hemisphere. - After Teddy Roosevelt, the next president,
William Howard Taft, adopted dollar diplomacy,
which agreed to financially aid Panama out of
troubles in order to protect American interests
in Panama (specifically, the Panama Canal, of
course).
8Chinas Open Door Policy
- China had remained a traditional society up until
the late 1800s. In 1894, China lost a war against
newly modernized Japan and made China realize
they too needed to modernize and begin trade with
other foreign nations. - China, just having lost a war, was in a weak
state and therefore easy to take advantage of.
The US convinced China that if it needed to
modernize and recover, then it had to open up
its doors to the rest of the world. - Open Door Policy- an international economic
policy in which China opened up its doors for
trade to the rest of the world. - China, though weak at the time, contained on its
land some of the worlds best resources. When
China opened up its doors, all the superpowers
went in established their own economic zones
within the country these zones were called
spheres of influence. - In a sphere of influence, a foreign country comes
into China and sets up their own economic zone
within China in this zone the foreign power
controls the economy (although politically the
land still belongs to China). - Exploitation of Chinese resources began and many
Chinese nationalists were angered.
9The Progressive Era 1890-1920
- Progressivism was primarily a reaction against
laissez-faire economics its emphasis was on a
more regulated market increased government
intervention. - Progressives also believed that government could
and should fix societys problems. - The Progressive Era marks a time when numerous
laws and reform are passed to deal with social
and economic problems in favor of those
struggling. - A muckraker is journalist who exposed social
problems such as horrible living conditions, bad
working conditions, and political. corruption.
After exposure, many times laws and regulation
would get passed as a result. - Example Upton Sinclair wrote The Jungle, which
exposed the dangerous and uncleanliness of the
meatpacking industry. His muckraking led to the
passing of the Meat Inspection Act and government
regulation of food and drugs. - Jacob Riis wrote the book How the other half
lives about the dirty and awful living
conditions of NYCs slum tenement housing. He
also criticized the abundance of alcohol and
saloons in the cities. - Ida Tarbell- a woman, a muckraker that brought
down Standard Oil (Rockafeller) - A small group of Socialists believed in
government ownership of business.
10Progressivism Women Suffrage
- Suffrage means the right to vote.
- After many years of struggle for women, and
numerous failed attempts to pass women's suffrage
amendments, women were finally granted the right
to vote by 1919. - In 1919, the amendment passed (barely).
- Women were granted the right to vote through the
19th amendment. - WOMEN IN THE 1920s
- Women had recently been given the right to vote
(suffrage) by the 19th Amendment in 1919, though
it was not effective until 1920. - Women also used the freedom of the times to live
a more free and fulfilling life. More women were
going to college and as a result many women were
inspired to pursue careers challenge
traditional values.
11Florida and Industry
- Henry Flagler (railroads and hotels- tourism)
- Cigars in Ybor City
- Railroad construction to Key West
- Jose Marti- a Cuban revolutionary who helped to
stir up support for the Cubans in the Spanish
American War. He was important to the large Cuban
population of Florida.
12Causes for WWI
- ALLIANCE SYSTEM In Europe, many countries had
been creating alliances with and against one
another (often in secret). - Triple Alliance Germany Austria Hungary
Italy - Triple Entente Fr Russia GB
- GROWING NATIONALISM There was also growing
nationalism within nations, or jingoism, which
means extreme pride in ones country. - MILITARIZATION AND ARMS RACES The British the
Prussians (Germans) competed in a naval arms race
to see who could produce the worlds largest
navy. - Similarly, many countries competed with each
other to out-militarize each other. Massive
militarization efforts began, with each proud
European country ready to show off its muscle,
and maybe actually use it. - Europe was primed ready for war.
- On October 1914, The assassination of
Austro-Hungarian Archduke Franz Ferdinand by a
Serbian nationalist sparked a war between the
Central Allied powers of Europe.
Allied Powers Central Powers
Russia Britain France Italy (switches sides) Germany Austria-Hungary Italy (part of Triple Alliance but goes to Allies)
Serbia Ottoman Empire
13REASONS why the US got involved in WWI
- UNRESTRICTED SUBMARINE WARFARE
- Woodrow Wilson refused to get involved, even
after 128 Americans were killed when a U-boat
(German submarine) sunk a British passenger ship
called the Lusitania. - A year later, a U-boat torpedoed a French
passenger ship, injuring several Americans.
Wilson told Germany to quit unrestricted
submarine warfare or prepare to fight the US.
Germany actually did NOT want the US getting
involved. - To avoid gaining a new enemy, Germany signed the
Sussex Pledge, which stated that Germany would
not sink anymore merchant ships without warning.
- ZIMMERMAN TELEGRAM
- A German official, Arthur Zimmerman, sent a
telegram to the Ambassador in Mexico promising
him Texas, Arizona, and New Mexico, if, in
return, they would help Germany launch an attack
on the Americans. - But the telegram never made it to Mexico the
telegram fell into the hands of the British, who
quickly leaked it to the American newspapers. - Americans were furious.
- After its publication, Germany resumed
unrestricted submarine warfare, sinking 6
additional US merchant ships. - In April 1917 Wilson requested that Congress
declare war on Germany. They did. - MINI REASON We had cultural ties with GB knew
they needed our help against Ger.
14US Home Front MOBILIZING WWI
- US not prepared in 1917. US needed the 3 Ms men
(soldiers), materials, and money!!! - Selective Service Act 1917- (draft) Although
many men volunteered to serve in the war, there
was still a shortage. In response, the government
created a conscription (forced military service)
system that required all men from 21-30 to
register for the draft. A lottery would then
select the draftees. Approximately 2.8 million
men were drafted for WWI. - War Industries Board (WIB)- A government agency
set up to coordinate the production of war
materials. It controlled the flow of war
materials, ordered the construction of new
factories important for war supplies, and
occasionally set prices. - National War Labor Board- made sure that disputes
between workers and bosses did not disrupt war
production. - Liberty Bonds and Victory Bonds to pay for the
war. The US needed money to pay for the soldiers,
the factories, and the materials. They used a
bond system Liberty Bonds and Victory Bonds.
Americans would buy the bond, like a mini-loan to
the US government, and would be able to redeem it
later for more than it was worth. - Fuel Administration- to conserve energy, such as
coal and oil, for the war. - Daylight savings, shortening hours of factories
that made non-essentials, Heatless Mondays. - Food Administration- to conserve food for
soldiers. - Victory Gardens, Meatless Mondays, Wheatless
Wednesdays, etc.
15U.S. HOME FRONT SELLING WAR
- The Committee on Public Information was
responsible for selling the war to Americans.
Their job was to create propaganda (music,
movies, artists) to sway public opinion in
support of the war. - PUNISHING OPPOSITION TO THE WAR SILENCING ANY
CRITICISM - Espionage Act established penalties and prison
term for anyone who gave aid to the enemy. The
act also penalized disloyalty. - Sedition Act made illegal any public expression
in opposition of the war. In practice, it made
illegal any criticism of the president and
government. - These laws were upheld by the Supreme Court when
they argued that government could limit free
speech if speech presented a clear and present
danger. - The Supreme Court ruled in favor of limiting free
speech in the case of Schenck v. the US. You
cant yell fire in a crowed theatre, it puts
people in danger. Therefore, you cant speak out
against the war, it puts America, and our
soldiers, in danger of losing the war.
16Minority Roles during WWI
- Women on the home front - for the first time
women served in the armed forces, but in
non-combat positions nurses and
secretaries/clerical work, mostly. - Once men came back after the war, however, female
employment dropped once again. Women generally
went back to their domestic roles at home,
cooking and cleaning. - NOTE This is in contrast to WWII, where many
women kept their jobs after the war. - African Americans in the military- about 400,000
blacks were drafted. Only about 42,000 served in
combat. - Units were racially segregated and black soldier
were always placed under white officers. - Both women African Americans served separately
from white male soldiers. - African Americans on the home front- With so many
job openings at home during the war, African
Americans were able to obtain jobs they had never
had the opportunity to obtain before. - The job opportunities in industrial jobs up north
led to a mass migration, or the great migration
of African Americans from the south to northern
cities.
17Fighting the War
- The first airplanes and tanks were used in this
war. - The Germans used poison gas, causing the allies
to invent gas masks - The first rapid-fire machine gun
- Fought with trench warfare
18Wilsons Fourteen Points The League of Nations
- Wilsons plan to bring justice to all peoples and
nationalities The Fourteenth Point created a
general association of nations, called for the
establishment of the League of Nations, a
peacekeeping international organization meant to
help preserve peace and prevent future wars by
pledging to respect and protect each others
territory and political independence. Wilsons
Fourteen Points was criticized by the Allied
governments, as well as our own government, as
too lenient toward Germany. It was never fully
adopted by the Allied governments, who wanted to
punish Germany severely for WWI. - THE US SENATE REJECTS WILSONS FOURTEENTH POINT,
THE LEAGUE OF NATIONS - The fourteenth point of Wilsons Fourteen Points,
created a general association of nations, called
the League of Nations, to help preserve peace and
prevent future wars by pledging to respect and
protect each others territory and political
independence. - In opposition of Wilson, The U.S. Senate rejected
the League of Nations - The Senate was worried that the Treaty of
Versailles, specifically the League of Nations,
would eliminate the right of the US to go to war
when it deemed it necessary, not when the League
did. - In short, the Senate worried that the League
would interfere with Americas ability to act
independently in world affairs, which would then
force an entangling alliance with Europeans and
all of their affairs. - The League of Nations was formed in Europe the
U.S. stayed did not join (despite it being
Wilsons idea!).
19TREATY OF VERSAILLES
- Despite Wilsons warnings, the Allied governments
decided to make the Germans sign a harsh treaty.
Establishment of The League of Nations, one of
the only parts the Allied governments Wilson
agreed about, was adopted into the treaty
(armistice- ceasefire or surrender). - The Treaty of Versailles (for Germany)
- Stripped Germany of its Armed Forces and prevent
them from establishing a new one in the future. - Made Germany pay 33 billions in war reparations
to the Allies (the sum was far beyond what
Germany could afford and later put them into a
depression). - Required Germany to admit guilt for the outbreak
of the war and devastation caused (made Germans
resent Allied powers for many years to come). - The long term effects of the Treaty of Versailles
will not be seen until the late 1920s. - It made reparations too high for the Germans-
they werent able to pay them. Which means that
France and Britain werent able to pay the US
back for wartime loans. (On top of this, the US
foolishly raised tariffs in the 1920s, which
further reduced the financial ability of European
countries to pay back loans or make moneyThis is
a major reason that the Great Depression
happened.) - The Treaty of Versailles left many Germans bitter
and poor- in short, perfectly primed to accept a
Fascist dictator.
20Preventing future World Wars
- THE WASHINGTON NAVAL CONFERENCE
- The world's popular mood was peace and
disarmament throughout the 1920s. - At the end of the Great War( WWI), the Americans
and Japanese were rapidly building expensive new
warships in competition with one another. - Observers (concerned countries and allies of both
Japan and the USA) increasingly pointed to the
American-Japanese rivalry for control of the
Pacific Ocean as a long-term threat to world
peace. - To stop a needless, expensive and possibly
dangerous arms and naval race, the major
countries signed a series of naval disarmament
agreements at The Washington Naval Conference,
which led to an effective end to building new
battleship fleets (and those few ships that were
built were limited in size and armament). - The Treaties made during the Washington
Conference the Four Power, Five Power, Nine
Power treaties all dealt with keeping peace in
the Pacific Ocean. - KELLOGG-BRIAND PACT
- The 1928 Pact renounced the use of war and called
for the peaceful settlement of disputes. It was
an agreement by all countries who signed it to
avoid any aggressive conflicts and/or military
action it essentially (though not very
realistically), outlawed war.
21US Attitude 1920s (The Roaring Twenties)
- America returned to Normalcy (normal times,
unlike WWI) after the horrors of WWI and the
social changes of the Progressive Era. - This meant that the US adopted a policy of
Isolation in foreign policy and laissez-faire in
domestic economic policies. - Generally, the economy prospered during the early
and mid 1920s. - Socially, a return to American values was
desired by American fundamentalists, or those
that advocated a return to Christian values. But
many people were disillusioned by WW1 and had
money from the war-gt new morality - Scopes Monkey Trial (1925) biology teacher
Scopes taught evolution in schools rather than
creationism, which went against Tennessees
Butler Act law that made it illegal to teach
evolutionism in a state-funded school - A more powerful movement calling for the band of
alcohol also gained significance and by 1919,
Prohibition, or the ban of alcohol, was enacted
with the 18th amendment (carried out by the
Volstead act). The 21st Amendment repealed
Prohibition. - All of this did not stop a new rebellious young
culture from emerging though! - A New Morality also arose at this time (e.g.
flappers rebellious short-haired women, womens
voting rights, working opportunities not stay at
home cooking!, living a free single life,
driving around in cars, dancing to ragtime,
listening to Jazz and Blues)
22US Attitude 1920s (The Roaring Twenties)
- They were called the roaring twenties because
of the economic boom that occurred as a result of
return to Laissez-faire and normalcy. Industry
boomed, thanks to mass production. Since people
had money, they bought stuff. A lot of stuff. If
they didnt have the money right then, they
bought on credit or used the installment plan
(think layaway at Walmart). - People bought too much though, and soon the
entire economy would collapse because of
overproduction and consumerism. - Due to the conservative backlash of the 1920s
(red scare, return to laissez-faire and normalcy)
the KKK experienced a resurgence at the time. It
was huge! It was able to earn this popularity due
to one of the first uses of modern marketing! The
KKK hired professional advertisers and marketers,
an example of how consumerist the 1920s had
become. - However, because of scandals within the
organization, it declined in popularity. - A few Floridians became quite popular in the
1920s- both female writers, one black Zora Neale
Hurston, who told folk stories in authentic
voices and one white Marjorie Kinnan Rawlings,
who wrote about the struggle of life in the wilds
of florida (the Yearling).
23US Isolation
- After WWI, most Americans wanted to avoid future
wars by avoiding involvement in European affairs. - In foreign policy, the US wanted isolation- to be
left alone and to leave others alone. This
attitude is illustrated in multiple ways - The US refused to sign the Treaty of Versailles,
it did not want to be roped into other countries
problems - High tariffs. The US used the tariffs as economic
walls, blocking it off from other countries,
hoping that the tariffs would help expand
American industry and the American economy. - Increased nativism against immigration,
especially from Southern/Eastern Europe. - Ex Emergency Quota Act National Origins Act of
1924 -immigration is getting more restrictive
post-WWI - Sacco Vanzetti Case Italian immigrants
radicals arrested for robbery/murder sentenced
to death executed 1927 represented strong
nativism fear of anarchists/Red Scare of the
1920s
24Effect of US isolation on Europe
- IT IS VERY IMPORTANT TO NOTE- the high tariffs
passed by the US interfered with the ability of
countries like Ger, GB Fr to make enough to
pay back their war debtsThe tariffs essentially
caused a stoppage of internationally circulating
money-a cause of the Great Depression. - AN EXCEPTION TO US ECONOMIC ISOLATION
- Dawes Plan- because many of the Eur. countries,
including Ger., were having trouble repaying
their war reparations (as agreed upon in the
Treaty of Versailles) the US began an economic
aid program to provide short term economic
benefits to the Ger. eco. It softened the burdens
of war reparations, stabilized the currency, and
brought increased foreign investments and loans
to the Ger. market. - However, it made the Ger. Eco. dependent on
foreign markets and economies, and therefore
problems with the U.S. economy (e.g. the Great
Depression) would later severely hurt Ger. as
well. - LOOKING AHEAD TO THE RISE OF HITLER
- The fact that the Great Depression was SO bad in
Ger. was a reason that Hitler was able to rise to
power-people were desperate and his message was
hopeful to Ger.
251920s US Domestic Economy
- Generally, the US enjoyed economic prosperity
during the 1920s. - Laissez-Faire- Let them do. In other words, the
US government had as few restrictions on
industry. - In combination with the creation of the Assembly
Line (new more efficient ways of producing goods
faster and cheaper than ever before) and the
resulting Mass Production that came out of it,
the US was able to create a situation where jobs
were plentiful, wages were fairly high (because
manufacturers could afford to pay them), and
prices were low. - Henry Fords assembly line process for making
cars increased production/efficiency by dividing
the job into simple tasks. - This created the ultimate consumer culture-
Americans had money, or credit and installment
plans, and they wanted a lot of things and ended
up spending (or borrowing) a lot. - Unions declined during the 1920s in part because
many corporations instituted welfare capitalism.
26Harlem Renaissance
- African Americans had moved from the south to the
north in large numbers during WWI due to the
number of jobs made available by the war (the
first mass migration). They settled in
concentrated numbers in large cities like New
York (Harlem) and Chicago. - This conglomeration of people brought their art,
music, and dance styles from black culture and
from it emerged the Harlem Renaissance- was an
artistic and cultural movement (including music,
poetry, art, literature, etc.) of the 1920s that
originated out of urban Harlem.
- Langston Hughes
- Zora Neale Hurston
- Claude McKay
- Jean Toomer
- Alan LeRoy Locke
- W. E. B. DuBois
- Marcus Garvey
27Booker T. Washington WEB Du Bois
- The two most notable African American activists
in the 1920s were Booker T. Washington and WEB Du
Bois. - Booker T. Washington believed that
African-Americans needed to concentrate on
attaining education and financial prosperity
before demanding political rights. - WEB Du Bois (who founded the NAACP) demanded an
immediate protection and equality of
African-Americans through political means. - One thing they both agreed on, however, was the
need for the African-American community to
produce great black leaders. - Another notable black rights figure is Marcus
Garvey- believing true justice would never be
obtained in America, he advocated a
Back-to-Africa movement, in which called upon
blacks to return to the land they were taken
from rather than having to put up with
discrimination persecution in the US.
28Causes of the Great Depression
- The effects of the Great Depression were felt
across the world. Not only did it lead to the New
Deal in America but more significantly, it was a
direct cause of the rise of extremism in Germany
leading to World War II. - 1. Stock Market Crash of 1929
- Leading up to the stock market crash of 1929,
there had a been a long bull market, or market
where stocks are on the rise. In October 1929,
the stock marketed plummeted and overconfident
and heavily invested stockholders lost tens of
billions of dollars. The stock prices fell
because investors began to sell their stock.
People were buying their stock on margin, putting
them in the hole to brokers as well - 2. Overproduction
- American businesses earned record profits after
WWI and during the 1920s American businesses
then reinvested much of these profits into
expanding their business. The problem was, that
at that time, the tariff was raised to 60 what
this meant was that trade with other countries
decreased, as did, in retaliation, their tariff
rates. LESS TRADE NO ONE TO SELL AMERICAN
PRODUCTS TO SURPLUS/OVERPRODUCTION. With so
many business now unable to rely on international
trade, they were not able to pay back many of the
loans they had borrowed from banks for production
costs. - 3.Bank Failures
- Throughout the 1930s over 9,000 banks failed.
Bank deposits were uninsured and, thus, as banks
failed, people lost their savings. Surviving
banks, unsure of the economic situation and
concerned for their own survival, stopped being
as willing to give out new loans. The Federal
Reserve contributed to the Depression by lowering
loan rates. This provided incentives for large
loans to be taken out and these were often spent
on risky investments speculation. - 4. Reduction in Purchasing Across the Board
- With the stock market crash and widespread bank
failure, people stopped purchasing items. This
then led to a reduction in the number of items
produced and thus a reduction in the workforce.
The unemployment rate rose above 25 which meant,
of course, even less spending to help alleviate
the economic situation. ALSO HIGH TARIFFS
REDUCED WORLD TRADE. - 5. Drought Conditions
- While not a direct cause of the Great Depression,
the drought that occurred in the Mississippi
Valley in 1930 was of such proportions that many
farmer could not even pay their taxes or other
debts and had to sell their farms for no profit
because the soil had dried up. The dried up
region of the Mississippi Valley was nicknamed
"The Dust Bowl. ? Many headed West (Grapes of
Wrath)
29Hoovers Response to the Great Depression
- HOOVERS IDEOLOGY
- Hoover was a strong laissez-faire advocate he
believed in a balanced budget and not pumping
government money into the economy, which he
thought would lead to inflation. - Hoover opposed direct federal government relief
because he though only the state/city governments
should be responsible for that. - He believed in "rugged individualism," which
relies on the individual, the churches and
private charities, and the local and state
governments to handle most of the economic help
that was needed. While not believing in
government assistance, Hoover did try and give
much of his personal money to charity and
encouraged Americans to do the same. - HOOVERS RESPONSE TO THE DEPRESSION
- During Hoovers Administration (despite Hoovers
personally beliefs about government intervention
in the economy) the government spent 1.5 billion
a year on public works and relief in the
following ways (1) road, public-building, and
airport-construction projects, (2) increasing the
countrys credit facilities, strengthening
the banking system. (3) direct relief, 300
million, to the states for relief. - Congress during the Hoover presidency, most
significantly, established the Reconstruction
Finance Corporation, or RFC, which created an
agency to help banks, railroads, and other key
businesses to stay in business thus helping the
economy. - All of these things, however, could not stem the
tide of the economic collapse.
30Hoovervilles and Bonus Army
- In appreciation of WWI veterans, the US
government promised returning veterans a 1000
bonus to be given to them in the year 1945. - By 1931, though, many veterans were feeling the
effects of the depression and demanded their
1000 bonus be given to them immediately and not
have to wait until 1945. - Thousands of veterans, known as the bonus army
or bonus marchers, marched to Washington DC,
where they camped in Hoovervilles (a term
generally used for the slums, or shantytowns
shacks for which Hoover was blamed for during
the Great Depression). - President Hoover ordered troops to break up the
Hooverville gunshots and fires went off, two
veterans were killed in the chaos. The scene
received nationwide press coverage and showed
newsreel images of veterans being assaulted by
the presidents troops. - This event made the already unpopular President
look like a villain. Public opinion of Hoover
dropped significantly.
31FDR Keynesianism
- FDRs political ideology Keynesianism ALL ABOUT
GOVERNMENT INTERVENTION IN THE ECONOMY - Keynesianism argues that that the solution to
the Great Depression was to stimulate the economy
through some combination of two approaches - 1. A reduction in interest rates (by reducing the
interest rate at which the central bank lends
money to commercial banks, the government sends a
signal to commercial banks that they should do
the same for their customers. - 2. Government investment in infrastructure
(investment by government in infrastructure
injects income into the economy by creating
business opportunity and employment).
32FDR THE NEW DEAL
- To fight the Depression, Roosevelt believed that
the 1st thing that had to be done was restore
public confidence in the banks (FDR continued
with bank holidays and his fireside chats). And,
the Securities Exchange Commission was created
to regulate the stock market. Relief efforts were
even focused on artists with the Federal Number
One program employing people in the Arts. - The New Deal was a series of economic programs
enacted in the United States between 1933 and
1945. - The programs were in response to the Great
Depression and focused on the 3 Rs Relief,
Recovery, and Reform. - That is, Relief for the unemployed and poor
Recovery of the economy to normal levels and
Reform of the financial system to prevent a
repeat depression.
33New Deal Programs (Yes, you must learn all of
them!)
34What Ended the Great Depression?
- Although The New Deal may have helped alleviate
much of the effects of the Great Depression, most
economists and historians do not credit the New
Deal with having necessarily ended it. - Most economists and historians argue that it was
World War II that was really responsible for the
change in the economy and the end of the
depression. - While America remained isolationist during the
war, the allied countries at war needed supplies
and looked to America to make them. - After Pearl Harbor was bombed on December 7,
1941, America entered the war., which meant that
by then the U.S. enlisted more than 10 million
men and women into the military. With so many
fighting abroad in the war, jobs were left for
those at home to work in the factories to make
supplies for the war effort. - The desperate need for soldiers, pilots, and
workers to make, quickly and in mass numbers,
ammunition, weaponry, and air/sea craft all
contributed to the end of the Great Depression. - During the war more than 12 million Americans
were sent into the military, and a similar number
were created in defense-related jobs. Those war
jobs (domestic and military) seemingly took care
of the 17 million unemployed in 1939.