PROSPERITY, DEPRESSION, & THE NEW DEAL

PROSPERITY, DEPRESSION, & THE NEW DEAL American History II - Unit 4

LIFE DURING THE GREAT DEPRESSION Unit 4.4 Mr. Duncan

Depression in the Cities • Evicted from housing → increased homelessness • Shantytowns – little towns consisting of shacks • Soup kitchens and bread lines– social organizations offered free or low cost food • Early 1930s, no system of direct relief – cash payments or food provided by the gov’t to the poor

Depression in the Cities • Minorities were hit especially hard during the depression • Higher unemployment rates, lower wages • Racial violence from unemployed whites competing for the same jobs • By 1933 – 24 known black lynching deaths Demand for Latino (mostly Mexicans and Mexican-American) exportation

Depression in Rural Areas • Falling crop prices and rising debt → many farmers lost their farms • 1929-1933: 400,000 farms foreclosed on (mortgage holder takes back property if an occupant has not made payments) • Many farmers turned to tenant farming

Dust Bowl

Effects on the American Family • Fear that hard times would lead to immoral actions and the destruction families → emphasis of maintaining the family unit • Ex: board games for entertainment – Monopoly (1933); radio • Relocation of families meant leaving friends and communities behind… family was all they had.

Women and the Depression • Canned food, sewed clothes, managed budget, childcare • Faced employment discrimination from males competing for jobs • Head of household if husband left family

Women and the Depression “I’ve lived in cities for many months, broke, without help, too timid to get in bread lines. I’ve known many women to live like this until they simply faint in the street… A woman will shut herself up in a room until it is taken away from her, and eat a cracker a day and be as quiet as a mouse… She will go for weeks verging on starvation… going through the streets ashamed, sitting in the libraries, parks, going for days without speaking to a living soul, shut up in the terror of her own misery.” – Meridel Le Seur

Children and the Depression • Poor diets, lack of nutrition, inadequate/no healthcare (rickets were common) • Falling tax revenues → shorten school year or completely close schools → children looked for employment • “Wild Boys” – teenage boys left home in search of work, adventure, and an escape from poverty; hopped trains; faced danger, turned to criminal activity “If I leave my mother, it will mean one less mouth to feed.” – Eugene Williams, 13

Social and Psychological Effects of the Depression • 1928-1932: suicide rate rose 30%, 3x as many people entered mental hospitals • Lost dreams… college, marriage, having children New habits… increased kindness towards community members and strangers, saving practices, thriftiness

Hoover’s Philosophy • Gov’t should play a limited role in solving economic problems • Encourage and facilitate cooperation between competing interests (ex: business vs labor), not control it. • Opposed social welfare • American belief in “individualism” (people should succeed through their own efforts) • Handouts would weaken people’s self respect and “moral fiber” • Hoover’s response to the oppressing depression shocked and frustrated many struggling Americans.

Trickle Down Economics • Economic theory that believes economic benefits provided by government to businesses and the wealthy will benefit poorer members of society by improving the economy as a whole • Ex: if a business had adequate capital, it would expand, hire more workers, and thus benefit the individual. • During the depression, many argued that the poor still needed direct help, more so than corporations and businesses.

Boulder Dam • As Sec. of Commerce, Hoover proposed the construction of a dam on the Colorado River. • To minimize federal intervention, the profits from the sale of the electric power that the dam would generate would finance the construction. • Authorized in the fall of 1929, called BoulderDam (later Hoover Dam) • Electricity, flood control, water supply to California’s agriculture

Depression Takes Hold • Depression resulted in decreased popularity of Hoover and Republicans → Democrats won control of the HoR and gained more seats in the Senate in 1930 • “Hoovervilles” – shantytowns named after Hoover’s failure to address the Depression “Hoover blankets” – newspapers used as blankets by homeless“Hoover flags” - pockets turned inside-out

Hoover Takes Action • Preferred limited gov’t, but recognized the need for government intervention • Federal Home Loan Bank Act – 1932 • lowered mortgage rates for homeowners • allowed farmers to refinance their farm loans and avoid foreclosure • Reconstruction Finance Corporation(RFC) – 1932 • authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses → businesses continued to fail • Too little too late…

The Bonus Army • Spring of 1932 • between 10,000-20,000 WWI vets and their families arrived in Washington DC • supported the pending Patman Bill - WWI vets would be compensated “bonus” pay for their wartime service - $500 immediately, life insurance later • called themselves the Bonus Army • Hoover opposed the Patman Bill - voted down by Senate • Hoover asked Bonus Marchers to leave, 2,000 stayed hoping to meet with the president.

Disbanding the Bonus Army • Hoover nervous that the remaining Bonus Marchers would become violent → 1,000 soldiers under the Command of General Douglas MacArthur and Major Dwight D. Eisenhower disbanded the remaining marchers • Gassed more than 1,000 people • 11-month old baby died, 8 year old boy blinded • 2 people shot, many injured • Americans stunned and outraged → dramatically hurt Hoover’s image… Election of 1932 just around the corner…

RAFT • Suppose the year is 1932, write a letter to a far away relative or friend in which you describe your life since the stock market crash in October 1929 and the continuing Dust Bowl in the mid-west. • Discuss hardships and obstacles, as well as how you have adapted/changed and what you have learned. • Mention at least 2 pieces of historical evidence from what we have learned the past 2 days (look at today’s and yesterday’s notes) • 10 sentences minimum (about 2 paragraphs) • Take the perspective of one of the following: • a farmer • an unemployed urban dweller • a “wild boy” • a woman • a racial minority • a roaming hobo

PROSPERITY, DEPRESSION, & THE NEW DEAL