Essay about the Great Depression and Important People
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UTF-8Great2BDepression20update.pptxHarlem Renaissance
Professor Meeks
African Americans
1919 Black WWI veterans return home (~400K)
They believed that their heroism in the war would make white society stop treating them like second class citizens
Reality
The fact that black soldiers fought in the war had no impact on the attitudes of whites
However, that same fact had an immense impact on African American’s attitudes
Bitterness
Increased determination to fight for civil rights
By 1919 the racial climate in the US was murderous
Lynching's in the South increased
Northern Black factory workers faced layoffs, as whites were returning to their jobs
Whites were convinced that blacks worked for lower wages and this hurt them economically
Race Riots Red Summer of 1919
Chicago Race Riots 1919
Whites stone a black teenager to death
Blacks march into white neighborhoods to retaliate
Whites form larger crowds and go into Black neighborhoods
Over the course of a week Chicago whites and Blacks were ate war
38 people die – 15 whites and 23 Blacks
537 injured and over 1000 left homeless
What was different about the Race Riots of 1919
Blacks fought back
The NAACP urged Black to demand protection from the federal government and to defend themselves
“If We Must Die” by Claude McKay
Like men we’ll face the murderous cowardly pack.
Pressed to the wall, dying, but fighting back
Marcus Garvey
Black Nationalism: Encouraged African Americans to reject assimilation into white society and to develop pride in their own race and culture.
UNIA
Universal Negro Improvement Association
Pushed for the creation of black businesses
Urged supporters to leave America and return to Africa and create their own society
1923 Garvey was indicted on charges of business fraud and deported to Jamaica
Harlem Renaissance
https://youtu.be/Z3ozfYC9CZE?list=PLDpALuItckjEen5QsfUvEJtlA8qFJyS-1
Great Depression and New Deal
Professor T
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Stock Market 101
The Stock Market: A system for buying and selling shares of companies
Bull Market: long period of rising stock prices, by 1929, about 3 million Americans owned stock.
On Margin: Buying stock by paying only a fraction of the stock price and borrowing the rest.
To be successful with buying on margin, stock prices had to keep rising
Optimism and Prosperity
A Bull Market
Rising Stock dividends
Increase in personal Savings
Relatively easy money policy
Over-production profits were invested in new Production
Lack of stock market regulation
Psychology of Consumption
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Do you see the potential problem here?
Once prices begin to fall, your broker could issue a margin call, demanding you to repay your loan at once. You also want to invest in companies earning profits and future sales prospects.
Stock Market Crash
Turning Point – October 21, 1929 the market took a dive
Worst Day October 24, 1929 – “Black Thursday” – the market plunged even further
Poof the thrill was gone – instant poor folks
October 25 – House of Morgan continued to keep the market stable
October 28 – another wave of sell orders
October 29 – “Black Tuesday” – the market crashed
Stocks lost $10B to $15B in value
By Nov. $30B was lost
The nations economy is in decline and will not recover for another 12 years
Why did the Market Crash
The economy of the 1920s was weak
People buying large amounts of stock on margin
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Stock Market
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Stock Market Crash 1929
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Stock Market Crash
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Panic Leads to Depression
Corporate structures benefitted from the success of the 1920s but they were not ready for the tight economy
Andrew Mellon was overconfident in the power that the market could fix itself
Companies were reinvesting profits into their companies instead of reinvesting
Decline in public consumption of goods led to lower rates of investment
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Why did the Market Crash
The economy of the 1920s was weak
Bull Market
Black Tuesday
Causes of the Depression
Lack of diversification in the American economy
Prosperity was dependent on a few industries
Misdistribution of purchasing power
Led to a weakness in consumer demand
Credit structure of the economy
Farmers were deeply in debt
Crop prices were low
Small banks were in trouble, so were large banks
America’s position in international trade
European demand for good declined in the late 1920s
Debt Structure
After WWI European nations owed a lot of money to American Banks, much of which could not be repaid
America government refused to reduce the debt
We instead make large loans to European countries so they can use that money to pay off the debt
Social Problems
High unemployment
Personal suffering from losing job
Breakdown of the family
Soaring High school dropout rates (2-4M)
Homelessness
Organized protest
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Unemployment
Northeast and Midwest hardest hit
Cleveland 1932 unemployment rate 50%
Akron 60%
Toledo 80%
Reality
Bread lines
Hoboes hopping frieght trains
College grads working at gas stations
High rates of suicide
Former businessmen selling pencils
“Okies” – escaping the dust bowl
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Unemployment Rate
In early 1933 an estimated 13 million people were unemployed
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African Americans
More African Americans leave the South about 400,000 because of high unemployment rates
In New York black unemployment was about 50%
Roughly two million African Americans were on some form of relief by 1932
Scottsboro Nine
March 1931 – nine black teenagers are removed from a freight train in northern Alabama and arrested for vagrancy and disorder
Two white women later accuse them of rape, despite evidence proving the women had not been raped
All white jury in Alabama convicted the nine and sentenced eight to death
The Supreme Court overturn the conviction in 1932 and new trials begin and the International Labor Defense (group associated with the Communist) provide legal aid
Last defendant leaves prison in 1950
Hispanic and Asian Americans
Whites in the Southwest took jobs from Hispanics and this leads to an increase in the unemployment rate of Hispanics.
Mechanisms of Escape
The radio – programs like Amos n’ Andy, Superman, Dick Tracy, and The Lone Ranger. Also soap operas become popular
The Movies – The Grapes of Wrath (1940) and Public Enemy (1931)
Comic Books – 1935 Malcolm Wheeler – first comic mazagine
Hoover’s Depression Efforts
Hoover asked businessmen to maintain wages and avoid layoffs, to keep the purchasing power strong
Hoover wanted Congress to increase its budget to $423 million for federal works programs but people need more than this
Reconstruction Finance Corporation – offered emergency loans to banks, farm mortgage associations, building and loan societies, and other like businesses. This however, still does not deal with the real issues people faced.
The Federal Emergency Relief Act
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“Sharecropper” by Jerry Bywaters, 1937
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Dust Bowl 1930-1940
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Dust Drift
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Surviving the Dust Bowl
Dorthea Lange
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“Route 66”
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July 5, 1932 Bonus March
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“Tent City”
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“Hoovervilles”
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Election of 1932
Americans blame the 3 B’s
Bankers
Brokers
Businessmen
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Roosevelt’s challenges
Revive the economy
Relieve widespread human misery
Rescue the farm sector
Rescue desperate farm families
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Fireside Chat 10/23/1933
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Eleanor Roosevelt
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The New Deal Alphabet Soup
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Recovery
EBA – Emergency Bank Act 1933
AAA – Agricultural Adjustment Act 1933
TVA – Tennessee Valley Authority 1933
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Relief
WPA – Works Progress Administration 1935
CCC – Civilian Conservation Corps 1933
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Challenges to the New Deal
Francis Townsend – Old Age Pension Plan
Father Charles E. Coughlin
Remonetization of silver
Issuing greenback
Nationalization of the banking system
Huey Long – Share our wealth
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Reform
SEC – Securities Exchange Commission 1934
FDIC – Federal Deposit Insurance Corporation 1933
Created by the banking Act 1933
SSA – Social Security Act 1935
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FDIC
Provides deposit insurance to banks
1933 - $2500
2008 - $250K
Insures deposit accounts (checking, savings, time deposits (CDs), negotiable items
Does not insure – stocks, bonds, mutual funds, investments backed by the federal government, safe deposit box contents, etc.
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WPA
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