USA in the 1930's

Notes on America in the 1930's

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  • Created by: Rhian
  • Created on: 17-03-13 12:20

Effects of the Great Depression

  • Wall Street Crash 1929 which hit USA first and then effected the rest of the world
  • Cycle of Prosperity turned into the Spiral of Depression
  • By 1932 the entire banking system was close to collapsing
  • People have been suffering the depression for two years, unemployment had risen to over 12 million, widespread poverty and homelessness
  • President Hoover believed that the government should not interfere
  • There was no Social Security (Welfare) or unemployment pay, some people were starving to death on the streets
  • The unemployed relied on charity handouts,soup kitchens and orginsations like the Salvation Army
  • Hoovervilles were camps set up by the unemployed and homeless families
  • Farm prices fell by 70% and thousands of farmers were made homeless, the machinery meant fewer jobs, intnsive farming and high winds/droughts turned the land into dustbowls
  • 1931 veterans wanted their wartime bonuses, however Hoover used the army on them, they were given the name Bonus Army
  • By the election in 1932 people lost faith in Hoover, despite his claims that recovery was just around the corner
  • F.D.Roosevelt won the vote and offered the voters a New Deal
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  • FDR believed that the governemnt should take action
  • Use its powers to reduce unemployment and promote economic recovery by kick starting the Cycle of Prosperity
  • Relief, recovery and reform were iportant
  • In the short term, the government would tax and borrow to pay for public works and relief for the poor
  • First step restore confidence in the banks
  • First hundred days, Roosevelts New Deal quickly took shape
  • The New Deal was built up by Alphabet Agencies which dealt with perticular problems
  • Once a week he would go on the radio and explain what he had done to end the depression. They came to know as 'Fire Side Chats'. The first chat explained how the Emergency Banking Act would rstore the sysyem
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Alphabet Agencies

  • TVA - Tennessee Valley Authority- dams, canals and power stations, covered seven states and helped an entire region to recover
  • CCC - Civilian Conservation Corps- temporary relief/jobs for unmarried men between 16-25- tree planting, flood prevention, road building
  • HOLC - Home Owners Loan Corporation- brought mortgages from banks, offered homeowners long term payments, stopped millions of people losing their homes
  • PWA - Public Works Administaration- built schools, hospitals, roads for skilled workers
  • CWA - Civil Works Administration- 1933-4 jobs for over 4 million men, roads, playgrounds, sports fields- later became WPA
  • NRA - National Recovery Administration- Blue Eagle Badge- minimum wage, health and safety
  • AAA - Agricultural Adjustment Administration- paying farmers to destroy 30% of their crops and grow less
  • WPA - Works Progress Administration- created 3 million jobs building schools, roads, post office- by 1941 it had spent $11 billion
  • Wagner Act gave new rights to employees and labour unions
  • SSA- Socail Security- old age pensions, unemployed benefit
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How successful was the New Deal

  • The Republicans thought that it was too costly and a waste of tax payers money
  • Huey Long thought they did not do enough and wanted higher taxes on the rich and a massive redistribution of wealth
  • The EBA restored confidence
  • HOLC helped people who were homeless
  • The AAA ended overproduction but the Supreme Court made it illegal. In the Second New Deal it became Soil Conservation Act
  • The TVA stopped flooding in Winter and droughts in Summer. It created cheap hydroelectricity
  • During the Second New Deal a national welfare system was set up
  • Industry was helped through NRA
  • It helped the USA become a Superpower in the WW2
  • The war through conscription greatly reduced unemployment and supplied massive orders from their allies
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