THE 1920s and Early 1930s: PROSPERITY AND DEPRESSION

EUGENIA LANGANMATER ACADEMY CHARTER HIGH SCHOOLHIALEAH GARDENS, FLORIDA

ESSENTIAL QUESTIONS

TODAY:

WHAT CAUSED THE TENSION BETWEEN NEW AND CHANGING ATTITUDES, ON THE ONE HAND, AND TRADITIONAL VALUES AND NOSTALGIA, ON THE OTHER HAND, IN THE 1920s?

WHICH GROUPS WERE PROGRESSIVE/RADICAL AND WHICH WERE CONSERVATIVE, AND WHY?

WHAT CAUSED THE GREAT DEPRESSION? WHAT STOPPED IT?

BACKGROUND: POST-WAR TENSIONS

WAR-TIME ECONOMY:

WAR PRODUCTION + MOBILIZATION OF NEARLY 5 MILLION MEN = FLU DEATHS HIGH EMPLOYMENT, HIGH WAGES

NATIONAL WAR LABOR BOARD GAVE UNIONS COLLECTIVE BARGAINING RIGHTS (TO AVOID STRIKE) INCREASE IN UNION MEMBERSHIP (E.G., MORE THAN 3 MILLION MEMBERS OF AF OF L)

SOME INFLATION (LOTS OF MONEY CHASING SCARE GOODS – BUT WAGES ROSE WITH INFLATION

ECONOMY 1919 – 21: RECESSION THEN DEPRESSION -- CAUSES

DEMOBILIZATION: OVER 4 MILLION SOLDIERS RETURNED 1919-20, WITH NO JOBS AND NOTHING BUT $60 AND A TRAIN TICKET HOME

WAR PRODUCTION ENDED LAYOFFS + SOME FACTORIES SHUT DOWN PERMANENTLY

TOO MANY WORKERS, TOO FEW JOBS DECLINING WAGES AND ABOUT 5.5% UNEMPLOYMENT 1918-19

CONTINUED INFLATION: COST OF LIVING DOUBLED 1918 – 1920

WELCOME BACK TO LOW WAGES AND HIGH C.O.L.!

FARM PRICES = DEFLATION/ DEPRESSION EVEN EARLIER THAN REST OF ECONOMY

PLUS EVEN MORE ACRES UNDER CULTIVATION THE USUAL (FARM PRICES DROP, FORECLOSURES)

STOCK MARKET: DOW-JONES AVERAGE 1918-23"ROARING 20s" DIDN’T BEGIN UNTIL 1922!

POST-WAR STRIKES: IN 1919 OVER 4 MILLION U.S. WORKERS (MOSTLY AF OF L) WENT ON STRIKE – MORE THAN EVER BEFORE OR SINCE

WHY?

EMPLOYERS WANTED TO CUT HIGH WAGES AND BREAK POWER UNIONS GAINED DURING WWI

WHAT ARE SOME EXAMPLES OF MAJOR STRIKES IN 1919?

BOSTON POLICE STRIKE, STEEL STRIKE, COAL STRIKE

STRIKES UNSUCCESSFUL AND OPPOSED BY PUBLIC

BOSTON POLICE STRIKE, SEPTEMBER 1919

ORGANIZATIONAL STRIKE – POLICE WANTED AF OF L UNION

LOW WAGES, LONG WORK HOURS, ETC.

≈ 1100 POLICEMEN STRUCK (72% OF FORCE) SOME MINOR VANDALISM AND LOOTING

MASSACHUSETTS GOVERNOR CALVIN COOLIDGE CALLED OUT 5,000 TROOPS IN MASSACHUSETTS MILITIA AGAINST STRIKERS (5 TO 1!)

STRIKING OFFICERS AND MANY OTHER COPS REPLACED

MASSACHUSETTS MILITIA IN SCOLLAY SQUARE, BOSTON. DURING STRIKE 9 POLICEMEN WERE KILLED

CALVIN COOLIDGE: "THERE IS NO RIGHT TO STRIKE AGAINST THE PUBLIC SAFETY, ANYWHERE, ANYTIME."

A HERO: REPUBLICAN VP NOMINEE, 1920

TYPICAL NEWSPAPER COVERAGE OF THE POLICE STRIKE:

"BOLSHEVISM IN THE UNITED STATES IS NO LONGER A SPECTER. BOSTON IN CHAOS REVEALS ITS SINISTER SUBSTANCE." PHILADELPHIA LEDGER

"HE GIVES AID & COMFORT TO THE ENEMIES OF SOCIETY" – CHICAGO TRIBUNE

"STRIKING BACK" – NEW YORK EVENING WORLD

1919 STEEL STRIKE, SEPTEMBER 1919

ORGANIZATIONAL STRIKE – AMALGAMATED ASSOCIATION OF IRON, STEEL AND TIN WORKERS (AF OF L) WANTED STEEL INDUSTRY TO RECOGNIZE AND BARGAIN WITH UNION

≈ 350,000 STEELWORKERS STRUCK, SHUT DOWN STEEL MILLS IN NEW YORK, PENNSYLVANIA, WEST VIRGINIA, OHIO, ILLINOIS, INDIANA AND COLORADO

WILLIAM Z. FOSTER, L, AF OF L (MARXIST, IWW) LED STRIKE

U.S. STEEL CHAIRMAN ELBERT GARY REFUSED TO NEGOTIATE

LED STEEL INDUSTRY IN HIRING 30- 40,000 Black AND MEXICAN STRIKE-BREAKERS ("SCABS")

AS USUAL, PINKERTONS, LOCAL AND STATE POLICE, AND IN SOME PLACES THE ARMY AND NATIONAL GUARD ATTACKED STRIKERS

RESULT = COMPLETE DEFEAT FOR UNION.

ELBERT GARY – A HERO

PUBLIC OPINION – AGAINST STRIKE, EQUATED UNIONS WITH SOCIALISM AND COMMUNISM

UNITED MINE WORKERS (UMW) – COAL STRIKE, NOVEMBER 1919

LED BY UMW PRESIDENT JOHN L. LEWIS, L (NOT A MARXIST)

≈ 400,000 COAL MINERS STRUCK OVER WAGES

RED-BAITING: MINEOWNERS CALLED UNION "BOLSHEVIKS," ETC.

ATTORNEY GENERAL A. MITCHELL PALMER GOT INJUNCTION AGAINST STRIKE UNDER WARTIME FOOD AND FUEL ACT – BUT WAR WAS OVER! FACING CRIMINAL CHARGES AND ACCUSATIONS

OF COMMUNISM, LEWIS CALLED OFF THE STRIKE

"KEEPING WARM" – LOS ANGELES TIMES

"IF CAPITAL AND LABOR DON'T PULL TOGETHER" – CHICAGO TRIBUNE

RACE RIOTS, SUMMER 1919

BACKGROUND: "GREAT MIGRATION" OF BLACKS TO NORTHERN CITIES (≈ 2 MILLION 1910 – 1930, ≈ 500,000 BY 1919)

WHY: INDUSTRIAL AND OTHER JOBS IN NORTH (ESPECIALLY DURING WWI), LESS

1915: BOLL WEEVIL WIPED OUT COTTON CROP, BANKRUPT SOUTHERN PLANTERS EJECTED SOUTHERN SHARECROPPERS

ALSO, RETURNING BLACK WARVETS MORE ASSERTIVE ABOUTRIGHTS

AT LEAST 30 RACE RIOTS OF 1919 ( = ATTACKS BY WHITES ON BLACKS, ESPECIALLY RETURNING VETS

MOST RIOTS IN NORTHERN CITIES SUCH AS CHICAGO, PHILADELPHIA, SYRACUSE N.Y, AND WASHINGTON D.C.

SOME BLACK RESISTANCE (FIGHTING BACK)

MEDIA AND PUBLIC BLAMED RIOTS ON BLACKS AND BOLSHEVIK AGITATORS

ABOVE, WHITE GANG LOOKINGFOR BLACKS DURINGCHICAGO RACE RIOT OF 1919

LEFT: HEADLINE IN ARKANSAS NEWSPAPER

HEADLINE IN NEW YORK TIMES: "REDS TRY TO STIR NEGROES TOREVOLT"

RED SCARE, 1919

A. MITCHELL PALMERATTORNEY GENERAL 1919-21

LED BY A. MITCHELL PALMER, U.S. GOVERNMENT MANAGED TO TRANSFER WARTIME PUBLIC XENOPHOBIA AGAINST GERMANS TO PEACETIME XENOPHOBIA AGAINST "REDS" – COMMUNISTS, SOCIALISTS, ANARCHISTS, WOBBLIES

NATIVISM LINK: "NEW IMMIGRANTS" EQUATED WITH "FOREIGN AGITATORS"

CAUSES OF RED SCARE:

1919: COMMUNIST THIRD INTERNATIONAL DECLARED GOAL OF WORLDWIDE COMMUNISM

MITCHELL COULD CLAIM COMMUNIST PLOT AGAINST U.S. "FREEDOM"

APRIL AND JUNE 1919 – LETTER BOMBS ("WE WILL DESTROY TO RID THE WORLD OF YOUR TYRANNICAL INSTITUTIONS" ON PINK PAPER) SENT TO PALMER, SENATORS, FBI INVESTIGATORS

NOBODY KILLED BUT PUBLIC PANIC

"WHAT A YEAR HAS "PUT THEM OUT AND KEEPBROUGHT FORTH" – NEW THEM OUT" – PHILADELPHIAYORK WORLD INQUIRER

THE NEW NATIVISM: IMMIGRANTS ARE A PACK OF ANARCHISTS AND COMMUNISTS

PALMER RAIDS, 1919- 20

STRATEGY: ROUND UP AND DEPORT FOREIGN RADICALS

IMMIGRATION ACT OF 1919 AUTHORIZED DEPORTATION OF ALIEN ANARCHISTS AND ANY ALIENS ADVOCATING OVERTHROW OF U.S. GOVERNMENT

GOVERNMENT USED WARRANTLESS WIRETAPS (VIOLATED 4TH AMENDMENT)

JANUARY 20, 1920: FEDERAL AND LOCAL RAIDED OFFICES AND HOMES NATIONWIDE, ARREST OVER 6,000 PEOPLE (INCLUDING SOME U.S. CITIZENS)

PEOPLE ARRESTED WERE DENIED ACCESS TO LAWYERS (VIOLATED 6TH AMENDMENT)

POLICE ARRESTING SUSPECTED "REDS" IN CHICAGO

BUT NOT EVERYONE ARRESTED WAS AN ALIEN!

"RADICALS" AWAITING DEPORTATION HEARINGS AT ELLIS ISLAND

IN THE END ONLY ABOUT 565 ALIENS WERE DEPORTED – MOSTLY NOT FOR ANY ACTS, ONLY FOR MEMBERSHIP IN RADICAL ORGANIZATION

DECEMBER, 1920: EMMA GOLDMAN WAS ON THE BUFORD

SECRETARY OF LABOR LEWIS FREEDLAND POST OPPOSED THE RAIDS AND THWARTED DEPORTATIONS

INITIALLY PUBLIC SIDED WITH PALMER, BUT AS 1920 WENT ON WITHOUT EITHER STRIKES OR A REVOLUTION, MEDIA SUPPORTED POST

DOES THE CARTOONIST SUPPORT THE PALMER RAIDS?

SACCO AND VANZETTI: VICTIMS OF THE RED SCARE?

ARRESTED 1920 FOR ARMED ROBBERY AND MURDER – EXECUTED 1927

PLENTY OF EVIDENCE THAT THEY WERE ANARCHISTS, NOT MUCH THAT THEY DID THE CRIME

WERE THEY GUILTY? (YOU SHOULD HAVE AN OPINION BASED ON ASSIGNED READING)

SUPREME COURT DECISIONS TO KNOW

SCHENCK V. UNITED STATES, 1919

1. OPINION BY OLIVER WENDELL HOLMES, JR.

2. FACTS: CHARLES SCHENCK, SECRETARY OF SOCIALIST PARTY OF AMERICA, WAS CONVICTED OF VIOLATING THE ESPIONAGE ACT FOR DISTRIBUTING A HANDBILL COMPARING THE DRAFT TO SLAVERY

3. ISSUE: DID THE CONVICTION VIOLATE SCHENCK'S 1ST-AMENDMENT RIGHT TO FREEDOM OF SPEECH?

4. HOLDING: NO. DURING WARTIME, FREEDOM OF SPEECH IS LESS BROAD THAN DURING PEACETIME

AND AT ANYTIME: FREEDOM OF SPEECH NEVER INCLUDES "SHOUTING FIRE IN A CROWDED THEATER AND CAUSING A PANIC."

IF SPEECH PRESENTS "A CLEAR AND PRESENT DANGER" THAT SOMETHING THE GOVERNMENT HAS THE RIGHT TO PREVENT WILL HAPPEN, THE SPEECH HAS NO 1ST – AMENDMENT PROTECTION

5. LEGAL AND HISTORICAL SIGNIFICANCE – A VERY BROAD EXCEPTION TO FREEDOM OF SPEECH!

ABRAMS V. UNITED STATES, 1919

1. OPINION BY JUSTICE JOHN CLARKE (A NONENTITY – NOT IMPORTANT)

2. FACTS: ABRAMS WAS CONVICTED UNDER SECTION OF ESPIONAGE ACT BANNING INTERFERENCE WITH WAR PRODUCTION. HE DISTRIBUTED A LEAFLET CRITICIZING 1919 DEPLOYMENT OF U.S. TROOPS TO RUSSIA TO FIGHT SOVIETS, AND URGING GENERAL STRIKE OF MUNITION WORKERS TO STOP PRODUCING WEAPONS FOR THIS

(SO NOT AGAINST WWI OR ANY DECLARED WAR OF U.S.!)

3. ISSUE: WAS THE HANDBILL PROTECTED 1ST – AMENDMENT SPEECH?

4. NOT PROTECTED SPEECH UNDER THE "CLEAR AND PRESENT DANGER" TEST. EVEN THOUGH NO STRIKE OR DAMAGE TO WAR EFFORT WAS IMMINENT, THE HANDBILL HAD A "TENDENCY" TO CAUSE THOSE THINGS.

5. LEGAL AND HISTORICAL SIGNIFICANCE: TURNED "CLEAR AND PRESENT DANGER" TEST INTO "BAD TENDENCY" TEST – EVEN EASIER FOR GOVERNMENT TO RESTRICT SPEECH

HOLMES DISSENT: "CLEAR AND PRESENT DANGER" MEANS SOME UNLAWFUL ACTION IS IMMINENT

TWO ANTITRUST DECISIONS TO KNOW:

UNITED MINE WORKERS V. CORONADO COAL CO., 1922 – OPINION BY CHIEF JUSTICE TAFT

JUST KNOW WHAT IT HELD: LABOR UNIONS ARE "ASSOCIATIONS" COVERED BY THE SHERMAN ANTITRUST ACT – CAN BE SUED UNDER ACT FOR TREBLE DAMAGES FOR STRIKES, MULTI-UNION AGREEMENTS TO SEEK SAME WAGES, ETC.

FEDERAL BASEBALL CLUB V. NATIONAL BASEBALL LEAGUE, 1922 – OPINION BY OLIVER WENDELL HOLMES, JR.

PROFESSIONAL BASEBALL LEAGUES ARE NOT COVERED BY THE SHERMAN ACT, BECAUSE BASEBALL IS A GAME, NOT A BUSINESS (EVEN THOUGH IT MAKES $)

ELECTION OF 1920: REPUBLICAN TRIUMPH ("IT'S THE ECONOMY, STUPID," PLUS THE RED SCARE AND OPPOSITION TO WILSON – END OF PROGRESSIVISM FOR A WHILE

WARREN G. HARDING AND CALVIN COOLIDGE

JAMES COX AND FRANKLIN D. ROOSEVELT

ALSO RAN: EUGENE V. DEBS, SOCIALIST PARTY: FROM PRISON -- 913,000 VOTES (REFERENCE TO HARDING'S "FRONT PORCH" CAMPAIGN

WARREN G. HARDING – RANKED AS ONE OF THE WORST PRESIDENTS. ADVOCATED "RETURN TO NORMALCY"

SCANDALS, ESPECIALLY TEAPOT DOME BRIBERY SCANDAL

1921: HARDING TRANSFERRED NAVY OIL RESERVES AT TEAPOT DOME (AND OTHER WESTERN LOCATIONS) TO DEPARTMENT OF INTERIOR

1922: SECRETARY OF INTERIOR ALBERT B. FALL LEASED RESERVES TO OIL COMPANIES – FOR PERSONAL LOANS = $404,000

FALL WAS CONVICTED OF BRIBERY, GOT 1 YEAR IN PRISON – FIRST CABINETOFFICER TO GO TO PRISON FOR CORRUPTION

DEPLOYED MILITARY AGAINST STRIKES, , INCLUDING B-1 BOMBERS, AGAINST STRIKING COAL MINERS IN MATEWAN, W. VA. (50-100 MINERS KILLED, HUNDREDS CONVICTED OF CRIMES LATER – THE USUAL!)

SUPPORTED AND SIGNED FORDNEY-MC CUMBER TARIFF, HIGHEST IN HISTORY – SUPPOSEDLY TO HELP FARMERS

FARMERS OF COURSE OPPOSED IT!

DIED IN OFFICE, 1923

COOLIDGE: YET ANOTHER VP BECAME PRESIDENT (BUT WAS ELECTED IN OWN RIGHT IN 1924)

MOST FAMOUS QUOTATION: "THE BUSINESS OF AMERICA IS BUSINESS"

BUT NO HELP FOR FARMERS!

HERBERT HOOVER (MINING ENGINEER): SECRETARY OF COMMERCE FOR HARDING AND COOLIDGE

ELECTED PRESIDENT 1928

HIS "SOUTHERN STRATEGY": OUST ALL BLACKS FROM REPUBLICAN PARTY LEADERSHIP, MAKE IT ALL-WHITE PARTY

DOMESTIC POLITICS IN A NUTSHELL, 1920 – 32 (HARDING, COOLIDGE, HOOVER)

CONSERVATIVE REPUBLICAN ASCENDANCY

HARDING, COOLIDGE, HOOVER TRILOGY

LAISSEZ-FAIRE ON MOST DOMESTIC ISSUES:

NO HELP FOR FARMERS

OPPOSED TO UNIONS – SUPPORTED NATIONAL ASSOCIATION OF MANUFACTURERS "AMERICAN PLAN:

COMPANY UNIONS "OPEN" SHOPS STATE LAWS MAKING UNIONS ILLEGAL

FAVORED EASY CREDIT TO PROMOTE BUSINESS BY PROMOTING CONSUMERISM

SUPPORTED HIGH TARIFFS

SMOOT-HAWLEY TARIFF, 1930: HIGHEST YET U.S. EXPORTS DROPPED 61% BETWEEN 1930 AND 1933

THE ROARING 20s1922 - 1929

WHILE ALL THOSE CONSERVATIVE REPUBLICANS WERE RULING THE COUNTRY, A LOT OF PEOPLE WERE PARTYING – IN VERY NON-CONSERVATIVE WAYS

PROSPERITY

1921: FEDERAL RESERVE CUT INTEREST RATES, RECOVERY BEGAN

ECONOMY BOOMED 1923 – 29:

AVERAGE ANNUAL INCOME INCREASED FROM $641 IN 1921 TO $ 847 IN 1929 (32%)

U.S. GDP GREATER THAN ALL OF EUROPE'S COMBINED

LOW INFLATION, LOW UNEMPLOYMENT (< 4%)

WHO DIDN'T PROSPER?FARMERS AND NON-UNION BLUE-COLLAR WORKERS

WHAT FUELED PROSPERITY? CONSUMERISM!

ESPECIALLY THE MODEL T! HENRY FORD'S ASSEMBLY LINE

STANDARD BLACK MODEL TO

REDUCED PRICE:

$950 - 1909$360 - 1916$290 – 1925

MOST AMERICANS COULD AFFORD A CAR – BY 1930 MOST FAMILIES HAD ONE!

INDIVIDUAL MOBILITY: A MAJOR SOCIAL CHANGE

RISE OF AUTO AGE RIPPLE SOCIOECONOMIC EFFECTS:

SOME EARLIER INDUSTRIES BOOMED OIL STEEL RUBBER GLASS

ROAD CONSTRUCTION

TOTALLY NEW BUSINESSES CREATED

GAS STATIONS AUTO MECHANICS. BODY SHOPS MOTELS ROADSIDE RESTAURANTS AND DINERS CONSTRUCTION OF SUBURBAN HOUSES

Jobs. Jobs, jobs!

RISE OF CONSUMER CREDIT:

BEFORE 1920, MOST AMERICANS THOUGHT PERSONAL BORROWING WAS WRONG EXCEPT IN EMERGENCIES

AND NOBODY WHO DIDN'T OWN LAND COULD BORROW FROM BANKS

BY 1928, 2/3 OF ALL FURNITURE, WASHING MACHINES, CARS, ETC. WERE BOUGHT ON CREDIT

WHY? ADVERTISING – PEOPLE FELT THEY NEEDED THINGS THAT DIDN'T EVEN EXIST BEFORE!

WHAT WILL HAPPEN WHEN THE LOANS COME DUE?

PEOPLE ALSO BORROWED TO BUY STOCK

"BUYING ON THE MARGIN": 10-20% DOWNPAYMENT ON STOCK, THE OTHER 80-90% BORROWED FROM BROKER

IF STOCK PRICE ROSE ENOUGH, BUYER COULD PAY BACK LOAN AND MAKE PROFIT

BUT IF STOCK PRICE FELL, BROKER ISSUED "MARGIN CALL" AND BUYER HAD TO PAY DEBT OUT OF POCKET

STOCK MARKET WENT UP AND UP IN 20s, SO PEOPLE FELT OK TO BUY ON MARGIN (IT NEVER IS!)

ANOTHER REASON FOR INCREASED PROSPERITY: MORE PEOPLE MOVING TO CITIES (HIGHER INCOMES)

SOCIAL CHANGES

"THE NEW WOMAN"

19TH AMENDMENT, 1920 – WOMEN COULD VOTE

DID IT MAKE A DIFFERENCE IN ELECTIONS?

HEMLINES WENT UP, DID MORALS GO DOWN?

MORE WOMEN WORKED OUTSIDE HOME, MORE WENT TO COLLEGE

OUT WITH THE OLD, IN WITH THE NEW!

"THE FLAPPER" – FREE, FUN-LOVING, SEXUAL, SMOKING, DRINKING, DANCED THE CHARLESTON . . .

LIBERATION, OR A NEW FORM OF OPPRESSION?

MISS AMERICA PAGEANT, 1926

WOMEN ENCOURAGED TO STRUT AROUND HALF-NAKED FOR ENJOYMENT OF MEN

"THE STENO POOL": OFFICE CLERICAL WORK BECAME FEMINIZED

1920S STYLES: FOR THE FIRST TIME, MOST PEOPLE WORE READY-MADE, NOT HOME-MADE, CLOTHES – AND THEY WERE MODERN CLOTHES

RISE OF MASS HOMOGENIZED CULTURE, DUE TO MOBILITY, RADIO AND FILM

FIRST FULL-LENGTH MOTION PICTURE: BIRTH OF A NATION, 1915: RACIST (GLORIFIED KKK)

FIRST "TALKIE" – THE JAZZ SINGER (1920) – ALSO RACIST (YOU SAW A CLIP FROM IT EARLIER!)

1920S – A NEW KIND OF CELEBRITY– ATHLETES, PILOTS

BABE RUTH &TY COBB

JACK DEMPSEY

CHARLES LINDBERGH THE SPIRIT OF ST. LOUIS

MOVIE STARS: CHARLIE CHAPLIN, MARK PICKFORD ("AMERICA'S SWEETHEART"), RUDOLPH VALENTINO

AND THE CELEBRITY FAMOUS FOR BEING FAMOUS

CLARA BOW: THE "IT" GIRL – MINOR ACTRESS CELEBRATED FOR EXEMPLIFYING THE FLAPPER

COMPARE THE KARDASHIANS

JAZZ: THE 1920S IS THE "JAZZ AGE"

LOUIS ARMSTRONG, "SATCHMO": "WEST END BLUES," ONE OF THE EARLIEST JAZZ RECORDS (RECORDS THANKS TO THOMAS EDISON)

YOUNG PEOPLE FLOCKED TO BARS AND NIGHTCLUBS TO HEAR JAZZ, SMOKE, DRINK.

DRINK? HUH? WHAT ABOUT PROHIBITION (18TH AMDT?)?

PROHIBITION MAKE DRINKING GLAMOROUS!

“WHEN PROHIBITION WAS INTRODUCED, I HOPED THAT IT WOULD BE WIDELY SUPPORTED BY PUBLIC OPINION AND THE DAY WOULD SOON COME WHEN THE EVIL EFFECTS OF ALCOHOL WOULD BE RECOGNIZED. I HAVE SLOWLY AND RELUCTANTLY COME TO BELIEVE THAT THIS HAS NOT BEEN THE RESULT. INSTEAD, DRINKING HAS GENERALLY INCREASED; THE SPEAKEASY HAS REPLACED THE SALOON; A VAST ARMY OF LAWBREAKERS HAS APPEARED; MANY OF OUR BEST CITIZENS HAVE OPENLY IGNORED PROHIBITION; RESPECT FOR THE LAW HAS BEEN GREATLY LESSENED; AND CRIME HAS INCREASED TO A LEVEL NEVER SEEN BEFORE.” JOHN D. ROCKEFELLER, JR. – AND HE WAS ABSOLUTELY RIGHT!

PROHIBITION LED TO MORE ORGANIZED CRIME IN THE U.S.

LEADING PROHITION-ERA GANGSTERS – AL CAPONE AND BUGS MORAN – BOOTLEGGERS

WHEN GOVERNMENTS BAN SOMETHING PEOPLE WILL BUY NO MATTER WHAT (LIKE BOOZE AND DRUGS) IT CREATES BLACK MARKETS FOR THOSE THINGS

HOW MUST BLACK-MARKET BUSINESSES RESOLVE DISPUTES?

THROUGH VIOLENCE – “WAR”

THE “SAINT VALENTINE’S DAY MASSACRE,” 1929 – PART OF A WAR OVER CONTROL OF THE LIQUOR TRADE IN CHICAGO

SUPPORT FOR PROHIBITION BECAME ASSOCIATEDWITH “BACKWARD” ELEMENTS

HUMORIST WILL ROGERS REMARKED, “THE SOUTH IS DRY AND WILL VOTE DRY. THAT IS, EVERYBODY SOBER ENOUGH TO STAGGER TO THE POLLS."

THE NEW KKK: ("KOONS, KIKES AND KATH'LICS): NOT JUST ANTI-BLACK, ALSO ANTI-SEMITIC, ANTI-IMMIGRATION, ANTI-WOMEN'S SUFFRAGE

WOMEN'S KLAN – 500,000 MEMBERS NATIONWIDE

HIGH CULTURE OF THE 1920s

HARLEM RENAISSANCE (RESULT OF GREAT MIGRATION) – NOT JUST JAZZ – ALSO GREAT NOVELISTS AND POETS

LANGSTON HUGHES JAMES WELDON JOHNSON CLAUDE MCKAY ZORA NEALE HURSTON COUNTEE CULLEN

WHITE AUTHORS: "THE LOST GENERATION" (LARGELY EXPATRIATES. F. SCOTT FITZGERALD (WITH

ZELDA)

ERNEST HEMINGWAY AND GERTRUDE STEIN (BY PICASSO) – SHE COINED TERM"LOST GENERATION"

• F. SCOTT FITZGERALD– THE GREAT

GATSBY– THIS SIDE OF

PARADISE• 1920

• EARNEST HEMINGWAY– SUN ALSO RISES

(1926)– FAREWELL TO

ARMS (1929)

• THEODORE DREISER– AMERICAN

TRAGEDY (1925)

• SINCLAIR LEWIS– MAIN STREET

(1920)– BABBITT (1922)

• WILLIAM FAULKNER– SOLDIER’S PAY

(1926)– THE SOUND AND

THE FURY• 1929

• T.S. ELIOT– THE WASTE LAND

(1922)– THE HOLLOW

MEN (1925)

CULTURE CLASH: OLD V. NEW – THE SCOPES TRIAL

TENNESSEE'S BUTLER ACT BANNED TEACHING EVOLUTION

IN DAYTON, TN., HIGH-SCHOOL BIOLOGY TEACHER JOHN SCOPES WAS CHARGED WITH VIOLATING THE ACT

TRIAL BECAME A NATIONAL CAUSE-CELÈBRE: SCIENCE V. BIBLE

THE MOST FAMOUS LAWYERS IN THE COUNTRY HANDLED THE TRIAL: CLARENCE DARROW FOR SCOPES, WILLIAM JENNINGS BRYAN FOR TENNESSEE

DARROW LOST – BUT HE HUMILIATED BRYANT BY PUTTING HIM ON THE STAND AND QUESTIONING HIM ABOUT THE BIBLE (LIKE "WHERE DID CAIN'S WIFE COME FROM?)

DARROW QUOTATION: "WE HAVE THE PURPOSE OF PREVENTING BIGOTS AND IGNORAMUSES FROM CONTROLLING THE EDUCATION OF THE UNITED STATES."

SCOPES GOT $100 FINE – CONVICTION REVERSED ON APPEAL

TRIAL MARKED BEGINNING OF STILL-EXISTING DIVISION IN CHRISTIANITY BETWEEN FUNDAMENTALISTS AND PEOPLE WHO ACCEPT SCIENCE -- EXAMPLE: WHEN ASKED HOW OLD HE THINKS EARTH IS, MARCO RUBIO SAID IT'S "RELIGIOUS QUESTION."

THE GREAT DEPRESSION

DEFINITIONS:

RECESSION?

TWO CONSECUTIVE QUARTERS OF "NEGATIVE GROWTH" (DECLINE) IN GDP

DEPRESSION?

MORE THAN 10% DECLINE IN GDP

NOTE THAT THESE DEFINITIONS DO NOT TAKE ACCOUNT OF UNEMPLOYMENT, COLA, ETC.

EXAMPLE: RCA

1928 - $85

1929 - $505NO NEW INVENTIONS OR ANYTHING RCA DID LED TO THIS INCREASE

1928-1930: 40%

"PAPER PROFITS"SPECULATIVE BUBBLE: PRICES BEAR NO RELATION TO VALUE – SOMETIMES DUE TO FRAUD, LIES TO INCREASE STOCK PRICES

THE STOCK BOOM

BLACK THURSDAY, OCTOBER 29, 1929:MASSIVE SELLOFF – 12.9 MILLION SHARES TRADED (KEEP IN MIND – FOR EVERY SHARE SOLD, SOMEBODY BUYS – CHEAPER AND CHEAPER) MILLIONS OF MARGIN CALLS;

HOOVER AND MELLON CLOSED THE MARKET FRIDAY, DECLARED BUSINESS SOUND

MONDAY, N.Y. BANKERS, LED BY NYSE V.P. RICHARD WHITNEY, BOUGHT BLOCS OF STOCK FOR INFLATED PRICES TO PUMP UP MARKET – BUT A PANIC HAD BEGUN BLACK TUESDAY, NOVEMBER 3: ANOTHER 16

MILLION SHARES TRADED -- $30 BILLION LOST IN A WEEK

WHAT CAUSED THE CRASH?

THE FED DROPPED INTEREST RATES, 1921 – 28 LOTS OF $$ IN CIRCULATION

PLUS THE AVAILABILITY OF MARGIN BUYING

STOCK MARKET BOOM

MARKET FEVER OVERSPECULATION, INFLATED STOCK PRICES (BULL MARKET)

FED RAISED INTEREST RATES 1929 STOCK SELLOFF (BEAR MARKET) PRICES PLUMMET

THIS TRIGGERED TNE GREAT DEPRESSION, BUT IS ONLY ONE OF THE CAUSES OF IT

BY JUNE, 1932…TOTAL VALUE OF STOCK = 1/5 OF ’29 VALUE!BUT REMEMBER: FOR EVERYONE WHO SELLS AT A LOSS, A BUYER GETS A GREAT DEAL –"SHEARING THE SHEEP"

THE BUSINESS CYCLE: PROBABLY INEVITABLE IN MARKET ECONOMY. LAISSEZ-FAIRE ECONOMISTS AND REPUBLICANS BELIEVE IT'S ALWAYS OR MOSTLY SELF-CORRECTING

UNEMPLOYMENT (OVERSUPPLY OF WORKERS)

WAGES, CONSUMER CONFIDENCE

PURCHASING

SUPPLY OF GOODS PRODUCTIONAND EMPLOYEEES

SUPPLY AND DEMAND: EMPLOYMENT AND PRODUCTION – THE VICIOUS CYCLE

WHAT CAN STOP THIS CYCLE?EITHER A NEW INDUSTRY OR MARKET

OR MASSIVE GOVERNMENT SPENDING!

CAUSES OF GREAT DEPRESSION: WHYDID A TROUGH IN THE BUSINESS CYCLE DEPRESSION?

*UNEVEN DISTRIBUTION OF WEALTH: TOP .5% CONTROLLED 60% OF NATIONAL NET WORTH

*WORLDWIDE ECONOMIC CONDITIONS• WAR DEBTS/ REPARATIONS• HIGH U.S. TARIFFS – FORDNEY-MCCUMBER, SMOOT-

HAWLEY, 1930 TRADE WAR, REDUCTION OF EXPORTS (61% FROM SMOOT-HAWLEY ALONE) INTERNATIONAL TRADE WAR

*AGRICULTURALOVERPRODUCTION FARM DEPRESSION

*INDUSTRIAL OVERPRODUCTION, MOUNTING SURPLUSES OF DURABLE GOODS

*WEAK AND UNREGULATED BANKING SYSTEM

CAUSES OF GREAT DEPRESSION, CONT'D

*GOVERNMENT POLICIES: REPUBLICAN LAISSEZ-FAIRE (DO NOTHING , OR HELP BUSINESS AND HOPE IT TRICKLES DOWN)

*FEDERAL RESERVE: RAISED INTEREST RATES 1929 – 32 (TO COMBAT WAGE AND PRICE INFLATION): REDUCED MONEY SUPPLY BY 1/3 – MASSIVE CREDIT CRUNCH, BANKS WOULDN'T EVEN LEND TO EACH OTHER

*MASSIVE CONSUMER DEBT

*THE BUSINESS CYCLE

THE DOWNWARD SPIRAL OF DEFLATION: -

LOSS OF PAPER PROFITS LESS DEMAND FOR GOODS & SERVICES LESS PRODUCTION LESS EMPLOYMENT EVEN LESS DEMAND LESS $ IN CIRCULATION (AND FED MADE IT WORSE) CREDIT CRUNCH FEWER FACTORIES, NEW HOMES, ETC. LESS EMPLOYMENT EVEN LESS DEMAND

NOT ON DIAGRAM: PEOPLE LOST LIFE SAVINGS IN BANK FAILURES, STOCK MARKET CRASH --LESS DEMANDAND SO ON DEPRESSION

BANK FAILURES

BANK FAILURES OR RUMORED FAILURES BANK RUNS. PEOPLE FLOCKED TO BANK TO WITHDRAW $, WHEN BANK RAN OUT OF CASH IT CLOSED. PEOPLE DID NOT GET THEIR $ OUT LOST IT FOREVER!

A Bank Run

EFFECTS OF THE DEPRESSION?

ITEM 1929 1932

-GNP $104B $54B-INV. CAPITAL $ 10B $ 1B-INCOME $82M $40M-EXPORTS $5.2B $1.6B -UNEMPLOYMENT 3% 25%

ECONOMIC EFFECTS IN A NUTSHELL

-CORPORATE PROFITS FELL BY 50%

FARM PROFITS FELL BY 61%

BUSINESS FAILURES FELL BY 30%

STOCK VALUES FELL BY 83%

9000 BANKS FAILED LOSS OF $3.5B IN DEPOSITORS' $

GDP BEGAN TO IMPROVE IN 1933 DUE TO THE NEW DEAL. IT HEADED BACK DOWN WHEN CONGRESS CUT SPENDING – BUT WWII STARTED

EMPLOYMENT IS A "LAGGING INDICATOR"

WHAT WERE THE HUMAN EFFECTS OF THE GREAT DEPRESSION?

• FRED BELL• FORMER MILLIONAIRE• SELLING APPLES…

HOMELESSFAMILY

18 YEAR OLD MOTHER AND CHILD

AN UNEMPLOYMENT LINE

BREAD LINE

Soup Line

SOUP LINE

HOOVERVILLE -- SEATTLE

THE DUST BOWL . . . ON TOP OF EVERYTHING ELSE FOR FARMERS!

CAUSES:

GREAT PLAINS FARMERS DESTROYED THE SOD THAT PREVENTED SOIL EROSION, TRAPPED MOISTURE FROM SCANT RAINFALL (FOR MILLIONS OF YEARS)

DIDN'T PLANT GROUND COVERS, ROTATE CROPS OR DO ANYTHING ELSE TO PREVENT EROSION

1930S = DROUGHT YEARS

SOIL JUST BLEW AWAY

AND WHEN IT DID RAIN -- FLOODS

EFFECTS OF DUST BOWL

DROUGHT AND DEPRESSION – DOUBLE WHAMMY. MADE DEPRESSION WORSE

500,000 FAMILIES MADE HOMELESS

MAJOR MIGRATIONS MASSIVE DEMOGRAPHIC SHIFTS IN SHORT PERIOD OF TIME

2.5 MILLION PEOPLE MOVED FROM GREAT PLAINS STATES

NOT ALL FARMERS – ALSO PROFESSIONALS, MERCHANTS -- WHEN FARMERS LEFT, THERE WAS NO MORE MARKET FOR GOODS AND SERVICES

200,000 TO CALIFORNIA (ALL CALLED OKIES)

ALSO MANY MEXICAN-AMERICANS MOVED NORTH FROM LOWER DUST-BOWL STATES (MOST TO CALIFORNIA, BUT SOME TO CHICAGO AND OTHER MID-WESTERN CITIES)

N.B. – DURING 1930s ≈ 500,000 MEXICAN-AMERICANS DEPORTED TO MEXICO, INCLUDING NATIVE-BORN U.S. CITIZENS

MASSIVE INCREASE IN CALIFORNIA POPULATION

WHY DID SO MANY GO TO CALIFORNIA? IRRIGATION OF SACRAMENTO VALLEY

AGRIBUSINESS

LED TO "SOUTHERN RURAL" CULTURE IN PARTS OF CALIFORNIA (E.G. BAKERSFIELD); MEXICAN IN OTHERS (E.G. PARTS OF L.A., OXNARD)

"OKIES"

"MIGRANT MOTHER" - PHOTO BY DOROTHEA LANGE, WPA PHOTOGRAPHER

AND PEOPLE DISTRACTED THEMSELVES WITH ESCAPIST MOVIES, MUSIC, DANCING TO SWING MUSIC

SEE PP ON MY WEB SITE, "DEPRESSION DISTRACTIONS" AND RELATED MEDIA FILES

GOVERNMENT EFFORTS TO END THE DEPRESSION

HERBERT HOOVERSTANFORD-EDUCATED ENGINEE FORMERLYKNOWN AS "MR. CAN-DO"

“RUGGED INDIVIDUALISM”

1929: MOSTLY REPUBLICAN LAISSEZ-FAIRE

LOOKING AT THIS DATA, IF YOU WERE HOOVER, HOW WOULD YOU RESPOND?

THE REPUBLICAN PARTY POSITION

NO DEFICITS!

EVERY PENNY OF NEW SPENDING HAD TO BE OFFSET BY TAX INCREASES

(SAME AS TODAY EXCEPT NOW REPUBLICANS OPPOSE TAXES AND SAY NEW SPENDING MUST BE OFFSET BY SPENDING CUTS)

HOOVER DIDN'T ALWAYS AGREE, ESPECIALLY AS THE 1932 ELECTION NEARED, BUT PROPOSED NOTHING THAT HELPED.

HOOVER JOKES IN 1932

HOOVERVILLES: SHANTYTOWNS OF HOMELESS PEOPLE

HOOVER FLAGS: EMPTY PANTS POCKETS TURNED INSIDE OUT

HOOVER HOGS: ROAD KILL…MMM SOUNDS TASTY!

HOOVER BLANKET: NEWSPAPER – USED AS COVER FOR SLEEPING ON PARK BENCH

MAY 1932 – THE BONUS VETERANS MARCH AND HOOVER REACTION – DOOMED HIS CAMPAIGN

"IT'S THE ECONOMY, STUPID!" (JAMES CARVILLE) – HOOVER PROBABLY COULDN'T WIN RE-ELECTION IN 1932 ANYWAY

1924: OVER COOLIDGE'S VETO, CONGRESS PASSED "BONUS" BILL FOR WWI VETS

TYPICALLY SHABBY TREATMENT OF VETS: ONLY $20 PAID IMMEDIATELY, THE REST A 20-YEAR BOND (TOTAL FACE VALUE NEARLY $4 BILLION)

VETS COULD BORROW 22% OF THEIR BONUS IMMEDIATELY: BUT IN DEPRESSION, THEY NEEDED IT ALL

IN THE 1930s, MEN STARTED LEAVING U.S. TO WORK IN SOVIET UNION (STALIN WAS INDUSTRIALIZING, THERE WERE JOBS THERE) -- ABOUT 100,000 WOULD GO DURING THE DEPRESSION – DIDN’T MAKE GOV'T HAPPY!

JUNE 15, 1932: TO ATTEMPT TO HALT EXODUS TO SOVIET UNION, THE HOUSE PASSED THE WRIGHT-PATMAN BILL ALLOWING VETS TO GET BONUSES – BUT CHANCES IN SENATE WEREN'T GOOD

JUNE 17: THE BONUS EXPEDITIONARY ARMY BEGAN TO ARRIVE IN IN WASHINGTON AND CAMPED IN HOOVERVILL ON ANACOSTIA FLATS (S.E. D.C.) (SENATE VOTED AGAINST WRIGHT-PATMAN THAT DAY)

ABOUT43,000 PEOPLE, INCLUDING ≈ 17,000 VETS, THEIR FAMILIES AND MISCELLANEOUS SUPPORTERS

THEY CAME TO PROTEST– BUT MANY WERE HOMELESS, HAD NOWHERE ELSE TO GO

THEY BUILT A HOOVERVILLE ON THE ANACOSTIA FLATS IN S.W. D.C.

LAID OUT STREETS, PUT IN PLUMBING

BONUS ARMY MARCH ON CAPITOL, JUNE 17, 1932

JULY 18: ATTORNEY GENERAL ORDERED POLICE TO EVICT THE BONUS ARMY: CAMPERS CORNERED POLICE, POLICE SHOT AND KILLED TWO VETS

HOOVER THEN ORDERED ARMY TO EVICT THE BONUS ARMY

GENERAL DOUGLAS MC ARTHUR IN COMMAND, ASSISTED BY GENERALS GEORGE PATTON AND DWIGHT D. EISENHOWER LED THE CAVALRY ATTACK ON THE BONUS VETS

JULY 28 POLICE ATTACK ON BONUS ARMY CAMP

CAVALRY ATTACKED VETS WITH TANKS, FIXED BAYONETS AND ADAMSITE GAS (INDUCED VOMITING)

55 VETS INJURED, 135 ARRESTED, ONE VET'S WIFE SUFFERED MISCARRIAGE

ARMY THEN BURNED THE HOOVERTOWN

AFTER THE ATTACK AND BURNING THE CAMPS, VETS WERE ARRESTED, INCLUDING DISABLED VETS

HOOVERFDR

FRANKLIN DELANO ROOSEVELT, 1882-1945, PRESIDENT 1933 – 1945. HIS LEGS WERE PARALYZED FROM POLIO IN 1921, BUT THE PUBLIC NEVER KNEW IT.

HIS WIFE AND COUSIN, ELEANOR ROOSEVELT – TRANSFORMATIVE FIRST LADY. ACTIVIST. LATER MEMBER OF U.S. DELEGATION TO U.N., CHAIRED COMMITTEE THAT WROTE UNIVERSAL DECLARATION OF HUMAN RIGHTS, CHAIRED JFK'S COMMISSION ON THE STATUS OF WOMEN

WHAT WERE THE OPTIONS FOR DEALING WITH GREAT DEPRESSION?

1. LAISSEZ-FAIRE: DO NOTHING, WAIT FOR CYCLE TO CORRECT SELF

2. COMMAND ECONOMY – ABOLITION OF PRIVATE OWNERSHIP OF MEANS OF PRODUCTION -- COMMUNIST OR FASCIST

THERE WERE ABOUT 20-30,000 MEMBERS OF SOCIALIST AND COMMUNIST PARTIES (INCLUDING MANY INTELLECTUALS, ARTISTS, ACTORS, STUDENTS, ETC.)

ALSO MANY "FELLOW TRAVELERS," AMONG INTELLECTUALS, ARTISTS, ETC.

FASCISM IN U.S.:

FATHER CHARLES E. COUGHLIN

OVER 30 MILLION TUNED INTO HIS ANTI-SEMITIC RADIO SHOW SUPPORTING FASCISM (NATIONALIZATION OF INDUSTRY, RAILROADS, ETC. - PRAISE FOR MUSSOLINI AND HITLER)

3. POPULISM -- "SHARE THE WEALTH": HUEY LONG "THE KINGFISH", POPULIST GOVERNOR OF LOUISIANA, 1929- 32, U.S. SENATOR 1933-35: TAX CORPORATIONS, USE PROCEEDS FOR PUBLIC WORKS THAT WILL EMPLOY PEOPLE, SCHOOLS, AND PENSIONS

ROBERT PENN WARREN'S GREAT NOVEL, ALL THE KING'S MEN IS ABOUT LONG – MUST-READ!

JOHN MAYNARD KEYNES (BRITISH), “THE FATHER OF MODERN MACROECONOMICS”

YOU’LL LEARN ALL ABOUT HIS THEORIES IN AP MACRO

BUT FOR NOW: HE POSITED:

BUSINESS CYCLE DOES NOT AUTOMATICALLY CORRECT SELF.

IN TIMES OF HIGH UNEMPLOYMENT, GOVERNMENT SHOULD SPEND TO STIMULATE ECONOMY AND CREATE JOBS – EVEN IF IT REQUIRED DEFICIT SPENDING

THE NEW DEAL RELIED ON DEFICIT SPENDING RATHER THAN TAXATION

THE OPTIONS FOR ENDING DEPRESSION = 4 "Rs"

1. RELIEF2. RECOVERY 3. REFORM

4. REVOLUTION SOME OR ALL OF THE FIRST 3 Rs ARE NECESSARY TO PREVENT THE 4TH

THE NEW DEAL USED ALL OF THE FIRST THREE – THE GOAL WAS TO PUT EVERYONE WHO COULD WORK TO WORK, GIVE RELIEF TO THOSE WHO COULD NOT WORK, AND ENACT REFORMS TO PREVENT ANOTHER DEPRESSION

FIRST NEW DEAL AND SECOND NEW DEAL, AND "THE SWITCH IN TIME THAT SAVED NINE"

IN A SERIES OF DECISIONS IN 1933 & 1934. SUPREME COURT HELD THAT KEY ASPECTS OF FIRST NEW DEAL WERE UNCONSTITUTIONAL UNDER DOCTRINE OF "SUBSTANTIVE DUE PROCESS" ALL IN 5-4 DECISIONS

AGRICULTURAL ADJUSTMENT ACT – TO RAISE FARM PRICES. GOV'T PAID FARMERS NOT TO PLANT CROPS, RAISE LIVESTOCK, BOUGHT SURPLUS GRAIN RELIEF

NATIONAL RECOVERY ACT – ALLOWED INDUSTRIAL GROUPS TO FIX PRICES OF MANUFACTURED GOODS, REGULATED LABOR RELATIONS. RECOVERY

FDR'S RESPONSE = COURT REFORM BILL AKA "COURTPACKING PLAN" – PROPOSED ADDING 6 NEW S.C. JUSTICES (WHOM HE'D APPOINT)

UNPOPULAR, PART OF THE REASON REPUBLICANS WON ENOUGH SEATS IN CONGRESS IN '38 TO JOIN WITH CONSERVATIVE DEMS TO SHUT DOWN NEW DEAL RECOVERY PROGRAMS

IN WEST COAST HOTEL v. PARRISH (1937) ONE JUSTICE, OWEN ROBERTS, SWITCHED SIDES, REJECTED SUBSTANTIVE DUE PROCESS

DID HE DO IT BECAUSE OF FDR'S COURT- PACKING PLAN? HISTORIANS DISAGREE – I SAY YES

SOME HISTORIANS THING THE SECOND NEW DEAL (1935 – 1938) WAS MORE LIBERAL THAN THE FIRST (1933 – 1934) MORE ORIENTED TO PERMANENT REFORMS

YEAH, BUT IT LASTED LONGER!

EXAMPLES OF RECOVERY MEASURES THAT WORKED:

CIVILIAN CONSERVATION CORPS, 1933 - 1945: GOVERNMENT HIRED 2.5 MILLION YOUNG MEN AGED 18-20 TO PLANT TREES, BUILD PARKS, ETC.

WORKS PROGRESS ADMINISTRATION,. 193: EMPLOYED OVER 8.5 MILLION PEOPLE: LABOR TO BUILD ROADS, PARKS, DAMS, ETC., ALSO PAINTERS, PHOTOGRAPHERS, ACTORS, SINGERS, HISTORIANS, SOCIOLOGISTS, PYSCHOLOGISTS – EVERY JOB!

RELIEF: SOCIAL SECURITY ACT OF 1935: THE BEGINNING OF THE U.S. AS A WELFARE STATE

WELFARE FOR OLD PEOPLE (65+) AND WIDOWS (SURVIVORS)

PAYROLL TAXES ON CURRENT WORKERS FUND BENEFITS FOR RETIREES AND WIDOWS (OR WIDOWERS)

PAYROLL TAXES GO INTO SOCIAL SECURITY TRUST FUND – GOV'T CANNOT SPEND ON ANYTHING ELSE

REFORMS:

DURING THE FIRST "HUNDRED DAYS" FDR TOOK U.S. OFF GOLD STANDARD – ALLOWED FEDERAL RESERVE TO PUMP MORE DOLLARS INTO ECONOMY

BANK REFORM:

1. EMERGENCY BANKING RELIEF ACT, 1933: BANK HOLIDAY, ALL CLOSED, ONLY SOUND BANKS COULD REOPEN (DETERMINED BY FED)

BANKING ACT OF 1933: CREATED FEDERAL DEPOSIT INSURANCE CORP. INSURES BANK DEPOSITS UP TO MAX THAT VARIES WITH TIME, SO WHEN BANKS CLOSE, PEOPLE DON'T LOSE ALL THEIR $$.

STOCK MARKET REFORM: THE SECURITIES ACTS OF 1933 & 1934

1933 – MADE IT A CRIME FOR CORPORATIONS AND BROKERS TO LIE ABOUT STOCK OR OMIT MATERIAL INFO AFFECTING STOCK VALUE OR TO ENGAGE IN INSIDER TRADING

1934 – CREATED THE SECURITIES AND EXCHANGE COMMISSION TO ENFORCE '33 ACT

LABOR REFORM:

NATIONAL LABOR RELATIONS ACT / WAGNER ACT (1935) GAVE EMPLOYEES THE RIGHT TO JOIN UNIONS, REQUIRED EMPLOYERS TO BARGAIN WITH UNION OVER COMPENSATION AND WORK RULES AND NOT INTERFERE WITH EMPLOYEE RIGHTS – NLRB ENFORCES

FAIR LABOR STANDARDS ACT OF 1938

MINIMUM WAGE (CURRENTLY $7.25/ HR = $14,500/YEAR (BELOW CURRENT POVERTY LINE FOR FAMILY OF 4, $23,500)

MAXIMUM WORK HOURS @ REGULAR PAY= 40/ WEEK. "TIME AND A HALF" FOR OVERTIME

CHILD LABOR BANNED –KIDS 12-14 CAN'T WORK EXCEPT FOR PARENTS AND DELIVERING NEWSPAPERS, LIMITED JOBS KIDS 14 – 17 CAN DO (NOTHING "UNSAFE")

THE RESULT – THE NEW DEAL, MOSTLY THE CCC AND WPA WORKED. PEOPLE WHO DENY IT NOW DO IT FOR POLITICAL REASONS OR OUT OF IGNORANCE

WHAT DOES HISTORY OF NEW DEAL TELL US ABOUT THE WISDOM OF CUTTING GOVERNMENT SPENDING NOW, WITH 7.7 UNEMPLOYMENT RATE? WHAT DOES IT SUGGEST WE SHOULD DO TO INCREASE JOBS?