Professional Documents
Culture Documents
Depth Study Usa
Depth Study Usa
ORG
CAIE IGCSE
HISTORY
SUMMARIZED NOTES ON THE DEPTH STUDY - THE USA 1919-41 SYLLABUS
CAIE IGCSE HISTORY
Technological developments
First World War
Appliances like refrigerators, radios, and washing
America was minimally involved in WW1, so retained their machines became common in households
workforce and troops and didn’t suffer damage on their Thanks to the assembly line, mass production was able to
soil satisfy high demand
They had money and booming industries from selling Electricity was able to cheaply power these appliances as
weapons, food, and ammunition during the war well as the factories that produced them
Production demands and export rates were high In the 1920s, average annual sales grew to over $7 billion
Iron ore production almost doubled within 3 years
Coal, petrol, and wheat industries boomed between
1914 and 1917 Entertainment
Coal production increased from 422 to 551 million
tons Newspapers and magazines became more widely
Income from chemical export increased by over circulated
1000% In 1919, the first tabloid newspaper was published
Wheat, iron, and steel incomes more than doubled Sports, fashion, and cinema became popular topics
They were paid back money they had loaned to the British and more articles were published
for reparations By 1922, some magazines circulated amongst more
than 2.5 million people
Journalism grew as a field and an area for
Assembly Line employment
Sports grew as an entertainment industry
Pioneered by Henry Ford Thousands of people watched and listened to sports
A new method that allowed mass production at cheap matches live
rates With the spread of radios, they also listened to live
Initially expanded the automobile industry, but was soon broadcasts
utilised in other forms of production, like radios and Baseball was the most popular and became a highly
fridges profitable business
The first mass produced car was the Model T - by Millions of dollars rolled in through tickets to matches
1928, it was priced at only $295 Cinema grew in popularity
One car was produced every 10 seconds Hollywood was the film capital of the world
Low prices and reliable production attracted customers, Cinema was one of the most common leisure activities
with high demand increasing production and turning 40 million tickets were sold per week in 1920; this
profits number more than doubled by 1930
Films became a mass production industry and 3
movies were made per week in Hollywood
Expansion of the automobile industry Million dollar movies populated studios and contracts
worth thousands were signed
Further expanded the use of the assembly line Film life gained popularity as a topic in media, helping
Cars went from a privilege to a necessity, and high circulate tabloids and magazines
demand meant more production
Stimulated production in other industries, like petrol and
glass Advertisement
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
Entertainment, technology, and other mass produced This reduced the demand for natural materials like cotton
commodities were commonly advertised and wool
Billboards were large and colourful and catchphrases Though synthetic manufacturing boomed, older industries
became popular that grew these natural materials went into crisis as there
Radio advertising was a new and popular venture was decreasing demand
Adverts also circulated in newspapers, magazines, and
printed cartoons Electricity
Made mass produced commodities look appealing due to
low prices and encouraged consumers to buy things they The development of electricity reduced the demand for
did not necessarily need previously used fuels like coal
Advertisement boosted sales across the decade and While coal still powered many homes and factories,
rolled in profits in multiple industries electricity was a cheaper option and so as America turned
to electricity, the coal industry began to fail
Technology
Synthetic production
The development of new technology meant many workers
were left without a job Rayon became a popularly produced material used in
Mass production and the assembly line also resulted in clothing
many workers being laid off as their need decreased Raw materials like cotton and wool were soon replaced by
synthetics
New materials Cotton and wool farmers suffered and the material aspect
of the agriculture industry was taken over by mass
New synthetic materials, like nylon and rayon, became producing factories
popular since they were cheap to manufacture and In some cotton mills, workers were paid $10 a week
durable
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
The original inhabitants of the land The 1791 America bill of rights guaranteed freedom of
They were affected by waves of immigration and religion, speech, and of the press
forced off their land from 1850 to 1890 Push Factors
Many lived in reservations across America What made people want to leave their countries?
Some stayed traditional and maintained their ways Overcrowding
of living, remaining mostly isolated from the rest of Populations were increasing
society There was a shortage of land, especially in Europe
Most of them assimilated amongst others Lack of opportunity
Southern and Eastern Europeans Europe was still a class-dominated society
Most immigrated to America in the late 19th century The upper classes had the best land and housing and
The Polish ran the businesses
The Russians Lower classes could not improve their situation
The Italians Unemployment
Many were escaping persecution and poverty in Many workers were being laid off
Europe Wages were meager due to a lack of demand
Many were Jews or Catholics
They were often treated very badly
Asians 2. Intolerance
Lived throughout the USA but were heavily
concentrated on the West Coast Introduction
Most were Chinese, Japanese, or Korean The 1920s in USA was a period of contradictions and
Most were low-income laborers, especially contrasts.
construction workers Example of tolerance – jobs were given in Ford factories. Visa
Helped build the West Coast cities applications were amendable.
Constructed railroads
Hispanics 2.1. Black Americans
People from South America and Mexico also wanted a
better life in the USA a. Discrimination – black Americans moved north to work in
Shared the common language of Spanish the lowest-paid sector. In factories where production
Many of them, especially Mexicans, worked as increased.
cowboys on cattle ranches in the West · Sharecropper – gives a part of his crops to the landowner in
return for land to farm
Why did people want to immigrate to the “Land of b. Segregation – black people were segregated into slum
Opportunity?” areas such as Harlem in New York. This shows how the
people were differentiated due to their color and the height of
Pull Factors intolerance in the 1920s
What did people find attractive in America? JIM CROW Laws – enforce the segregation of black people.
Space Event 1 – most lived in poverty and had a permanent fear of
America had wide plains with lots of farm lynch mobs (hanging publicly)
settlements
Growing cities had room for expansion Native Americans – Red Indians
Natural resources
c. Living in reservation - the republic govt made Native
Land was cheap
Americans stay in reservations. The growing land was poor
America had large stores of oil, timber, and minerals
and many Native Americans suffered from poverty, poor
Economic opportunity
education, and ill health. Not suitable for farming and could
American industry and business led the world
not prosper
The USA had industrialized rapidly after 1850
The economy was growing fast
There were many opportunities to set up new
Communists (Red Scare) 1919-21
businesses
When the New Immigrants came from South and Eastern
Europe, there was fear of recent immigrants bringing
Wages
communist and anarchist ideas from Eastern Europe,
Wages for skilled trades and factory labor were higher
especially Russia.
than in Europe
When a series of strikes broke out in 1919, it confirmed
Farm workers were able to buy land at the time
the fears.
Land of the Free
A series of bomb blasts in 1919 suggested a conspiracy
People believed they would be free to practice their
against the state. One blast damaged the home of the
religion
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
Prohibition
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
Financial considerations of the government - money from west indies, rum runner's boats were faster than those
the new tax on people’s incomes would make up for the used by the government.
loss of money from the tax on alcohol. 2,300 special Prohibition agents appointed by the
Attitudes towards Prohibition \n "dries" - these are the Prohibition bureau, but they were too few in numbers and
people who supported Prohibition. Alcohol did severe were low on salaries ($2,500 per year) which meant they
damage to family life. \n "wets" - these are the people were prone to corruption.
who disliked Prohibition. Drinking was a popular pastime One in twelve agents was sacked for taking bribes.
and a major part of communities' culture and thought the Judges and politicians were also often taking bribes. Only
govt shouldn’t interfere. Elliot Ness and his Untouchables were a group of Us
The manufacturing of alcohol was an important source of federal agents assigned to bring bootlegging to an end
employment and also helped farmers because it used up and were above corruption.
their surplus grains. Prohibition led to the growth of Organized crime gangs.
Crime, violence, and corruption
Impact of Prohibition 1. Organized crime
Mafia families took advantage of Prohibition to make
Illegal activities came into being. Illegally manufactured fortunes
moonshines in places known as speakeasies (a bar that They fought each other for control of cities
sold alcoholic beverages illegally during prohibition). In New York, the Castella Marese war gave organized
Soon there were more speakeasies than normal bars. In crime figure, Salvatore Moranzano dominance. He
1929, New York has 32,000. became the boss of the bosses and also had a mafia
Illegal bootleggers (deal in illicit goods), moonshiners code of conduct.
(brews alcohol illegally), and rum runners (smuggle or Gangsters in every city
transport alcohol illegally). In Chicago, Dion o' bannion controlled the bootleg
Alcohol-related deaths increased from 98 in 1920 to 760 business in the south of the city, and john Tario in the
in 1926. Homemade moonshine caused death - too strong north
or contaminated. Industrial alcohol had poison added to it 2. Al Capone
to discourage people to drink but people stole and resold Most notorious gangsters were al "Scarface" Capone
for drinking. Ran massive bootlegging, prostitution, and gambling
People switched from beer to more potent spirits. rackets in Chicago in the late 1920s
Increase in corruption - bribing of police, judges and Dominated a range of ethnic gangs, Italians, Irish,
politicians were common. Jews, and black Americans
Prohibition reduced respect for the law. Controlled city officials like judges through bribery or
Between 1926 and 1927, 130 gangland murders in intimidation. During elections, he stationed gunmen
Chicago which were linked to al Capone. on the roofs
Organized crime for example the mafia expanded. Most notorious events. The "st Valentine's day
Split the democratic party. The "dries" from the rural massacre" in 1920 when he ordered the murder of
south and west and the "wets" from the urban north and seven of his main rivals. "the last supper" in 1929
east. when he personally battered three Sicilians with a
Boosted spending on other items such as guns and cars. baseball bat
In 1931 al Capone was arrested for tax invasion.
\
Why did Prohibition fail? 3. Corruption in government
Warren Harding gained a reputation for giving
It was impossible to enforce the Valstead act.
important and influential posts to his political friends
There was a lack of public support - many people were
and members of his cabinet.
"wets" and it was impossible to persuade them to change
Members of this "Ohio gang" were in positions of
their habits. Non-WASPS resented the government
power.
interfering with their freedoms.
At the beginning of 1924, soon after Harding's death,
Alcohol was readily available. Supplied by bootleggers,
congress began investigating reports of corruption
moonshiners, and rum runners. There were around
and bribery during Harding's administration.
30,000 speakeasies in New York by 1929. 280,000 illegal
Several members of the Ohio gang were charged and
stills were seized.
imprisoned for corruption.
The enforcement of Prohibition by govt officials were very
\
ineffective. Patrolling thousands of miles of us borders
with Canada and Mexico, both major routes for smuggling
liquor was impossible. Blocking 29,000 km of the coastline The end of Prohibition
was also very difficult. Rum continued to come from the
The twenty-first amendment to the constitution in
1933 ended Prohibition. In the future, laws on alcohol
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
were to be stated not federal. The new fashions and materials permitted greater
movement and self-expression.
Reasons for ending Prohibition (financial and
practical) Lifestyle
The national commission on law observance and Women from richer families had better living standards
enforcement also known as the Wickersham and more free time sure to labor-saving devices being
commission, set by president hoover, said Prohibition introduced
was unenforceable. Women began smoking, drinking, and kissing in public.
Unregulated production of alcohol was leading to too Chaperones were no longer required.
many deaths Women drove cars. Henry Ford introduced colored cars in
Pressure groups, such as the women's organization 1925 for them.
for national Prohibition reform campaigned vigorously Short hair and makeup became symbols of new freedom.
for it to end Women were acting with more independence.
Prohibition had an increase in crime rate, not a
The role of the average American woman changed very little
decrease
during the 1920s.
The cost of enforcement was very high (13.4 million)
the difference was only in upper-middle-class women who
Government income from taxes on alcohol had
made up only a minority of the women population in America.
decreased by 11 billion
Rising unemployment in the late 1920s meant jobs
were needed and the alcohol industry could provide
them
Roaring Twenties
Influential industrialists such as Jd Rockefeller junior
wanted Prohibition to end. 2.4. Introduction
2.3. Before the World War Many American wealthy families spent their money on
entertainment •
Tradition women – WASPS believed more the kids more Women from richer families had better living standards
religious u are. and more free time sure to labor-saving devices being
Most women couldn’t vote and any paid work was limited introduced
to occupations such as domestic service, secretarial work, Women were becoming more independent and got the
and teaching. right to vote
Restrictive dresses - corsets and full-length skirts along Flapper – emancipated young women who were free and
with dresses with tight waists. embraced the new fashions and urban attitudes.
Controlled public behavior - modest, polite, and discrete. Many women entered the workplace – nurses, and
No drinking or smoking and if unmarried, no male librarians.
company without a chaperone. Modern women did not believe their job was to only raise
kids. The birth rate declines. Tradition women – WASPS
During the First World War believed more the kids more religious u are.
The roaring twenties introduce new cultural aspects.
Women performed men’s work in the war industries as The cars were an advantage to allow people to travel to
men were required in the armed services jazz shows and to the cinema.
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
Jazz was the black American music – also known as the relief was given to all banks
Harlem Renaissance Shut down all banks and gave a bank holiday. 4-day
national bank holiday
Radio Bank closings soon decreased as he gave the people time
to process and have faith. Public confidence was restored.
The vaudeville and variety theatres were closing down as FDR explained what he was doing through national radio
their attractions declined. Radio was a popular broadcasts.
replacement and became a national network.
1. Federal Deposit Insurance Corporation - insured
banks so people would not lose any savings in the
3. What was the New Deal as event of a. bank failure restored faith in banks.
2. Emergency banking act – 5% of banks shut down
introduced in 1933?* completely, the rest helped with grants and advice.
Unemployed
The First Hundred Days – between March and June 1933 13 million people were unemployed in 1933, 25% of the
3 main aims of the new deal workforce
a. Civilian conservation corporation (CCC) - gave young men
1. Relief or assistance for the unemployed or poor
voluntary employment.
2. Rebuilding the American economy
Jobs included planting trees, cleaning up parks, etc. living in
3. Reforms to create a fair and just society
government camps.
Roosevelt gave a deal for 100 days and it was known as Low-wage paying jobs but provided 2 million men with jobs.
the 100-day deal. b. Public works administration (PWA) - created jobs initiating
The new deal marked a Change away from the laissez- major public construction projects like building schools,
faire attitude the govt had previously taken w the roads, and bridges.
economy Spent $7 billion creating jobs
It established the idea that the govt was responsible c. Civil Works Administration(CWA) – provided temporary
The new deal permanently increased the size and power work in the winters of 1933-4.
of the federal government 4 million jobs were created. The scheme ended in April 1934
New deal legislation Relief, recovery, reform in this order
National labor relation act- gave employees permission
ONLY
from trade unions
In 1932, in an inaugural address, he reassured the
Norris-la Guardia Act- prohibited courts or the govt from
American public with his famous quote “We have nothing
stopping peaceful union strikes
to fear but fear itself”.
In the first hundred days of office FDR was able to get Farmers
Congress to pass many laws he proposed
The program would become known as alphabet agencies Agricultural adjustment act - paid farmers to plant less to
increase crop prices
Relief Million acres of sown land plowed and 6 million piglets
Recovery slaughtered
Prices rose and farmers’ incomes doubled
FDR felt the way to recovery was to stimulate demand for
However many farm laborers ended up unemployed.
goods
FDR differed from Hoover's policy of giving money to the Industry
public. National Industrial Recovery Act.
FDR wanted to put money into consumers’ hands hoping
to increase their spending thereby increasing demand. National recovery administration (NRA) - set business
codes to stabilize production and price, and improve
Reform working conditions and pay.
Voluntary codes for each industry for regulation of prices,
Reforms were aimed at fixing the defects in the American
output, hours, and wages.
economy so the depression wouldn't happen again
The public was encouraged to buy from businesses that
These Reforms were based on the belief that the
implemented these codes.
government should protect individuals against risks that
This led to improvement in working conditions and
could not handle on their own
reduced child labor.
This would increase the power and presence of the
However, favored large firms and forced smaller firms
national govt in the lives of all Americans into the future.
out of business.
Banks Supreme Court ruled the scheme unconstitutional and
wasn’t revived again.
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
The Poor The New Deal was seen to undermine core American
values
Federal emergency relief Administration (FERA) - gave TVA and NRA were compared with the Stalinist economic
money for emergency relief to those in need. Budget - planning of the USSR.
$500 million. Claimed that Roosevelt became too powerful and was
Funded soup kitchens, and set up work schemes and acting like a dictator
nursery schools.
b. The Liberty League, 1934
What was the TVA?
Tennessee valley authority – aimed to restore the prosperity Created by business leaders to unite opposition to the
of the Tennesee Valley area as its local agriculture was badly New Deal
affected by floods and 4.5 million were dependent on govt FDR was accused of becoming socialist and destroying the
relief schemes. free enterprise spirit of America.
Forests were planted, dams were built and flood prevention Businessmen disliked his support for trade unions and the
schemes were introduced. various codes of NIRA.
New industries attracted and hence became a showcase for
the New Deal. c. States’ rights campaigners
Why did the New Deal encounter opposition?
State governors argued that the new deal rules conflicted
Did not seek for communist and socialist solutions to with the state govt rights to manage their own affairs
combat the depression. Objected to the TVA as it compelled state govts to
No nationalization and major redistribution of wealth. cooperate with federal govt.
Some thought that FDR did not go far enough
d. Supreme Court
However, conservative Americans thought FDR was too
radical. The main task – see if measures passed by President and
Congress were consistent with the American constitution.
Radical opposition
Most of the nine judges were old, conservative, and
a. The “Radio Priest” and the National Union for Social Justice
Republican
Father Coughlin from Detroit broadcasted his ideas on the Natural political dislike for the New Deal and declared
radio every Sunday evening to an audience of 40 million NRA and AAA constitutional.
Americans. He tried appointing 6 judges who would agree with his
Was originally a supporter of the New Deal but then felt it policies in 1936 but was accused of trying to pack the
was doing enough for the poor. court and overthrow the Constitution.
Supreme Court began to drop its opposition and
b. Townsend Clubs supported two key measures in 1937, one of them being
the pensions section of the Social Security Act.
Dr. Francis Townsend – author of Townsend Plan
People over 60 receive a pension of $200 a month given Did the fact that the New Deal did not solve unemployment
they spent the money within the month. Pension funded mean that it was a failure?
by taxation. The New Deal as a failure
Created to help older people, create jobs for the young, · Never fell lower than 14% of the workforce
Unemployment
and inject money into the economy. in the 1930s
· Businessmen and industrialists weren’t
c. Huey Long’s “Share our Wealth” scheme
happy with the encouragement under the
Trade unions
Senator Huey Long planned the redistribution of wealth to Wagner Act.· Violence was opted by some
stimulate the economy businesses to break up strikes.
His scheme included confiscation of large fortunes, lump · Tenant farmers, laborers, and
sums for families, pensions, minimum wages, and free Small farmers sharecroppers forced off the land by govt
education. plans to reduce agricultural production.
7.5 million supporters in 1935. · Didn’t end racial discrimination· Support
Assassinated in September 1935 by the son-in-law of his Black of the democrats in the south was needed,
political opponents. Americans hence civil rights laws couldn’t be passed as
Conservative opposition they would oppose it.
a. Republicans · Recovery was held back due to an increase
Industry in rules and regulations, taxation, and the
Believed in minimal govt intervention, low taxes, love govt formation of trade unions
expenditure, self-help, and individual responsibility.
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
· Never fell lower than 14% of the workforce Schemes to provide employment for artists, actors, and
Unemployment
in the 1930s writers.
· Dec 1941 – America began defense National Youth Administration – part-time work and
spending and supplying armaments to vocational training for young people.
Second World
Britain and France· Arguably said that this Resettlement Administration (RA), 1935
War
was the reason for the economic revival of
1940 and 1941 rather than the New Deal. Focused on the plight of farm laborers, sharecroppers,
and tenant farmers who were made unemployed.
Aimed to move 500,000 families to areas with better land.
The New Deal as a success
Why did unemployment persist despite the New Deal?
Unemployment · Fell by over 30% btw 1933 and 1939
When Roosevelt became president, unemployment was at
· Memberships increased to 7 million 12.8 million, 25% of the workforce.
following the Wagner Act· Disputes settled
Trade unions By 1941 unemployment was down by 5.6 million.
in workers’ favor.· Working conditions and
In the 1930’s it was never below 5 million despite Roosevelt’s
pay improved efforts.
· Large-scale farmers benefited. Acreage Reasons
Farmers
and livestock reduction, price increases. a. The home market
· Welfare payments and other emergency
benefits helped millions of Americans· Low incomes during the 1930s hence less money spent on
The poor American goods.
America was seen as more
compassionate. This happened in rural areas as they depended on the
recovery of the farming industry. Wheat and cattle prices
· Many were saved by Roosevelt’s
reached 1929 levels after the US entered WW2.
Emergency Banking Act.· Future industrial
Industry
development and prosperity from the b. The foreign market
construction projects.
· FDR’s policies gave people hope, Overseas customers also suffered from the depression
confidence, and a sense of purpose.· New hence expanding the exporting industries was limited.
Morale Firm tariffs reduced the scope for international growth.
Deal ensured the survival of America
without resorting to extreme measures. c. Improved production methods
How far did the character of the New Deal change after Agriculture – more machinery (assembly line productions
1933? and automatic tools), less labor hence reduced working
More work had to be done opportunities.
Second New Deal introduced between 1935 and 1937
Emphasis on victims of depression and creating a fairer d. The business cycle
American society
The world economy improved between 1933 and 1937 but
The Wagner Act, 1935
back into recession in 1938.
Replaced the NRA, introduced by Senator Wagner
e. Self-inflicted unemployment
Supported rights of employees to form trade unions and
outlawed unfair practices used by employers to prevent Business efficiency is most important for surviving
union employment like dismissal of trade union member through a recession.
workers. If there is overproduction, production capacity has to be
National Labor Board – referee between trade unions and reduced hence the loss of jobs.
employers. This happened in the farming industry
Provided people with unemployment insurance and old Roosevelt couldn’t take complete control of the economy
age pensions and help for the sick and disabled. as Congress wouldn’t allow this so he took parts of the
Funded by taxes levied on employers and workers. problem and gave solutions for individual parts.
Hence the economy recovered at a very slow pace.
Work Progress Administration (WPA), 1935
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
A share is a percentage of ownership in a company or a By 1929 – the production of more consumer goods than there
financial asset. Investors who hold shares in any company are were consumers.
known as shareholders. The market saturated as Americans with the money bought
everything they need.
During the 1920s, the American stock market was steadily
rising. e. Signs of an economic slow-down
Speculators bought shares and sell them within a few
weeks to pocket an easy gain. Signs of boom ending before October 1929
In the mid-1920s – speculators bought shares “on the By 1927 – fewer new houses were built, sales of cars
margin” – borrowing money from banks to fund the share declining, and wage increases leveling off.
purchase. Stock levels in warehouses increasing suggesting the
The loan was repaid when shares were later sold. Banks economy slow down.
lend up to 90% of the share price. Made investors nervous and anxious to sell shares at the
first sign of serious trouble.
First bank and business failures – general reduction in
In October 1929, panic selling of shares in the market led to a trade and demand for American goods.
“crash” which marked the beginning of the Great Depression. Businesses reduce operations by sacking workers and
reducing the wages of the remaining.
Timeline of the crash. Vicious cycle – these actions took more money out of the
economy and reduced demand for goods.
18th October - prices began falling.
Business confidence collapsed – expansion projects were
19th October - 3.5 million shares sold. Prices fall.
put on hold.
21st Oct - over 6 million shares change hands.
Consumers – were unwilling to make expensive
24th Oct-'Black Thursday - 13 million shares sold. No
purchases, and jobs were insecure.
buyers
\
26th October - president hoover the fundamental
America could no longer afford to buy any foreign imports
business of the country is on a spend and secure basis
meaning other countries lacked dollars to buy American
29th Oct - 16 million shares sold. No buyers.
exports.
Prices on the stock market collapsed
Rising unemployment in Europe and Japan increased
unemployment in America.
4.1. Causes of the Wall Street Crash
November 1932 – Democratic Party candidate, Franklin D
a. The actions of speculators
Roosevelt defeated Hoover’s attempts to win a second term
People started selling stocks altogether and the market
by a landslide victory.
collapsed as anticipation of stock market prices going down
Roosevelt polled 7 million votes than his rival who won 6 out
scared people.
of 48 states.
b. Exports
Hoover’s weaknesses
The US has limited opportunities for exporting its product.
He was elected just as the 1920s boom was beginning to
European customers were impoverished and had not yet
end so his presidency was associated with banks and
recovered from the financial strains of the First World
business closures, a failing economy, and rising
War.
unemployment.
American tariffs – tariffs set by customers that made it
His early reaction to the depression was misplaced. He
difficult for American exporters to operate in foreign
thought it was a normal business downturn.
markets.
The actions he took when he realized that the economy
was in serious trouble were considered too late and too
c. Uneven distribution of income little.
Against the federal govt giving welfare support to the
Between 50 and 60% - of Americans were too poor to take unemployed as it undermines American values of self-
part in the consumer boom of the 1920s help and rugged individualism.
Low wages and unemployment in traditional industries It made him seem unsympathetic and indifferent to
and among blacks and immigrants. humans.
5% of the population was receiving 33% of the income in In the 1932 campaign, he couldn’t project himself as a
1929. man of vision ready to experiment with new ideas. Came
Too much money in too few hands. across as grim-faced and conservative.
Mass production – mass consumption – higher wages.
WWW.ZNOTES.ORG
CAIE IGCSE HISTORY
1930 – taxes cut by $30 million for more purchasing By 1933 – one in 4 of the workforce was out of a job
power in the economy No welfare benefits to assist households that were out of
Hawley-Smoot Act (1930) – tariffs introduced to protect income but rents and mortgages still had to be paid.
American goods. Some survived with help of families, friends, and
Money to finance building programs to create more jobs. neighbors.
Hoover Dam on Colorado River. Others were evicted from their homes and reduced to
Employers make voluntary agreements with employees to begging on the streets.
maintain wages.
Reconstruction Finance Corporation (1932) – provide
loans to businesses facing hard times, up to $1500 million Shanty towns made up of makeshift huts and tents on the
edges of towns and cities became known as “Hoovervilles”.
Federal Farm Board – buys surplus produce to stabilize These communities were dependent on soup kitchens and
prices. public relief schemes provided by local govt.
By 1932, more than 100 of these authorities had no money
left.
Roosevelt’s strengths
He was a Democrat hence he had no responsibility for the 4.4. “Bonus Army” protest
policies that led up to the Great Depression.
1928 – he became Governor of New York State, and 25000 army veterans were promised a war service bonus
organized schemes to help the elderly and unemployed. It to be given in 1945 but following the economic issue, they
gave him a reputation for understanding the plight of the wanted it bought forward to 1932.
poor. They began a peaceful protest opposite the White House
He had an upbeat personality and appeared warm, after Congress refused to pass the Bonus Bill.
charming, and optimistic on the campaign trail. Hoover took this as a threat and asked the army to clear
He was admired for the way he fought against the polio the site.
he contracted in 1921. The camp was destroyed with tanks, machine guns, and
The electorate was infected by his confidence and tear gas.
determination to fight against the odds. Two veterans were killed and thousands were injured.
The crash led directly to bank and business failures and a
rise in unemployment.
WWW.ZNOTES.ORG
CAIE IGCSE
History