Great Depression and New Deal. Almanac

325 Pages·2002·8.95 MB·English

by  Hanes S.M.

GD-Alm.tpgs 4/5/04 2:35 PM Page 1
Great Depression
and New Deal
Almanac
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Great Depression
and New Deal
Almanac
Sharon M. Hanes
and
Richard C. Hanes
Allison McNeill,
Project Editor
Great Depression and New Deal: Almanac
Sharon M. Hanes and Richard C. Hanes
Project Editor Imaging and Multimedia Composition
Allison McNeill Dean Dauphinais, Christine O’Bryan, Evi Seoud
Robert Duncan
Permissions Manufacturing
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LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA
Hanes, Sharon M.
Great Depression and New Deal almanac / Sharon M. Hanes and Richard C. Hanes;
Allison McNeill, editor.
p. cm.
Includes bibliographical references (p. ) and index.
Contents: Causes of the Depression–New Deal–Agriculture/Farm Relief–Banking and
housing–Ethnic populations–Education–Everyday life–Entertainment and news
media–Riding the rails (Youth on the move)–Rural Electrification–Social Securi-
ty–Women in public life–Works Progress Administration–Employment and in-
dustry–Prohibition and crime–End of Depression/World War II mobilization.
ISBN 0-7876-6533-9
1. United States–History–1933-1945–Juvenile literature. 2. United States–Histo-
ry–1919-1933–Juvenile literature. 3. Depressions–1929–United States–Juvenile
literature. 4. New Deal, 1933-1939–Juvenile literature. [1. United
States–History–1933-1945. 2. United States–History–1919-1933. 3. Depres-
sions–1929. 4. New Deal, 1933-1939.] I. Hanes, Richard Clay, 1946- .
II. McNeill, Allison. III. Title.
E806.H315 2002
973.917–dc21
2002011133
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . vii
Reader’s Guide . . . . . . . . . . . . . . . . . . . . xiii
Great Depression Timeline . . . . . . . . . . . . . . xvii
Words to Know . . . . . . . . . . . . . . . . . . . xxix
Research and Activity Ideas. . . . . . . . . . . . . . xliii
Chapter 1: Causes of the Great Depression. . . . . . . . 1
Chapter 2: The New Deal . . . . . . . . . . . . . . . 21
Chapter 3: Banking and Housing . . . . . . . . . . . . 37
Chapter 4: Farm Relief. . . . . . . . . . . . . . . . . 60
Chapter 5: Works Progress Administration . . . . . . . 81
Chapter 6: Social Security . . . . . . . . . . . . . . . 96
Chapter 7: Education. . . . . . . . . . . . . . . . . 110
Chapter 8: Employment, Industry, and Labor. . . . . . 125
Chapter 9: Electrifying Rural America . . . . . . . . . 143
v
Chapter 10: Women of the New Deal . . . . . . . . . 159
Chapter 11: Minority Groups and the
Great Depression . . . . . . . . . . . . . . . . . . 172
Chapter 12: Everyday Living . . . . . . . . . . . . . 187
Chapter 13: Riding the Rails. . . . . . . . . . . . . . 212
Chapter 14: News Media and Entertainment. . . . . . 228
Chapter 15: Prohibition and Crime . . . . . . . . . . 249
Chapter 16: End of the Great Depression . . . . . . . 266
Where to Learn More. . . . . . . . . . . . . . . . . . li
Index. . . . . . . . . . . . . . . . . . . . . . . . . liii
vi Great Depression and New Deal: Almanac
Introduction
Embedded within the timeline of a nation’s history are cer-
tain extraordinary events that spur rapid change within the
society and impact the political life and thinking of the peo-
ple for decades thereafter. In the timeline of the United States,
such events include the American Revolution (1775–83), the
Civil War (1861–65), World War II (1939–45), and perhaps the
Vietnam War (1954–75). Aside from wars, other momentous
and highly influential events include the industrial revolution
(roughly nineteenth century), the civil rights movement of
the 1950s and 1960s, and the Great Depression (1929–41). The
Great Depression was the longest and worst economic crisis in
U.S. history. It was not only economically devastating for mil-
lions, but was a personal tragedy for Americans from the very
young to the very old.
What could cause such a dramatic economic downturn
in the United States? To most Americans it seemed the prosper-
ity of the “roaring” 1920s would go on forever. Yet, throughout
the 1920s economic difficulties in certain segments of the
American economy began to surface. Industrialization, that is,
the development of industries that mass-produced consumer
vii
goods such as washing machines and automobiles, dramatical-
ly affected the United States. Rolling off assembly lines at ever
increasing rates, goods were touted by advertisers who encour-
aged consumers to borrow money to buy the goods, a practice
known as buying on credit. In the 1920s American values of
thrift and saving money increasingly gave way to accumulat-
ing debt as Americans bought the latest products on “credit”
just as soon as the products appeared in the stores. Banks eager-
ly made loan after loan. However, by 1929 this buying had
slowed. It seemed consumers could only buy so much.
The major share of wealth in the nation rested in the
hands of a tiny percentage of individual families. The very
wealthy could not sustain enough buying power to make up
for the slowdown in buying by the rest of the population.
Goods began to accumulate on store shelves forcing factories
to slow down production and lay off workers.
Another sector of the U.S. economy experiencing dif-
ficulty was the agriculture sector. Farmers had been overpro-
ducing since the end of World War I (1914–18) even after the
drop in overseas demand for their products. The glut of farm
products had driven farm prices so low that farmers could
barely earn a living much less buy consumer goods. Farm
families still accounted for 25 to 30 percent of the U.S. popu-
lation, so a significant number of Americans were already
struggling.
Although these various signs of economic trouble
began emerging in the 1920s, hardly anyone paid attention.
The majority of Americans were enjoying prosperity as never
before. So, when in October 1929 the U.S. stock market
crashed, the American public was shocked. They suddenly re-
alized the economic health of the nation was not as good as
it had seemed. Billions of dollars were lost and small in-
vestors were wiped out. Although the stock market crash was
only one of a number of factors leading to the Great Depres-
sion of the 1930s, in the public’s mind it has always marked
the start of the worst economic crisis in U.S. history. By 1932
twelve million workers, amounting to over 25 percent of the
workforce, were jobless. Industrial production had dropped
to 44 percent of the average in the 1920s. For those who kept
their jobs, incomes dropped an average of 40 percent be-
tween 1929 and 1932.
viii Great Depression and New Deal: Almanac
For the first time many citizens questioned the U.S.
system of democracy and capitalism (an economic system in
which goods are owned by private businesses and price and
production is decided privately). They also questioned the
notion of individualism, the American belief that people can
successfully make their own way in society without govern-
ment intervention. The prevailing mood of the nation
moved from opportunity to despair; from progress to sur-
vival. A philosophical tug of war raged between big business,
who wanted to work out the country’s economic woes volun-
tarily, and those who wanted government to begin regulating
business. President Herbert Hoover (served 1929–1933) was
unable to halt the economic slide.
The inauguration of Franklin D. Roosevelt as the thir-
ty-second president of the United States in March 1933 sig-
naled the beginning of a new relationship between Ameri-
cans and their government. For the first time in U.S. history
the people began to look to the government to aid in their
economic well-being. For many Americans, President Roos-
evelt’s introduction of an incredible variety of social and eco-
nomic programs, known as the New Deal, brought hope
again. People believed they had a leader who actually cared
about their welfare and establishing economic safety nets.
The New Deal programs were designed to first bring relief
(food, clothing, monetary payments) to Americans hardest
hit by the Depression. Next came the recovery and reform
programs to stimulate the economy and put into place plans
that would lessen the danger of future depressions. Govern-
ment became intricately involved in business regulation,
labor organizations, public support of the arts, social securi-
ty, resource conservation, development of inexpensive and
plentiful energy sources, stock market reform, farming re-
form, photodocumentary journalism, housing reform, public
health programs, and increasing the number of minorities
and women in public life. Business leaders and the well-to-do
despaired that the atmosphere of laissez-faire (in which in-
dustries operated free of government restraint) was over.
Government regulations and higher taxes ended the long tra-
dition of industry voluntarily regulating itself.
As the Depression lingered on through the 1930s,
various segments of American society were affected different-
Introduction ix
ly. Those in the middle classes learned to “make do,” creating
meals from simple ingredients, making their own clothes,
finding entertainment at home with board games and listen-
ing to the radio, and helping other family members who had
lost their jobs. The extreme competitiveness and consump-
tion-oriented values of the 1920s gave way to cooperative-
ness and neighborly help. Those Americans already consid-
ered poor or part of a minority group suffered mightily
during the Depression. In contrast America’s wealthiest fami-
lies, for the most part, seemingly ignored the Depression and
continued their luxurious lifestyle.
Roosevelt’s New Deal did not lead directly to major
economic recovery for the United States. By the mid to late
1930s President Roosevelt hesitated to spend the amount of
money necessary to push the economy into complete recov-
ery. While the New Deal programs did not stop the Depres-
sion, they did end the dramatic plunge in the economy and
gave food and shelter to those most in need. The Great De-
pression did not fully end until 1941, as the United States pre-
pared for World War II. The mobilization of industry to man-
ufacture massive quantities of war materials and the growth
of the armed forces at last ended the Great Depression.
The extraordinary event of the Great Depression
brought major change in how Americans view government.
Historically the federal government was viewed as detached
from the everyday activities of Americans. The severity of the
Depression made Americans consider, even demand, that the
federal government act to enhance and insure the well-being
of its citizens. At the beginning of the twenty-first century
debate continues over how far the government should go in
guaranteeing the financial security of its citizens. Debates
still rage over government regulation of business, individual-
ism versus cooperation for the common good, and over spe-
cific issues such as the Social Security system, the role of
labor unions in business, and the welfare system providing
aid to the nation’s poorest.
We have, in Great Depression and New Deal: Almanac,
concentrated on the actual event of the Great Depression
rather than simply relating all general happenings of the
1930s. The volume covers the major events, themes, and ef-
fects of the Depression on different segments of U.S. society
x Great Depression and New Deal: Almanac