Give Me Liberty Chapter 18 Apush

Give Me Liberty Chapter 18 APUSH: The Great Depression and the New Deal

The Great Depression, a period of unprecedented economic hardship in the 1930s, fundamentally reshaped American society and politics, leading to the rise of the New Deal, a series of programs and reforms enacted by President Franklin Delano Roosevelt (FDR) to combat the crisis. This chapter in Give Me Liberty explores the causes and consequences of the Depression, the diverse responses to it, and the transformative impact of the New Deal on the relationship between the government and its citizens.

The Road to Ruin: Causes of the Great Depression

The seeds of the Great Depression were sown in the prosperity of the 1920s, a period often referred to as the "Roaring Twenties." While the decade witnessed significant economic growth, particularly in the manufacturing and consumer goods sectors, this prosperity was unevenly distributed and built on shaky foundations.

Here are some key factors that contributed to the economic collapse:

• Overproduction and Underconsumption: Factories churned out goods at an astonishing rate, but wages failed to keep pace. This led to a surplus of goods and a decline in consumer demand. Farmers, facing declining crop prices after World War I, also struggled to make ends meet, further reducing their purchasing power.
• Speculation and the Stock Market Crash: The stock market became a playground for speculation, with many investors buying stocks on margin (borrowing money to purchase stock). This inflated stock prices beyond their actual value. The crash of October 1929, triggered by a series of selling panics, wiped out billions of dollars in wealth and shattered confidence in the economy.
• International Economic Problems: The global economy was also unstable, with European nations struggling to repay war debts to the United States. The United States, in turn, raised tariffs on imported goods, making it difficult for European nations to sell their products in the American market and earn the money needed to repay their debts.
• Banking Crisis: The stock market crash triggered a wave of bank failures. As people lost faith in the banking system, they rushed to withdraw their savings, causing banks to collapse. This further reduced the money supply and made it difficult for businesses to obtain loans.

The Human Cost: Life During the Great Depression

The Great Depression had a devastating impact on the lives of ordinary Americans. Millions lost their jobs, their homes, and their savings. Breadlines and soup kitchens became commonplace, as people struggled to find food and shelter.

• Unemployment: The unemployment rate soared to 25% by 1933. Many people were forced to take whatever work they could find, often at low wages and in harsh conditions. The psychological toll of unemployment was also significant, leading to despair, depression, and family breakdown.
• Poverty and Homelessness: Millions of Americans lost their homes due to foreclosure or eviction. Shantytowns, known as "Hoovervilles" (a sarcastic reference to President Herbert Hoover, who was widely blamed for the Depression), sprang up on the outskirts of cities.
• Dust Bowl: A severe drought struck the Great Plains in the 1930s, turning fertile farmland into a dust bowl. Farmers were forced to abandon their land and migrate westward in search of work, often facing discrimination and hardship.
• Family Life: The Depression strained family relationships. Men, accustomed to being the primary breadwinners, felt emasculated by their inability to provide for their families. Women often had to take on extra work to make ends meet, while children were forced to drop out of school to help support their families.

Hoover's Response: Too Little, Too Late

President Herbert Hoover initially responded to the Depression with a philosophy of laissez-faire economics, believing that the economy would eventually correct itself. He opposed direct government intervention, fearing that it would undermine individual initiative and create a dependency on the government.

However, as the Depression deepened, Hoover was forced to take some action. He supported the creation of the Reconstruction Finance Corporation (RFC), which provided loans to banks, railroads, and other businesses. He also authorized some public works projects, such as the Hoover Dam.

However, Hoover's efforts were widely seen as too little, too late. His reluctance to provide direct relief to the unemployed and his perceived indifference to the suffering of ordinary Americans made him increasingly unpopular.

The New Deal: A Bold Experiment

In 1932, Franklin Delano Roosevelt (FDR) won a landslide victory over Hoover, promising a "New Deal" for the American people. FDR believed that the government had a responsibility to intervene in the economy and provide relief to those in need.

The New Deal was a series of programs and reforms enacted between 1933 and 1939. These programs aimed to address the immediate crisis of the Depression, as well as to promote long-term economic recovery and reform.

The New Deal can be divided into three main categories:

• Relief: These programs provided direct assistance to the unemployed, the poor, and the elderly. Examples include the Federal Emergency Relief Administration (FERA), which provided grants to states for relief efforts; the Civilian Conservation Corps (CCC), which employed young men in conservation projects; and the Works Progress Administration (WPA), which provided jobs for millions of people in a variety of public works projects.
• Recovery: These programs aimed to stimulate the economy and promote recovery from the Depression. Examples include the National Recovery Administration (NRA), which sought to regulate industry and raise prices; the Agricultural Adjustment Act (AAA), which paid farmers to reduce production in order to raise crop prices; and the Public Works Administration (PWA), which funded large-scale infrastructure projects.
• Reform: These programs aimed to address the underlying causes of the Depression and prevent future economic crises. Examples include the Federal Deposit Insurance Corporation (FDIC), which insured bank deposits; the Securities and Exchange Commission (SEC), which regulated the stock market; and the Social Security Act, which provided old-age pensions, unemployment insurance, and other benefits.

Key New Deal Programs and Agencies

Here's a closer look at some of the most significant New Deal programs:

• Federal Emergency Relief Administration (FERA): Headed by Harry Hopkins, FERA provided direct relief to states, which then distributed the funds to those in need. It focused on immediate needs like food, shelter, and clothing.
• Civilian Conservation Corps (CCC): This program employed young, unmarried men in reforestation, flood control, and other conservation projects. It provided them with food, shelter, clothing, and a small wage. The CCC was highly popular and made significant contributions to environmental conservation.
• Works Progress Administration (WPA): The WPA was one of the largest and most ambitious New Deal programs. It employed millions of people in a variety of public works projects, including building roads, bridges, schools, hospitals, and airports. The WPA also employed artists, writers, and musicians, who created murals, wrote guidebooks, and performed concerts.
• National Recovery Administration (NRA): The NRA sought to regulate industry and raise prices by establishing codes of fair competition. These codes set minimum wages, maximum hours, and production quotas. However, the NRA was controversial and was eventually declared unconstitutional by the Supreme Court.
• Agricultural Adjustment Act (AAA): The AAA aimed to raise crop prices by paying farmers to reduce production. The idea was to create a scarcity of agricultural products, which would drive up prices. However, the AAA was also controversial, as it involved destroying crops and livestock at a time when many people were hungry.
• Public Works Administration (PWA): The PWA funded large-scale infrastructure projects, such as dams, bridges, and schools. These projects created jobs and stimulated the economy.
• Federal Deposit Insurance Corporation (FDIC): The FDIC insured bank deposits, protecting depositors from losing their money if a bank failed. This restored confidence in the banking system and helped to prevent future bank runs.
• Securities and Exchange Commission (SEC): The SEC regulated the stock market, preventing insider trading and other abuses. This helped to restore confidence in the stock market and protect investors.
• Social Security Act: The Social Security Act was one of the most important and enduring pieces of New Deal legislation. It provided old-age pensions, unemployment insurance, and other benefits. Social Security has been credited with reducing poverty among the elderly and providing a safety net for those who lose their jobs.

The Second New Deal

In 1935, facing continued economic hardship and criticism from both the left and the right, FDR launched the Second New Deal. This phase of the New Deal focused more on social justice and economic security.

Key features of the Second New Deal included:

• The Wagner Act: This act guaranteed workers the right to organize unions and bargain collectively. It led to a significant increase in union membership and helped to improve wages and working conditions for millions of workers.
• The Social Security Act: As mentioned earlier, this act provided a safety net for the elderly, the unemployed, and the disabled.
• The Works Progress Administration (WPA): The WPA continued to provide jobs for millions of people, focusing on projects that benefited communities.
• The Resettlement Administration: This agency sought to relocate farmers from Dust Bowl areas to more fertile land.

Opposition to the New Deal

The New Deal faced significant opposition from both the left and the right.

• Conservatives: Conservatives argued that the New Deal was too radical and that it gave the government too much power. They believed that the New Deal undermined individual initiative and threatened the free market. The Supreme Court, dominated by conservative justices, struck down several New Deal programs as unconstitutional.
• Liberals and Radicals: Some liberals and radicals argued that the New Deal did not go far enough in addressing the problems of the Depression. They called for more radical reforms, such as nationalizing key industries and redistributing wealth. Figures like Huey Long ("Share Our Wealth" program) and Father Charles Coughlin (radio priest) gained significant followings by advocating for more drastic measures.

The New Deal's Legacy

The New Deal had a profound and lasting impact on American society and politics.

• Expansion of Government's Role: The New Deal dramatically expanded the role of the government in the economy and in the lives of ordinary citizens. It established the principle that the government has a responsibility to provide a safety net for those in need and to regulate the economy in order to prevent future economic crises.
• Strengthening of Labor Unions: The New Deal helped to strengthen labor unions, giving workers more power to bargain for better wages and working conditions.
• Social Security: The Social Security Act created a system of old-age pensions, unemployment insurance, and other benefits that has provided a safety net for millions of Americans.
• Infrastructure Development: The New Deal funded the construction of numerous infrastructure projects, such as dams, bridges, and schools, which continue to benefit communities today.
• Shift in Political Alignment: The New Deal helped to solidify the Democratic Party's dominance in American politics for several decades. African Americans, who had traditionally voted Republican, began to support the Democratic Party due to FDR's New Deal policies.

Did the New Deal End the Great Depression?

Historians continue to debate whether the New Deal actually ended the Great Depression. While the New Deal did provide relief to millions of Americans and helped to stabilize the economy, it did not fully restore prosperity. Unemployment remained high throughout the 1930s.

Most historians agree that it was World War II, with its massive demand for war materials, that finally brought the Great Depression to an end. The war created millions of jobs and stimulated the economy.

However, the New Deal laid the groundwork for the postwar economic boom. It created a more stable and regulated economy, a stronger labor movement, and a social safety net that helped to prevent future economic crises.

Conclusion

The Great Depression was a defining moment in American history. It tested the resilience of the American people and forced the government to take on a greater role in the economy and in the lives of its citizens. The New Deal, while controversial, transformed American society and politics, leaving a legacy that continues to shape the nation today. Understanding the causes and consequences of the Great Depression and the New Deal is essential for understanding the trajectory of American history and the ongoing debates about the role of government in a market economy.