IMPACT OF THE GREAT DEPRESSION

ON MODERN AMERICA

Lea Godret-Mietschin

OVERVIEW ¢ Socially

�  Eleanor Roosevelt �  Women’s Advancements �  Minorities

¢ Economically and Governmentally �  Economic Theories �  Income inequality �  Public policy over the years �  Shift in politics �  Recent recessions and debt

SOCIALLY- ELEANOR ROOSEVELT

¢ During the Depression Overview �  Ran the National Democratic

Committee’s Women’s Division ¢  Integrated qualified women in to

the Roosevelt administration and federal government (Children’s Bureau and Labor Department)

�  “If you ask me” column in Ladies Home Journal (1941-49)

�  Autobiographies

SOCIALLY- ELEANOR ROOSEVELT

¢ At the beginning of WWII �  Involved women in war preparations (video)

¢  Red Cross

�  “Rosie the Riveter” �  Fair employment practices commission

¢  Executive order 8802

SOCIALLY- ELEANOR ROOSEVELT After WWII ¢ President Harry Truman appointed her to serve on he

United Nations (Dec. 1945) �  Advocated for millions of oppressed and tyrannized peoples �  Waned European powers to grant independence to their

colonized and conquered countries.

SOCIALLY- ELEANOR ROOSEVELT ¢ Universal Declaration of Human rights ¢ Supported effort o make a Civil Rights Division

�  Worked with NAACP (National Association for the Advancement of Colored People)

¢ Fair Employment Practices Committee permanent

SOCIALLY- WOMEN ADVANCEMENTS ¢  1970- Working harder for same pay (anti-

feminist) �  Roe v. Wade �  Pushed to go home to take care of children

�  2,500 women presided over federal and state courts in 1960’s

�  Sandra Day O’Connor and Ruth Bade Ginsberg

�  Janet Reno (Attorney General)

�  Congress ¢  Shift in issues

SOCIALLY- WOMEN ADVANCEMENTS 1980-1990 ¢ Workforce

�  Still struggle with the glass ceiling

¢ Government �  Madeleine Albright (Secretary of State)

MINORITIES

¢ During the Depression �  Fired first (50% unemployment vs 25%) �  Denied programs

¢ FDR’s support helped to give rise to the civil rights movement of the 1960’s.

MINORITIES- BLACK AMERICANS

¢  1937 Roosevelt appointed William Hastie to be a federal judge

¢  1939 Roosevelt established a civil rights section in the Justice Department

¢  45 Blacks appointed to federal positions ¢ Cabinet of Black advisors ¢ By 1943 labor shortages enabled employment

MINORITIES- MEXICAN AMERICANS

¢ Lots of immigration �  1900-1930 there were 1,000,000 �  Worked as cheap laborers

¢  In the Depression �  Considered the problem

¢  Target of mass removal (still a fear today)

�  Confederation of Mexican Farmers (California) �  Civilian Conservation Corps and National Youth

Administration �  WPA

MINORITIES- AMERICAN INDIANS

¢  1920 not much land left ¢  John Collier as U.S. commissioner of Indian

Affairs �  Indian New Deal

¢  Indian Arts and Crafts Board in 1935 ¢ Civilian conservation Corps Indian Division 1933

�  Mostly young men

MINORITIES- INDIAN AMERICANS Indian New Deal ¢ Political and cultural existence of tribes

�  Slow American imperialism

¢ Better social services ¢  IRA (Indian Reorganization Act) 1934

�  Adopt written constitutions that established democracies ¢  Could purchase lands ¢  Start businesses ¢  Receive social services

�  Increasing tribal economic and political independence

¢  Johnson-O’Malley Act 1934 �  Extra school funding for

Indian children (to stop discrimination)

MINORITIES- ASIAN AMERICANS ¢ Massive immigration

�  Mines �  Railroads �  Agriculture

¢ Paid lower, blamed like Mexicans

¢ Chinatowns formed with unemployment

¢  1965- bans lifted on immigration

ECONOMICS- ECONOMIC THEORIES

Keynesian Economics ¢  John Maynard Keynes ¢ Short-term theory

�  Gov. decreases interest rates, increases spending

�  Demand will rise, so will economy

ECONOMICS- ECONOMIC THEORIES Supply Side Economics ¢ Third major economic theory ¢ Reagan, Jack Kemp, Arthur Laffer ¢  Jean Say’s Treatise on Political Economy and

Taxation 1817 �  High taxes hut economy

¢  discourage work ¢  production ¢  innovation

ECONOMICS- ECONOMIC THEORIES (SUPPLY SIDE CONTINUED)

¢ Laffer Curve �  Calculated highest tax rates

market could bear �  Emphasized tax reduction �  Reduced government �  Less spending �  Less fiscal targets �  More free market �  De-regulation of private

industries

CHANGES IN GOVERNMENT ¢ Supporting the poor allows them to function as a

part of society �  Welfare created for those who cannot care for

themselves ¢  Political realignment ¢  Rural and urban democrats ¢  Organized labor of minorities that lasted

¢  1938- Southern Democrats and Midwestern Republicans formed a bipartisan conservative coalition �  Majority for 25 yr. �  Stopped relief programs �  Dr. Win the War

CHANGES IN GOVERNMENT

¢ Truman’s Fair Deal �  Federal aid for education �  National health insurance �  Crop subsidies to help

farms �  Legislation to end lynching

and poll tax �  Failed

¢ Did pass 22nd Amendment 1947 �  President limited to two

terms

CHANGES IN GOVERNMENT ¢ McCarthyism (1949-1960)

�  Liberalism and domestic reform is bad, “communism” �  Hardships abroad were because of treason domestically �  Caused conformity

¢  Students ¢  Intellectuals ¢  Government officials

CHANGES IN GOVERNMENT

1960 ¢ Emphasis on social justice and reform,

beginning with African American civil rights activism

¢ Kennedy really encouraged this through his “New Frontier” reforms �  Education �  Healthcare �  Civil rights �  Very reserved, did not want to crush the

fragile bubble of hope or the democratic coalition

CHANGES IN GOVERNMENT ¢ Lyndon B. Johnson “Great Society”

�  Major tax cuts �  Civil Rights Bill (no segregation) �  Fair Employment Practices Committee (no racism) �  War on Poverty

¢  Head start for preschoolers ¢  Job Corps for high school dropouts for vocation training

�  No conservative grip in congress 1964 (61% of vote)

CHANGES IN GOVERNMENT ¢ Congress “of fulfillment” (89th) passed whole

democratic agenda, 100 bills, end in 1966 �  Federal role in increasing quality of life �  Medicare (aged health care) 1965 �  Medicaid (Medical care for poor) 1965 �  TANF �  24th Amendment (no poll tax) �  Federal help for education �  Low-income housing �  No national origin quotas �  Federal standards for car safety �  Labeling food and drugs �  National endowments of arts and humanities �  Reducing pollution �  Protect and preserve nature

¢ Basically, everything was great

CHANGES IN GOVERNMENT ¢  Then there was the Vietnam Conflict 1955 – 1975

�  Gulf of Tonkin Resolution and bombing campaign

¢  Stagflation ¢  Lost support; gave way to Republican Party

�  Welfare 1966 ¢  Personal Responsibility and Work Opportunity Reconciliation

Act and Temporary assistance for Needy Families (had limits)

CHANGES IN GOVERNMENT

Richard Nixon (1969-1974) ¢ Wound down the conflict in

Vietnam ¢ Wage and Price freeze (90 days) ¢ Budget impoundment control act ¢ No growth of social welfare ¢ Energy crisis ¢ Environmental protection act

1970

CHANGES IN GOVERNMENT ¢ Ford did not do much ¢  Jimmy Carter

�  Stagflation �  1980 Recession �  Oil deregulation

RONALD REAGAN ADMINISTRATION

¢ Campaign of 1980 �  Choose George Bush as vice

¢  No more “voodoo economics” ¢  Very loyal

�  Vs. Jimmy Carter ¢  Faced with inflation and

stagflation ¢  Lost popularity

�  Took office Jan 20, 1981, re-elected 1984

�  Bush Sr. elected 1988

RONALD REAGAN ADMINISTRATION ¢ Senate republican, House democrat

�  Used southern democrats to pass policy

¢  “Reaganomics” �  Economic Recovery Tax Act 1981

1.  Tax reduction to encourage investment and production (highest 70 to 33)

2.  Spending cuts (to reduce gov. size) 3.  Reduce federal regulation against business growth

¢  Initially created competition and low prices ¢  Eventually caused elimination and higher prices

(airlines) 4.  Stable monetary policy to control inflation

“The best sign that our economic program is working is that they don’t call it Reaganomics anymore.” –Ronald Reagan

CHANGES IN GOVERNMENT

Obama ¢ American Recovery and

Reinvestment Act ¢  2008 Recession ¢ Health Care Reform Bill

CHANGES IN GOVERNMENT- SUMMARY ¢ Great Depression and economic solution

(Keynesian economics) changed politics and economy forever �  Ideas carried forward throughout the years

INCOME INEQUALITY

¢ Started to widen with the rise of the barons in the 1870’s

¢ Roaring 20’s widened again

¢ Closed in the depression ¢ Widened again in the

1970’s with government actions and stagflation

¢ Graph

EFFECTS OF INCOME INEQUALITY ¢ Money in fewer hands

�  Less money circulating �  Fewer jobs �  Lower pay �  More inflation and stagflation

¢ Gets wider and wider

OTHER RECESSIONS- 1980

¢  Jimmy Carter is President ¢ Causes

�  Disinflationary monetary policy by federal reserve (due to the large cuts in domestic spending)

�  Iranian Revolution of 1979 ¢  Oil prices rise ¢  Restrictive monetary policy

stops inflation as well as economic growth

OTHER RECESSIONS- 1980 ¢ Solutions

�  Tax cuts �  Defense buildup (military Keynesianism) �  Loosening monetary policy

¢ Results �  Income gap widened a lot �  Lots of debt buildup �  Republican support went down, but Reagan still got

elected

OTHER RECESSIONS- 2008 ¢ Greatest recession since Great Depression ¢ Stock market crashed

�  Jan 2008 at 12,800 points ¢  Sep 15 dropped 504 ¢  Sep 17 dropped 499 ¢  Sep 29 dropped 777

�  Jan 2009 at 9,034 points �  Interesting video compilation

¢ Lack of Faith in Economy �  Less consumer spending �  Less business revenue �  Unemployment

¢  April 2009 8.5%

OTHER RECESSIONS- 2008 ¢ Similarities to the Great Depression

�  Speculation (specifically housing in 2008) �  Bank crisis �  Loss of consumer confidence �  Government action

OTHER RECESSIONS- 2008 ¢ Very quick government action ¢ Using Keynesian economics to stimulate economy

�  Tax Rebate checks �  Money for homeowners �  Bailouts for JP, Morgan Chase, Bear sterns, Fannie

Mae and Freddie Mac, Chrysler, GM, Ford, banks, AIG

�  2008 homebuyer tax credit for up to 8,000 �  Tax cuts �  Job Creation �  Small business lending

¢ FDID raised to 250,000 from 100,000 ¢ No dust bowl or WWII ¢ Caused Huge Debt

OPCVL - ORIGIN ¢ U.S. President George W. Bush gave a speech on

September 19, 2008 �  Only 4 months before term ended

¢ Discusses the Financial Crisis ¢ Video of Speech

OPCVL - PURPOSE ¢ Convince the population that the government

should use tax dollars to bailout economy and that government action is needed �  Given the precarious state of today’s financial

markets…government intervention is not only warranted, it is essential

�  These measures will require us to put a significant amount of taxpayer dollars on the line. This action does entail risk. But… it will be paid back.

¢ He had asked congress for the ability to do this, but here he is talking directly to the nation �  Uses words such as “pivotal”, “erosion”, “serious risk”

“essential”, “severe”, “troubled”, “fraud”, “risk” �  More government action needed

OPCVL - VALUE ¢ Shows how he seems to be trying to bring the

country together to fight this, but has no idea how to do that �  The actions I just outlined reflect the considered

judgment of Secretary Paulson, Chairman Bernanke, and Chairman Cox.

�  We must join together to move legislation as quickly as possible

¢ Demonstrates how tense and worried everyone is �  In this difficult time, I know that many Americans are

worried about the security of their finances �  There will be ample opportunity to debate the origins

of this problem

OPCVL - LIMITATION ¢ From Bush’s perspective, his very purpose does

not show how the nation feels �  He is trying to reassure the public so he is

sugarcoating the subject �  Talking about working together is a nice idea, but

probably not completely realistic.

OTHER RECESSIONS- 2008

Obama Frank Dodd Act 2010 ¢ Established New Agencies

�  Consumer Financial Protection Bureau

¢  “Holds Wall St. Accountable” �  Tax payers do not have to stop them from failing �  “Volcker rule” �  No more bailouts

SUMMARY ¢ U.S. National Debt higher than any other time in

history �  Tax cuts increased business, but spending did not go

down

SUMMARY

¢ Changed politics ¢ Added debate

�  Role of government �  Incentives as U.S. became part of the global economy

BIBLIOGRAPHY ¢  Schondelmeyer, Brent. "Supply-Side Economics." Dictionary of American History. Ed. Stanley I. Kutler. 3rd ed. Vol. 8. New York: Charles Scribner's Sons, 2003. 21-22.U.S. History in Context. Web. 28

Nov. 2015.<http://ic.galegroup.com/ic/uhic/ReferenceDetailsPage/ReferenceDetailsWindow?failOverType=&query=&prodId=UHIC&windowstate=normal&contentModules=&display-query=&mode=view&displayGroupName=Reference&limiter=&currPage=&disableHighlighting=false&displayGroups=&sortBy=&search_within_results=&p=UHIC&action=e&catId=&activityType=&scanId=&documentId=GALE%7CCX3401804093&source=Bookmark&u=albu23958&jsid=a5809710209595390959e3f0fdceb03b>

¢  "Supply-Side Economics." Gale Encyclopedia of U.S. Economic History. Ed. Thomas Carson and Mary Bonk. Detroit: Gale, 1999. U.S. History in Context. Web. 28 Nov. 2015. <http://ic.galegroup.com/ic/uhic/ReferenceDetailsPage/ReferenceDetailsWindow?failOverType=&query=&prodId=UHIC&windowstate=normal&contentModules=&display-query=&mode=view&displayGroupName=Reference&limiter=&currPage=&disableHighlighting=false&displayGroups=&sortBy=&search_within_results=&p=UHIC&action=e&catId=&activityType=&scanId=&documentId=GALE%7CEJ1667500673&source=Bookmark&u=albu23958&jsid=a2f0cf9423fc417dec99f2c6c8107efd>

¢  "Reaganomics." Gale Encyclopedia of U.S. Economic History. Ed. Thomas Carson and Mary Bonk. Detroit: Gale, 1999. U.S. History in Context. Web. 28 Nov. 2015. <http://ic.galegroup.com/ic/uhic/ReferenceDetailsPage/ReferenceDetailsWindow?failOverType=&query=&prodId=UHIC&windowstate=normal&contentModules=&display-query=&mode=view&displayGroupName=Reference&limiter=&currPage=&disableHighlighting=false&displayGroups=&sortBy=&search_within_results=&p=UHIC&action=e&catId=&activityType=&scanId=&documentId=GALE%7CEJ1667500580&source=Bookmark&u=albu23958&jsid=1501d34aa4277cd292632e1b745c0373>

¢  Newman, Jason. "women in the workplace." American History. ABC-CLIO, 2015. Web. 4 Dec. 2015. <http://americanhistory.abc-clio.com/Search/Display/263292?terms=eleanor+roosevelt+after+wwII>

¢  "Minority Groups and the Great Depression." Great Depression and the New Deal Reference Library. Ed. Allison McNeill, Richard C. Hanes, and Sharon M. Hanes. Vol. 1: Almanac. Detroit: UXL, 2003. 172-186. U.S. History in Context. Web. 6 Dec. 2015. <http://ic.galegroup.com/ic/uhic/ReferenceDetailsPage/DocumentToolsPortletWindow?displayGroupName=Reference&p=UHIC%3AWHIC&action=2&catId=&documentId=GALE%7CCX3425600021&source=Bookmark&u=oldt1017&jsid=d7f0eb9a9ce8607bd96dc799dea9b5bf>

¢  Dobson, John. "stagflation." American Government. ABC-CLIO, 2015. Web. 6 Dec. 2015. <http://americangovernment.abc-clio.com/Search/Display/203701?terms=1980+recession>

¢  "The Consumer Financial Protection Bureau, created by the Dodd-Frank financial-reform act, has turned its regulatory sights to a new industry: payday lending." National Review 26 Jan. 2015: 8.U.S. History in Context. Web. 9 Dec. 2015.<http://ic.galegroup.com/ic/uhic/MagazinesDetailsPage/MagazinesDetailsWindow?failOverType=&query=&prodId=UHIC&windowstate=normal&contentModules=&display-query=&mode=view&displayGroupName=Magazines&limiter=&currPage=&disableHighlighting=false&displayGroups=&sortBy=&search_within_results=&p=UHIC&action=e&catId=&activityType=&scanId=&documentId=GALE%7CA396615656&source=Bookmark&u=albu23958&jsid=0783fc0c0160882f99f859a0cb8a06d8>

¢  "The Legacies of the Great Depression." The Great Depression and the New Deal. Woodbridge, CT: Primary Source Media, 1999. American Journey. U.S. History in Context. Web. 9 Dec. 2015. <http://ic.galegroup.com/ic/uhic/ReferenceDetailsPage/ReferenceDetailsWindow?failOverType=&query=&windowstate=normal&contentModules=&mode=view&currPage=&zid=&action=e&prodId=UHIC&display-query=&limiter=&dviSelectedPage=&displayGroupName=Reference&displayGroups=&disableHighlighting=&sortBy=&search_within_results=&p=UHIC&catId=&activityType=&scanId=&documentId=GALE%7CEJ2158000335&source=Bookmark&u=albu23958&jsid=d1e1df7e409fa3060d8277e75edd5461>

¢  "40 years of income inequality in America, in graphs." PlanetMoney. npr, 2 Oct. 2014. Web. 2 Jan. 2016. <http://www.npr.org/sections/money/2014/10/02/349863761/40-years-of-income-inequality-in-america-in-graphs>.

¢  "President bush statement on plan to save wall street." YouTube. N.p., 2008. Web. 2 Jan. 2016. <https://www.youtube.com/watch?v=IP7GYSr2dQQ>.

¢  "First Lady Biography: Eleanor Roosevelt." National First Ladies Library. N.p., n.d. Web. 2 Jan. 2016. <http://www.firstladies.org/biographies/firstladies.aspx?biography=33>

¢  Anthony, Carl. "The political and public influence of Jacqueline Kennedy." National First Ladies Library. N.p., 2013. Web. 2 Jan. 2016. <http://www.firstladies.org/blog/jackie-kennedy-interviewoverview/>.

¢  Smiley, Gene. "Great Depression." Library of Economics and Liberty. N.p., n.d. Web. 2 Jan. 2016. <http://www.econlib.org/library/Enc/GreatDepression.html>.

¢  "Wall Street Reform: The Dodd-Frank Act." the White House. N.p., n.d. Web. 2 Jan. 2016. <https://www.whitehouse.gov/economy/middle-class/dodd-frank-wall-street-reform>.

¢  Fontinelle, Amy. "What is the Dodd-Frank Act? How does it affect me?." Investopedia. N.p., 2013. Web. 2 Jan. 2016. <http://www.investopedia.com/ask/answers/13/dodd-frank-act-affect-me.asp>.

¢  "1980-82 Early 1980 Recession." Slaying the Dragon of Debt. Regents of the University of California, 2011. Web. 2 Jan. 2016. <http://vm136.lib.berkeley.edu/BANC/ROHO/projects/debt/1980srecession.html>.

¢  "The Great Depression: Then and Now." The Great Depression. N.p., 2010. Web. 2 Jan. 2016. <http://thegreatdepressioncauses.com/now/>.

¢  "Understanding the Financial Crisis very good explanation HD." YouTube. ABCNewsUS, n.d. Web. 2 Jan. 2016. <https://www.youtube.com/watch?v=JVSpPXterd0>.