Hardship and Suffering During the Depression

1. What were some of Hoover's key convictions about government?        

     During the Great Depression, President Herbert Hoover tried to reassure Americans that the economy was a sound footing. He wanted Americans to remain optimistic. Many believed they should do nothing and let the economy fix itself, while Hoover believed the government could play a limited role in fixing the nation's problems. Hoover believed that one of government's chief functions was to foster cooperation between competing groups and interests in society. He believed if business and labor were in a conflict, government should step in to settle the dispute. Hoover believed the government's role was to encourage cooperation without controlling it. Hoover opposed any form of human welfare or direct relief to the needy  because of the popular American belief that people should take care of themselves without relying on the government. Instead, Hoover believed charities and organizations should help care for the less fortunate.  


2. What did President Herbert Hoover say and do in response to the Great Depression?       

     In response to the Great Depression, President Hoover asked employers not to cut wages or lay off workers while asking labor leaders not to demand higher wages or go on strike. Hoover also created special organizations to help charities generate contributions to the poor. None of Hoover's changes made much of a difference to the economy. More companies went out of business and unemployment rates continued to increase. One of Hoover's projects did make a difference however. In the fall of 1929, Hoover approved the construction of one of the worlds largest dams, the Boulder Dam. The dam later called the Hoover Dam, provided electricity, flood control, and enabled the growth of California's massive agriculture economy. 

3. Why do you think people blamed Hoover for the nation's difficulties?       

     Hoover became a scapegoat to the general public. Many Americans especially farmers were becoming more depressed and angry with the dwindling economy and blamed Hoover for the nation's difficulties. By 1930, people started calling shantytowns "Hoovervilles" as a direct insult to the president's policies. Homeless people called the newspapers they used to stay warm "Hoover blankets." Many Americans who had hailed Hoover as a great humanitarian now saw him as a heartless leader. Despite the constant criticism, Hoover refused to change his policies and stood his ground.  

4. How did Hoover's belief in "rugged individualism" shape his policies during the Great Depression.

Think About:

• what his belief implies about his view of people

• how that translates into the role of government

• Hoover’s policies (How effective were they?)       

     President Hoover believed in little government intervention. He believed the government should encourage cooperation and looked to the construction of Boulder Dam as a model of how the federal government can do just so. He attempted negotiating among private entities to promote his belief in smaller government. For example, he backed the creation of the Federal Farm Board. The Farm Board was intended to raise crop prices by helping members to buy crops. Hoover also tried persuading the nation's largest banks to establish the National Credit Corporation, loaning money to smaller banks. By late 1931, many people could see Hoover's policies weren't improving the economy. Hoover then signed into law the Federal Home Loan Bank which lowered mortgage rates for homeowners. Hoover's biggest economic measure was the Reconstruction Finance Corporation, passed by Congress in 1932. This bill authorized about 2 billion dollars for emergency financing for banks, life insurance companies, railroads, and other large businesses. Many argued that this would only benefit businesses and the poor still needed direct relief. the RFC was unprecedented example of federal involvement, however, in the end it was too little, too late. 



5. What did the Bonus Army want and how did Hoover respond?      

     The Bonus Army was made up of World War 1 veterans who came to Washington D.C to support a bill under debate in Congress. The Patman Bill authorized the government to pay a bonus to World War 1 veterans who had not been compensated adequately for their wartime services. Hoover opposed the bill believed the Bonus Army to be more like communists and criminals than veterans. Although he opposed the legislation, he respected their right to peacefully assemble and provided them with food and supplies. Hoover then ordered for the Bonus Army to leave but many stayed in hopes they would be able to meet with the president. 

6. When Franklin Delano Roosevelt heard about the attack on the Bonus Army, why was he so certain that he would defeat Hoover?

Think About:

• the American public’s impression of Hoover (See your answer to No. 3)

• Hoover’s actions to alleviate the Great Depression (see your answer to No. 4)

• how people judged Hoover after the attack.       



     When Franklin Delano Roosevelt heard about the attack on the Bonus Army, he was certain he would defeat Hoover in the upcoming election. The violent attack by the government on the veterans left Hoover's political image suffering. Many people were stunned to see such aggressiveness towards veterans. Hoover was already seen by the public in a negative way since they blamed him for the depression and not doing enough to save the economic state of the country. Hoover's inability to deal  effectively with the depression left people turning towards Franklin Roosevelt. 

Hardship and Suffering During the Depression

Employment: There were very few jobs during the Great Depression. Unemployment rates dramatically increased when the stock market crashed. The unemployment rate for African-Americans and Latinos were higher. Millions of people lost their jobs and ended up homeless living on the streets or in shantytowns. Men would set out the walk the streets everyday in search for a job. Many woman worked outside of their homes although they usually made less money than men did. As the depression moved on,  working woman became a target for resentment. Many people believed woman, especially married woman, shouldn't have the right to work when there were men who were unemployed. 


Housing: Millions of people were left homeless due to the Great Depression. They lost their jobs, were evicted from their homes, and would end up living on the streets. They found shelter where ever they could in parks or sewer pipes with nothing but newspaper to keep them warm. Some would built shacks made from scrap metal. Numerous shacks became known as Shantytowns. The poor would dig through garbage cans or begging for resources. Soup kitchens and bread lines became a common sight. 


Farming: Living in a rural area gave farmers an advantage over city life; most were able to grow food for their families. But with falling prices and rising debt, thousands of farmers lost their land through foreclosure. Many farmers turned to tenant farming and barely made a living. Thousands of farmers left their land behind due to drought and sand storms. Thousands of farm families had migrated to California and other Pacific Coast states due to the drought and lack of farm land. 



Race relations: Unemployment rates for African-Americans and Latinos were higher and they were the lowest paid. African-Americans and Latinos had to deal with racial violence from unemployed whites competing for the same jobs. Many whites felt that the Latinos should be deported or expelled from the country even though many had been born in America. By the late 1930's, thousands of people of Mexican decent left and relocated in Mexico, some were voluntary while others were deported by the federal government.   


Family life: Americans believed in traditional values and the importance of family unity especially during a time of hardship. With no money to spend many families found entertainment in staying home and playing board games, such as Monopoly, and listening to the radio. The economic difficulties put pressure on family life. Making ends meet was a daily struggle and many families broke apart. Some men became so discouraged by unemployment that they abandoned their families. Families in New York City were given $2.39 as a weekly payment from charity services.  



Physical health: During the 1930's children were suffering greatly. Due to lack of money, children had poor diets which led to serious health problems. Milk consumption decreased across the country and doctors reported a dramatic rise in malnutrition and diet related diseased such as rickets. Young boys and teenagers would hop aboard freight trains in search of work, adventure, or to escape from poverty. Many riders were beaten or jailed or accidentally locked in ice cars for days or fell pray to murderous criminals.    



Emotional health: The hardship of the Great Depression had a tremendous emotional impact. Many people were so demoralized that they lost their will to survive. Between 1928 and 1932, the suicide rate increased more than 30 percent. Three times as many people were admitted to mental hospitals compared to normal times. Many had to make huge sacrifices in order to survive. Adults stopped going to dentists and doctors because they couldn't afford it. Children gave up their dreams of going to college and couples often put off getting married or having children at all. During the Great Depression many people showed great kindness to strangers. They offered them food, clothing, or a place to rest. Families helped families which strengthened the bonds within communities.  
 


Explain or define each of the following:

 Dust bowl: The region that was hit the hardest by the drought that began in the early 1930's was called the Dust bowl. The Dust bowl included parts of Kansas, Oklahoma, Texas, New Mexico, and Colorado. 

Shantytown: Shantytowns were little towns consisting of shacks built from scrap metal during the Great Depression. People would built shacks when they lost their homes and became homeless.  


Direct Relief: During the early years of the Great Depression there was no direct relief or federal system. Direct Relief were cash payments or food provided by the government to the poor. Most cities did not offer relief to those who needed it. 

Causes of the Great Depression

1. What industrial weakness signaled a declining economy in the 1920s?    

The superficial prosperity of the late 1920s signaled a declining economy in the 1920s. Railroads, textiles, and steel which were key basic industries, hardly made a profit. New forms of transportation such as trucks, buses, and private automobiles made little use for railroads. Mining and lumbering which were in high demand during war time, were no longer in high demand. The number of new dwellings being built declined. When the housing starts fall, many industry related jobs fall as well.  

2. What did the experience of farmers and consumers at this time suggest about the health of the economy?    

     The experience of farmers and consumers at this time suggests that the health of the economy was quickly declining. Between 1919 and 1921 annual farm income declined from about 10 billion to about 4 billion. Many farmers went into dept and had difficulty paying off loans. Many farms were taken when banks foreclosed as payment for loans. By the late 1920s, many consumers were buying less due to the rising prices and unbalanced distribution of income. The gap between the rich and the poor widened dramatically. The rich got richer while the poor got poorer. 

3. How did speculation and margin buying cause stock prices to rise?    


     Speculation and margin buying caused stock prices to rise because it created unrestrained buying and selling and easy money. The government didn't stop or regulate it so the stock prices started and continued to rise. What people were paying for the stocks didn't really reflect the companies true worth. People ignored the risk of losing all their profit when they were speculating. If the stock prices dropped, they wouldn't be able to pay off their loans from margin buying.   


4. What happened to ordinary workers during the Great Depression?    

     The Great Depression left millions of people without jobs or savings accounts. Millions of people lost their savings account when the banks collapsed. Unemployment skyrocketed as millions lost their jobs. Unemployment leaped from about 3 percent in 1929 to about 25 percent in 1933. One out of every 4 workers were without a job. Those who kept their jobs reduced their work hours and were forced to accept pay cuts. 

5. How did the Great Depression affect the world economy?    

     The United States was not the only country hurt by the Great Depression. European countries faced high war debt trying to recover from Word War 1. Germany had to pay war reparations to the Allies. The Great Depression limited America's ability to import goods resulting in difficulty to sell American farm products and manufactured goods abroad. Hawley-Smoot Tariff Act which was designed to protect American farmers and manufactures from foreign competition backfired reducing the flow of goods into the United States. Many countries retaliated by raising their own tariffs. Within a few years, world trade had fallen more than 40 percent. 

Define: 

a. Price-Supports:    Government assistance in maintaining the levels of market prices regardless of supply or demand. Congress issue price supports on key products such as wheat, corn, tobacco, and cotton.

b. Credit:   an arrangement in which consumers agreed to buy now and pay later often in the form of an installment plan. Usually paid with monthly payments. 
c. Dow Jones Industrial Average:    was and is now the most widely used barometer of the stock market's health. The Dow is a measure based on the stock prices of 30 representative large firms trading on the New York Stock Exchange.

d. Speculation:   when you bought a stock or stocks and bonds on the chance of a quick profit, while ignoring the risk.

e. Buying on Margin:    paying a small percentage of a stock’s price as a down payment and borrowing the rest.


f. Black Tuesday:    On October 29, what became known as Black Tuesday was when the bottom fell out of the market and the nation's confidence. 


g. Hawley-Smoot Tariff: Congress passed the Hawley-Smoot Tariff Act in 1930. The tariff was designed to protect American farmers and manufacturers from foreign competition.  

Schenck v US (Free Speech)

1. What was Justice Holmes’ main argument  in the Court’s opinion in Schenck? Do you agree with the Court’s opinion? 

     Justice Holmes' main argument was that when words are used in such a way  that a  clear and present danger is created that they will bring about substantive evils that Congress has a right to prevent, then those words  would not be  protected by the 1st amendment. Holmes stated that speech that might be protected in ordinary times would not necessarily also be permitted during times of war by noting that war times  "when a nation is at war many things that might be said in time of peace...will not be endured." He famously observed that a man who falsely yelled "fire!" in a crowded theater, causing a panic, would not have that speech protected under the 1st Amendment. Holmes implication was the Schenk's leaflet was just as dangerous. Therefore, the speech of the leaflet was not protected. I agree with the reasoning at the time, however, I agree that there is some speech that should be restricted. However, today a leaflet criticizing the war or the draft should be in my opinion, protected by the first amendment. Except for speech such as yelling fire in a crowded theater that creates a clear immediate danger, free expression and exchange of ideas should be protected.

2. Do you think some limits on the freedom of speech are necessary? Explain. (Use your own opinion and support it using information from the reading.)       

Yes, I believe there should be some limits on the freedom of speech, however, these limits should be as minimal possible. Free speech should only be limited under very few circumstances including speech which causes an immediate, clear, and present danger (yelling fire in a crowded movie theater), or which is considered hate speech such as desecrating grave stones or churches with speech expressing hate for a particular race or religion.  

3. List three examples of the "historical impact" of the Schenck decision. 

The historical impact of the Schenck decision is that challenges to restrictions of free speech continue today. In 1965, students who were suspended from school for wearing armbands that symbolically criticized the Vietnam war challenged that suspension as a violation of their free speech. In that case, the court ordered the school to re-admit the students. In Texas V. Johnson (1989) the court over turned a law which had convicted a man who burned an American flag to symbolically protest Reagan administration policies. In the 60's and the 70's some U.S colleges instituted speech codes to discipline students for discriminatory or harassing speech. Federal courts have struck down a number of these speech codes as being too restrictive and violating the first amendment.