- Speculative Bubble in the Stock Market: In the 1920s, the U.S. stock market experienced rapid expansion, with share prices rising at unprecedented rates. This growth was fueled by speculative investments.
- Overproduction and Underconsumption: American industries were producing more goods than the market could consume, partly due to unequal income distribution.
- Credit Expansion and Debt: The expansion of credit and widespread use of debt created a fragile financial situation in the U.S.
- Agricultural Sector Distress: American farmers were struggling due to overproduction and falling agricultural prices, reducing their incomes.
- Banking Weaknesses: Many banks had invested heavily in the stock market or loaned money to stock speculators, leading to significant losses when the market crashed.
- Global Economic Problems: Europe's economic struggles post-World War I and high U.S. tariffs hindered international trade.
- Stock Market Crash - Black Tuesday: The crash on October 29, 1929, signaled the beginning of the Great Depression, though it was not the sole cause.
- Psychological Impact: The crash damaged investor confidence, leading to panic and massive bank withdrawals.
- Lack of Government Intervention: Initially, inadequate governmental and Federal Reserve responses exacerbated the crisis.
- Dust Bowl: The Dust Bowl of the 1930s devastated American and Canadian prairies, worsening the economic situation.
- Herbert Hoover (8 min video).
- Great Depression (7 video documentary playlist).
- The Great American Depression 1929 – 1939 (6 hour documentary)----MAKING THE GREAT DEPRESSION FOR PUBLIC TELEVISION: NOTES ON COLLABORATION WITH DOCUMENTARY FILMMAKERS
- How Henry Ford, Who Published Racist Diatribes Against Jazz, Helped Popularize the Sound of Jazz and R&B.
- Harry Bennett.
- The Ford Motor Company and The Third Reich.
- INTRIGUE AND TYRANNY IN MOTOR CITY.
- Peter Thiel is to Trump What Henry Ford was to Hitler.
- March 7, 1932: Hunger March Against Ford Motors.
Ford
- March 7, 1932: Hunger March Against Ford Motors.
- Charles “Pretty Boy” Floyd — Robin Hood of the Cookson Hills.
- John Steinbeck's 'Grapes of Wrath'.
Depression in rural America
Route 66 in the depression 
Dustbowl -
Sharecropping: Sharecropping was a system of agriculture that was common in the Southern United States from the end of the Civil War until the mid-20th century. Under this system, a farmer (the sharecropper) worked a portion of another person's land (the landowner) and paid rent with a share of the crops that were produced. Sharecropping was often seen as a form of debt peonage, as sharecroppers were often trapped in a cycle of poverty and debt. They were typically forced to buy their supplies from the landowner at inflated prices and were often charged high interest rates on loans. As a result, many sharecroppers were never able to save enough money to buy their own land and escape the cycle of poverty. Link.
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Bonus Army: The Bonus Army was a group of approximately 43,000 World War I veterans who marched on Washington, D.C., in the summer of 1932. The veterans were demanding early payment of a bonus that had been promised to them by Congress in 1924. The bonus was originally scheduled to be paid in 1945, but the veterans argued that they needed the money immediately to help them cope with the economic hardships of the Great Depression. President Herbert Hoover refused to meet with the veterans and ordered the army to disperse them. On July 28, 1932, the army used tear gas and tanks to drive the veterans out of their camp. The incident, which became known as the "Bonus Riot," further damaged Hoover's reputation and contributed to his defeat in the 1932 presidential election. Link.
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Hoovervilles: Hoovervilles were shantytowns that sprang up during the Great Depression. They were named after President Herbert Hoover, who was widely blamed for the economic crisis. Hoovervilles were typically located on the outskirts of cities and were made up of shacks and tents. The people who lived in Hoovervilles were often unemployed and homeless. They struggled to find food and shelter and often relied on government handouts or charity to survive. Hoovervilles were a symbol of the widespread poverty and suffering that occurred during the Great Depression. Link .
- Fiorello LaGuardia (1882 - 1947).
LaGuardia and Moses - "Don't Buy Where You Can't Work".
National Negro Congress demonstration, Brooklyn, New York, 1940s - A brief history of Harlem.
- Upton Sinclair's Campaign in California. In 1934, Upton Sinclair, an author and socialist, launched the "End Poverty in California" (EPIC) campaign as he ran for governor. His radical proposals aimed to address the Great Depression's impact through cooperative ventures for the unemployed, progressive taxation, and expanded social welfare programs, marking a significant moment in California's political history.
- When Black and White Tenant Farmers Joined Together to Take on the Plantation South.
- Southern Tenant Farmers’ Union: Black and White Unite?. In the 1930s, amidst the economic ravages of the Great Depression, the Southern Tenant Farmers' Union (STFU) emerged as a beacon of racial unity, bringing together black and white tenant farmers to challenge the exploitative plantation system of the South. This unprecedented alliance aimed to address the dire poverty and unjust sharecropping system, advocating for fair wages, better working conditions, and a more equitable distribution of land. The STFU's efforts marked a significant, though often overlooked, chapter in the struggle for both labor rights and racial justice in America's agricultural heartland. The Southern Tenant Farmers' Union's progressive push for equality and labor rights met fierce resistance, with landowners employing intimidation tactics to quash the movement. Sharecroppers who dared to join the union faced evictions, violence, and economic blacklisting, efforts aimed at preserving the status quo of racial and economic oppression. This harsh backlash not only highlighted the deep-seated fear among the elite of any challenge to their authority but also underscored the bravery of those tenant farmers, both black and white, who stood united against such intimidation in their fight for justice and equitable treatment.
- Company Towns (1880-1935). Company towns were communities built and owned by single companies primarily between the 1890s and 1935. They housed workers and their families close to the factory or mine where they worked. By 1917, there were over 1,000 company towns across the United States. They provided housing, churches, schools, stores, libraries, and other services to meet basic needs of residents. While companies aimed to control costs and labor, living conditions in company towns varied. Some were well-designed and provided quality housing and amenities. Others were more exploitative and lacked necessary services or controlled residents' private lives. Labor unions increasingly opposed company towns as restrictive of workers' freedom and livelihoods not connected to a single employer. Government regulation also grew around issues like monopoly control, poor living standards, and lack of local autonomy. By the 1930s, most company towns declined as Americans valued more independent living arrangements. Remaining company towns integrated more with surrounding communities or reorganized housing/property ownership. But the model influenced later planned industrial/residential developments.
- 1935 passage of the Wagner Act. The Wagner Act, also known as the National Labor Relations Act, was passed in 1935 establishing the right of workers to organize labor unions and engage in collective bargaining. It protected union activities like strikes and established the National Labor Relations Board to oversee labor relations. The act marked a major victory for organized labor in the U.S.
- 1937 steel riots. The 1937 steel riots, often referred to as the ""Little Steel Strike,"" were a pivotal event in American labor history, marking a significant confrontation between labor unions and steel companies. The context of these riots lies in the broader struggle for workers' rights during the 1930s, a time when the American labor movement sought to secure better wages, working conditions, and the right to collective bargaining amid the economic challenges of the Great Depression. The strike was initiated by the Steel Workers Organizing Committee (SWOC), part of the Congress of Industrial Organizations (CIO), targeting smaller steel manufacturers collectively known as ""Little Steel"" because they were not part of U.S. Steel, which had already signed a labor agreement with the union. The confrontation escalated in several locations, most notably in Chicago, where the Memorial Day Massacre at Republic Steel became a tragic highlight of the strike. On May 30, 1937, a peaceful demonstration by strikers and their families was met with violent suppression by police, resulting in ten deaths and numerous injuries. The outcome of the Little Steel Strike was mixed; while it failed to secure immediate union recognition and contracts from the Little Steel companies, it marked a significant moment in the labor movement, drawing national attention to the plight of industrial workers and contributing to future labor legislation. The strike underscored the need for federal protection for workers' rights to organize and bargain collectively, which would be further addressed in subsequent labor laws.
- When Joe Louis fought Schmeling, white America enthusiastically rooted for a black man. Having defeated Primo Carnera in 1935 against the support of Italian fascist Mussolini, Joe Louis next defended his heavyweight title in 1938 in a highly anticipated rematch against Max Schmeling. Their previous fight two years prior was won by Schmeling, but now nationalist and racial tensions were heightened, as Schmeling came to represent Nazi Germany while Louis symbolized American democracy. The fight took on outsized symbolism, viewed almost as America versus Nazi Germany, as millions tuned in worldwide on radio. Germans hoped for an Aryan victory from Schmeling, while African Americans saw Louis as a chance to prove their worth. In an unprecedented shift, many white Americans rooted for Louis over the white Schmeling.
- History of Lynching in America. Lynching originated in the late 18th century as a form of extrajudicial punishment for criminal suspects, particularly in the South. It was often carried out without due process by mobs or vigilantes. Between 1880-1930, around 4,700 lynchings took place in the U.S., mostly in southern states. The majority of victims were African Americans, often for alleged ""crimes"" against white people. During Reconstruction after the Civil War, lynching escalated as a backlash to expanding Black civil rights. It was used to terrorize Blacks and suppress their economic and political power. Photographs of lynchings were often made into postcards that were distributed as entertainment. The festive, picnic-like atmosphere made lynching a form of public entertainment. Peaking in the 1890s, lynchings were defended as necessary to maintain white supremacy and racial dominance. Few perpetrators faced prosecution due to indifference or complicity of local authorities. It took the broader fight for civil rights in the mid-20th century before lynching significantly declined. Federal anti-lynching bills failed to pass due to Southern opposition. Lynching had long-lasting psychological impacts by instilling fear in Black communities and normalizing racial violence in American culture and history. Its legacy continues to affect race relations today.
- WAGNER-ROGERS BILL. The 1939 Wagner-Rogers Bill is the common name for two identical congressional bills (one in the US House of Representatives and one in the US Senate) that proposed admitting 20,000 German refugee children to the United States outside of immigration quotas. Despite congressional hearings and public debate in the spring of 1939, the bills never came to a vote.
- Wagner Orphan Bill Documents.
- Denied A Stage, She Sang For A Nation. At 42, contralto Marian Anderson was famous in Europe and the U.S., but she had never faced such an enormous crowd. There were 75,000 people in the audience that day, and she was terrified. Later, she wrote: "I could not run away from this situation. If I had anything to offer, I would have to do so now."
- Recession of 1937–38. Following several years of economic recovery after President Roosevelt implemented the New Deal, the American economy suddenly declined in mid-1937, resulting in a double-dip recession that lasted until mid-1938. Industrial production plunged more than 30% and unemployment rose from 14.3% to over 19%. This second recession was unexpected and destabilized the business confidence that had been returning. Higher taxes aimed at reducing the deficit contributed to the downturn, as did FDR's decision to cut federal spending levels in 1937 prematurely. The Depression underscored that the economic recovery was still fragile and it wasn't until massive spending for World War II that the labor market fully recovered.
There is no way like the American Way -
Roosevelt Policies: 1st Term New Deal Key Dates
March 4, 1933: Franklin D. Roosevelt is inaugurated as President of the United States.
March 9, 1933: Roosevelt declares a bank holiday, closing all banks in the United States.
March 12, 1933: Congress passes the Emergency Banking Act, which reopens the banks and creates the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits.
April 19, 1933: Roosevelt establishes the Civilian Conservation Corps (CCC), a program that employed young men in conservation projects.
May 12, 1933: Congress passes the Agricultural Adjustment Act (AAA), which aimed to raise agricultural prices by paying farmers to reduce their production.
June 16, 1933: Roosevelt signs the National Industrial Recovery Act (NIRA), which established the National Recovery Administration (NRA) to regulate industry and set prices and wages.
November 7, 1933: The Tennessee Valley Authority (TVA) is created to develop the Tennessee River Valley and provide flood control, electricity, and economic development to the region.
December 5, 1933: Roosevelt signs the Civil Works Administration (CWA) Act, which created a temporary jobs program for unemployed workers.
January 30, 1934: Congress passes the Gold Reserve Act, which devalues the dollar and raises the price of gold.
June 27, 1934: Congress passes the Securities Exchange Act, which regulates the stock market and creates the Securities and Exchange Commission (SEC).
August 14, 1935: Congress passes the Social Security Act, which establishes a system of social insurance for the elderly, unemployed, and disabled.
Global Economic Impact
The Depression quickly spread to other parts of the world, severely impacting economies in Europe, Asia, Latin America, and other regions.- 1929-1931 - Depression (video documentary).
- Britain's abandoning of the gold standard
- Great Britain's decision to abandon the gold standard in 1931 was a significant economic event during the Great Depression.
- This move marked a departure from the traditional system where the value of a currency was directly linked to gold.
- The decision was driven by a variety of factors including the economic pressures of the Great Depression, the need to stimulate the economy through monetary policy, and the desire to avoid deflation.
- Abandoning the gold standard allowed the British government more control over its currency and interest rates, which was seen as essential in addressing the economic challenges of the era.
- This action had widespread global implications, influencing other countries' policies and contributing to the shift towards more managed monetary systems.
- France: Recovering from World War I, faced economic struggles with declining industrial production and rising unemployment, leading to political instability.
- Spain: Experiencing deep political and social unrest, leading to the establishment of the Second Spanish Republic with significant reforms.
- Italy: Under Mussolini's regime, focused on autarky and militarization, with increased propaganda and suppression of dissent.
- UK: Abandoned the gold standard to stimulate the economy, amidst high unemployment and social distress.
- Japan: Faced severe economic challenges, exacerbating political tensions, and pursued aggressive military expansion.
- In lockstep with the economic misfortunes, there was an emerging fear of international communism during the 1930s, often referred to as the "Red Scare," was a significant political and cultural phenomenon in various parts of the world, particularly in the United States and Europe. This period was marked by heightened suspicions, fear of communist influence, and a range of government actions against suspected communists and sympathizers.
WH Auden 1930 Depression in US
Deflationary Spiral
A deflationary spiral occurred, with falling prices leading to reduced consumer spending and further declines in production and employment.Global Trade Decline
International trade fell dramatically, partly due to protectionist policies like high tariffs, exacerbating the global economic downturn.Political Consequences
The economic hardships of the Depression contributed to political instability and the rise of extremist political movements, including fascism in Europe.Social Impact
The Depression had profound social effects, including widespread poverty, hunger, and homelessness. It also led to significant changes in societal attitudes and policies towards welfare and economic intervention.New Economic Policies
The Depression prompted governments to adopt new economic policies, including Keynesian economics, which advocated for increased government spending to stimulate demand.- John Maynard Keynes.
- Deficit spending is a central concept in Keynesian economics, involving government expenditures that exceed revenue.
- This approach is used particularly during economic downturns to stimulate economic activity.
- It includes increasing government spending or reducing taxes to boost demand.
- This strategy aims to counteract the reduced spending in the private sector, thereby stimulating economic growth and reducing unemployment.
- The rationale is that these short-term deficits will be balanced by the increased economic activity and subsequent tax revenues over time.
Path to Recovery
Different nations recovered at different rates, with the U.S. seeing significant recovery with the New Deal policies of President Franklin D. Roosevelt, while World War II played a major role in ending the Depression in many countries.