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1. What did the American president do to try to relieve the Great Depression in America?

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1. What did the American president do to try to relieve the Great Depression in America?

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American presidents tried their best to relieve the depression in many different ways. One of the major causes of the Great Depression was the stock market crash. So, In the following November, Herbert Hoover, in order to prevent widespread panic about the economy, “summoned business leaders to the White House and secured promises from them to maintain wages”(The Great Depression). This was because Hoover believed that financial losses should affect profits, not employment, which maintained consumer and shortened the downturn. To stimulate employment, he received money to start new construction and repairs in 1930 and ordered current projects to speed up work. However, when 1930 came around, people still cut back their spending which led to manufacturers and companies to reduce output and lay off workers, worsening the situation. Yet, by 1931, things were improving because of Hoover’s request for the increase of Federal Reserve Credit among some other things. Unfortunately, Europe shook America’s economy, which meant more layoffs. To combat this, PECE was reorganized as the President’s Organization on Unemployment Relief, which, “expanded on PECE's work but also implemented a national fund drive for unemployment relief”. Although the fundraised millions of dollars, unemployment reached record levels. Due to this Hoover was criticized for every program he proposed.

With Herbert Hoover’s public opinion going sour, presidential candidate, Franklin D. Roosevelt’s optimism and hope along with his “New Deal” helped him win the presidential election in November 1932. In his inaugural address, he described his plans:

Our greatest primary task is to put people to work… Hand in hand with this we must frankly recognize the overbalance of population in our industrial centers… endeavor to provide a better use of the land for those best fitted for the land… there must be a strict supervision of all banking and credits and investments; there must be an end to speculation[investing in stocks in hope of gain but with the risk of loss] with other people’s money, and there is provision for an adequate but sound currency.”(FDR's First Inaugural Address Declaring 'War' on the Great Depression)

His speech turned into plans to solve agricultural relief, Prohibition, unemployment, and old-age insurance. However, the depression still lasted for seven more years, despite his plans, although when World War II hit and it stimulated the economy because of increased demand for commodities and war materials.

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2. How did the Great Depression Affect the World?

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2. How did the Great Depression Affect the World?

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The Great Depression was a global economic crisis that originated from events prior to World War II, mostly due to the stock market crash of the United States. The international gold standard had to be dropped because gold resources were depleting, which led to many countries to cease the gold standard. Most countries had to rebuild their government system and turn inwards to resolve the economic issue. For example, the article The Great Depression and U.S. Foreign Policy states that, “rebuilding the U.S. economy and dealing with widespread unemployment and social dislocation at home and as a result international affairs took a back seat” (Great Depression). The United States answer to the Great Depression was to isolate themselves from international issues and pay attention to their own matters since the United States was greatly impacted by the Great Depression after the stock market crash. This choice, however, did help the United States build their economy up again, but it had major downsides: World War II had started and the United States were too focused on themselves to prevent Germany from taking militaristic control. Germany and Japan were slowly coming out of the Depression and used the Depression as an advantage to reshape their government into a militaristic-run country and introducing fascism to their nation. They believed their ways of ruling would end the economic struggle and expand their nation.

Many countries around the world had operated on the gold standard. This system converted units of money to gold, for example, a dollar in the United States was equivalent to 23.8 strains of gold. Although the gold standard was useful with conversions, the world was struggling from lack of money and worrying about gold was just another burden they had put on themselves. Britain is one example of these economically struggling countries. They had to drop the gold standard from their country first because their gold was being depleted quickly by France. In the Chicago Daily Tribune 1933 newspaper, William Shinnick even announces, “On the face of things, it appears that Britain has been better off with a managed currency that it would have been with a gold standard” (Gold Standard). It was not only Britain who had been enduring through the gold standard, but also most countries in the world because global financial difficulties in one country will affect another. Because the Depression was underway, this act of disbanding the gold standard temporarily became crucial as economic struggles increased within countries.

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3. How did the Great Depression start in the United States?

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3. How did the Great Depression start in the United States?

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The Great Depression stemmed from multiple different sources, but the one with the most impact was the stock market crash on October 29, 1929, which was known as Black Tuesday. Months before the New York stock exchange crashed, the heightened economy was flourishing and stock prices were rising greatly as an increasing number of businesses put their savings into stocks. However, the stock prices began to fluctuate and rapidly decline at the same rate of unemployment, lower consumer activity, a lower supply of food, and debt. With all these factors, it was inevitable that the stock market would crash. The president’s secretary had sent a White House telegram to the president five hours after the crash, saying that “Mr. Rand states that conditions are very serious and if exist for day or two longer as they have for past few days, will result in ruining millions of business people. States reaction not alone in New York, but all over the Country” (Lawrence Richey). With the crash of the stock market, businesses began to fall. Because the country was already suffering from a bad economy before the crash, the consequences were much more serious than imagined. All those faithful supporters of the stock market lost all their savings and millions of people across the nation fell into serious debt from having too much invested in the stocks. With all these aspects of a bad economy, it led to a severe economic decline, the Great Depression, in the United States.

Although the stock market crash had the major role in the Great Depression, it could have been prevented if it were not for certain events leading into the crash and the depression.

While not a direct contributor to the start of the Great Depression, agricultural problems contributed to the disaster during that period. First of all, adding to the homeless people in the streets were farmers who couldn’t afford to harvest their crops. Fields were left to rot and with out those crops people everywhere starved. This is all due to the severe drought that hit the Midwest and Southern Great Plains in 1930. The massive dust storms began plaguing those lands in 1931, which was followed by a series of drought years. By 1934, especially because the cultivated land had no irrigation systems, “35 million acres of formerly cultivated land had been rendered useless for farming, while another 125 million acres—an area roughly three-quarters the size of Texas—was rapidly losing its topsoil”(Dust Bowl). This period was known as the “Dust Bowl”during this time people migrated from farmland to cities in order to find work. Unfortunately, this only worsened the problem. One example of this happened in California, the Oakland Tribune stated, “Thousands of ‘Dust Bowl’ migratory workers are roaming California, destitute and hunting jobs that do not exist” (Warren). The same article also describes a similar situation in Arizona.

All in all, with the stock market crash, Americans faced the consequences of the already terrible economy and it got the ball rolling for the Great Depression. Happening soon after, was the Dust Bowl, which only added to existing issues.

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Google Doc: https://docs.google.com/document/d/1EUc7h0F-OvNC5Ap2xyPCZmgpaxzegGBTS0tXGgOKh50/edit?usp=sharing
Notes
Title: FDR's First Inaugural Address Declaring 'War' on the Great DepressionAuthor(s): n/a Publication:The U.S. National Archives and Records AdministrationDate Published: n/a Source Citation (if given): URL: https://www.archives.gov/education/lessons/fdr-inaugural |
In his inaugural address, FDR declared his goal to remedy the Great Depression. To planned to solve issues such as agricultural relief, Prohibition, unemployment, and old-age insurance. Basically, he declared war on the Great depression and used his executive power in order to set up the necessary actions needed to win against it.
"I shall ask the Congress for the one remaining instrument to meet the crisis -- broad Executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe.
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Title: The Great Depression and U.S. Foreign Policy Publication: Office of the Historian Date Published: 2018 Source Citation (if given): URL: https://history.state.gov/milestones/1921-1936/great-depression |
There were multiple global factors that caused the beginning of the Great Depression, initially caused by World War I and succeeded by the re-established international gold standards. This all led to a world-wide economic crisis that the major countries all desperately tried to fix, but to no avail, as the gold standards they had established were affecting the economic markets. The United States turned to isolationism, leaving other countries to fix themselves, while militaristic ideas and fascism were occurring in Japan and Germany, eventually leading the depressed world into World War II.
“rebuilding the U.S. economy and dealing with widespread unemployment and social dislocation at home and as a result, international affairs took a back seat.” (Great Depression)
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Title: Gold Standard: What it is and how it operates Author(s): William Shinnick Publication: Chicago Daily Tribune Date Published: April 21, 1933 Source Citation (if given): URL: https://www.newspapers.com/clip/22200719/1933_newspaper_article_about_what_the/ |
The gold standard is 23.8 strains of gold in the United States. It is different in other places depending on how much their currency has of gold value, but gold is shipped around the world as the universal currency to pay off foreign debts. Countries were getting a gold depletion in their treasuries so the gold standard eventually ceased in a lot of different countries including Great Britain.
“On the face of things, it appears that Britain has been better off with a managed currency that it would have been with a gold standard”
“Great Britain went because the gold in the Bank of England vaults was being drained out, particularly by French withdrawals”
“But it is no longer possible to get gold from the treasury for domestic purposes and none may be shipped abroad”
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Author: Lawrence Richey Publication Date: October 29, 1929 |
Lawrence Richey, the secretary of President Hoover, writes in his telegram to Hoover informing Hoover about how the stock markets are declining. If these markets do not revert back to normal within a given time frame, then the impact of the stock market crash will affect the whole nation, not just New York.
"Mr. Rand states that conditions are very serious and if exist for day or two longer as they have for past few days, will result in ruining millions of business people. States reaction not alone in New York, but all over the Country"
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Title: The Great Depression Author(s): n/a Publication: National Archives and Records Administration Date Published: n/a Source Citation (if given):

URL: https://hoover.archives.gov/exhibits/great-depression |

When the Great Depression hit during Hubert Hoover’s presidency, he tried to relieve the crisis with projects among some other things. Unfortunately, unsuccessful results made him lose public opinion and in the next election, FDR won. Though despite FDR’s efforts the great depression lasted for another  7 years, it ended due to World War II.
“summoned business leaders to the White House and secured promises from them to maintain wages”

“The national fund drive raised millions of dollars but proved to be woefully inadequate as unemployment soared to record levels. Hoover was criticized for almost every program he proposed.”

“Despite all the efforts of Roosevelt's "New Deal," the Depression persisted seven more years, until World War II stimulated the economy with increased demand for commodities and war materials.”

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Title: “40,000 Farm Hands Aided” Author(s): Walter Warren Publication: Oakland Tribune Date Published: April 8, 1938 Source Citation (if given):

URL: https://www.newspapers.com/clip/22200371/former_farmers_now_migrants_in/ |

Jobless Dust Bowl Migrants in Arizona and California had to get relief/federal money from the government.
“Thousands of ‘Dust Bowl’ migratory workers are roaming California, destitute and hunting jobs that do not exist”

“Arizona, where jobless workers remain after finishing the cotton harvest. Garst said some 40,000 persons had been given federal money in the last two months.”

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Title: Dust Bowl Author(s): History.com Editors Publication: A&E Television Networks Date Published: October 29, 2009 Source Citation (if given):

URL: https://www.history.com/topics/great-depression/dust-bowl |

The Dust Bowl, which had many causes, was a series of severe droughts and dust storms. This rendered massive amounts of cultivated land useless during that period.
"35 million acres of formerly cultivated land had been rendered useless for farming, while another 125 million acres—an area roughly three-quarters the size of Texas—was rapidly losing its topsoil"
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Works Cited

“Dust Bowl”. History, A&E Television Networks, 27 Oct. 2009, history.com/topics/great-depression/dust-bowl. Accessed 22 Oct. 2019.

“FDR's First Inaugural Address Declaring 'War' on the Great Depression.” The U.S. National Archives and Records Administration. www.archives.gov/education/lessons/fdr-inaugural, Accessed 21 Oct. 2019.

Richey, Lawrence. White House, 29 Oct. 1929, Accessed 22 Oct. 2019.

Shinnick, William.“ Gold Standard: What it is and how it operates” Chicago Daily Tribune, 21 April 1933, p.3.

“The Great Depression” Herbert Hoover Presidential Library and Museum, National Archives and Records Administration, hoover.archives.gov/exhibits/great-depression. Accessed 21 Oct. 2019.

“The Great Depression and the U.S. Foreign Policy.” Office of the Historian. United States Department of State, 2018, history.state.gov/milestones/1921-1936/great-depression. Accessed 20 Oct. 2019.

Warren, Walter. “40,000 Farm hands Aided.”Oakland Tribune, 8 Apr. 1938, p. D21.