"Isolationism" and FDR (1935 - 1941)

Read pages 13-26 in U.S. Isolationism - Part II

1. What were the goals of the isolationists? Why is "isolationism" a misleading term?

Isolationists thought that it was more important to focus on problems in America than to get involved with struggles overseas. The name implies that they believed that America should isolate themselves from other countries, but many isolationists supported international trade. Most also supported the international laws put im place after WWI. The main goal of isolationists was to stay out of war and preserve peace. They believed that the way to do this was to remain nuetral in other country's conflicts. They did not want to compromise American

interests.

2. What did some isolationists feel that there was no need for Americans to feel threatened by developments in Europe and Asia?

The believed that the Pacific and Atlantic oceans protected the U.S. from other countries. They were on good terms with hall other countries in the wester hemisphere.

3. What were the purposes of the Nye Committee hearings?
The Nye Committee was a committe to investigate the reasons why the U.S. entered WWI. Nye believed that if everyone knew why we entered that war, we could avoid being involved with another war overseas. The hearings of the committe made many americans think that the U.S. went to war because coporations looking for money convinced President Wislon. This increased the isolationist mood in the U.S.

4. List two impressions that the Nye Committee hearings created.
-That corporations looking for money convinced President Wislon to go to war.

-It influenced congress and the U.S. declared itself a "neutral" country between 1914 and 1917

5. What were the purposes of the Neutrality Acts?

The Neutrality Acts were made to prevent the U.S. from supplying one side or another during war.

6. List two reasons that some Americans considered Roosevelt's leadership radical and dangerous.

-They worried about an intrusive government

-They worried about an overly powerful presidency

7. What was "Cash and Carry"?
"Cash and Carry" was part of the Neutrality Act of 1939. This meant that the U.S. could sell things to belligerents as long as they payed for what they were given and took the supplies back themselves.

8. Why did President Roosevelt freeze Japanese assets in the United States?
President Roosevelt thought he could stop further aggression from Japan by prohibiting the sale of fuel and scrap metal to them. This had the opposite effect and Japan invaded northern French Indochina. When this happened, President Rooselevet had to freeze Japan's assets in the U.S. which meant that they couldn't use investments or money they had in the U.S.

9. What was the purpose of the America First Committee?

The American First Committee was made to keep the U.S. out of war.

World Events Set Stage for Isolationism

1. What was the Japanese reaction to the Treaty of Versailles? (pgs. 4 - 5)
Some people in Japan believed that their country should engage the great powers and support the international system to obtain the natural resources and markets that Japan's growing economy needed. Others believed that the great powers (especially Britain, France and The U.S.) would never treat Japan with respect. Some worried that the League of Nations would be used to keep Japan as a second tier power. Japan opposed the Treaty and the League. Since the amendment didn't pass, the Japanese turned away from the West and toward a more nationalist stance.

2. Read the pull-out box on page 4 entitled, "Japan Becomes a Great Power." Cite specific evidence Japan was becoming a strong power that rivaled European & American interests. And, why specifically was Japan threatened by U.S. actions?

Japan's economy was rapidly growing and their political and military power were increasing which made it a large financial contributor to the proposed League of Nations. Japan modeled its navy on Britain's, its banking system on the U.S.'s, and its army and constitution on Prussia's. Manufacturing and mining increased and also the goods and services provided by Japan increased. Some people thought that Japan was relying too much on the military and others thought that Japan would need to use its military strength to achieve its goals. When Japan defeated Russia in the Russo-Japanese War, it gained access to parts of Manchuria. Japan annexed Korea in 1910 and then in 1914, Japan declared war against Germany. Japan wanted to expand into China, but Britain and the U.S. thought that this would interfere with their interests. In Japans view, the U.S. was posing a threat to their own plans for expansion when they were increasing their presence in the Pacific.

3. Why was the Washington Naval Conference convened and what was accomplished? (pg. 6) (Note: Japan signs the agreement.)

The conference was called because Japan's growth as a naval power in the Pacific threatened U.S. interests. People at the conference wanted to limit a naval arms race and to discuss issues related to the nations of the Pacific Ocean and the Far East. The parties agreed to limit the size of the naval ships, placed a temporary prohibition on building new battleships, outlawed the use of poison gas, and limited the role of submarines in future wars. The nations signed an agreement affirming China's sovereignty and establishing a policy of open trade with China. They also agreed to address disputes over issues in the Pacific.

4. The Senate's willingness to ratify the Kellogg-Briand Pact relected two strong and widely held sentiments. What were they? (pgs. 6 - 7)
The Pact was a treaty between the U.S. and France that made war between them illegal. Later 62 nations signed it. Americans remembered the deaths of WWI and wanted to avoid being dragged into another European war. Also, policy makers continued to resist the obligations of permanent alliances and wished to preserve the ability to act when and where they wanted.

5. Why did Hitler enjoy popular support in Germany for most of the 1930s? Give three reasons. (pgs. 9 - 10)
He improved the economy and reduced unemployment and restored national pride for Germans that were still humiliated by the defeat in WWI and by how poor they had become. Hitler used his power to pass legislation that enabled him to enact laws without the approval of the president or parliament. He quickly put the Nazi government in control and took away freedoms guaranteed by the German constitution.

6. Japan voiced its intentions to invade China for what two reasons? (pg. 10)

Japanese military leaders voiced intentions to invade China to obtain raw materials and increase Japan's power.

7. Compare the Reichstag fire and the explosion on the Japanese railway in Manchuria. What did they accomplish?

Some people think that the Japans bombed their own railway so they could blame it on the Chinese and use it as an excuse to invade, like the Reichstag fire in Germany.

8. Why was the united States unable to oppose Japan in the early 1930s with a significant military force? (pgs. 11 - 12)

The U.S. had drastically reduced the size of its military since WWI and was not prepared to fight back. Also, Japan began to violate the treaties it had signed.

9. Describe the major similarities and differences among liberal democracy, fascism, and socialism. (pg. 8)

Liberal democracies have a constitution, with elected representatives whose decision making is regulated by a rule of law that emphasizes the rights and freedoms of individuals. Fascism puts the economy under government control and emphasizes the control of state over the individual. Socialism hoped to create a classless society, which included dismantling the capitalist economic system by having the state own land, factories etc. Fascism and socialism are both two extremes of the political spectrum. Liberal democracy is socialism at a lower level.

New Deal Essay Outline

How, and with what success, did the United States government try to solve the problems caused by the Great Depression?
Thesis: The government and Franklin Delano Roosevelt tried to solve the problems caused by the Great Depression by making programs through the New Deal to help certain issues and promote relief, recovery and reform. Some programs and acts in each of these categories were successful, and some weren’t.

I. Relief

a. Emergency Banking Act-effective, people gained trust in the banks again

b. Federal Deposit Insurance Corporation-also helped people gain trust in the banks and they felt safe depositing their money

c. Federal Emergency Relief Administration (and the Civil Works Admin.)

Somewhat successful- there were immediate results that provided trust in the banks and made some jobs that had limited long-term benefits. The FERA and the CWA spent a lot of money that added to the country’s debt.

II. Recovery

a. National Recovery Administration-not successful, ruled unconstitutional because there was too much government control of free market

b. Tennessee Valley Authority-successful, government was the mediator between the states and built damns which provided the area with jobs and electricity.

c. Social Security Act-Important and successful in the long run

III. Reform

a. Agriculture Adjustment Administration-somewhat successful, Improvements in agriculture. Limitations-declared unconstitutional because it was inhumane to kill livestock the way they did.

b. Securities Exchange Commission-regulated stock market, effective because it restored confidence in the stock market.

c. Civilian Conservation Corps-effective, jobs for people and also conservation

d. Public Works Administration-successful, provided jobs

IV. Counter Argument- Huey Long and Father Coughlin

a. They thought that the New Deal was too complicated and wasn’t realistic

b. They were opposed to F.D.R. packing the court-he would essentially be taking over government if he packed the Supreme Court.

c. Long’s Share The Wealth Program

d. Government getting too involved with everything

FDR & the New Deal 22.2 and 23.1

22-2:

1. Describe how people struggled to survive during the depression.
-There were deadly dust storms that people in the middle of the country had to survive.

-In cities people lost their jobs, were kicked out of their homes and had to live on the streets. Shantytowns, small towns with many shacks made out of scrap material that homeless people made, were common. Soup kitchens and bread lines offered poor people food for little money. African Americans and Latinos were increasingly being discriminated against, and there was a lot of racial violence. Mexicans in the southwest were being deported, even though many had been born in America.

-In rural areas most farmers could grow food for their families. But with falling prices and rising debt, many farmers lost their land.

2. How was what happened to men during the Great Depression different from what happened to women? Children?

-Many men were used to having a job to support their families so when they lost their jobs during the Great Depression, they didn't know what to do. Some left their families.

-Women worked hard to help their families. Many women canned food and sewed clothes. They also managed household budgets. Many had jobs but a lot of people thought that women shouldn't work when there were unemployed men. Many women were too ashamed to reveal their hardship and refused to beg.

-Children's poor diets and lack of health care led to serious health problems. The school year was shortened and some schools were closed. Many children worked in sweatshops instead of going to school. Some teenagers traveled around the country looking for work and adventure. This was dangerous and many of them were beaten or jailed by freight yard patrolmen.

3. Describe the causes and effects (on people) because of the Dust Bowl.
The Dust Bowl (Kansas, Oklahoma, Texas, New Mexico and Colorado) was caused because farmers had used tractors to prepare the grasslands for crops. This had removed the thick protective layer of prairie grasses and then the farmers ruined the land through overproduction of crops. In the early 1930s a drought and winds caused big dust storms because there wasn't any grass or trees to hold the soil down. The dust traveled hundreds of miles.

Because of the Dust Bowl, thousands of farmers left their land behind and headed to California. Some of them found work as farmhands but many didn't find work.

23-1 through page 696:

Objective: Summarize the initial steps Franklin D. Roosevelt took to reform banking and finance.
4. What was the New Deal and its three general goals? (The 3 Rs)
The New Deal was a program that FDR designed to alleviate the problems of the Great Depression, specifically relief for the needy, economic recovery, and financial reform.

5. What did Roosevelt do during the Hundred Days?
Congress passed more than 15 major pieces of New Deal legislation. These laws expanded the federal government's role in the nation's economy.

Roosevelt declared a bank holiday to prevent further withdrawals. He persuaded congress to pass the Emergency Banking Relief Act which authorized the Treasury Department to inspect the country's banks. The ones that were stable reopened and the ones that were unable to pay their debts stayed closed.

6. Why were Roosevelt's fireside chats significant?
FDR's fireside chats were important because they made Americans feel as if the president were talking directly to them and explained the New Deal measures in simple language. This brought the country closer together because the average American could get direct information about what was happening with the country.

7. Describe four significant agencies and/or bills that tightened regulation of banking and finance.

The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation which provided federal insurance for individual bank accounts, reassuring millions of bank customers that their money was safe.

The Federal Securities Act of 1933 required corporations to provide complete information on all stock offerings and made them liable for any misrepresentations.

In June of 1934, Congress created the Securities and Exchange Commission to regulate the stock market. One goal of this commission was to prevent people with inside information about companies from rigging the stock market for their own profit.

Causes of the Great Depression Outline

Pretend you are getting ready to write a mini-essay (P1 Q#4) Create a thesis statement from the following prompt and THEN develop an outline of your main points and evidence that supports your main points. Your main points should directly relate to your thesis statement.
Prompt: To what extent was the Wall Street Crash a cause of the Great Depression of 1929? Support your argument with specific examples.

Thesis: The Wall Street Crash was not a major cause of the Great Depression as there were many other factors that contributed equally if not more, such as consumers purchasing less, an unequal distribution of income and a crisis in the farm sector.

I.The Wall Street Crash

a.the Wall Street Crash was caused by other, more important things

b.it was a cycle of events and many other factors contributed more to the Great Depression

II. Consumers Purchasing Less
a. availability of credit
b. the stock market crash
III. An Unequal Distribution of Income

a.more and more people losing their jobs and aren't able to live off of their income

b.these people are not helping the economy

IV.Crisis in the Farm Sector

a.farmers bought a lot of land during WWI because demand was high, now demand is low because consumers are purchasing less, high supply and low demand

b.it took more money to make the products than the farmers received from people purchasing them

Conclusion

Causes & Early Effects of the Great Depression-22-1&2

22-1-The Nations Economy

1. What happened on "Black Tuesday"?
On October 29th, Black Tuesday, the bottom fell out of the market and the nations confidence collapsed.

2. How did the economic trends of the 1920s in industry, agriculture, and with consumers help cause the Great Depression?

-Industries like railroads, textiles and steel were making little profit. Railroads lost business to new forms of transportation like trucks, buses and private automobiles. Mining and lumbering were no longer in high demand. Coal mining was no longer as important since there were other forms of energy becoming popular such as hydroelectric power, fuel oil and natural gas. An important economic indicator that declined during this time was the number of new houses being built was declining. When this happens, many people's jobs are hurt such as furniture making and lumbering.

-During WWI, prices rose and international demand for crops like wheat and corn rose. After the war, demand fell and crop prices declined by more than 40%. Farmers though that producing more crops would sell more, but this depressed prices further. Farm income dropped from $10 billion to $4 billion from 1919-1921. Farmers in debt had difficulty paying it off, causing many rural banks to begin to fail. Congress tried to help with the McNary-Haugen bill which called for federal price-supports for key products like corn, wheat, cotton and tobacco. This meant that the government would buy surplus crops at guaranteed prices and sell them on the world market. President Coolidge vetoed the bill twice.

-Consumers have less money to spend. Their incomes fell and prices rose so they bought fewer things. There was an uneven distribution of income. The gap was widening between the rich and the poor because production expanded faster than wages. Half of the homes in many cities had electric lights or a furnace for heat. One city home in ten had an electric refrigerator. Most americans couldn't fully enjoy the economic advances of the 1920s. During the 1920s, credit was popular, which mean that consumers agreed to buy now and pay later. This created a lot of consumer debt.

-Many people were becoming involved with the stock market. They bought stocks and bonds without ignoring the risks and just thought they might be lucky and become rich. People were buying on margin, which meant that they payed a small percentage of a stock's price as a down payment and borrowed the rest. If the value of stocks declined, people who had bought on margin had no way of paying off the loans. In September 1929, stock priced peaked and fell. On October 24, the market plunged and panicked investors unloaded their shares. On October 29th, Black Tuesday, the bottom fell out of the market and the nations confidence collapsed. Many people were stuck with huge debts, and many others lost most of their saving. This signaled the beginning of the Great Depression (1929-1940).

3. According to your reading, what are the major causes of the Great Depression?
-The Crash of the Stock Market

-Uneven Distribution of Income

-Industries in Debt

-Consumers Having Less Money to Spend

22-3-Hoover Struggles With The Depression

4. What was Hoover’s philosophy of government?

He thought that the governments role was to encourage and facilitate cooperation between competing groups and interests in society. He opposed any form of federal welfare, or direct relief to the needy. He believed that this would weaken people's self-respect.

He thought that periods of rapid economic growth were naturally followed by periods of depression. Hoover felt that the government could play a limited role in helping to solve problems.

5. What was Hoover’s initial reaction to the stock market crash of 1929?

President Hoover tried to reassure Americans that the nation's economy was okay. He thought that the important thing was for Americans to remain optimistic and to go about their business as usual. Americans believed that this as a normal part of the business cycle. He called together key leaders in the fields of business and banking and labor and urged them to work together to find solutions. He asked the employers not to cut wages of lay off workers and asked labor leaders not to demand higher wages or go on strike.

6. What was the nation’s economic situation in 1930?

The economy was still shrinking and unemployment was still rising. Many more companies went out of business.

7. How did voters in 1930 respond to this situation?

As the country's economic difficulties kept increasing, the political tide turned against Hoover and the Republicans. Democrats won in the 1930 congressional elections.

8. What did Hoover do about the economic situation?

-The Boulder Dam (the Hoover Dam), was a dam on the Colorado River which provided electricity, flood control and a water supply.

-He negotiated agreements among private entities, reflecting his belief in a small government. He backed the creations of the Federal Farm Board which intended to raise crops prices by helping members to buy crops and keep them off the market temporarily until prices rose.

-He tried to prop up the banking system by persuading the nations largest banks to establish the National Credit Corporation which loaned money to smaller banks which helped them not go bankrupt.

-By late 1931, people could see that what he had done failed to turn the economy around, so Hoover appealed to congress to pass a series of measures to reform banking, provide mortgage relief, and funnel more federal money into business investment. In 1932, Hoover signed the Federal Home Loan Bank Act, which lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.

-The Reconstruction Finance Corporation (RFC) authorized $2 billion for emergency financing for banks, life insurance companies, railroads and other large businesses. He believed that the money would trickle down to the average citizen

9. How did the economy respond to his efforts?

The RFC loaned money to large corporations, but business failures continued. This was an example of federal involvement in a peacetime economy, but it was too late.