Hardship and Suffering During the Depression

1. What were some of Hoover's key convictions about government?        
Hoover believed in a small, limited government that had little interference with the individual. He supported the idea of "rugged individualism," thus he opposed direct relief and other forms of federal welfare. His solution to the problem of the needy was that individuals, charities, and local organizations should help them, since he didn't believe the government directly should. He also believed that one of the main functions of the government was to foster cooperation between competing groups and interests in society, but not control it. 


2. What did President Herbert Hoover say and do in response to the Great Depression?       
Hoover didn't take much action in response to the Great Depression until the end of his presidency. His initial steps were cautious: he called together key leaders in business, banking, and labor and asked them to look for solutions, and he also created a special organization to help private charities come up with contributions for those in poverty. These actions didn't have much effect. Although, he did propose the construction of the Boulder Dam (Hoover Dam), and that dam created benefits for surrounding states. Eventually, Hoover started to do more in response to the Depression. He support the creation of the Federal Farm Board, encouraged banks to establish the National Credit Corporation, and signed the Federal Home Loan Bank Act. He continued to appeal to Congress to pass various things that he thought would improve the economy, such as banking reform, provided mortgage relief, and more federal money in business investment. The biggest thing Hoover did in response to the Great Depression though, was the Reconstruction Finance Corporation, which was passed by Congress in 1932. The RFC could put a maximum of $2 billion into large businesses. A quote from Hoover, "Every time we find solutions outside of government, we have not only strengthened character, but we have preserved out sense of real government," shows how Hoover's belief in a limited government prevented him from intervening to much with the Great Depression. 


3. Why do you think people blamed Hoover for the nation's difficulties?       
People blamed Hoover for the nation's difficulties because he wouldn't provide federal welfare and direct relief, therefore people in poverty who were desperately in need of such things felt the nation's difficulties were indirect consequences of Hoover's government philosophies and hesitance to take the drastic action that was needed in response to the Great Depression. 

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?)       
Hoover's belief in "rugged individualism" shaped his policies during the Great Depression by causing him to not want to issue any federal welfare towards individuals during the Depression. He believed that people who got by on their own would have higher self-respect and stronger "moral fiber," therefore he was very hesitant to have the government intervene in individuals' lives; the majority of his actions in response to the Depression involved businesses and the creation of organizations, not aid towards individuals. So, due to Hoover's belief in "rugged individualism," and thus his subtle, for lack of a better word, actions during the Great Depression, his policies weren't very effective at all, and the nation noticed. 

5. What did the Bonus Army want and how did Hoover respond?      
The Bonus Army wanted the financial bonus and life insurance that was guaranteed to be issued to them in 1945, because their fighting in World War 1 needed compensation. So, the Bonus Army was gathered in D.C. to show support for the Patman Bill that was under consideration in Congress, which said that they (WWI veterans) should be paid that bonus immediately. However, Hoover took the Bonus Army for communists and criminals and opposed the legislation. When the bill was voted down by Senate, Hoover order the Bonus Army to leave, but not all left. So Hoover issued an 1000 man force to make the remaining veterans leave. These soldiers threw tear gas bombs, prodded people with bayonets, and set fire to buildings in order to uproot the Bonus Army. 


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.       
Franklin Delano Roosevelt was so certain that he would defeat Hoover when he heard about the attack on the Bonus Army because the public already had a low opinion of Hoover and blamed the nation's problems on him, so when Hoover issued an attack against U.S. veterans, Roosevelt knew that that would not settle well with the public at all, which it didn't. People were shocked that Hoover could treat WWI veterans the way he did.  Also, considering Hoover's actions to alleviate the Great Depression weren't very helpful or effective, Roosevelt had good reason to believe that the public was anxious for a new, more ambitious, leader. 

Hardship and Suffering During the Depression

As you read about how people coped with hard times, use the headings below to summarize the Great Depression’s effects on various aspects of American life.

Employment:
People all over the country were losing their jobs.

Housing:
Because of unemployment, many people were being evicted from their homes, and the amount of homeless people in the country significantly rose. People either lived on the streets or they built little shacks out of scrap materials for shelter. 

 Farming:Although farmers had the advantage of being able to grow their own food, many lost their land due to falling prices and rising debt. Therefore many farmers went to tenant farming to just barely make a living. Farmers were also heavily hit by the drought in the early 1930s, and many moved west because of dust storms and evictions.

 Race relations :African Americans had even higher unemployment rates, and were paid less. During the Depression, due to whites who were also competing for jobs, racism towards African Americans was stronger. In fact, 24 African Americans died by lynching in 1933. 
Latinos also dealt with more intense racism due to job competition with whites. Many wanted them to be deported. Some Latinos voluntarily moved to Mexico, others were forced by the Federal Government.  

Family life :Family was highly valued during the Great Depression, it was a symbol of strength and unity during hard times. Because of the tight budget, many families would stay home and play games together for entertainment. But, due to the stress of the Depression and the struggles to make ends meet, some families did break apart. 

 Physical health :Many were dying of starvation during the Great Depression. There was also a rise in the amount of people with malnutrition and diet-related diseases such as rickets.  

Emotional health :
Many people lost their will to survive during the Great Depression because of how demoralizing the hard times were. Suicide rates rose, and admissions to mental hospitals tripled. People gained saving habits as well, and many gave up their life goals and focused on maintaining financial stability instead. Despite these things, generosity was abundant among communities, and people commonly helped out others in need and shared with neighbors.  

Explain or define each of the following:

 Dust bowl-the region of America that was hardest hit by the drought. It included parts of Kansas, Oklahoma, Texas, New Mexico, and Colorado.

Shantytowns-little towns made of shacks. They popped up due to the amount of homeless people during the Depression who made shelters out of scraps.

Direct Relief-cash payments or food provided by the government to the poor.

Causes of the Great Depression

1. What industrial weakness signaled a declining economy in the 1920s?    
The industrial weaknesses that signaled a declining economy in the 1920s were the struggling of important industries, the surplus-without-profit situation of farmers, and the debt that consumers and farmers were going into.


2. What did the experience of farmers and consumers at this time suggest about the health of the economy?    
The experiences of farmers and consumers at this time suggested that the health of the economy was diminishing. Farmers needed federal price-supports in order to keep agriculture from going under since they had an abundance of products but a drop of the annual farm income. Consumers had less money to spend on goods because their incomes had been reduced and prices had been increased. Both farmers and consumers were faced with the effects of the previous years that were full of superficial prosperity in the economy.



3. How did speculation and margin buying cause stock prices to rise?    
Speculation and margin buying caused stock prices to rise because more and more people were mindlessly buying and selling stocks, and with these limitless investments the stock market rose on a steady incline. Also, there was barely any regulation by the government in the stock market, so the speculation and margin buying was a bit relentless.

4. What happened to ordinary workers during the Great Depression?    
Many ordinary workers lost their jobs. For the workers that managed to still have a job, they dealt with pay cuts and less working hours.


5. How did the Great Depression affect the world economy?    
The Great Depression caused Congress to pass the Hawley-Smoot Tariff, which caused other countries to raise their tariffs, and therefore the world trade market fell by more than 40%. Also, Britain and Germany were dealing with big debts from the war, and their problems mixed with America's inability to import European goods, limited trade as a whole in the world economy.


Define: 

a. Price-Supports: When the government would buy products, at a set price, that were in surplus and sell them on the world market; those were called price-supports.

b. Credit: A system in which consumers agreed to "buy now and pay later" for products.

c. Dow Jones Industrial Average: The most popularly used barometer of the stock market's health.

d. Speculation: When people carelessly bought stocks and bonds hoping for a quick profit.


e. Buying on Margin: When a consumer would make a down payment for a small amount of a stock's price, and then take up a loan for the rest.


f. Black Tuesday: October 29, 1929-the day when the stock market truly fell. 


g. Hawley-Smoot Tariff: Passed by Congress in 1930, it is the highest protective tariff in all of U.S. history. It was meant to help protect American farmers and manufacturers from foreign competitors, but it ended up having the opposite, negative, effects. It made unemployment worse in America, and caused other country to raise their tariffs, ultimately hurting world trade.

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 in the Court's opinion in Schenck was that the leaflets Schenck was handing out could've potentially caused a dangerous situation in the country involving panic and distress within the people. Holmes claimed that if the country were in a state of peace, the first amendment may have protected Schenck's right to free speech. But because the country was in a state of war, Holmes claimed that congress had the right to prevent Schenck from distributing leaflets that they believed could severely hurt support of the war within America. No, I do not agree with the court's decision to say Schenck's leaflets weren't under the protection of the right to free speech. No matter the situation, every citizen in the U.S. has the right to free speech. If that depends on the state of the country, such should be indicated in the Constitution within the first amendment itself. 
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.)     
No, I do not think some limits on the freedom of speech are necessary. This is because although there are situations such as Schenck's, where his "speech" threatened moral support of America's participation in the war, people should be allowed to say, write, publish, etc., whatever they want. The government has no right to persecute people for their opinions, whether they pose a threat or not. American supposedly stands on its value of freedom, so limiting the freedom  of speech of citizens because it is inconvenient is never a necessary action. Holmes also made a great point when he said that a free exchange of ideas was necessary in order for truth to win out in the intellectual marketplace; if speech is limited because it's potentially dangerous, which the truth can also be sometimes, then the government will ultimately, albeit indirectly, be gradually encouraging the success of spurious ideas and hyperboles in the intellectual marketplace that Holmes speaks of. 

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

1. Prosecution of supporters of Communism and draft resistance: Controversy of when free speech needs to be limited occurred again when there was protest during the Vietnam war, and the Supreme Court was again pressed with these issues. 
2. Tinker vs. Des Moines School District: The question about whether young people are protected by the first amendment popped up when students wore arm bands to protest the war, and he court had to order the readmission of these students. 
3. Texas vs. Johnson: Court invalidated a law concerning the physical desecration of the American flag, and determined if that was an act of free speech. An uproar of outrage followed, and Congress considering the passing of an amendment preventing such desecration, but it did not get passed.