Chapter-25-the-Great-Depression解读

Chapter25TheDepressionandFDRSection1:TheGreatDepression•PeoplewererecommendinginvestingmoneyinTheStockMarket•Grocers,motormen,plumbers,seamstresses,waiterswereallinthestockmarket•Themarkethadbecomeanationalphenomenon.TheBoom•Inthelate1920’s,thevalueofstocksincreased•Investorsboughtstocksonmargin.Thismeanstheypaidonlyafractionofthestockprice,andbrokersandbankspaidtheotherhalf.•Aslongasstockscontinuedtorise,thebuyercouldpaybackthedebtafterhemadeaprofit.•Ifthevaluefell,brokerswouldnothaveenoughtopayofftheloansUhOh•Fearingtheboomwouldend,stockbrokersstartingsellingtheirstocks•Thesesalesmakepricesfall•Brokersdemandedsellingtheirstock,andeveryonehadtoselltheirstocktopaybackthebrokers•StockexpertstoldpeoplenottopanicandcontinueinvestingThatDidn’tHappen•Forthreestraightdays,stockpricesplungedasinvestorssoldmillionsofshares.•Traderssoldalmost13millionsharesonOctober24th1929,adaythatbecameknownasBlackThursday•OnTuesdaythe29th,afterafewdaysofcalm,everybodycontinuedsellingTheGreatDepression•Thenexttwoyears,theU.Sslidintoasevereeconomiccrisis,knownasthegreatdepression.•Thetotaleconomicoutputwentfrom$104billionto$58•Thestockmarketcrashingdidnotcausethedepression,butwasperhapsthemostnotableofaseriesofcausesWarningSignals•FarmIncomeProblems(lowfoodprices)•AutomobileandIndustry,sufferingfromlackoforders,andemployeeswerelaidoff•Laidoffworkerscan’taffordnewproducts•Gapbetweenrichandpoor:In1929lessthan1%ofthepeoplehad1/3ofALLTHEMONEY•75%ofAmericanfamilieslivedontheedgeoffamilies.CreditCrisis•Consumersusedcredittobuyland,equipment,andsupplies•Bankssufferedwhenfarmersdefaultedorfailedtomeettheirloanpayments•Largebankshadboughtstocksasaninvestment,andtookhugelossesinthemarketcrash•ThousandsofbankswereforcedtocloseInternationalDepression•ForeignCountriesreliedonAmericanmoneytorebuildtheirnations•EuropewasgettingmoneyfrombanksinAmerica•Banksnowwereinnopositiontogiveloanstoforeignbusinesses•OthernationshadnomoneytospendonAmericangoods,tradesloweddownLookingforWork•In1932,25%ofAmericanworkerswereoutofwork.•Citieswerehardesthit•Workerswhomanagedtokeeptheirjobsnowworkedonlyparttimeforlessmoney•Manyunemployedtriedtoearnafewcentsbyshiningshoesorsellingapples.MoreSuffering•Longlinesofhungrypeoplesnakedthroughthestreetsofthenationscities,waitingforasliceofbread,acupofcoffee,orabowlofsoup•Manylosttheirhomesandbuilthousesoutofboxesandotherobjects•These“towns”werecalledHoovervilles,becauseofpresidentHoover’sfailuretoactHoover’sResponse•Hooverthoughtthecrisiswasonlytemporary,andthatprosperitywasjustaroundthecorner•Thestateandlocalgovtprovidedrelief,aidfortheneedy,topeopleinneed•However,thegovtranoutofmoney,andspendingofaidbyalllevelsofgovernmentdeclinedTheBonusArmy•AmericanslostsupportforHooveraftertheBonusArmyIncident•VeteransofWWIwerepromiseda$1,000bonusby1945,howeverthejoblessveteransneededthemoneynow•20,000soldiersmarchedHoover’sResponse•Hooversentthearmytoconfronttheveterans•ThearmyledbyarmychiefofstaffGeneralDouglasMacArthur,andhisaideDwightD.Eisenhower,enteredthecampandburneditdown.•WhileHooverclaimedthebonusarmy“challengedtheauthorityofthegovernment”,thepeoplesawitasanattackontheirownpeople,especiallywarveterans.Section2Roosevelt’sNewDealFDR•FranklinDelanoRoosevelt,(FDR)wasnominatedbyDemocratsin1932torunagainstHerbertHoover•AttheDemocraticConvention,hepromisedAmericans“ANewDeal”•Rooseveltwontheelectioninalandslide,winningallbutsixstates.BackgroundonFDR•HewasadistantcousinofTeddyRoosevelt•WonaseatintheNYStatesenatein1910,andalsowasgovernorofNYin1928•RanforVicePresidentin1920BackgroundonFDRctd…•CamedownwithPolioin1921.Itwasadiseasethatparalyzedbothofhislegs•Hiswillremainedstrong,stating,“Ispenttwoyearsofmylifetryingtomovehisbigtoe,afterthatanythingseemseasy•Rooseveltneverpubliclymentionedhisparalyzedlegs,andaskedreportersonlytophotographhimfromthewaistup.AToughRoadAhead•Bankscontinuedtoclose,andpeoplewerelosingtheirdeposits•Rooseveltassuredthepublicbystating,“Theonlythingwehavetofearisfearitself”•HisfirstactionswouldbetofixthebanksBanksareclosedon…waiteveryday?!•Hisseconddayinofficeheclosedallthebanksandreorganizedthem•TheEmergencyBankingReliefActbyallowedRoosevelttousePresidentialpowersoverbanking,andsetupasystemthatre-organizedthebanks•Rooseveltclaimed,“ItwassafertokeepyourmoneyinareopenedbankratherthanunderamattressComfortingAmerica•Thenextdaydepositsfarexceededwithdrawals,andthebankingcriseshadended.•RoosevelttriedtocalmthenationbyusingradiototalktotheAmericanPeople.•His“FiresideChats”gainedthetrustoftheAmericanPeople.HundredDays•Inthenextthreemonths,Rooseveltlaunched15differentprogramsinthetimeperiodknownasthehundreddays•Optimismspreadthroughthecapital•Themaineffectmightnothavebeentheprogramsthemselves,butthecalmitcreatedamongthepeople,incontrasttothepanicatthestartofthedepressionRoosevelt'sNewDeal•TheNewDealaffected:•Banking•StockMarket•Industry•Agriculture•Publicworks•ReliefforthePoor•ConservationofResources•“InMarch,1933,theNewDealwasnotaplan,itwasahappyphraseFDRhadcoinedduringthecampaign…Itmadepeoplefeelbetter,andinthatterriblep