CALIFORNIA AND THE GREAT DEPRESSION,

Transcription

1 CALIFORNIA AND THE GREAT DEPRESSION, Overview of the Great Depression Impact of the Depression on California California and the New Deal State Politics in the Great Depression

2 A. Overview of the Great Depression 1. Causes of Depression Roll-back of Progressive reforms Growing wealth inequality

3 The stock market crash

4 2. Impact of Depression Nationwide, Bank failures in the 1,000s Unemployment skyrockets from 3.2% in 1929 to: % % % Toledo, Ohio and Detroit Michigan - 80%

5 Well, here's a way to visualize just how big a crisis the Depression was: We talk about thirteen million people unemployed in The number all by itself doesn't mean much. But envision this: take the Rose Bowl in Pasadena, California. It holds 100,000 people. And let's say on New Year's Day 1931, there was an event in the Rose Bowl and that it was filled to capacity. And at the end of this event, all the people sinng in all the seats were heads of household and employed, and at the end of the event, they were all told, "You've just gone unemployed, and two-thirds of you, in fact, won't have reliable employment for at least four years." That approximates the unemployment starsrcs. Then the second Saturday in January of 1931, you do the same thing - 100,000 people, they're all told on the spot they're unemployed, and so on. The third Saturday in January, the fourth, and then every Saturday in February and March and April, and in fact every Saturday through 1931 and every Saturday in And you can do the math in your head, eventually, if you - to get to the total of thirteen million in 130 Saturdays, two and a half years. If you started on New Year's Day 1931, it would take you unrl the summer of 1933, the end of the socalled Hundred Days, before you got to the total of thirteen million people. And - now it's a mental exercise, but in fact it's a very good - it's a precise statement of the number of people unemployed, and it's a preyy good approximaron of the speed with which this happened. David Kennedy, Freedom from Fear

6 B. The Great Depression in California 1. By the numbers - economic collapse: Agriculture: 1929 $750 million to 1932 $327 million Oil Industry: By overproduction leads to collapse Movie Industry: relatively stable 1932: $83 million in loses

7 2. By the numbers: unemployment Los Angeles: 33% unemployment in 1932 Hardest hit: elderly people, white collar workers and service workers San Francisco: 25% unemployment in 1932

8 3. By the numbers: other problems ,000 homeless coming every day After ,000 migrants fleeing drought

9 4. State Government Responds million Californians on relief State budget deficit $9.5 million Private charities and local government overwhelmed California is like most states by devastated

10 C. Federal Government Help: Hoover and Roosevelt 1. President Herbert Hoover s Response, Federal government won t assist individuals Relies on states and local governments NOT begins public works projects Hoover Dam on Colorado River

11 2. Election of 1932: Franklin D. Roosevelt The New Deal in CA, Relief, ($285 million) Federal Employment Relief Administration (FERA) Provides state grants for relief efforts in CA Civil Works Administration (CWA) 150,000+ jobs: build bridges, airports, roads Civilian Conservation Corps (CCC) Thousands of young men employed

12 2. Relief and Recovery, Works Progress Administration (WPA) Building infrastructure (roads, bridges, etc) Employs artists, writers, actors as well Modesto - Ray Boynton murals

13 Griffith Observatory in Los Angeles (WPA) Oakland-San Francisco Bay Bridge (RFC)

14 3. Water Projects by Bureau of Land Management Finishes Boulder (Hoover) Dam Central Valley Project

15 D. California Politics and the New Deal 1. Quick Overview Republicans in power 1920s and early 1930s Democrats sweep in with Roosevelt, 1932 new radical wing of party: Upton Sinclair Muckraker (author of The Jungle) Member of Socialist Party Fought for ag workers rights Ran as a socialist for governor, runs as Democrat

16 2. End Poverty in California Campaign, 1934 A Pamphlet A Program A nomination for governor

17 EPIC Plan Highlights a. Tax reform to shift tax burden to wealthy Stock transfers (capital gains) replace sales tax Inheritance taxes steeply increased Taxes on private utilities and banks Progressive taxes on income b. Help for less wealthy and working-class No tax on homes, land valued under $3,000 $50/month pension for certain groups

18 c. Unemployment relief (most radical) Production for use program use abandoned lands/factories co-operative businesses use of state script to help exchange of goods Financed through state bonds 3. The campaign: FDR does not endorse Sinclair Sinclair attacked viciously in the press

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21 Frank Meriam - Republican wins, Pragmatic conservatism Supports FDR and New Deal programs Democrats back in power (Cuthbert Olson) Expands support for New Deal programs Unable to move forward state programs WW2 breaks out in Europe

22 CALIFORNIA AND WORLD WAR II Overview of Outbreak of War and Impact on CA Japanese Internment California s Economic Development Post-War Economic Boom - The Cold War