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The Mid 20th Century: 1930 - 1960
The Great Depression & the New DealIn 1929, the economic prosperity of the post-World War I America suddenly came to a halt. During the summer, many consumer and heavy industries noted growing surpluses of unsold goods, and managers began "laying off" workers. That action started a vicious cycle. Workers who were now without jobs had no purchasing power. Surpluses remained, more jobs were lost and the cycle seemed to be never-ending. Equally harmful, on "Black Thursday," October 24, 1929, the stock market crashed, and the nation�s economy plummeted. In addition, the agricultural sector of the economy had been in decline since about 1926 due to surpluses and low prices. By 1930, Texas began to feel the effects of the Great Depression. Cotton prices fell dramatically, finally hitting bottom at about a nickel a pound. By 1932, more than 350,000 Texans were unemployed. At the same time an oil boom in East Texas also had economic effects for the state. While the discovery helped the region economically for a time, the surplus of oil drove prices down. Oil prices hit bottom at 10 cents a barrel. Like many Americans, Texans became increasingly dissatisfied with President Herbert Hoover and other Republicans who appeared to be doing little to help people cope with the depression. In 1932, Texas helped elect Franklin Delano Roosevelt as president and also gave the Democrats majorities in both houses of Congress. Once in office, Roosevelt implemented a series of domestic programs known as the New Deal to try and help the American economy recover. Roosevelt�s New Deal offered federal assistance and public works programs to the public and promised relief, reform and recovery. During the Hundred Days, from March 9 to June 16, 1933, Congress enacted more than twelve major pieces of legislation proposed by the Roosevelt administration. Much of the legislation established new agencies that offered employment and relief. The Civilian Conservation Corps (CCC) employed youths to work on soil erosion control and park maintenance. The National Industrial Recovery Act (NIRA) sought to reinvigorate the economy by encouraging fair competition and setting labor standards. The Federal Insurance Deposit Corporation (FDIC) insured bank deposits up to $5,000. That gave Americans greater confidence in the banking system. The "alphabet soup" agencies of the Hundred Days represented the first time the government had enacted so many pieces of legislation to aid the public through massive government intervention in the economy. Roosevelt�s New Deal came under attack from both radicals and conservatives. The conservatives claimed that the New Deal threatened the idea of capitalism. Radicals argued that it did not do enough, especially not enough for the elderly, for women or for racial and ethnic minorities. Yet, with the election of 1936 approaching and the Depression still hurting the economy, Roosevelt decided to enact more legislation in 1935. The second New Deal offered some relief to Texans. The Works Progress Administration (WPA) in Texas put people to work constructing buildings on college campuses, the Ft. Worth public library, parks, bridges, dams, sewage plants, schools, public hospitals and municipal buildings. They also paved streets and highways. The WPA employed more than eight million people nationwide during the Depression. The National Youth Administration (NYA) employed high school and college students to do similar tasks and was headed by Lyndon Johnson, a Texan and future president. Texas also received federal aid for schools and for the unemployed. Other measures included the Social Security Act, providing relief to the indigent and the elderly. The Fair Labor Standards Act set minimum wages and maximum hours.
Although the New Deal did not end the Depression, it seemed to offer relief to many Americans. People became increasingly hopeful and encouraged by Roosevelt�s confidence. Roosevelt�s charisma and willingness to try any measure to relieve the Depression resulted in his election for four terms, an act unprecedented in the history of the United States.
Additional Resources
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