The Great Depression was a phenomenon that did significant damage to the American economy. Before that, the economy grew on an unseen scale under President Hoover, but the growth was marked by excess and inequity, which eventually caused the Wall Street Crash. Hoover, clinging to the laissez-faire policy, was completely unable to alleviate the depression; on the contrary, F. D. Roosevelt introduced numerous steps (which became known as “the New Deal”) and provided significant governmental assistance to the population, which allowed the country to recover from the depression.
The Great Depression came to the USA in October 1929, with the bloated stock market crash known as the Wall Street Crash. In the preceding years, the U.S. had experienced a major growth in its economy under the President Herbert Hoover, a Republican.
However, the growth was extremely intense. While the level of life of an average American increased significantly, the owners of businesses, especially large ones, benefited the most. With time, due to the highly unequal distribution of income, as well as to the depression in farming regions, the buying capacity of Americans decreased significantly; this led to the inability to purchase the goods present in the market. It meant that companies could no longer sell their products; the products accumulated in the markets, unsold.
The businesses also could not hire employees or pay them salaries, so the unemployment rose. Everything “exploded” with the Wall Street Crash; tremendous amounts of money were withdrawn from the banks, and the latter were not able to collect debts from stagnating European banks. Numerous investors were wiped out of the market, and many businesses went bankrupt, while the surviving ones introduced layoffs and salary cuts, deepening the depression further (Foner 800).
President Hoover response to the Depression was controversial. He listened to his advisers who stated that crises were a normal part of capitalism (which they are), and that people should “tighten the belt” so that the unproductive firms die out and the moral virtue among the poor is born in large quantities (which is a doubtful point of view, though it apparently does follow from the logic of capitalism).
It was not realized by the government that the lower and middle classes constituted a crucial part of the people’s buying capacity, and that without the “less fortunate” being able to earn money, the depression would be only likely to worsen. Hoover strongly opposed any governmental aid to the needy, and continued hoping that the situation would solve on its own, as a result of voluntary steps of the business.
The Republican Congress under Hoover took a number of unsuccessful attempts to resolve the situation (in 1932 such as increasing taxes, which only further reduced the buying power of Americans); finally, in 1932, Hoover admitted that his politics had failed, and took some steps to help businesses, but not the unemployed (Foner 802-803).
On the other hand, when Roosevelt won the election in 1933, he took numerous steps which were almost opposite to what Hoover proposed. Before the elections, he offered the Americans “a new deal”; even though the notion was vague at the time, his policy became known under that name.
FDR significantly changed the relationship between businesses and the government, limited the actions of banks, and introduced significant governmental help to the population. In the first 100 days of his rule, Roosevelt adopted a large number of laws and established various national agencies aimed at addressing the crisis (Foner 812-813).
Among the acts adopted by the Congress under FDR, there were AAA (Agricultural Adjustment Act) and NIRA (National Industrial Recovery Act). AAA provided subsidies for farmers for not planting crops on a part of their territory, and for killing excess domesticated animals, which would defeat the excess of the farming products in the markets and increase their price.
NIRA established NRA (the National Recovery Administration) which was to set standards “for output, prices, and working conditions,” so that “‘cutthroat competition’… would be ended”; still, corporations turned NRA to their advantage, so it did little to help the situation (Foner 813-814).
The Federal Emergency Relief Administration (FERA) was an agency that provided states with finances to run relief programs and create jobs. In March 1933, CCC (the Civilian Conservation Corps) was created to employ young men in projects such as forest preservation or improvement of nature reserves, which allowed them to earn at least some wages from the government.
In November, the Civil Works Administration (CWA) was established to provide temporary jobs (such as construction of roads, tunnels, etc.) to larger numbers of unemployed people to help them survive the winter. CWA, however, became too costly to the government, and was dismissed in spring 1934 (Foner 813-815).
In 1934, FDR decreased governmental employment for the needy. In 1935, however, he restored his politics. The Works Progress Administration (WPA) was established; it provided jobs for nearly 3 million people who built bridges and buildings, organized art projects, etc.; WPA worked until 1943 and provided help to great numbers of people who were in the desperate need of a job (Foner 825).
To sum up, it should be stressed that the Great Depression came to the U.S. as a result of the highly unequal distribution of income, which meant that the population, the main purchasing power of the people, could buy not nearly enough products from the market, so the goods were left unsold, and the production stopped.
While the Hoover’s laissez-faire policy proved impotent in fighting the crisis, Roosevelt’s “New Deal,” which included numerous programs of social security, governmental jobs for the unemployed, etc., alleviated the situation and allowed the country to recover from the economic disaster.
Works Cited
Foner, Eric. Give Me Liberty!: An American History. Vol. 2. 4th ed. 2013. New York, NY: W. W. Norton & Company. Print.
One of the most fascinating things about time is that certain events remain in the past for good. No matter how dreadful the events were and how despicable the consequences could have been, time passes, blurring the rough edges of certain events. However, there are some things that cannot be washed away by the sands of time, and the Great Depression is one of such things.
Entering every single aspect of people’s lives, killing every single flicker of hope and joy, the Great Depression has done its dirty job, sending a great chunk of the American population into the gloomiest mood from the rest of the century. Not being related to each other in any sense of the word, four pieces of writing by Fante, Chandler, West and McWilliams are shot through with the same fleur of despair and touch upon the same social issues, even though belonging to completely different genres and telling absolutely different stories, which can be explained as the effect of the Great Depression.
The first one to be mentioned, Chandler’s Writers in Hollywood does seem rather mean, with its grotesque descriptions of California, writers’ works and the writers themselves. However, though the thicket of sarcasm and irony, one can see despair and disbelief in the power of art, as well as the doubt if art can actually be produced under the name of Hollywood: “I am not interested in why the Hollywood system exists […] as a result of it there is no such thing as an art of the screenplay” (72).
Thus, Chandler raises an essential question, asking whether the Hollywood treadmill production can possibly kill the art of cinema as it is. On the one hand, the author’s concerns are quite legit; indeed, Hollywood has become a powerful force which shapes the public’s tastes and the cinema industry. However, the existence of Hollywood does not presuppose that original thought is not allowed in cinema; therefore, it seems that Chandler’s concerns are a bit exaggerated.
Another peculiar novel to discuss, the work of John Fante sends the reader into the America of the early XX century. A thrilling story of a writer who is trying to figure out where he actually belongs, the novel unfolds a tragic love story with its unpredictable twists in front of the readers. However, it is not only the plot that strikes with its gloom and despair but also the setting of the story.
With the help of a careful choice of words to describe every single thing that occurs in the lead character’s life, the author creates the specific atmosphere of Los Angeles as Fante saw it: “One day a beautiful letter came. Oh, I got a lot of letters, but this one was the only beautiful letter” (16). With the help of the image of tons of meaningful writing, among which the lead character managed to find something meant exactly for him, the author conveys the message of utter loneliness, which links the novel to the previously described work.
An intriguing novel to consider, The Day of the Locust also bears a distinct element of despair. Nathanael West’s tone is satirical and unpleasant; it sounds almost like a cry for help, yet the author knows that hardly anyone is going to hear that cry, and mocks his own unhappiness. “It’s a bedlam, folks” (West 191), Tod says, and the given sentence summarizes pretty much the entire novel – as well as the writer’s attitude towards what was going on in the early XX century.
However, among the four pieces of writing, there is the one that stands out the most. Unlike the previous three ones, the difference between which becomes evident only after a thorough analysis, the fourth one seems a perfect stranger in this company, since it is a poem. Written by a man called Carey McWilliams, the poem takes the veil off the glorious City of Angels, exposing its ugliness for everyone to see.
What is especially wonderful about the poem is the careful choice of words which make a cadence of images to imply unpleasantness: “Here the American people were erupting, like lava from a volcano” (376). Creating a train of absurd events: “A University of South California football star had been caught robbing a bank” (376), the author builds up the atmosphere of despair which the previously mentioned works are shot through as well.
Although the stories told by the four writers are completely independent and any possible coincidences are supposed to be unintentional, there is actually a lot in common between the four narrations. Starting with the most obvious feature of the stories, one must mention that each of them is autobiographical to some extent. The stories are either told from the perspective of a writer, which is exactly the case of Fante: “One night I was sitting on the bed in my hotel room” (11), Chandler: “I am not interested in why the Hollywood system exists or persists” (72), and McWilliams: “I had spent an extremely active evening in the Hollywood” (376), or, in West’s case, from the perspective of an omniscient narrator who, nevertheless, shares certain features with his character, e.g., the manner of narration: compare Tod’s short “We’ll get a taxi. I’ll go with you” (193) and the narrator’s abrupt “Their boredom becomes more and more terrible” (192). Another important detail that links the four stories is the fact that each of them is written in a noir genre, setting the reader in a rather gloomy mood. |Thus, the four stories share a considerable amount of issues in common apart from the depressive mood.
Hence, it is clear that, mostly because of the Great Depression, the American people viewed the world as a structure which is slowly falling apart, with Los Angeles being the place where the last hope dies. Perhaps, it was the contrast between the has-been glory of the place and the further decay of Los Angeles that triggered the feeling of despair which the given pieces are shot through.
Indeed, the contrast between the bright and colorful images which are usually the trademark of Los Angeles, and the gloomy reality enhanced by the effect of the Great Depression, is truly striking. However, when reading the given writings a bit closer, one will inevitably get a kind of a timeless feeling which conveys the idea that the gloomy mood seizing the characters in Los Angeles can actually be related to any other time period apart from the years of Great Depression. Pushing the feeling of loneliness to the nth degree, the authors display the idea of loneliness in the most graphic way, which, perhaps, makes their creations so gripping.
The Great Depression that happened in the 1930s was the gravest and prolonged economic downturn in the history of the developed Western world. The slump began immediately after the stock market crash of October 1929 that sent Wall Street into a panic and caused heavy losses to investors. Also, consumer spending and investment dropped significantly, culminating in reduced industrial output and increased unemployment levels due to job retrenchment by failing companies; banks included.
The United States Federal government takes the blame for the mishandling of the economy, a state that led to the Great Depression. A similar situation had occurred in 1907, and the government responded appropriately by creating the Federal Reserve to inject cash into the market and minimize financial reliance on private companies. This effort ensured a swift recovery from the recession. The crash of 1929, however, saw the Fed cutting the money supply drastically. As a result, many banks suffering from the liquidity crunch collapsed, and hopes of recovery from stagnation shuttered.
Other factors that contributed to the subsequent market collapse include droughts and low food prices, low wages, the increase of debt, and excess of large bank loans. Similarly, the stock exchange that had been transformed from a securities market into a gambling house by the inclination to use the excess money for speculation, the reduction in mass purchasing power and the lack of government policies to regulate savings and fiscal circulation had a role to play in fuelling the economic mess.
The 1929 securities market crash saw a decline in stock prices and urgency by investors to dispose of a lot of shares to avoid heavy losses. However, this situation led investors to lose billions of dollars in bad debts, leaving them utterly helpless. The stock prices continued to plummet, and by 1932 they had dropped to a third their paper value before the recession. The decline in stock prices and financial losses assisted in speeding up the global economic collapse with the crises such as failing banks and increased unemployment ensuing.
To address the then prevailing economic calamity, the newly elected President Roosevelt came up with a strategy that involved addressing the public to restore their confidence and the New Deal that comprised legislation directed at stabilizing industrial and agricultural sectors to create jobs and Kindle rapid recovery. His administration sought to reorganize the financial system by creating the Securities and Exchange Commission (SEC) to control the activities of the stock market and prevent manipulations of the manner that led to the 1929 crash.
He also established the Federal Deposit Insurance Corporation (FDIC) to safeguard bank deposits. He used social security systems, e.g., unemployment insurance, and income tax system to increase government expenditure and reduce government revenues. The systems helped to arrest the drop in the economy and resulted in GDP growth. Roosevelt also signed the GI Bill of Rights intended to provide benefits to soldiers returning from World War ‖.
Further, the New Deal comprised programs and institutions that transformed the lives of Americans significantly. Notable among these was the Tennessee Valley Authority (TVA), whose mandate was to build dams and set up hydroelectric projects to control flooding and supply electric power to that region. The second program was the Works Project Administration that provided employment to millions of people. Others included the Civilian Conservation Corps that functioned as a relief and work program for the youth, The Federal Emergency Relief Administration, the National Industrial Act for price and wage regulation.
While the reasons for the Great Depression were several, the stock market crash of 1929 stood out as the primary accelerator of the slump. Even though Wall Street has experienced several security market crashes, none has borne a prolonged global impact as the one witnessed in 1929. Only the diverse financial strategies and policies contained in the New Deal could disentangle America’s economy from its devastating grip.
The efforts to US’s economic recovery in the aftermath of the Great Depression of the 1930s sparked a series of economic programs under an umbrella name, the ‘New Deal.’ The mission of the ‘New Deal’ was to: enhance employment vital in poverty reduction; enhance economic recovery to the customary levels, and to revamp the financial system to avert a recurrence of the economic recession.
To many historians, this mission can be summarized as the ‘3 Rs’ i.e. relief, recovery and reform. From these, we can delineate the mission a short-term prevention e.g. creation of employment, or long-term prevention e.g. revamping the financial sector (Jones 101).
Significantly, the dawn of the ‘New Deal’ triggered political realignments with the majority of the congress men shifting support to the pro-New Deal architects, who dominating the congress with their liberal ideas. This was to the credit of the ‘common man’ since they were empowered through different institutions and unions e.g. the labor union.
The realignments enhanced the formation of new coalitions across the board; the Republicans split into liberals, ‘pro-New Deal,’ and conservatives, ‘anti-New Deal,’ with the former merging with majority Democrats in support of President Roosevelt. In effect, President Roosevelt expanded his authority to rarely non-South, Democrat strongholds, consequently enjoying a massive support from the congress (Jones 102).
This new alliance incorporated novel programs to the previous program thus earning the name ‘Second New Deal.’ To the previous program, the ‘First New Deal,’ which was apparently a stimulus program e.g. the ‘Federal Emergency Relief Administration,’ they incorporated, for instance, the ‘Wagner Act,’ which boosted the labor unions.
In a nutshell, the ‘Second New Deal’ was an amalgam of several programs that forged cooperation among several groups/institutions across the board including businesses, labor, consumers and the government.
Noteworthy, whatever prompted the ‘New Deal’ (1933-38) was the preceding economic recession- the ‘Great Depression’ (1929-33). However, the program received a blow in the year 1937 owing to an economic recession; nonetheless, it was not aborted until the year 1941, when the US shifted focus to the WWII.
President Hoover’s era (1929-32) was coincidentally an epoch when the US’s economy was in shreds thanks to an all time high economic plunge. In desperation to make amends, the president resorted to tax cuts, inflating others e.g. doubling estate tax, enacting new ones e.g. ‘Check’ tax on banks, and he instigated the congress to monitor the ‘Stock Market’ which prompted several reforms.
In the wake of the 1932 election campaign, the Democrats through their talisman, Roosevelt, used this as their campaign tool. They viewed these economic recovery efforts as a sham, terming them as ‘statist.’ Roosevelt sustained Hoover’s aggression further by blaming him for the economic recession.
This functioned to de-campaign the incumbent a great deal, a man who had resorted to letting his proxies actively involved in the campaign only to come later after sensing defeat. This was one principal factor the incumbent met his waterloo after conceding defeat to Roosevelt later that year. Moreover, his precarious handling of the ‘Bonus Army’ issue played a massive role as a roadblock to re-election.
One of the most two, important statements, the highlights of President Roosevelt inaugural speech, was “we have nothing to fear but fear itself” (Jones 100). With this, he was trying to restore the fading ‘American Dream.’ He tried to preempt the optimism that awaited the people under his government.
He acknowledges the murky waters of economic depression that impedes progress and feels that this needs to be tackled head-on. This drives us to the second statement in which he believes that the constitution is liberal and gives him the suppleness to explore new endeavors in case of a stalemate.
He says that the “constitution was very flexible about the approaches it would allow and that if things continued to be bad he looked for congress to give him the authority to take more aggressive steps” (Jones 102). The significance of this statement was the reason that the ‘New Deal’ program was initiated in an effort to stem recession.
The important ideas that president Hoover expressed in the dawn of 1932 elections were basically geared towards economic recovery. Hoover, a proponent of laissez-faire theory, believed in carving out a society that would be self-reliance for the betterment of the future.
To this he envisioned a long-term solution to the economic recession. In effect, he initiated the establishment of “the Reconstruction Finance Corporation” (Zubok 140), an agency that would spur economic recovery through lending loans to organizations/institutions e.g. insurances and banks.
Moreover, he initiated more drastic actions in an effort to reverse the dwindling economy. To this he, for instance; restricted immigration, and initiated expansion of Federal government employment base. One of his campaign manifestos included massive cutbacks in government expenditure.
On the other hand, Roosevelt campaign idea of supporting farm related programs underscores the difference in philosophy between the two leaders (Jones 103).
Unlike Hoovers’ hands-off philosophy, Roosevelt’s was a devoted type. Moreover, their sharp contrast in their approaches is portrayed by their take on tariffs design. As opposed to Hoover’s protective approach on tariffs, Roosevelt envisioned a competitive one. Roosevelt triumphed finally owing to a sense of hope his ideas instilled to the electors. Unlike Hoover, his radio voice was enthusiastic (Jones 102).
If I were to live back then in the US during the hard economic times of the 1930s I guess I would have given up with life. I would be thinking of shifting to a neighborhood nation in order to seek life sustaining jobs. As for me, when the situation turns to the worst I would throw myself to the streets and protest against the government of the day.
The US’s recovery efforts can be summarized under the rubrics that include ‘Relief,’ ‘Recovery,’ and ‘Reform’ also denoted as ‘3Rs.’ First, on focusing on the ‘Relief,’ the American government injected a lot of efforts in her quest to relieving its citizens against the agony that was destitute.
Following the economic recession, a sorry picture of malnourishment, homelessness and sicknesses were common. Doom and gloom hanged on the faces of its citizens rendering them a pessimist lot. As such, in a quest to relieve pressure off them, alcoholism prohibition was lifted, and people started taking alcohol in the open air, and entertainment over the radio and televisions took a full swing.
Moreover, Agriculture Adjustment Act (AAA), encouraged farmers through direct payments just for choosing to plant certain crops, as opposed to others. Furthermore, Civil Conservation Corps (CCC) created employment; National Industrial Recovery Act (NIRA) came to the rescue of businesses; and government threw their support to farmers.
Secondly, ‘Recovery’ efforts were fronted through reinstatements of initially redundant employees to their respective private and public jobs. Public Works Administration (PWA) created employment, and in the year 1935, over 8 million people had been employed in a diversity of professions. Moreover, oral interviews were done on former slaves a manifestation of a nation on recovery.
Finally, institutional ‘Reforms’ were seen where federal laws re-aligned to foster a relationship among organizations/institutions including businesses, labor, consumers and the government.
Indian Reorganization Act (IRA) came to being in the year 1934; tribal governments were re-instated; reservation lands were returned to the respective tribes, and Native American religion, arts, and crafts were encouraged. Moreover, National Labor Relations Act empowered employees, and Social Security Act (1935) took care of the employees’ compensation and assurances. In a synopsis, the ‘New Deal’ achieved both micro and macro success.
Week 10
The League of Nations was formed post WWI, and the sole objective was to avert a recurrence of war in the future. Significantly, prior to the WWI, America and European nations had been experiencing advanced civilization; infrastructural development, as well as industrialization, was at full fledge.
All this, in Europe, was destroyed bringing the economies back to their knees. For fear of a repeat, as a matter of fact economies had to recover from the shreds of war, it was important that the League be formed.
The benefits derived from the absentia of both the US and Russia from the League was that while the former was an outsider and she would have been viewed as an intruder to the European affairs, the later was still upholding communism and could not be trusted with membership. Germany was not allowed membership till later (1924) since it was the one believed to have sparked the war (Jones 117).
After witnessing the consequences of war that included the dwindled economies and lost lives, many nations resorted to peace campaigns to prevent the use of wars in the future as a tool for settling disputes. One such campaign fronted by the duo of Frank Kellogg and Aristotle Briand was the Kellogg-Briand Pact (1928), and this was signed by Germany, US and France.
While viewing the slides, the pictures portraying the Germans scavenging for both food and clothing elicit a myriad of feelings from the citizens’ perspective towards the state of the economy. I think they are feeling that the economy is down and reflect that they shouldn’t have entered into war.
In the aftermath of the WWI, the US forged good rapport with the international communities. In essence, its politics, culture and the economy expanded beyond the borders considerably. Importantly, the economy and politics interacted a great deal.
For instance, the US received debts from England, France and Italy ($2.6 billion), German enjoyed a loan facility ($2.5 billion) from the US, and Germany made reparation payments ($2.0 billion) to its allies. This is summarized as the Dawes Plan. Moreover, the US extended trade ties with Russia, consequently becoming its major trade partner in Europe (Jones 130).
Between 1920 and 1930, the federal government adopted changes in its foreign policy. Prior to the WWI, the US’s foreign policy was skewed towards diplomacy. To this they took advantage of their military prowess to involve in diplomatic relations. In the post-WWI era, the next decade (1920-30), many emphases were put on international trade and isolationist as opposed to aforementioned.
The US was slowly drawing itself into what would be the WWII long before Pearl-Harbor Attack by the Japanese. The enmity between the two was historical, and it was slowly simmering culminating into what would be the WWII. Perhaps that was the reason behind secret developments in contingency plans (1920s) by both states. Nonetheless, it came the Nanking Massacre (1937), maiming more than 200,000 US soldiers. In effect, by the time Pearl Harbor was attacked daggers had already been drawn, and the US was in WWII.
Of note, before involvement debate was a rife in the US, whether to be isolated or involved. Those who were for isolation were arguing that the US would better concentrate on issues that mattered to them most, economic depression. Moreover, they felt that a neutral stand would assure them safety. Some quarters were really shocked at Japanese aggression and hence thought of involvement. To this they argued that ‘Axis’ aggression would threaten their interests thus; pressure ought to be mounted upon them.
Prior to the WWII, states were utterly aggressive internationally. This, I believe, was prompted by the fact that they were desperate to make ends meet at the backdrop of ‘Great Recession.’ They wanted to acquire territorial gains in order for them to explore prospective wealth, and expand international trade. To them they believed this to be the remedy for depression.
As an advisor of President Roosevelt, I would advise him to pursue isolationism for the reasons that it was unfortunate that the war coincided with the recession hence; involving in it would worsen the situation.
Week 11
Apart from protecting free trade during the course of the WWII, the other motive that sparked US’s interest into the war was because it had scores to settle with the Japanese. The Pearl-Harbor was a reason enough for the US to attack. Its interest was further renewed by the Germany’s aggression. Moreover, the US was fighting communism which was spreading like a bush fire, preventing it from spilling over to them had it not been contained at its infancy stages (Zubok 159).
As opposed to the WWI, the second war was a ‘total war.’ This war happened at the height of the industrial revolution and different nations used this to test their novel technologies. Heavy artillery, helicopters and submarines, were among the paraphernalia that were used. Furthermore, the attacks were waged indiscriminately to all and sundry.
The Spanish Civil War attracted interests from a number of foreign countries. Their involvement was motivated by a wide spread phobia that, if it were left unrestrained, it had the potential of culminating into the WWII. Also, there was a need to stem both ‘Fascism’ and ‘Bolshevism’ ideologies. These factors divided the Spaniards into two: Republicans, an anti-fascist, and Nationalists, a fascist biased organization (Zubok 159).
The US was reluctant to enter into the WWII owing to the fact that they were in hard economic times and as such, they were weighing their financial potential. Moreover, the previous wars had curtailed their forces significantly, and reflected that they might be overwhelmed. To echo this, the US had been involving in material support to other countries initially e.g. Britain and hence; this eat into its economy a great deal. With this, they entered into the war later on (1941) to save on costs and take advantage of a weakened enemy.
US’s foreign policy between the 1930s and early 1940s was that of an isolationist approach for the better part of that decade until later on in the wake of WWI when it reverted to diplomacy. Prior to the WWII, the US economy had been a rollercoaster kind of economy with the better part of the preceding decade experiencing depression.
At this backdrop, they were a weakened lot hence they could not enter into war. Moreover, its initial efforts to explore isolation ideology initiated a cutback in military personnel to channel efforts towards economic recovery. Hence, there was a deficiency in forces to involve in war. Furthermore, family ties of its citizens with their mother land rendered US an isolationist. However, in the wake of WWII when the economy was regaining, and after Japanese aggression, it changed its policy to diplomacy.
If I were to advise on foreign policy just before Japanese invasion what I would propose to the president, would be no different. With a weakened economy, shrunken army, and imminent attacks on the US’s interests, there was no option but to launch the atomic bomb. This would ensure victory and instill fear to the enemies. The aforementioned reasons justify why atomic bomb came in handy there. Noteworthy, atomic bomb could not be used in German because of family ties its immigrants had with their motherland.
The WWII impacted heavily on the US’s economic and social fronts in equal measures. The economy shifted focus to military production. In spite of creation of employment, the wage bill was particularly low. The US was desperate to arm itself ahead of WWII at the backdrop of depression. The society changed as afro-Americans started getting better jobs; German-Americans and Italian-Americans were scrutinized, and Japanese-Americans did not get fair treatment. Patriotism was taught in schools (Zubok 159).
The Japanese-Americans treatment, though unfair, it was warranted for they represented a potential threat. The Japanese sympathizers would have waged war against the US if they were to be granted freedom mingle with the rest of the citizens.
Week 12
Post WWII era that commenced in the year 1947 was typified by psychological warfare pitting the two superpowers: the US and Russia. In essence, both boasted ownership of atomic bombs and were confident in annihilating one another had war emerged between them. This protracted state of political cum military anxiety instigated espionage between these nations (Towle 160).
I believe the best way the general public would have taken to deracinate communism was through public campaigns demonizing such ideologies. This would help to change the mindset of many, having greater impact than handpicking personalities.
Decolonization is an antonym of colonization (forceful ruling of nations). Decolonization conveniently happened in the post-WWII when all the colonial masters had been weakened by the ‘total war.’ The UN campaigned for this by encouraging autonomy. Importantly, in the post-WWII, the efforts to restore colonies were thwarted by the fact that allies were always lacking.
As such, most states in Africa and Asia gained independence. Consequently, decolonization fostered new relationships between the colonial masters and their former colonies. Moreover, some colonies realigned themselves in the US-Russian Cold War. In a synopsis, the international relations changed.
Cold war was a psychological war that was fought between the US and the Russians. This was instigated by an ideological difference i.e. capitalist democracy versus totalitarian communism (Lendvai 196). Also, there was sustained competition between the two nations on control of territories and the people.
To contain communism around the world, the US did use divide and rule method, and it also employed diplomatic relations in some instances (Towle 161).
Basing on the quotes presented herein that touches on Mao Tse-tung, the main threat synonymous with communist China were a nuclear attack. As such, the US ought to have explored diplomacy in order to disarm China. Those who were living between the years 1950s and 1960s, on seeing the ‘mushroom cloud,’ they felt haunted because this was a constant reminder of the WWII and its associated losses (cold blood death).
The Cold War began immediately after the WWII, and the main recipe here was possession of atomic bombs. All the nations involved had confidence in triumphing in any war thanks to the atomic bomb (Lendvai 196). Communism was getting out hand in the East Asia. Communism triumphed in China and hence assumed power extending aggression on its neighbors e.g. Taiwan.
In essence, Cold War spread in the Middle East and Central America. As a student in the 1950s, the thought that I would have harbored while being taught about the Cold War were that the world, just like a bombshell, were about to explode. The emergence of atomic bombs was a threat to world’s security. I would have felt insecure and lived in constant fear.
Works Cited
Jones, Howard. Crucible of Power: A History of American Foreign Relations from 1945. Lanham: Rowman & Littlefield, 2009. Print.
Lendvai, Paul. One day that shook the Communist world: the 1956 Hungarian uprising and its legacy. Boston: Allyn, 2008. Print.
Towle, Philip. “Cold War”: The Oxford History of Modern War. New York: Oxford University Press, 2000. Print.
Zubok, Vladislav. The Diplomacy of the Crucial Decade: American Foreign Relations During the 1960s. New York: Columbia University Press, 1994. Print.
Franklin Delano Roosevelt (FDR) is one of the most celebrated presidents of the United States of America. He came to power in 1933 when the United States was in the middle of the Great Depression, and left in 1945 when the world, including the USA, was grappling with the effects of the World War II.
This means he led the USA through the great depression and World War II, and remains the only US president to have stayed in the office more than two terms. During his first term in office, the Americans were grappling with economic depressions, and consequently they looked upon FDR as their savior. This paper will argue that FDR had a definite plan to fight economic depression during his first term in office.
Proofs FDR Had a Definite Plan to Fight the Great Depression
The great depression was a thorny issue by the time FDR was ascending to the presidency. As a consequence, he was fully aware of the issue, meaning he had a proper plan for fighting the depression. During his inaugural address on 4th March 1933, FRD outlined that the great depression was in his mind as he was a true American (Polenberg 39).
He admitted in his speech that Americans were experiencing solvable economic problems. He told the Americans to dread fear. This means there was nothing impossible if they were bold enough to face economic depression.
FDR promised he would put those plans before the Congress for deliberations. FDR termed the great depression as a national disaster that required emergency response. He said he has an emergency plan in place to combat the situation (Polenberg 40).
On 8th March 1933, FDR held his first press forum. In his speech, FDR outlined monetary reformations they were undertaking to combat the great depression. This means FDR had definite plans to combat the great depression, and he had already put them in place. FDR claimed that his primary task was to engage people to task; implying that job creation was his agenda.
He claimed that the major step toward a meaningful solution to the great depression was willingness from the Americans (Polenberg 45). This means he had definite plans to fight the great depression and wanted cooperation from the Americans. His address indicated plans he had toward ending the economic depression. He claimed he had a mental picture, which was more than a mere pledge.
It was a vision with an objective to address poor working conditions, to fight capitalism, to reduce inflation, and to find markets for agricultural produce from farmers in the rural community. FDR further outlined his plan to fight joblessness, promote education, and ensure there is peace, and stability in the country (Polenberg 46).
A First Set of Economic Recovery Plans by FDR
On 4th January 1935, during his annual message to the Congress, FDR outlined what the government had done to combat the great depression, and the plans he had to further deal with the issue (Polenberg 47). During his two years in office, he had tabled to the Congress economic recovery plans called the New Deal.
The New Deal focused on providing emergency relief to the Americans in dire need, recovery of the economy, and reformation of monetary programs, and agriculture. The program was put in place within the first 100 days FDR was in office. In his 4th January 1935 annual message, FDR clearly outlined terms of the New Deal.
He said the new deal will deliver relief to the thousands unemployed, and those faced with the risk of losing their homes as a result of lack of means for paying the mortgage.
The new deal would further recover dwindling agricultural sector, and reform the business in general. FDR reiterated his plans to oust unemployment following the Civilian conservation Act that paved way for establishment of civil jobs for about three million youths (Polenberg 48).
A Second Set of Economic Recovery Plans by FDR
FDR further gave additional programs of the New Deal in his 4th January 1935 annual message. He tabled plans to abolish gold standards, and introduced banks reforms act called ‘Glass Steagall Banking Act’ to introduce insurance in the federal bank. He also introduced the National Industrial Recovery Act to recover failing industries.
FDR also introduced the Farm Credit Act to finance farm mortgages. He also introduced the Home Owners Refinancing Act to pave way for the establishment of institutions to finance non-farm mortgages. Also, FDR introduced the National Employment System Act that led to the establishment of employment service in the US.
Conclusion: Environmental Conservation and Future Plans
Among the New Deal agendas was the Tennessee Valley Authority (TVA). During his address on 28th September 1937 at Bonneville Dam in Oregon, FDR outlined that the government had plans to reform the environment thereby boosting agriculture (Polenberg 66). Through TVA, the Federal government had constructed dams, hydroelectric power plants, and various industries in the Tennessee valley.
During his 31st October 1936 campaign at Madison square, FDR recounted the achievement he had through in recovery programs. At the same time, he pledged to implement further programs if re-elected. Based on his new deal programs, it is evident that he had definite plans during his first term in office.
Works Cited
Polenberg, Richard. The Era of Franklin D. Roosevelt, 1933-1945: A Brief History with Documents. New York: Bedford/St. Martin’s Press, 2000. Print.
President Franklin Roosevelt rose to power at the time when the U.S. was facing hardships in the economy with the great depression badly affecting the economic activities of the country.
Although the President did not have new measures to combat the great depression, he had normal old techniques to be applied together with a message of hope to the Americans that they could overcome everything that is affecting the economy. He encouraged the Americans to overcome fear first. This paper discusses the techniques that President Roosevelt used to overcome the great depression in his presidency.
The Great Depression
The great Depression affected the economy of the U.S. in the 1930s with people’s values shrunken to the lowest levels. The government increased taxes due to reduced levels of income with ability for consumers to consume goods decreasing to lowest levels.
In addition, the means of exchange that measures the level of liquidity in the economy had gone down thereby freezing any form of trade. Enterprises closed down even as savings of many Americans were diminished.
The level of economic activities in the country was badly affected and the levels of unemployed were soaring. Therefore, the president had to offer not only hope, but ways through which the economy could be resuscitated (Polenberg 39).
Measures to End the Great Depression
The President began by offering measures that could be undertaken to end the great depression. He argued that banks had lacked morals and ethical standards that led to lack of credit to borrowers. Due to this, he stated that his government would restore values in the banking sector so that credit can be improved and the levels of investment increased. This was not the only solution to the problem.
He argued that employment levels were low and the economy could only be revived through reduced unemployment levels. This could be achieved by various means beginning by direct recruitment by the government. He pointed out that his government would treat unemployment as an act of emergency such as war. Through employment, the country’s natural resources would be put back to use (Polenberg 40).
The other revealed measure to end the great depression was balancing of population in industrial centers together with redistribution into agricultural land. Through this, Agricultural production would be increased even as unemployment reduces.
This was to be accompanied by the increased purchasing power of the population. The federal government pledged to support these activities by effective planning and provision of effective means of transportation of manufactured farm products. Despite this, the efforts were to begin immediately and not wait any longer (Polenberg 42).
President Roosevelt pointed to regulation of the financial sector as another ensure that would ensure that the recession did not repeat itself again in future.
This could involve strict supervision of all banking, credit and investment activities carried by all financial institutions. This could help end speculation using other people’s money. In addition, the president prioritized stability of the national economy over international trade.
In the State of the Union Address in 1935, the president reiterated that the federal government owed the Americans in terms of provision of employment. Therefore, he outlined measures taken by the federal government to reduce levels of unemployment.
These measures included a vast public works program that would cost $5 billion such as slum clearance and upgrading, rural electrification and reforestation (Polenberg 64).
Further still, he reiterated that his second term government would ensure that unemployment is low, interest rates are maintained low to encourage investment, more agricultural production would be promoted and better and cheap infrastructure would be provided to the American citizens.
The president further argued that welfare programs established by the federal government such as home relief should come second to work relief, a statement that has spurred mixed reactions.
A part from economic recovery and overcoming the Great Depression, President Roosevelt was concerned with the conservation of the environment. He continuously pointed out that the environment should be conserved for the future generations that will succeed the land in a few years to come.
His government undertook measures to conserve the environment through various programs such as the reforestation, dam construction and provision of hydroelectric power projects to show his concern for the environment (Polenberg 66).
Conclusion
It is true that President Roosevelt had measures in place to overcome the great depression that affected the U.S. economy in the 1930s. First, the great depression had led to low levels of productivity that was accompanied by high unemployment levels, lack of credit in financial institutions, low investment and reduced farm output. The measures as he outlined in his inaugural address to the nation were many.
They included government support to improve agricultural production and general productivity in the country through improved industrial activities. Farmers were to be supported by provision of cheap infrastructure and provision of cheap social amenities such as electricity through the rural electrification programme. Unemployment was to be reduced by direct government recruitment.
Lastly, government regulation of the banking sector was to ensure that the issues affecting the economy are not repeated in future. In addition, the President pursued environmental conservation measures such as reforestation.
Works Cited
Polenberg, Richard. The Era of Franklin D. Roosevelt, 1933-1945: A Brief History with Documents. Basingstoke: Palgrave McMillan. 2000. Print.
The catastrophic convulsion of stock-market prices on the New York Stock Exchange in October 1929 and the Great Depression which followed are among the most noteworthy events of the twentieth century.
As noted by Steindl (2007), these two events changed the global economic landscape of the time as developed economies, led by the United States, gravitated towards a grotesque economic slump which resulted in massive job losses, meltdown in global trade, severe contraction in spending, and failure of financial institutions.
Granted the importance of these events, then, it was inevitable for policy analysts to learn important lessons from the Great Depression to avoid a repeat of economic blunders that precipitated the world’s worst depression to date.
Indeed, the widely held perspective, according to Bramble (2009), is that the experience of a generation that was faced with an overwhelmingly greater degree of uncertainty can teach us some important lessons about how to negotiate our own economic uncertainty.
This paper will attempt to critically analyze if the lessons learnt from the Great Depression were decisive in shaping the post-1945 global economy. This objective will be achieved by analyzing three broad domains, namely: consequences of the depression to the global economy; the fall of the gold standard, and; the Bretton Woods system.
The Great Depression Era & its Consequences to the Global Economy
The economic slump that hit industrialized economies of the world, starting in the U.S. and later spreading to Europe, began in earnest in 1929 and lasted until about 1941, making it the longest and most ruthless depression ever experienced by the developed world (Ahamed, 2011).
Policy analysts are in agreement that the economic losses occasioned by this depression, in their full volume and magnitude, are immeasurable.
Although it is outside the scope of this paper to dwell on the real or perceived causes of this depression, it is worth noting that the catastrophic collapse of stock-market prices coupled with unparalleled bank failures and American economic policy with Europe generated an enabling environment that not only destroyed but also dislocated the economic structure of the United States and Europe (Gay, 1992).
The Great Depression brought with it a myriad of consequences that shook the global economy to the core. Indeed, many of the lessons learnt from the depression, according to Bramble (2009), accentuated the need for countries to develop mechanisms that would shield their economies from such consequences should they ever arise again.
This notwithstanding, research into the depression demonstrates that massive unemployment across global economies was one of the overriding consequences of the depression (Hannikainen, 2008).
Romer (2009) notes that, at its most terrible state, unemployment in the U.S. in the decade of the 1930s hit the 25 percent mark, and a quarter of American workers had partial access to the social welfare needed to maintain the fundamentals of life during unemployment.
Another consequence, which is related to the first, is that the GDP of many economies in the developed world declined catastrophically, mainly due to a fall in commodity prices, low production capacity, and a massive volume of economic losses that threatened the already struggling financial institutions (Prescott, 1999).
Romer (2009) observes that “…between the peak in 1929 and the trough of the Great Depression in 1933, real GDP [in the U.S.] fell over 25%” (p. 1). The decline in GDP of major world economies triggered further consequences, particularly the rise in the standard of living, rapid shifts in habits of consumption, easy credit, over-borrowing, and the spread of price agreements and market controls.
As will be discussed elsewhere in this paper, the above consequences brought with them valuable insights that were used to devise a roadmap of postwar economic recovery in what came to be popularly referred to as the Bretton Woods System.
According to Ahamed (2011), the post-1945 global economic arrangements, implemented by institutions such as the International Monetary Fund (IMF) and the World Bank, made it possible for economies to employ collective fiscal controls and monetary policies that checked and controlled easy credit, over-borrowing, and excessive leverage.
The IMF, in particular, was used as a vehicle to streamline unrestrained flexibility of exchange rates, a feature that was predominant during the Great Depression.
As surmised by Temin (1991), policies hatched during the consultative meeting held in 1944 in Bretton Woods, U.S., and which were largely meant to assist in postwar reconstruction of Europe, viewed economic recovery through the lens of events that happened during the interwar years, particularly the events underlying the Great Depression.
Consequently, it can be deduced that the lessons learnt from the depression were critical in shaping the post-1945 world economy.
The fall of the Gold Standard & the Hegemony of the Dollar
One of the major consequences of the Great Depression, and which will receive considerable attention, is the abandonment of the gold standard and the subsequent demonstrable alterations in the money markets of major world economies.
Most economists, according to Ahamed (2011), believe what came to be known as the Great Depression could have been an ordinary, forgettable recession if only the Federal Reserve had not been so preoccupied with defending the gold standard instead of the real economy.
This policy, coupled with easy credit and unstable currencies, messed up the international financial system, leaving exchange-rate arrangements in absolute disarray (Ahamed, 2011; Gay, 1992). These events, which modern economists argue could have been prevented, led to the abandonment of gold standard by England in September 1931, followed by the U.S. shortly afterwards (Gay, 1992).
According to Subachi (2008), it was President Roosevelt who first set the stage for the dollar to become a hegemonic currency when he torpedoed the agreement of currency stabilization, hatched by his European counterparts in the London agreement of 1933, and instead devalued the dollar by permitting the U.S. to ease credit conditions at home.
Indeed, it is widely believed that Roosevelt’s decision not only made the dollar achieve its hegemonic status, but brought to an end the depression era in America (Ahamed, 2011).
Other commentators are of the opinion that the dollar attained its hegemonic status after the currency was proposed by the Bretton Woods convenors as the vehicle currency for world trade in an attempt to correct the misaligned exchange rates and intractable current account imbalances – factors that either prolonged or intensified the depression (Vasudevan, 2008).
Consequently, it is important to note that the hegemonic status of the dollar was critical in shaping post-war global economy.
The Bretton Woods System
The Bretton Woods system, instituted in 1944, was the foremost exemplar of an entirely negotiated international monetary system projected to administer financial discipline and govern monetary relations among global economies (Bramble, 2009).
According to Subachi (2008), the planners at Bretton Woods, U.S., not only came up with a legal system of rules, institutions, and processes to regulate the international monetary system, but also established the IMF and the World Bank to facilitate multilateral decision-making with regard to currency relations among national economies.
The two institutions became operational in 1945. Vasudevan (2008) notes that “…the International Monetary Fund (IMF) was initially conceived as an instrument to facilitate expansionary national economic policies that would enable member countries to overcome temporary liquidity problems, such as a shortage of funds” (p. 38).
The negotiators, while forming the Bretton Woods institutions, came up with four critical policies aimed at strengthening global economies to avoid repeating what was perceived to be the errors of the past.
First, the negotiators developed a ‘pegged rate’ currency regime to check unrestrained flexibility of exchange rates, which not only discouraged trade and investment, but also fuelled destabilizing speculation and competitive depreciations – factors that were primarily responsible for the escalation of the depression in the 1930s (Vasudevan, 2008).
Consequently, it can be argued that by ‘pegging’ major world currencies to the American dollar, the negotiators had conclusively relied on the lessons from the depression, particularly the realization that misaligned exchange rates and the emergent threat of protectionism were to blame for the force and magnitude with which the depression hit global economies (Ravenhill, 2008).
It therefore follows that lessons from the depression were decisive in shaping the post-1945 world economy.
As noted by Vasudevan (2008), the second policy aimed at addressing liquidity problems by ensuring adequate supply of monetary reserves and gold were embedded in the IMF in subscriptions and quotas contributed by individual countries according to their relative economic importance.
The rationale behind establishing such a fund, according to Subachi (2008), was to bail out States that, by any eventuality, experienced shortage of monetary reserves by permitting them to borrow the required foreign currency in amounts determined by the size of their subscriptions and quotas.
It should be recalled that international liquidity problems and unequal balance of payments provided the impetus for the depression to spread fast from its epicentre in the U.S. to other parts of Europe (Prescott, 1999).
Equally, this policy has been particularly popular with nations in need of extra reserves – at least until the collapse of the Bretton Woods system in 1971. In light of these revelations, it is safe to argue that lessons from the Great Depression were decisive in shaping modern world economy.
The third policy revolved around eliminating existing exchange controls that, according to economists, constrained currency convertibility and, in their place, encourage independent member states to return to a monetary and financial system of free multilateral payments (Bramble, 2009).
According to Subachi (2008), the negotiators at Breton Woods felt that discriminatory currency practices and exchange regulation had to be prohibited in principle if governments were to circumvent a recurrence of the kind of economic meltdown that had characterized the decade of the 1930s.
This particular policy, in its element, demonstrates that the lessons learnt from the depression were critical in determining futuristic monetary principles and policies, particularly in ensuring that world economies did not fall prey to the same challenges that befell preceding economies.
A critical analysis of the post-1945 world economy demonstrates that discriminatory currency practices and limited currency convertibility are not only incongruous to a free market economy, but may further misalign exchange rates of global economies, leading to the kind of confusion reminiscent of what was experienced in the 1930s (Steindl, 2007).
Consequently, it can be argued that the lesson learnt from the depression of the 1930s – that protectionism, limited currency convertibility, and exchange regulation leads to chaos in the currency market – was decisive in shaping post-war world economy.
The fourth policy, according to Subachi (2008), established some form of international monetary cooperation among nation-states, which was to be institutionalized on a permanent basis. This institutional forum, it was felt, could be used to check currency troubles which became prevalent during interwar years (Steindl, 2007).
Again, it can be argued that this policy was a direct offshoot of the depression as it is during this era that global currencies started collapsing, making the world economy pose more dangers than it had been previously imagined.
Conclusion
Mainstream commentators are in agreement that the Great Depression, witnessed from 1929 to 1941, was indeed a watershed in the history of contemporary global economics (Ravenhill, 2008).
After critically discussing the causes and consequences of the Great Depression, the gold and dollar issue, and the Bretton Woods system, it is clear that the events and lessons from the Great Depression of the 1930s were decisive in shaping the post-1945 world economy.
It is of interest to note that many of the consequences of the depression, particularly currency troubles, exchange regulation, liquidity problems, discriminatory currency practices, and competitive depreciations, were addressed at length during the consultative meeting held at Bretton Woods in 1944.
According to Ravenhill (2008), the outcome of this particular meeting provided the foundation for the postwar world economy, at least until the 1970s. This interplay, therefore, demonstrates the importance of the lessons learnt from the depression in shaping postwar global economy.
List of References
Ahamed, L (2011). Currency Wars, Then and Now. Foreign Affairs, Vol. 90, Issue 2, pp 92-103.
Bramble, T (2009). Crisis and Contradiction in the World Economy. Journal of Australian Political Economy, Issue 64, pp 37-64.
Gay, E.F (1992). The Great Depression. Foreign Affairs, Vol. 10, Issue 4, pp 529-540.
Hannikainen, M (2008). Unemployment and Labour Market Flexibility in the Great Depression. Scandinavian Journal of History, Vol. 33, Issue 2, pp 139-160.
Prescott, E.C (1999). Some Observations on the Great Depression. Quarterly Review, Vol. 23, Issue 1, 25-34.
Ravenhill, J (2008). Global Political Economy, 2nd Ed. Oxford: Oxford University Press.
Romer, C.D (2009). Lessons from the Great Depression for Economic Recovery in 2009. Paper Presented at the Brookings Institution, Washington, D.C. March 9, 2009. Viewed <https://www.brookings.edu/>
Steindl, F.G (2007). What Ended the Great Depression? Independent Review, Vol. 12, Issue 2, pp 179-197.
Subachi, P (2008). From Bretton Woods Onwards: The Birth and Rebirth of the World’s Hegemon. Cambridge Review of International Affairs, Vol. 21, Issue 3, pp 347-365.
Temin, P (1991). Lessons from the Great Depression. Cambridge, MA: MIT Press.
Vasudevan, R (2008). Finance, Imperialism, and the Hegemony of the Dollar. Monthly Review: An Independent Socialist Magazine, Vol. 59, Issue 11, pp 35-50.
The Great Depression that started in 1929 is known as the longest economic downturn in the history of the US and other Western countries. Many researchers still cannot come to a general consensus about what exactly caused the Great Depression. What is definitely certain is that many factors like the shifting of the economy, unstable credit and financial system, poor government decisions, and the fact that the international economy was still recovering from ruinous effects of World War I all played a considerable part in contributing to the beginning of the Great Depression.
There is no denying that the Great Depression has affected every American in a disastrous way. Collapsing of business, thousands of unemployed people, lack of food and clothes – these are just a few terrifying consequences of the Great Depression. Oakes mentions how “men wrapped newspapers beneath their shirts as protection from the cold” (721). These papers later got called “Hoover shirts”, as a pinpoint to the failure of Herbert Hoover, the president of the US at the time of depression. The latter was no stranger to difficult and harsh situations and attempted a few tries to restore the economy, which, alas, still ended up in a failure. It was not until 1932, when Franklin Delano Roosevelt was elected as the president of the US, that the real working solutions to the depression were implemented. The array of reforms enacted between 1933 and 1938 would be further known as the New Deal for American people (Oakes 725).
Roosevelt was trying hard to come up with a way to deal with the Great Depression, having gathered many intellectuals to help him in analyzing the situation. Oakes states that “Roosevelt has never allowed any of the groups to dominate his thinking” (727), often trying to find a solution based on multiple final compromise proposals. The first successful reform of the New Deal was the Emergency Banking Act, which reopened 12756 banks and solved the banking crisis. Further reforms regarding conservative banking practices and protection of deposits were implemented to ensure that the US banking system will be credible in a long run. Another successful program of the New Deal was the Tennessee Valley Authority, which helped to mitigate the farm crisis by controlling flooding, creating reservoirs for irrigation, and providing cheap hydroelectric power (Oakes 729).
However, the following enactments like the Indian Reorganization Act of 1934 or the National Industrial Recovery Act did not appear to be quite as successful as the previous reforms. Roosevelt’s respond to the critics was the introduction of the second wave of the New Deal in 1935. The first reform of the second hundred days was the Revenue Act proposed by Roosevelt to raise estate and corporate taxes. Roosevelt would also further introduce the questionable Work Progress Administration program, which was criticized on being politically corrupted and on introducing meaningful “make-work” jobs. However, despite the strong opposition and critique, the second wave of the New Deal has managed to fulfill many of its goals. Oakes states that “more Americans than ever before were protected from the ravages of unemployment, disability, poverty, and old age” (736).
The New Deal was definitely a step in the right direction towards mitigating the pernicious effects of the Great Depression. It did not end the Great Depression completely, but it surely helped to restore most of the US economy. Although the New Deal had its flaws in some of its projects, the overall positive effect of reforms was noticed by millions of people.
Works Cited
Oakes, James. “The Great Depression and the New Deal.” Of the People: A History of the United States. 2nd ed. Vol. 2. Oxford: Oxford UP, 2010. Print.
The election of Franklin D. Roosevelt as the President of the United States of America in 1932, only three years after the great depression, was in response to the need for peace amidst the population’s intense fears (Polenberg 54). During his re-election speech in 1936, Franklin claimed that his first term aimed at delivering this peace to the people.
To begin with, people felt insecure in their homes due to the “temporary nature of their jobs, the lack of profits, and the inability to make significant returns in their enterprises” (Polenberg 54). Secondly, people sought to have peace in the society at large, which would allow the “local government to provide the communities with needs such as sanitation, schools, and playgrounds, among others” (Polenberg 54).
Thirdly, Franklin noted that people yearned for global peace and “favorable relations between the US and other nations” (Polenberg 54). It is evident that, after four years as the president of the US, Franklin Roosevelt was fully aware of the needs of the American people. However, one may wonder whether he was aware of the people’s challenges when he assumed power in 1932.
Based on Roosevelt’s First Inaugural Address in March 1933, it is evident that he had a plan to change the devastating state of the American economy. According to Roosevelt, a part of the problem was due to the relief provided by the federal government. He argued that the issue of “food and cash for the delivery of minor jobs diminished the vitality of the people” (Polenberg 51).
Out of the five million unemployed citizens under the relief role, Roosevelt noted that only a third of the group was reliant on the state for their livelihood, before the great depression (Polenberg 51). With this in mind, he presented security legislation to the Congress that would see the needs of the one and a half million citizens, who were incapable of living independently, addressed.
This proposal sought to “empower the local communities and make the three and a half million people on relief, self-reliant, once again” (Polenberg 51). When he assumed the presidency in 1932, Franklin acknowledged the challenges of the nation, and also the way to get them out of the great depression. He urged the people to eliminate fear and believe in the possibility of better times.
Besides the change in ethics, Franklin also urged people to take action of the situation by being selfless in their dealings (Polenberg 41). The restoration process involved creating jobs for numerous unemployed people. The jobs would be provided by the government and the industries on a national scale, hence, ensuring decentralization of processes, and redistributing the growth process nationwide (Polenberg 41).
This would, in turn, “increase the purchasing power of individuals, which would add value to agricultural products and reduce farm losses” (Polenberg 42). Franklin also sought to reduce costs incurred in the relief activities by unifying the federal, State and local governments’ processes. This involved “central supervision and control of various utilities including transport and communication” (Polenberg 42).
In the endeavor to return people to work, Franklin also sought to avoid the recurrence of activities that led to the depression in the first place. He achieved this by ensuring “strict supervision of all banking and credits and investments” (Polenberg 42) to reduce speculation, and the provision of an adequate and proper currency (Polenberg 42).
In conclusion, it is evident that President Franklin D. Roosevelt had a plan to end the depression from the moment he stepped into office. This argument is supported by his claim that he had ended the involuntary idleness of thousands of young men three years earlier while addressing a crowd in Virginia in 1936 (Polenberg 65).
Works Cited
Polenberg, Richard D. The Era of Franklin D. Roosevelt, 1933-1945: A Brief History with Documents (Bedford Series in History & Culture). Boston : Bedford/St. Martin’s, 2000. Print.
American history is full of meaningful events that shaped the citizens’ spirit and the desire to develop and improve their living conditions. The period between 1929 and 1939 was known as the Great Depression and was characterized by severe economic changes and challenges due to poor government policies, bank failures, and supply collapses. When Franklin D. Roosevelt became the American President, he initiated several programs known as the New Deal to support financial reforms and social regulations as “the road to peace” (Radio address, n.d.). However, despite the intention to promote democracy and equality in the United States, the impact of the Great Depression was devastating, and the New Deal did not solve most problems among minorities. Negatively affected by the Great Depression, women and Native Americans obtained better options, while blacks and Hispanics could not achieve similar opportunities because of the governmental role in social and economic affairs as a part of the New Deal.
At the end of the 1920s, the Great Depression penetrated American society, but its impact varied among social groups. On the one hand, rich people (about 40% of the population) neither noticed serious changes in their business affairs nor helped other individuals solve their problems (America in the 1930s, n.d.). Therefore, one of the main goals of Roosevelt’s policy was “to struggle with the old enemies of peace – business and financial monopoly, speculation… class antagonism, sectionalism” (Radio address, n.d). One of the strongest issues in his speech was the appeal to Americans “who had eyes to see and hearts to understand” (Radio address, n.d.). It was not enough to recognize the problem but be ready to cooperate and find solutions. On the other hand, increased unemployment, low birth rates, lost incomes, and regular conflicts at different levels were obvious in most American families (America in the 1930s, n.d.). The Great Depression devasted people in a variety of ways: people lost their houses, lived in poverty, and starved, having no chance to change something. Roosevelt wanted to support the whole population, but his social priorities mostly depended on his political ambitions.
The New Deal was one of the most remarkable events in the history of the American economy that made it possible to end the Great Depression and integrate new solutions. The most evident achievements during the late 1930s were associated with improved employment conditions, wage growth, and purchasing powers (Dunleavy, 2018). Roosevelt explained that his campaign had to be defined “not as bitter but only as hard-fought” and underlined “the welfare of the United States of America” as his goal that contained “more than promises” (Radio address, n.d.). Therefore, the New Deal’s long-term legacies were related to ending human suffering, identifying the federal government roles, promoting economic well-being, and enhancing social security.
The impact of the Great Depression and the New Deal proved that not all minority groups could achieve similar benefits and enjoy the changes imposed by the government. Addressing Roosevelt’s speech, it was clear that the President wanted to support and offer “a will-o’-the-wisp” for despaired young men and women (Radio address, n.d.). He believed that the government could create the conditions under which both genders could obtain and use their education to eradicate poverty and inequality. The Great Depression empowered women in their new roles and the necessity of working outside the home (America in the 1930s, n.d.). Even black women could find new jobs, become domestic servants or clerks, and participate in domestic decision-making (America in the 1930s, n.d.). As soon as they earned money for their families’ well-being, they got hopes for a better future and control. The New Deal also supported Native Americans who experienced economic relief and political recognition within their communities (America in the 1930s, n.d.). It became possible to restore most of their land ownership and voting rights, which was a significant accomplishment for the United States.
Unfortunately, blacks and Hispanics were less lucky compared to women and Native Americans regarding employment and freedoms. The Great Depression made these minority groups leave their workplaces and be deported so that whites could find jobs as a part of the government’s support (America in the 1930s, n.d.). Besides, Roosevelt did not find it necessary to identify them as a separate group who deserved the right to change but mentioned farmers, men, women, children, and “other Americans of all parties and all faiths” (Radio address, n.d.). It seemed that Roosevelt tried to avoid racial debates not to lose his supporters in the South. However, he encouraged labor movements and fair competition, revealing new possibilities for black and Hispanic minorities (Dunleavy, 2018). The evaluation of the chosen historical events shows that the Great Depression was inevitable because of ingrained monopolies and deceits. Whereas the New Deal was an expected solution that led the current President to believe in peace and prosperity of the country.
I agree with major historical assessments of the New Deal and the impact of the Great Depression for their positive attitudes toward all people who lived in the United States in the 1930s. These events proved that education and employment should be promoted, and gender inequality was no longer a reason for debate. Economic instability, lost houses, and financial problems made people suffer, and Roosevelt wanted to support the population and show that improved working conditions and fair salaries were possible. Although blacks and Hispanics did not obtain similar opportunities to change their lives, the New Deal was a serious breakthrough for women and Native Americans.