HIST 2112 Lecture 12Outline of Last Lecture I. The Twenties and the “Return to Normalcy”A. An era of political conservatismB. An age of conflictII. An Economic Snapshot of the 1920sA. HUGE economic growth overallB. improved standards of livingC. exception – agriculture in troubleIII. The End of ProgressivismA. Warren G. Harding and “Normalcy”B. Calvin Coolidge: a Puritan in BabylonIV. The Rise of ConsumerismA. The automobileB. AdvertisingC. “Celebrity culture”V. A Culture of Conformity?A. Consumerism as freedom and “assimilating force”B. Consumerism as shallow materialisma) Sinclair Lewis and Babbit (1924)VI. Women and the Consumer LifestyleA. “women’s work”B. Consumerism and the tyranny of houseworkC. The “New Woman”a. the “Flapper” 1. Image versus Truth? The Flapper as nonradicalVII. Backlash against Modernism – The Rise of Fundamentalism and the KKKA. Fundamentalisma. Flappersb. Babbitts B. The “new” Ku Klux Klana. Old Klanb. New Klanc. Popular among farmers and small businessmen Outline of Current Lecture I. Franklin Delano RooseveltII. Hoover and the DepressionA. “Voluntary Cooperation”B. Reconstruction Finance CorporationC. FDR WINSa. Bonus ArmyIII. The New DealA. Five Agendas1. Relieve immediate Suffering2. Save banks, increase money supply3. Jumpstart industry4. Address the agricultural crisis5. “make-work” programs B. Federal Emergency Relief Act (FERA)C. The Banking Act of 1933a. FDICD. National Recovery Agency (NRA)E. Agricultural Adjustment Act (AAA)F. Make-Work Programsa. Civilian Conservation Corps (CCC)b. Works Progress Administration (WPA)c. Tennessee Valley Authority (TVA)IV. Other Important New Deal ProgramsA. Securities Exchange Commission (SEC)B. Social Security ActC. Wagner Act of 1935 and the NLRBV. Backlash against the New DealA. Conservative BusinessmenB. RadicalsC. Others1. Townsend Clubs2. Huey Long and Father Charles Coughlina. Why??Current Lecture: A New Deal for America- 25% overall unemployment in the 1920s.- People might turn to fascism and capitalism in the 1930s?- 1929: Depression Starts… 1932: Rock Bottom of DepressionI. Franklin Delano Roosevelt: American Savior or American Satan?- 1930s: Europe gets Hitler, We get Roosevelt - The most important president of the 20th century because of him and his advisors- Millions of people idealize FDR… He is a hero/saint- Smaller group HATES him…- FDR & the new dealers forever changed the nature of government in the US- Government used to be small/powerless… Republican was for larger govn’t- 1930s starts our large government: NEW DEAL- The idea motivating FDR & His advisors is the idea that the government can and should exercise its power for social/economic improvement- Make the playing field level for everyone!!- The idea that government has a role & duty is the core of modern liberalism- Progressivism is back as the NEW DEAL- FDR: He was a reluctant liberal- from an older era and wasn’t always comfortable with the things he set in place… spending, consequences of government aid- His sense was that this was a different kind of collapse… he was right.II. Hoover and the Depression: the Laissez-Faire Approach- president after Calvin Coolidge in 1928- Was a progressive republican & VERY popular- Wrong place at wrong time, start of depression because people & corporations get (too much) loans & can’t afford them- “Trust me, prosperity is just around the corner”- Laissez-Fair Approach: When the government is ruining, you just let it go because it’lljust work itself out… This is the REAL DEAL though… He doesn’t realize it.A. “Voluntary Cooperation”: begging people to do the right thing… the heads of corporations to not fire employees… don’t cut wages or hours… had great believability in people…- Aid needs to come from churches, etc...- If you give people aid, you turn them into dependentB. Reconstruction Finance Corporation (RFC) 1930: it authorized government loans of 3 billion dollars to be given to businesses and banks to then be distributed downward to jumpstart the economy- violates his ideology, he hates doing it though- Good idea, but grossly inadequate… needs WAY more than 3 billion to get out of this collapse- It’s so top down because you gave the money to the people at the top & not the people who need it at the bottom- people get ANGRY with Hoover!!C. FDR WINS: March 1932: HH only wins over five small states (7million vote difference) (472/59) a. Bonus Army: WWI vets get money from the government in 1945 for their service so they can live comfortably in their old age… the economycollapses before then and they might not get the money… they want their bonuses early! – March on Washington. – live in Hoovervilles. – Political liability, Hoover wants them to go away. – Finally, he orders to US military to get them out of Washington, sends in Gen. Douglas McArthur… He disperses them from capital and shoots at them with tanks and guns until they leave (DISASTER FOR H.H.)III. The New Deal: programs that Roosevelt & his advisors set in placeA. Five Agendas1. Relieve immediate Suffering: - People are dying from malnourishment 2. Save banks, increase money supply- Stop banks from dying- When the economy collapses, everyone who owes the bank money can’t pay it back, so the bank is screwed- Don’t loan money anymore- Banks go under and disappear - If your life saving are in a bank and they go under, then you are screwed. You have absolutely nothing. 3. Jumpstart industry- Get factories going- Eliminate competition and unions… 4. Address the agricultural crisis- Help farmers5. “make-work” programs to restore morale: - Get people to have a positive outlook by giving them workB. Federal Emergency Relief Act (FERA): Federal government literally gave money to states and used that money for the EXTREME poor people so they could buy food(TWICE)… this stops immediate suffering (1) C. The Banking Act of 1933: Hoover came up with this plan- 8 days of saved capitalism… banks are closed on holiday… government investigators go in and investigate health of every single bank to see how bad it is… Banks that arehealthy can re-open, the others will be re-organized/capitalized until they are healthy or die. - 25% are very unhealthy- Makes you feel better about the banksa. FDIC and the “Glass-Steagall”: Federal Deposit Insurance Corporation… Your saving is insured