HIST 2112 Lecture 12 Outline of Last Lecture I The Twenties and the Return to Normalcy A An era of political conservatism B An age of conflict II An Economic Snapshot of the 1920s A HUGE economic growth overall B improved standards of living C exception agriculture in trouble III The End of Progressivism A Warren G Harding and Normalcy B Calvin Coolidge a Puritan in Babylon IV The Rise of Consumerism A The automobile B Advertising C Celebrity culture V A Culture of Conformity A Consumerism as freedom and assimilating force B Consumerism as shallow materialism a Sinclair Lewis and Babbit 1924 VI Women and the Consumer Lifestyle A women s work B Consumerism and the tyranny of housework C The New Woman a the Flapper 1 Image versus Truth The Flapper as nonradical VII Backlash against Modernism The Rise of Fundamentalism and the KKK A Fundamentalism a Flappers b Babbitts B The new Ku Klux Klan a Old Klan b New Klan c Popular among farmers and small businessmen Outline of Current Lecture I Franklin Delano Roosevelt II Hoover and the Depression III IV V A Voluntary Cooperation B Reconstruction Finance Corporation C FDR WINS a Bonus Army The New Deal A Five Agendas 1 Relieve immediate Suffering 2 Save banks increase money supply 3 Jumpstart industry 4 Address the agricultural crisis 5 make work programs B Federal Emergency Relief Act FERA C The Banking Act of 1933 a FDIC D National Recovery Agency NRA E Agricultural Adjustment Act AAA F Make Work Programs a Civilian Conservation Corps CCC b Works Progress Administration WPA c Tennessee Valley Authority TVA Other Important New Deal Programs A Securities Exchange Commission SEC B Social Security Act C Wagner Act of 1935 and the NLRB Backlash against the New Deal A Conservative Businessmen B Radicals C Others 1 Townsend Clubs 2 Huey Long and Father Charles Coughlin a 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 Depression I 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 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 ll just 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 dependent B 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 II III 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 economy collapses 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 The New Deal programs that Roosevelt his advisors set in place A Five Agendas 1 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 farmers 5 make work programs to restore morale Get people to have a positive outlook by giving them work B 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 are healthy 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 banks IV V a FDIC and the Glass Steagall Federal Deposit Insurance Corporation Your saving is insured if the banks crash Glass Steagall designed to separate commercial banking from industrial banking 1996 eliminated D National Recovery Agency NRA voluntary CLUB labor unions factory owners government come together to work out issues so everybody s happy set wages prices etc nobody really likes NRA supreme court rules it s unconstitutional E Agricultural Adjustment Act AAA plan to save