Lecture I: From the Great Depression to the Second World War
The Great Depression
- By 1933, 13 million workers were unemployed – 25 percent of the total workforce.
- Unemployment in some cities was as high as 75 percent.
- Biggest economic down turn so far in American history.
During Hoover the government did not intervene in the economy. Because this was the
belief, that if the government intervened it would create more instead of less problems.
Roosevelt (1933-1945) believed differently –> New Deal
‘’The only fear we have to fear is fear itself.’’ A famous line that represents how Roosevelt
approached the Great Depression.
New Deal:
- A series of domestic programs enacted by the Roosevelt administration between
1933 and 1939.
- Goals: (the 3 R’s of the New Deal)
- Immediate economic relief
- Stimulate economic recovery
- Reforms in industry, agriculture, finance, labor, and housing
Breaking down the New Deal in 2 parts
First New Deal 1933-1934
- Banking and Finance (create new regulations so that the Americans will regain
confidence in banking and finance. So they no longer keep their money under their
bed but put it in the bank.)
- The Federal gov insured the bank deposits of average citizens
- Prevented commercial banks from engaging in investment banking
- Created the Securities and Exchange Commission to regulate financial markets
- Relief and Jobs
- Cash allocations to states for immediate payments to the unemployed
- Federal jobs for unemployed men
- Agriculture and Industry
- Subsidies to prevent farm over-production
- Fair codes of competition for industry to regulate prices and wages
The Second New Deal 1935-1938
- After Roosevelt’s first term he received critics from the left and the right.
- Right – Roosevelt’s tries to destroy capitalism and create socialism (ofc not true he’s
a capitalist) (Doing too much)
, - (Far) Left – Said that the gov has to do much more to protect workers. (Doing too
little)
- In response to critics, FDR embraced progressive legislation. He moved further to the
left which led to the 2nd New Deal.
-
The Works Progress Administration (WPA) (1935)
- Federal government program that employed millions of job-seekers to carry out
public works projects. (such as building roads, buildings, airports, etc.)
- This project was very unique in American history considering the role that the laissez-
faire role that the government had always played.
The Wagner Act (1935)
- Official name: the National Labor Relations Act
- Guaranteed labor unions the right to organize and bargain collectively (the right to
get together as a union and the right to bargain with the boss)
- Established the National Labor Relations Board to enforce these rights
- The federal government was never seen as an ally of the workers before this act.
Now it was.
- The union membership increased dramatically, more than 13 million American
workers in unions.
The Social Security Act (1935)
- Foundational to the modern (current) American welfare state.
- A pension for retired American workers
- Unemployment compensation
- Relief measures for mothers with dependent children
- Funded by withdrawing money from worker’s paychecks (basically taxes) and
depositing it into a trust fund.
What did the New Deal NOT do?
- It did NOT end the Great Depression, it did not bring about a full economic recovery.
The 2nd World War ended it.
- It did NOT significantly redistribute the U.S. national income.
- The New Deal did not challenge private ownership
The New Deal and African Americans
- African Americans were intentionally excluded from many New Deal programs.
Mainly because Roosevelt needed Southern Democrats to get his legislations
through. (Southern segregation)
- Women were also largely excluded, the New Deal mainly targeted white working
men.
,Legacy of the New Deal?
- The New Deal: Security
- Provided jobs
- Guaranteed deposits in individual bank accounts
- Stock market transparency
- Safety net for the unemployed and elderly
- Recognized unions’ right to bargain collectively
- Human Rights
- The New Deal’s emphasis on social and economic justice contributed to the U.S.
support for human rights in the 1940s.
The Great Exception?
- Only during the New Deal this type of government was done. After it has declined
again. A way of governing similar to before the New Deal.
- Was the New Deal an exception in the broad sweep in American history?
- E: Trump, an era with very limited worker rights, etc. What will happen now that
Biden is in the White House? His policies look much more like the New Deal type
policies compared to Mr. Donald.
Tutorial 1 prep:
Article: Luce
Main problem which Americans face: Isolationism versus Internationalism. The cure to this
problem? To accept wholeheartedly our duty and our opportunity as the most powerful and
vital nation in the world and in consequence to exert upon the world the full impact of our
influence, for such purposes as we see fit and by such means as we see fit. P.165. America’s
participation is deeply needed for the shaping of the future of America and the world. P.166.
Roosevelt ran isolationist policies. What about the internationalism? It must be an
internationalism of the people, by the people and for the people. P.168
- The American Century = a century in which America fulfills its major role/duty on the
world stage.
Article: Brinkley
Legacies of WW2: One legacy was the return of abundance (overvloed, maar in dit geval
meer wealth) and with it the relegitimization of capitalism. P.18 Another was a rising popular
expectation of economic security and material comfort – ‘’The American Dream’’ – which
rested on visions of increasing consumption. P.18 This dream meant more than apple pie
alone. Democracy was part of the mix. Defining what democracy meant created some of the
greatest struggles of both wartime and the postwar era. Problems such as divided opinions
about New Deal type policies. Republicans did not want this, democrats did. The exclusion of
African Americans – one of the biggest problems to this day – the racial divide. The failure of
American society to extend its riches to its black citizens. But this was also a moral dilemma,
a problem in the hearts and minds of white Americans. Another legacy: the war inspired
, those who believed in racial equality to reconsider the nation’s customs and institutions. It
also inspired those who defended white supremacy with renewed ardor. E; many southeners
considered the war a confirmation of their commitment to preserving the old racial order.
To them democracy meant their right to order their society as they pleased and to sustain
the customs and institutions they had always known. (hier zie je weer die verschillende
meningen over wat democratie is) p.21 ‘’World War II changed… p. 22 = goede zin. Another
legacy of the War: it changed the role of women in America. In the absence of men nearly six
million women joined the workforce during WW2. P22 In the absence of men many women
lived, worked and traveled alone for the first time in their lives. However a paradox existed,
where soldiers named their vehicles after women, where women served as enterntainment
for the soldiers. The role of the women grew more independent while at the same time
traditional women roles were reinforced – a paradox. Ook p.24 einde voor nog een paradox.
Strong independent women vs traditional women.
Lecture II: From the Second World War to the Cold War
Part 1: WW2
How did WW2 affect the American economy?
- The war created a huge demand for industrial and agricultural production, and
military mobilization.
- It took the US out of the Great Depression
- Within a year of the US entry into the conflict, unemployment basically disappeared
with 17 million new jobs opening up during the war!
Who benefited from US war mobilization?
- Private Companies on US government contracts
Only a 100 companies received a 160 billion dollars of war contracts out of a total of
240 billion dollars worth of war contracts. 10 companies received 30 percent of the
total.
- Workers
- Women (jobs that had been formerly held by women now became available to
women – industry jobs, but even government jobs, etc. (Jobs reserved for men) ) The
total women labor force increased by 65 percent.
This started reshaping the women norms and rights (just slightly)
- African Americans – same as the women. The war opened up new opportunities
(mainly work) for African Americans and women.
- BUT: At the same time (also counts for women) their gains were limited. E;
segregated in the military, lower wages, fired after the war, etc.
Legacy of World War II (fits in with Brinkley’s article)
- WW2 created enormous change in the US, pulling the nation out of the Great
Depression and stimulating immense changes to the traditional order
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