I thought you might enjoy this. It is a term paper I helped my son to research:
Political Responses to the Great Depression
The Great Depression came about at the end of the 1920’s, beginning with the stock
market crash of ‘29. The crisis in the market helped to produce a problem with banks, as many
people had borrowed “on margin” to buy stock, with very little down- payment, and many could
not repay their loans. Panic among bank depositors caused more and more banks to fail, and this
made an industrial slowdown even worse. Because of the bank failures, there was less money to
buy things, and less to loan for businesses to handle problems. More and more businesses failed,
or had to lay people off to survive.
President Hoover tried various programs, some of which were beginning to help, it
seemed, but they ultimately ended in failure because of a credit crisis in Europe, based upon the
payment of war loans and reparations. This affected some large American banks, and those
businesses dependent upon exports. The Depression spread throughout the world and
strengthened radical political movements in many countries. In many places, Communists and
fascist- style parties were fighting in the streets. In Germany, the Nazis actually took power.
In the United States, there was social turmoil and the rise of similar movements. Then
Roosevelt became president and helped reassure people with commitment to a New Deal.
Because the Depression caused a lot of unrest, strengthened radical political movements of the
Left and Right, and lasted so long, the country was in danger of a major political crisis. The way
the crisis was averted was by the hope given to the country by the activism of the New Deal, and
the willingness of Franklin Roosevelt and his advisors to try moderate versions of programs
advocated by the radical parties....
Few conservatives fell into the trap of fascism, and no important group of businessmen supported
any of the would- be leaders of a reactionary revolt. They greatly enlarged their support of the
National Association of Manufacturers and the Chamber of Commerce, and for a time after 1934
poured out funds to the Liberty League. These organizations, however, devoted their propaganda
to seeking only a change in governmental policies. As an example of the growing moderation,
The National Farmers’ Union won some influence as the spokesmen of small farmers, tenants,
and sharecroppers. But the Tenants’ and Sharecroppers’ Union, which was influenced by
Communists, failed to gain support....
It is difficult to gauge how severe the political crisis might have become had it not been for the
New Deal. But considering the degree of confidence that Roosevelt generally enjoyed, despite
the persistence of the Depression throughout the ‘30s, it is plausible that popular passion could
have been exploited by true demagogues. Roosevelt won three terms during the Depression, and
a fourth during the War. Yet unemployment was 10 million in ‘38, 9 million in ‘39, and 8.5
million in ‘40. Unemployment had been 8 million in 1931, and 12 million in 1932, so there was
no dramatic improvement.
This public confidence was won partly by Roosevelt’s personality and his “fireside
chats”, using the radio to talk to Americans in terms they could understand about the problems
they faced. But a lot of it was the sense that the Administration was doing all it could, that
Roosevelt was willing to experiment in order to address a strange, disturbing economic
landscape, where men, through the operation of impersonal forces, and despite hard work,
honesty, and thrift, were being thrown out of work or off of their farms, unable to care for their
families. People were scared, the Left declared that capitalism had finally collapsed, and the far
Right blamed alien forces, such as Catholics and Jews, for conspiring against the nation.
Roosevelt gave people hope that capitalism was not collapsing, that things would get on track
again, and called Americans to unite without scapegoating.
Thus, Roosevelt helped to steady the nation, first in response to the Depression, and later
in the crisis of the Second World War. |
