THEME 1 : CHALLENGES TO DEMOCRACY, RISE OF TOTALITARIANISM AND
WW2
Chapter 1 : The economic and social impact of the 1930s Depression
1920s : Republicans →isolationism (=military) + protectionism (=economic)
“Return to Normalcy” →back to national interests, business
Presidents : Warren G. Harding, Calvin Coolidge, Herbert Hoover
Roaring Twenties and Jazz Age
→Bubble burst : 1/ corporate prices flattened, yet stock prices kept on rising 2/ credit-fueled
consumerism, 3/speculative investing, 4/inequality, overproduction, buying on margin,
federal reserve raised interest rates
→economy falls apart crash october 1929 →precipitated a depression
+America’s weak banking system →credit froze up →deflation
→1929-1939 : Great Depression
1933 : 13 million people unemployed (some cities reached 75%)
Hoover did little to address the crisis →commitment to individualism and belief that gov.
Should not play an aggressive role in an economic bailout
→all he did was Reconstruction Finance Corporation →little impact to reduce unemployment
1933 : republicans vote for Franklin D. Roosevelt (FDR) = democrat
- He promised “action, and action now”
-The bully pulpit is the president’s power to speak directly to the people to promote
policies, influence public opinion, and indirectly push Congress or state governments to act.
→Fireside Chats
- The First Hundred Days
→Emergency banking Act authorized the Federal Reserve Board (governing body
of the Federal Reserve System, which is the central bank of the United States) to issue new
bank notes, allowed the reopening of banks that had adequate assets, and arranged for the
reorganization of those that did not
→big government = more power and involvement of the federal government in
people’s lives and the economy
→Republicans in congress hate this at it is a move away from the older
transition of “laissez-faire”
- too much power for Washington and the president
- feared it would reduce individual freedom and lead to dependency on
the state
- They argued it was too expensive and would require higher taxes
- Some said it looked like socialism because the government was doing
things usually left to private businesses
, EX : Ronald Reagan from 1981 inaugural address : “Government is not the
solution to our problem; government is the problem”
→Reagan argued that overregulation, high taxes, and too much federal control
were hurting the economy and individual freedom.
→New Deal :
Relief (Programs like the Civilian Conservation Corps (CCC) and Works Progress
Administration (WPA) directly hired millions of unemployed people + Federal Emergency
Relief Administration
Recovery The government invested in infrastructure (roads, dams, schools) and supported
industries and farmers - NRA
Reform (Creation of Social Security (pensions, unemployment insurance) Banking reforms
(FDIC to protect savings, SEC to regulate Wall Street) Labor protections (right to unionize).
= Alphabet Agencies
- National Recovery Act (NRA) - worked with businesses to set fair wages, prices, and
working conditions.
- Tennessee Valley Authority (TVA) – built dams and power plants, providing
electricity and flood control in the South.
- system of autarky = to make your country self-sufficient, no need traid or aid =
protectionism + good economy
The New Deal Legacy - how it changed and affected the US long term
● Trust in the government increased — FDR’s Fireside Chats symbolized a more
personal connection between citizens and the state.
● The New Deal normalized federal intervention as a legitimate tool for solving
economic and social problems.
● Inspired The Great Society by Lyndon B. Johnson
○ Focused on civil rights and poverty
● Carter : deregulation = letting markets run with less government control
● Social safety net : pensions, unemployment insurance, aid to disabled/dependents
→inspired Medicare
● Created a new democratic coalition and saved capitalism and put ppl back to work
● Restored a sense of security as it put people back to work
● Rebuilt the infrastructure of the US, providing a network of schools, hospitals, and
roads that sered us well for the next 70 years.
WW2
Chapter 1 : The economic and social impact of the 1930s Depression
1920s : Republicans →isolationism (=military) + protectionism (=economic)
“Return to Normalcy” →back to national interests, business
Presidents : Warren G. Harding, Calvin Coolidge, Herbert Hoover
Roaring Twenties and Jazz Age
→Bubble burst : 1/ corporate prices flattened, yet stock prices kept on rising 2/ credit-fueled
consumerism, 3/speculative investing, 4/inequality, overproduction, buying on margin,
federal reserve raised interest rates
→economy falls apart crash october 1929 →precipitated a depression
+America’s weak banking system →credit froze up →deflation
→1929-1939 : Great Depression
1933 : 13 million people unemployed (some cities reached 75%)
Hoover did little to address the crisis →commitment to individualism and belief that gov.
Should not play an aggressive role in an economic bailout
→all he did was Reconstruction Finance Corporation →little impact to reduce unemployment
1933 : republicans vote for Franklin D. Roosevelt (FDR) = democrat
- He promised “action, and action now”
-The bully pulpit is the president’s power to speak directly to the people to promote
policies, influence public opinion, and indirectly push Congress or state governments to act.
→Fireside Chats
- The First Hundred Days
→Emergency banking Act authorized the Federal Reserve Board (governing body
of the Federal Reserve System, which is the central bank of the United States) to issue new
bank notes, allowed the reopening of banks that had adequate assets, and arranged for the
reorganization of those that did not
→big government = more power and involvement of the federal government in
people’s lives and the economy
→Republicans in congress hate this at it is a move away from the older
transition of “laissez-faire”
- too much power for Washington and the president
- feared it would reduce individual freedom and lead to dependency on
the state
- They argued it was too expensive and would require higher taxes
- Some said it looked like socialism because the government was doing
things usually left to private businesses
, EX : Ronald Reagan from 1981 inaugural address : “Government is not the
solution to our problem; government is the problem”
→Reagan argued that overregulation, high taxes, and too much federal control
were hurting the economy and individual freedom.
→New Deal :
Relief (Programs like the Civilian Conservation Corps (CCC) and Works Progress
Administration (WPA) directly hired millions of unemployed people + Federal Emergency
Relief Administration
Recovery The government invested in infrastructure (roads, dams, schools) and supported
industries and farmers - NRA
Reform (Creation of Social Security (pensions, unemployment insurance) Banking reforms
(FDIC to protect savings, SEC to regulate Wall Street) Labor protections (right to unionize).
= Alphabet Agencies
- National Recovery Act (NRA) - worked with businesses to set fair wages, prices, and
working conditions.
- Tennessee Valley Authority (TVA) – built dams and power plants, providing
electricity and flood control in the South.
- system of autarky = to make your country self-sufficient, no need traid or aid =
protectionism + good economy
The New Deal Legacy - how it changed and affected the US long term
● Trust in the government increased — FDR’s Fireside Chats symbolized a more
personal connection between citizens and the state.
● The New Deal normalized federal intervention as a legitimate tool for solving
economic and social problems.
● Inspired The Great Society by Lyndon B. Johnson
○ Focused on civil rights and poverty
● Carter : deregulation = letting markets run with less government control
● Social safety net : pensions, unemployment insurance, aid to disabled/dependents
→inspired Medicare
● Created a new democratic coalition and saved capitalism and put ppl back to work
● Restored a sense of security as it put people back to work
● Rebuilt the infrastructure of the US, providing a network of schools, hospitals, and
roads that sered us well for the next 70 years.
