The Death and Rebirth of The Death and Rebirth of Progressivism: 1917-1938Progressivism: 1917-1938

I. “Fatal to Our Form of Government I. “Fatal to Our Form of Government and American Ideals”: WWI on the and American Ideals”: WWI on the

Home FrontHome Front

A. War CapitalismA. War Capitalism MobilizationMobilization

unprecedented unprecedented involvementinvolvement

Food Administration Food Administration (produce + conserve); Fuel (produce + conserve); Fuel Administration (coal/gas)Administration (coal/gas) shortages at home shortages at home (inflation/black market)(inflation/black market)

War Industries Board: War Industries Board: purchases, allocated, set purchases, allocated, set prices (all on business prices (all on business adviceadvice huge profits); huge profits); standardization goodsstandardization goods

National War Labor National War Labor Board mediates + AFL Board mediates + AFL cooperatescooperates few few strikesstrikes

Enough men/ material Enough men/ material in E + full employment in E + full employment (but cost living up)(but cost living up)

Race riots (Chicago, Race riots (Chicago, July 27-Aug 2, 1919): July 27-Aug 2, 1919): “Negro invasion” (38 d, “Negro invasion” (38 d, 537 i)537 i)

Total # women work Total # women work not grow muchnot grow much change type of jobchange type of job 1,000s volunteer war 1,000s volunteer war

effort + Alice Paul and effort + Alice Paul and National Woman’s Party National Woman’s Party embarrassmentembarrassment passage 19thpassage 19th

Paid 1/3 taxes; 2/3 bonds/loansPaid 1/3 taxes; 2/3 bonds/loans debt $1B debt $1B (1914)(1914) $25B (1919) $25B (1919)

$33.5B cost; interest + vet benefits$33.5B cost; interest + vet benefits 3x 3x (Bonus Army)(Bonus Army)

““Once lead this people into Once lead this people into war and they’ll forget there war and they’ll forget there ever was a thing as ever was a thing as tolerance. To fight you must tolerance. To fight you must be brutal and ruthless, and be brutal and ruthless, and the spirit of ruthless brutality the spirit of ruthless brutality will enter into the very fibre will enter into the very fibre of our national life, infecting of our national life, infecting Congress, the courts, the Congress, the courts, the policeman on the beat, the policeman on the beat, the man in the street.”man in the street.”

Woodrow WilsonWoodrow Wilson April 1917April 1917

B. War DemocracyB. War Democracy

Wilson silence dissentWilson silence dissent Committee on Public Committee on Public Information (CPI)Information (CPI)

CPI sought mind mobilization CPI sought mind mobilization w/ propaganda:w/ propaganda:

Demonized GermanyDemonized Germany Urged self-censorship & spied Urged self-censorship & spied

on neighborson neighbors Vigilantes harassed German-Vigilantes harassed German-

AmericansAmericans State/ local governments, State/ local governments,

businesses, & colleges fired businesses, & colleges fired dissenters, banned German dissenters, banned German culture (sauerkrautculture (sauerkraut liberty liberty cabbage)cabbage)

Espionage Act (1917) banned Espionage Act (1917) banned treasonous (loosely defined) treasonous (loosely defined) material from mailmaterial from mail

Sedition Act (1918) banned Sedition Act (1918) banned criticism of USGcriticism of USG FBI to enforceFBI to enforce J. Edgar Hoover J. Edgar Hoover

USG crushed IWW, imprison USG crushed IWW, imprison Eugene V. Debs (socialist)Eugene V. Debs (socialist)

SchenckSchenck v. v. U.S.U.S. (1919): “clear (1919): “clear and present danger” and present danger”

Post-war: 4 million workers Post-war: 4 million workers strike (delayed demands) + strike (delayed demands) + growing black militancy growing black militancy (DuBois, vets) + Bolshevik (DuBois, vets) + Bolshevik Rev. (W sent troops)Rev. (W sent troops) “Red” “Red” summersummer Red Scare Red Scare

Post-War DepressionPost-War Depression

1920-21: post-war dislocations1920-21: post-war dislocations 24% fall GDP24% fall GDP

Relatively quick recoveryRelatively quick recovery Shaped attitudes Americans + Shaped attitudes Americans +

Hoover in 1929Hoover in 1929 1929 GDP falls only 12%, short recovery 1929 GDP falls only 12%, short recovery

before collapsebefore collapse

II. The Death of CapitalismII. The Death of CapitalismA. CausesA. Causes

1) ‘20s economy 1) ‘20s economy “overheating” (tech + “overheating” (tech + productivity justified?)productivity justified?) Fed Fed Reserve puts on brakes + Reserve puts on brakes + econ begins slowdown econ begins slowdown (housing, durable goods, (housing, durable goods, farm)farm) Fed overshoots Fed overshoots

“correction,” too little too “correction,” too little too late, other mistake late, other mistake (1937)(1937) length + depth length + depth

Monetary vs. fiscal policy Monetary vs. fiscal policy (Pres. doesn’t matter); (Pres. doesn’t matter); public rather than private public rather than private sector failuresector failure

Stock crash spreads tight Stock crash spreads tight money, not v. important money, not v. important cause (mostly psych) cause (mostly psych)

2) Global economy: 2) Global economy: 1) failure Versailles 1) failure Versailles + 2) gold standard + 2) gold standard (Am not Britain + (Am not Britain + limits fiscal limits fiscal response) + 3) response) + 3) tariffs + 4) leftist-tariffs + 4) leftist-gov’ts (jobs over gov’ts (jobs over gold) + 5) ag. gold) + 5) ag. glut= worldwide glut= worldwide crisiscrisis

B. B. Blame HooverBlame HooverBeliefs:Beliefs:

NotNot straight laissez-faire: the straight laissez-faire: the Great EngineerGreat Engineer

1) Opp. socialism1) Opp. socialism 2) “Self-made” man2) “Self-made” man 3) “American system” sound 3) “American system” sound

(1920s(1920s utopian): only utopian): only need “confidence” to reviveneed “confidence” to revive

4) Jeffersonian economic 4) Jeffersonian economic individualism + property individualism + property rightsrights no compel no compel voluntary action (saw voluntary action (saw success Sec’y Commerce)success Sec’y Commerce)

5) Foreign causes5) Foreign causes thinks thinks globally, can’t act locallyglobally, can’t act locally

11stst 60 Days 60 Days

Agricultural Marketing Act (1929): ag. co-Agricultural Marketing Act (1929): ag. co-ops sustain markets, Federal Farm Board ops sustain markets, Federal Farm Board buy glut sustain pricesbuy glut sustain prices Mix voluntary + direct intervention Mix voluntary + direct intervention

Prob.: a) missed WWI systemic; b) growing Prob.: a) missed WWI systemic; b) growing FFB surplus hangs over marketFFB surplus hangs over market lower lower pricesprices 1932: Cotton Corporation begs plow under 1932: Cotton Corporation begs plow under

(voluntary vs. AAA)(voluntary vs. AAA)

““All of Its Powers" All of Its Powers" Post-Crash advocated heavy Post-Crash advocated heavy

interventionintervention 1) Fed Reserve eases 1) Fed Reserve eases credit, 2) "the first shock must fall on credit, 2) "the first shock must fall on profits and not on wages" (pre-profits and not on wages" (pre-Keynesian: prop up consumption); 3) Keynesian: prop up consumption); 3) construction programsconstruction programs

Prob: 1) fed gov’t v. small: HH nearly Prob: 1) fed gov’t v. small: HH nearly 2x federal public works expenditures 2x federal public works expenditures but still much less state + private; 2) but still much less state + private; 2) wages highwages high greater unemployment greater unemployment

Reconstruction Finance Reconstruction Finance CorporationCorporation

Banking crisis (run)Banking crisis (run) 1931: National Credit 1931: National Credit

Corporation: association Corporation: association of banks (not enough)of banks (not enough)

1932: RFC: loans to 1932: RFC: loans to banksbanks Limited: 1) public listLimited: 1) public list

fear runs; 2) high cost to fear runs; 2) high cost to banks (collateral)banks (collateral)

Broke ideological barrier Broke ideological barrier to fed reliefto fed relief greater greater demandsdemands 20% unemployment (10 20% unemployment (10

million); Midwest 50-80% million); Midwest 50-80% (esp. big cities)(esp. big cities)

BlundersBlunders

1) Hawley-Smoot Tariff (1930) highest ever 1) Hawley-Smoot Tariff (1930) highest ever (protectionist/ “beggar-thy-neighbor”)(protectionist/ “beggar-thy-neighbor”) retaliatory tariff warretaliatory tariff war globalization of globalization of DepressionDepression

2) 1932: greatest tax hike US history (to 2) 1932: greatest tax hike US history (to point): balance budget ($2.7B, 60% point): balance budget ($2.7B, 60% expenditures; proportionally larger any ND expenditures; proportionally larger any ND budget) + hoped revitalize credit markets budget) + hoped revitalize credit markets (confidence + pay back debt)(confidence + pay back debt) poor hit poor hit hardesthardest

Death to the Great Death to the Great HumanitarianHumanitarian

3) Refused direct Fed aid to poor: a) 3) Refused direct Fed aid to poor: a) loss local control, b) undermine loss local control, b) undermine “confidence,” c) dole“confidence,” c) dole long-term long-term econ prob (Europe), d) undermine econ prob (Europe), d) undermine charactercharacter 1930 drought: $45M save AR livestock, 1930 drought: $45M save AR livestock,

resisted $25M feed farmers (loan; Red resisted $25M feed farmers (loan; Red Cross pick up slack)Cross pick up slack)

4) Bonus 4) Bonus Army/March/Expeditionary Army/March/Expeditionary

ForceForce June 1932: vets demand June 1932: vets demand

$1000 bonus (1945)$1000 bonus (1945) Congress denies, but Congress denies, but pays way home for mostpays way home for most

More militant stayMore militant stay vagrants, squatters, vagrants, squatters, HoovervillesHoovervilles police police riotriot federal cavalry federal cavalry (MacArthur, Eisenhower, (MacArthur, Eisenhower, Patton): tanks, tear gasPatton): tanks, tear gas

Claim made Claim made that Bonus that Bonus Army full of Army full of communists communists (untrue)(untrue)

Response Response fueled by rise fueled by rise of Hitler and of Hitler and militarism: US militarism: US revolution?revolution?

V. V. unpopularunpopular killed chances killed chances election 1932election 1932

New York Times New York Times (March (March 2, 1930): "No one in his 2, 1930): "No one in his place could have done place could have done more“more“

FDR adviser: "Practically FDR adviser: "Practically the whole New Deal was the whole New Deal was extrapolated from extrapolated from programs that Hoover programs that Hoover started… his policies started… his policies were substantially were substantially correct." correct."

C. Hoover C. Hoover EvaluatedEvaluated

Political Political ineptitude ineptitude stymied stymied successsuccess

Hoover unable Hoover unable to substantially to substantially break with old break with old order and order and thinkingthinking must must save system save system w/o violating w/o violating basic ideas of basic ideas of capitalism and capitalism and democracydemocracy

FDR far more FDR far more successful in successful in passing legislation passing legislation (at least until (at least until 1938)1938)

Willing to Willing to experiment with experiment with anything to save anything to save capitalism and capitalism and democracydemocracy

Began Began conservative (’32 conservative (’32 election: balance election: balance budget, budget, Prohibition), Prohibition), pushed to pushed to radicalism radicalism (Wagner Act, (Wagner Act, Social Security)Social Security)