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

2. I. “Fatal to Our Form of Government and American Ideals”: WWI on the Home Front A. War Capitalism Mobilization  unprecedented involvement Mobilization  unprecedented involvement Food Administration (produce + conserve); Fuel Administration (coal/gas)  shortages at home (inflation/black market) Food Administration (produce + conserve); Fuel Administration (coal/gas)  shortages at home (inflation/black market) War Industries Board: purchases, allocated, set prices (all on business advice  huge profits); standardization goods War Industries Board: purchases, allocated, set prices (all on business advice  huge profits); standardization goods

3. National War Labor Board mediates + AFL cooperates  few strikes National War Labor Board mediates + AFL cooperates  few strikes Enough men/ material in E + full employment (but cost living up) Enough men/ material in E + full employment (but cost living up) Race riots (Chicago, July 27-Aug 2, 1919): “Negro invasion” (38 d, 537 i) Race riots (Chicago, July 27-Aug 2, 1919): “Negro invasion” (38 d, 537 i) Total # women work not grow much  change type of job Total # women work not grow much  change type of job 1,000s volunteer war effort + Alice Paul and National Woman’s Party embarrassment  passage 19th 1,000s volunteer war effort + Alice Paul and National Woman’s Party embarrassment  passage 19th

4. Paid 1/3 taxes; 2/3 bonds/loans  debt $1B (1914)  $25B (1919) Paid 1/3 taxes; 2/3 bonds/loans  debt $1B (1914)  $25B (1919) $33.5B cost; interest + vet benefits  3x (Bonus Army) $33.5B cost; interest + vet benefits  3x (Bonus Army)

7. “Once lead this people into war and they’ll forget there ever was a thing as tolerance. To fight you must be brutal and ruthless, and the spirit of ruthless brutality will enter into the very fibre of our national life, infecting Congress, the courts, the policeman on the beat, the man in the street.” Woodrow Wilson April 1917 April 1917 B. War Democracy

8. Wilson silence dissent  Committee on Public Information (CPI) Wilson silence dissent  Committee on Public Information (CPI) CPI sought mind mobilization w/ propaganda: CPI sought mind mobilization w/ propaganda: Demonized Germany Demonized Germany Urged self-censorship & spied on neighbors Urged self-censorship & spied on neighbors Vigilantes harassed German- Americans Vigilantes harassed German- Americans State/ local governments, businesses, & colleges fired dissenters, banned German culture (sauerkraut  liberty cabbage) State/ local governments, businesses, & colleges fired dissenters, banned German culture (sauerkraut  liberty cabbage)

9. Espionage Act (1917) banned treasonous (loosely defined) material from mail Espionage Act (1917) banned treasonous (loosely defined) material from mail Sedition Act (1918) banned criticism of USG Sedition Act (1918) banned criticism of USG FBI to enforce  J. Edgar Hoover FBI to enforce  J. Edgar Hoover USG crushed IWW, imprison Eugene V. Debs (socialist) USG crushed IWW, imprison Eugene V. Debs (socialist) Schenck v. U.S. (1919): “clear and present danger” Schenck v. U.S. (1919): “clear and present danger” Post-war: 4 million workers strike (delayed demands) + growing black militancy (DuBois, vets) + Bolshevik Rev. (W sent troops)  “Red” summer  Red Scare Post-war: 4 million workers strike (delayed demands) + growing black militancy (DuBois, vets) + Bolshevik Rev. (W sent troops)  “Red” summer  Red Scare

10. Post-War Depression 1920-21: post-war dislocations  24% fall GDP 1920-21: post-war dislocations  24% fall GDP Relatively quick recovery Relatively quick recovery Shaped attitudes Americans + Hoover in 1929 Shaped attitudes Americans + Hoover in 1929 1929 GDP falls only 12%, short recovery before collapse 1929 GDP falls only 12%, short recovery before collapse

11. II. The Death of Capitalism A. Causes 1) ‘20s economy “overheating” (tech + productivity justified?)  Fed Reserve puts on brakes + econ begins slowdown (housing, durable goods, farm) 1) ‘20s economy “overheating” (tech + productivity justified?)  Fed Reserve puts on brakes + econ begins slowdown (housing, durable goods, farm) Fed overshoots “correction,” too little too late, other mistake (1937)  length + depth Fed overshoots “correction,” too little too late, other mistake (1937)  length + depth Monetary vs. fiscal policy (Pres. doesn’t matter); public rather than private sector failure Monetary vs. fiscal policy (Pres. doesn’t matter); public rather than private sector failure Stock crash spreads tight money, not v. important cause (mostly psych) Stock crash spreads tight money, not v. important cause (mostly psych)

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

13. B. Blame Hoover Beliefs: Not straight laissez-faire: the Great Engineer 1) Opp. socialism 1) Opp. socialism 2) “Self-made” man 2) “Self-made” man 3) “American system” sound (1920s  utopian): only need “confidence” to revive 3) “American system” sound (1920s  utopian): only need “confidence” to revive 4) Jeffersonian economic individualism + property rights  no compel  voluntary action (saw success Sec’y Commerce) 4) Jeffersonian economic individualism + property rights  no compel  voluntary action (saw success Sec’y Commerce) 5) Foreign causes  thinks globally, can’t act locally 5) Foreign causes  thinks globally, can’t act locally

14. 1 st 60 Days Agricultural Marketing Act (1929): ag. co-ops sustain markets, Federal Farm Board buy glut sustain prices Agricultural Marketing Act (1929): ag. co-ops sustain markets, Federal Farm Board buy glut sustain prices Mix voluntary + direct intervention Mix voluntary + direct intervention Prob.: a) missed WWI systemic; b) growing FFB surplus hangs over market  lower prices Prob.: a) missed WWI systemic; b) growing FFB surplus hangs over market  lower prices 1932: Cotton Corporation begs plow under (voluntary vs. AAA) 1932: Cotton Corporation begs plow under (voluntary vs. AAA)

15. “All of Its Powers" Post-Crash advocated heavy intervention  1) Fed Reserve eases credit, 2) "the first shock must fall on profits and not on wages" (pre-Keynesian: prop up consumption); 3) construction programs Post-Crash advocated heavy intervention  1) Fed Reserve eases credit, 2) "the first shock must fall on profits and not on wages" (pre-Keynesian: prop up consumption); 3) construction programs Prob: 1) fed gov’t v. small: HH nearly 2x federal public works expenditures but still much less state + private; 2) wages high  greater unemployment Prob: 1) fed gov’t v. small: HH nearly 2x federal public works expenditures but still much less state + private; 2) wages high  greater unemployment

16. Reconstruction Finance Corporation Banking crisis (run) Banking crisis (run) 1931: National Credit Corporation: association of banks (not enough) 1931: National Credit Corporation: association of banks (not enough) 1932: RFC: loans to banks 1932: RFC: loans to banks Limited: 1) public list  fear runs; 2) high cost to banks (collateral) Limited: 1) public list  fear runs; 2) high cost to banks (collateral) Broke ideological barrier to fed relief  greater demands Broke ideological barrier to fed relief  greater demands 20% unemployment (10 million); Midwest 50-80% (esp. big cities) 20% unemployment (10 million); Midwest 50-80% (esp. big cities)

18. Blunders 1) Hawley-Smoot Tariff (1930) highest ever (protectionist/ “beggar-thy-neighbor”)  retaliatory tariff war  globalization of Depression 1) Hawley-Smoot Tariff (1930) highest ever (protectionist/ “beggar-thy-neighbor”)  retaliatory tariff war  globalization of Depression 2) 1932: greatest tax hike US history (to point): balance budget ($2.7B, 60% expenditures; proportionally larger any ND budget) + hoped revitalize credit markets (confidence + pay back debt)  poor hit hardest 2) 1932: greatest tax hike US history (to point): balance budget ($2.7B, 60% expenditures; proportionally larger any ND budget) + hoped revitalize credit markets (confidence + pay back debt)  poor hit hardest

19. Death to the Great Humanitarian 3) Refused direct Fed aid to poor: a) loss local control, b) undermine “confidence,” c) dole  long-term econ prob (Europe), d) undermine character 3) Refused direct Fed aid to poor: a) loss local control, b) undermine “confidence,” c) dole  long-term econ prob (Europe), d) undermine character 1930 drought: $45M save AR livestock, resisted $25M feed farmers (loan; Red Cross pick up slack) 1930 drought: $45M save AR livestock, resisted $25M feed farmers (loan; Red Cross pick up slack)

20. 4) Bonus Army/March/Expeditionary Force June 1932: vets demand $1000 bonus (1945)  Congress denies, but pays way home for most June 1932: vets demand $1000 bonus (1945)  Congress denies, but pays way home for most More militant stay  vagrants, squatters, Hoovervilles  police  riot  federal cavalry (MacArthur, Eisenhower, Patton): tanks, tear gas More militant stay  vagrants, squatters, Hoovervilles  police  riot  federal cavalry (MacArthur, Eisenhower, Patton): tanks, tear gas

21. Claim made that Bonus Army full of communists (untrue) Claim made that Bonus Army full of communists (untrue) Response fueled by rise of Hitler and militarism: US revolution? Response fueled by rise of Hitler and militarism: US revolution? V. unpopular  killed chances election 1932 V. unpopular  killed chances election 1932

22. New York Times (March 2, 1930): "No one in his place could have done more“ New York Times (March 2, 1930): "No one in his place could have done more“ FDR adviser: "Practically the whole New Deal was extrapolated from programs that Hoover started… his policies were substantially correct." FDR adviser: "Practically the whole New Deal was extrapolated from programs that Hoover started… his policies were substantially correct." C. Hoover Evaluated

23. Political ineptitude stymied success Political ineptitude stymied success

24. Hoover unable to substantially break with old order and thinking  must save system w/o violating basic ideas of capitalism and democracy Hoover unable to substantially break with old order and thinking  must save system w/o violating basic ideas of capitalism and democracy

25. FDR far more successful in passing legislation (at least until 1938) FDR far more successful in passing legislation (at least until 1938) Willing to experiment with anything to save capitalism and democracy Willing to experiment with anything to save capitalism and democracy Began conservative (’32 election: balance budget, Prohibition), pushed to radicalism (Wagner Act, Social Security) Began conservative (’32 election: balance budget, Prohibition), pushed to radicalism (Wagner Act, Social Security)