Ch19Palm - Ch XIX Democracy and Dictatorship In the 1920s...

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Palmer Chapter 19 1 Ch. XIX: Democracy and Dictatorship In the 1920s people saw the century as one of progress, but the 1930s turned into a search for security and self- sufficiency--through regulations, controls, plans. Some nations remained democratic but others turned to dictatorship, for a leader to act, decide--to get results, to restore a nation’s pride. 101. The United States: Depression and the New Deal pp. 805-810 A. Hoover limited his actions in the Depression; he saw the needs as temporary, and opposed government direct relief to the jobless. He preferred assisting banks and railroads (credit) and home and farm mortgage relief. The election of FDR brought the full New Deal , a combination of programs for relief, recovery, and reform : l. Relief: expansion of aid to farmers and home-owners; direct relief to the unemployed; and then relief projects (PWA and WPA). He declared a bank holiday, then reopened them under closer supervision; he devalued the dollar; the farmer received subsidies , and controls; the NRA was created to regulate prices and production. The wide range of programs was paid for by “deficit financing,” as proposed by John Maynard Keynes -whose idea was “pump priming”--government spending in a depression to get the economy going; debts would be paid for by increased taxes during good times. The federal payroll was increased dramatically, and the national debt was doubled. 2. Reform programs (longer range) included regulation for the stock market under the SEC; guaranteed bank deposits, through the FDIC and the later FSLIC ; TVA to aid rural poverty and modernize rural Tennessee. 3. After 1935 the New Deal turned to regulation and reform and away from relief; the Supreme Court found some programs unconstitutional. Many programs were passed: Social Security (1935), Fair Labor Standards Act (40 hour week, minimum wage); National Labor Relations Act , doubling the size of unions; graduated income tax, and concern for alleviating poverty. B. Government spending tended to restore confidence, but the recovery was very slow-- with a recession in 1937. The business community was very negative, opposed to the enlarged debt, to the increased regulation and higher taxes, and to the concessions to labor. But by 1938 the New Deal had been successfully emplaced--and war was clearly on the horizon. The role of government had been expanded: Was it an enormous, expensive bureaucracy that was wasteful and a threat to self-reliance, or was it a bold, humanitarian answer to a serious threat to democracy? 102: Trial and Adjustment of Democracy in Britain and France pp. 810-818 A. British Politics: The 1920s and the Depression Britain remained democratic but lost ground. There had been problems before 1914: world-wide industrializing, colonial resentments, protective tariffs. The war was a disaster, and after a brief post-war boom came depression and unemployment. The most serious problems were war losses (40% of merchant marine), tariff barriers created by the new European states, antiquated industry , and labor problems . By 1921, two million were on the “ dole ”, though the distress was mitigated by the welfare state.

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