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A Changing Political Environment 1917-1980
A Changing Political Environment 1917-1980
Harding (R )
Won for several reasons: one was that Dems could not decide on candidate. Campaigned for 'return
to normalcy'>(Republican-1921-23: Died). Limited government interference in business and
isolationism- a principle Wilson was unable to uphold. Believed in isolationism as a result of WW1
and also Red Scare 1919-20. Revival of the KKK. Emergency Immigration Act 1921>> 3% of nationals
living in the US already would be able to enter. Was a Republican voted in by disillusioned Democrat
supporters. Did not have significant opposition electorally as Democrats= tainted with Wilson’s
presidency. Appeal of Repub, shown through shift towards Harding& isolationism. Isolationism
showed through tariffs> Fordney McCumber Act raised tariffs on imported goods to protect
factories& farms>Congress' pro-business attitude shown. Name for policy=protectionism. BUT here,
wasn’t entirely isolationist: made foreign loans to other countries& negotiated peace> he convened
Washington Conference 1921-22- brought world leaders together to agree on reducing the threat of
future wars by reducing armaments. Herbert Hoover was his secretary of commerce. Scandal: Albert
Fall. Teapot Dome scandal: Fall leased navy reserves in Teapot Dome, Wyoming, and two other sites
in California to private oil companies without opening the bidding to other companies. Companies
gave him $300,000 in cash& bonds&cattle for his ranch. Fall=convicted of accepting bribes from the
oil companies.
The KKK's revival during the 1920s.
1924 Klan succeeded in engineering elections of officials coast-coast, inc. the mayors of Portland,
Maine, and Portland, Oregon. Some states, such as Colorado and Indiana, they placed enough
Klansmen in positions of power to effectively control the state government. Known as the "Invisible
Empire," the KKK's presence was felt across country. Promoted traditional WASP ideology. Against
Communists& outsiders (New America). Another reason for immigration quotas and republican
appeal.
Calvin Coolidge (R )
Inherited presidential office (was VP) in 1923 after Harding's death. Elected to office in 1924.
(Republican-1923-1929). Developed reputation as taciturn man> “Silent Cal.” Idea of rugged
individualism> cut taxes& reduced federal spending. Signed Johnson Reed Act 1924>restricted
immigration Eastern& Southern Europe (direct link to communism threat& isolationism). Foreign
policy- avoided foreign intervention. 1925 Mexico restricted American oil operations> solved by
diplomacy>avoided war (sent Dwight Morrow for peace talks). Conciliation helped business abroad.
Laissez-faire ideology of free-market capitalism> administration lowered income tax rates, cut
spending& limited federal regulation of the economy>brought on Great Depression? Federal debt&
budget deficit shrank& the economy boomed. Upheld high tariffs e.g. Fordney-McCumber Act 1922
to protect domestic business from foreign competition. Reduction of taxes>>Mellon handed out tax
reductions of $3.5 billion to large-scale corporations- Revenue Act of 1924. Fewer regulations>>
Federal Trade Commission was less willing to create regulations. In 1926, reparations are important.
With the Dawes Plan, loans made to the Germans to repay Britain and France. Then Britain and
France repay the U.S. to help reduce the national debt.
Herbert Hoover (R )
Hoover won the Republican nomination in the 1928 presidential election. (Republican-1929 to
1933). Hoover campaigned on Coolidge’s legacy of economic prosperity, pledge to support business,
improve farmer's quality of life& isolationism. Not an advocate of a laissez-faire economy, but
encouraged the voluntary cooperation of the federal government and big business. Believed in self
reliance. In response to GD: Agricultural Marketing Act 1929 set up Federal Farm Board to buy up
key crops to stabilise prices>counterproductive: encouraged further overproduction. Hawley Smoot
Tariff 1930 set average duties at 40% on agricultural& industrial items: led to Europe abandoning
free trade> led to fewer American exports. National Credit Corporation 1931 funded by healthy
banks& business to help failing banks. Started $500 million but only lent $10 million: vested interests
of bankers, didn't want to invest in national welfare. Reconstruction Finance Corporation 1932 set
up w/$300 million to lend to states for relief projects for banks, insurance, railroads& construction
agencies: no direct relief to individuals hit by depression. Poor track record, only won 6/50 states in
1933 election.
The Great Depression and the Wall Street Crash 1929
In 1929, the stock market crash catalyzed the onset of the Great Depression. Reasons for the Great
Depression of the 1930s included:
1. As early as 1926, there were signs that the boom was under threat - seen in the collapse of
land prices in Florida. After WW1, growth in middle class& transport through Ford's Model
T, govt recognised inc. In Florida population& sought economic gains from it>>e.g.
elimination of state inheritance tax& income tax& investment in infrastructure>>pull factors.
Land boom led to speculation: people borrowed money to afford investment. Led to
insolvency as prices fell since they couldn’t repay their debts. Also, people started to sell
rapidly after Crash in order to liquidate before bankruptcy>sign that things were going
wrong.
2. Too many goods made and not enough demand. Efficiency of the production line& new
farming technology both contributed to the overproduction. Ford producing so many cars
that he could lower his prices more than any other company. Amount of production he had
gave him left over cars. Shut down his plants in 1931.
3. Farmers produced too much food in the 1920s, prices for their produce=steadily lower.
Hoover prepared to help farmers help themselves. Agricultural marketing act 1929
established nine person a Federal Farm Board funds of $500 million create farmers
marketing cooperatives called stabilisation corporation. Given task of buying selling and
disposing of farm surpluses>>no power to order reduction in production. Corporation
successful in helping farmers but accused of throwing away taxpayers money. Encouraged
farmers to produce more...Should've been doing less. Farmers hit particularly hard by crisis>
drought in Oklahoma, Texas, and Kansas>Dust Bowl. Led to repossession.
4. There were too many small banks - banks did not have enough funds to cope with sudden
rush to take out savings, happened in the autumn of 1929. In the first 10 months of 1930,
744 US banks went bankrupt and savers lost their savings.
5. Too much speculation on the stock market - middle class=lot to lose& spent a lot>Bull
Market. Loose stock market regulations before the Great Depression, investors able to
speculate wildly, buying stocks on margin, needing only 10% of the price of a stock to be
able to complete the purchase. Rampant speculation= falsely high stock prices& when stock
market>tumble in the months leading up to the October 1929 crash, speculative investors
couldn’t make margin calls& massive sell-off began. Rise in the stock market (from 181
points in early 1928 to 381 points in September 1929) fuelled by optimism and false hope,
the plunge= flamed by fear.
6. The Wall Street Crash of October 1929>massive psychological blow. 2 months after crash,
stockholders had lost more than $40 billion dollars.
7. America had lent huge sums of money to European countries. When the stock market
collapsed, they suddenly recalled those loans>devastating impact on European economy.
8. The collapse of European banks caused general world financial crisis.
Effect of the Depression
By 1933, unemployment was at 25 percent& more than 5,000 banks>gone out of business. In South,
sharecroppers—both white and black—endured crushing poverty. African Americans suffered
significantly higher levels of unemployment than whites due to pervasive racism. Increase of
shantytowns built by evictees called Hooverville's. No. of recorded deaths from starvation during the
Depression=110.
The decline of Republicanism reasons
The treatment of the Bonus Army
Congress agreed veterans bonus 1925 based on number years service. To be paid in full each veteran
in 1945. When dep hit, many veterans needed it there and then. March organised to Washington
publicise concerns. Senate vetoed giving money due to immediate costs even though HofR voted for
it. March broken up with violence on Hoover's order, veterans branded "tramps and hoodlums with
a generous sprinkling of communist agitators". Lost popularity.
Failure of Laissez-faire and Rugged Individualism
Seen as responsible for low taxes> more profit for businessmen& powered overproduction. Also,
deregulation of stock markets. This is why 'chicken in every pot' slogan seemed unconvincing.
Republicans- not the poor man's party ? Look at Hooverville's.
Failure of foreign policy and trade
Hawley Smoot Tariff Act massive discouragement of international trade links.
Internal party division.
Hoover=not supported by many prominent Republicans& violently opposed by others, in particular
by a number of senators> national reputation made their opposition of considerable importance.
Even went so far as to espouse the cause of the Democratic candidate openly. Was too progressive
to be a republican yet too conservative to be a depression president.
Truman (D)
VP took over WW2 (Democrat- 1945-53). To accelerate end of war, US launched atomic bomb
on Hiroshima (Japan). Japanese surrendered in 1945. Truman=motivated to save lives of
American soldiers. War ended. In 1944, delegations from the United States, the United Kingdom,
the Soviet Union, and the Republic of China>>United Nations. Extent of US involvement in
creation of the UN demonstrated rise of the US to global leadership in post-war period.
Domestic policy: known as Fair Deal included national medical insurance, federal housing
programs, a higher minimum wage, assistance for farmers, repeal of the Taft-Hartley labor act,
increases in Social Security and civil rights reforms. Proposals>> largely blocked by Congressional
conservatives; however, he had some legislative successes, such as the Housing Act of 1949, and
also issued executive orders (at the end of his first term) to end segregation in the U.S. armed
forces and to prohibit discrimination in federal government jobs. Personality: cold& not
charismatic/confident. Media: v careful briefings BUT not enough w/Korea.
The Cold War
Started after WW2. Stalin, after being attacked by Germany 2 times (ww1&2), sought security
through request for a buffer zone. Stalin, at this point had regained support of the Eastern
block>huge territory. BUT, economic disarray faced Europe after the war... America was worried
this may lead to revolt& more countries under communist control (e.g. China in 1949). Leaders
of the Allied powers met at Yalta Conference, could not agree on much, but did agree to
eradicate German Nazism. Agreed to divide Germany& Berlin part too into four zones would be
occupied by 1/4 main powers: France, UK, US, USSR. Tensions: US cut off military aid to USSR
during war's conclusion& as US developed first atomic bomb. In a Long Telegram (1946) sent to
US, ambassador Kennan suggested policy of containment>Truman. Issued Truman Doctrine
(1947): promise that United States would do whatever necessary (economy&military) contain
the spread of communism. Ended isolationism. Plan to provide Europe w/$13 billion in economic
aid. Plan>successful- rehabilitated countries open to it. Provided boost to American economy,
since Marshall Plan funds used to purchase American goods. Crisis in 1948 USSR& US. Ideological
divisions over what should be done with Germany tore the former allies apart. The USSR, which
wanted to make sure that Germany could never attack it again, objected to reunification of
Germany. In 1948 the USSR cut off all highway& railroad access to Berlin, hoped to absorb all of
Berlin under Soviet control. West Berlin would either starve or the Western Allies would
surrender to the Soviets' wishes for Germany. From 1948-1949. Soviets realized that the
blockade was a failure and ended it BUT, instead built Berlin Wall>>confrontational to US and
other allies. The North Atlantic Treaty Organization (NATO), 1949, as the pact was named,
started with twelve member nations. NATO promised that an attack on one of its members
would provoke a response from all of its members. NATO became the major international body
opposing communism in the twentieth century>isolationism=finished. Arms race&
stockpiling>Duck and Cover movie for children in schools (1952).
Korean War (1950-3)
After country's partition into South& North (1945), North Korea tried to reunify in 1950 through
surprise invasion on South. US launched counteroffensive. US reaches Chinese border in their
attempts to regain Korea, China intervenes& forces troops back. Reaches stalemate> left
Americans frustrated and hurt Truman’s popularity. BUT proved that US was dedicated to
international effort against communism. Media disregarded under Truman, lacked information
about War so just assumed false information such as the USA potentially using its atomic bombs.
Only in 1950 did he arrange 200 reporters to even go to Korea. He found it difficult to regain
media support for his 'limited war'.
Dwight Eisenhower (R )
(Republican-1953-61) Ended Korean war w/1953 Armistice& didn't take country into war in
Vietnam when communists took over part of that country in 1954 (though he did supply South
Vietnam with military advisers and equipment). Saw Eisenhower’s administration both provide
aid to dictators friendly to US interests (the Shah of Iran, Fulgencio Batista in Cuba, for example)
and authorise covert CIA missions to overthrow governments sympathetic to the Soviets> 1954
Eisenhower authorised CIA to depose the democratically elected president of Guatemala. 1957
Eisenhower deployed troops to Little Rock, Arkansas. Was significant>>was the first time since
Reconstruction that President sent military forces> South to enforce federal law. BUT,
Eisenhower did not declare that desegregating public schools as the Supreme Court had ordered
was the right thing to do. Instead, in a nationally televised address, he linked it back to
communism& avoided race topic. Was moderate, sought to continue social welfare programmes
such by signing legislation that increased minimum wage by a third. Worked for modestly lower
taxes on corporations/higher earners. Federal-Aid Highway Act, funded largest public works
project in American history>>spending of $25 billion to build more than 40,000 miles of four-
lane interstate highways. Enjoyed economic boom years. President Eisenhower attempted to cut
defense spending by investing in a system of "massive retaliation," hoping that the prospect of
"mutually-assured destruction" from a large nuclear arsenal would deter potential aggressors.
Personality: friendly optimism. Media: habit of minimising problems e.g. USSR first into space.
2nd Red Scare 1947-54
1938, the House Committee on Un-American Activities, or HUAC, was special committee in the
US House of Representatives. 1950s, HUAC turned its attention to hunting reds. Red Channels
pamphlet charged 151 actors, writers, and directors w/Communist ties. All were immediately
blacklisted e.g. Charlie Chaplin, whether or not the charges were substantiated. Senator
McCarthy, worried about re-election, created moral panic of Communism to secure his seat. For
more than four years, McCarthy railed against supposed communists, eastern "establishment"
Democrats, and homosexuals. McCarthy finally went too far in 1954 when he initiated hearings
against the US Army. The televised Army-McCarthy hearings showcased McCarthy's increasingly
erratic behaviour and reliance on guilt-by-association rather than evidence. In December 1954
the US Senate voted to censure McCarthy. Charges of espionage: Rosenbergs (1953), Alger Hiss&
Fuschs and Gold (physicists) accused of leaking nuclear secrets to USSR (Manhattan Project).
J F Kennedy (D)
(Dem-1960-3). Won against Nixon. Both agreed on US global leadership in Cold War. Firmly anti-
communist and believed in strengthening US military. Kennedy pledged to revive the economy
by strengthening public sector. Embraced the goals of the CRM& introduced legislation (passed
by successor Johnson 1964). First nationally-televised presidential debate>>September 26, 1960.
Kennedy=charismatic& handsome. Keynesian economics: federal deficit spending could boost
economic growth and lower unemployment. Raised minimum wage. $4 billion> allocated for
housing construction. Asked Congress for a $10 billion tax cut unaccompanied by decreases in
federal spending. Stimulated economy BUT led to inflation& led to union v business conflict.
Feared Southern Dems in CRM legislation. Bay of Pigs invasion in 1961>>poorly planned, caused
conflict w/CIA& Pres. Also>counterproductive, made Cuba& Castro more openly communist.
Was a humiliation>used 1500 Cuban exiles to invade but those leaked plans> 'perfect failure'.
After Bay of Pigs, Soviets provided Cuba w/nuclear weapons on condition that deal>>secret until
missiles> fully operational. 1961, Kennedy increase support for South Vietnam e.g. increase in US
military advisers, the doubling of military assistance, and authorisation of herbicides>>Agent
Orange. U.S. aircraft sprayed around roads, rivers, canals and military bases, as well as on crops
that might be used to supply enemy troops in North Viet. 1962, US U-2 spy plane flights over
Cuban territory revealed the missile installation sites> Cuban Missile Crisis. Naval blockade>act
of war BUT suspended nuclear weapon delivery to Cuba. Kennedy& Khrushchev negotiated a
peaceful outcome to the missile crisis. Came out of the crisis in better position. His calm but firm
stance in negotiations was heralded as great statesmanship, people often forget Bay of Pigs led
to Missile Crisis in first place. Media: presidential family publicity. Organisation: POOR! Look at
Bay of Pigs.
Liberalism
2nd Red Scare& inc. Violence against blacks in Deep South led to education of certain ideologists
leading to liberalism of 1960s. Introduced idea of positive discrimination& advancement of
races& women too.
Nixon (R )
(Republican: 1969-74). Campaigned for presidency with “secret plan” to end the war in Vietnam.
Sought to achieve “peace with honor.” Expanded war into neighboring Laos and Cambodia,
while he carried out gradual withdrawal of US troops (defeat) and an increasing reliance on the
South Vietnamese armed forces. By the end of 1969, the number of American troops in Vietnam
had been cut in half. Although Vietnamization did reduced the number of American troops in
Vietnam to just 50,000 by 1973, it brought morale among the remaining soldiers to the lowest
point yet as their reason for fighting became even more uncertain. The incursion into Cambodia
set off a wave of protests around the nation and on university campuses in particular. In Ohio,
the governor called out the National Guard to put down riots at Kent State University. The
guards shot and killed four young people and wounded nine others on May 4, 1970, in an
incident that sparked rage across the nation. Paris Peace Accords>terms of withdrawal. North
Vietnam united country under communism but neighbouring countries didn't fall to
communism. Embodied 'silent majority' in election>>backlash against liberalism... Appeal of
Republicans once again. Also, division of democrats made republican victory easier>>old left v
new left>uninspiring Democratic challenger Hubert Humphrey. Back to basics ideology.
Founded Environmental Protection Agency 1970> response to rising concern over conservation
and pollution. The agency oversaw the passage of the Clean Air Act, Clean Water Act and the
Mammal Marine Protection Act. Economically, Nixon tried and failed to cope with the growing
issue of stagflation. 1971, Nixon announced a ninety day wage and price freeze, and in a bid to
increase American exports he took the dollar off the gold standard. Neither of these solutions
did much to resuscitate the struggling American economy. In 1972, Watergate: allegations
emerged that Nixon loyalists had wiretapped the Democratic National Committee office in
Washington's Watergate building in order to spy on Democratic nominee George McGovern.
Tapes of Nixon's conversations in the Oval Office revealed that he had forbidden the FBI from
investigating the incident, a clear obstruction of justice. Facing impeachment, Nixon resigned in
1974. Was partially to blame for oil crisis in 1973>Yom Kippur War supported Israel, Saudi>oil
embargo.