Chapter One
After World War One, the United States entered what is now known as the "Roaring Twenties". The American economy, despite the rampant wealth inequality of the day, was one fire during the era, with cities like Chicago, Los Angeles, San Francisco and New York building massive skyscrapers and trying to out-do each other. Advancements in factory assembly lines and industry in general meant that items previously exclusive to the rich were now making their way to the growing middle class. Republicans like Warren Harding and Calvin Coolidge, who believed in limited government and fiscal conservatism, won massive landslides throughout the decade. With their newfound money, many people began investing in the stock market. A common family pastime was even to sit at the local telegraph office and watch the stocks go up. But it couldn't continue forever.
And it didn't.
Then the Great Depression came, and devastation rained
Hoover, who narrowly won re-nomination against a strong challenge by the liberal wing of the party, lost a massive landslide to Franklin Delano Roosevelt and Burton K. Wheeler.
Congress also swung hard in the Democrats' favor, providing the perfect opportunity to pass what Roosevelt wanted.
These massive gains were partly because of a speech Roosevelt gave in late October. It is now known as the 'Shining City on the Hill" speech and is considered one of the best ever. "We never undertake great efforts in this country because they are the easiest way to do things, rather we do them to make life better for our citizens. We do things not because they are easy, but because they are hard. Fixing the economy will be a massive task, but with the help of all Americans we can get there. It is time to reward the efforts of the struggling workers in this country, millions of whom have fought and risked their lives for this country. There are loyal Republicans out there who are worried for the future of this country. I will ask you this: are you better off today than you were four years ago? I promise to be a President for all Americans. We will push through legislation to protect the rights of citizens and ensure the safety and employment of workers. And when we have done that, America will once again be the shining city on the hill, the beacon of hope and liberty for millions oppressed worldwide, and when that day comes, the sun will have risen over this great country again."
THE NEW DEAL
Assortment of New Deal programs.
Over the course of his first term, President Roosevelt introduced a massive reform of the nation's economy, dubbed the "New Deal", to help lift Americans out of the Great Depression and back into prosperity. It was Roosevelt who came up with the 'hundred days' strategy, where Presidents try to get as much passed as possible in their first one hundred days. He called a special session of Congress for the duration and passed a large amount of his agenda. The first part of the New Deal, The Federal Emergency Relief Administration (FERA) spent over $1 Billion dollars on relief from homeless shelters to infrastructure projects to give jobs and shelter to those who were needy (which at this point was a solid 35% of the population). It was eventually replaced by the Works Progress Administration (WPA) and the still-existing Social Security Administration. The Works Progress Administration was a large program that created jobs in the field of construction, mostly electrification and road building. Social Security was a program that gave certain citizens a monthly check paid for by earlier contributions and taxes. Those eligible were Americans over 65 or widowers with children (which was eventually expanded to widows) and those with permanent workplace injuries or permanent military injuries. The Agricultural Adjustment Administration (AAA) was introduced to lift up farmers from destitution by hiring many to teach other farmers about new agricultural techniques and buying excess produce from farmers and giving it to FERA Shelters and brand-new low-cost grocery stores. The Civilian Conservation Corps (CCC) was established to give people employment putting out forest fires or helping the rebuilding areas after disasters. Last but not least, the TVA (Tennessee Valley Authority) built hydroelectric power stations via dams and worked with the WPA to provide electricty to as many people as possible.
Puerto Rico also received its own relief programs, along with Hawaii and other U.S. Territories.
Roosevelt signing Glass-Steagall, May 10, 1933
FDR also signed the Glass-Steagall Act early in his term, which introduced different classification systems for investment and savings banks and created deposit insurance for accounts up to $3,000 (which was put in because of the cash-hoarding issues after the bank collapses). He also suspended the Gold Standard for a period of five years so that the dollar could counter deflation more easily. Roosevelt also relaxed international trade regulations, as protectionism was thought to have worsened the depression.
With the economy already in much better shape and unemployment under down 30% of the number when he took office, FDR was immensely popular. Because of this, the Democrats gained several seats in the 1934 mid-terms.
FIRESIDE CHATS
President Franklin Roosevelt conducts his first of what would become weekly "Fireside Chats", March 5, 1933
Unlike previous Presidents, who mostly stayed out of the limelight and had party-biased newspapers do their talking for them and their policies, Roosevelt decided that he would talk to the American people through the medium of radio. It is recognized by modern historians that this is a major part of why he was so effective, as people felt he was talking directly to them.
With the new mandate, Democrats were ready to remake the economy. How remained to be seen.
