The New Deal and World War II (1930 – 1945)
In the election of 1932 Franklin Delano Roosevelt, New York’s governor and a consummate politician, defeated Hoover, winning 57 percent of the popular vote; the Democrats also took control of both houses of Congress. Voters gave Roosevelt a mandate for action.
Roosevelt gathered a “brain trust”—professors, lawyers, business leaders, and social welfare proponents—to advise him, especially on economic issues. He was also influenced by his cabinet, which included Secretary of the Interior Harold Ickes, Secretary of State Cordell Hull, Secretary of Agriculture Henry Wallace, and Labor Secretary Frances Perkins, the first woman cabinet member. A final influence on Roosevelt was his wife, Eleanor, whose activist philosophy had been shaped by the women’s movement. With Eleanor Roosevelt in the White House, the disadvantaged gained an advocate. Federal officials sought her attention, pressure groups pursued her, journalists followed her, and constituents admired her.
Unlike Hoover, Roosevelt took strong steps immediately to battle the depression and stimulate the U.S. economy. When he assumed office in 1933, a banking crisis was in progress. More than 5,000 banks had failed. Roosevelt closed the banks, and Congress passed an Emergency Banking Act, which saved banks in sounder financial shape. After the “bank holiday,” people gradually regained confidence in banks. The United States also abandoned the gold standard and put more money into circulation.
Next, in what was known as the First Hundred Days, Roosevelt and the Democratic Congress enacted measures to combat the depression and prevent its recurrence. The measures of 1933 included: the Agricultural Adjustment Act, which paid farmers to curtail their production (later upset by the Supreme Court); the National Industrial Recovery Act (NIRA), which established codes of fair competition to regulate industry and guaranteed labor’s right to collective bargaining (again, the law was overturned in 1935); and the Public Works Administration, which constructed roads, dams, and public buildings. Other acts of the First Hundred Days created the Federal Deposit Insurance Corporation, which insured deposits in banks in case banks failed, and the Tennessee Valley Authority (TVA), which provided electric power to areas of the southeast. The government also set up work camps for the unemployed, refinanced mortgages, provided emergency relief, and regulated the stock market through the Securities and Exchange Commission.
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The emergency measures raised employment, but the New Deal evoked angry criticism. On the right, conservative business leaders and politicians assailed New Deal programs. The Supreme Court, appointed mainly by Republicans, struck down many pieces of New Deal legislation, such as the NIRA, farm mortgage relief, and the minimum wage. On the left, critics believed that Roosevelt had not done enough.
In the election of 1936, Roosevelt defeated his Republican opponent, Alf Landon, in a landslide and carried every state but Maine and Vermont. The election confirmed that many Americans accepted and supported the New Deal. It also showed that the constituency of the Democratic Party had changed.
At the start of Roosevelt’s second term in 1937, some progress had been made against the depression; the gross output of goods and services reached their 1929 level. But there were difficulties in store for the New Deal. Republicans resented the administration’s efforts to control the economy. Unemployment was still high, and income was less than in 1929. To battle the recession and to stimulate the economy, Roosevelt initiated a spending program. In 1938 New Dealers passed a Second Agricultural Adjustment Act to replace the first one that the Supreme Court had overturned and the Wagner Housing Act, which funded construction of low-cost housing.
Meanwhile, the president battled the Supreme Court, which had upset several New Deal measures and was ready to dismantle more. Roosevelt attacked indirectly; he asked Congress for power to appoint an additional justice for each sitting justice over the age of 70. The proposal threatened the Court’s conservative majority. But the Supreme Court changed its stance and began to approve some New Deal measures, such as the minimum wage in 1937.
The New Deal never ended the Great Depression, which continued until the United States’ entry into World War II revived the economy. As late as 1940, 15 percent of the labor force was unemployed. Nor did the New Deal redistribute wealth or challenge capitalism. But in the short run, the New Deal averted disaster and alleviated misery, and its long-term effects were profound.
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One long-term effect was an activist state that extended the powers of government in unprecedented ways, particularly in the economy. The state now moderated wild swings of the business cycle, stood between the citizen and sudden destitution, and recognized a level of subsistence beneath which citizens should not fall.
The New Deal also realigned political loyalties. A major legacy was the Democratic coalition, the diverse groups of voters, including African Americans, union members, farmers, and immigrants, who backed Roosevelt and continued to vote Democratic.
The New Deal’s most important legacy was a new political philosophy, liberalism, to which many Americans remained attached for decades to come. By the end of the 1930s, World War II had broken out in Europe, and the country began to shift its focus from domestic reform to foreign policy and defense.
World War II
In September 1939 Roosevelt called Congress into special session to revise the neutrality acts. The president offered a plan known as cash-and-carry, which permitted Americans to sell munitions to nations able to pay for them in cash and able to carry them away in their own ships. Congress passed the Neutrality Act of 1939, which legitimized cash-and-carry and allowed Britain and France to buy American arms. The war in Europe, meanwhile, grew more dire for the Allies. In June 1940 Germany conquered France, and British troops that had been in France retreated across the English Channel. Then German bombers began to pound Britain.
In June 1940 the United States started supplying Britain with “all aid short of war” to help the British defend themselves against Germany. Roosevelt asked Congress for more funds for national defense. Congress complied and began the first American peacetime military draft, the Selective Training and Service Act, under which more than 16 million men were registered. After the 1940 election, Roosevelt urged that the United States become “the great arsenal of democracy.” However, the United States was still not actually at war.
In 1941 the conflict worsened. Despite the nonaggression pact, German armies invaded the USSR. Meanwhile, as Japan continued to invade areas in Asia, U.S. relations with Japan crumbled. On December 7, 1941, Japan attacked a U.S. naval base at Pearl Harbor in Hawaii. The next day it attacked the main American base in the Philippines. In response, the United States declared war on Japan, although not on Germany; Hitler acted first and declared war on the United States. The United States committed itself to fighting the Axis powers as an ally of Britain and France.
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Even before Pearl Harbor, the American government had begun to mobilize for war. After the attack, the United States focused its attention on the war effort. World War II greatly increased the power of the federal government, which mushroomed in size and power. The federal budget skyrocketed, and the number of federal civilian employees tripled. The war also made the United States a military and economic world power.
The armed forces expanded as volunteers and draftees enrolled, growing to almost 12 million men and 260,000 women by 1945. Roosevelt formed the Joint Chiefs of Staff, a military advisory group, to manage the huge military effort. New federal agencies multiplied. The Office of Strategic Services gathered intelligence and conducted espionage, the War Production Board distributed manufacturing contracts and curtailed manufacture of civilian goods, and the War Manpower Commission supervised war industry, agriculture, and the military. Other wartime agencies resolved disputes between workers and management; battled inflation, set price controls, and imposed rations on scarce items; turned out propaganda; and oversaw broadcasting and publishing.
Labor scarcity drew women into the war economy. During the depression, the federal government had urged women to cede jobs to male breadwinners. However, when the war began, it sought women to work in war production. More than 6 million women entered the work force in wartime; women’s share of the labor force leaped from 25 percent in 1940 to 35 percent in 1945. Three-quarters of the new women workers were married, a majority were over 35, and over a third had children under 14. Many women held untraditional jobs in the well-paid blue collar sector—in shipyards and in airplane plants, as crane operators. Women found new options in civilian vocations and professions, too. Despite women’s gains in the workplace, many people retained traditional convictions that women should not work outside the home. Government propaganda promoted women’s war work as only a temporary response to an emergency.
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For all Americans, war changed the quality of life. World War II inspired hard work, cooperation, and patriotism. Citizens bought war bonds, saved scrap metal, and planted victory gardens. They coped with rationing and housing shortages. The war also caused population movement. Americans flocked to states with military bases and defense plants; 6 million migrants left for cities, many on the West Coast, where the defense industry was concentrated. School enrollment sank as teenagers took jobs or joined the armed services. People became more concerned about family life, especially about working mothers, juvenile delinquency, and unruly teenagers.
In the United States, civil liberties were casualties of the war. In February 1942 the president authorized the evacuation of all Japanese from the West Coast. The U.S. government interned around 120,000 Japanese Americans, two-thirds of them native-born U.S. citizens, in relocation centers run by the War Relocation Authority. The internment policy reflected anti-Japanese sentiment on the West Coast that was rooted in economic rivalry, racial prejudice, and fear of Japanese sabotage after Pearl Harbor. In 1944 the Supreme Court ruled that the evacuation and internment were constitutional. By then, however, the government had started to release the internees. In 1988 Congress apologized and voted to pay $20,000 compensation to each of 60,000 surviving internees.
Ever since 1941, when Roosevelt and Churchill issued the Atlantic Charter outlining war goals, the president had considered the war’s conclusion. At wartime conferences, Allied leaders looked ahead to the war’s end. However, the Western powers and the USSR did not trust one another and disagreed on the postwar future of nations on the Soviet border.
In 1944 the war in the European theater reached a climax. The USSR then moved into Poland and the Balkans, and pushed the Allies to open a second front in Western Europe. The Allied armies prepared a huge invasion of western France. On June 6, 1944, known as D-Day, thousands of vessels and aircraft carrying British, Canadian, American troops crossed the English Channel and landed on the Normandy coast of France. On August 25, 1944, the Allied forces liberated Paris after four years of Nazi rule. The Germans continued to fight in eastern France. Hitler launched a last, desperate offensive, the Battle of the Bulge, in December 1944. The offensive failed, and German armies were forced to retreat. Allied armies entered Germany in March 1945, while the Soviets moved toward Berlin from the east. Germany surrendered on May 8, 1945. The war in Europe was over.
The Pacific war—a great land, air, and sea battle—continued. After the attack on Pearl Harbor, Japan conquered the Philippines, Malaya, the Dutch East Indies, and Burma. Troops from the United States, Britain, Australia, and New Zealand tried to stop the Japanese advance, which reached its peak in the spring of 1942. The turning point of the Pacific war came in June 1942, at the Battle of Midway. The American victory at Midway ended the Japanese navy’s hope of controlling the Pacific. The United States then began a long counteroffensive and recaptured Pacific islands that the Japanese had occupied. In October 1944 the United States finally smashed the Japanese fleet in the Battle of Leyte Gulf in the Philippines.
But Japan refused to surrender. The United States wanted to end the war with unconditional surrender from Japan. It also wanted to avoid more battles like those in Iwo Jima and Okinawa, where U.S. casualties had been heavy. These factors spurred U.S. plans to use the atomic bomb.
The United States in late 1941 established a secret program, which came to be known as the Manhattan Project, to develop an atomic bomb, a powerful explosive nuclear weapon. After Roosevelt’s death in April 1945, Harry S. Truman became president and inherited the bomb-development program. At this point, the new weapon had two purposes. First, it could be used to force Japan to surrender. Second, possession of the bomb would enable the United States, and not the USSR, to control postwar policy.
On August 6, 1945, the United States dropped an atomic bomb on Hiroshima. In minutes, half of the city vanished. According to U.S. estimates, 60,000 to 70,000 people were killed or missing as a result of the bomb. Deadly radiation reached over 100,000. On August 8, the USSR declared war on Japan. On August 9, the United States dropped an even more powerful bomb on Nagasaki. According to U.S. estimates, 40,000 people were killed or never found as a result of the second bomb. On September 2, the Japanese government, which had seemed ready to fight to the death, surrendered unconditionally.
World War II ended Nazi barbarism and vanquished totalitarian power that threatened to conquer the globe. The cost of the war was immense. Allied military and civilian losses were 44 million; those of the Axis, 11 million. The United States lost almost 300,000 people in battle deaths, which was far less than the toll in Europe and Asia. At home, the war quenched isolationism, ended the depression, provided unprecedented social and economic mobility, fostered national unity, and vastly expanded the federal government. The U.S. government spent more than $300 billion on the war effort, which generated jobs and prosperity and renewed confidence. Finally, World War II made the United States the world’s leading military and economic force. With the Axis threat obliterated, the United States and the USSR became rivals for global dominance.
Lesson 9
Postwar America
At the end of World War II, the United States and the USSR emerged as the world’s major powers. They also became involved in the Cold War, a state of hostility (short of direct military conflict) between the two nations. The clash had deep roots, going back to the Russian Revolutions of 1917, when after the Bolshevik victory, the United States, along with Britain, France, and Japan, sent troops to Russia to support the anti-Communists. During World War II, the United States and the USSR were tenuously allied, but they disagreed on tactics and on postwar plans. After the war, relations deteriorated. The United States and the USSR had different ideologies, and they mistrusted each other. The Soviet Union feared that the United States, the leader of the capitalist world, sought the downfall of Communism. The United States felt threatened by Soviet expansionism in Europe, Asia, and the western hemisphere.
The United States and the Soviet Union disagreed over postwar policy in central and eastern Europe. The USSR wanted to demilitarize Germany to prevent another war; to control Poland to preclude any future invasion from its west; and to dominate Eastern Europe. Stalin saw Soviet domination of Eastern Europe as vital to Soviet security. Within months of the war’s end, Stalin installed pro-Soviet governments in Bulgaria, Hungary, and Romania. Independent Communist takeovers in Albania and Yugoslavia provided two more “satellite nations.” Finally, the Soviets barred free elections in Poland and suppressed political opposition. In March 1946 former British prime minister Winston Churchill told a college audience in Fulton, Missouri, that a Soviet-made “Iron Curtain” had descended across Europe.
In 1947 the Cold War conflict centered on Greece, where a Communist-led resistance movement, supported by the USSR and Communist Yugoslavia, threatened to overthrow the Greek monarchical government, supported by Britain. When the British declared that they were unable to aid the imperiled Greek monarchists, the United States acted. In March 1947 the president announced the Truman Doctrine: The United States would help stabilize legal foreign governments threatened by revolutionary minorities and outside pressures. Congress appropriated $400 million to support anti-Communist forces in Turkey and Greece. By giving aid, the United States signaled that it would bolster regimes that claimed to face Communist threats. As George Kennan explained in an article in Foreign Affairs magazine in 1947, “containment” meant using “unalterable counterforce at every point” until Soviet power ended or faded.
In 1947 the United States further pursued its Cold War goals in Europe, where shaky postwar economies seemed to present opportunities for Communist gains. The American Marshall Plan, an ambitious economic recovery program, sought to restore productivity and prosperity to Europe and thereby prevent Communist inroads. The plan ultimately pumped more than $13 billion into western European economies, including occupied Germany. Stalin responded to the new U.S. policy in Europe by trying to force Britain, France, and the United States out of Berlin. The city was split between the Western powers and the USSR, although it was deep within the Soviet zone of Germany. The Soviets cut off all access to Berlin from the parts of Germany controlled by the West. Truman, however, aided West Berlin by airlifting supplies to the city from June 1948 to May 1949.
The Korean War
Japan had occupied Korea during World War II. After Japan’s defeat, Korea was divided along the 38th parallel into the Communist Democratic People’s Republic of Korea in the north and the U.S.-backed Republic of Korea in the south. After June 1949, when the United States withdrew its army, South Korea was left vulnerable. A year later, North Korean troops invaded South Korea. Truman reacted quickly. He committed U.S. forces to Korea, sent General Douglas MacArthur there to command them, and asked the United Nations to help protect South Korea from conquest.
MacArthur drove the North Koreans back to the dividing line. Truman then ordered American troops to cross the 38th parallel and press on to the Chinese border. China responded in November 1950 with a huge counterattack that decimated U.S. armies. MacArthur demanded permission to invade mainland China, which Truman rejected, and then repeatedly assailed the president’s decision. In 1951 Truman fired him for insubordination. By then, the combatants had separated near the 38th parallel. The Korean War did not officially end until 1953, when President Dwight Eisenhower imposed a precarious armistice. Meanwhile, the Korean War had brought about rearmament, hiked the U.S. military budget, and increased fears of Communist aggression abroad and at home.
Cold War Under Eisenhower
When Eisenhower took office in 1953, he moved to end the war in Korea, where peace talks had been going on since 1951. Eisenhower’s veiled threat to use nuclear weapons broke the stalemate. An armistice, signed in July 1953, set a boundary between the two Koreas near the 38th parallel. Eisenhower then reduced the federal budget and cut defense spending. Still, he pursued the Cold War.
When Stalin died in 1953, the United States and the USSR had an opportunity to ease tensions. However, the USSR tested a nuclear bomb in 1954, and Eisenhower needed to appease Republicans who urged more forceful efforts to defeat Communism.
In 1955 the United States and USSR met in Geneva, Switzerland, to address mounting fears about radioactive fallout from nuclear tests. Discussions of “peaceful coexistence” led the two nations to suspend atmospheric tests of nuclear weapons. Still, the United States spent more on nuclear weapons and less on conventional forces.
The USA, meanwhile, negotiated pacts around the world committing the United States to the defense of 43 nations. The focus of the Cold War now shifted to the so-called Third World, where the Central Intelligence Agency (CIA) represented U.S. interests. Established in 1947 to conduct espionage and assess information about foreign nations, the CIA carried out covert operations against regimes believed to be Communist or supported by Communist nations. In 1954, for example, the CIA helped bring down a Guatemalan government that the United States believed was moving towards Communism.
Finally, to stop the USSR from spreading Communism, the United States became involved in Indochina and the Middle East. In Vietnam, Ho Chi Minh, a nationalist and a Communist, led a movement for independence from France. The Truman administration had aided France, but in 1954 the French were defeated. An international peace conference in Geneva divided Vietnam at the 17th parallel. The United States refused to sign the Geneva Accords, which it believed conceded too much to the Communists. Instead the United States sent economic aid and military advisers to South Vietnam from 1954 to 1961. Although Eisenhower feared further involvement in Vietnam, he supported what was called the domino theory: If Vietnam fell to Communism, all of Southeast Asia might follow.
In the Middle East, the United States promised a loan to Egypt’s new ruler, Gamal Abdel Nasser, to build the Aswan High Dam on the Nile River. But when Nasser bought arms from Communist Czechoslovakia, the United States canceled the loan. Nasser retaliated in July 1956 by nationalizing the Anglo-French Suez Canal, an artificial waterway across the Isthmus of Suez in northeastern Egypt. Britain, France, and Israel (formed in 1948) responded with force, which the United States condemned. The invaders of Egypt withdrew, and the Suez crisis was defused.
In reaction to the Suez crisis, the United States announced a new policy, the Eisenhower Doctrine: The United States would intervene in the Middle East if necessary to protect the area against Communism. In July 1958 the United States sent 14,000 marines to Lebanon during a civil war that the United States feared would destabilize the region.
In the USSR, Stalin’s successor, Nikita Khrushchev, did his part to keep the Cold War alive. He extended Soviet influence by establishing relations with India and with other nations that were not aligned with either side in the Cold War. In 1955 Khrushchev created the Warsaw Pact, a military alliance of seven European Communist nations, to secure the Soviet position in Europe. In 1956 he used force in Hungary and political pressure in Poland to ensure continued Soviet control of those countries. He increased Soviet power by developing a hydrogen bomb, and by launching the first earth satellite in 1957. Finally, he formed an alliance with Cuba after Fidel Castro led a successful revolution there in 1959.
At the end of Eisenhower’s second term, the Cold War still dominated American foreign policy. United States efforts around the world to quell Communist-inspired or nationalist insurgencies sometimes caused anger. In 1958 angry crowds in Peru and Venezuela stoned Vice President Nixon’s car. On May 1, 1960, the Soviets shot down a U-2 spy plane, and plans for a second summit collapsed. When Eisenhower left office, he warned against “unwarranted influence … by the military-industrial complex.” But the nuclear arms race had intensified, and the Cold War seemed to be widening.
The Cold War brought divisiveness and discord in the United States. Americans of the 1950s clashed on the extent of the threat posed by Communism at home and abroad. Historians debate this question, too, as well as the origins of the Cold War. Some contend that Soviet aggression in the postwar era reflected valid concerns for security, and that a series of hostile acts by the United States provoked the USSR to take countermeasures. Others argue, variously, that Communism was inherently expansionist; that Soviet aggression was a natural outgrowth of Communism; that with Stalin in power, the Cold War was inevitable; that the USSR was bent on establishing Communist regimes in every region where a power vacuum existed; and that containment was a necessary and successful policy.
Starting in the early 1990s, scholars have gained access to Soviet evidence that was previously unavailable. New revelations from Russian archives—as well as declassification in 1995 and 1996 of U.S. intelligence files on interception of Soviet spy cables, known as the Venona decryptions—has recently made possible new scholarship on the Cold War era. For the moment, debates about U.S. Cold War policy are likely to remain.
Lesson 10
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