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Franklin D. Roosevelt (view source)
Revision as of 18:17, September 4, 2010
, 18:17, September 4, 2010→Second Term: Double dip recession
Under FDR, the Democratic Party became identified closely with modern liberalism, which included the promotion of social welfare, unions and regulation of the economy. Civil rights were not on the party agenda at this time.
Under FDR, the Democratic Party became identified closely with modern liberalism, which included the promotion of social welfare, unions and regulation of the economy. Civil rights were not on the party agenda at this time.
===Double dip recession===
[[Image:Flatgrowth.JPG|thumb|300px|right|Real Output and Growth remained stagnant throughout the New Deal largely due to government involvement. The Depression came back with a vengeance in 1937-1938.<ref>''New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis, ''Harold L. Cole and Lee E. Ohanian, Journal of Political Economy, volume 112 (2004), pages 779–816.</ref>]]
When FDR was inaugurated for his second term [[national income]], [[payroll]]s, and [[industrial production]] <ref>League of Nations Monthly Bulletin of Statistics, June, 1936. Percentage change 1929 to March 1936, United States -21.8%, rank number 13.</ref> were still 20 per cent below the 1929 figure and construction was still only about one third what it had been in 1929 when the nation had a booming economy due to massive speculation that would ultimately lead to the stock market crash. By June, 1937 the Treasury boasted relief payments were less than in the same period the preceding year. But this was not so. The Treasury made a practice of cooking the books and producing phony numbers. It merely shifted relief payments to other accounts. They were, in fact, larger than the year before. Stock prices declined and by September the reality could be no longer hidden. By the end of October the market crashed. The budget was running a [[deficit]] at the time $300,000,000 a month.
FDR told [[DNC]] Chairman James Farley he would have "to go in for pump priming or relief," but as Farley explained FDR complained he could not spend on local projects because the states and cities did not want any more buildings and institutions which they would have to support in perpetuity. They were having trouble enough paying the bills of those already built. Roosevelt revealed to Farley that many [[WPA]] projects approved by the government were abandoned because the states and cities could not raise the money to support them. In the 1938 Congressional elections Harry Hopkins was spending as fast as he could without any regard to utility to meet the immediate political necessities of an election but couldn't go on indefinitely. And the whole problem was complicated by pressure from within his own party to balance the budget.
New capital made available for investment amounted to $348,000,000 in 1935. This was less than 1/10th of the amount available in 1929. By contrast, the British economy had nearly recovered to its 1929 levels by 1935, and the amount available for investment was almost twice as much as the United States.
{| style="background:white; color:blue" border="1" class="wikitable"
|-
! Year
! United States <ref>Standard Statistics Co., ''New Honey for Operating and Producing.''</ref>
! Great Britain <ref>Midland Bank, London, ''New Issues for British Companies,'' converted from £ to $ at $4.8665.</ref>
|-
| 1927
| $3,201,000,000
| $710,509,000
|-
| 1928
| 3,062,000,000
| 983,033,000
|-
| 1929
| 3,668,000,000
| 759,174,000
|-
| 1930
| 3,039,000,000
| 394,186,500
|-
| 1931
| 1,006,000,000
| 155,728,000
|-
| 1932
| 321,000,000
| 248,191,500
|-
| 1933
| 177,000,000
| 296,856,500
|-
| 1934
| 356,000,000
| 350,388,000
|-
| 1935
| 348,000,000
| 666,710,500
|-
|}
The country now reached a greater crisis than in 1933. The [[National debt]], which was $22 billion when Roosevelt took office and largely a heritage of [[World War I]], now was $37 billion. Taxes had been more than doubled by Roosevelt.
By April 1938 unemployment reached several thousand more than when Roosevelt was elected in 1932. This was now Roosevelt’s Double Dip Depression. Voices began to speak up suggesting after all Hoover may have known what he was doing, but here, nine years after the Depression began the fundamental condition of the country was no further advanced than it was at the end of Hoover's three year struggle with it.
The Second Term was a failure, for FDR had overreached and his efforts to fight the conservatives in the business community, the GOP and his own party (in the South) produced a backlash against excessive presidential control. With war braking out in Europe in 1939, it was time to turn to foreign affairs.
The Second Term was a failure, for FDR had overreached and his efforts to fight the conservatives in the business community, the GOP and his own party (in the South) produced a backlash against excessive presidential control. With war braking out in Europe in 1939, it was time to turn to foreign affairs.