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Essay: New Ordeal

41,414 bytes added, 23:20, December 1, 2022
/* FDR's Southern Strategy */ Wikifying. Also, why is this same block of text lazily copy/pasted across multiple articles?
[[Image:29-49.gif|right|250px|thumb|Dow Jones Industrial Averages, 1929-49.]]
[[Image:115yeardowgoldratio.gif|right|200px|thumb|Dow Jones Index in constant dollars relative to the price of gold. The chart is a good reflection of living standards throughout the period.]]
The '''New Ordeal''' is the period of time between 1929 and 1949, when the American economy finally recovered from the [[Crash of '29]]. It encompasses the four presidential terms U.S. President [[Franklin D. Roosevelt]] had been elected to, the final term having been administered mostly by his successor, President [[Harry S. Truman]]. The New Ordeal also is sometimes referred to as the '''Great Ordeal''' or simply the '''Ordeal'''.
__TOC__During the twenty years of the New Ordeal, America experienced 2 deep recessions, or essentially a second depression within the [[Great Depression]], and [[World War II]], a calamity that claimed the lives of 55 million people worldwide. Many of the nations involved in World War II resorted to "economic planning", as Economist [[Friedrich Hayek]] referred to it, to address the so-called "crisis in capitalism" in the 1930s.
During the two decades between The 1929 and -1949, America experienced two recessions, and recession had within it a recession from 1937-1943; 1933 to 1937 were recovery years stimulated by the [[World War IINew Deal]]government spending. However, which claimed by 1937 the lives of 55 million people worldwide. Many of the nations involved in World War II resorted to "economic planning," as Economist [[Friedrich Hayek]] referred nation had nowhere near recovered to where it, was in 1929. Manufacturing demand stimulated by WWII led to address the so1943-called "crisis in capitalism" 1949 recovery, where finally, in 1949, the 1930sNew York Stock Exchange recovered to the level it had been at 1929.
The Depression had within it a recession from 1937-1938; 1933 to 1937 were recovery years stimulated by In 1929 the [[New Deal]] government spendingDJIA declined 90. However by 1937 the US economy had not recovered 0% over a duration 34 months. Six successive market crashes comprised this famed bear market: (1) September to the levels of November 1929(DJIA fell 40% in this first phase). Manufacturing demand stimulated by WWII and the pent up post-war demand for durable consumer goods fueled the 1941-1949 recovery, until finally, in 1949, the New York Stock Exchange reached the level it had been at prior (2) April to the crash of OctoberJune 1930. (3) September to December 1930. (4) March to May 1931. (5) July to January 1932. (6) March to July 1932. A new bull market then started immediately, 1929as did a business recovery.
From 1929-1932Business had topped out mildly, a month before the DJIA declined 90.0% over first crash; a period of 34 months. Six successive market crashes comprised this famed bear market: (1) September gradual mild decline continued to November 1929 (DJIA fell 40% in this first phase). (2) April to June 1930, then fell sharply into a depression simultaneously with the end of the 1930 stock market rally. (3) September to The business decline halted in December 1930. (4) March to May 1931. (5) July to January 1932. (, stayed level for 6) March to months, then plunged again in steep economic decline that didn’t lose its downward momentum for a full year, until July 1932. A new bull market then started immediately, as did Business improved intermittently thereafter but still remained at depression levels through most of the decade of the 1930s except for a business short recoveryin 1936–37.
Business had topped out mildly, In 1934 a month before the first crash; a gradual mild decline continued to April 1930, then fell sharply into a depression simultaneously with the end fall of the 1930 stock market rally24. The business decline halted 1% in December 1930, stayed level for 6 the DJIA began again over 9 months, then plunged again in steep economic decline that did not lose its downward momentum for a full year, until July 1932. Business improved intermittently thereafter but still remained at depression levels through most of Then the decade of the 1930s except for a short recovery in 1936–37market took seven more months to get back up to where 1934 began.
In 1934, a fall of 24.1% in the DJIA began again over 9 months. Then the market took seven more months to get back up to where 1934 began.==FDR's Southern Strategy==
==Economic planning==:To win election, FDR forged a coalition of Northern Democrats and Southern segregationists by placing [[John Nance Garner]] of Texas on the ticket as his running mate. The Democrats won an overwhelming majority in the House, picked up 97 seats, bringing the total to 313. On the Republican side the first African-American in the 20th century, and the first since Reconstruction, Rep. [[Oscar De Priest]] was re-elected. The Democratic chairman of the new Congress'Committee on Accounts, Rep. Lindsay Warren, ordered a De Priest staffer and his son to be thrown out of the House's whites-only cafeteria. There was a separate facility for blacks in the basement. De Priest introduced a resolution calling for an investigation. On the House floor, De Priest refuted Warren'''Main article''s claim that African-Americans had always been banned from the restaurant, recalling that he and other black patrons had frequented the House cafeteria. De Priest implored his colleagues to support the resolution, remarking, {{quotebox-float|“If we allow segregation and the denial of constitutional rights under the Dome of the Capitol, where in God’s name will we get them? If we allow this challenge to go without correcting it, it will set an example where people will say Congress itself approves of segregation.”<ref>https: //history.house.gov/People/Listing/D/DE-PRIEST,-Oscar-Stanton-(D000263)/</ref>}} [[File:Students pledging allegiance to the American flag with the Bellamy salute.jpg|thumb|left|300px|Elementary school children giving the fascist salute while reciting the [[Pledge of Allegiance]] during the New Deal.]]The effort to desegregate the Democrat-controlled House cafeteria was defeated. Civil rights were not on the party agenda. FDR always opposed the federal anti-lynching law as part of FDR's Southern Strategy. [[Anti-lynching bill]]s were first introduced by Republicans. The [[Costigan–Wagner Act]] was introduced in 1934, calling on the Roosevelt administration to take an active role in ending [[Economic planninglynching]]in the United States. Senators Edward Costigan of Colorado and Robert Wagner of New York sponsored the bill. Under its provisions, any state officer who failed to exercise diligence in protecting a person under their care from a lynch mob or who neglected to arrest persons involved in a lynching, could themselves be subject to federal imprisonment for five years and a $5,000 fine. In 1935 attempts were made to persuade Roosevelt to speak out in support of the bill. However, Roosevelt refused. He argued that the white voters in the South would never forgive him if he supported the bill and he would, therefore, lose the next election.
{{Cquote|Planning will become a function of Even the federal government; either that or appearance in the planning agency will supersede newspapers of the governmentlynching of Rubin Stacy failed to change Roosevelt's mind on the subject. Six deputies were escorting Stacy to Dade County jail in Miami on July 19, which is why1935, when he was taken by a white mob and hanged by the side of the home of courseMarion Jones, the woman who had made the original complaint against him. ''The New York Times'' later revealed that "subsequent investigation revealed that Stacy, such a scheme will be assimilated homeless tenant farmer, had gone to the Statehouse to ask for food; the woman became frightened and screamed when she saw Stacy's face."<ref>https://www.naacp.org/naacp-history-costigan-wagner-act/</ref> The Costigan-Wagner Bill had wide support; however, the bill was defeated in 1934, 1935, 1937, 1938 and 1940.[[File:LynchinginAmerica-6ngpoajqm9pq7z40qd21q4ejl9fx6zrggi1pq7r5bic.png|20pxright|20px300px|[[Rex Tugwell]]thumb|FDR's Southern Strategy: FDR always opposed federal anti-lynching legislation, first introduced by Republicans.<ref>''The Principle https://www.washingtonpost.com/news/volokh-conspiracy/wp/2016/12/07/is-it-time-for-progressives-to-stop-venerating-fdr/?utm_term=.2b894a27cc04</ref>]] Ever since the Draft Riots of Planning and 1863, New York was the Institution bastion of Laissez FaireDemocratic Resistance in the North. It was a Republican mayor however who made the first efforts to coax traditional black Lincoln Republicans into the New Deal coalition. Fiorello La Guardia was a [[RINO]],or Republican New Dealer. Roosevelt provided federal funds to La Guardia and withheld support from La Guardia'' Rexford Gs opponents. TugwellAfter the 1935 Harlem riot, The American Economic ReviewLa Guardia decreed that African-Americans were not to be arrested for anything, vol. 22, no. 1, March 1932and that police patrolling [[Harlem]] could not carry nightsticks. <ref>[httphttps://wwwvault.bartlebyfbi.comgov/73.../147Eleanor%20Roosevelt%20Part%2016%20of%2040 Eleanor Roosevelt Part 16 of 37 - FBI — The Vault, p.html46]</ref>}}
President Roosevelt excluded 4-time gold medalist [[Jesse Owens]] from the customary [[White House]] visit by [[Olympics|Olympic]] athletes. As Jesse Owens later explained:<ref>https://fee.org/articles/hitler-didn-t-snub-me-it-was-our-president/</ref>{{quotebox-float|"[[Hitler]] didn’t snub me; it was our president [[FDR]] who snubbed me. The president didn’t even send a telegram."}}===Civilian Conservation Corps===:{{See also|New Deal attemptedand Fascism}}New Deal relief efforts targeted FDR's white Democrat voter base. A Black Republican congressman attached a non-discrimination amendment, unsuccessfullyhowever Democrats put a ten percent quota system on Blacks who were suffering from higher incidence of poverty and unemployment than whites or the population in general. In more prosperous times 30 years later the War on Poverty was the New Deal in reverse, targeting Blacks with the assumption that all Blacks were poor and uneducated.  "The German Labor Service (''Reichsarbeitsdienst''&mdash;RAD) arose from a party organization set up in 1931 and known as the ''NS-Arbeitsdienst'' for the purpose of easing unemployment,"<ref>United States War Department, ''[https://books.google.com/books?id=b3W1tiuHzcoC Handbook on German Military Forces]'' (Washington: GPO, 1945) p. 203</ref> "like its New Deal equivalent, the Civilian Conservation Corps [CCC],"<ref>David Schoenbaum, ''[https://books.google.com/books?id=1wNCSxrUlyMC Hitler's Social Revolution: Class and Status in Nazi Germany, 1933-1939]'' (W. W. Norton & Company, 1997) ISBN 0393315541, p. 78</ref> which would be established two years later.<ref>[https://www.presidency.ucsb.edu/ws/index.php?pid=14609 Executive Order 6101 Starting The Civilian Conservation Corps], The American Presidency Project, University of California - Santa Barbara</ref> According to Garraty, both{{cquote|were essentially designed to keep young men out of the labor market. Roosevelt described work camps as a means for getting youth ‘off the city street corners,’ Hitler as a way of keeping them from ‘rotting helplessly in the streets.' In both countries much was made of the beneficial social results of mixing thousands of young people from different walks of life in the camps. Furthermore, both were organized on semimilitary lines with the subsidiary purposes of improving the physical fitness of potential soldiers and stimulating public commitment to national service in an emergency.<ref>John A. Garraty, "[http://www.jstor.org/pss/1858346 The New Deal, National Socialism, and the Great Depression]," ''The American Historical Review'', Vol. 78, No. 4 (October, 1973), pp. 907-944</ref>}}{|class="infobox" style="float:right; font-size:85%; width:1ex; line-height:17px; margin: 0px 0px 5px 50px" cellpadding="1"|[[File:Franklin roosevelt.jpg|116px]]|[[File:Richard Russell Jr.jpg|138px]]|[[File:Eurith D. Rivers.jpg|129px]]|-|colspan="3"|<hr/>[[President Franklin Roosevelt]] (left), Sen. [[Richard Russell, Jr.]] (center), and [[Eurith D. Rivers]] (right) easily won their elections in Georgia in 1936 as racist whites supported the left-wing policies they favored.|}The CCC "smacks of Fascism, of Hitlerism, of a form of Sovietism," observed William Green, president of the American Federation of Labor.<ref>Jean Edward Smith ''[ FDR]'' (Random House, 2008), ISBN 0812970497, p. 340</ref> "The American side, and especially President Roosevelt himself, was strikingly open and receptive to ideas emanating from Nazi Germany," writes historian [http://www.eui.eu/DepartmentsAndCentres/HistoryAndCivilization/People/Professors/Patel.aspx Kiran Klaus Patel]. According to Patel, there was at least one actual "intercultural transfer," in which the CCC studied and adopted ("on personal orders from Roosevelt") a program for training aviation mechanics modeled after the Flyer Hitler Youth.<ref>Kiran Klaus Patel, ''[https://books.google.com/books?id=nqTsBdOzNF4C Soldiers of labor: labor service in Nazi Germany and New Deal America, 1933-1945]'' (Cambridge University Press, 2005), ISBN 0521834163, pp. 278, 289</ref> Republican Rep. Oscar DePriest, the only black member of Congress, made sure that the 1933 legislation that established the CCC banned [[discrimination]] based on “race, color, or creed." Black enrollment in the CCC was capped at ten percent of total recruits–roughly equivalent to the proportion of blacks in the U.S. in 1930, but nowhere near proportional to the number of blacks eligible for relief during the [[Great Depression]]. Tens of thousands were turned away. The U.S. Army controlled CCC camp administration and operations, and the [[Wilsonian]] policy of racial segregation transferred over to the new civilian workforce. Most of the CCC's quarter million African-American enrollees served in segregated companies and were unable to attain positions of authority.<ref>The Progressive Republican states of Wisconsin and Minnesota had integrated camps.</ref> Some Southern states categorically excluded blacks, arguing that they were needed for growing and harvesting cotton.<ref>[https://livingnewdeal.org/just-way-segregation-ccc-2/ Just the way society was.” Segregation in the CCC], December 28, 2014.</ref> ===Tuskegee syphilis experiment===:{{See also|Tuskegee syphilis experiment}}[[File:Tuskegee experiment.jpg|right|350px|thumb|Tuskegee experiment during the New Deal.<ref>https://ghionjournal.com/tuskegee-institute-study-2-0-targeting-african-americans/</ref>]]The study was initially funded by the private Rosenwald Fund. However, The Fund ended its involvement due to lack of matching state funds, and the federal government under the heavily [[Democratic party|Democrat]] 73rd Congress took over the funding.<ref>https://www.slu.edu/law/academics/journals/health-law-policy/pdfs/issues/v1-i2/menikoff_article.pdf</ref> According to the 1995 Abstract to ''The Tuskegee Syphilis Experiment: [[biotechnology]] and the [[administrative state]]:''{{quotebox-float|"The central issue of the Tuskegee Syphilis Experiment was [[property]]: property in the body and [[intellectual property]]. Once removed from the body, tissue and body fluids were not legally the property of the Tuskegee subjects. Consequently, there was not a direct relationship between a patient and research that used his sera. The Public Health Service (PHS) was free to exercise its property right in Tuskegee sera to develop serologic tests for syphilis with commercial potential. To camouflage the true meaning, the PHS made a distinction between direct clinical studies and indirect studies of tissue and body fluids. This deception caused all reviews to date to limit their examination to documents labeled by the PHS as directly related to the Tuskegee Syphilis Experiment. This excluded other information in the public domain. Despite the absence of a clinical protocol, this subterfuge led each to falsely conclude that the Tuskagee Syphilis Experiment was a clinical study. Based on publications of indirect research using sera and cerebrospinal fluid, this article conceives a very history of the Tuskagee Syphilis Experiment. Syphilis could only cultivate in living beings. As in [[slavery]], the generative ability of the body made the Tuskegee subjects real property and gave untreated syphilis and the sera of the Tuskegee subjects immense commercial value. Published protocols exploited the Tuskegee Syphilis Experiment to invent and commercialize biotechnology for the applied science of syphilis [[serology]].<ref>https://pubmed.ncbi.nlm.nih.gov/7869408/</ref>}}Jinbin Park of Kyung Hee University reports,<ref>https://www.researchgate.net/scientific-contributions/Jinbin-Park-2137382871</ref>{{quotebox-float|"the growing influence of [[eugenics]] and [[racial]] pathology at the time reinforced discriminative views on minorities. [[Progressivism]] was realized in the form of domestic reform and imperial pursuit at the same time. Major medical journals argued that [[blacks]] were inclined to have certain defects, especially [[sexually transmitted diseases]] like syphilis, because of their prodigal behavior and lack of hygiene. This kind of racial ideas were shared by the PHS [Public Health Service] officials who were in charge of the Tuskegee Study. Lastly, the PHS officials believed in continuing the experiment regardless of various social changes. They considered that black participants were not only poor but also ignorant of and even unwilling to undergo the treatment. When the exposure of the experiment led to the [[Senate]] investigation in 1973, the participating doctors of the PHS maintained that their study offered valuable contribution to the medical research. This paper argues that the combination of the efficiency of military medicine, [[progressive]] and imperial racial [[ideology]], and [[discrimination]] on [[African-American]]s resulted in the Tuskegee Syphilis Experiment.}} ===Housing discrimination becomes law===The [[Federal Housing Administration]] (FHA) was created by the Democratic congress in 1934 to insure loans for construction and repairs of homes. White middle-class families could buy suburban homes with little or no down payments and extended 30-year amortization schedules and their monthly charges were often less than rents the families had previously paid to housing authorities or private landlords. But the FHA had an explicit policy of not insuring suburban mortgages for African-Americans, according to writer Richard Rothstein on the ''The American Prospect'' website. In suburban New York's Nassau County, just east of Queens, Levittown was built in 1947 containing 17,500 mass-produced two-bedroom houses, requiring nothing down and monthly payments of about only $60. At the FHA's insistence, developer William Levitt did not sell homes to Blacks, and each deed included a prohibition of such resales in the future.<ref>https://www.npr.org/2017/05/03/526655831/a-forgotten-history-of-how-the-u-s-government-segregated-america</ref>[[File:Hugo black kkk.jpeg|right|250px|thumb|Not until after the Democrat Senate approved FDR's appointment of Hugo Black to a lifetime appointment to the bench, was a conservative journalist able to reveal Black was a Klan member.]] ===1936 elections in Georgia===In the 1936 election cycle, [[FDR]] overwhelmingly won [[Georgia]], a [[Deep South]] state entrenched in Democrat racism, over [[Moderate Republican]] candidate [[Alf Landon]]. Appealing to racist white Southerners with his liberal [[New Deal]] policies, his coattails helped carry fellow allies [[Richard Russell, Jr.]] and [[Eurith D. Rivers]] to victory. Governor [[Eugene Talmadge]], a [[white supremacist]] who ran on an anti-New Deal campaign against Russell in the Democrat primary for Senate,<ref>[https://www.georgiaencyclopedia.org/articles/government-politics/eugene-talmadge-1884-1946 Eugene Talmadge (1884-1946)]. ''New Georgia Encyclopedia''. Retrieved February 24, 2021.</ref><ref>Williamson, Kevin D. (August 29, 2018). [https://www.nationalreview.com/2018/08/senator-richard-russell-history-of-racist-progressives/ Was Senator Russell a ‘Conservative’ Democrat?]. ''National Review''. Retrieved February 24, 2021.</ref> lost in a landslide against the incumbent New Dealer.<ref>[https://www.ourcampaigns.com/RaceDetail.html?RaceID=377214 GA US Senate - D Primary]. ''Our Campaigns''. Retrieved February 24, 2021.</ref> Due to Talmadge being term-limited from running for re-election as governor, the gubernatorial race became an open seat in the election cycle. Rivers, a Democrat [[Klansman]] and liberal New Dealer,<ref>[https://www.georgiaencyclopedia.org/articles/government-politics/e-d-rivers-1895-1967 E. D. Rivers (1895-1967)]. ''New Georgia Encyclopedia''. Retrieved February 24, 2021.</ref> easily won the primary.<ref>[https://www.ourcampaigns.com/RaceDetail.html?RaceID=378445 GA Governor - D Primary]. ''Our Campaigns''. Retrieved February 24, 2021.</ref> ===Klansman on the Court===In 1937 FDR appointed Alabama Senator [[Hugo Black]] to the Supreme Court. Black was a member of the [[Ku Klux Klan]] and built his career campaigning at Klan meetings. Black was well known for his anti-[[Catholic]] viewpoints.<ref>[https://books.google.com/books?id=WX2LcraS1EgC&pg=PA219 The Oxford Handbook of Church and State in the United States]</ref> In ''Korematsu v. the United States'', Black voted to uphold [[President Roosevelt]]'s mass arrests and incarceration of [[Japanese]] men, women, and children based on [[race]]. President Roosevelt called Democrat Klansman Sen. [[Theodore Bilbo]] "a real friend of [[liberal]] [[government]]."<ref>[https://www.nationalreview.com/corner/new-deal-democrats-republican-party/ New Deal . . . Conservatives?] ''National Review''. Retrieved September 14th, 2020.</ref> Bilbo claimed himself to be "100 percent for Roosevelt...and the New Deal."<ref>[https://www.theatlantic.com/politics/archive/2013/04/a-history-of-liberal-white-racism-cont/275129/ A History of Liberal White Racism, Cont.] ''The Atlantic''. Retrieved September 14th, 2020.</ref> In a 1938 filibuster against anti-[[lynching]] legislation, Bilbo said on the [[Senate]] floor that the bill would “open the floodgates of [[hell]] in [[the South]]” by encouraging Black men to rape white women.<ref name="segregationinamerica.eji.org">https://segregationinamerica.eji.org/report/segregation-forever-leaders.html</ref> Franklin Roosevelt nominated [[James F. Byrnes]] to the Supreme Court and was confirmed by the Democrat Senate in 1941. The NAACP opposed his confirmation in a telegram to the White House: {{quotebox-float|“If Senator Byrnes at any time in his long public career failed to take a position inimical to the human and citizenship rights of 13 million American Negro citizens, close scrutiny of his record fails to reveal it.”}}As a member of the U.S. House of Representatives and Senate for more than two decades, Byrnes personally blocked a Senate investigation of a South Carolina lynching and opposed federal anti-lynching legislation, insisting that “rape is responsible, directly and indirectly, for most of the lynching in America.” Byrnes later held the office of Secretary of State under President Harry Truman. He remained a vocal opponent of integration throughout his term as South Carolina governor from 1951 to 1955. In his inaugural address, Byrnes proclaimed, {{quotebox-float|“Whatever is necessary to continue the separation of the races in the schools of South Carolina is going to be done by the white people of the state. That is my ticket as a private citizen. It will be my ticket [as governor].”}} A building and a professorship at the University of South Carolina bear his name, as do Byrnes Auditorium at Winthrop University, Byrnes Hall dormitory at Clemson University, and James F. Byrnes High School in Duncan, South Carolina.<ref name="segregationinamerica.eji.org"/>[[File:Bilbo.png|thumb|right|190px|Democrat [[Theodore G. Bilbo]] was an extremely racist Democrat from Mississippi who blocked anti-lynching legislation and was an apologist for racial violence.]] ===Hill political machine in Alabama===For several decades, the single-party Democrat politics of [[Alabama]] was dominated by the political machine of [[Lister Hill]], a longtime segregationist senator from the state. According to the Encyclopedia of Alabama:<ref name="Lister Hill">[http://www.encyclopediaofalabama.org/article/h-1103 Lister Hill]. ''Encyclopedia of Alabama''. Retrieved April 18, 2021.</ref>{{cquote|From the New Deal of Franklin Roosevelt until the beginnings of the civil rights era, the Hill machine convinced Alabama's overwhelmingly white electorate to vote based on their economic needs; as a result, Alabama was often described as the most liberal state in the Deep South.}} While Hill wasn't a demagogic agitator in the manner of race-baiters like [[George Wallace]], he nonetheless consistently opposed civil rights legislation to appeal to the racism of many voters in his state in order to maintain political power.<ref name="Lister Hill"/> Along with other prominent politicians from Alabama (including [[John Sparkman]]<ref name="John J. Sparkman">[http://www.encyclopediaofalabama.org/article/h-1441 John J. Sparkman]. ''Encyclopedia of Alabama''. Retrieved February 14, 2021.</ref><ref name="JOHN SPARKMAN, 85, EX-SENATOR, DIES">[https://www.nytimes.com/1985/11/17/us/john-sparkman-85-ex-senator-dies.html JOHN SPARKMAN, 85, EX-SENATOR, DIES]. ''The New York Times''. Retrieved February 14, 2021.</ref> and [[William B. Bankhead]]), he appealed to left-wing economics/big government policies which racist whites during the time backed. ===Opposition to anti-lynching law===Despite insistence by leftists that the Democrat opposition to civil rights legislation (including anti-lynching legislation) was exclusively from "conservative"/Southern Democrats, it's important to note that a 1937 anti-lynching bill passed the House with opposition from both the Southern bloc in addition to 15 Northern Democrats.<ref>[https://www.govtrack.us/congress/votes/75-1/h27 TO PASS H. R. 1507, AN ANTI-LYNCHING BILL.]. ''GovTrack.us''. Retrieved April 18, 2021.</ref> Of those who voted on the legislation by party, it got 96% support from Republicans and only 62% from Democrats. In late July 1937, Senate Democrats successfully [[Table (Government)|tabled]] an anti-lynching effort (introduced by pro-civil rights [[DINO]] [[Royal S. Copeland]]) twice. On July 26, the Senate voted 41–34 to kill an anti-lynching amendment,<ref>[https://www.govtrack.us/congress/votes/75-1/s43 TO TABLE AN AMENDMENT TO S. 69, THE INTERSTATE COMMERCE ACT. THE AMEND. OFFERED BY SENATOR COPELAND WHICH WOULD HAVE ADDED HOUSE BILL 1507, THE ANTILYNCHING BILL, TO S. 69, A BILL LIMITING THE SIZE OF TRAINS IN INTERSTATE COMMERCE.]. ''GovTrack.us''. Retrieved April 18, 2021.</ref> with the "Yeas" including future [[Supreme Court]] justice [[Hugo Black]] and future Vice President [[Alben Barkley]]. Over a dozen Northern Democrats voted with the Southern bloc to kill the amendment. 61% of Democrats voted in favor of tabling. Five days later, the majority of Senate Democrats (66% of them) voted yet again to kill the amendment in a 46–39 vote.<ref>[https://www.govtrack.us/congress/votes/75-1/s58 TO TABLE AN AMENDMENT TO S. 2475. OFFERED BY SENATOR COPELAND WHICH WOULD HAVE ADDED THE ANTILYNCHING BILL AS PERFECTED BY THE SENATE COMMITTEE ON THE JUDICIARY TO THE PENDING LEGISLATION.]. ''GovTrack.us''. Retrieved April 18, 2021.</ref> ===Catholicism and the Kennedy's===On the eve of [[World War II]], Roosevelt appointed [[Joseph P. Kennedy]], father of John Kennedy, [[Bobby Kennedy]], and [[Ted Kennedy]] as Ambassador to [[Great Britain]]. Joe Kennedy was a notorious [[anti-Semite]] and [[Nazi]] sympathizer. At the time of the [[Kristallnacht]], the ''New York Times'' reported Kennedy had a solution to the problems of German Jews: ship them all to [[Africa]].<ref>https://www.thedailybeast.com/joe-kennedys-answer-to-the-jewish-question-ship-them-to-africa?ref=home?ref=home</ref> In 1940, after rejecting DNC chair James Farley as his successor because Farley was [[Catholic]],<ref>John Flynn, ''The Roosevelt Myth'', 1948, p. 179.</ref> Roosevelt broke with tradition and sought a third term as president. The decision was controversial - Democrat Governor [[Strom Thurmond]] supported his third term while his own vice president, John Nance Garner, quit over the matter.<ref>https://www.americanheritage.com/content/what-trent-meant</ref> ===Immigration and refugees=== After [[Kristallnacht]] in November 1938, many Jews within Germany decided that it was time to leave. The ''S.S St. Louis'' carrying 937 passengers, most of them Jewish, set sail from Hamburg to [[Cuba]] on May 13, 1939. In Cuba the passengers were denied entrance without posting a $500 bond. A few dozen passengers disembarked. The ship set sail for Florida. Once in Florida waters, Sec. of State [[Cordell Hull]] advised President Roosevelt to deny the Jews [[asylum]]. The [[U.S. Coast Guard]] and planes followed the ''St. Louis'' to prevent it from landing.<ref>https://www.jewishvirtuallibrary.org/the-tragedy-of-s-s-st-louis</ref>[[File:Instructions to japanese.png|right|250px|thumb]] Many Jews had fled to Central and South America to escape [[Nazi]] persecution. When war broke out, these [[Latin America]]n countries did not want German Jews. They were deported to the United States where the Roosevelt administration was willing to hold them as German citizens in America [[concentration camp]]s. The Roosevelt administration traded them back to Germany in exchange for American civilians held in detention in Germany. The fate of these Jews is unknown.<ref>https://www.warhistoryonline.com/instant-articles/internment-of-germans.html</ref> In 1943, Roosevelt told French military leaders at the Casablanca Conference that "the number of Jews engaged in the practice of the professions" in liberated North Africa "should be definitely limited", lest there be a recurrence of "the understandable complaints which the Germans bore towards the Jews in Germany."<ref>http://new.wymaninstitute.org/2013/08/a-presidents-private-thoughts-about-jews/</ref> ===Mass incarceration of minorities===Wikipedia states that Democrat President Franklin Roosevelt set up "[[concentration camp]]s" during World War II while the United States was at war with [[Nazi Germany]]: {{quotebox-float|"Executive Order 9066 was a United States presidential executive order signed and issued during World War II by United States President Franklin D. Roosevelt on February 19, 1942. This order authorized the Secretary of War to prescribe certain areas as military zones, clearing the way for the incarceration of Japanese Americans, German Americans, and Italian Americans in U.S. [[concentration camps]]."<ref>https://en.wikipedia.org/wiki/Executive_Order_9066</ref>}}===Port Chicago disaster===The Port Chicago disaster was a deadly munitions explosion that occurred on July 17, 1944, at the Port Chicago Naval Magazine in Port Chicago, California. Munitions detonated while being loaded onto a cargo vessel bound for the Pacific Theater of Operations, killing 320 sailors and civilians and injuring 390 others. Blacks were denied combat duty and all the enlisted men employed as loaders at Port Chicago were African-American.<ref>https://www.zinnedproject.org/news/tdih/port-chicago-distaster/</ref> A month later, unsafe conditions inspired hundreds of servicemen to refuse to load munitions, an act known as the Port Chicago Mutiny. This was a crime punishable by death since the United States was at war. Fifty men‍—‌which the [[liberal media]] dubbed the "Port Chicago 50"‍—‌were convicted of mutiny and sentenced to 15 years of prison and hard labor, as well as a dishonorable discharge. All 50 were African American.<ref>https://www.nationalww2museum.org/war/articles/port-chicago-exoneration-thurgood-marshall-jr-john-lawrence</ref> ==Economic planning=={{See also|Fascism and the New Deal|Economic planning}}[[Image:Economicplanning.JPG|right|250px|thumb|Criticism of Economic Planning was suppressed; F. A. Hayek's ''Road to Serfdom'' was rejected for publication 3 times "on political grounds" <ref>Richard Cockett, ''Thinking the Unthinkable: Think-Tanks and the Economic Counter-Revolution, 1931–1983'', Harper Collins, London 1995, pg. 100.</ref>]]{{Cquote|Planning will become a function of the federal government; either that or the planning agency will supersede the government, which is why, of course, such a scheme will be assimilated to the State.|20px|20px|[[Rex Tugwell]]<ref>''The Principle of Planning and the Institution of Laissez Faire,'' Rexford G. Tugwell, The American Economic Review, vol. 22, no. 1, March 1932. [http://www.bartleby.com/73/147.html]</ref>}}The New Deal did not promote economic recovery. Instead, rather it established a system which created required a dependent class of Americanspermanent crisis to support a [[military industrial complex]]. The system resembled the managed and bureaucratized , state supported system of [[Germany]] before [[World War I]]. Prior to the implementation of the New Deal, Before this regime the United States economic lived in a system relied on which depended for its economic expansion upon private investment in private enterprises as its primary means of expansionenterprise. After World War II the US lived in a system which depended for its expansion and vitality upon the government. This is a system, based upon a pre-World War II European model created at the moment when it had fallen into complete disrepute and disintegration in Europe. <ref>[http://www.rooseveltmyth.com/book/fdrmyth_Chapter_Fifteen___The_Roosevelt_fdrmyth_Chapter_Fifteen__The_Roosevelt_.htm ''The Roosevelt Myth'', Book 3, Ch. 14], John T. Flynn, Fox and Wilkes, 1948.</ref>
===Cartelization===
Enforcement of the Anti-trust Act was considered as an essential instrument to prevent [[cartel]]s and trusts in restraint of trade which had been viewed as deadly to the system of [[free enterprise]]. On the [[United States presidential election, 1932|campaign trail in 1932]] Franklin Roosevelt called loudly for its strict enforcement. Yet immediately upon Roosevelt's accession to office the Anti-trust Act was suspended in order to cartelize every industry in America on the Italian [[fascist]] corporative model.<ref>''The Roosevelt Myth'', John T. Flynn, Fox and Wilkes, 1948, Book 1, Chapter 4, [http://www.rooseveltmyth.com/cgi-bin/framed/2767/book/fdrmyth_Chapter_Four__The_New_New_Deal.htm ''The New New Deal''].</ref>
The [[National Recovery Act]] (NRA) and the [[Agricultural Adjustment Act]] (AAA) were plans to place take the whole industrial and agricultural sectors life of the United States country under the wing of the government, organize it into vast farm and industrial cartels, as they were called in Germany, corporatives as they were called in Italy, and operate business and farms by economic planning schemes dictated and carried out under the supervision of government. This, at the time, was known as [[fascism]]. In those days fascism was not yet defined as [[anti-­Semitism]].<ref>Lawrence H. White, ''[https://docs.google.com/viewer?a=v&q=cache:LnGBDv8xPH4J:mercatus.org/sites/default/files/publication/WP1043_The%2520New%2520Deal%2520and%2520Institutionalist%2520Economies.pdf+&hl=en&gl=us&pid=bl&srcid=ADGEESj6MXspbrCxLA0uDSgPqtrzOPAtz0eQMVFMtRwJXLV80zRN1V5yvMHVwFY74CIW0EijdZ6IaEK0aVEVtppi1AuQpbqA0dAdK00YNLlTpeE-ME-Y-ZlJ2HVkvawKAdn7921r9V_L&sig=AHIEtbQ4xqYx7frizGpPV9B2XEwSQLXhGg&pli=1 Pre-Keynsian Economic Policy]''. August 2010.</ref><ref>''The Roosevelt Myth'', Book 1, Chapter 7, p. 78 [https://books.google.com/books?id=CVqTXJjmtmUC&pg=PA78&dq=In+those+days+fascism+was+not+defined+as+anti-Semitism.&hl=en&sa=X&ei=UUJBT9WbHoPg2QW5-KXYAQ&ved=0CDIQ6AEwAA#v=onepage&q=In%20those%20days%20fascism%20was%20not%20defined%20as%20anti-Semitism.&f=false ''An Enemy Is Welcomed''], Flynn, 1948.</ref>
===Managerial state===
During the Second World WarJames Burnham, a former [[Trotskyite]], discovered in 1941 that the US economy, due "workers revolution" which allegedly was to overthrow the demands of the conflictcapitalist "exploiters", became very much was in real practice a command economy"managerial revolution" which replaced older 19th century owners of capital with twentieth century technocrats and managers. Ford Burnham found that "workers in this mythical 'workers' state' were, Chryslerthe facts showed, General Motors, Packarda subject class far more heavily exploited than the workers under capitalism, " and Studebaker all ceased that the production of civilian automobiles by new managers in a planned economy "have curbed the end of February, 1942. Instead, masses and have instituted a social structure in which they fulfilled government contracts that required them to build tanksare on top, aircraft, and vehicles for military use. They also turned out engines for aviation and naval use.Other durable goods were not easily obtainable by civilians during virtue of [[private property]] rights in the conflict. Gibson refrigerator for example, still produced refrigeratorsinstruments of production, but only for the government. Part of through their factory was dedicated to the production monopoly control of gliders for carrying troops in a state power which has fused with the D-Day invasion of Juneeconomy." <ref>James Burnham, ''The Managerial Revolution'', Indiana University Press, 1944Bloomingham 1966.</ref>
==Communists in the New Deal==
[[Image:Fbisilvermasterfilevol15p4.JPG|right|300px|thumb|[[CPUSA]] defector [[Louis Budenz]] testified he could name 400 individuals involved in the [[CPUSA#Secret apparatus|Communist conspiracy]];<ref>[http://content.cdlib.org/xtf/view?docId=ft296nb15t&chunk.id=d0e6193&toc.depth=1&toc.id=d0e4718&brand=eschol FBI Headquarters File 100-63, Louis Francis Budenz, Internal Security—C, Serial 122.]</ref> others testified there may have been over 1000.<ref>Executive Sessions of the Senate Permanent Subcommittee on Investigations of the Committee on Government Operations ([https://www.senate.gov/artandhistory/history/common/generic/McCarthy_Transcripts.htm McCarthy Hearings 1953-54]).</ref> The [[Silvermaster group]] infiltrated 27 high level Stalinist [[KGB]] operatives into government jobs in the Roosevelt and Truman administrations, including the first General Secretary of the [[United Nations]], the first head of the [[International Monetary Fund]], the head of the [[Manhattan Project]] as well as speech writers and staff assistants for both the President and Vice President.<ref>[http://education-research.org/PDFs/Silvermaster015.pdf FBI Silvermaster file Vol. 15, pg. 4 pdf.]</ref> ]]
The New Deal was infiltrated with [[Communists]].<ref>The [[Moynihan Commission on Government Secrecy]] wrote in its final report, "The first fact is that a significant Communist conspiracy was in place in Washington, New York, and Hollywood." [http://www.fas.org/sgp/library/moynihan/appa6.html Moynihan Commission on Government Secrecy, Appendix A 6. The Experience of The Bomb]; the report also included, "At this distance it is difficult to conceive the intensity of Communist conviction in the 1930s....Looking back, however, we see more clearly the dilemma ... By 1950... the United States Government possessed information which the American public desperately needed to know: proof that there had been a serious attack on American security by the [[Soviet Union]], with considerable assistance from what was, indeed, an “enemy within.” The fact that we knew this was now known to, or sufficiently surmised by, the Soviet authorities. Only the American public was denied this information. [http://www.fas.org/sgp/library/moynihan/appa7.html Moynihan Commission on Government Secrecy, Appendix A 7. The Cold War]</ref> [[Harold Ware]] was a [[Communist Party USA]] (CPUSA) official in the AAA and founded the [[Ware group]]. The group consisted of young lawyers and economists, had about 75 members in 1934 and was divided into about eight cells. The AAA was later found [[unconstitutional]], but by that time the Communist operatives had established jobs in government employment. [[Alger Hiss]], [[Lee Pressman]], [[John Abt]], [[Charles Kramer]], [[Nathan Witt]], [[Henry Collins]], [[George Silverman]], [[Marion Bachrach]], [[John Herrmann]], [[Nathaniel Weyl]], [[Donald Hiss]] and [[Victor Perlo]] were all members. [[Harry Dexter White]], who was involved in the most auspicious policy [[subversion (political)|subversion]] as Director of the Division of Monetary Research in the [[Treasury Department]], was also affiliated with the group. The Ware group was the CPUSA's covert arm at this time. Each of these agents not only provided classified documents to Soviet intelligence, but was involved in political influence operations as well.
===Class warfare===In 1934, a Congressional Investigation was held to examine statements by Dr. william A. Wirt, who headed the U.S. [[Department of Education|Office of Education]]. Dr. Wirt had attended a dinner party with several Brain Trusters at the home of his secretary, [[Alice Barrows]].<ref>A June 1945 [[Venona project]] decryption of Soviet [[KGB]] wartime cables from the Washington D.C. KGB Office to Moscow's Eighth Department, the political intelligence wing, relayed information on matters regarding Attorney General Francis Biddle. KGB agent [[Charles Kramer]], who served on the staff of several U.S. Senate Subcommittees, and Barrows are the sources of the information. ''Venona 3706 KGB Washington to Moscow, 29 June 1945.'' Mary Van Kleek who headed the Russell Sage Foundation and also served on the Board of the National Council, visited Washington weekly to meet with Barrows and [[Greg Silvermaster|Nathan Gregory Silvermaster]].
During [[World War II]] Barrows was the Executive Secretary of the the National Council of American-Soviet Friendship. This organization was declared in 1953 to be a [[Glossary of espionage terms#Fronts and cutouts|Communist front]] organization by the [[Subversive Activities Control Board]] (SACB). In its Findings of Fact, the SACB said the National Council of American-Soviet Friendship, "advances positions...markedly pro-Soviet and...anti-United States Government...is a Communist-action organization which has as its primary purpose to advance the objectives of the world Communist movement under the [[hegemony]] of the Soviet Union; it has the policy to support and defend the Soviet Union under any and all circumstances...We conclude that the National Council of American-Soviet Friendship, Inc., is substantially directed, dominated, and controlled by the Communist Party of the United States...and is primarily operated for the purpose of giving aid and support to...the Soviet Union, a Communist foreign government." ''[http://ets.umdl.umich.edu/cgi/t/text/pageviewer-idx?c=usfexec;cc=usfexec;q1=Barrows;rgn=full%20text;idno=81242.0001.001;didno=81242.0001.001;view=image;seq=511;page=root;size=s;endseq=3;frm=frameset Reports of the Subversive Activities Control Board.]'' Washington. United States Government Printing Office. 1966. Vol. 1, p. 501.</ref>
Barrows began working for the Office of Education in 1919 and was secretly a member of the [[Communist Party of the United States]] (CPUSA) which advocated the violent overthrow of the United States Constitution. Several of the Brain Trusters present at the dinner revealed to Wirt they were CPUSA members. Wirt testified,
{{Cquote|I was told they believe that by thwarting our then evident economic recovery, they would be able to prolong the country’s destitution until they had demonstrated to the American people that the Government must operate business and commerce. By propaganda, they would destroy institutions making long term capital loans—and then push Uncle Sam into making these loans. Once Uncle Sam becomes our financier, he must also follow his money with control and management.<ref>Hearings, House Select Committee To Investigate Certain Statements of Dr. William Wirt, 73rd Congress, 2nd Session, April 10 and 17, 1934.</ref><ref>''Dr Wirt faces the cameras and tells all'', Literary Digest v. 117 (April 21, 1934) p. 7.</ref><ref>FBI Silvermaster file [http://education-research.org/PDFs/Silvermaster053.pdf Volume 53 June 1946], p. 78 pdf.</ref>}}
 
Outside government, the [[far-left]] was exerting considerable influence in the labor movement (it dominated the new [[Congress of Industrial Organizations|CIO]]), and was building a network of membership organizations. Thus the [[American League Against War and Fascism]] was formed in 1933 and, in 1937, became the American League for Peace and Democracy. There followed the [[American Youth Congress]], 1934; League of American Writers, 1935; National Negro Congress, 1936; and the American Congress for Democracy and Intellectual Freedom, 1939. All had significant Stalinist connections, and fought furious battles with the anti-Communist left.<ref>
 
Leuchtenburg (1963) 281-3; Irving Howe, Lewis A. Coser, and Julius Jacobson, ''The American Communist Party: a critical history, 1919-1957'' (1957); James R. Barrett, ''William Z. Foster and the Tragedy of American Radicalism'' (2002).</ref>
 
==Wealth Tax Act of 1935==
The [[New Deal]] was able to expropriate the upper income brackets even before [[World War II]]. In 1929, total aggregate Personal Income was estimated at $80.6 billion and the tax brackets making above $50,000 retained $5.2 billion, after income and surtax; in 1936, when total Personal Income was estimated at $64.2 billion, not quite $1.2 billion was retained by "the Rich". Taxable income above $100,000 was wholly absorbed by the government when account is made of the inheritance tax. Economist and former Austrian Finance Minister [[Joseph Schumpeter]] described it in these terms:
:"''a tremendous transfer of wealth has actually been effected, a transfer that quantitatively is comparable with that effected by [[Lenin]]. The present distribution of disposable incomes compares well with the one actually prevailing in Russia.''<ref>Schumperter continues: "the Russian act of April 4, 1940, concerning the income tax, reveals that incomes as low as 1.812 rubles per year were subject to it. It also reveals the existence of incomes of over 300,000 rubles which were then taxed at the rate of 50 per cent. Now, let us neglect the tax on the lowest incomes entirely and put the modal income in the 1,812–2,400 ruble group at 2,000 rubles; further, let us put the modal retained income in the highest group at no higher than 150,000 rubles (though those 300,000 rubles before tax were a lower limit). Then we discover that the higher of these modes was 75 times the lower one. Even if we put, for 1940, the American equivalent (not of course in purchasing power, but in the sense of equivalent position in the income scale) of the lower mode at as low as $1,000, we shall evidently not find much in the United States income distribution of retained incomes (even apart from the reductions specifically motivated by the requirements of war finance) to support, in the light of the Russian paradigma, the current phrases about atrocious inequalities, “concentration of power” as measured by concentration of income, and the like. The evidence presented in the well-known book by Bienstock, Schwarz and Yugov on ''Industrial Management'' in [[Russia]] tends to support this view. Many other details point in the same direction, for instance, the fact that those ranges of the professions who could formerly but cannot now afford domestic servants in the United States, do enjoy this privilege—worth a ton of electrical household gadgets—in Russia. All this still fails to take account of advantages that do not pass through income accounts. The power and social position—which is one of the main reasons for valuing a high income—of the industrial manager, especially if leader of the local unit of the [[Bolshevik]] party, is far and away above that of an American industrialist. Interesting phenomenon—this Lag of Ideas! Many well-meaning people in this country now profess horror or indignation at social inequalities which did exist fifty years ago, but no longer do. Things change, slogans remain."</ref>
 
===Class warfare===
:Main article:'' [[Class warfare]]
[[Robert H. Jackson]], Assistant Attorney General, and Secretary of the Interior [[Harold Ickes]] in December 1937 made speeches inspired by the President on the [[conspiratorial]] [[Marxist]] diatribe, ''America's 60 Families.'' <ref>''New Deal Chorus'', Time magazine, [http://www.time.com/time/magazine/article/0,9171,758849-1,00.html pg. 1][http://www.time.com/time/magazine/article/0,9171,758849-2,00.html pg. 2], Jan. 17, 1938.</ref>
In February 1944 Congress rejected Roosevelt's demand for a $10,500,000,000 tax increase and cut it to $2,300,000,000. Roosevelt vetoed it saying this was a "bill not for relief of the needy but of the greedy."
Senator [[Alben Barkley]], Democratic leader, rose on the floor of the Senate to say the veto was "a calculated and deliberate assault upon the legislative integrity of every member of Congress." The entire Senate united in a roar of applause. Barkley declared that after seven years of carrying the [[New Deal]] banner for Roosevelt, he would resign his post as Democratic majority leader and he called on every member of the Congress to preserve its self -respect and override the veto. The Senate overrode it 72 to 14 and the House 299 to 95.
==Crash of 1937==
1937 DJIA declined 51.8% over 56 months. There were five crash phases: (1) August to November (DJIA fell 40% in this first phase). (2) February to March 1938. (3) January to April 1939. (4) May 1940. (5) October 1941 to April 1942. Business peaked out and fell violently, simultaneously with stocks. Economic indicators bottomed out 9 months later (May 1938). The recovery began mildly at first, but not until the World War II production boom was the country lifted out of the Great Depression.
The period 1941–42 contained the longest nonstop downswing crash (7 1/2 months) in history. Certain analysts call this two separate bear markets, one from September 1937 to March 1938, and the second from May 1940 to April 1942.
 During the Great Bear Market from 1929 to 19401942, the [[Dow Jones Industrial Average]] (DJIA) had rallies of 48% (from November 13, 1929, to April 17, 1930), 94% (July 8, 1932, to September 7 of that year), 121% (February 27, 1933, to February 5, 1934), 127% (July 26, 1934, to March 10, 1937), 60% (March 31, 1938, to November 12 of that year), and 28% (April 8, 1939, to September 12 of that year). Yet, on April 28, 1942, during the early phase apex of US involvement in the [[Malthusian crisis]] that was [[World War II]], the DJIA was still at only 92.92, 76% below its September 3, 1929, high of 381.17. <ref>Daniel Turov, [http://www.leithner.com.au/newsletter/issue18.htm ''Mixed Message,''] Barron’s, 21 May 2001, quoted in the Liethner Letter, Issue 1826 June 2001, retrieved 11 June 2007.</ref>
===Double-dip recession===
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 New Deal===
The New Deal economists, however, as John Flynn cited, were just learning this important principle. But the Brain Trusters concluded that a continuous flow of savings into private investment was no longer possible. This is possible only when business men wish to borrow funds for new enterprises and expansion of old ones. But this would happen again, they said. Expansion on a sufficient scale in new enterprises and expanding old ones is hopeless because the economy has reached the end of its expansion era, as described above. The only way to avoid the inevitable collapse of the system, they proposed, was for the government to step in and borrow those sums which business refused to borrow and to spend the money on all sorts of welfare, educational, social and other public enterprises.
Government spending had already plunged the nation into debt to the tune of nearly $40 billion. Continuous spending of funds borrowed by the government would mean a continuous expansion of the government debt. Government debt, they argued, is not like private debt. It does not have to be paid. The government can keep it afloat indefinitely by redeeming old bonds with new bonds. Moreover , the interest on the government debt will not be a burden. "The debt is due by the people to themselves," they said. The people owe the debt. The people own the bonds which represent the debt. The government taxes the people to pay the interest on the bonds. It takes the taxes out of the pockets of the people and then pays it back to them in the form of interest. It is just taking it out of one pocket and putting it in the other.
The government therefore need not bother about the size of the debt. It can go on borrowing indefinitely.
By 1938 Roosevelt embarked on a massive defense appropriations buildup; the Administration would advance 30% to a defense contractor when placing an order. The National City Bank reported an increase of overall business profits in the year 1939 over 1938 of 63.6%, and in its December 1940 Bulletin showed for 284 companies "directly affected by war and defense program" a rise of 79.2%. The ''Wall Street Journal'' reported, "Betterment in profits was naturally more pronounced, as a rule, in those industries benefiting directly or indirectly from the European conflict." <ref>''Wall Street Journal'', May 3, 1940.</ref>
On February 28, 1934, Elliott Roosevelt, son of President Franklin Roosevelt, and [[Anthony Fokker]] each received half a million dollars for selling fifty military aircraft to the Soviet government. <ref>[http://www.time.com/time/magazine/article/0,9171,756770-2,00.html ''Son's Scheme''], Time magazine, Oct. 19, 1936,</ref>
Curtiss-Wright Aircraft, to enlarge its plant, received a loan of $92 million at 4%. [[I. F. Stone]] of ''[[The Nation]]'' magazine wrote,
Record keeping and even economic definitions then were not what they are today. By using the Dow Jones Industrial Average (which is practically the only measurement available in real time that scans the entire period) the Dow did not get back to the level it was at in 1929 until 1949 (160 pts on the Dow). Other economic indexes either did not exist, or were developed later, often by guess work. For example, the oft quotes unemployment rate of 25% which peaked in 1932 is only guess work based upon observations in New York City. No one knows what the real national figures were, or what it actually had been in places like Arkansas or Oklahoma. Gross output figures such as [[GDP]] did not exist either.
It was not until 1949 that [[living standards]] and peacetime [[employment]] returned to something like it was prior to 1929. The New Ordeal is evident today throughout American cities where one can see a distinct gap in the building and construction trades that took place in the decades of the 1930's 1930s and 40's. Little was built beyond quonset huts, tin structures with a semi-circular shape and a timber frame underneath. And what was built was either extremely expensive, or built by the government usually for military purposes.
==See also==
*[[New Deal]]
==Further reading==
*[http://gigablast.com/get?d=78268369924 ''Other People's Money''], John T. Flynn, The New Republic, February 20, 1935.
*''The New Ordeal'', Freeman Tilden, The North American Review, v. 239, February 1935, p. &nbsp;131-7.
*''Ordeal by Planning'', John Jewkes, Macmillan, New York, 1948. [http://www.questia.com/library/book/ordeal-by-planning-by-john-jewkes.jsp]
*''The Ordeal of Total War, 1939-1945'', Gordon Wright, New York, Evanston, and London, Harper & Row, 1968.
*[http://www.time.com/time/magazine/article/0,9171,792094,00.html ''The Great Ordeal''], TIME magazine, May. 14, 1945. *''Franklin D. Roosevelt: The Ordeal'', Frank Freidel, Boston: Little, Brown and Company, 1954.
==References==
<references/>{{reflist|2}}
[[Category:New Deal]]
[[Category:Great Depression]]
[[Category:politicsPolitics]][[Category:economicsEconomics]]{{DEFAULTSORT:New Ordeal}}
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