The Great Depression and the New Deal

The Great Depression and the New Deal 1933-1939

I. FDR: Politician in a Wheelchair • 1932 – Republicans re-nominate Hoover and the Democrats nominated an up and coming NY governor Franklin D. Roosevelt • Roosevelt from a wealthy NY family, distant cousin of TR • Suffered from paralysis caused by polio that made him tolerant, patient and able to “feel the pain” of the common man • One of his major assets was his wife, Eleanor • She campaigned for her husbands policies, the oppressed and the poor • Was one of the most active first ladies

I. FDR: Politician in a Wheelchair • Political appeal was that he was a great speaker and uplifting confidence • As governor of NY he used the state to relieve the suffering caused by the depression • To dispel doubts about health he vigorously campaigned • Promised to balance budget and sweeping social and economic reforms, although the specifics were vague • Preached a New Deal for the “forgotten man”’ • Won the election easily • Election of 1932 was the first that African Americans voted heavily Democratic • Election was as much anti-Hoover as pro-Roosevelt • During Hoover’s lame duck months Roosevelt did little to help out until he took office

III. FDR and the Three R’s • Winter after election saw the hard times getting worse, over 80% of banks were closed • During inauguration speech he reassured the American people and said the government must wage a war to end the depression • “New Deal”, federal gov’t takes more active role in promoting recovery, provides direct relief to individuals • Promoted three R’s –relief, reform and recovery • Relief to help immediately • Reform- pass legislation so depression would not occur again • Recovery- short and long term goals to improve economy • The First New Deal (1933-1935) was characterized by relief of the immediate problems of unemployment • Roosevelt was a pragmatist rather than an ideologue and he was open to using many different approached to problems • Acted decisively from the beginning, known as “First 100 days” • Roosevelt relied on a select group of advisers to known as the “Brain Trust”, a group of young reform minded intellectuals that helped author New Deal legislation

III. FDR and the Three R’s • First 100 days (March 9-June 16, 1933) cranked out legislation that set Roosevelt’s New Deal in motion, many ideas had progressive roots • Roosevelt introduced idea of president as legislative leader • Insurance for elderly, disabled, unemployed, restriction on child labor and concern for the environment • Congress gave Roosevelt broad powers to fight Depression, any action at all was important to the public confidence • Favored work relief over direct aid • First act was to close the banks for four days, declared nationwide bank holiday

IV. Roosevelt Manages the Money • 1933 –Emergency Banking Relief Act- banks called for immediate action, closed for 4 days • Good, solvent banks allowed to reopen, reorganized banks to put financial system on sound footing • Banks put under the control of the Treasury Department • Roosevelt gave fist “fireside chat” to reassure public, optimistic speeches help keep Americans calm during Depression • FDR close relationship with press assured positive response for projects • Used mass media as tool to promote programs • June, Congress created the FDIC, which guaranteed bank deposits of up to $5,000 • At about the same time, the Federal Securities Act was passed to help strengthen confidence in the stock market--the SEC also created to regulate the stock and bond markets • Roosevelt pushed for managed currency to cause inflation and relieve debt burdens • FDR also officially abandoned the gold standard to help raise stock and commodity prices • To increase government revenue the first steps at repealing prohibition happened

V. Creating Jobs for the Jobless • Another urgent priority n 1933 was creating immediate relief for widespread unemployment • Roosevelt used government and Congress to create a number of programs aimed at relief • Used federal money to “prime the pump” of the economy • March, CCC created to provide useful jobs for young men aged 18-25 • 3 million men took to woods and fields in national forests, parks, and recreation areas, and to help with soil conservation projects • Pay $30/month,($25 went home) but that was more than many people got at the time • Directed by army officers and foresters, men worked under a semi-military atmosphere--discipline and living in a camp • May, Federal Emergency Relief Administration (FERA) passed, headed by Harry L. Hopkins (who became the second most powerful person in administration) • Hopkins spent $5 million within 2 hours of taking office • FERA aimed at working through states • $500 million in FERA funds supported state construction projects--over 5,000 public buildings and 7,000 bridges, organized adult literacy programs, financed college education for poor students, and set up day-care centers for low-income families • Congress passed laws to help ease the acute debt problem for farmers and homeowners--the Farm Credit Administration and the Home Owner's Loan Act--which gave low-interest rates on refinancing mortgages

V. Creating Jobs for the Jobless • 1933Civil Works Administration established • Provided “make work” projects for many unemployed Americans • Improving infrastructure, providing teachers for schools • Program became too expensive and was abandoned after 4 months • 1935- Replaced by Works Progress Administration (WPA) headed by Hopkins • Built nations roads, dredged rivers, municipal buildings • $5b program • Federal Art Project, Federal Writers Project, Federal Music Project- artists, writers program, set precedent of federal funding for arts • Program ended, accused artists of spreading radical beliefs • Ended in 1943 provided work for over 9 million

VI. A Day for Every Demagogue • Conservatives- New Deal made government too powerful (conservatives/ for limited gov’t) • Undermined individualism, free enterprise • Socialists- New Deal did not do enough • Only concern was for banks, business Socialism: If you own two cows you give one to your neighbor. Communism: You give both cows to the government and the government gives you back some milk. Fascism: You keep both cows, but the government takes your milk, and sells some of it back to you. New Deal: You shoot both cows and milk the government. Republican joke of the 1930s

VI. A Day for Every Demagogue • Populist movement seen as voice for poor, challenge power of elite, capitalized on discontent of Americans • Father Charles Coughlin • Catholic priest with radio program broadcast out of Detroit, large following • after turning against Roosevelt, Coughlin tells his listeners that capitalism is dying, and that a new system based on "social justice" should be created (not always clear on what "social justice" exactly means) • Coughlin forms the National Union of Social Justice in Nov. 1934 • He argues that nation's problems were caused by bankers--and that the banks should be controlled by the national government • Arguments against banks took a steadily increasing anti-Semitic tone as time goes on • Coughlin's support wanes by mid-1935, and he is censured for his political activities by Catholic church

VI. A Day for Every Demagogue • Huey Long ("Kingfish") • Governor of Louisiana (then U.S. Senator)--very ambitious, calls for redistribution of American wealth • Starts a Share Our Wealth program in Jan. 1934 • Long proposed to: • liquidate all personal fortunes above a certain amount • give every family enough money to buy a home, an automobile, and a radio • elderly would receive pensions • worthy boys would be sent to college • would establish a minimum wage, shortened work week, a balanced farm program, and immediate payment of soldiers' bonuses • Long's program drew immense following nationwide--claimed more than 27,000 Share Our Wealth clubs and 7.5 million followers • Long assassinated in 1935--Share Our Wealth continues but declines swiftly

VII. Helping Industry and Labor • June 1933 Congress enacted National Industrial Recovery Act • Most far reaching and complex New Deal Act, designed to help industry, labor, unemployed • Two parts- economic recovery and public works projects • Most controversial part was the NRA (National Recovery Administration) • It tried to insure minimum wage, maximum hours (more money to spend, spread out more jobs) • Tried to regulate competition and set industry wide codes that business had to follow, set standard wages and prices, production quotas (rule for “fair competition) • Labor guaranteed to have power to collectively bargain, form unions and organize into unions without interference (did not create adequate enforcement standards) • NRA also launched huge publicity program (Blue Eagle), urging consumers to buy only from companies that adhered to the NRA's codes of conduct • Public Works Administration (PWA), part of the NIRA also approved $3.3 billion dollars for a public-works program to create work for the jobless, pumping money back into the economy • PWA spent $4 billion (in all) on nearly 35,000 projects--constructing dams, bridges, and public buildings (post offices in particular)

VII. Helping Industry and Labor • Worked for a time because it was viewed as doing something • When economy began to improve many businesses began to criticize codes, too many competing interests to succeed • Many criticized that large companies had more power than smaller ones (concentration of industry Roosevelt saw a good thing), robbed small companies of a chance to compete • Limiting industrial production discouraged investment • Shot down by Supreme Court in the Schechter Poultry Corp. v. United States, that stated the federal government had no right to regulate commerce in the states • Paved way for National Labor Relations Act (Wagner Act), 1935 • Stimulates union growth , requires employers to recognize and bargain with their employees' unions • Establishes the National Labor Relations Board to act as a watchdog in labor-management relations • 1938- Fair Labor Standards Act- set up minimum wage, maximum hours • Wage codes excluded agricultural workers, service workers and domestic workers (jobs held by women and minorities) • Positive legacy- 40 hour workweek, minimum wage, abolition of child labor, spurred growth of unions, helped stabilize business

VII. Regional Planning • New Deal reformers set out to regulate the huge electric power industry • Public utility affected lives of most Americans • Often accused of excessive rates • Tennessee Valley region one of the poorest regions, rural and without electricity in many homes was a perfect place for the New Dealers to experiment • Idea was to develop hydroelectric power • 1933-Tennessee Valley Authority (TVA) • established to build 6 dams, bring jobs, help with river navigation, help with environmental conservation, improves industry, schools and mostly to send cheap, government supplied power through the remote valleys • Helped regulate utility rates across country, paved way for electrification of rural America over the next decade • Criticized by some for government entering into private enterprise

VIII. Three R’s for Farmers • Low prices because of overproduction made farming situation desperate • 1933Agricultural Adjustment Administration (AAA) enacted to help farmers • Goal to raise prices through artificial scarcity • Eliminate surplus by giving farmers money to reduce crop acreage, money raised through tax on processors of farm products • Farmers had to plow under crops and destroy livestock (destruction of food when country was hungry) • Brought up commodity prices over the next two years over 50%

VIII. Three R’s for Farmers • Paying farmers did actually increase unemployment • Supreme Court killed program in 1935 declaring taxation provisions unconstitutional • 1936 Congress reorganized relief for farmers with Soil Conservation and Domestic Allotment Act omitted processing taxes, provided benefit payments for soil conservation (emphasis on conservation) • 1938 Second AAA same as earlier program but left out processing taxes, combination of conservation and not farming

IX. Dust Bowl • Southern Plains experienced a decade long drought during 1930’s • Dried soil and wind created huge dust storms that made life miserable • Human development made situation worse • High grain prices pushed farmers into marginal lands • Planted vast acreage with mechanical plows, and farmed too intensively • Disrupted ecology of plains and loosened soil that blew away during drought • Many families left region • Refugees known as Okies, no matter where they were from • Most headed out west- CA, OR, WA-lured by promise of jobs, did not find them (competition for seasonal work with Latinos, Asians) • Rural states lost population • Large farmers bought up cheap abandoned land at cheap prices, expanded operations

X. Opposition from the Court • Court killed many New Deal programs • Killed NIRA, AAA • Court thought New Deal was upsetting the balance between the three branches of government • FDR reaction add six new justices to court • Critics call plan “court packing”, accused of upsetting balance of power • 1937 for various reasons Supreme Court begins to rule in favor of New Deal programs • Many older justices begin to retire • Replaced with judges more friendly to Roosevelt • Court more willing to expand role of gov’t for years to come • Weakened FDR politically, seen as trying to make pres. too powerful

XI. 2ND New Deal • Despite the challenges from the left and right, FDR remains popular with most Americans and easily wins reelection in 1936 • Reason for FDR's continued popularity comes from a shift in New Deal policy--what is called the Second New Deal • By the middle of 1935, FDR is fed up with his critics in business and industry--refuses to try and please everyone • FDR argues that Second New Deal saves the capitalist system by "reforming its excesses and addressing its less desirable social consequences” • 2nd New Deal focuses on needs of urban and rural poor and the workers, aimed at long term reform and recovery • These new programs greatly expand federal relief efforts to American workers and pump money into economy • Driving idea behind many of Second New Deal programs is deficit spending • Proposed by British economist John Maynard Keynes • Federal Deficit 1932- $460 m, 1936 $4.4b • Some thought spending was wasteful • Roosevelt following Keynesian Economic Theory • Government deficit spending/ intervention necessary when economy is bad • Put money in hands of consumers (work, public projects) so they have money to spend (pump priming)

XII. 2nd New Deal Legislation • Improved labor relations through National Labor Relations Act, Fair Labor Standards Act • 1935 Social Security Act- pension system for elderly, unemployment insurance, insurance for work related accidents, • Helped poverty stricken families and disabled, did not cover all equally (widows, farm workers) • Possibly greatest legacy of New Deal • Program paid for by tax on earnings (regressive tax because it took money from pockets of all at fixed rate) • Decreased money supply, money was needed to bring us out of Depression • Did not cover domestic workers, self employed, farm workers • 1935 Revenue Act - raised tax rates on incomes over $50,000,created federal estate and gift taxes, established federal tax on corporations • Resettlement Administration (1935) • Loans money to small farmers, tenants, and sharecroppers so they can acquire their own farms on productive land • Rural Electrification Administration (REA)--provides power to rural America • Replaced in 1937 by the Farm Security Administration to make loans to prevent marginal farmers from sinking further.

XIV. Twilight of the New Deal • During first Roosevelt term economy showed signs of recovery • By 1937 economy was slipping again because of Social Security tax and pullback in massive government spending because of concern for balanced budget • This is when Roosevelt really adopted Keynesian economic spending and pushed for massive spending to prevent another depression • 1936- Coalition of conservative southern Democrats and Republicans blocks further reform and attacks some of New Deal agencies • 1939- FDR and Congress begin to turn attention to foreign affairs--WWII--no new domestic reforms attempted • Revival of economy begins but it did not fully recover until WWII

XV. Women and Minorities • Women began to carve a niche for themselves • First woman cabinet Secretary Frances Perkins (Sec. of Labor) • African American woman, Mark McLeod Bethune, was director of National Youth Administration • Minorities did not fare well under the New Deal, Roosevelt failed to address racism and segregation for fear of alienating Southern Democrats, was not a high priority • Many New Deal programs favored whites or were for whites only (Federal Housing Administration, CCC,TVA all practiced racial segregation) • Minority unemployment as around 50% • Many small and tenant farmers were driven off land by AAA because marginal lands were the first to be cut out of production, also eliminated jobs for migrant workers

XV. Women and Minorities • Mexican Americans could not receive benefits of federal relief because of inability to produce proof of citizenship • Many left and went back to Mexico • Native Americans did see some benefits, tried to reinvigorate tribal lands and autonomy (Indian New Deal) • NAACP did gain some ground in the fight for racial justice • Racial prejudice gained momentum in Scottsboro case in 1931 where nine black youths were accused of raping a white woman in Alabama and the men were denied equal protection under the law (because of all white juries) and received inadequate defense

XVI. Effects of the New Deal • Relieved the worst of the financial crisis • Changed role between government and citizens, assure minimum level of well being • Gov’t assumed responsibility for caring for sick, poor, elderly, disabled, unemployed • Established principle that gov’t responsible for welfare of Americans • Safety net for needy Americans • Critics said expansion limited freedoms for Americans • Prevented collapse of economic system, allowed people to gain self respect • Purged capitalism of excesses and abuse by few, prevented a more radical swing to the left • First New Deal experimented with managed economy, Second New Deal enforced competition using government to prime the economy with spending • Changed nature of presidency • Executive branch created new federal agencies, large bureaucracy with little supervision from Congress • FDR used presidency to set social, economic agenda • FDR used relationship with press assured positive response for projects, tool to promote programs

XVI. Effects of the New Deal Expanded role of the federal government • Increased size and scope of government • Increased regulatory functions • New things- taxes taken directly from checks • Created foundation for post-war growth • Gov’t accepted responsibility for economic growth • Restored confidence to financial system • Labor laws protected workers, increased economic power • Life improved for rural Americans (REA,TVA) Created a new political coalition • Democratic Party gains power • Brought together southern whites, northern blue collar workers, Midwestern farmers, African Americans • African Americans begin to vote Democratic during 1930’s • Democrats majority in both houses of Congress (controlled Congress all but four years 32-95) • Social/ethnic tensions decreased, minorities, immigrants felt part of mainstream culture • Work programs brought diverse groups together

XVII. Culture of the 1930’s • Mass entertainment (movies, radio) allowed Americans to escape worries of Depression • By the end of the 1930’s most homes had a radio • National radio networks broadcast comedians (Bob Hope, Jack Benny), soap operas, series • Daily news and commentary • People listen each week for their favorite shows • FDR used fireside chats to explain ideas promote New Deal • Movies provided means of escape from everyday worries (Wizard of Oz in 1939) • Movies- triumph of the common man, gangster films show declining faith in government, comedies (Marx Brothers especially) tried to laugh people out of the depression • Comic book heroes become popular (Superman, Dick Tracy, Flash Gordon)

Franklin Roosevelt and the Shadow of War 1933-1941

I. The London Conference • After WWI America turned inward, by the 1930’s economic problems caused America to ignore events in Europe and Asia • By the end of the decade Roosevelt had convinced the American public, because of events in Europe and Asia, that America had to play a role in international affairs • 1933- 66 nation London Economic Conference, leaders meet to help stabilize the financial and economic meltdown • America refuses to participate • Pushed world into deeper financial distress and played into the hands of the rising dictators across Europe

II. Asia and the USSR • Depression caused withdrawal form Asian affairs • Philippines seen as a liability and competition for the sugar industry • 1934-Tydings-McDuffie Act give Philippines independence (with economic, naval conditions) in 1946 • Americans freed themselves from Philippine obligation • Japanese used American withdrawal as a reason to step up aggression in the region • One international gesture by the Roosevelt administration was formal recognition of the USSR • Hoped for increased trade and as a counterbalance to growing power of Germany and Japan

III. Improved Relations with Latin America • New era in relations with Latin America, suggested that US was content to be a regional power • Military intervention had not paid off and Depression had cooled off economic aggression • Roosevelt wanted to get Latin American countries on the side of he US to defend Western Hemisphere • Troops pulled out of countries, Cuba let out of restrictions of Platt Amendment • Good Neighbor Policy accented consultation and nonintervention

IV. Reciprocal Trade • Policy of Sec. of State Cordell Hull • Goal was to increase international trade • Trade seen as a two way street and that tariffs presented barriers to trade • 1934 Congress passes Reciprocal Trade Agreements Act • Lowered existing trade rates if other countries lifted their tariffs as well • Agreements made by executive branch not Senate, more efficient and faster • Increased foreign trade, helped foster better relations with Latin America • Reversed years of high tariff policy • Paved the way for American led free trade after WWII

V. Dictators and War • Great Depression, WWI led to changes across the world • Germans resented Treaty of Versailles • Italy, Japan wanted more land • Led to rise of brutal dictatorships • Totalitarianism- government where single party or leader controls social, economic and cultural lives of people

V. Dictators and War • USSR • 1924 Joseph Stalin takes control of USSR • Move to industrialize and form state controlled farms • Great Terror- purges Communist party of traitors (10m deaths) • Fear and massive propaganda kept Stalin n power • Seen by US as an ally

V. Dictators and War • Italy • Economic depression, fear of communist takeover • 1919 Benito Mussolini (Il Duce) forms fascist party • Promoted nationalism, make Italy great again • Fascism promoted classless society • Followers known as blackshirts • 1922 forms government- controls press, creates secret police, indoctrinates youth • Never as powerful as Stalin or Hitler

V. Dictators and War • Germany • After WWI Germany becomes democracy (Weimar Republic) • 1920’s economic troubles, anger over result of war, internal disunity • Early 1930’s problems with government led to rise of anti-democratic parties • National Socialist Workers Party (Nazi), promote German ethnic solidarity • Led by Adolf Hitler • Hitler stated explanations for German failures in book Mein Kampf • Criticized political programs, ideologies, people • Want to unify German people into one state (Reich) • Blamed Jews as greatest threat to Germany • Book presented blueprint for world domination • Problems of German economy allowed Nazis to take power • 1933- Hitler appointed chancellor of Germany • Mid 1930’s Hitler controlled press, educational system, removed all opposition • Aided by secret police • Hitler Youth Programs indoctrinated young • Late 1930’s economic policies, rearmament, public works projects bring Germany out of the depression • Political initiatives (anti- Semitism) restrict freedoms

V. Dictators and War • Japan • 1920’s increase in democracy in Japan, changed by Depression • Power shifted toward military control • Thought expansion through Asia would end economic trouble, allow crowded island nation more space to grow • 1931-attack Manchuria, establish puppet state, shut Open Door policy in conquered region • Violated international agreements • 1932 –US issues Stimson Doctrine that proclaims US would not recognize territorial acquisitions made by force • Americans begin informal boycott of Japanese goods • Seen as a slap on the wrist by Japan, did not deter them • 1937- “Rape of Nanjing” kill over 200,000 people, burn city

VI. Congress Legislates Neutrality • Americans believed seas allowed them protection form rise of totalitarian states • Many disillusioned from WWI and debt issues that followed • 1934-Debt Default Act prevented debt dodging nations to borrow further from US • American fear of being drawn into war • 1934-36 Congressional investigative committees (Nye Commission) determine that bankers and manufacturers in U.S. made huge fortunes off of WWI, findings reinforce anti-war sentiment • 1935-1937, Congress passes series of Neutrality Acts that embody anti-war feelings, prohibit U.S. from making loans or selling arms to warring nations and ban American travel on ships of warring nations • Actions try to legislate US out of war • Neutrality played into hands of dictators, instead of using industry to aid allies it ignored them, allowed dictators to control events

VII. American Dooms Loyalist Spain • 1936-1939 Spanish Civil War was a dress rehearsal for WWII • Spanish rebels led by fascist leader Franco, supported by Germany and Italy • Legitimate government supported by USSR, helped chill American sympathy • Congress passed legislation to not help either side • Germans used conflict to test out new weapons • Inaction by democratic powers made dictators more aggressive • US determination to keep out of war at any price weakened our military to deter aggression • 1938 Congress appropriates money to build up navy

VIII. Appeasing Germany and Japan • 1937- After the attack on Beijing, Roosevelt decline to invoke neutrality legislation in order to provide China with arms against the Japanese (Japan could also buy weapons from the US) • Roosevelt condemned Japanese attack on China (Quarantine speech, Chicago 1937) • Alliance of countries should isolate aggressive countries economically • December 1937- Japanese attack and sink US gunboat Panay • Japan makes apology and pays an indemnity for damages

VIII. Appeasing Japan and Germany • 1935- Hitler openly flouts Treaty of Versailles by increasing the size of the German army and war machine • 1936 Hitler takes the Rhineland, begins to exterminate Jewish population under his control • Spring 1938- Hitler takes Austria (Anschluss), part of Czechoslovakia (Sudetenland), areas populated by ethnic Germans • Munich Pact- BR,FR appease Germany, preserve European peace, by sacrificing these regions • France, Britain –policy of appeasement (granting concessions to keep peace) • Appeasement made Hitler, Mussolini, Japan more bold • Why appeasement? • Wanted to avoid repeat of WWI • Saw USSR as greater threat than Germany (Germany would be a buffer state)

IX. Hitler’s Belligerency and US Neutrality • 1939- France, Britain see appeasement fails, German aggression needed to be stopped by force • Spring 1939 Hitler takes rest of Czech., violates Munich Pact • August 1939- Nazi- Soviet Nonaggression Pact- two countries will not attack each other, plan to divide Poland • Stalin hopes that the Allies and Germany will fight each other leaving USSR as sole power in Europe • Sept. 1939- Germans attack Poland (beginning of war in Europe) • New style of warfare- blitzkrieg (lighting war)- emphasize speed and firepower, use of new military technology (tanks, planes, motorized vehicles) make it very effective

IX. Hitler’s Belligerency and US Neutrality • Roosevelt issues proclamations of neutrality, US determined to stay out of war • Summons Congress to lift arms embargo on France and Britain • Neutrality Act 1939- “cash and carry policy” allowed nations to buy arms from US for cash, if they carried it on their own ships • Aided Allies, Britain controlled the Atlantic • Many upset, thought Roosevelt was leading US to war • Only way to keep America safe was policy of neutrality • Hurt China because it was blockaded by Japanese navy • Did help solve problems of unemployment crisis in US, also helped US ramp up production before war began

X. The Fall of France • Spring 1940 Germany conquers Denmark, Norway, Netherlands, Belgium • May 1940- Germany takes France • Collapse of France shocks Americans, only country between US and Germany was Britain • If Britain defeated, pose threat to American security, Hitler could use industrial power of Europe for war • Roosevelt called upon Congress to appropriate $37 billion to build up army and navy • Sept. 1940 conscription law passed America’s first peacetime draft • End of American neutrality in war, although public not fully behind it yet • 1940 Winston Churchill, new prime minister of GB , said war threat to freedom everywhere, war between nations and ideologies

XI. Bolstering Britain with the Destroyer Deal • Great Britain only country left fighting Axis in Europe • To invade Britain (Operation Sea Lion), Germans needed to take out British air force- control skies • Late 1940- Battle of Britain, air war over England • Germans bombed military and civilian targets (The Blitz) • British resistance caused Germany to postpone invasion of Britain • Debate to help intensified in US, defend America alone or support British with all means short of war • Most Americans supported the position of providing aid • Roosevelt makes secret deal with British to provide WWI era destroyers for defensive naval base sites in the Western Hemisphere • Violation of neutral obligations, seemed to violate neutrality acts

XII. Election of 1940 and Lend -Lease • FDR wins third term based on need for experienced leadership in times of crisis • Late 1940 British running out of money, new scheme to get arms to countries, Lend –Lease Bill, give arms to be returned later and accounts could be settled after the war • Effect of bill was economic declaration of war • Increased capacity of US factories helped prepare for real war • America could be “arsenal of democracy” according to Roosevelt • January 6, 1941 Roosevelt gives “Four Freedoms” speech (freedom of speech, worship, from fear, from want) said Germany, Japan threats to freedoms • After German attack on USSR in 1941 US made over $1 billion in aid available to Soviets

XIII. Atlantic Charter • August 1941 Roosevelt, Churchill meet to discuss future of world after war • Sign Atlantic Charter- endorsed national self- determination, international system of security • Deepened alliance between two countries • Foundation for United Nations • July 1941 US warships begin to escort lend-lease shipments • Fall 1941 Hitler orders U-boats to attack American ships in Atlantic

XIV. Surprise Attack on Pearl Harbor • Japan mired in battle over China • War machine dependent on US for steel, oil, aviation gasoline • Japanese wanted expansion to secure resources from other countries • Assistance from US unpopular in America • Roosevelt held off embargo to keep Japanese expansion in check • Late 1940 first US embargoes, froze Japanese assets and shipments of supplies • 1941 General Tojo becomes prime minister, focuses on military expansion • Nov. 1941 US insists Japan leave China in order to renew trade relations, Japanese unwilling to lose face in situation • US officials knew Japanese decision was for war, but expected it to be in Philippines not Hawaii • Dec. 7, 1941 Japanese attack US Naval base in Pearl Harbor, destroy most of US Pacific Fleet • Dec. 11 Germany, Italy declare war on US • Attack aroused and united Americans in favor of war, silenced isolationists • Attack on Pearl Harbor last in a long series of events t5hat brought America into war

The Great Depression and the New Deal