Monday, March 19, 2012

BLOG THREE






POST ONE: THE GREAT DEPRESSION 


AND NEW DEAL

 In the PBS American Experience documentary, "The Crash of 1929", the secrets of the stock market in 1920s America was explained. Events leading up to the crash were made more clear, as the lack of regulation on the stock market caused stocks to move erratically based on (biased and sometimes false) public opinion. The responsibility felt by robber barons for the stock market was something I found interesting, as often figures such as J. P. Morgan and Mitchell stepped in to effectively safe the American public from the looming credit crunch.

The existence of a sort of central bank (the Federal Reserve Fund, established in 1913) enabled smaller banks to borrow money from each other and, if needbe, borrow money from a centralized bank. Smaller banks were heavily involved in the stock market, and because of the confidence in the "consumer revolution", lending more money than there was in the bank became commonplace. Because of the American's government laissez faire attitude towards the entire thing, despite President Roosevelt's urging in 1906 to form some sort of centralized federal control for large trusts (Trumbore), there was no real government regulation for the crash of 1929. 

The Federal Reserve Fund, despite its creation as a force that would prevent "banking panics" remained silent before the crash. This tacit lack of confidence in the stock market caused a dip in stock prices, and the Federal Reserve Fund did nothing to prevent this. As the credit crunch and stock market crash loomed, the Federal Reserve Fund did nothing. Instead, it was up to the robber barons to sacrifice their fortunes for the everyman. 



President Wilson signing the Federal Reserve Act of 1913



Charles Mitchell, whose son and daughter were interviewed in the American Experience piece, didn't necessarily feel compassion for the "little man". He did, however, have great respect for the system and the entire stock market game, or else he wouldn't have saved it like he did. When a rival investor tried to take some of his holdings in Anaconda Copper (a South American based company Mitchell was backing financially), Mitchell growled "don't try to chisel in" (Thomas). This attitude parallels that of the mafia reference made in the American Experience episode. Al Capone did not put his money in the stock market, citing that the people who ran it were "crooked". He preferred the prohibition business. Mitchell was just as jealous as Capone over his money making habits, but Mitchell didn't have any Valentine's Day massacre. There were simply certain "turfs" that robber barons and gangsters alike did not easily part with. 



                Al Capone                                   The Hellhound of Wall Street  (Charles Mitchell) 


Because Mitchell didn't want to lose these particular South American holdings, he decided to have his bank (the National City Bank) borrow $25 million from the Federal Reserve Bank of New York, "defying the Federal Reserve Bank of Washington" (Thomas). One gets the sense that the state pride was still so prevalent, that there still wasn't a central reserve bank for all of the United States. The Federal Reserve Bank of New York did not make a sound at this move, and Mitchell put his millions back into the stock market to effectively save the day from the crash already occurring on March 27, 1929. 

Back in the capitol, Washington D.C. was starting to get vocal about their ignorance in financial affairs. Three senators prevailed on the Federal Reserve Fund to get Mitchell to resign from his position at the National City Bank. The Federal Reserve Fund, which technically could do just as they asked and were even legally required to do so because of the single-handed meddling that affected an entire country, stayed quiet. They didn't even answer their call to just say 'no', and stood "weak and vacillating, watching the bull market run rampant" (Thomas). 

Fueling the stock market crash was the unbounded optimism in consumer power. Household items were now something everyone could buy, and the latest technology (i.e., electricity) wasn't only for the rich. This was due in part to lowered taxes throughout the 1920s era (Helfrich). The strong American dollar post-WW1 encouraged people to spend money domestically, and the booming economy after WW1 maintained its momentum into the 1920s. There was also little foreign competition in the form of tariffs on foreign goods (Helfrich). The modern-day worker had rights, gained by unions, fairer pay, and more attention of the American government to safety and proper regulations (due in part to the Triangle Fire).

The propaganda employed during WW1 would also not go to waste. Americans realized how powerful propaganda could be, and employed it on home soil. As the text says, "corporate America would....simply apply these lessons...to win the hearts and minds of American “consumers” for the American consumer revolution" (Helfrich). The consumer revolution saw radios, washers, refrigerators and toasters become commonplace in the American kitchen. These appliances reduced the need for kitchen help and brought more money back to the homeowner. 

1920s Washing Machine Ad

The genius of men like Ford and Edison had propelled America into a powerhouse of ingenuity. Electricity was enabling many things, including the ticker-tape. As Helfrich writes, "US economic growth was grounded in America’s new high tech industries, chemicals, synthetic textiles, steam power, hydroelectric power, electric power, aviation, appliances, radios phonographs, and telephones". This would not be possible without the movement of goods from place to place by the railroad. President Wilson once wrote that the American attitude towards the railroads was an "aggressive one" (Trumbore). The capability to buy something and bring it home in a brand new Model T also aided appliance success. However, the domestic need was only as great as its population and so as the 1920s continued, companies saw demand drop greatly due to little international business. 

1920s Ford Ad


In many of the ads, there is still that hint of wanting to save, wanting to be thrifty. In the end, the businessman wants to cut a profit, and during this period many Americans were seeing themselves as businessmen. Of course, one can make a profit if one is willing to spend a great deal of money--many Americans looked to the robber barons, J.P. Morgan and Mitchell, playing the stock market at $10,000 a go. The ability for Americans to be loaned this amount with only 10% down spurred a movement towards the stock market and towards the supermarket shelves. Everyone saw themselves as rich, delusional, in part because they were surrounded by ads showing glamour that they could, in fact, afford. This propensity of Americans to buy, and own, objects may have been spurred by their insecurity after the war...that nothing was certain, not anymore. 

Asking people why they want to own things raises many answers, some of them being that they see value and worth and identity in the things they own. This is all the more powerful due to propaganda, which portrays an image you would like to be, and so you spend your money to be that image. 





Works Cited 

The Federal Reserve in Plain English. Board of Governors of the Federal Reserve System. 2006

Helfrich, Ron. "US History Civil War to the Present: A Thematic History". 2012.

Thomas, Gordan. The Day the Bubble Burst. Premier Digital Publishing: 1979. 

Trumbore, Brian. "J.P. Morgan -Savior". <http://www.buyandhold.com/bh/en/education/history/2000/122499.html>. 

"The Crash of 1929". PBS: American Experience. Accessed February 21, 2012. 









THE CIVILIAN CONSERVATION CORPS

The American Experience documentary on the CCC, the Civilian Conservations Corps, showed one of the highlights of Franklin D. Roosevelt's presidency, his political savvy and his ability to transform the United States for the better. Applying some of today's figures to the methods behind the CCC, I think this is a movement that could easily and effectively be reinstated in America's culture. 



Civilian Conservation Corps Badge

Founded in 1933, the Civilian Conservation Corps was a volunteer service for young men under the age of 25, of any race, that focused on water conservation, stopping erosion, fighting forest fires, making hiking trails, planting trees and generally taking care of the environment. The CCC was the most popular of all New Deal programs. For a day of work, each young man would get paid a dollar. He made $30 a month, $25 of which automatically went to his family, and $5 of which he had to spend. The CCC had many enemies, including labor unions and organized labor in general. Roosevelt combated many enemies by instilling union workers in prominent positions in the CCC (American Experience). 

In 1933, the unemployment rate was at 25% and that is a modest figure. The Dust Bowl had swept across America due to unwise farming practices (no crop rotation, imbalanced water tables) and so starvation wasn't uncommon. The country was close to a full-blown riot, with displaced young men having nothing to preoccupy them except their problems, and their families and churches not filling in the void of unemployment. The CCC eventually had three million men serve in its camps, about 2.4% of the American population at the time (US Bureau of Labor Statistics). 

CCC Workers

Young men loved the atmosphere of hard outdoor work, with free vocational programs at the end of the day, a paycheck going home, and skills in "being a man" (American Experience). Three square meals, clothing and shoes were relatively luxurious things to many of the young men, who had come from poverty in the midwestern United States. Some of the young men learned tools that would help them get a foot up in industry (mechanical, electrical and office work were all offered for free), and every young men had to learn to read and write before they left, according to Roosevelt. Roosevelt single-handedly formed a generation of young men that were literate, had an understanding of their own country's environment, and could follow orders. Without the CCC, having a suitable army for World War II may have been impossible or at least extremely difficult. 

Roosevelt's policies worked because he required something back. As he said in one of his CCC promotional clips, the new American spirit would be "willing and proud to work" (American Experience). Roosevelt didn't hand out opportunities for free. He expected that people would work for them. In the Helfrich text, Roosevelt "created the Federal Emergency Relief Act...which appropriated $500 million dollars for direct unemployment relief in the form of grants to states. He instituted work relief projects to give the unemployed jobs". This wasn't today's welfare or Medicaid. This wasn't a hand-out. This was money with the expectation that people would work for it, in some capacity. 

Currently, America's unemployment rate stands at 8.3% (Wolf). If 2.4% of this number could be relegated to employment like the CCC did in 1933, this would cut our unemployment rate immensely. Americans that are relying

on the government for some sort of income has jumped enormously. As Wolf of USA Today writes, "the federal price tag for Medicaid has jumped 36% in two years, to $273 billion. Jobless benefits have soared from $43 billion to $160 billion. The food stamps program has risen 80%, to $70 billion.

Welfare is up 24%, to $22 billion". This jump in costs is due partly to Congress and individual states expanding the qualifications for who can receive jobless benefits. The conditions are growing less and less stringent, and this is weighing on our economy and federal government and ultimately, the taxpayer. 




Roosevelt inspired people to work for a paycheck, whether that work was building playgrounds, cleaning up trash, or clearing trails for hiking. Clearly Roosevelt was relying on a young man to do this work, but I think his principle could be applied to the people who may be middle-aged and are receiving unemployment benefits. Having people do some sort of sewing or reading activity to schools, or even tending soil in their backyards for organic, local produce and paying them for it would be more beneficial to this country than getting paid to do nothing.

State unemployment offices are required to listen to every case regarding loss of a job. If you were laid off, then without a question you can claim unemployment. Workforce centers do exist, but their authority is limited and largely based on the claims of their patrons (The Unemployment Handbook). 


Roosevelt's desire for the American to have a spirit that was "willing and proud to work" has diminished. We are now a largely comatose population, spending eight hours a day on average in front of a screen (Stelter). Just as, before 1929, everyone believed they had the "right to be rich", it seems now we believe we have the "right to relax". 


Works Cited

"Do you Qualify to File for Unemployment?" The Unemployment Handbook. Accessed February 22, 2012. <http://unemploymenthandbook.com/unemployment-articles/all-about-unemployment/114-laid-off-fired-or-quit-do-you-qualify-to-file-for-unemployment>. 

"Employment Situation Summary". US Bureau of Labor Statistics. February 3, 2012. <http://www.bls.gov/news.release/empsit.nr0.htm>. 

 Helfrich, Ron. "US History Civil War to the Present: A Thematic History". 2012.



Stelter, Brian. "Eight Hours a Day Spent on Screens, Study Finds". The New York Times. March 26, 2009. 

Wolf, Richard. "Record Number in Government Anti-Poverty Programs". USA Today. August 30, 2010.  














POST TWO: WORLD WAR TWO 


In the Casablanca scene La Marseillaise, we are shown the stirring images of the German anthem sung in a Moroccan bar which is ultimately defeated by the French anthem sung by patrons. In many ways this scene symbolizes World War II, where German forces gained many victories in the beginning but were ultimately defeated by the Allies.


Black-and-white film screenshot with the title of the film in fancy font. Below it is the text "A Warner Bros. – First National Picture". In the background is a crowded nightclub filled with many people. 
Casablanca Opening Sequence, copyright Warner Brothers 1942

The smarting of the aftermath of World War I and the Treaty of Versailles kickstarted Germany's economy and not only because of their required payment of enormous debts to France and other European countries. As World War I had shown, military spending affected all factors of the economy and was a smart area to invest in if one wanted to see profits. According to Helfrich, "by 1939 two-thirds of German industrial development was in war related industries while one-quarter of Germany’s workforces was engaged in war industry work. By 1939, 23% of German national product was military spending". The Japanese economy was also booming, in part due to its skirmishes with China. 

Economies in other parts of the world were struggling, however. The 1929 economic crash in the United States had not disappeared by the 1930s, and for this reason Roosevelt wanted to stay out of the war mongering in Europe. Both Democratic and Republican parties of the United States urged isolationism. In the biography of Kurt Vonnegut, who would later be a POW during the Dresden bombing, many people found it difficult to be anything other than isolationist when beggars would move from house to house because of the economic crash (Shields). As Helfrich states, "in the early years of his administration FDR stayed away from foreign policy if for no other reason than not to alienate the isolationist wing of the Democratic Party". 

Isolationism wouldn't have been as popular as it was (it was practiced among the liberal upper classes, women's groups, clergy and government groups) if it hadn't been for the pervasive quality of World War I. In 1918, America's population was around 100 million and 4,734,991 men had served in World War I (Stone). With almost five percent of the total population involved in a war, and the rest of the country faced with propaganda, war efforts, relief efforts and veterans programs the imprint of war wasn't going away. This  helped fuel the isolationist movement, and the government was in accordance: "between 1935 and 1937 Congress passed a series of Neutrality Acts by significant margins" (Helfrich). 

This isolationist attitude didn't go away when an American gunboat was attacked by Japanese forces in 1937. Unfortunately, more was to come when Pearl Harbor was bombed in December of 1941. Within 24 hours of the bombing, the United States had entered World War Two and things wouldn't be quite the same.

 
Pearl Harbor December 7 1941. US NAVY Archives <http://www.history.navy.mil/photos/images/g10000/g19930.jpg>. 

Propaganda against America's enemies was on full blast yet again. The Superman animation short "Japoteurs" from 1942, can today be easily construed as racist. The way the Japanese character looks, talks and acts is extremely derogatory and unfortunately this attitude was extended to Japanese-Americans. Over 110,000 Japanese-Americans were entered into internment camps on the American West Coast after Pearl Harbor (Truman Library). It was revealed in 2007 that the US Census was responsible for distributing confidential information on Japanese families' locations so that internment could be easier for American forces to enforce (Minkel). In 1988, President Reagan issued a formal apology to the Japanese-Americans and their relatives for the governmental actions passed against them by Franklin D. Roosevelt in 1941. Ultimately, $1.6 billion was distributed among the Japanese-Americans and their heirs in reparations.

Propaganda took a dangerous turn during World War II. Free speech was being regularly curtailed. As Helfrich writes, "the Alien Registration or Smith Act of 1940 made it illegal for anyone in the United States to advocate, abet, or teach the desirability of overthrowing the government". It suddenly became very dangerous to be anything but a red blooded American. Propaganda posters with slogans like "Loose Lips Sink Ships" were ubiquitous. The Superman cartoon, "Secret Agent" gives light to some of these new fears of spies in the United States. The infamous Duquesne Spy Ring gathered information by members working in restaurants and gaining information from customers, working as messengers, and working in various government positions to gain information about military vehicles (Office of Naval Intelligence). This quality of spies to pass as "regular people" made them all the more dangerous to the American public, and instilled a sense of paranoia that I don't believe we have shaken off since. 

Duquesne himself was able to sneak into a DuPont plant and take photographs of a new type of bomb. Not only were German spy rings in the United States, many operated from South American countries including Brazil and Mexico. These countries allowed for relative safe havens for Nazis after the war, with their German populations. German spy rings gathered information about economics and social movements in the United States, in addition to military information. As the Office of Naval Intelligence's declassified report states, "we can never be sure that we have the whole answer about how much the Germans did know". 


 
US War Office 1943

Racism was not a new subject before World War II, but the war brought it to new levels with anti-Semitism in Germany, and hatred against Japanese-Americans and German-Americans in America. The Final Solution impacted the world in a way not seen before with the extermination of millions of minorities. 

America after the war saw unprecedented growth. The popularity of the military Jeep ushered in a new age of automobiles. A baby boom occurred during the era: "the birth rate soared to twice that of the 1930s" (Helfrich). With 16.1 million men involved in World War II, the impact on America's culture was immense. The war industry aided pharmaceutical developments with the life expectancy rising and child mortality falling. The war helped raise the American economy out of its slump, with textile and metal industries pushed to the limit for the war. Thirty-seven notable companies were formed in 1942, including Archie Comics, the American Signal Corporation, Bendix Helicopters, Caltex (an oil company), Graco Baby Products, Polymer Corporation, Vale (a mining company), and Oxford Industries clothing (Walker). By 1945, there were eighty-eight new notable companies fueled by the war. 

This demand for workers pushed women into a new era, and feminism would soon become a relevant topic in America's society. 

 
US Employment Service Poster 1943 

World War II has come to be a defining moment in our nation's history. It was the event which, afterwards, saw us as a global power. Isolationism became a thing of the past. Foreign policy and the reshaping of Europe and Asia (and Africa) after WWII would set the stage for American events in decades to come. 






Works Cited

Casablanca. Warner Brothers Studios. 1942. Film. 

"German Espionage and Sabotage Against the United States" O.N.I. Review [Office of Naval Intelligence] 1, no.3 (Jan. 1946): 33-38. [declassified, formerly "confidential"]. 

Helfrich, Ron. "US History Civil War to the Present: A Thematic History". 2012.

"Japoteurs". Paramount Pictures. 1942.  

Minkel, J.R. "Confirmed: The US Census Bureau Gave Up Names of Japanese-Americans in WWII". Scientific American. March 30, 2007.  

"Secret Agent". Paramount Pictures. 1942. 


Shields, Charles. And So It Goes. New York: Henry Holt & Company, 2011. 

Stone, Andrea. "One of the Last: WWI Vet Recalls Great War". USA Today. March 29, 2007. 

"The War Relocation Authority and The Incarceration of Japanese Americans During World War II: 1948 Chronology". The Truman Library. September 11, 2006.  

Walker, John. History of the US Economy Since World War II. New York: Sharpe, 1996. 








POST THREE: THE COLD WAR

With the civil defense film "Duck and Cover", American school children were encouraged to identify places to hide safely in the event of nuclear war. The civil defense branch of the United States distributed the film in 1952. The film states that nuclear war could happen at any time and so it was important for school children to be prepared.

This attitude, that nuclear war could happen at any time, was prevalent across the Cold War era and enforced paranoia at every area of life. Basic survival tactics for nuclear war are shown in the live footage portion of the clip. According to the Library of Congress, the "Duck and Cover" film was seen by millions of schoolchildren by the 1950s. These types of clips allowed young children, and perhaps their families, a safe state of mind. This is an important quality to establish in young children, but it did not prevent widespread paranoia and skepticism from spreading across the United States. 

The Soviet Union detonated its first atomic device in 1949, up until then the Americans had been leading the world in nuclear knowledge after the bombings in Japan which ended the second world war. The fear of the growing power of the USSR inspired the building of fallout shelters and paranoia throughout. 

According to the Harvard Film Archive, "messages American citizens received in the postwar era extolled the virtues of a good clean life as an antidote to the perils of atomic destruction". This message is clear in the 1951 "House in the Middle" clip distributed by the National Paint, Varnish and Lacquer Association where clean, freshly white painted houses survive bomb attacks better than dirty houses. The good clean house can be seen to represent the lifestyle of those who would survive a bomb attack. The adherence of Americans to simple rules--despite their efficacy--undoubtedly assured them of some sort of security when foreign relations were extremely tense.

 
Soviet Nuclear Weapons Program 1949


Due to Germany's role in the World War II, they were reduced to a margin of their power after the war had ended. The USSR surrounded Berlin in 1948 and Americans enforced an airlift, resulting in "two German states, the Federal Republic of Germany (FRG) in the areas governed after the war by the US, Britain, and France, and the German Democratic Republic (GDR), which was created out of the Soviet sector in 1949" (Helfrich). Because of this action by the USSR, many European countries began to fear its increasing power.  In order to combat the colossal USSR, NATO (North Atlantic Treaty Organization) was established and the United States was its most prevalent, wealthiest member. The isolationist foreign policy position of FDR had been totally forgotten. International policy became dictated by fronting, with nuclear arsenal pile-up and heavily veiled threats but no actual action. 

In a power move characteristic of the Cold War, the USSR fought back passive aggressively by signing the Warsaw Pact with various Eastern European countries. It soon became a race for allies with the US eventually losing China as an Asian ally to Mao's communists. Since that time, Sino-US relations have became increasingly strained as China has gained in economic power. Cooperation on trade and climate change has not been easy, as China's natural resources have disappeared at an alarming rate to keep up with their population mobility (Spillius). If China wasn't a Communist country, and hadn't developed the way it did, relations might be different. The Cold War is thus still affecting diplomatic relations today. 

 
BJ Murphy 2010 The Christian Science Monitor 

The fact that the Soviet Union shared a border with many of the countries America was courting certainly had an impact. The USSR shares borders with Iran, China, Afghanistan, Pakistan, Azerbaijan, and India. There is also proximity to North Korea and Japan. The countries that bordered the USSR were more prone to pro-USSR forces due simply to proximity. Russian culture has permeated many of these countries for decades. For example, I know from personal experience that Iranians in northern Iran deal with Russia's environmental policies in the Black Sea. When Russia decided to build a dam, it ended up failing catastrophically and Iranian shoreline moved back several miles as a result. Russian Orthodox churches look very similar to Iranian domed mosques. There are stories about Russians raiding palaces in northern Iran, and taking every bit of porcelain to make tea but leaving the expensive silk carpets where they are. The Russian-Iranian relationship might not be the rosiest, but it is certainly more familiar and comfortable than the Iranian-American relationship. 


Another example of this is the communist movement in India. Communist forces in India had been gaining momentum since its conception in 1925, but developed a "Programme for Democratic Revolution" in 1948 with monetary help from Russia (Windmiller). According to 2004 Indian Election results, communist parties in India still populate its Parliament. The Communist Party of India is the largest with 43 seats, followed by the Revolutionary Socialist Party and the All India Forward Bloc. 

 
Soviet Union 1987 Borders with East and South Asia 


The comic book miniseries Superman: Red Son by Mark Millar is critically acclaimed, and an imaginative way to view opinions on either side of the iron curtain. In his book, Superman is born in the Ukraine instead of Kansas due to a few hours difference in the launch of his spaceship. Superman grows up in the USSR, a champion for "the common worker who fights a never-ending battle for Stalin, socialism and the international expansion of the Warsaw Pact". Superman's nemesis, Lex Luthor, is a CIA agent/scientist trying to bring Superman down. The switching of roles is surprising, and interesting. Superman writes for Pravda and sees old flames, meets Wonder Woman and turns down control of the Communist Party after Stalin dies. This adherence to the "everyman" is something Millar does to show that Superman is not a "super-man" in his entirety...he is still a people's person, someone of the people that does not take leadership lightly. It's an interesting question, whether or not Superman could exist in this capacity in Russia, which valued equality and adherence to rules at the time. Millar weaves a tale where Superman was quickly recognized for his abilities and used as a state weapon, because an exceptionally gifted individual, with individualistic traits, would not have been highly admired in the socialist USSR. Or so I think. 

Despite the Cold War ending in 1989 with the fall of the Iron Curtain represented in the Berlin Wall, remnants of this era still resonate today. Afghanistan contains military technology remnants from the Soviets' invasion which hindered American efforts during our war there. Paranoia of other world powers (today, China may fill that spot) remains prevalent in our society and media culture. The Cold War has ended, but it still has many lessons to be learned. 









Works Cited 

"Duck and Cover". United States Civil Defense Branch. 1952. Film. 

Helfrich, Ron. "US History Civil War to the Present: A Thematic History". 2012. 

"House in the Middle". National Paint, Varnish and Lacquer Association. 1951. Film. 


Millar, Mark. Superman: Red Son. DC Comics: 2003. 

Spillius, Alex. "Analysis: The Worsening Relationship Between America and China". The Telegraph. February 1, 2010. 

"Topics in Film: Cold War Paranoia". Harvard Film Archive. 2012. <http://hcl.harvard.edu/hfa/films/2003mayjun/coldwar.html>. 


Windmiller, Mashall. Communism in India. University of California Press: 1964.