Economic Conditions USA: Sweeping Return to Power by the Democrats - Research Paper Example

American Government/History: The Economic Conditions That Led to a Sweeping Return to Power by the Democrats Introduction The period between 1920 and 1940 is very important in the history of the US. The period marked the poorest performance in American economy as a result of The Great Depression. Similarly, the Great Depression happened simultaneously with the world’s severe economic depression especially in the year 1930. Additionally, it was the longest and severest depression that ever hit the world in the 20th century. The depression effected the employment leading to a rise in unemployment rates in the US as well as other parts of the world. Many other sectors in the economy were affected leading to widespread dissatisfaction among Americans. They became totally uncomfortable with the regime and hence a political change was prompted. Various political changes took place that resulted into a sweeping return of the Democrats to power. This period witnessed heated politicking where politicians rejuvenated themselves so as to have landslide victory. In addition, voter realignment took place as the new deal realignment started gaining political momentum. This essay, therefore, seeks to discuss the history of American government by analyzing the economic conditions that led to a sweeping return of Democrats to power. Additionally, the essay will explain why Hoover’s policies failed not keep the Republicans in power, how the procedures of our political system help or hinder the enactment of changes to address the Great Depression. Further, staggered House and Senate elections affect the enactment pace of new policies will be discussed. Economic conditions that led to a sweeping return to power by the Democrats The economic conditions that led to the return to power by the democrats were the US economic recession that took place between 1920 -1940. This was severest in 1930 and the economy almost collapsed. It is important to note that the depression was not just on the economy, but also political and social. Socially, increased crime rate and other social evils were witnessed. In this case, the collapse of the economy that was in the offing threatened to breakdown social and political institutions. The recession resulted into high unemployment rate of 25% in 1930. The GDP drastically reduced as a result of poor performance caused by low labor engagement. Other economic factors remained underutilized and by 1933, the GDP had fallen dramatically, the investment purchases had also dramatically fallen. The fall of these investments purchases were the immediate cause of this depression (Taylor, 1). Further, investors confident deteriorated leading to low level of economic activities. Additionally, the depression resulted in to a near halt in constructions as well as industrial production. By 1929, the industrial average of Dow Jones had fallen close to 23%. As such the market became so volatile. The wages fell for those who were in employment. Repossessions and foreclosures followed the use of credit cards in purchases. Much of the 1920s saw farmers had hit by the same depression. Herbert Hoover, the former secretary of commerce and a republican believed in encouraging a cyclical spending as way to ease the downturn. He additionally, resisted any calls by the senators as well as the governors to finance the public service jobs as a way of solving the unemployment. He believed it was up to the state and the governments to pay such people. In his thoughts he believed that a direct intervention was not necessary (Taylor, 1). Banks and other business failed, people could not afford basic necessities such as rent: houses were closed for defaults of rents. Many people moved to the edge of the cities and settled on makeshift houses referred to as Hoovervilles. Others even foraged in the garbage places for food just support life, (Taylor, 1). . The problems experienced by the American citizens during this depression gave enough reasons for the Democrats to justify their leadership. The presidential campaign from 1932 was against the depression backdrop. Popular slogans like “the forgotten man at the economic pyramid bottom” were used by Franklin Roosevelt to seek nominations in the Democrats party (Taylor, 1). Therefore, he declared that the only fear he would fear was the fear itself and won by a landslide. From this win the new deal for the American people was then born to steer the return of the democrats in power. Why Hoover’s policies did not keep the Republicans in power Hoover, the commerce secretary in the Republican regime proposed policies that had no influence on the lives of the common people. He was not dedicated to solving the problem of economic recession; rather he proposed bills that would allow the economy to recover skowly without much intervention. Hence, he convinced the government to monitor the economy encouraging countercyclical spending to provide a relief from the downturn (Krueger, 13). Additionally, with a growing population of the jobless in the US, he strongly resisted the calls by governors, senators and even the Mayors to address the unemployment problem through funding the public service jobs. He believed and proposed that if such jobs should be created he would support but instead the local governments were to fund them. His policies did not enable the government to take responsibility for the problems affecting the citizens. However, he proposed that charity organizations and local governments should be the ones to create such jobs and fund them (Krueger, 23 – 27). Another unpopular decision that the Republican made was to subsidize consumption. In this case, Hoover proposed a policy where the government would enable the people to afford basic commodities. Tax was used to help manufacturers sell commodities at a cheaper cost. By so doing, consumption was subsidized instead of production that would have increased the job opportunities. These policies could not work given the dire situation the Americans were in during the greatest economic recession period. The lives of the Americans were in dire need for response since some of the citizens were hard hit to a level they would search food from the garbage cans. Other people lived in makeshift house yet the government of the day would adopt policies that do not show any commitment to alleviate their condition. These policies would not be reassuring to the person who was suffering. As compared to what Roosevelt did when he took power in the first the hundred days it was evident the people needed some change (Krueger, 31). The policies did not bring reforms that would result in the recovery of the banking sector, the stock market; private bank deposits were not insured and industrial as well as see agricultural productions were not stable. The home mortgages on the other hand were not protected and the people in the down rural south would not have electricity power. The federal reliefs were discouraged by his policies leaving millions of citizens to suffer especially considering that some people had to search food in the garbage cans. The procedures of our political system: effect on the enactment of changes to address the Great Depression a) Dance Legislation Dance legislation is a connotation that is used to describe the process of consensus building that takes place in the Congress. When the House is formed into a committee, a heated debate emanates that proceeds voting for a particular bill. In this case, politicians engage in consensus building where they bargain for support from their peers. Additionally, heated political campaigns coupled with exchange of political sentiments usually surround a controversial bill. In this case of American history, the Democrats needed to pass a large number of bills that would reverse the adverse effects of the Great Depression. The political system, however, had an effect on the enactment of the changes that were directed towards addressing the depression. Roosevelt experienced some frustrations that would make it difficult to achieve his objectives. Some of them included the Supreme Court frustration that overturned the key pieces of legislations that he would propose to the senate to pass. Additionally, the congress too presented some frustrations towards Roosevelt’s attempts to have his way on the legislation that would help achieve his development programs. The congress in 1937 rejected Roosevelt’s proposals and turned against further New deal measures that he would put in place (Taylor, 1). Political and legislative dancing was experienced prior to the passing of important bills. Notably, some of the bills required a two-third majority in the House and hence massive consensus building took place as the democrats were pushing the bills through the House. In this case, the Republicans deliberately frustrated their Democrat counterparts by voting against important bills. The only bills that had easy time sailing through were those that escalated the depression. Some of his legislations that promoted the Americans new deal like the creation of the old-age pensions succeeded and took effect. The frustrations prolonged the depression in the US and the World War II presented another opportunity in disguise to get off the depression. In the meantime Roosevelt was preparing for a third term. The World War II brought America’s factories in to action and thus all the workers were absorbed in to the industrial labor force. Moreover, more youths were trained to be recruited in to war resulting in to reduction of unemployment (Taylor, 1). This policy was Roosevelt’s and through support of the congress that made the draft be in effect in 1940 it served to reduced unemployment. b) Presidential powers Presidential powers contributed to achievement of some of the depression recovery programs. Roosevelt through the presidential powers offered to the congress a series of emergency legislative measures that would come to characterize the New deal for the people of America. These were part of the legislative tally of the first one hundred days in office. As a result, the banking and stock market were recovered. The home mortgages were protected and private bank deposits were able to be insured. Further through the presidential powers Hoover was able to stabilize agricultural and industrial production. It was this emergency measures that laid the foundation for economic recovery of the US from the severe depression. c) The effect party control has on legislation Party control indeed has an effect on legislation. For example, in the spring of 1928, there was formed the Texas Constitutional democrats by the dry progressive democrats who had the sole intention of gaining the control of the machinery of the state party. They also intended to work for a presidential ticket that would reflect their views. When Hoover’s recovery efforts were facing frustrations, the bitter feud between the factions of the party worsened the situation and therefore the need to organize the party and develop a common goal was felt. Due to lack of party control, the democrats suffered a lot of legislation challenges. This was to be addressed when the need to unite and have a common goal was realized. Works Cited Taylor, Nick. The Great Depression: A Short History of the Great Depression. 12 My 2015 http://topics.nytimes.com/top/reference/timestopics/subjects/g/great_depression_1930s/index.html Krueger, Anne O. "Peddling Protectionism: Smoot–Hawley and the Great Depression by Douglas A. Irwin Princeton, NJ and Oxford: Princeton University Press, 2011Trade Policy Disaster: Lessons from the 1930s by Douglas A. Irwin Cambridge, MA and London: The MIT Press, 2012." World Trade Review 11.02 (2012): 340-342. Read More