US New Deal & Fascism: Economic Policies & Social Impact
The New Deal
In the United States, Democrat Franklin D. Roosevelt became president in 1933, at the height of the Great Depression. Roosevelt launched a program of state economic intervention known as the New Deal. Between 1933 and 1938, a series of measures were adopted to combat deflation, relaunch the economy, and create jobs.
- A program was launched to clean up the banking system so that banks would offer better guarantees, security deposits, and loans. The restoration of the credit system was enhanced, and the operation of the stock market was regulated to prevent speculation.
- A program of heavy investment in public works was undertaken to boost the economy and create jobs.
- An attempt was made to reduce agricultural production to raise the prices of farm products and to recover farmers’ incomes.
- With regard to industry, large companies were favored by eliminating competition.
- Employers were forced to accept social improvements, such as fixing a minimum wage, limiting the working week to 40 hours, and recognizing the right to freedom of association and collective bargaining.
- Pension and widow’s pensions, disability insurance, and unemployment benefits were established, laying the foundations of the welfare state.
Fascist Ideology
- Fascism advocated the establishment of a totalitarian state that could control all spheres of life.
- It supported a one-party dictatorial political system.
- Radical anti-communism and anti-capitalism.
- It maintained aggressive, expansionist, and militaristic nationalism.
- The fascists were all racist and considered non-whites inferior.
- Irrational behavior was exalted.
- It advocated violence against political opponents.
- The fascist parties sought to mobilize the masses.
- Male principles were also highly exalted.
The Social Bases of Fascism
Fascism recruited its first followers among uprooted social sectors, young activists, romantics, and the urban and rural middle classes. A major sector of the working class also joined. A fundamental pillar for the consolidation of fascism was the support of big business and landowners. Initially, these groups funded fascist organizations to use as shock troops against the socialists and communists. Later, they helped to promote the establishment of a strong executive, able to reorganize and control the economy and stop the labor unrest. The army and police tolerated and even collaborated with the violence.
Key Terms
- Economic Autarky: Economic policy pursued by a country to produce all the resources it needs to supply the domestic market without resorting to imports.
- Totalitarianism: Political system that concentrates all state powers in the hands of one group or party and does not allow the actions of others.
- Squad: Armed militants organized by local fascist leaders, distinguished by their unmistakable black shirt uniform.
- SA: Nazi paramilitary organization, distinguished by their brown uniforms and the bracelet with the swastika symbol.
- SS: Founded in 1925 as Hitler’s personal guard. In 1929, Himmler was appointed its chief. They constituted a privileged caste closely tied by oath to Himmler and Hitler.