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New Deal and World War

In the early 1930s, President Franklin Roosevelt proposed a “New Deal” — a plan designed to lift Americans out of the Great Depression as quickly as possible. He noted that democracy had disappeared in other countries at that time — not because the people opposed democracy but because they had grown tired of unemployment and insecurity.

Under his leadership, a federal corporation was established to insure deposits in savings banks. Regulations were imposed on the sale of stocks. Laws were passed to guarantee the right of workers to be represented by unions. Farmers received subsidies for certain crops and assistance in preventing soil erosion. The Civilian Conservation Corps employed young men to plant trees, clean up waterways, and improve facilities in national parks. The Public Works Administration hired skilled laborers for large-scale projects, such as building dams and bridges. The Tennessee Valley Authority provided fl ood control and electric power for that impoverished area. And the Federal Emergency Relief Administration distributed aid, often in the form of direct payments.

A second round of programs employed workers to build roads, airports, and schools; hired artists, actors, musicians, and writers; and gave part-time employment to young people. It also established the Social Security system to help the poor, disabled, and elderly.

The Great Depression caused the United States to retreat further into its post-World War I isolationism. A series of international incidents occurred during the 1930s—the Japanese seizure of northeast China in 1931, the Italian invasion of Ethiopia in 1935, and German expansionism in Central and Eastern Europe—but the United States did not take any major action in response or opposition. When these and other incidents occurred, the United States Government issued statements of disapproval but took limited action beyond that.

On a more positive note, isolationism manifested in Latin America in the form of the Good Neighbor Policy of Presidents Herbert Hoover and Franklin Roosevelt, under which the United States reduced its military presence in the region and improved relations between itself and its neighbors to the south. Presidents Hoover and Roosevelt were to an extent constrained by public opinion, which demanded that primary attention be given to domestic problems. The Hoover and Roosevelt Administrations concentrated upon rebuilding the U.S. economy and dealing with widespread unemployment and social dislocation at home and as a result international affairs took a back seat.

As the United States turned inwards to deal with the lingering effects of the Depression, militaristic regimes came to power in Germany, Italy, and Japan promising economic relief and national expansion. While they achieved some measure of success on the economic front, these regimes began to push their territorial ambitions and received minimal opposition from the rest of the world.

The lack of a strong U.S. response to Japan’s invasion of China in 1937 and Germany’s annexation of Czechoslovakia in 1938 encouraged the Japanese and German governments to enlarge their military campaigns. At the time, most U.S. leaders believed their decision to avoid a more active role was justified because of the domestic context, but some began to realize that U.S. inaction allowed the conflict to grow. After the fall of France in June 1940, the United States increasingly committed itself to the fight against fascism. Ironically, it was World War II, which had arisen in part out of the Great Depression, that finally pulled the United States out of its decade-long economic crisis.

Former Secretary of State Henry Kissinger has written that American foreign policy is defined by its oscillations between crusading idealism and blinkered isolationism. The Great Depression caused the United States Government to pull back from major international involvement during the 1930s, but in the long run it contributed to the emergence of the United States as a world leader thereafter. The perception that the turn inwards had in some part contributed to perpetuating the horrors of World War II caused U.S. foreign policy makers to play a major role in world affairs after the war in order to avert similar disasters.





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