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U.S. History 1877-Present 8.6: FDR and the First Hundred Days 27 Views


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Description:

What if we told you that you could retire for free as long as you agreed to stop working and spend a bunch of money? Unfortunately for the 60+ crowd, that plan is little too good to be true.

Language:
English Language

Transcript

00:03

Looking back on history, we know that the Great Depression never [Old silent film type title]

00:06

caused a massive political revolution. The grubby masses never rose up in one

00:12

great hoard and destroyed the long-established system of democratic

00:16

capitalism that had seemingly failed them. Well, why not? Maybe they were too [Horde of people charging at capitalism sign fade away]

00:20

hungry, or maybe they still had some faith that capitalism could make a

00:25

comeback. Well, the only major long-lasting set of reforms that took

00:29

root during the Depression was FDR's New Deal. Yep, it permanently enlarged the

00:34

role of the federal government and reigned in the wild and woolly free [Federal government emblem grows bigger and drags capitalism sign in with a rope]

00:37

market for half a century. But the New Deal was mild compared to some of the

00:41

other reform ideas that sprouted during the Great Depression. Like how about

00:45

communism? Yeah, the made-in-America kind. Yep, some Americans saw the crash of 1929

00:50

as definite proof that Karl Marx was right. According to the granddaddy of

00:55

communism, capitalism contained within it the seeds of its own destruction, and

00:59

when capitalism took a belly flop, it sure looked like Karl was right. It also [Karl Marx standing over capitalism]

01:03

looked pretty painful. Maybe stick to cannonballs next time there, pal. Of

01:07

course, Marx's next prediction was that the proletariat, or the working class,

01:12

would bravely rise up in rebellion, but that never happened in America. Some say this [Clenched fist rises in front of USA flag then falls back down]

01:18

was because American communists were actually too extreme in their beliefs

01:21

and refused to be buddies with other leftist movements. Come on, there,

01:25

communists, why can't you play nice? One leftist leader who caught flak from the

01:29

communists was none other than staunch socialist Upton Sinclair. Yeah, he's that

01:34

guy, who had inadvertently caused radical upgrades in the meatpacking industry [Finger points to Upton Sinclair]

01:38

with his gross-out novel, The Jungle. He attempted even more radical political

01:44

change during the Depression. How did Upton do it? Well, Sinclair ran for

01:47

governor of California and actually managed to win the Democratic primary.

01:51

Upton said the New Deal wasn't doing any real good and he built up steam by

01:56

founding EPIC, or "End Poverty In California," not to be confused with "Every [Upton Sinclair standing at a podium]

02:02

Poodle Is Cool," which gains no steam at all. The idea was that the unemployed

02:07

would be put to work in state-run factories and farms. The jobless would

02:11

grow their own food or produce their own clothing and other goods. Any

02:15

surplus could be traded through a system of barter, only for other goods produced

02:19

within the system. To plenty of struggling Californians, this incredibly

02:22

radical and idealistic idea sounded pretty sweet, and after an onslaught of [Sinclair supporter smiling with thumbs up]

02:27

attacks from both the left and the right, Sinclair lost the election by about

02:33

260,000 votes. That might sound like a lot, but this might be the closest

02:37

America ever came to something approaching a Marxist revolution, and it

02:41

did so through the democratic process. Minds blown. Another radical scheme that [Marx's head explodes]

02:46

swept the nation was a thing called the Townsend Plan. It got old people going

02:50

like a double dose of Metamucil. It all started with Francis Townsend, a 66 year-

02:55

old retired country doctor from California. Dr. Townsend figured

02:59

the two fundamental problems underlying the Depression were too little consumer

03:03

spending on the one hand and too many workers seeking too few jobs on the other [Francis Townsend addressing problems]

03:08

So the doc said that all we had to do was hike up the national sales tax to

03:13

fund a two hundred dollar a month monthly pension for all Americans over

03:17

age 60 who pledged not to work, and to spend the full amount within the month.

03:23

Well, this way, the elderly would clear the way for young people to have the

03:26

jobs, and all the mandatory spending would give the economy a kick in the

03:29

butt. Well, even though Johnson's plan might kind of sound sort of feasible, it

03:34

had, well, at least one teensy-weensy problem: it would have absorbed half the national

03:39

income. In other words, it would have taken a sucky situation and made it way

03:43

worse. Sorry, old people. Didn't mean to get you excited there. Anyway, even though [Unhappy looking elderly person]

03:47

Townsend gained millions of followers, who also never took economics in high school,

03:52

his plan eventually tanked. In the end, the wind was taken out of Townsend's sails by

03:57

FDR's social security legislation, which passed in 1935 and hooked the elderly up

04:02

with federal pensions. Even though social security benefits initially were only

04:07

about one-tenth of those called for by Dr. Townsend, they were enough to dull

04:11

the doc's momentum. Still, we gotta hand it to Townsend. What he was calling for may [Elderly person holding up check]

04:15

have sounded crazy, but chances are social security might not exist if FDR

04:20

hadn't felt the need to head the doc off at the pass. And yeah, we just used an

04:25

old-school western term so that old people would know what

04:28

we're talking about there. Though, maybe we should have said it a bit louder... [Confused elderly person at a computer]

04:32

Metamucil!

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