Ideological Responses to the Economic Crisis
Members of the Bonus Army continued to pour into Washington for weeks. By early summer, more than 12,000 had arrived. The scraggly veterans, many with families, gave a human face to the nation’s hard times. Many Americans wondered how the government would respond—not only to the frustrated veterans, but also to the economic crisis they represented.
Politicians and other public figures proposed various ways to deal with the country’s economic problems. People’s ideologies shaped their suggestions. An ideology is a set of basic ideas, beliefs, and values that form the basis of a social, economic, or political
philosophy or program. While running for president in 1932, Franklin Roosevelt used a metaphor to explain three ideological responses to the Depression. “Say that civilization is a tree which, as it grows, continually produces rot and dead wood,” he began. “The radical says: ‘Cut it down.’ The conservative says: ‘Don’t touch it.’ The liberal compromises: ‘Let’s prune, so that we lose neither the old trunk nor the new branches.’”
The Conservative Response: Let the Economy Stabilize
A conservative is someone who cherishes and seeks to preserve traditional customs and values. For conservatives in the 1930s, these values included self-reliance, individual responsibility, and personal liberty. Conservatives tend to prefer the status quo, or current conditions, to abrupt changes. They accept change, but only in moderation. Depression-era conservatives opposed large governmental efforts to effect change, which they felt challenged their values.
As the Depression worsened, conservatives resisted calls for radical changes to the free enterprise system. Left alone, they argued, the economy would soon stabilize and then begin to improve.
Some economists supported conservatives’ hands-off approach. They insisted that economic downturns and periods of low economic activity—known as panics—were normal. They were part of the business cycle, a pattern in which economic growth is followed by decline, panic, and finally recovery. These lows were natural in a capitalist economy, economists argued. They noted that good times followed even the severe panics of the 1870s and 1890s. The economy would also recover from this severe period.
At the start of the Depression, many Americans shared this outlook. Most preferred to suffer in silence rather than admit they needed help. But as the Depression progressed, people ran short of food and fuel. Many had no choice but to seek aid. Conservatives insisted that charities take on the growing task of providing basic necessities to the needy. If government had to step in, they argued, it should be local governments’ responsibility to care for their own.
The Liberal Response: The Government Must Help
A liberal is someone who is committed to the expansion of liberty. In the 1800s, liberals had focused on protecting individual liberty from the heavy hand of government. They favored limited government that left individuals free to exercise their rights and pursue happiness in their own way. To liberals, the government that governed the least governed the best.
With the rise of big business, liberals’ views began to change. They realized that limited government could offer individuals little protection from dangerous working conditions, price-fixing monopolies, or unsafe food and drugs. By the start of the Progressive Era, many liberals believed that the government should play a role in regulating economic affairs. As the Depression set in, liberals looked to the government to expand its powers
once again to protect individual liberty. However, now they defined liberty as freedom from hunger and poverty.
Liberals proposed several responses to the economic crisis. First, they called for increased spending on public works. These government-funded construction projects provide for such local needs as roads, bridges, and dams. They would, liberals argued, create jobs for the unemployed. Next, liberals suggested placing new taxes on corporations and the wealthy to raise money for social welfare programs. Such programs provide aid to those in need. They effectively redistributed money from the “haves” in a society to the “have-nots.” Finally, liberals called on the government to work closely with businesses to aid in their recovery. In short, they urged the government to take on an active role within the framework of the capitalist system.
The Radical Response: Capitalism Must Go
A radical is someone who wants to make sweeping social, political, or economic changes in a society. Radicals often have little patience for the status quo. They may seek change by democratic means or through revolution.
By the 1930s, both socialists and communists were attracting supporters with their calls for radical change. Communists, for example, proposed doing away with the market economy altogether. They wanted to replace capitalism with communism. Under that system, economic decisions would move out of the marketplace and into the hands of government planners. A totally planned economy would take the place of free markets. Wealth would be distributed to people according to their need.
Radicals viewed events like the Bonus Army protest as opportunities to spread their ideas. They encouraged working-class people to rise up against the “greedy capitalists.” As the Depression wore on, such ideas began to appeal to a growing number of disillusioned Americans.
Members of the Bonus Army continued to pour into Washington for weeks. By early summer, more than 12,000 had arrived. The scraggly veterans, many with families, gave a human face to the nation’s hard times. Many Americans wondered how the government would respond—not only to the frustrated veterans, but also to the economic crisis they represented.
Politicians and other public figures proposed various ways to deal with the country’s economic problems. People’s ideologies shaped their suggestions. An ideology is a set of basic ideas, beliefs, and values that form the basis of a social, economic, or political
philosophy or program. While running for president in 1932, Franklin Roosevelt used a metaphor to explain three ideological responses to the Depression. “Say that civilization is a tree which, as it grows, continually produces rot and dead wood,” he began. “The radical says: ‘Cut it down.’ The conservative says: ‘Don’t touch it.’ The liberal compromises: ‘Let’s prune, so that we lose neither the old trunk nor the new branches.’”
The Conservative Response: Let the Economy Stabilize
A conservative is someone who cherishes and seeks to preserve traditional customs and values. For conservatives in the 1930s, these values included self-reliance, individual responsibility, and personal liberty. Conservatives tend to prefer the status quo, or current conditions, to abrupt changes. They accept change, but only in moderation. Depression-era conservatives opposed large governmental efforts to effect change, which they felt challenged their values.
As the Depression worsened, conservatives resisted calls for radical changes to the free enterprise system. Left alone, they argued, the economy would soon stabilize and then begin to improve.
Some economists supported conservatives’ hands-off approach. They insisted that economic downturns and periods of low economic activity—known as panics—were normal. They were part of the business cycle, a pattern in which economic growth is followed by decline, panic, and finally recovery. These lows were natural in a capitalist economy, economists argued. They noted that good times followed even the severe panics of the 1870s and 1890s. The economy would also recover from this severe period.
At the start of the Depression, many Americans shared this outlook. Most preferred to suffer in silence rather than admit they needed help. But as the Depression progressed, people ran short of food and fuel. Many had no choice but to seek aid. Conservatives insisted that charities take on the growing task of providing basic necessities to the needy. If government had to step in, they argued, it should be local governments’ responsibility to care for their own.
The Liberal Response: The Government Must Help
A liberal is someone who is committed to the expansion of liberty. In the 1800s, liberals had focused on protecting individual liberty from the heavy hand of government. They favored limited government that left individuals free to exercise their rights and pursue happiness in their own way. To liberals, the government that governed the least governed the best.
With the rise of big business, liberals’ views began to change. They realized that limited government could offer individuals little protection from dangerous working conditions, price-fixing monopolies, or unsafe food and drugs. By the start of the Progressive Era, many liberals believed that the government should play a role in regulating economic affairs. As the Depression set in, liberals looked to the government to expand its powers
once again to protect individual liberty. However, now they defined liberty as freedom from hunger and poverty.
Liberals proposed several responses to the economic crisis. First, they called for increased spending on public works. These government-funded construction projects provide for such local needs as roads, bridges, and dams. They would, liberals argued, create jobs for the unemployed. Next, liberals suggested placing new taxes on corporations and the wealthy to raise money for social welfare programs. Such programs provide aid to those in need. They effectively redistributed money from the “haves” in a society to the “have-nots.” Finally, liberals called on the government to work closely with businesses to aid in their recovery. In short, they urged the government to take on an active role within the framework of the capitalist system.
The Radical Response: Capitalism Must Go
A radical is someone who wants to make sweeping social, political, or economic changes in a society. Radicals often have little patience for the status quo. They may seek change by democratic means or through revolution.
By the 1930s, both socialists and communists were attracting supporters with their calls for radical change. Communists, for example, proposed doing away with the market economy altogether. They wanted to replace capitalism with communism. Under that system, economic decisions would move out of the marketplace and into the hands of government planners. A totally planned economy would take the place of free markets. Wealth would be distributed to people according to their need.
Radicals viewed events like the Bonus Army protest as opportunities to spread their ideas. They encouraged working-class people to rise up against the “greedy capitalists.” As the Depression wore on, such ideas began to appeal to a growing number of disillusioned Americans.