American domestic politics from 1920 to 1945 were marked by shifting ideologies, economic crises, and major governmental transformations under successive presidential administrations.
Republican Conservatism under Harding and Coolidge
Ideological Foundations
The Republican presidencies of Warren G. Harding (1921–1923) and Calvin Coolidge (1923–1929) exemplified the dominant conservative ideology of the 1920s. Their approach was shaped by laissez-faire economics, a reaction against wartime state intervention and Progressive Era reforms.
Policies and Governance
Laissez-Faire Economics: Both Harding and Coolidge advocated minimal government interference in the economy. They believed that the market would regulate itself and that government involvement would hinder economic growth.
Low Taxes: Tax cuts were central to Republican economic policy. The Revenue Acts of 1921, 1924, and 1926 significantly lowered income tax rates, especially for the wealthy. These policies reflected “trickle-down” economics, assuming that benefits for the rich would eventually benefit the wider economy.
Limited Federal Intervention: Federal agencies under these administrations were weakened or led by business-friendly figures. Regulation was minimised:
The Federal Trade Commission (FTC) was weakened.
The Interstate Commerce Commission (ICC) took a hands-off approach to industry.
Pro-Business Environment: The government promoted private enterprise, limited trade union influence, and refrained from antitrust enforcement. Coolidge’s famous phrase, “The business of America is business,” epitomised this philosophy.
Herbert Hoover’s Presidency and the Great Depression
Hoover’s Initial Approach
Herbert Hoover, elected in 1928, brought experience as Secretary of Commerce and was seen as a progressive Republican. However, his response to the Wall Street Crash of 1929 and the subsequent Great Depression exposed the limits of his ideology.
Voluntarism and Its Shortcomings
Hoover favoured voluntarism: the idea that businesses and individuals should act in the public interest without government mandates.
He encouraged:
Businesses to maintain wages and employment.
Local governments and charities to assist the poor.
However, this approach proved insufficient against the scale of economic collapse and mass unemployment.
Reconstruction Finance Corporation (RFC)
Established in 1932, the RFC provided emergency loans to banks, railroads, and large businesses.
Intended to stabilise key sectors, it was criticised as a “bailout for the rich”, especially as it failed to directly assist ordinary Americans.
The Bonus March (1932)
In summer 1932, WWI veterans marched on Washington demanding early payment of a promised bonus.
Hoover ordered the army, under General Douglas MacArthur, to forcibly remove protestors.
Images of soldiers attacking veterans with tear gas and bayonets horrified the public and damaged Hoover’s popularity.
Limitations of Hoover’s Leadership
Hoover remained ideologically committed to limited federal power.
His failure to provide direct relief to individuals contributed to his growing unpopularity.
The perception of Hoover as detached and ineffective paved the way for Roosevelt’s landslide victory in 1932.
Franklin D. Roosevelt’s New Deals
Context and Objectives
Franklin D. Roosevelt entered office in 1933 amid economic catastrophe. He introduced a series of New Deal programmes aiming to provide Relief, Recovery, and Reform.
First New Deal (1933–1934)
The First New Deal focused on emergency relief and financial stabilisation:
Emergency Banking Act (1933): Temporarily closed banks and re-opened them under Treasury supervision, restoring confidence in the banking system.
Federal Emergency Relief Administration (FERA): Gave direct aid to the unemployed.
Civilian Conservation Corps (CCC) and Public Works Administration (PWA): Created jobs through environmental and infrastructure projects.
Agricultural Adjustment Act (AAA): Paid farmers to reduce production, aiming to raise prices.
National Industrial Recovery Act (NIRA): Created the National Recovery Administration (NRA) to stabilise prices and encourage fair labour practices.
Second New Deal (1935–1936)
This phase responded to criticism that the first wave had done too little for long-term reform:
Works Progress Administration (WPA): Employed millions in construction, education, and the arts.
Social Security Act (1935): Introduced unemployment insurance, old-age pensions, and support for the disabled and families.
Wagner Act (1935): Strengthened labour rights, protecting trade union activity and collective bargaining.
Rural Electrification Administration (REA): Expanded electricity to rural communities.
Opposition to the New Deal
Roosevelt’s New Deal faced resistance from multiple quarters:
Conservatives:
Criticised the expansion of federal power and deficit spending.
Business leaders saw New Deal policies as hostile to free enterprise.
Supreme Court:
Struck down key New Deal laws:
Schechter Poultry Corp. v. United States (1935) declared the NIRA unconstitutional.
United States v. Butler (1936) invalidated parts of the AAA.
Radical Critics:
Huey Long, Governor of Louisiana, proposed a “Share Our Wealth” plan, advocating for wealth redistribution.
Francis Townsend proposed an old-age pension scheme more generous than Social Security.
Father Charles Coughlin, a Catholic priest, used radio broadcasts to denounce Roosevelt’s ties to bankers and financiers.
Roosevelt’s Court-Packing Plan (1937)
In response to judicial opposition, Roosevelt proposed adding more justices to the Supreme Court.
The plan was seen as an attempt to undermine judicial independence and failed in Congress, though the Court became more favourable to New Deal policies thereafter.
Transformation of Federal Government
Expansion of Executive Authority
Roosevelt redefined the presidency as a proactive instrument of change.
He used “fireside chats” to speak directly to the American people, enhancing his public persona and popular support.
He assumed broad emergency powers, especially in the early years, pushing through legislation at a remarkable pace.
Growth of Federal Agencies
The New Deal led to the creation of numerous alphabet agencies that entrenched the federal government’s role in daily life:
Securities and Exchange Commission (SEC): Regulated the stock market.
Federal Deposit Insurance Corporation (FDIC): Protected bank deposits.
Social Security Administration (SSA): Managed the new pension and welfare systems.
Tennessee Valley Authority (TVA): Combined economic development with government planning in a multi-state region.
These agencies symbolised the institutionalisation of reform, embedding the New Deal into the fabric of American governance.
Roosevelt’s Leadership Style
Charismatic and strategic, Roosevelt carefully balanced reform with maintaining the support of business and conservative Democrats.
He avoided ideological rigidity, prioritising pragmatic solutions over doctrinaire politics: “It is common sense to take a method and try it. If it fails, admit it frankly and try another.”
FDR was a master of communication, with his radio broadcasts fostering a sense of reassurance during the crisis.
His ability to command loyalty and rally diverse factions enabled the Democratic Party’s dominance through the New Deal coalition.
Legacy and Constitutional Implications
The role of the federal government was fundamentally altered.
The president’s power, especially in economic and social policy, expanded dramatically.
Roosevelt’s tenure (1933–1945) set the precedent for a modern, interventionist state and reshaped expectations of presidential leadership.
FAQ
Calvin Coolidge, who became president following Harding’s death in 1923 and was elected in his own right in 1924, chose not to run again in 1928. He cited personal fatigue and a belief that ten years in the White House (including Harding’s term) was too long for any one person. Behind his calm demeanour, Coolidge was deeply conscious of the limits of executive power and wary of overreach. His departure allowed Herbert Hoover, a technocratic figure associated with progressive efficiency, to secure the Republican nomination. This transition marked a shift from Coolidge’s passive leadership style to Hoover’s more active, but ideologically conflicted, presidency. The party retained its commitment to limited government and pro-business policies, but Hoover’s difficulties during the Depression exposed the weaknesses in this approach. Coolidge’s decision not only shaped the immediate presidential race but indirectly set the stage for the Republicans' diminished public support as economic crisis intensified.
The 1932 election was a political watershed. Franklin D. Roosevelt defeated incumbent Herbert Hoover by a landslide, reflecting public anger at Hoover’s inadequate response to the Great Depression. The election marked the collapse of the Republicans' decade-long dominance and ushered in a new Democratic coalition made up of urban workers, southern whites, African Americans, immigrants, and progressive intellectuals. FDR’s optimistic rhetoric, promises of a "New Deal", and willingness to experiment stood in stark contrast to Hoover’s perceived passivity. The result was not just a change in leadership but a fundamental realignment of political expectations. Voters increasingly demanded that the federal government play a direct role in safeguarding economic security and welfare. The Democrats’ success in 1932 helped establish their dominance in national politics for the next several decades, as they were viewed as the party of reform, social justice, and economic modernisation. The 1932 election reshaped the ideological basis of government and party competition in the US.
Roosevelt’s extensive use of executive orders was a key tool in expanding presidential power. Faced with an economic emergency and a slow-moving Congress, Roosevelt issued executive orders to implement key elements of the New Deal quickly and decisively. For example, Executive Order 6102, issued in 1933, banned the hoarding of gold, effectively centralising monetary policy control. Similarly, orders established agencies like the Civil Works Administration (CWA) and the Works Progress Administration (WPA), often bypassing prolonged legislative debate. While not unconstitutional, this tactic blurred the separation of powers, leading to accusations of authoritarianism. However, Roosevelt defended this method as necessary in crisis and justified by public support. His leadership established a precedent where presidents could drive major policy agendas through executive authority in times of need. Although later presidents would adopt similar approaches, FDR’s use of executive orders redefined the presidency as an active policymaking engine, not just a ceremonial or reactive office.
The New Deal significantly altered the federal-state relationship by enhancing the power and reach of the national government. Traditionally, states had autonomy over welfare, education, and infrastructure, but the economic collapse made many state governments incapable of providing necessary support. New Deal programmes such as the Social Security Act and Public Works Administration (PWA) introduced federal funding for state-run services, effectively tying local governance to Washington. Though some programmes allowed states flexibility in implementation, the overall direction and funding originated from the federal level. This shift led to increased standardisation in welfare provision and public employment. Moreover, federal agencies stationed staff within states to oversee operations, often challenging state authority. While some state officials welcomed the aid, others, particularly in the South, resisted federal oversight, especially where it challenged segregation or local business interests. Nevertheless, the New Deal firmly established Washington as the central driver of domestic policy, creating a more integrated national framework of governance.
Franklin D. Roosevelt came from a privileged background, born into a wealthy and politically connected family in New York. He was a distant cousin of Theodore Roosevelt, and his early political career was shaped by exposure to Progressive Era ideals. Educated at Harvard and Columbia Law School, FDR adopted a sense of patrician duty to serve the public good. His struggle with polio, which left him partially paralysed in 1921, profoundly affected his empathy and resilience. This personal experience of hardship deepened his connection to the suffering of ordinary Americans during the Depression. It also taught him the importance of adaptability and perseverance—traits reflected in his pragmatic, trial-and-error approach to policymaking. Rather than adhering to a rigid ideology, Roosevelt was willing to experiment, revise, and reframe policies to find what worked. His combination of elite confidence and personal hardship helped forge a presidency defined by innovation, public engagement, and moral purpose during national crisis.
Practice Questions
To what extent did Republican policies in the 1920s contribute to the economic problems of the early 1930s?
Republican policies under Harding and Coolidge played a significant role in creating the economic instability that led to the Great Depression. Their laissez-faire approach meant limited regulation of key industries, particularly banking and the stock market, encouraging speculation. Tax cuts for the wealthy contributed to uneven wealth distribution, reducing consumer demand. While these policies supported short-term growth, they neglected structural issues such as rural poverty and industrial overproduction. Although other factors were involved, such as global economic instability, the Republicans’ inaction and ideological commitment to non-intervention laid a fragile economic foundation by the end of the 1920s.
How important was Roosevelt’s leadership style in transforming the role of the federal government between 1933 and 1945?
Roosevelt’s leadership style was crucial in transforming federal government during the New Deal era. His pragmatic, energetic approach enabled rapid legislative responses to crisis, while his effective communication through “fireside chats” built public confidence. Roosevelt’s willingness to expand executive authority allowed him to introduce major reforms and federal agencies that embedded government in economic and social life. Though external pressures like the Depression and WWII necessitated change, it was FDR’s personal leadership—balancing innovation with coalition-building—that redefined presidential power and established the modern welfare state. Without his leadership style, such profound institutional transformation may not have been achieved.
