Freedom from Fear

1. The Great Depression Was Rooted in World War I

[T]he primary cause of the Great Depression . . . was the war of 1914–1918.

Versailles Treaty's Flaws. The Treaty of Versailles, with its punitive measures against Germany, created economic instability that reverberated globally. The treaty's flaws included:

• Transferring coal, iron, and steel properties from Germany to France
• Stripping Germany of overseas colonies and foreign investments
• Imposing a colossal $33 billion reparations bill on Germany

Economic Disruption. The treaty perpetuated economic disruptions, leading to hyperinflation in Germany and instability across Europe. This instability set the stage for the global economic crisis that began in 1929.

Global Interdependence. The war's end saw the world's economic fate intertwined, with the U.S. as a major creditor. The war's chaotic end signaled the predicted death of capitalism in the collapsing belligerent countries. The economic hurricane of the 1930s stripped power from Hoover and conferred it on Hitler and Roosevelt.

2. Hoover's Response Reflected Both Progressivism and Limitations

[T]he time when the employer could ride roughshod over his labor is disappearing with the doctrine of 'laissez-faire' on which it is founded.

Progressive Ideals. Hoover, though a Republican, embraced progressive ideals of government management and social responsibility. As secretary of commerce, he supported labor, urged business-government cooperation, and proposed federal public works.

Limited Government Action. Hoover's commitment to limited government action constrained his response to the Depression. He favored voluntary cooperation over coercive bureaucracy, reflecting his belief in American individualism.

Early Initiatives. Hoover convened a special congressional session to address the farm crisis, resulting in the Agricultural Marketing Act of 1929. He also organized conferences with business leaders to maintain wage rates and stimulate construction.

3. The Crash of 1929 Was a Symptom, Not the Disease

[N]o causal relationship between the events of late October 1929 and the Great Depression has ever been shown through the use of empirical evidence.

Initial Optimism. In the immediate aftermath of the stock market crash, many observers, including economists and politicians, believed it was a healthy correction. They anticipated a swift recovery and did not foresee a prolonged economic slump.

Limited Impact. The crash directly affected a relatively small percentage of the population, as only about 2.5% of Americans owned securities in 1928. The average American owned no stock in 1929.

Underlying Weaknesses. The crash exposed underlying weaknesses in the American economy, including agricultural depression, slowing automobile sales, and rising business inventories. These factors contributed to the severity and duration of the Depression.

4. FDR's Early Actions Inspired Confidence Amidst Crisis

The feeling of relief and thankfulness . . . was beyond description.

Preparedness. FDR's actions gave the effect of having thoroughly anticipated the debacle and mapped out the shortest road to recovery.

Aggressive Leadership. Roosevelt took aggressive leadership in guiding private business through a crisis.

Reassurance. Roosevelt's actions were all that could be desired. No one in his place could have done more; very few of his predecessors could have done as much.

5. The New Deal's "Balance" Sought Security Over Revolution

[T]he primary needs were to prevent bank panics such as had marked the earlier slumps, to mitigate the privation among the unemployed and the farmers which would certainly ensue.

Security as Leitmotif. The New Deal's programs aimed to provide security to vulnerable individuals, races, and classes, as well as to capitalists, consumers, bankers, homeowners, workers, and employers.

Government Intervention. Roosevelt believed that government must superintend the economic and social power concentrated in fewer hands. He sought to actively manage social change through informed, limited government action.

Limited Scope. The New Deal did not end the Great Depression or restore prosperity. Its main heritage was the construction of an institutional framework for a more secure society, without resorting to revolution or abandoning the Constitution.

6. The South Remained a Region Apart, Even in Crisis

[T]hey shared "a common resolve indomitably maintained—that it shall be and remain a white man's country."

Rural Poverty. The South was the nation's most rural region, with scarce capital and abundant labor. Southerners planted and picked traditional crops with mules and muscle, just as their ancestors had done for generations.

Racial Segregation. Jim Crow meant blacks could not vote and faced social and economic segregation. Fewer than 5% of eligible African-Americans were registered to vote in the former Confederacy states as late as 1940.

Economic Backwardness. Southern blacks constituted an extreme case of rural poverty in a region that was itself a special case of economic backwardness and isolation from modern life. They were bound as fast to the land by debt, ignorance, and intimidation as they had been by slavery itself.

7. World War II Transformed America's Role in the World

We are now faced with the problem, not of saving Germany or Britain, but of saving ourselves.

Shift in Focus. As the Depression deepened, Hoover's focus shifted from international relief to national economic self-preservation. He argued that the primary cause of the Great Depression was the war of 1914–1918.

Global Interdependence. The global economic crisis of the 1930s demonstrated the economic interdependence of nations. The war's chaotic end signaled the predicted death of capitalism in the collapsing belligerent countries.

Isolationism. Appeals and threats from both sides of the globe seemed only to increase the zeal of American isolationists and the stubborn resistance to intervention.

8. The Home Front Experienced Profound Social Changes

The feeling of relief and thankfulness . . . was beyond description.

Revolutionized Lives. The lives of noncombatants were as much revolutionized as the lives of those in uniform. Women replaced or joined men in the work force; blacks gained jobs and skills; southerners moved north, easterners moved west.

Population Shift. The whole population was profoundly shaken up and the American way of life deeply changed.

Economic Transformation. The war brought unprecedented levels of prosperity, ending the Great Depression and creating new opportunities for many Americans.

9. The Pacific War Was a Brutal Clash of Cultures

[T]he primary cause of the Great Depression," reads the first sentence of his Memoirs, "was the war of 1914–1918.

Savage Warfare. The Pacific War was characterized by gruesome atrocities and brutal fighting, especially in the savage Pacific War.

Racial Animosity. The war was a race war, characterized by racial stereotyping, the demonization of the adversary, hatred, and atrocities—on both sides.

Revolutionized Lives. The lives of noncombatants were as much revolutionized as the lives of those in uniform. Women replaced or joined men in the work force; blacks gained jobs and skills; southerners moved north, easterners moved west.

10. The Atomic Bomb Ushered in a New Era of Moral Complexity

[I]n the next few days I became conscious of my own fate. . . . I resolved to become a politician.

Unprecedented Weapon. The development and use of the atomic bomb raised profound moral questions about the nature of modern warfare.

Devastation. The use of atomic bombs on Hiroshima and Nagasaki caused unprecedented levels of destruction and loss of life.

Legacy. The atomic bomb ushered in a new era of nuclear proliferation and the threat of global annihilation.

Last updated: April 13, 2025