A Floyd Olson Tale
A Floyd Olson Tale
Floyd Olson was elected in the Election of 1928 in the Democratic Party, beating out Norman Thomas of the Progressive Party and Herbert Hoover of the Republican Party. (Hoover was a joke candidate since almost everyone lost faith in the Republicans due to Coolidge’s mishandling of the Economic Calamity). Olson attempted to sort his way out of the Economic Calamity by taking a bank holiday similar to the one Tirpitz had proposed in Germany. Once again, the banks were closed until federal investigations proved they were solvent and allowed to open again. The US Bank system was also streamlined to make banks more efficient. The inefficiency of US Banks prior to the Economic Calamity led to financial waste that hindered the US economy.
By the end of 1929, other major reforms had occurred in the U.S. The Civil Works Organization (CWO) was designed to produce construction jobs to rebuild parts of the country that needed rebuilding, especially the former South, which was still reeling from the “Dreadful War”. The Tennessee Valley area, already horridly damaged by some of the most intense battles of the “Dreadful War”, and further by the Economic Calamity, was a major recipient of this organization. Since most of the power supply in the area was destroyed, electric power needed to be brought back to the region. As a result, several dams and hydropower projects were constructed to perform this task. No longer would this area and much of the US South be considered a backwards area. While the Civil Works Organization had largely passed its prime by 1932, it would later be folded into the Public Works Agency.
Housing, especially its cost, became a huge problem in the Economic Calamity. The problem with housing at that time was that it was out of reach for many people especially due to the high unemployment and collapse in wages. Many people lost their houses due to banks recalling loans during the banking crisis. The Federal Housing Administration was designed in 1931 to deal with this housing crisis, and regulated mortgages and the housing industry.
Olson believed that the Economic Calamity was so dangerous that the nations of the world had to stand together to recover from it. Due to this “internationalist” viewpoint, he removed a protectionist trade policy used by Coolidge since Olson thought it made the Calamity worse. Historians vindicated Olson’s perspective on the protectionist “Defense of American Industry Act” that Congress soon repealed. The tariffs on foreign products were reduced in an effort to improve trade. Olson also had an idea of an international fellowship of countries, for all nations to help each other out of the Economic Calamity. These and other reforms would be a part of Olson's Fair Deal (more to come later).
An organization called the International Congress was created, with most countries joining up; all the major powers but Russia. Britain and France would be kicked out later, for reasons that would later be seen. This organization did increase international trade, but many countries just had too little to trade and as a result, had limited effects. In terms of reducing wars, the International Congress had tried again, and it did not work well. The main reason why there were fewer wars in the 1920s and early 1930s was because most countries were in no state to actually fight a war, not because of the International Congress. The later failures of the International Congress in terms of the rise of “Legion” governments and their expansion will be detailed in a later entry.
Floyd Olson was elected in the Election of 1928 in the Democratic Party, beating out Norman Thomas of the Progressive Party and Herbert Hoover of the Republican Party. (Hoover was a joke candidate since almost everyone lost faith in the Republicans due to Coolidge’s mishandling of the Economic Calamity). Olson attempted to sort his way out of the Economic Calamity by taking a bank holiday similar to the one Tirpitz had proposed in Germany. Once again, the banks were closed until federal investigations proved they were solvent and allowed to open again. The US Bank system was also streamlined to make banks more efficient. The inefficiency of US Banks prior to the Economic Calamity led to financial waste that hindered the US economy.
By the end of 1929, other major reforms had occurred in the U.S. The Civil Works Organization (CWO) was designed to produce construction jobs to rebuild parts of the country that needed rebuilding, especially the former South, which was still reeling from the “Dreadful War”. The Tennessee Valley area, already horridly damaged by some of the most intense battles of the “Dreadful War”, and further by the Economic Calamity, was a major recipient of this organization. Since most of the power supply in the area was destroyed, electric power needed to be brought back to the region. As a result, several dams and hydropower projects were constructed to perform this task. No longer would this area and much of the US South be considered a backwards area. While the Civil Works Organization had largely passed its prime by 1932, it would later be folded into the Public Works Agency.
Housing, especially its cost, became a huge problem in the Economic Calamity. The problem with housing at that time was that it was out of reach for many people especially due to the high unemployment and collapse in wages. Many people lost their houses due to banks recalling loans during the banking crisis. The Federal Housing Administration was designed in 1931 to deal with this housing crisis, and regulated mortgages and the housing industry.
Olson believed that the Economic Calamity was so dangerous that the nations of the world had to stand together to recover from it. Due to this “internationalist” viewpoint, he removed a protectionist trade policy used by Coolidge since Olson thought it made the Calamity worse. Historians vindicated Olson’s perspective on the protectionist “Defense of American Industry Act” that Congress soon repealed. The tariffs on foreign products were reduced in an effort to improve trade. Olson also had an idea of an international fellowship of countries, for all nations to help each other out of the Economic Calamity. These and other reforms would be a part of Olson's Fair Deal (more to come later).
An organization called the International Congress was created, with most countries joining up; all the major powers but Russia. Britain and France would be kicked out later, for reasons that would later be seen. This organization did increase international trade, but many countries just had too little to trade and as a result, had limited effects. In terms of reducing wars, the International Congress had tried again, and it did not work well. The main reason why there were fewer wars in the 1920s and early 1930s was because most countries were in no state to actually fight a war, not because of the International Congress. The later failures of the International Congress in terms of the rise of “Legion” governments and their expansion will be detailed in a later entry.