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Hidden History: Roosevelt Opts for Austerity

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The Great Depression – Part 7 Arsenal of Democracy

PBS (1993)

Film Review

For me the most significant segment of this final episode concerns the austerity cuts Roosevelt enacted in 1937, in response to business critics who attacked the burgeoning national debt.

As FDR laid off half the workers employed by the Works Progress Administration (WPA), the effects rippled throughout the economy. The stock market crashed in October 1937, even faster than in 1929. Businesses failed in record numbers and unemployment climbed to 20%. Once again, thousands of unemployed Americans were on the brink of starvation.

The 1937-38 depression is known as the “Roosevelt Depression.”

Part 7 also explores the mass migration of indigent Americans to California, under the misguided belief they would find plentiful food and jobs. Like 20 or so other states, California enacted laws to keep out the unemployed. With the help of local residents groups, police patrolled California’s borders for six weeks in 1938. They turned back all newcomers without $10 on their person.

Many of the state’s new migrants were housed in giant federal camps, as there was nowhere else for them to live.

After Eleanor Roosevelt testified to Congress about her fact finding tour to the camp, FDR introduced (and passed) a $5 billion spending bill.

In September 1939, Britain declared war on Germany following the invasion of Poland. By May 1940, Denmark, Norway, Holland and Belgium had fallen to the Nazis and Hitler was bombing the UK.

A year later, FDR initiated the first peace time draft in US history. Jobless men flocked to enlist because there were still no jobs. Forty percent failed their physicals due to lingering health effects of starvation.

A few weeks before the November 1940 presidential election (which he won), FDR authorized $7 billion in military aid to Britain, opening up thousands of jobs in the defense industry.

Yet it would take another three years – and US entry into the war – before the country returned to full employment.

Hidden History: The Great Depression, Henry Ford and Detroit’s Unemployed Workers Councils

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1929 The Great Depression Part 1 – A Job At Ford’s

PBS (1993)

Film Review

This is Part 1 of a fascinating 7-part PBS series on the Great Depression, one of the many topics Americans never study in school. The series reveals much hidden history unfavorable to the ruling elite – I doubt that PBS would air documentaries this honest in the current political landscape.

This first episode examines the rapid US industrialization of the 1920s, exemplified by the stellar growth of Ford Motor Company.

Henry Ford’s goal in perfecting assembly line manufacturing was to produce Model T’s so cheaply they would cost less than a team of horses. Ford’s River Rouge complex in Detroit was the largest industrial plant in history, employing 50,000 workers and producing 6,000 cars per day. The availability of credit, another new phenomenon, to purchase cars and other durable goods also played a major role in post-World War I expansion.

Squeezing Workers to Cut Costs

By paying the unprecedented wage of $5/hour, Ford attracted workers from all over the US and Mexico. Over time, however, he cut the hourly wage and sped up the assembly line to further reduce costs. He also created an extremely repressive private security force that relied on 9,000 worker/informants to weed out employees who couldn’t keep up or expressed anger and/or frustration with the speed-ups.

Detroit’s Unemployed Workers Councils

Following the Wall Street crash in October, 1929, the US was the only industrialized country without a government safety net (eg unemployment insurances, old age pensions, welfare benefits, etc) for the millions of Americans who lost their jobs. President Hoover believed the solution to the Great Depression was to increase business investment (and production)* and called on charities and local government to provide relief for homeless and starving families.

The city of Detroit provided relief to destitute families for over a year but ran out of money as unemployment climbed from 20 to 50% in 1930. It climbed to 80% in August 1931, when Ford closed his factory and laid off 60,000 workers.

Assisted by Communist Party organizers, Detroit’s unemployed workers formed a dozen unemployed workers councils, which organized marches and rallies demanding jobs, unemployment compensation and protection against evictions.** The councils also organized direct actions to block sheriff’s officers from removing families’ furniture from their home.

In March 1932, 3,000 unemployed workers organized a hunger march on the Ford factory. In addition to using fire hoses to spray them with freezing water, local police and Ford’s private security force shot 25 of them (many in the back). Four, including a New York Times photographer died instantly.

Ford’s Anti-Semitism

This episode also explores Ford’s anti-Semitic writings in the Dearborn Independent and his book The International Jew, as well as the mutual admiration he and Adolph Hitler shared. It fails to mention the considerable direct and indirect assistance Ford provided the Third Reich in rebuilding the German military machine. See Ford and the Fuhrer

*Hoover’s views flew in the face of most economists, who viewed the Great Depression as a crisis in overproduction and under-consumption.

**At the height of the depression, 150 Detroit families were evicted everyday and someone died of starvation every seven hours.

The Basques: Spain’s Other Separatists

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The Basque History of the World

by Mark Kurlansky

Penguin (1999)

Book Review

The Basque History of the World is a history of Basqueland, a semi-autonomous region in the Pyrenees straddling the French-Spanish border. Despite the recent declaration of independence by Catalonia, there is surprisingly little attention on historical efforts by Basqueland, to break away from Spanish rule. Like Catalonia Basqueland, which has its own unique language (Eskuera), has been a major industrial and economic powerhouse for the rest of Spain.

Global Mercenaries, Traders, Shipbuilders, Navigators and Bankers

Historically the Basques were traders and mercenary soldiers dating back to the 4th century BC. The Greeks hired them, as did Carthage in their war against Rome. Although Basque was technically “occupied” by the Roman empire for nearly 400 years, the Romans demanded no tribute (taxes) and exerted no military oversight.

In the 7th and 8th century, the Basques became Europe’s leading shipbuilders (which they learned from the Vikings) and iron mongers (which they learned from the Celts). They were the world’s first commercial whalers, establishing whaling stations as far distant as Newfoundland and Labrador. In the 9th century, they also dominated the European trade in salted cod, fishing off Iceland, Norway, Britain, as well as Newfoundland.

Beginning in the 15th century they were sought after by many European explorers (including Columbus and Magellan) as pilots, navigators and seamen.

They were also the first capitalists, financing their shipbuilding via private venture capital. In 1999, when this book was published, they were still global leaders in banking.

Unconquerable

Neither the Moors (in the 8th century) nor King Ferdinand and Queen Isabella (in the 15th century) succeeded in conquering Basqueland. Owing to the immense wealth the Basques generated, they paid no duty on foreign goods imported through their ports. Until 1876, they paid no tax to Madrid and were exempt from serving in the Spanish military. French Basqueland fared far worse after the French revolutionary government eliminated France’s three Basque provinces in their campaign to erase ethnic identities.

Spain was so poor when the second Spanish Republic was declared in 1931, only Basqueland and Catalonia (thanks to their strong industrial base) enjoyed a European standard of living. Both regions demanded full autonomy as a condition of supporting the Republic.

Following the successful coup of Spain’s fascist dictator Francisco Franco in 1939, the Basques provided the only organized resistance against his regime. They also played an extremely important role in the French resistance to Hitler’s occupation of France.

Role in Downfall of Franco Dictatorship

In 1973, ETA, the Basque armed militia assassinated Franco’s second in command, and Basque and Catalan leaders began meeting secretly to plan Spain’s transition to democracy.

Franco’s death and the fall of his government in 1975 would prove disastrous for the Basque economy. The dictator had been heavily subsidizing archaic Basque factories, which were totally unable to compete with modern European industries after Spain joined the EU.

In 1998, after uniting with Catalonia to win constitutional guarantees of legislative autonomy (for both Catalonia and Basqueland), ETA unilaterally renounced violence. This followed a 16-year battle with the GAL, an undercover police/paramilitary operation that engaged in extrajudicial assassinations and torture against Basque nationalists.

 

 

 

Spain’s 1936 Revolution – an Anarchist View

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Living Utopia: The Anarchists and the Spanish Revolution

Directed by Juan Gamero (1997)

Spanish with English subtitles

 

In this documentary, the history of the 1936 Spanish revolution is told by anarchists* who actually participated in it. What imperialists commonly refer to as the Spanish Civil War, Spanish anarchists refer to as the Spanish revolution. The revolution lasted from 1936-39 before the counterrevolution, led my Franco, Hitler, Mussolini and Stalin (in conjunction with the western powers), overturned it.

The film begins by describing the roots of Spain’s anarchist movement, in Europe’s first workers society, formed in Barcelona in 1840. In 1902, they organized the first free (ie non-Catholic schools) to combat Spain’s high illiteracy rate (50%). In 1910 they formed the CNT (Confederación Nacional del Trabajo) and won an 8-hour day through a series of major strikes. By 1919, the CNT had a membership of 700,000.

Banned in 1923, the CNT organized in secret, until 1931 when the king was deposed. By this point they had one million members. However 90% of them boycotted the 1934 election. This enabled fascists to take control of the government and reverse most of the land and other reforms enacted by the Republic.

CNT Steps Up to Defend Against Franco’s Coup

In 1936, the CNT united with other Spanish leftist groups to elect a National Front government. Under General Franco, the military’s response was to launch a military coup. Failing to organize any  resistance, the government of the Republic crumbled. Thus it was left up to civilians to organize military resistance to prevent the fall of Madrid – as well as to organize basic survival infrastructure in the territory under their control.

The CNT joined with other resistance forces to form the Anti-Fascist Militias Committee. As volunteer militias marched towards the front line, they assisted rural peasants in bringing in the harvest and expropriating barren land from large landowners to put it into cultivation. A total of 7 million peasants voluntarily formed collectives.

Republic Crumbles Leaving Civilians to Re-organize Society

In the cities and villages, working people seized large buildings to provide lodging for the homeless and set up committees to distribute food, clothing and other necessities and put a halt to revenge killings. In Barcelona, the advance guard of the revolution, 80% of factories were seized by workers. Factory owners either fled or joined the worker-run management teams. Participation in the collectivization scheme was totally voluntary.

All production significantly increased during the revolution, as worker-run committees increased production efficiency and adopted new technology. After seizing Ford, GM and other factories, workers converted them into arms factories. Revolutionary councils coordinated the exchange of commodities between regions and exports, via sympathetic contacts, to other European countries. They also enacted decrees guaranteeing equal rights for women and legalizing abortion.

The Counterrevolution

In May 1937, strengthened by Stalin’s support (the Soviet Union was the only country willing to arm the Spanish Republic against Franco’s coup), the Republican leadership declared war against the anarchists who ran Barcelona when they refused to surrender the telephone exchange. After five days and 500 deaths, Barcelona’s anarchists allowed anarchist ministers who had joined the government to persuade them to accept a ceasefire. According to several interviewees, this was their big mistake and ultimately cost them their revolution.

In view of their vast numerical superiority, it would have made more sense to continue guerilla warfare against both the communists who controlled the government and Franco’s forces.

*Most of the interviewees refer to the movement behind the Spanish revolution as “libertarian” communism,” rather than anarchism.

George Seldes: Fighting the Corporate Takeover of the Press

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Tell the Truth and Run: George Seldes and the American Press

Directed by Rick Goldsmith (1996)

Film Review

Tell the Truth and Run is a tribute to muckraking* journalist George Seldes, released shortly after his death at 104. It takes its title from a book Seldes published in 1952. It includes an extensive interview with Seldes at age 98, detailed biographical sketches and commentary by prominent activists, whistleblowers and media reformers (including Ralph Nader, Daniel Ellsberg and Ben Badikian, Victor Navksy and Jeff Cohen) who were influenced by his work.

Born in 1890, Seldes first became a reporter at 18, just as all major dailies were starting to rely on advertisers (instead of readers) for their funding base. As this occurred, investigative journalists seeking to expose government and corporate corruption began writing for the monthly magazines instead. Bankster JP Morgan and other industrial robber barons put an end to this by buying up all the monthly magazines.

Seldes quit his first job at the Pittsburgh Leader after the publisher spiked a story he wrote about the son of a department store magnate who raped a female staff member.

Following an eye opening stint in the US military press corps during World War I, Seldes became a foreign correspondent for the Chicago Tribune. He first ran into difficulty at that paper for exposing the violent and corrupt nature of Mussolini’s fascist regime – at a time when the US government and all the major newspapers were pro-Mussolini (owing to banker JP Morgan’s desire to refinance Italy’s World War I debt).

Seldes quit the Tribune in 1927 and published the first two of a series best selling books (You Can’t Print That and Can These Things Be?) based on all his material the Tribune refused to publish between 1918 and 1928.

Between 1940-1950 he put out the weekly newsletter In Fact: An Antidote to Falsehoods in the Daily Press. He would use the newsletter to expose the FBI role in spying on labor unions and  corporate media’s failure to report on 1940s research documenting health problems associated with smoking. He was also the first investigative journalist to expose the role of major Wall Street corporations in supporting Hitler’s rise to power.

* A term applied to American investigative reporters, novelists and critics of the Progressive Era (1890-1930)

 

The Wall Street Elites Who Financed Hitler

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Oliver Stone’s Untold History of the United States – Prequel B

Directed by Oliver Stone

Film Review

Prequel B starts with the period of social repression that followed the return of GIs from World War I. US leaders were extremely concerned they would spread the oral sex techniques they had learned from French women. Alcohol prohibition, a crackdown on prostitution, rampant antisemitism (even Harvard restricted Jewish admissions) and anti-immigrant sentiment, and the eugenics movement (accompanied by forced sterilization of convicts, the “feeble minded” and promiscuous women) were all typical of this intense repression.

During the same period, Wall Street banks greatly reduced their investment in agriculture and manufacture, preferring the easier profits to be had from cheap credit and speculation. In 1929, a disastrous decision by central banks to increase interest rates triggered a deadly global depression, setting the stage for the rise of fascism in Europe.

Back in the US, Generals MacArthur, Eisenhower and Patton charged 40,000 World War I veterans and their families with infantry and tanks and burned their tents. The latter, calling themselves the Bonus Army, were demanding immediate payment of the bonus they had been promised for serving in World War I.

Stone describes the 1930s as a radical period of social experimentation, in part due to Roosevelt’s sweeping New Deal social reforms (including Social Security, unemployment insurance, agricultural subsidies, aid to dependent children and Federal paid work schemes), and in part due to aggressive industrial unionization and intense interest on the part of American intellectuals in Russia’s experiment with communism. Hundreds of thousands of Americans would join the Communist Party, while numerous prominent writers (including Ernest Hemingway, Langston Hughes, Sinclair Lewis, Richard Wright, Clifford Odets, and Sherwood Anderson) were communist sympathizers.

During the same period, the America’s wealthy elites were more inclined to support Hitler. Key individuals who helped finance the Third Reich include Henry Ford, Prescott Bush, William Randolph Hearst, the Morgan brothers, Allen Dulles (first CIA director) and John Foster Dulles (Secretary of State under Eisenhower). The key US banks involved were Bank of International Settlements, Chase Manhattan, JP Morgan and United Banking Corporation (Brown Brothers Harriman). Specific US companies that provided Hitler with armaments, military vehicles, aircraft, oil and other material support include Kodak, ITT, Dupont, Westinghouse, Standard Oil, Singer, GE, Pratt and Whitney, United Fruit, Singer, Douglas Aircraft and International Harvester.

In 1933, some of these same industrialists would also try to instigate a coup – foiled by General Smedley Butler – to remove Roosevelt from office.

 

Oliver Stone’s Untold History of the US – Parts 1-3

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Untold History of the United States – Parts 1-3

Directed by Oliver Stone (2012)

Last week, I sat down and binge watched Oliver Stone’s 10 part Showtime series Untold History of the United States. I was pleasantly surprised. Stone is strongly influenced by late historian Chalmers Johnson (see The Impermanence of Empire) and mentions him at several points in the series.

Untold History concerns the hidden history of the “American Century” that we’re never taught in school. Unlike Howard Zinn’s People’ History of the United States, it devotes little air time to the popular resistance movements that shaped the period 1932-2012. Instead it focuses mainly on the presidents who governed during this period.

Parts 1-3, which focus on World War II, unpack the lie that Truman dropped two nuclear bombs on Japan to spare hundreds of thousands of GIs who would have died invading the Japanese mainland.

Stone begins with a broad outline of the German military build-up that began in the early 1930s. I think this segment would have been clearer if Stone had discussed the Wall Street fascists who deliberately armed Hitler in the hope he would invade and destroy the Soviet Union. He delays this discussion until part 9, when he introduces Prescott Bush, the pro-Nazi granddaddy of George W Bush.

The first three parts of this series provide a fairly comprehensive history of the Spanish Civil War and of so-called British “appeasement” of Hitler in the early 1930s. I was extremely surprised to learn that Neville Chamberlain wasn’t motivated by cowardice, as we were taught in school, when he agreed to Hitler’s 1938 occupation of Czechoslovakia. He was merely carrying out the wishes of the US-Anglo elite – they were happy to cede Eastern Europe to Germany if it facilitated the destruction of the Soviet Union.

I was also totally unaware that the Soviets were responsible for destroying the bulk of Hitler’s vast military arsenal while the Allies piddled around in peripheral conflicts in North Africa and Italy (at the cost of 27 million lives in contrast to the 500,000 each lost by Britain and the US).

The real reason for Churchill and Roosevelt stalling for two years (Hitler invaded the USSR in 1941) before opening a second front (in Normandy) was their continuing belief that Hitler would defeat the Soviets. Once the Red Army pushed Nazi forces out of the USSR and began retaking Eastern Europe, the allies were forced to act to limit Soviet expansion.

It was actually this two year delay that caused nearly all of Eastern Europe to end up under Communist control – not ruthless Soviet expansionism as we are taught in school.

Stone agrees with historians who attribute the US nuclear attack on Japan to anti-communist hawks in the Truman administration who sought to use it to intimidate the Soviet Union. He maintains that Henry Wallace (Roosevelt’s vice-president until 19944) would never have given in to War Department hawks.

Wallace, according to Stone, was a true liberal populist in the Roosevelt mold. He was universally hated by Wall Street elites. He lost the 1944 vice presidential nomination to Truman (despite controlling over 65% of the delegates) after Democratic Party bosses rigged the 1944 Democratic Convention.

Part 1 – World War II

https://vimeo.com/136182100

Part 2 – Roosevelt, Truman & Wallace

https://vimeo.com/136182101

Part 3 – The Bomb

Trump, Hitler and Right Wing Populism

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Make America Hate Again

Reich Wing Watch (2016)

Film Review

Make America Hate Again, a documentary about Donald Trump’s right wing populism, likens his strong appeal for blue collar white men to that of Adolph Hitler. The film specifically examines the narcissistic personality disorder – the profound grandiosity, entitlement and absence of empathy – shared by both men. The filmmakers find it no accident that Trump enjoys the support of modern day white power supremacists and neo-Nazi fascists who idolize Hitler.

They also examine the appeal of racial scapegoating for white men struggling with profound fear and inadequacy in economically precarious times. As Hitler fomented irrational hatred of Jews to propel his rise to power, Trump foments irrational hatred of Muslims and #Blacklivesmatter activists.

The documentary includes great video footage of rabid Trump supporter Alex Jones foaming at the mouth, as well as audio footage of Michael Parenti lambasting mainstream politicians (and media) for concealing the link between capitalism and fascism.

In my view, the film’s major weakness is its failure to expand on this link. It makes brief mention of the German industrialists who financed Hitler’s rise to power. However it fails to mention the key role played by Wall Street corporations in the rise of Nazi Germany.

I was also disappointed by the documentary’s failure to examine the financial interests promoting Trump’s meteoric rise in the corporate media and public opinion polls.

 

A 241 Year Fairy Tale About American Democracy

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war is a lie

 

War is a Lie

By David Swanson

Just World Books (2016)

Book Review

In War is a Lie, author David Swanson presents extensive historical evidence that the US has never been a democratic republic – that this is a carefully crafted fairy tale the ruling elite has been telling us since the late 18th century. He also demolishes the myth that warfare is deeply ingrained in human nature. Ninety-eight percent of people are deeply opposed to killing and warfare and require extensive brainwashing to commit to either. Although the species homo sapiens is 60,000 – 1000,000 years old, they have only engaged in war for the last 10,000 years. Many human civilizations (including the people of the Arctic, Northeast Mexico, Australia and Nevada’s Great Basin) had no experience of war prior to contact with Europeans. Among the more astonishing facts Swanson reveals is that 80% of the US troops drafted into World War II declined to kill enemy troops.

Starting with the Revolutionary War, War is a Lie is full of delightful little factoids that are omitted from high school and college US history courses.

Among the high points:

Revolutionary War

The two real goals of the US War of Independence were to 1) remove the King’s representatives from positions of power in North America and replace them with colonial merchants and bankers and 2) to overturn the British ban on western expansion (via the slaughter of indigenous tribes). The Continental Army consisted mainly of poor farmers who were forcibly conscripted, brutally mistreated and rarely paid (even though General Washington was the richest man in the colonies. During and after the war, numerous “democratic reforms” were enacted to motivate these the “recruits, with all being promptly nullified.

War of 1812

Contrary to what we’re taught in school, the US started the War of 1812, with the intention of invading and occupying Canada. They lost this war.

Mexican-American War (1846-48)

Another war about western expansion that resulted in the US annexation of Texas, California, Utah, New Mexico, Arizona, Nevada and parts of Colorado and Oregon. Many Irish and other European immigrants fought for Mexico.

Civil War

Swanson maintains the Civil War was also about western expansion and whether the North or South would control the new western territories. Swanson stresses that Lincoln could have easily freed the slaves without launching a war (other countries did so). The Emancipation Proclamation was issued well after the war started, as public sentiment turned against the war due to high casualties. Swanson reminds us that the Proclamation only applied to states that had seceded – slavery remained legal in Union states.

World War II

Swanson details the deliberate Wall Street strategy of arming Hitler to neutralize the Soviets, highlighting orders US pilots received not to bomb German munitions factories owned by Americans. He also writes at length about the Nazi eugenics experiments that originating in the US under the guidance of Rockefeller, Carnegie and Harrison. I was intrigued to learne the Rockefeller Foundation funded Josef Mengele’s experiments on Jewish prisoners. Swanson attributes Roosevelt’s eagerness to enter World War II to increasing working class militancy in the US (which the compulsory draft ended) and fears of full blown insurrection. He also discusses numerous efforts Hitler made (as late as 1940) to negotiate a peace settlement with the allies – which they rebuffed.

A Cuban Novel About Trotsky’s Assassination

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the man who loved dogs

The Man Who Loved Dogs

By Leonardo Padura

Translated by Anna Kushner (2013)

Book Review

The Man Who Loved Dogs is a fictional account of the Stalinist Conspiracy to assassinate Leon Trotsky in Mexico in 1940. Havana author Leonardo Padura uses three distinct perspectives to relate his story: that of Trotsky and his family, that of his assassin Roman Mercader and that of a failed Cuban writer who accidentally encounters Mercader on a Cuban beach in the 1970s as he’s on the verge of death.

The conspiracy is vaguely reminiscent of the JFK assassination conspiracy, in that it was meticulously planned and took three years to set in motion. Mercader was a Spanish Communist recruited by Stalin’s agents and brought to the USSR for specialized intelligence training. Posing as a Belgian journalist, he cultivated an American Trotskyite girlfriend to facilitate his entry into the high security compound where Trotsky’s family lived in Coyoacan Mexico.

The early part of the book contains long sections about the Spanish Civil War. These focus on Stalin’s brutal efforts to undermine the Spanish Revolution by assassinating anarchist and Trotskyite rivals, including members of the International Brigades. He then proceeded to abandon Spain’s Republican government to Franco’s fascists to improve his negotiating position with Hitler.

The History of Trotsky’s Exile

The narrative from Trotsky’s perspective begins with his forced exile to Turkey in 1929. He’s eventually offered asylum in France and Norway, both of which expel him (under pressure from local communists) after a few months. These sections also focus on Trotsky’s dismay regarding Stalin’s decade of show trials and executions, which systematically eliminated the primary Bolshevik luminaries responsible for the 1917 revolution, as well as one-third of the leadership of the Soviet Army.

Prior to 1990 Books About Trotsky Banned in Cuba

The narrative based on the fictional Cuban writer focuses on the intellectual and artistic repression that characterized the early Castro regime and the severe hardship (literal starvation in many cases) that began when the USSR collapsed in 1989 and Cuba ceased to have access to cheap soviet oil essential to their system of industrial agriculture.

Prior to the 1990s, books by or about Trotsky were banned in Cuba, as they were in the USSR. As Padura reminds us in his acknowledgements, Cubans of his generation grew up totally unaware that Trotsky or Trotskyism even existed. From this perspective, one can’t help but marvel at his extensive research into Trotsky’s personal and political history, as well as the Spanish Civil War and Stalin’s show trials.