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  of Two
       Charismatic Leadership
• The German sociologist Max Weber
  described certain leaders as having
  exceptional qualities—a charisma—that
  enabled them to motivate followers to
  achieve outstanding performance.
  Charisma is a Greek word meaning “gift
  bestowed by the gods.”
          Requirements for
        Charismatic Leadership
•   Four conditions give rise to charismatic
      1. A crisis situation
      2. Potential followers in distress
      3. An aspiring leader
      4. A doctrine promising deliverance.
        A Blessing and a Curse
• "Charisma is a tricky thing. Jack Kennedy oozed
  it—but so did Hitler and Charles Manson. Con
  artists, charlatans, and megalomaniacs can make
  it their instrument as effectively as the best CEO's
  entertainers, and presidents. Used wisely, it's a
  blessing; indulged, it can be a curse. Charismatic
  visionaries lead people ahead—and sometimes
  astray." Fortune, January 15, 1996
                The Crisis
• Both Franklin D.
  Roosevelt (FDR)
  and Adolf Hitler
  came to power in
  1933, at the height
  of the Great
  Depression. The
  situation was
  The Situation in the United States:
         An Economic Crisis
• Unemployment was at
  25% (i.e., 2,830,000                 25%
  people were unemployed).
• Wages for those who
  retained their jobs fell          Unemployment
  almost 43% between 1929     120

  and 1933.                   100


• Farm prices fell             60

  dramatically. Many farm      40
                                               - 40%
  families lost their homes    20


  or went hungry.               1929    1933

 US Incomes: 1932

 Occupation        Weekly Salary*           Savings

Factory Worker           $16.89             $33.50

    Cook                 $15.05             $29.00

 Accountant              $45.28             $180.00

   Doctor                $61.11             $488.00

              *National Averages for 1932
         US Prices: 1932-1933
• The 1932-1933 Price List for Mooresville,
  Indiana, reveals these costs:
     • 1 loaf of Grandmother's Quality bread: 5 cents
     • 1 quart of milk: 25 cents
     • 1 pound of cheese: 19 cents             1932
     • 1 pound of bananas: 15 cents            Price
     • Mortgage 2-BR, 1-BA bungalow:            List
       $35 per month
     • Payment on Chevrolet coupe: $14.09
   The Situation in Germany: An Economic and
    Political Crisis with Low National Morale
• After World War I, Germany faced a series of crises:
   • Under the Versailles Treaty, Germany had to disarm, give up land and pay
      heavy reparations.
   • The devastated country suffered from
      widespread unemployment, runaway           1

      inflation, and low national morale.       0.8

        • By 1923 the mark was worth            0.6

           one-trillionth (0.000000000001)      0.4

            of its original value.              0.2

        • The middle class, a necessity for      0
                                                      Pre -War   1923

            a stable democratic government,
                                                       Value of Mark
           was wiped out.
   • The Weimar Republic, established in 1919, had a divided democratic Reichstag
      with many parties including Communists, Socialists, and Fascists.
        • The Germans were used to a strong autocratic regime.
        • Many feared a Communist revolution.
         Decline in German Incomes
• Companies throughout Germany         7,000,000
  went bankrupt.                       6,000,000
• Millions of workers were laid off,
  affecting nearly every German        3,000,000

  family.                              2,000,000
• Unemployment increased from                 0
  650,000 in 1928 to 6,100,000 in             1928    1929   1930   1931   1932   1933

  1933 (25 % of the workforce):                      Unemployment
       • 1928: 650,000
         1929: 1,320,000
         1930: 3,000,000
         1931: 4,350,000
         1932: 5,102,000
         1933: 6,100,000
          German Political Disunity
• The crisis of the Great
  Depression brought political
  disunity to Germany.
   • Members of the Reichstag could
     not get together to enact
     desperately needed legislation.
   • It broke up into squabbling,
     uncompromising groups and was
     finally dissolved in July 1930.
   • There was a call for new elections.
     This gave Adolf Hitler his chance.
                The Way is Clear
• The German people were
  tired of all of these things:
   • The political squabbling
   • The misery and the suffering
     of the Great Depression
   • The weakness exhibited by the
     democratic Weimar Republic
• These were desperate times
  and they were willing to
  listen to anyone.
              How FDR Restored Hope
• FDR was perceived as a man of action
  (promised a “new deal for the
  American people”)
   • His predecessor Herbert Hoover was
     viewed as a “do-nothing president” and
     attacked the Democrats as dangerous
   • Norman Thomas, the Socialist candidate,
     was viewed as a radical alternative. He
     advocated government ownership of the
     means of production.
   • Results of election of 1932: a landslide for
     Democrats and a mandate to use the
     government as an agency for human
              How FDR Restored Hope
• FDR had a solution to the desperate
  situation the country was in when
  he entered office in March, 1933:
   • Country was virtually leaderless
   • Banking system had collapsed.
• His first inaugural address restored
  confidence: “The only thing we
  have to fear is fear itself…” In that
  address, he promised:
   •   Vigorous leadership and bold action
   •   Called for discipline and cooperation
   •   Expressed his faith in democracy
   •   Asked for divine protection and
How FDR Restored Hope
     • FDR had personal qualities that
       made him an effective leader:
        • He was a practical politician (practiced
          the art of the possible)
        • He genuinely liked people (exhibited a
          warmth and understanding of people)
        • He knew how to handle the press
          (focused attention on Washington)
        • He provided dynamic leadership in a
          time of crisis (1st week: special session
          of Congress, bank holiday, Emergency
          Banking Act, 1st fireside chat)
        • He was willing to experiment
              How Hitler Restored Hope
• Hitler used his strong nationalistic
  convictions and oratory skills to deliver a
  simple 3-part message.
• Part 1 involved finding scapegoats. (This
  made people feel in control. If they know
  the reason for the desperate situation they
  are in, they can do something about it.) He
  told them:
   • Germany did not loose the war but
      was stabbed in the back by the Jewish
      and socialist traitors.
   • The Versailles Treaty imposed by the
      Allies was the root of all evil and had
      to be denounced.
   • The Jewish capitalists and the Jewish
      communists are the mortal enemies of
      the German people.
             How Hitler Restored Hope
• Part 2 gave the German people
  confidence in their ability to
  succeed. He told them:
• The Germans are a superior race
  destined to rule the World: "In
  ourselves alone lies the future of
  the German people. Only when
  we ourselves raise up our German
  people, though our own labor, our
  own industry, our own
  determination, our own daring
  and our own perseverance, only
  then shall we rise again."
How Hitler Restored Hope
           • Part 3 established himself as the
             savior of Germany: He told people:
           • The Fuhrer is infallible and the
             destiny of Germany is in his hands:
             “Germany is now awakened. We
             have won power in Germany. Now
             we must win over the German
             people. I know, my comrades, it
             must have been difficult at times,
             when you were desiring change
             which didn't come, so time and time
             again the appeal has to be made to
             continue the struggle - you mustn't
             act yourself, you must obey, you
             must give in, you must submit to
             this overwhelming need to obey."
    How FDR Achieved His Goals: Economic
         Relief, Recovery, and Reform
• FDR increased the size and
  scope of the federal government
  to meet the needs of the
• He worked within the democratic
  political system to create new
  government agencies and
  sponsor legislation with these
  objectives in mind:
   • To put people back to work
   • To raise prices for business
     and agriculture
   • To bring about permanent
     economic reform
  How FDR Achieved His Goals: Economic
       Relief, Recovery, and Reform
• Examples of New Deal legislation to bring about recovery
  and relief:
   • National Recovery Act - for the recovery of industry (created a
     partnership of business, labor, and gov’t to attack the depression
     with such measures as price controls, high wages, codes of fair
   • First Agricultural Adjustment Act – for the recovery of agriculture
     (paid farmers who agreed to reduce production of basic crops such
     as cotton, wheat, tobacco, hogs, and corn; money came from a tax
     on processors such as flour millers and meat packers who passed
     the cost on to the consumer)
   • Federal Emergency Relief Admin. – relief (gave money to states
     and municipalities so they could distribute money, clothing, and
     food to the unemployed)
   • Civilian Conservation Corp. – relief (gave outdoor work to
     unemployed men between the ages of 17 and 29; they received $30
     per month, but $22 were back to the family
How FDR Achieved His Goals: Economic
     Relief, Recovery, and Reform
• Examples of New Deal legislation to bring about
  permanents reform:
   • Social Security Act (gave money to states for aid to
     dependent children, established unemployment
     insurance through payroll deduction, set up old-age
     pensions for retirees)
   • National Labor Relations Act (put restraints on
     employers and set up a National Labor Relations
   • Second Agricultural Adjustment Act (paid farmers for
     conservation practices, but only if they restricted
     production of staple crops)
   • U.S. Housing Authority (used federal funds to tear
     down slums and construct better housing)
 How Hitler Achieved His Goals: Power,
   Economic Recovery, German Superiority
• Immediately after becoming Germany's Chancellor in
  1933, Hitler started an extensive process of consolidating
  his power:
   • The Reichstag Fire: On February 27, the Nazis created a crisis by
     setting the Reichstag on fire and blaming it on the Communists.
   • Suspension of Civil Liberties: The next day Hitler persuaded
     President Hindenburg to suspend civil liberties to deal with the
   • The Enabling Act: Two weeks later, Hitler requested the Reichstag
     to temporarily delegate its powers to him so that he could
     adequately deal with the crisis. The “Enabling Act” made Hitler
     dictator of Germany, freed of all legislative and constitutional
   • Control of the Judiciary: The Nazis gained control of the judiciary
     when they transferred jurisdiction over treason cases from the
     Supreme Court to a new People’s Court controlled by the Nazi
   • The New Order: On August 2, 1934, Hindenburg died, and the title
     of president was abolished. Hitler’s title became Fuehrer and Reich
        How Hitler Achieved His Goals: Power,
          Economic Recovery, German Superiority
• At home, Hitler achieved economic
  recovery with rearmament and public
  works projects related to the military:
   • An extensive highway system (the
   • Extension of the Navy and Air
   • An increase in the size of the army
     to 500,000
   • Compulsory service in the Labor
     Corp (which reduced
• As the world depression receded, high
  government expenditures wiped out
How Hitler Achieved His Goals: Power,
Economic Recovery, German Superiority
            • On the international scene, Hitler embarked on a
              series of high-risk adventures to achieve
               • He renounced the Treaty of Versailles
               • He occupied the Saar Land, annexed Austria,
                  and dismembered Czechoslovakia.
            • This improved the national morale and made Hitler
              very popular but caused problems:
               • The 45 billion marks spent on rearmament
                  tripled the amount of money in circulation and
                  caused inflation.
               • There were not enough goods and services
                  available to satisfy the demand caused by the
                  increased supply of money.
            • Facing a collapse of the economy, Hitler embarked
              on new international adventures: Poland, France,
              and Russia – precipitating World War II.
        How FDR Handled Opposition
• By 1935, political disunity was evident
  (critics on right and left)
   • Criticisms of Conservative Opponents of
     the New Deal (ND went too far)
       • It was socialism (ND was destroying the
         “American system” of individualism)
       • It added to the national debt (money thrown
         away on relief, encouraged idleness, $35
         billion debt)
       • It violated the constitution (ND legislation
         unconstitutional, states rights violated)
       • It increased the power of the Presidency
         (FDR was reaching toward dictatorship,
         Congress a rubber stamp, independence of
         judiciary threatened, separation of powers
       • Organization: American Liberty League
         had money but small in numbers, so FDR
         not worried
     How FDR Handled Opposition
• Criticisms of Radical Opponents of the New Deal (ND didn’t go
  far enough)
   • Sen Huey Long (LA): ND relief measures mere crumbs, advocated a share
     the wealth plan (guaranteed annual income of at least $5,000 by
     confiscating wealth over $5 million)
   • Fr. Charles E. Coughlin: a rabble-rousing radio priest from Detroit,
     broadcasts called “Golden Hour of the Little Flower,” said there was an
     international bankers conspiracy and Jews were responsible, advocated
     nationalization of banking and currency and national resources, and
     demanded a “living wage.”
   • Dr. Francis E. Townsend: an elderly physician from CA, had a plan
     whereby the federal government would pay $200 per month to unemployed
     people over 60, program would be financed by a 2% national sales tax,
     each pensioner would be required to spend the money in 30 days (this
     would stimulate the economy)
   • These people were demagogues (rabble-rousers) and had popular
     followings, so FDR was concerned.
        How FDR Handled Opposition
• FDR used the democratic political
  system and sponsored moderate
  legislation to silence radical
   • Revenue Act of 1935 – Response to
     Huey Long. Increased taxes on large
     incomes and corporations.
   • Banking Act of 1935 – Response to
     Coughlin. Extended federal control
     over private banking practices.
   • Social Security Act of 1935 –
     Response to Townsend. Included
     provisions for unemployables
     (dependent children, the handicapped,
     the blind), unemployment insurance,
     and old-age pensions.
          How Hitler Handled Opposition
• Propaganda: Hitler tried to gain
  cooperation first and foremost by
  using propaganda (see PPT on
  Nazi Propaganda): “The effective
  propagandist must be a master of
  the art of speech, of writing, of
  journalism, of the poster, and of
  the leaflet. He must have the gift
  to use the major methods of
  influencing public opinion such
  as the press, film and radio to
  serve his ideas and goals, above
  all in an age of advancing
  technology. . . It may be good to
  have power based on weapons. It
  is better and longer lasting,
  however, to win and hold the
  heart of a nation.” -- Joseph Goebbels
        How Hitler Handled Opposition
• Terrorist Tactics: The Nazis also used terrorism to achieve their goals:
    • The SA: The Nazis created a party organization called the Sturmabteilungen (SA). It was
      a semi-military voluntary group of young men trained for and committed to the use of
      violence to control the streets.
    • Rollkommandos: The Nazis used physical violence and terror to break up meetings of
      political opponents, and to suppress opposition in their own meetings. The
      Rollkommandos were a group organized by Goebels to interrupt meetings, make noise,
      and unnerve the speaker. They also used raids, resulting in fights, during which furniture
      was destroyed and a number of persons hurt. The Nazis armed themselves with
      blackjacks, brass knuckles, rubber truncheons, walking sticks, and beer bottles.
    • The Gestapo: The Gestapo was part of the SS (Schutzstaffel), Hitler's elite paramilitary
      corps. They constituted the Secret Police and
        • Einsatzgruppen (Task Force) became an integral part of the Gestapo. It was the Task Force's
          job to round up all the Jews and other "undesirables" living within Germany's newly conquered
          territories, and to either send them to concentration camps or put them to death.
        • The army units within the Gestapo were taught many torture techniques, and were also taught
          many of the practices that German doctors in Dachau tested on the inmates of concentration
          camps. The Gestapo, during its tenure, operated without any restrictions by civil authority,
          meaning that its members could not be tried for any of their police practices. This
          unconditional authority added an elitist element to the Gestapo; its members knew that
          whatever actions they took, no consequences would arise.
               The Outcome: FDR’s New Deal
•   Physical and human rehabilitation of country
     •   Attacked soil erosion
     •   Built dams and planted trees to prevent floods
     •   Reclaimed the grasslands of the Great Plains
     •   Developed water power resources
     •   Encouraged regional reconstruction projects like the TVA and Columbia River project
     •   Established the principle that government has responsibility for the health, welfare, and security, as well as the
         protection and education of its citizens
     •   Embraced social security, public health, housing
     •   Entered the domain of agriculture and labor
•   Revitalization of politics and extension of democracy
     •   Strengthened executive branch
     •   Reasserted presidential leadership
     •   Revitalized political party as a vehicle for the popular will and as an instrument for effective action.
     •   Redefined democracy: came to mean more than just a form of government (rule by the people, political rights for
         the individual). It now defined a way of life in which economic security and social justice were just as important as
         political rights.
•   Maintenance of a democratic system of government and society in a world threatened by totalitarianism.
     •   Increased size and scope of government to meet needs of the depression
     •   Provided the leadership that enabled Congress to put through the necessary relief, recovery, and reform measures.
     •   Sponsored moderate legislation to neutralize the popularity of radical opponents
     •   Redefined the concept of democracy so that it included not only political rights but economic security and social
         justice as well.
• “I never forget that I
  live in a house
  owned by all the
  American people
  and that I have been
  given their trust.”
  – Franklin D. Roosevelt
     The Outcome: Hitler’s New World Order
• Total destruction of the German nation (it was defeated in
  World War II and occupied by France, Great Britain, the
  United States, and the Soviet Union).
   • The city of Berlin (divided between the Soviet Union and the
     West) became a pawn in the Cold War
   • The Berlin Wall dividing East and West Berlin, erected by the
     Soviet Union to protect its interests, did not come down until 1989.
• Loss of lives:
   • Over 7 million Germans lost their lives during World War II:
     3,250,000 military casualties, 3,810,000 civilian casualties.
   • Hitler was largely responsible for the 56 million lives lost by all
     nations during World War II
   • The Holocaust: 6 million Jews (2/3 of the Jewish population of
     Europe) lost their lives.
• “We shall not
  capitulate... no
  never. We may be
  destroyed, but if we
  are, we shall drag a
  world with us... a
  world in flames.”
  – Adolf Hitler

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