How Communist Propaganda Changed America

Epic Economics
10 Dec 202329:49

Summary

TLDRThis video explores the rise of public relations in America, focusing on Edward Bernays, the nephew of Sigmund Freud, who pioneered propaganda to manipulate consumer behavior. It delves into Bernays' work with politicians, including Calvin Coolidge and Herbert Hoover, and his role in shaping public opinion during the Great Depression. The video also examines Bernays' influence on the New Deal era, his ideological conflict with FDR, and his later work with the United Fruit Company, which led to the CIA-backed coup in Guatemala. It highlights the power of PR in shaping political narratives and the implications for democracy.

Takeaways

  • 📢 Edward Bernays, Sigmund Freud's nephew, pioneered the field of public relations in America, focusing on propaganda campaigns to influence consumer behavior.
  • 🤝 Bernays collaborated with politicians, including President Calvin Coolidge, to shape public opinion and improve their images through events like the White House pancake breakfast.
  • 📉 Bernays' propaganda campaigns contributed to the stock market boom and subsequent crash during the Great Depression, affecting many working-class Americans.
  • 🏦 The Great Depression exposed the flaws in Coolidge's economic policies, which included deregulation and tax cuts for the wealthy, leading to increased income inequality.
  • 🕴️ Bernays believed in controlling the masses through propaganda by an intelligent minority for the stability of American democracy.
  • 🗳️ Franklin D. Roosevelt's (FDR) approach contrasted with Bernays', advocating for active government intervention and trust in the rationality of the public.
  • 📊 FDR utilized scientific polling to understand public sentiment, leading to the creation of the presidential approval rating as a measure of public opinion.
  • 🛑 Bernays, along with the National Association of Manufacturers, fought against FDR's New Deal, viewing it as a threat to free enterprise and individual liberty.
  • 🗽 The 1939 New York World's Fair, influenced by Bernays, showcased an idealized vision of the future, promoting consumerism and technological advancement.
  • 🍌 Bernays worked with the United Fruit Company to promote bananas and manage their public image, engaging in propaganda to protect their interests in Guatemala.
  • ✈️ Bernays was involved in the CIA's psychological warfare and propaganda campaign that led to the overthrow of Guatemalan President Jacobo Arbenz in 1954, illustrating the power of PR in shaping international politics.

Q & A

  • Who was Edward Bernays and what was his role in American society?

    -Edward Bernays was Sigmund Freud's nephew and a pioneer in the field of public relations. He specialized in propaganda campaigns aimed at influencing consumer behavior, and he believed that the masses needed to be controlled by an intelligent minority for a peaceful and prosperous American democracy.

  • What was the impact of Bernays' work on the 1928 presidential campaign of Calvin Coolidge?

    -Bernays helped to improve Coolidge's public image by organizing a pancake breakfast at the White House with famous actors and actresses, which made Coolidge appear more relatable. Bernays' efforts contributed to Coolidge's successful re-election and his perception as a popular president.

  • How did Bernays contribute to the stock market boom and eventual crash during the 1920s?

    -Bernays distributed propaganda that encouraged the average American to invest in the stock market, promoting the idea that owning stocks was key to the American dream. This led to a wave of stock purchases, including by banks, which contributed to the overvaluation of stocks and ultimately the stock market crash that marked the beginning of the Great Depression.

  • What was the role of the Reconstruction Finance Corporation and the Federal Farm Board in the response to the Great Depression?

    -These government organizations were created to provide loans to banks, businesses, and farmers to stimulate the economy. Bernays, who believed in the interests of corporations over individual citizens, played a role in persuading President Hoover to establish these entities, many of which were also his clients.

  • How did Bernays' views on democracy and the role of the public differ from those of Franklin D. Roosevelt?

    -Bernays believed that the masses were not capable of making informed decisions and needed to be manipulated by an intelligent minority for effective democracy. In contrast, FDR believed in the rationality of the public and that they could actively participate in government, advocating for policies that directly benefited the average American.

  • What was the National Association of Manufacturers, and how did it influence public opinion against the New Deal?

    -The National Association of Manufacturers was a lobby group created by Bernays, consisting of major US corporations. It launched propaganda campaigns to create emotional attachments between the public and big business, and it criticized the New Deal as a threat to free enterprise and individual liberty.

  • How did Bernays use the 1939 New York World's Fair to promote his vision of the American dream?

    -Bernays used the fair to showcase a modern, sleek future filled with new electronic products, symbolizing a harmonized future by capitalism and democracy. He designed Democra City, with a giant white Dome as its main attraction, to represent this vision and to reinvigorate the American dream.

  • What was the United Fruit Company, and how did Bernays help shape its public image in the United States?

    -The United Fruit Company was a corporation that had a monopoly over the Guatemalan banana trade and controlled significant parts of Guatemala's infrastructure. Bernays promoted banana sales by linking them to good health and created the Middle America Information Bureau to control the narrative about Central America, presenting it as a region that should adopt democratic American values.

  • How did Bernays contribute to the 1954 coup in Guatemala, and what was the outcome?

    -Bernays played a key role in the coup by manipulating public perception, framing Guatemala's president as a communist threat controlled by Moscow. He worked with the CIA to spread propaganda and psychological warfare, which led to the overthrow of the Guatemalan government and the installation of a puppet leader favorable to the United Fruit Company and the United States.

  • What was the significance of the psychological warfare campaign during the Guatemalan coup, and what tactics were used?

    -The psychological warfare campaign was significant as it aimed to create fear and paranoia among Guatemalan political figures and the public, convincing them of their inevitable defeat. Tactics included spreading anti-communist propaganda through radio, sending death threats and dummy bombs to government loyalists, and using the media to control the narrative in favor of the coup.

Outlines

00:00

📢 The Birth of Public Relations and Consumer Propaganda

This paragraph introduces the concept of public relations and consumer propaganda in America, highlighting the role of Edward Bernays, Sigmund Freud's nephew. Bernays established a firm specializing in propaganda campaigns aimed at increasing consumer spending. He believed that for a peaceful and prosperous democracy, the masses should be controlled by an intelligent minority. The narrative discusses the early 1930s conflict between politicians and corporations over America's consciousness, where Bernays used irrational fears to manipulate public opinion, aligning with the interests of businesses and the government.

05:00

🤔 The Manipulation of Public Opinion and the Rise of FDR

The second paragraph delves into the manipulation of public opinion by Calvin Coolidge's administration and Bernays' efforts to make him appear relatable. It discusses the economic policies that led to the Great Depression and how Bernays' propaganda encouraged stock market investments, which backfired. The paragraph transitions to Herbert Hoover's presidency, where Bernays continued his work, focusing on the interests of corporations over citizens. It contrasts Bernays' views with those of Franklin D. Roosevelt, who believed in an active government role and trusted the public's rationality, using scientific polling to gauge sentiment.

10:01

🎭 Bernays, FDR, and the Battle for the American Dream

This paragraph contrasts Bernays' and FDR's ideologies and their impact on the American public. Bernays, through the National Association of Manufacturers, launched propaganda campaigns to protect big business interests against FDR's New Deal. He crafted narratives that positioned enterprises as the sculptors of modern America. In response, FDR used films to expose the manipulative tactics of big business and public relations consultants. The 1939 New York World's Fair, organized in part by Bernays, aimed to reinvigorate the American dream, with Bernays creating Democra City to symbolize a harmonious future of capitalism and democracy.

15:02

🍌 United Fruit Company and Bernays' Propaganda

The fourth paragraph explores Bernays' work with the United Fruit Company, which had a monopoly over the banana trade and controlled significant aspects of Guatemala's infrastructure. Bernays was tasked with promoting banana sales and managing the company's image in the US. He warned of the dangers of public outrage if the oppressive practices in Guatemala were exposed. Bernays created the Middle America Information Bureau to control the narrative around Central America, aiming to rebrand it as a region aligned with American values. However, the bureau was shut down, and Bernays continued his work with United Fruit as the Guatemalan Revolution unfolded.

20:02

💥 Overthrowing Guatemala's Government: Bernays and the CIA

The fifth paragraph details Bernays' involvement in the CIA's coup against Guatemala's President Árbenz. Bernays and the US government framed Árbenz as a communist threat, despite no ties to Moscow. The CIA, with Bernays' help, used psychological warfare and propaganda to manipulate public perception and justify the coup. Bernays orchestrated journalist tours, staged events, and disseminated false narratives to the media. The CIA's operation, supported by United Fruit, successfully installed a puppet government, with Bernays playing a key role in shaping the global narrative to favor US interests.

25:04

🌐 The Aftermath of the Guatemalan Coup and Bernays' Legacy

The final paragraph discusses the aftermath of the coup in Guatemala, where the US-backed Castillo Armas became president, returning land to United Fruit and granting them preferential treatment. The US and United Fruit continued to manipulate media to justify their actions, portraying Armas as a liberator. The paragraph also touches on the visit by Vice President Nixon, who was presented with staged 'evidence' of communism to solidify the narrative. The paragraph concludes with a contemporary reference to a new channel launch, suggesting a continuation of narrative manipulation in modern times.

Mindmap

Keywords

💡Propaganda

Propaganda refers to information, especially of a biased or misleading nature, used to promote or publicize a particular political cause or point of view. In the video, Edward Bernays is introduced as a pioneer in the use of propaganda for consumerism, which was a new concept in America at the time. The script discusses how Bernays used propaganda to motivate consumers to buy more, and how it was later used to manipulate public opinion during political and economic crises, such as the Great Depression.

💡Public Relations

Public relations (PR) is the practice of managing the spread of information between an individual or an organization and the public. In the context of the video, Bernays is credited with the birth of the public relations industry in America, which was used to shape public opinion and consumer behavior. The video discusses how PR was employed by politicians, businesses, and even the CIA to influence the masses and control narratives.

💡Consumerism

Consumerism is the social and economic order and ideology that encourages the acquisition of goods and services in ever-increasing amounts. The video highlights how Bernays and the public relations industry he helped create promoted consumerism as a means to motivate people to buy more, even things they didn't need, which was a significant shift in American culture and economy.

💡Great Depression

The Great Depression was a severe worldwide economic depression that lasted from 1929 to the late 1930s. In the video, the Great Depression is mentioned as a turning point where the consequences of laissez-faire economic policies and the manipulation of the stock market by public relations tactics led to a significant economic collapse, affecting millions of Americans.

💡Laissez-faire capitalism

Laissez-faire capitalism is an economic system in which transactions between private parties are free from government intervention such as regulation, privileges, or subsidies. The video discusses how President Coolidge, influenced by Bernays, supported laissez-faire capitalism, which contributed to the economic imbalances that led to the Great Depression.

💡Herbert Hoover

Herbert Hoover was the 31st President of the United States, serving from 1929 to 1933. The video describes Hoover's presidency during the early years of the Great Depression, where his response to the crisis was seen as unsatisfactory by the American public. Bernays is mentioned as having worked with Hoover to shape media narratives and coordinate responses to the economic crisis.

💡Franklin D. Roosevelt

Franklin D. Roosevelt, commonly known as FDR, was the 32nd President of the United States and served from 1933 until his death in 1945. The video contrasts FDR's interventionist approach to government with the laissez-faire policies of his predecessors. FDR's New Deal is highlighted as a significant shift in American policy, aiming to provide relief and economic recovery during the Great Depression.

💡Psychological Warfare

Psychological warfare is the use of propaganda and other psychological manipulation techniques to influence the thoughts, emotions, and behaviors of a target group. In the video, psychological warfare is discussed in the context of the CIA's operation to overthrow the Guatemalan government, where Bernays played a key role in shaping the narrative and manipulating public perception.

💡United Fruit Company

The United Fruit Company was an American corporation that played a significant role in the economic and political affairs of several Central and South American countries. The video details how the company, with Bernays' help, used propaganda to maintain its control over the banana trade and influence in Guatemala, eventually leading to the overthrow of a democratically elected government.

💡Cold War

The Cold War was a period of geopolitical tension between the Soviet Union and the United States and their respective allies, the Eastern Bloc and the Western Bloc, after World War II. The video mentions the Cold War as a backdrop for the United States' fear of communism and its use of propaganda to manipulate public opinion, as seen in the case of Guatemala.

Highlights

Introduction to Edward Bernays, the father of public relations and nephew of Sigmund Freud, who used propaganda to influence consumer behavior.

Bernays' belief in the need for an intelligent minority to control the masses for a peaceful and prospering democracy.

The use of propaganda to make President Calvin Coolidge appear more relatable and boost his popularity.

Coolidge's support for laissez-faire capitalism and the deregulation that contributed to the economic gap and the Great Depression.

Bernays' campaign to convince Americans to invest in the stock market, which later contributed to the Great Depression.

Herbert Hoover's hiring of Bernays to manage his public image and response to the Great Depression.

Franklin D. Roosevelt's contrasting approach to government, focusing on active intervention and support for the working class.

Bernays' creation of the National Association of Manufacturers to counter Roosevelt's New Deal and protect corporate interests.

The use of Hollywood and media to shape public opinion against the New Deal and promote pro-business narratives.

Bernays' involvement in the 1939 New York World's Fair, promoting a vision of a modern, capitalist future.

United Fruit Company's hiring of Bernays to promote bananas and manage their public image amidst exploitative practices in Guatemala.

The CIA's coup in Guatemala, orchestrated with Bernays' propaganda to frame the president as a communist threat.

Bernays' role in manipulating media narratives, including planting stories and staging events to control public perception of Guatemala.

The psychological warfare tactics used during the coup, including fear campaigns and the creation of the 'Voice of Liberation' radio station.

The aftermath of the coup, with Carlos Castillo Armas installed as a puppet leader and the media's portrayal of the events as a victory against communism.

Vice President Nixon's visit to Guatemala and the display of planted Marxist literature as proof of the overthrow of communism.

The launch of the 'Context Matters' channel, focusing on politics and providing in-depth analysis of historical events.

Transcripts

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to what extent do you trust your

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government do you think your government

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would lie to you have they ever lied to

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you and if

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so why in our episode how consumer

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propaganda changed America we were

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introduced to Sigman Freud's nephew

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Edward bernes he had created a new kind

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of firm in America one that specialized

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in propaganda campaigns meant to

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motivate consumers into buying more and

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more of the things they didn't need this

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marked the birth of a new American

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industry it would be called public

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relations unlike his clients who

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included businessmen celebrities and

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notable politicians bernes himself was

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not motivated by Fortune fame or even

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political office what bernes wanted was

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a peaceful prospering American democracy

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and in order to have that bernes

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believed that the masses needed to be

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controlled by an intell ENT minority

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this story is about the fight for

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America's Consciousness that broke out

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in the early 30s between America's

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politicians and its corporations in its

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aftermath Edward bernes would unite

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America around irrational fears fears

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that bernes felt if nurtured would be

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strong enough to dissuade Americans from

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the facts in front of them as the

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corporations the president and the CIA

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would all band together to feed the

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American public

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[Music]

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lies in 1924 the president of the United

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States Calvin kulage hired bernes to

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help with his Public Image because

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Americans thought coolage was super

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boring to make the president feel more

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relatable and hip bernes organized a

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pancake breakfast at the White House for

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coolage and a group of of famous actors

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and actresses the event was widely

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publicized and bernes continued to work

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for coolage as he secured his second

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term in office kulage was now widely

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seen as a popular and successful

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president and in no small part thanks to

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America's booming economy like Bernay

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kulage was a strong supporter of lé fair

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capitalism and believed government

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intervention in the economy would only

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lead to

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inefficiencies as a result of his La

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Fair beliefs coolage signed deregulation

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laws that allowed Banks to make risky

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Investments he also cut taxes for the

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wealthy which led to a growing gap

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between the rich and the poor to inspire

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optimism amongst America's working-class

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citizens bernes convinced the masses to

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begin investing in America's booming

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stock market he distributed propaganda

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that argued owning a piece of the stock

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market was the key to the American dream

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which resulted in a wave of stock

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purchases from Banks who also happened

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to be Bern's clients America's stock

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market continued soaring but its

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unsustainable growth had disillusioned

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business owners bankers and politicians

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who had all convinced themselves

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recessions were now a thing of the past

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and then seemingly out of nowhere the

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Great Depression happened kage's

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policies led to a significant oversight

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in America's banking system and the

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emotion-driven purchasing of Stocks by

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retail investors instigated by bernes

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had only exacerbated the extent to which

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these stock were overvalued but it also

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ensured that some of the biggest losers

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during the Great Depression would be

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workingclass Americans who until then

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were convinced that they had been

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investing in the American

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dream a wave of panic selling had erased

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half the value of the stock market and a

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quarter of America's Workforce was now

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unemployed so what did President kulage

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do to fix this mess well nothing because

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he had actually left office right before

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before the Great Depression had started

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and the new president Herbert Hoover had

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no idea how he was going to calm down

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the Furious American voters and so like

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his predecessor he hired

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bernes bernes worked to create positive

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stories about Hoover in the media but he

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also helped coordinate Hoover's response

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to the Great Depression bernes believed

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that the most important interests at

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hand were not that of the American

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citizens but that of the American

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corporations that made America Rich

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efficient and plentiful bernes persuaded

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President Hoover to create the

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Reconstruction Finance Corporation and

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the federal Farm board government

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organizations that would provide loans

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to Banks businesses and Farmers many of

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whom just happened to be Bern's clients

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despite Bern's guidance Hoover's

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response to the Great Depression was

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unsatisfactory and Americans soon became

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convinced that Hoover was an ineffective

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as the attention of the American public

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grew Franklin D Roosevelt emerged as the

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leader of the democratic

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party Roosevelt advocated for a new

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approach to government one that was more

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active and interventionalist he promised

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to help American people through the

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depression and won the 1932 election in

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a

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landslide soon after taking Office

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Roosevelt made it clear that he would be

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president of all the people including

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those at the bottom of the economic

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ladder in the working out of a great

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National

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program that seeks the primary good of

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the greater number it is true that the

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toes of some people are being stepped on

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and are going to be stepped on but these

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tolls belong to the comparative few who

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seek to retain or to gain position or

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riches or both by some Shortcut that is

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harmful to the greater good bernes

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didn't like like this as he and FDR had

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ideologically opposing views on people

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and the future of American democracy

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bernes belied that the Judgment of the

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masses couldn't be trusted the average

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man doesn't know what's right for the

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country the economy or even themselves

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and that for a democracy to function

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effectively the people must believe they

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are entrusted with power and freedom but

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in reality be guided by more aware

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leaders who could mold the desires of

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the public to align with a Clear Vision

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for the future as bernes cynically

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stated in 1928 the conscious and

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intelligent manipulation of the

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organized habits and opinions of the

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masses is an important element in

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Democratic Society those who manipulate

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this unseen mechanism of society

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constitute an invisible government which

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is the true ruling power of our country

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it is the intelligent minorities which

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need to make use of propaganda

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continuously and systematically unlike

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Bernay FDR believed human beings were

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rational and that the public could in

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fact be trusted to take an active part

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in government he believed that it was

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possible to explain his policies to

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ordinary Americans and take their

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sentiments into account to do this he

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was going to use a new American

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invention called scientific polling and

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its purpose was to offer a clear more

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objective way of understanding and

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documenting the collective consciousness

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of America their system of opinion

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polling was based on two assumptions the

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first was that the public could be

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trusted to provide answers that were

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both genuine and useful the second is

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that the government could be trusted to

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use the polls as a method for

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understanding Americans as opposed to

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persuading them in the wake of this new

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polling methodology the presidential

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approval rating was born and whether it

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was due to the polling methodology the

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government's role in institutionalizing

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this poll or FDR's genuine popularity

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the newly conceived presidential

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approval rating would go on to reaffirm

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a clear message America loved FDR's New

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Deal FDR's first New Deal focused on

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providing relief to the unemployed and

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stimulating the economy he became

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incredibly popular for looking after the

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average American and began advertising

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the policies of his second New Deal

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ahead of his re-election campaign the

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name

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please still Franklin Deeds

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right president ruselt was cheery as

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ever when he went into the booth to

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record his own vote and a few hours

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afterwards his optimism was justified

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Broadway went mad as the former

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president was returned again with the

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biggest majority ever known in American

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politics FDR promised that his second

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New Deal would establish larger social

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welfare safety nets protect the rights

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of workers to bargain Collective

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and it would establish minimum wages and

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maximum work hours this all sounded like

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a nightmare for America's corporate

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Elite who believed that Roosevelt was

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nothing short of a

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dictator the leaders of America's

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largest industries did all they could to

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Lobby against FDR and spent millions of

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dollars to try and bring his presidency

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to an end America's industries felt that

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they had to fight back and hired bernes

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to deploy large scale ideological

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Warfare against the values of the New

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Deal bernes created the National

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Association of Manufacturers a Lobby

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group that still exists to this day the

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group's members included all the major

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corporations of the United States Who

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provided bernes with the resources to

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launch propaganda campaigns explicitly

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designed to create emotional attachments

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between the public and big business

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bernes crafted a narrative that

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suggested it was the Enterprises not

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politicians who had sculpted modern

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America bernes went on to plant articles

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in leading journals like the Wall Street

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Journal which sharply criticized the new

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deal as a threat to free enterprise and

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individual liberty in 1936 the National

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Association of manufacturing introduced

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the American plan an alternative

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anti-new deal proposal which bernes

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aggressively marketed across the country

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bernes even infiltrated Hollywood

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Studios persuading film producers and

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news reels that there were greater

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profits to be made by casting the New

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Deal in a negative light films like

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mgm's Gabriel over the White House and

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Warner Brothers black Legion portrayed

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FDR as a power hungry autocrat who

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threatened American

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democracy the president of the United

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States May the rules be

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suspended I would like to dispense with

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all tape so I can answer questions

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directly while I have the floor Mr

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President there is a movement in

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Congress for your impeachment hardly the

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time for making any requests however

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small very well I shall withdraw that

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request but I would like to substitute

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another I ask you gentlemen to declare a

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state of National

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Emergency and to adjourn this Congress

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until normal conditions are

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restored

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During the period of that adjournment I

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shall assume full responsibility for the

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government I believe in democracy as

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Washington Jefferson and Lincoln

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believed in democracy and if what I plan

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to do in the name of the people makes me

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a dictator then it is a dictatorship

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based on Jefferson's definition of

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democracy in response to these campaigns

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FDR made films of his own films that

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warned the ordinary American of the

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underhanded tactics big business used to

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manipulate them and the central villain

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was not the CEOs of the companies but

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the public relations Consultants

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themselves they tried to achieve their

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Ends by working entirely behind the

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scenes corrupting and deceiving the

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public the aims of such groups may be

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either good or bad so far as the public

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interest is concerned but their methods

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are a grave danger to democratic

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institutions on three different

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occasions bernes got a call from the US

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president asking for help and now the

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office of the US president was turning

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against him bernes viewed this new

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emerging political landscape with

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skepticism he viewed FDR's

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interventionalist approach to government

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and faith in the rationality of the

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public as a direct challenge to the

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belief system that was responsible for

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America's success this ideological Rift

play12:54

set the stage for the 1939 New York

play12:57

World's Fair the fa fair was originally

play12:59

intended to celebrate scientific

play13:01

discoveries but as one of the chief

play13:03

organizers of the fair bernes was

play13:05

adamant that the fair needed to be used

play13:07

to reinvigorate an appetite for the

play13:10

American dream in his own words there's

play13:14

a growing misunderstanding and ignorance

play13:16

amongst Americans as to who America is

play13:20

disorders strikes disagreements

play13:22

cleavages of all kinds grow out of this

play13:25

lack of understanding of common

play13:27

interests and common goals the World's

play13:30

Fair celebrating 150 years of American

play13:33

progress must be both a landing stage

play13:37

and springboard bernes would base the

play13:40

fair off a vision of a Sleek modern

play13:42

future filled with exciting new

play13:44

electronic products like the television

play13:46

the fair slogan was Dawn of a new day

play13:49

and it invited everyone to come visit

play13:52

the World of Tomorrow bernes designed a

play13:54

giant exhibition he called democra City

play13:57

its main attraction was a giant white

play14:00

Dome symbolizing a future harmonized by

play14:03

capitalism and democracy in attendance

play14:06

was President

play14:08

FDR I hereby

play14:11

dedicate the World's Fair the New York

play14:15

World

play14:16

Fair of

play14:19

1939 and I declare it open to all

play14:25

mankind he opened the fair with an

play14:27

enthusiastic speech

play14:29

but no one seemed to remember it

play14:31

everyone was instead too enamored by the

play14:33

shiny promise of future Prosperity the

play14:36

fair had ushered in the fair was a

play14:39

tremendous success and Drew in over 44

play14:42

million visitors the success of the fair

play14:44

greatly revitalized the reputation of

play14:47

the public relations industry which had

play14:49

been undermined by the Great Depression

play14:50

and New Deal eras Bern's success had

play14:54

caught the eye of his next client and

play14:56

this client would be the Pinnacle of

play14:58

Bern's career and provide an opportunity

play15:02

for bernes to once again work with the

play15:05

president of the United States to

play15:07

disseminate propaganda intended to

play15:10

strengthen America's democracy following

play15:13

a surge in global coffee demand in the

play15:15

late 19th century the Guatemalan

play15:18

government dispossessed the indigenous

play15:20

population of their land and allowed

play15:22

foreign companies to purchase it two of

play15:25

the largest land owners then merged into

play15:27

the United Fruit Company

play15:29

by the year 1900 it had become the

play15:31

largest exporter of bananas in the world

play15:33

and had a monopoly over the Guatemalan

play15:35

banana trade but in addition to selling

play15:38

lots of bananas United Fruit also ruled

play15:42

over Guatemala governing through proxy

play15:45

dictatorships United Fruit controlled

play15:47

the railroads docks and communication

play15:50

systems of the country at the expense of

play15:52

the Guatemalan citizens in order to

play15:54

protect and control the lucrative banana

play15:58

trade it was known as a Banana

play16:08

Republic after the world fair United

play16:11

Fruit hired bernes to promote banana

play16:13

sales within the United States which he

play16:15

did by linking bananas to Good Health

play16:19

however Bernay warned that United fruits

play16:21

oppressive tactics over the Guatemalan

play16:23

people a key element in their banana

play16:26

Empire risked igniting public outrage in

play16:30

America bernes knew that if the American

play16:33

public learned about the harsh realities

play16:36

of corporate colonization and the dire

play16:38

working conditions behind their beloved

play16:40

bananas this would be disastrous for the

play16:43

company and the spread of capitalist

play16:45

values to ensure control over

play16:47

Guatemala's Workforce the United Fruit

play16:50

Company had been pitting racial groups

play16:52

against one another for decades American

play16:55

whites would be given the most

play16:56

prestigious jobs like managers and

play16:59

financial advisers while people of color

play17:01

worked hard labor the company made a

play17:04

rigid distinction between Hispanics and

play17:07

West Indian workers and administered

play17:09

different Privileges and punishments to

play17:11

each ethnic group if one group was

play17:14

rewarded management told them it was

play17:16

because they worked harder than the

play17:18

other group if a punishment was

play17:20

administered management told them it was

play17:22

the other group's fault this would give

play17:25

the two groups something to focus their

play17:27

anger on rather than unite against

play17:29

United

play17:31

Fruit to control the narrative in

play17:34

America United Fruit permitted bernes to

play17:36

create a front group called The Middle

play17:38

America information Bureau which

play17:41

supplied information to journalists and

play17:43

academics back in America Middle America

play17:46

was Bern's attempt to Rebrand Central

play17:48

America and reintroduce it to the

play17:50

American public as a neighboring land

play17:53

that could and should grow into

play17:55

Democratic American values let led by

play17:58

bernes the organization spun events in

play18:01

Central America through the filter of

play18:03

United fruits economic and political

play18:05

goals providing American journalists and

play18:08

opinion Leaders with United fruits

play18:10

approved context for example in the

play18:13

runup to the 1945 Guatemalan Revolution

play18:16

the Middle America information Bureau

play18:18

published a pamphlet titled every

play18:21

American has a personal stake in our

play18:23

relations with Middle America citing

play18:25

quotes from military leaders business

play18:27

executiv and government officials

play18:29

explaining the interdependence of Middle

play18:33

America and the United States but by

play18:36

1948 United Fruit shut down the middle

play18:39

America information Bureau as Thomas

play18:41

Dudley kabok United fruit's new

play18:43

president thought it was a useless waste

play18:45

of money and terminated the entire thing

play18:48

before leaving United Fruit himself the

play18:51

very next year bernes was Furious but

play18:54

stayed with the company for an annual

play18:56

fee of more than a100

play18:58

,000 about $1.3 million in today's

play19:03

terms as Guatemala's Revolution raged on

play19:06

a young Colonel named jacobo Arben

play19:09

announced he would run for president

play19:11

under a promise to take control over the

play19:13

country's resources and get rid of

play19:16

United Fruit it was a massively popular

play19:19

move but an absolute nightmare for

play19:21

United Fruit in 1953 president arbz

play19:25

began taking Guatemala's Land by force

play19:27

motiv ating United Fruit to turn towards

play19:30

bernes for an unorthodox solution and

play19:33

then a bomb went off in

play19:38

Russia in 1953 the Soviet Union

play19:41

announced that the United States no

play19:43

longer had a monopoly on the hydrogen

play19:45

bomb the fear of nuclear war and

play19:48

communism gripped the United States and

play19:50

the government was trying to tell the

play19:52

people to calm

play19:56

down president isenhower called upon

play19:59

bernes for consultation and the two had

play20:02

a secret

play20:05

meeting it's the fallacy of devoting 85%

play20:09

of one's worrying capacity to an agent

play20:11

that constitutes only about 15% of an

play20:14

atomic bomb's destroying potential Bern

play20:17

said rather than reduce the fear of

play20:19

Communism the President should actually

play20:22

encourage and manipulate people's fear

play20:24

in order to weaponize it by controlling

play20:26

the narrative and such a manner that the

play20:29

rational arguments became irrelevant the

play20:32

US would be able to more effectively

play20:34

unite America around a shared Mission

play20:37

saving America and so to achieve this

play20:41

they were going to create a fictitious

play20:43

narrative in which America and the

play20:45

American way of life were in danger and

play20:48

bernes was going to use Guatemala as a

play20:51

central villain in this Grand

play20:53

exaggeration the plan was to frame

play20:55

Guatemala's president as a communist a

play20:59

communist who was controlled by Moscow

play21:02

and devoted to bringing an end to

play21:04

American Liberties but in reality Arben

play21:09

had no relation to Moscow at all and

play21:11

wasn't even familiar with communist

play21:14

literature he was a democratically

play21:16

elected president who was now going to

play21:18

see bernes and the US government rewrite

play21:22

Guatemala's

play21:24

history President Eisenhower secretly

play21:27

agreed that it would was America's

play21:28

interest to topple the ARB Ben's

play21:30

government and so the CIA was instructed

play21:33

to pull off a coup using propaganda and

play21:36

psychological warfare to ensure that the

play21:39

defeat of the Guatemalans was inevitable

play21:42

the man in charge of the coup was a man

play21:44

named Howard hunt one of Nixon's

play21:46

Watergate

play21:47

burglars what we wanted to do was have a

play21:50

terror

play21:51

campaign uh to terrify our B

play21:54

particularly terrify his his troops much

play21:58

as the German Shuka bombers terrified

play22:01

the population of of Holland Belgium and

play22:05

and Poland at the onset of World War II

play22:08

and just rendered everybody paralyzed

play22:10

working with the United Fruit Company

play22:12

the CIA trained a rebel Army from

play22:14

Honduras and found a new leader for

play22:16

Guatemala Colonel armas meanwhile bernes

play22:20

was working to evolve the public

play22:22

perception of

play22:26

Guatemala Bernay invited a cohort of

play22:28

journalists from various notable

play22:30

newspapers on a tour of Guatemala they

play22:33

knew very little of the country or its

play22:35

politics but mes arranged for the

play22:37

journalist to meet a select group of

play22:39

Guatemalan politicians all of whom

play22:43

confirmed that arbz was indeed a

play22:46

communist controlled by Moscow this

play22:49

technique proved highly effective and

play22:51

was repeated four more

play22:53

times during one visit a violent

play22:56

anti-American demonstration broke out

play22:59

but those who worked for United Fruit

play23:01

suspected that bernes had staged the

play23:03

entire

play23:05

thing the CIA was now ready to invade

play23:08

Guatemala but the American public was

play23:10

fed a starkly different narrative

play23:12

following Bern's meeting with President

play23:15

Eisenhower major Publications like the

play23:17

New York Times the New York heral

play23:20

Tribune time Newsweek and the Atlantic

play23:23

Monthly began disseminating articles

play23:26

these pieces painted a picture of a

play23:28

looming communist threat in America's

play23:34

backyard in June 1954 the CIA initiated

play23:38

the coup it was called operation PBS

play23:42

success the CIA supported a military

play23:45

faction led by Carlos armas and coupled

play23:48

this with a psychological Warfare

play23:50

campaign designed to convince

play23:52

Guatemalans of their Inevitable Defeat

play23:55

bernes played a crucial role here but

play23:57

becoming the main information source for

play24:00

major news writers like the Associated

play24:02

Press United Press International and the

play24:05

international news service these Global

play24:07

agencies provided the foundational facts

play24:10

and imagery that other Publications

play24:13

around the world use to shape their

play24:15

narratives and rather have actual

play24:18

primary sources to draw

play24:20

from they had

play24:23

bernes the CIA went as far as to evoke

play24:27

nerve Wars on individuals their campaign

play24:30

entailed spreading fear and paranoia

play24:32

among Guatemalan political figures via

play24:35

the mail sending out death threats small

play24:38

wooden coffins dummy bombs and hangman

play24:40

noses all targeted to those loyal to the

play24:45

government a pivotal element of the

play24:47

psychological warfare was the voice of

play24:50

Liberation a radio station that

play24:52

broadcasted anti-communist propaganda

play24:56

urging resistance against the ARB Ben's

play24:58

government and support for Castillo Aras

play25:01

while it claimed to operate from within

play25:03

the Guatemalan jungles it was actually

play25:07

based in Miami meanwhile the US

play25:10

information agency was disseminating

play25:13

hundreds of articles based on CIA

play25:15

reports across the whole of Latin

play25:17

America reinforcing the US Viewpoint the

play25:21

CIA even convinced Allied governments to

play25:23

Showcase video footage to its people

play25:26

that casted the events in Guatemala in a

play25:28

light favorable to the US narrative per

play25:32

Bern's strategy United Fruit distributed

play25:35

favorable articles and Anonymous reports

play25:38

on Guatemala to every member of Congress

play25:41

informing them that Moscow intended to

play25:44

use Guatemala as a base where it would

play25:46

launch an attack against the US in

play25:49

Guatemala the Jacob arb's regime became

play25:52

increasingly communistic after its

play25:54

Inauguration in

play25:56

1951 Communists in the Congress and high

play25:58

governmental positions controlled major

play26:00

committees labor and farm groups and

play26:03

propaganda facilities they agitated and

play26:06

led in demonstrations against

play26:07

neighboring countries and the United

play26:10

States the CIA wished to make an example

play26:13

of Guatemala so neighboring host Nations

play26:16

heavily controlled by American

play26:18

corporations would be deterred from ever

play26:21

Uprising the CIA paid off the Guatemalan

play26:25

military so that the militia group that

play26:27

they had Source from Honduras would win

play26:29

after the victory Carlos Castillo armas

play26:32

was appointed as president of Guatemala

play26:34

where he served as a puppet of United

play26:37

Fruit Company for the rest of his term

play26:40

he returned all of the confiscated land

play26:42

to United Fruit and gave them

play26:44

preferential treatment over Guatemala's

play26:46

ports and Railways the company continued

play26:49

to influence the media of North and

play26:51

Central America to justify what they had

play26:54

done they called armos The Liberator and

play26:57

told the inspiring tale of how he freed

play27:00

Guatemala from its communist ties they

play27:03

also destroyed what was left of our

play27:05

Bond's reputation by calling him red

play27:08

jacobo further tying him to the Soviets

play27:12

a New York Times article written in 1954

play27:15

states that President Castillo Aras is

play27:18

continuing to act with the moderation

play27:21

and Common Sense and jacobo orben anyway

play27:25

is a defeated balloon hardly like to

play27:28

cause any more trouble the media praised

play27:31

armos for his good policymaking yet most

play27:35

of his policies were proposed by United

play27:38

fruit or the American

play27:40

government Colonel arbend fled the

play27:43

country and within months Vice President

play27:46

Nixon visited Guatemala to see what a

play27:48

fantastic job bernes Castillo and the

play27:52

CIA had done and a final display of

play27:55

propaganda by the United United States

play27:58

PR department Nixon was presented with

play28:01

piles of marxist literature that America

play28:04

had planted in arb's office and bedroom

play28:08

the Americans thanks to the help of

play28:10

bernes had successfully lied to everyone

play28:15

guys this is the first time in the

play28:17

history of the world that the communist

play28:20

government has been overthrown by the

play28:22

people and for that we congratulate you

play28:25

and the people of Guatemala for the

play28:27

support they have given and we are sure

play28:30

that under your leadership supported by

play28:32

the people whom I have met by the

play28:33

hundreds on my visit to Guatemala that

play28:37

Guatemala is going to enter a new era in

play28:40

which there will be prosperity for the

play28:43

people together with liberty for the

play28:46

people thank you very much for allowing

play28:49

us to see this exhibit of Communism in

play28:52

Guatemala I have some exciting news some

play28:55

very very exciting news news can you

play28:58

tell that I'm excited the team over

play29:00

economics explained is launching a new

play29:03

channel it's called context matters and

play29:05

it's done in collaboration with the

play29:07

redline podcast great podcast by the way

play29:10

if you haven't checked it out and what

play29:12

I'm perhaps most excited about is this

play29:15

new channel is dedicated to politics and

play29:18

we have some amazing videos out there

play29:21

for the launch so go check it out share

play29:24

it with all your politics junkies link

play29:26

is in bio I'm gonna be binging it in

play29:29

fact I'm gonna go binge it right

play29:32

now I'm probably GNA start with the

play29:34

North Korea episode that that looked

play29:37

like a good episode but then again us

play29:39

dictator episode that that also looks

play29:41

like a pretty good episode go check it

play29:44

out context matters I will see you guys

play29:48

next time

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الوسوم ذات الصلة
PropagandaPublic RelationsAmerican DemocracyEdward BernaysGreat DepressionCorporate InfluencePolitical ManipulationMedia ControlEconomic PoliciesSocial EngineeringHistorical Analysis
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