Americans warmed up to the idea of Socialism during Franklin Delano Roosevelt’s presidency. FDR was elected in the midst of the Great Depression, and it was clear that social programming was essential to the lives of millions of Americans.
FDR’s New Deal increased federal unemployment benefits and further regulated business practice, resulting in fairer wages, maximum work hours, and more. Sound familiar? The New Deal also passed the Glass-Steagall Act of 1933, which separated commercial and investment banking. The Act was repealed in 1999, which many believe led to the 2008 recession.
In the mid-20th century, the term 'Socialist' became tarnished in the United States. Communist activity in enemy countries such as the Soviet Union, Korea, and Cuba led to a series of events called the Red Scare. There was a belief that the US would eventually be overthrown by Communists. Many who were not even affiliated with Socialism or Communism were accused of being un-American and threatened with imprisonment or deportation.
The Red Scare completely changed most American attitudes about Socialism, making it no longer associated with equality and social justice, but synonymous with war, dictators, and lack of freedom.