Transcript Ch. 16: The New Deal (1933-1941)

Ch. 16: The New Deal
(1933-1941)
Section 1: Forging a New Deal

FDR campaigned and took office on the promise of
offering the country a “new deal” between the citizens
and their government. A deal in which the government
responded to citizens needs.
Restoring Hope



Both FDR and Eleanor exuded
optimism.
In his inaugural address, FDR
stated that “the only thing we
have to fear is fear itself.”
Eleanor went to visit the
angry Bonus Army and when
she left they thanked her and
wished her good luck.
Stabilizing Financial Institutions


FDR took quickly passed
emergency programs within just
his first 100 days of office.
The Emergency Banking Actauthorized government to inspect
banks.
– Most banks were deemed secure and
reopened.

Passed Glass-Steagall Banking Act
of 1933
– Established the Federal Deposit
Insurance Corporation (FDIC), which
insures bank deposits.
Stock Market Regulation

Congress passed the Federal Securities
Act.
– Required companies to provide information
about their finances if selling shares to public.

FDR took the country off the gold
standard, which caused inflation, thus
raising the prices of farm products and
devalued debt.
Relief and Job Creation: FERA


To provide relief for those in need,
Congress passed the Federal
Emergency Relief Administration
(FERA).
To put people to work, the FERA
started numerous public works
programs.
– Civil Works Administration (CWA)
 Gave unemployed people work
building or improving roads, parks,
airports, and other facilities.
 Employed 4 million people
Civilian Conservation Corps (CCC)
 Gave 2.5 million young, unmarried men work
maintaining forests, beaches, and parks.
 Earned only $30/month but lived in camps free of
charge and received food, medicine, and job training.
Regulating the Economy



The National Recovery
Administration (NRA) was
established to regulate
industry.
The NRA regulated wages,
working conditions,
production, prices, and set
minimum wage.
Gave organized labor
increased bargaining rights.
Public Works Administration (PWA)

The Public Works
Administration (PWA) was
founded to offer
employment and build large
federal projects.
– Grand Coulee Dam in
Washington State
– NYC’s Triborough Bridge
– Connecter from Key West to
mainland Florida.
Assisting Homeowners and Farmers
The Home Owners’ Loan
Corporation (HOLC)
refinanced mortgages to
make payments more
manageable.
 The Agricultural
Adjustment Administration
(AAA) raised farm prices
through subsidies,
government financial aid.
 AAA paid farmers NOT to
raise certain crops, to
reduce supply and raise
prices.

Tennessee Valley Authority (TVA)




Aided an undeveloped part of the country, the Tennessee and
Appalachia region.
Reactivated and improved a hydroelectric plant started during WWI.
The TVA provided electric power, flood control, and recreational
opportunities to the entire Tennessee River valley.
Not only provided jobs, but helped develop the entire region.
Key Players in the New Deal



Roosevelt leaned on his “brain
trust”, a group of intellectuals who
helped develop policies.
FDR appointed the first ever
woman to a Cabinet post, Frances
Perkins (Secretary of Labor).
African American, Mary McLeod
Bethune, held the highest position
in government for an AA to that
point, as director of the Division of
Negro Affairs, a part of the
National Youth Administration.
Eleanor Roosevelt



Eleanor was integral to
FDR’s early success.
Due to his secret handicap,
Eleanor often traveled and
provided a public presence
when FDR could not.
She pushed social limits
– Once, in the South, she sat in
the center aisle separating
blacks and whites in an
auditorium, protesting Jim
Crow segregation laws.
Early Results


By 1934, it was evident that most
people were supportive of the
New Deal and FDR’s attempts at
change, though the new
programs failed to bring
significant change.
Some people criticized the New
Deal as giving the President new,
unregulated and unwarranted
power.
Second New Deal
Midterm elections of 1934 showed strong
support for FDR.
 In 1935, he launched a new, even bolder
series of legislation and programs.
 This became known as the Second New
Deal, and it further intensified the changes
of the first New Deal.

Works Progress Administration
(WPA)


Set up in 1935, lasted 8 years and provided work for 8
million people.
Built tens of thousands of schools, hospitals,
playgrounds, etc.
Rural Electrification



Founded the Rural Electrification Administration (REA)
Attempted to extend power lines to rural farmers and
homeowners.
The REA brought power to 98 percent of U.S. farms.
Labor Legislation
Congress passed the Wagner Act,
after New York Senator Robert
Wagner.
 The Wagner Act legalized union
practices like closed shopsworkplaces open only to union
members.
 Banned employer spying and
blacklisting of union employees.
 The Act set up the National Labor
Relations Board (NLRB) to reinforce
the laws.

Social Security
Congress passed the Social
Security Act, which
established the Social
Security system.
 Provided regular payments
to the following…

– everyone over 65 years old
– Unemployed
– dependent children, the
blind, and the disabled
1936 Election



Although FDR was expected to win, he shocked the world
with the margin of his victory.
Won every state but Vermont and Maine, won 523-8.
His popularity demonstrated Americans’ support for the
New Deal’s responsiveness to need.
Section 2: The New Deal’s Critics

Those who benefited from the New Deal believed FDR to
be a hero. Others thought the New Deal either went too
far, or not far enough.
New Deal Does Too Little
Some people thought that the New Deal
didn’t do enough to help suffering
Americans.
 For example, the new minimum wage set
at 25 cents an hour was lower than most
employees made anyway.

Then v. Now:
Government not doing enough

Then- FDR critics
– Unemployment still high
– Government should increase
business regulation
– Minimum wage too low
– No opportunities for women or
African Americans

Now: Obama critics
– Unemployment still high
– Not enough public work
projects to put people to work
– Not enough stimulus money
– Healthcare reform not drastic
enough
Women
The New Deal disproportionately benefited men more than
women.
 NRA codes allowed lower wages for women’s work in
many cases.
 In relief programs, men and boys received preference.
 Jobs went to male “heads of families”.

African Americans
Federal relief programs in
the South reinforced
segregation.
 Kept out of skilled jobson
dam and electric projects.
 Received lower pay for doing
the same work.
 With jobs scare and
discrimination strong, finding
work became exceptionally
difficult for African
Americans.

New Deal Does Too Much
Other critics believed that the New Deal
did too much.
 Believed FDR was becoming too powerful.
 Opposed the expanded power of the
Federal Government.

– Thought public works programs were
socialistic.

FDR raised taxes on the rich.
American Liberty League



In 1934, American Liberty
League was founded to
oppose the New Deal.
Led by former Democratic
presidential candidate, Alfred
E. Smith.
The league charged the New
Deal with limiting individual
freedom in an “unAmerican”, communist
leaning fashion.
Father Coughlin




Father Charles E. Coughlin
used the radio to reach an
audience of 10 million people
by 1934.
A dynamic, passionate speaker,
the “Radio Priest” first
supported the New Deal, then
vehemently attacked it.
By the end of the 1930s,
Coughlin was issuing openly
anti-Jewish statements and
praised Adolf Hitler and Benito
Mussolini, and lost much of his
support.
In 1942, Roman Catholic
officials ordered him to stop his
show.
Huey Long: The Kingfish





Powerful, revolutionary, and
controversial figure in Louisiana
politics.
Long grew up in poverty, became
the Louisiana governor in 1928
and a U.S. senator in 1932.
Forcefully advanced his agenda
to redistribute wealth.
Extremely popular among the
lower class.
Feared and criticized by many for
his dictatorial tendencies and
power.
Huey Long: The Kingfish



Developed a program
called Share-Our-Wealth in
which government would
redistribute wealth with
steep progressive taxes.
Long was a democrat, but
an opponent to FDR’s New
Deal, believed it wasn’t
radical enough.
Long was considering a run
for presidency when he
was assassinated in 1935.
Modern-Day Critics

Today, the New Deal is
generally perceived to
have successfully lifted
the country out of
Depression, but some
critics view it as a
negative turning point for
the country’s government.
Modern Criticisms




Expanded the power, size,
and role of Federal
Government
Threatened American
principles of free enterprise
(laissez-faire)
Created “make work” jobs
instead of letting the free
market determine work needs
Relied on deficit spending;
increased National Debt
Then v. Now
Government Doing Too Much

Then: FDR critics
– Expanded government &
socialistic programs (public
works programs, social
security program)
– Too much government
regulation of business
– Raising taxes on rich
– Deficit spending

Now: Obama critics
– Expanded government &
socialistic programs (stimulus
package, health care)
– Too much government
regulation in business
– Raising taxes on rich
– Deficit spending
Comparisons
Court-Packing



Roosevelt also received
criticism for attempting to
“pack” the Supreme Court
with judges supportive of
the New Deal.
The Constitution doesn’t
specify the number of
Supreme Court justices.
Since 1869, there had
always been nine
justices.
Court-Packing




FDR received some early
opposition from the nine
Supreme Court justices.
He proposed adding six
additional members to the
Supreme Court, one per justice
over 70 years old, to lighten
their load.
His intention was to “pack” the
Court with judges supportive
of the New Deal.
He received harsh criticism
from both sides and withdrew
his reform bill.
Court-Packing
Section 3: Last Days of the New
Deal
Recession of 1937
After a period of temporary improvement,
the economy collapsed again in 1937.
 In attempt to balance the budget…

– FDR cut back government spending on
programs that provided work for Americans
– Raised taxes

Both these actions reduced money
circulation and sent the economy into
recession.
Unions Triumph
The 1935 Wagner Act made union
membership more attractive.
 Membership rose from 3 million in 1933 to
10.5 million in 1941.

New Labor Organization




The American Federation of Labor (AFL) had done little to attract new
members.
John L. Lewis helped create a Committee for Industrial Organization
(CIO) within the AFL.
AFL didn’t support the CIO, which recruited unskilled industrial
workers.
The AFL suspended the CIO in 1936, they changed their name to the
Congress of Industrial Unions and soon had more than 4 million
members.
– John L. Lewis served as president.
Strikes


The Wagner Act legalized collective bargaining, leading to
new union demands and strikes.
The Congress of Industrial Organizations used a new
strike method
– Sit-down strikes: workers refused to work but didn’t leave the
building, preventing the company from hiring “scabs”, non-union
replacement workers.
GM Sit-down strike




Strikers occupied General Motor’s
main plants in Flint, Michigan.
GM turned off the heat, blocked
external food supplies, and called
in police to break up outside
picketers and violence erupted.
Wives of the strikers organized
food deliveries and formed a
Women’s Emergency Brigade to
continue picketing outside.
Government did not break up the
strike and eventually GM gave in.
New Deal Cultural Legacies:
Literature



The Good Earth, by Pearl Buck (1931)
– A book about peasant struggle in China
The Grapes of Wrath, by John Steinbeck (1939)
– Dust Bowl victims who travel to California in search of a better
life
Let Us Now Praise Famous Men (1941)
– James Agee and Walker Evans of Fortune magazine Lived
among Alabama sharecroppers and wrote of their experiences
Radio
Radio was increasingly
popular
 “soap operas” appear,
named after the soap
companies that sponsor
them.
 Short, 15-minute stories
that provoke strong
emotions.

“Fireside Chats”

FDR’s attempt to restore Americans’ faith in the
economy and government.
Movies



Movies presented an escape
from hard times for those who
could afford them at all.
Drive-in theaters introduced in
1933
Mr. Smith Goes to Washington
(1939)
– A common man overcomes the
corrupt, entrenched political
system in Washington

The Wizard of Oz (1939)
– Walt Disney begins releasing
cartoons.
WPA and the Arts



FDR believed the arts to be not
luxuries, but essential to
human flourishing.
He earmarked WPA funds to
support unemployed artists,
musicians, historians, theater
people, and writers.
Federal Writers’ Project
– Assisted more than 6,000 writers

Federal Music Project
– Organized community orchestras
and free lessons
Federal Art Project

Employed artists to produce 2,000 murals,
100,000 paintings, and 17,000 sculptures
Lasting Achievements

While the New Deal era is considered to end with
America’s entrance into WWII, the New Deal left
significant, lasting influence on the U.S. identity.
Public Works and Federal Agencies
Public works programs built much of our
infrastructure today; roads, bridges, dams,
tunnels, and hospitals remain.
 Key agencies remain

– The Federal Deposit Insurance Company
(FDIC)
– Securities and Exchange Commission (SEC)
Social Security
Social Security has
become a foundation
to the U.S. economic
and retirement
system.
 Largest social welfare
program in the U.S.
 Has undergone
significant revisions,
but the concept
remains the same.

Legacy of Hope
Above all, the New
Deal restored the
confidence of many
Americans in the
country and their
government.
 FDR represented
someone who cared
about people’s
individual needs.
