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

Section 1: Forging a New Section 1: Forging a New DealDeal

FDR campaigned and took office on the promise of offering FDR campaigned and took office on the promise of offering the country a “new deal” between the citizens and their the country a “new deal” between the citizens and their government. A deal in which the government responded to government. A deal in which the government responded to citizens needs.citizens needs.

Restoring HopeRestoring Hope

Both FDR and Eleanor Both FDR and Eleanor exuded optimism.exuded optimism.

In his inaugural address, In his inaugural address, FDR stated that “the only FDR stated that “the only thing we have to fear is thing we have to fear is fear itself.”fear itself.”

Eleanor went to visit the Eleanor went to visit the angry Bonus Army and angry Bonus Army and when she left they when she left they thanked her and wished thanked her and wished her good luck.her good luck.

Stabilizing Financial Stabilizing Financial InstitutionsInstitutions

FDR took quickly passed FDR took quickly passed emergency programs within just emergency programs within just his first 100 days of office.his first 100 days of office.

The Emergency Banking Act- The Emergency Banking Act- authorized government to authorized government to inspect banks.inspect banks.– Most banks were deemed secure Most banks were deemed secure

and reopened.and reopened. Passed Glass-Steagall Banking Passed Glass-Steagall Banking

Act of 1933Act of 1933– Established the Federal Deposit Established the Federal Deposit

Insurance Corporation (FDIC), which Insurance Corporation (FDIC), which insures bank deposits.insures bank deposits.

Stock Market RegulationStock Market Regulation

Congress passed the Federal Congress passed the Federal Securities Act.Securities Act.– Required companies to provide Required companies to provide

information about their finances if information about their finances if selling shares to public.selling shares to public.

FDR took the country off the gold FDR took the country off the gold standard, which caused inflation, standard, which caused inflation, thus raising the prices of farm thus raising the prices of farm products and devalued debt.products and devalued debt.

Relief and Job Creation: Relief and Job Creation: FERAFERA

To provide relief for those in need, To provide relief for those in need, Congress passed the Federal Congress passed the Federal Emergency Relief Administration Emergency Relief Administration (FERA).(FERA).

To put people to work, the FERA To put people to work, the FERA started numerous public works started numerous public works programs.programs.– Civil Works Administration Civil Works Administration

(CWA)(CWA) Gave unemployed people work Gave unemployed people work

building or improving roads, building or improving roads, parks, airports, and other parks, airports, and other facilities.facilities.

Employed 4 million peopleEmployed 4 million people

Civilian Conservation Corps Civilian Conservation Corps (CCC)(CCC)

Gave 2.5 million young, unmarried men work Gave 2.5 million young, unmarried men work maintaining forests, beaches, and parks.maintaining forests, beaches, and parks.

Earned only $30/month but lived in camps free of Earned only $30/month but lived in camps free of charge and received food, medicine, and job charge and received food, medicine, and job training.training.

Regulating the EconomyRegulating the Economy

The National Recovery The National Recovery Administration (NRA) was Administration (NRA) was established to regulate established to regulate industry.industry.

The NRA regulated wages, The NRA regulated wages, working conditions, working conditions, production, prices, and set production, prices, and set minimum wage.minimum wage.

Gave organized labor Gave organized labor increased bargaining increased bargaining rights.rights.

Public Works Administration Public Works Administration (PWA)(PWA)

The Public Works The Public Works Administration (PWA) Administration (PWA) was founded to offer was founded to offer employment and build employment and build large federal projects.large federal projects.– Grand Coulee Dam in Grand Coulee Dam in

Washington StateWashington State– NYC’s Triborough BridgeNYC’s Triborough Bridge– Connecter from Key West Connecter from Key West

to mainland Florida.to mainland Florida.

Assisting Homeowners and Assisting Homeowners and FarmersFarmers

The Home Owners’ Loan The Home Owners’ Loan Corporation (HOLC) Corporation (HOLC) refinanced mortgages to refinanced mortgages to make payments more make payments more manageable.manageable.

The Agricultural The Agricultural Adjustment Administration Adjustment Administration (AAA) raised farm prices (AAA) raised farm prices through subsidies, through subsidies, government financial aid.government financial aid.

AAA paid farmers NOT to AAA paid farmers NOT to raise certain crops, to raise certain crops, to reduce supply and raise reduce supply and raise prices.prices.

Tennessee Valley Authority Tennessee Valley Authority (TVA)(TVA)

Aided an undeveloped part of the country, the Tennessee and Aided an undeveloped part of the country, the Tennessee and Appalachia region. Appalachia region.

Reactivated and improved a hydroelectric plant started during WWI.Reactivated and improved a hydroelectric plant started during WWI. The TVA provided electric power, flood control, and recreational The TVA provided electric power, flood control, and recreational

opportunities to the entire Tennessee River valley.opportunities to the entire Tennessee River valley. Not only provided jobs, but helped develop the entire region.Not only provided jobs, but helped develop the entire region.

Key Players in the New DealKey Players in the New Deal Roosevelt leaned on his “brain Roosevelt leaned on his “brain

trust”, a group of intellectuals trust”, a group of intellectuals who helped develop policies.who helped develop policies.

FDR appointed the first ever FDR appointed the first ever woman to a Cabinet post, woman to a Cabinet post, Frances Perkins (Secretary of Frances Perkins (Secretary of Labor).Labor).

African American, Mary McLeod African American, Mary McLeod Bethune, held the highest Bethune, held the highest position in government for an AA position in government for an AA to that point, as director of the to that point, as director of the Division of Negro Affairs, a part Division of Negro Affairs, a part of the National Youth of the National Youth Administration.Administration.

Eleanor RooseveltEleanor Roosevelt Eleanor was integral to Eleanor was integral to

FDR’s early success.FDR’s early success. Due to his secret Due to his secret

handicap, Eleanor often handicap, Eleanor often traveled and provided a traveled and provided a public presence when public presence when FDR could not. FDR could not.

She pushed social limitsShe pushed social limits– Once, in the South, she sat Once, in the South, she sat

in the center aisle in the center aisle separating blacks and separating blacks and whites in an auditorium, whites in an auditorium, protesting Jim Crow protesting Jim Crow segregation laws.segregation laws.

Early ResultsEarly Results

By 1934, it was evident that By 1934, it was evident that most people were supportive most people were supportive of the New Deal and FDR’s of the New Deal and FDR’s attempts at change, though attempts at change, though the new programs failed to the new programs failed to bring significant change.bring significant change.

Some people criticized the Some people criticized the New Deal as giving the New Deal as giving the President new, unregulated President new, unregulated and unwarranted power.and unwarranted power.

Second New DealSecond New Deal

Midterm elections of 1934 showed Midterm elections of 1934 showed strong support for FDR.strong support for FDR.

In 1935, he launched a new, even In 1935, he launched a new, even bolder series of legislation and bolder series of legislation and programs.programs.

This became known as the Second This became known as the Second New Deal, and it further intensified New Deal, and it further intensified the changes of the first New Deal. the changes of the first New Deal.

Works Progress Administration Works Progress Administration (WPA)(WPA)

Set up in 1935, lasted 8 years and provided work Set up in 1935, lasted 8 years and provided work for 8 million people.for 8 million people.

Built tens of thousands of schools, hospitals, Built tens of thousands of schools, hospitals, playgrounds, etc.playgrounds, etc.

Rural ElectrificationRural Electrification

Founded the Rural Electrification Administration (REA)Founded the Rural Electrification Administration (REA) Attempted to extend power lines to rural farmers and Attempted to extend power lines to rural farmers and

homeowners. homeowners. The REA brought power to 98 percent of U.S. farms.The REA brought power to 98 percent of U.S. farms.

Labor LegislationLabor Legislation Congress passed the Wagner Act, Congress passed the Wagner Act,

after New York Senator Robert after New York Senator Robert Wagner.Wagner.

The Wagner Act legalized union The Wagner Act legalized union practices like closed shops- practices like closed shops- workplaces open only to union workplaces open only to union members.members.

Banned employer spying and Banned employer spying and blacklisting of union employees. blacklisting of union employees.

The Act set up the National Labor The Act set up the National Labor Relations Board (NLRB) to Relations Board (NLRB) to reinforce the laws.reinforce the laws.

Social SecuritySocial Security Congress passed the Congress passed the

Social Security Act, Social Security Act, which established the which established the Social Security system.Social Security system.

Provided regular Provided regular payments to the payments to the following…following…– everyone over 65 years everyone over 65 years

oldold– UnemployedUnemployed– dependent children, the dependent children, the

blind, and the disabledblind, and the disabled

1936 Election1936 Election

Although FDR was expected to win, he shocked the world with the Although FDR was expected to win, he shocked the world with the margin of his victory.margin of his victory.

Won every state but Vermont and Maine, won 523-8.Won every state but Vermont and Maine, won 523-8. His popularity demonstrated Americans’ support for the New Deal’s His popularity demonstrated Americans’ support for the New Deal’s

responsiveness to need.responsiveness to need.

Section 2: The New Deal’s Section 2: The New Deal’s CriticsCritics

Those who benefited from the New Deal believed Those who benefited from the New Deal believed FDR to be a hero. Others thought the New Deal FDR to be a hero. Others thought the New Deal either went too far, or not far enough.either went too far, or not far enough.

New Deal Does Too LittleNew Deal Does Too Little

Some people thought that the New Some people thought that the New Deal didn’t do enough to help Deal didn’t do enough to help suffering Americans.suffering Americans.

For example, the new minimum For example, the new minimum wage set at 25 cents an hour was wage set at 25 cents an hour was lower than most employees made lower than most employees made anyway.anyway.

Then v. Now: Then v. Now: Government not doing enoughGovernment not doing enough

Then- FDR criticsThen- FDR critics– Unemployment still highUnemployment still high– Government should Government should

increase business increase business regulationregulation

– Minimum wage too lowMinimum wage too low– No opportunities for No opportunities for

women or African women or African AmericansAmericans

Now: Obama criticsNow: Obama critics– Unemployment still highUnemployment still high– Not enough public work Not enough public work

projects to put people to projects to put people to workwork

– Not enough stimulus Not enough stimulus moneymoney

– Healthcare reform not Healthcare reform not drastic enoughdrastic enough

WomenWomen

The New Deal disproportionately benefited men more than women.The New Deal disproportionately benefited men more than women. NRA codes allowed lower wages for women’s work in many cases.NRA codes allowed lower wages for women’s work in many cases. In relief programs, men and boys received preference.In relief programs, men and boys received preference. Jobs went to male “heads of families”.Jobs went to male “heads of families”.

African AmericansAfrican Americans Federal relief programs in Federal relief programs in

the South reinforced the South reinforced segregation.segregation.

Kept out of skilled jobson Kept out of skilled jobson dam and electric dam and electric projects.projects.

Received lower pay for Received lower pay for doing the same work.doing the same work.

With jobs scare and With jobs scare and discrimination strong, discrimination strong, finding work became finding work became exceptionally difficult for exceptionally difficult for African Americans.African Americans.

New Deal Does Too MuchNew Deal Does Too Much

Other critics believed that the New Other critics believed that the New Deal did too much.Deal did too much.

Believed FDR was becoming too Believed FDR was becoming too powerful.powerful.

Opposed the expanded power of the Opposed the expanded power of the Federal Government.Federal Government.– Thought public works programs were Thought public works programs were

socialistic.socialistic. FDR raised taxes on the rich.FDR raised taxes on the rich.

American Liberty LeagueAmerican Liberty League In 1934, American Liberty In 1934, American Liberty

League was founded to League was founded to oppose the New Deal.oppose the New Deal.

Led by former Democratic Led by former Democratic presidential candidate, presidential candidate, Alfred E. Smith.Alfred E. Smith.

The league charged the The league charged the New Deal with limiting New Deal with limiting individual freedom in an individual freedom in an “un-American”, communist “un-American”, communist leaning fashion. leaning fashion.

Father CoughlinFather Coughlin Father Charles E. Coughlin used Father Charles E. Coughlin used

the radio to reach an audience the radio to reach an audience of 10 million people by 1934.of 10 million people by 1934.

A dynamic, passionate speaker, A dynamic, passionate speaker, the “Radio Priest” first the “Radio Priest” first supported the New Deal, then supported the New Deal, then vehemently attacked it.vehemently attacked it.

By the end of the 1930s, By the end of the 1930s, Coughlin was issuing openly Coughlin was issuing openly anti-Jewish statements and anti-Jewish statements and praised Adolf Hitler and Benito praised Adolf Hitler and Benito Mussolini, and lost much of his Mussolini, and lost much of his support.support.

In 1942, Roman Catholic In 1942, Roman Catholic officials ordered him to stop his officials ordered him to stop his show.show.

Huey Long: The KingfishHuey Long: The Kingfish Powerful, revolutionary, and Powerful, revolutionary, and

controversial figure in Louisiana controversial figure in Louisiana politics.politics.

Long grew up in poverty, became Long grew up in poverty, became the Louisiana governor in 1928 the Louisiana governor in 1928 and a U.S. senator in 1932.and a U.S. senator in 1932.

Forcefully advanced his agenda to Forcefully advanced his agenda to redistribute wealth.redistribute wealth.

Extremely popular among the Extremely popular among the lower class.lower class.

Feared and criticized by many for Feared and criticized by many for his dictatorial tendencies and his dictatorial tendencies and power.power.

Huey Long: The KingfishHuey Long: The Kingfish Developed a program Developed a program

called Share-Our-Wealth called Share-Our-Wealth in which government in which government would redistribute wealth would redistribute wealth with steep progressive with steep progressive taxes.taxes.

Long was a democrat, but Long was a democrat, but an opponent to FDR’s New an opponent to FDR’s New Deal, believed it wasn’t Deal, believed it wasn’t radical enough.radical enough.

Long was considering a Long was considering a run for presidency when run for presidency when he was assassinated in he was assassinated in 1935.1935.

Modern-Day CriticsModern-Day Critics

Today, the New Deal is Today, the New Deal is generally perceived to generally perceived to have successfully lifted have successfully lifted the country out of the country out of Depression, but some Depression, but some critics view it as a critics view it as a negative turning point negative turning point for the country’s for the country’s government.government.

Modern CriticismsModern Criticisms Expanded the power, size, Expanded the power, size,

and role of Federal and role of Federal GovernmentGovernment

Threatened American Threatened American principles of free principles of free enterprise (laissez-faire)enterprise (laissez-faire)

Created “make work” jobs Created “make work” jobs instead of letting the free instead of letting the free market determine work market determine work needsneeds

Relied on deficit spending; Relied on deficit spending; increased National Debtincreased National Debt

Then v. Now Then v. Now Government Doing Too MuchGovernment Doing Too Much

Then: FDR criticsThen: FDR critics– Expanded government & Expanded government &

socialistic programs socialistic programs (public works programs, (public works programs, social security program)social security program)

– Too much government Too much government regulation of businessregulation of business

– Raising taxes on richRaising taxes on rich– Deficit spendingDeficit spending

Now: Obama criticsNow: Obama critics– Expanded government & Expanded government &

socialistic programs socialistic programs (stimulus package, health (stimulus package, health care)care)

– Too much government Too much government regulation in businessregulation in business

– Raising taxes on richRaising taxes on rich– Deficit spendingDeficit spending

ComparisonsComparisons

Court-PackingCourt-Packing Roosevelt also received Roosevelt also received

criticism for attempting criticism for attempting to “pack” the Supreme to “pack” the Supreme Court with judges Court with judges supportive of the New supportive of the New Deal.Deal.

The Constitution doesn’t The Constitution doesn’t specify the number of specify the number of Supreme Court justices.Supreme Court justices.

Since 1869, there had Since 1869, there had always been nine always been nine justices.justices.

Court-PackingCourt-Packing FDR received some early FDR received some early

opposition from the nine opposition from the nine Supreme Court justices.Supreme Court justices.

He proposed adding six He proposed adding six additional members to the additional members to the Supreme Court, one per Supreme Court, one per justice over 70 years old, justice over 70 years old, to lighten their load.to lighten their load.

His intention was to “pack” His intention was to “pack” the Court with judges the Court with judges supportive of the New supportive of the New Deal.Deal.

He received harsh criticism He received harsh criticism from both sides and from both sides and withdrew his reform bill.withdrew his reform bill.

Court-PackingCourt-Packing

Section 3: Last Days of the Section 3: Last Days of the New DealNew Deal

Recession of 1937Recession of 1937

After a period of temporary After a period of temporary improvement, the economy collapsed improvement, the economy collapsed again in 1937.again in 1937.

In attempt to balance the budget…In attempt to balance the budget…– FDR cut back government spending on FDR cut back government spending on

programs that provided work for Americansprograms that provided work for Americans– Raised taxesRaised taxes

Both these actions reduced money Both these actions reduced money circulation and sent the economy into circulation and sent the economy into recession.recession.

Unions TriumphUnions Triumph

The 1935 Wagner Act made union The 1935 Wagner Act made union membership more attractive.membership more attractive.

Membership rose from 3 million in Membership rose from 3 million in 1933 to 10.5 million in 1941.1933 to 10.5 million in 1941.

New Labor OrganizationNew Labor Organization

The American Federation of Labor (AFL) had done little to attract The American Federation of Labor (AFL) had done little to attract new members.new members.

John L. Lewis helped create a Committee for Industrial Organization John L. Lewis helped create a Committee for Industrial Organization (CIO) within the AFL.(CIO) within the AFL.

AFL didn’t support the CIO, which recruited unskilled industrial AFL didn’t support the CIO, which recruited unskilled industrial workers.workers.

The AFL suspended the CIO in 1936, they changed their name to The AFL suspended the CIO in 1936, they changed their name to the Congress of Industrial Unions and soon had more than 4 million the Congress of Industrial Unions and soon had more than 4 million members.members.– John L. Lewis served as president.John L. Lewis served as president.

StrikesStrikes

The Wagner Act legalized collective bargaining, leading to new The Wagner Act legalized collective bargaining, leading to new union demands and strikes.union demands and strikes.

The Congress of Industrial Organizations used a new strike methodThe Congress of Industrial Organizations used a new strike method– Sit-down strikes: workers refused to work but didn’t leave the building, Sit-down strikes: workers refused to work but didn’t leave the building,

preventing the company from hiring “scabs”, non-union replacement workers.preventing the company from hiring “scabs”, non-union replacement workers.

GM Sit-down strikeGM Sit-down strike Strikers occupied General Strikers occupied General

Motor’s main plants in Flint, Motor’s main plants in Flint, Michigan.Michigan.

GM turned off the heat, GM turned off the heat, blocked external food blocked external food supplies, and called in police supplies, and called in police to break up outside picketers to break up outside picketers and violence erupted.and violence erupted.

Wives of the strikers Wives of the strikers organized food deliveries and organized food deliveries and formed a Women’s formed a Women’s Emergency Brigade to Emergency Brigade to continue picketing outside.continue picketing outside.

Government did not break up Government did not break up the strike and eventually GM the strike and eventually GM gave ingave in..

New Deal Cultural Legacies: New Deal Cultural Legacies: LiteratureLiterature

The Good EarthThe Good Earth, by Pearl Buck (1931), by Pearl Buck (1931)– A book about peasant struggle in ChinaA book about peasant struggle in China

The Grapes of WrathThe Grapes of Wrath, by John Steinbeck (1939), by John Steinbeck (1939)– Dust Bowl victims who travel to California in search of a Dust Bowl victims who travel to California in search of a

better lifebetter life Let Us Now Praise Famous MenLet Us Now Praise Famous Men (1941) (1941)

– James Agee and Walker Evans of James Agee and Walker Evans of FortuneFortune magazine Lived magazine Lived among Alabama sharecroppers and wrote of their among Alabama sharecroppers and wrote of their experiencesexperiences

RadioRadio

Radio was increasingly Radio was increasingly popularpopular

““soap operas” appear, soap operas” appear, named after the soap named after the soap companies that companies that sponsor them.sponsor them.

Short, 15-minute Short, 15-minute stories that provoke stories that provoke strong emotions.strong emotions.

““Fireside Chats”Fireside Chats”

FDR’s attempt to restore Americans’ faith in FDR’s attempt to restore Americans’ faith in the economy and government.the economy and government.

MoviesMovies Movies presented an escape Movies presented an escape

from hard times for those from hard times for those who could afford them at all.who could afford them at all.

Drive-in theaters introduced Drive-in theaters introduced in 1933in 1933

Mr. Smith Goes to Mr. Smith Goes to WashingtonWashington (1939) (1939)– A common man overcomes A common man overcomes

the corrupt, entrenched the corrupt, entrenched political system in Washingtonpolitical system in Washington

The Wizard of OzThe Wizard of Oz (1939) (1939)– Walt Disney begins releasing Walt Disney begins releasing

cartoons.cartoons.

WPA and the ArtsWPA and the Arts FDR believed the arts to be FDR believed the arts to be

not luxuries, but essential to not luxuries, but essential to human flourishing.human flourishing.

He earmarked WPA funds to He earmarked WPA funds to support unemployed artists, support unemployed artists, musicians, historians, theater musicians, historians, theater people, and writers.people, and writers.

Federal Writers’ ProjectFederal Writers’ Project– Assisted more than 6,000 Assisted more than 6,000

writerswriters Federal Music ProjectFederal Music Project

– Organized community Organized community orchestras and free lessonsorchestras and free lessons

Federal Art ProjectFederal Art Project

Employed artists to produce 2,000 murals, Employed artists to produce 2,000 murals, 100,000 paintings, and 17,000 sculptures100,000 paintings, and 17,000 sculptures

Lasting AchievementsLasting Achievements

While the New Deal era is considered to end with While the New Deal era is considered to end with America’s entrance into WWII, the New Deal left America’s entrance into WWII, the New Deal left significant, lasting influence on the U.S. identity.significant, lasting influence on the U.S. identity.

Public Works and Federal Public Works and Federal AgenciesAgencies

Public works programs built much of Public works programs built much of our infrastructure today; roads, our infrastructure today; roads, bridges, dams, tunnels, and hospitals bridges, dams, tunnels, and hospitals remain.remain.

Key agencies remainKey agencies remain– The Federal Deposit Insurance Company The Federal Deposit Insurance Company

(FDIC)(FDIC)– Securities and Exchange Commission Securities and Exchange Commission

(SEC)(SEC)

Social SecuritySocial Security

Social Security has Social Security has become a foundation become a foundation to the U.S. economic to the U.S. economic and retirement and retirement system.system.

Largest social welfare Largest social welfare program in the U.S.program in the U.S.

Has undergone Has undergone significant revisions, significant revisions, but the concept but the concept remains the same.remains the same.

Legacy of HopeLegacy of Hope

Above all, the New Above all, the New Deal restored the Deal restored the confidence of many confidence of many Americans in the Americans in the country and their country and their government.government.

FDR represented FDR represented someone who cared someone who cared about people’s about people’s individual needs. individual needs.