The New DealThe New DealGet the flash cards ready. Why? Get the flash cards ready. Why?

Because FDR passed signed more Because FDR passed signed more bills into law than any other president bills into law than any other president

in history. The FDR Era would in history. The FDR Era would become known as the “New Deal” become known as the “New Deal”

people began looking to the people began looking to the government for a plan of action to government for a plan of action to

helping ease their economic woes. helping ease their economic woes.

THE NEW DEALTHE NEW DEAL

Siyang’s FAVORITE CHAPTER, Siyang’s FAVORITE CHAPTER, ever!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!ever!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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I. Launching The New DealI. Launching The New Deal

charismatic (ebullient) personality charismatic (ebullient) personality • ““the only thing we have to fear is fear the only thing we have to fear is fear

itself”itself”• infectious optimisminfectious optimism

first president to make regular use first president to make regular use of the radioof the radio

• fireside chats: explained his programs fireside chats: explained his programs to the peopleto the people

• helped rebuild public confidence in the helped rebuild public confidence in the governmentgovernment

frequent press conferences, won frequent press conferences, won respect of reportersrespect of reporters

• unwritten agreement that no reporter unwritten agreement that no reporter would ever photograph him getting into would ever photograph him getting into our out of his wheelchairour out of his wheelchair

A.A. *Restoring Confidence*Restoring Confidence

fireside chatsfireside chats

*Restoring Confidence Continued*Restoring Confidence Continued

““bank holidays” and the Emergency Banking bank holidays” and the Emergency Banking ActAct

• designed to protect larger banks from being dragged designed to protect larger banks from being dragged down by smaller onesdown by smaller ones

• ““better in the bank than under the mattress”better in the bank than under the mattress”• resulted in return of public confidence, $1billion put resulted in return of public confidence, $1billion put

into banks in the next three daysinto banks in the next three days Economy ActEconomy Act

• cutting of federal funds for employees and veteranscutting of federal funds for employees and veterans• opposition from Progressives, but passed easilyopposition from Progressives, but passed easily

In his first days, Roosevelt also signed a law In his first days, Roosevelt also signed a law allowing the purchase and sale of beer with 3.2 allowing the purchase and sale of beer with 3.2 percent alcohol… 21st Amendment would follow percent alcohol… 21st Amendment would follow in 1933in 1933

Agricultural Adjustment (May 1933) Agricultural Adjustment (May 1933)

reflected the demands of various farm organizations reflected the demands of various farm organizations as well as parts of the McNary-Haugen Billas well as parts of the McNary-Haugen Bill

most important feature was its provision for most important feature was its provision for reducing crop production to end agricultural reducing crop production to end agricultural surpluses and halt the downward spiral of farm surpluses and halt the downward spiral of farm pricesprices

““domestic allotment” producers of seven basic domestic allotment” producers of seven basic commodities work with gov’t to set prices and commodities work with gov’t to set prices and growth volumegrowth volume

Agricultural Adjustment Administration (AAA)Agricultural Adjustment Administration (AAA) In a society plagued by want, “surpluses” were In a society plagued by want, “surpluses” were

being destroyedbeing destroyed

Agricultural Adjustment ContinuedAgricultural Adjustment Continued ResultsResults

• Farm economy came out of Farm economy came out of the 1930s more stable than the 1930s more stable than beforebefore

• Some farmers lose landSome farmers lose land• Supreme Court strikes Supreme Court strikes

down gov’t right to limit down gov’t right to limit productionproduction

Soil Conservation and Soil Conservation and Domestic Allotment ActDomestic Allotment Act

• ““conserve soil”conserve soil”• protect tenant farmers…protect tenant farmers…

make landlords pay for make landlords pay for price adjustmentsprice adjustments

• largely evadedlargely evaded

Industrial Recovery Industrial Recovery need for anti-deflation policyneed for anti-deflation policy idea was to allow trade associations to cooperate in idea was to allow trade associations to cooperate in

stabilizing prices within their industries… antitrust stabilizing prices within their industries… antitrust laws forbade itlaws forbade it

Hoover was against this, Roosevelt was more Hoover was against this, Roosevelt was more receptivereceptive

Trade off was that business people had to be more Trade off was that business people had to be more receptive to laborreceptive to labor

• right to organizeright to organize• bargain collectively through unionsbargain collectively through unions

need to ensure that consumer buying power would need to ensure that consumer buying power would not lag behind… the Roosevelt administration not lag behind… the Roosevelt administration created a major public works programcreated a major public works program

Industrial Recovery ContinuedIndustrial Recovery Continued National Industrial Recovery ActNational Industrial Recovery Act

• Roosevelt called it “the most important and far reaching Roosevelt called it “the most important and far reaching legislation ever enacted by the American Congresslegislation ever enacted by the American Congress

• Business people hailed it as a new beginning of an era of Business people hailed it as a new beginning of an era of cooperation between government and businesscooperation between government and business

• Labor leaders praised it as a “Magna Carta” for trade unionsLabor leaders praised it as a “Magna Carta” for trade unions At the center of the act was the National Recovery At the center of the act was the National Recovery

Administration (NRA)Administration (NRA)• Hugh Johnson – successful businessman and retired general… Hugh Johnson – successful businessman and retired general…

envisioned himself as an evangelist whose job it was to create envisioned himself as an evangelist whose job it was to create public supportpublic support

called on every business to accept a “blanket code”: a minimum called on every business to accept a “blanket code”: a minimum wage and a maximum workweek wage and a maximum workweek

Blue Eagle “We do our part” rebuilding the economy as patrioticBlue Eagle “We do our part” rebuilding the economy as patriotic Worked to create agreements within industries to “set floors” on Worked to create agreements within industries to “set floors” on

wages and priceswages and prices

The Troubled NRAThe Troubled NRA

entire effort ultimately failedentire effort ultimately failed• codes were not written wellcodes were not written well• hard to enforce hard to enforce

businesses often raised floors on businesses often raised floors on products higher than they needed toproducts higher than they needed to

NIR Act promised workers right to NIR Act promised workers right to unionized, but no enforcement unionized, but no enforcement mechanismsmechanisms

Public Works Administration (PWA) Public Works Administration (PWA) only gradually allowed the $3.3 billion only gradually allowed the $3.3 billion in public works funds to trickle out… in public works funds to trickle out… not until 1938 was it releasing an not until 1938 was it releasing an appreciable amount of money into the appreciable amount of money into the economyeconomy

Industrial production actually declined Industrial production actually declined in the first months after it’s in the first months after it’s establishment… people became very establishment… people became very critical of the NRAcritical of the NRA

• businessmen began ignoring provisions: businessmen began ignoring provisions: cutting wages and prices, blaming the cutting wages and prices, blaming the NRA for unfair codes, and defying the NRA for unfair codes, and defying the provisions requiring them to bargain provisions requiring them to bargain with unionswith unions

• organized labor grew more hostileorganized labor grew more hostile Clarence Darrow and the national Clarence Darrow and the national

Recovery Review BoardRecovery Review Board Hugh Johnson pressured to resignHugh Johnson pressured to resign

Public WorksPublic Works

The Schechter DecisionThe Schechter Decision

Ruled that the Schechter brothers were Ruled that the Schechter brothers were within their right to sale wholesale poultry within their right to sale wholesale poultry within the statewithin the state

Ruling nullified the legislation establishing Ruling nullified the legislation establishing the NRAthe NRA

May have been a blessing for the New Deal: May have been a blessing for the New Deal: face saving way to end a failed experimentface saving way to end a failed experiment

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

reflected the success of a group of gov’t officials who believed the reflected the success of a group of gov’t officials who believed the gov’t needed to be the chief planning agent in the economygov’t needed to be the chief planning agent in the economy

progressives had been working for years to create jobs and cheap progressives had been working for years to create jobs and cheap electricity by a completing a dam project on the Tennessee River in electricity by a completing a dam project on the Tennessee River in AlabamaAlabama

opposition from electric company was too powerfulopposition from electric company was too powerful 1932 Samuel Insull collapses, causes public resentment towards 1932 Samuel Insull collapses, causes public resentment towards

private utilitiesprivate utilities Purpose of TVA was not just to build one dam, but to be the agent Purpose of TVA was not just to build one dam, but to be the agent

responsible for comprehensive redevelopment of the entire regionresponsible for comprehensive redevelopment of the entire region• development of local industriesdevelopment of local industries• supervising reforestationsupervising reforestation• helping farmers improve productivityhelping farmers improve productivity

Huge successHuge success LimitationsLimitations

• conservatives in Congress blocked most ambitious social planningconservatives in Congress blocked most ambitious social planning• region was still impoverishedregion was still impoverished• racially dividedracially divided

*Fake Smile**Fake Smile*

Currency, Banks, and the Stock MarketCurrency, Banks, and the Stock Market 1933 Roosevelt signs legislation 1933 Roosevelt signs legislation

moving the value of the dollar off moving the value of the dollar off of the gold standardof the gold standard

Federal Deposit Insurance Federal Deposit Insurance Corporation (FDIC) guaranteed all Corporation (FDIC) guaranteed all bank deposits up to $2,500bank deposits up to $2,500

Truth Securities Act… all public Truth Securities Act… all public corporations issuing new stocks corporations issuing new stocks to provide full and accurate to provide full and accurate information to the publicinformation to the public

Securities and Exchange Securities and Exchange Commission (SEC) to police the Commission (SEC) to police the stock marketstock market

The Growth of Federal Relief The Growth of Federal Relief Roosevelt did not consider direct government relief as Roosevelt did not consider direct government relief as

an important task, but saw the necessity of doing an important task, but saw the necessity of doing something to help Americans survive until the New Deal something to help Americans survive until the New Deal could revive the economycould revive the economy

Federal Emergency Relief Administration (FERA) Federal Emergency Relief Administration (FERA) provided cash grants to states to help uphold bankrupt provided cash grants to states to help uphold bankrupt agencies… agencies…

Harry Hopkins and other gov’t leaders had misgivings Harry Hopkins and other gov’t leaders had misgivings about establishing a gov’t dole program…more about establishing a gov’t dole program…more comfortable with work relief “preserves morale and comfortable with work relief “preserves morale and saves skill”saves skill”

Civil Works Administration (CWA): put 4 million people Civil Works Administration (CWA): put 4 million people to work on temporary projects of lasting value to the to work on temporary projects of lasting value to the publicpublic

• construction of roads, schools and parksconstruction of roads, schools and parks• others were little more than “make-work”others were little more than “make-work”

The Growth of Federal Relief ContinuedThe Growth of Federal Relief Continued Hopkins: idea of “pump Hopkins: idea of “pump

priming” giving money to an priming” giving money to an impoverished economyimpoverished economy

Most programs were Most programs were temporary: FERA and CWA temporary: FERA and CWA were short livedwere short lived

Roosevelt’s favorite: Civilian Roosevelt’s favorite: Civilian Conservation Corps (CCC)Conservation Corps (CCC)

• designed to provide designed to provide employment to urban young employment to urban young menmen

• advance conservation and advance conservation and reforestationreforestation

• created camps in national parks created camps in national parks and forests and in other rural and forests and in other rural and wilderness settingsand wilderness settings

Mortgage relief: The Farm Mortgage relief: The Farm Credit Administration… within Credit Administration… within two years refinanced 1/5 of two years refinanced 1/5 of all farm mortgagesall farm mortgages

II. The New Deal In TransitionII. The New Deal In Transition

Harsh conservativesHarsh conservatives• American right and corporate world irreconcilably hostile to American right and corporate world irreconcilably hostile to

the New Dealthe New Deal• Name calling: “socialist”, “reckless spending” and Name calling: “socialist”, “reckless spending” and

“economic crackpots”“economic crackpots”• Refused to say the president’s name “the man in the White Refused to say the president’s name “the man in the White

House”House” Du Pont family forms American Liberty League Du Pont family forms American Liberty League

dedicated to arousing opposition to the New Deal dedicated to arousing opposition to the New Deal and it’s “attacks” on free enterpriseand it’s “attacks” on free enterprise

• at it’s peak, membership in the organization numbered only at it’s peak, membership in the organization numbered only about 125,000about 125,000

*Attacks from the Right and the Left*Attacks from the Right and the Left

Attacks from the Right and the Left Attacks from the Right and the Left ContinuedContinued

Greatest accomplishment of the ALL: causing Greatest accomplishment of the ALL: causing Roosevelt to decide that there was no point in trying Roosevelt to decide that there was no point in trying to conciliate the business community…“forces of to conciliate the business community…“forces of organized money are unanimous in the hate for me – organized money are unanimous in the hate for me – and I welcome their hatred” SELDOM in American and I welcome their hatred” SELDOM in American history has a national leader spoken so harshly about history has a national leader spoken so harshly about the wealthythe wealthy

Communist and Socialist Party left confused: Communist and Socialist Party left confused: • they supported much of the New Deal plans, but were still they supported much of the New Deal plans, but were still

critical of Rooseveltcritical of Roosevelt• also focused on and distracted by stopping the growth of also focused on and distracted by stopping the growth of

world wide fascismworld wide fascism Popular Front: taking directions from the USSR Popular Front: taking directions from the USSR

(creepy) worked on many social causes in the United (creepy) worked on many social causes in the United States: African American rights, popular culture, States: African American rights, popular culture, literature and the advancement of the artsliterature and the advancement of the arts

Popular Protest Popular Protest Great quote “More Great quote “More menacing to the New menacing to the New Deal than either the far Deal than either the far right or the far left was a right or the far left was a group of dissident group of dissident political movements that political movements that defied easy ideological defied easy ideological classification” classification”

Some Some organizations were organizations were “crackpot”, small and “crackpot”, small and unsuccessful, but three unsuccessful, but three men would emerge to men would emerge to lead three different and lead three different and very powerful very powerful movementsmovements

Dr. Francis E. TownsendDr. Francis E. Townsend Father Charles E. Father Charles E.

CoughlinCoughlin Senator Huey P LongSenator Huey P Long

CoughlinCoughlin

LongLong

TownsendTownsend

Dr. Francis E. TownsendDr. Francis E. Townsend

• elderly California physician who lead a elderly California physician who lead a movement of 5 million members dedicated to movement of 5 million members dedicated to achieving federal pensions for the elderlyachieving federal pensions for the elderly

• the idea: when all persons over the age of 60 the idea: when all persons over the age of 60 retired, they would get a gov’t check for $200 a retired, they would get a gov’t check for $200 a monthmonth

• elderly would be able to “retire”elderly would be able to “retire”• thus freeing jobs for younger individualsthus freeing jobs for younger individuals• motivating economymotivating economy

• responsible for rallying support for Social responsible for rallying support for Social Security system which passed Congress in 1935Security system which passed Congress in 1935

Father Charles E. CoughlinFather Charles E. Coughlin

Catholic priest from a Detroit Catholic priest from a Detroit suburbsuburb

weekly radio broadcastsweekly radio broadcasts• criticized “rapacious capitalists” for criticized “rapacious capitalists” for

their abdication of social their abdication of social responsibilityresponsibility

• At first a supporter of FDR, soon At first a supporter of FDR, soon criticized him for being friendly with criticized him for being friendly with the “money powers”the “money powers”

• Largest regular radio audiences of Largest regular radio audiences of anyone in Americaanyone in America

• Huge influence over CongressHuge influence over Congress

Huey P. Long Huey P. Long elected governor in 1928, U.S. senator in 1930 “Kingfish”elected governor in 1928, U.S. senator in 1930 “Kingfish” rose to power through attacking banks, oil companies, utilities and rose to power through attacking banks, oil companies, utilities and

almost every conservative poweralmost every conservative power flamboyant personality, spectacular speakerflamboyant personality, spectacular speaker Many claimed he became a dictator with his influence over nearly Many claimed he became a dictator with his influence over nearly

every branch of southern gov’tevery branch of southern gov’t Great accomplishments: building roads, schools and hospitals and Great accomplishments: building roads, schools and hospitals and

revising tax codes, distributing free textbooks and lowering utility revising tax codes, distributing free textbooks and lowering utility ratesrates

Friends with FDR in 1932, broke from him shortly thereafter because Friends with FDR in 1932, broke from him shortly thereafter because Long wanted to redistribute the wealth, Share-Our-Wealth PlanLong wanted to redistribute the wealth, Share-Our-Wealth Plan

• claimed the gov’t could end the Depression by using the tax system to claimed the gov’t could end the Depression by using the tax system to confiscate the surplus riches of the wealthiest men and women in confiscate the surplus riches of the wealthiest men and women in AmericaAmerica

• plan guaranteed every family a “homestead” of $5,000…no basis in plan guaranteed every family a “homestead” of $5,000…no basis in economic realityeconomic reality

made no secret about his plans of running for President… made no secret about his plans of running for President… established a large following in many large states, not just in the established a large following in many large states, not just in the South but the North and the WestSouth but the North and the West

The “Second New Deal” The “Second New Deal” Spring of 1935 Roosevelt launched a series of Spring of 1935 Roosevelt launched a series of

important new programs in response to important new programs in response to growing political pressures and to the growing political pressures and to the continuing economic crisiscontinuing economic crisis

Change of emphasis in New Deal policyChange of emphasis in New Deal policy• attitude towards big businessattitude towards big business

president openly attacked corporate interestspresident openly attacked corporate interests Holding Company Act 1935 (often known as the “death Holding Company Act 1935 (often known as the “death

sentence” bill)… limited by fierce lobbying interests by utility sentence” bill)… limited by fierce lobbying interests by utility companiescompanies

• tax reformtax reform ““soak the rich”soak the rich” designed to undercut Huey Long’s “Share-Our-Wealth”designed to undercut Huey Long’s “Share-Our-Wealth” more important symbolically than economicallymore important symbolically than economically

The Wagner Act 1935The Wagner Act 1935 National Labor Relations ActNational Labor Relations Act provided workers with more provided workers with more

federal protection than Section federal protection than Section 7(a) of NIRA7(a) of NIRA

provided a crucial enforcement provided a crucial enforcement mechanism: National Labor mechanism: National Labor Relations Board (NLRB) which Relations Board (NLRB) which would have power to compel would have power to compel employers to recognize and employers to recognize and bargain with legitimate unionsbargain with legitimate unions

President not happy, but signed President not happy, but signed it… realized his own political it… realized his own political future would rest in the hands future would rest in the hands of labor workersof labor workers

Labor Militancy Labor Militancy Trade union was one of the most power political forces in Trade union was one of the most power political forces in

America during the 1930sAmerica during the 1930s• government efforts to enhance powergovernment efforts to enhance power• increased militancyincreased militancy

During 1930s powers that had suppressed labor grew During 1930s powers that had suppressed labor grew weakensweakens

• business leaders lost ability to control government policiesbusiness leaders lost ability to control government policies• Wagner ActWagner Act

Conservative unions challenged by new more militant unionsConservative unions challenged by new more militant unions Once Wagner act became law, labor leaders began fighting for more Once Wagner act became law, labor leaders began fighting for more

effective forms of legal organizationeffective forms of legal organization

The Labor Schism The Labor Schism William Green, head of AFL remained committed to idea of William Green, head of AFL remained committed to idea of

craft union, that is organizing workers on the basis of their skillscraft union, that is organizing workers on the basis of their skills During 1930s new idea: industrial unionism, all workers in a During 1930s new idea: industrial unionism, all workers in a

particular industry organized into a single unionparticular industry organized into a single union Friction between two unionsFriction between two unions

• a. John L. Lewis advocate of industrial unionsa. John L. Lewis advocate of industrial unions• b.      Walks out on AFL starts the Committee of Industrial b.      Walks out on AFL starts the Committee of Industrial

OrganizationOrganization• c. Still officially part of the AFL… but then kicked out of AFLc. Still officially part of the AFL… but then kicked out of AFL• d.      Becomes Congress of Industrial Organizations (CIO) and is d.      Becomes Congress of Industrial Organizations (CIO) and is

designed to rival AFLdesigned to rival AFL Division weakened the labor movement, but freed union Division weakened the labor movement, but freed union

members from restrictive rules of the AFLmembers from restrictive rules of the AFL• a. CIO more receptive to women and blacks than the AFLa. CIO more receptive to women and blacks than the AFL• b.      organized areas of industry that had never been organized b.      organized areas of industry that had never been organized

beforebefore

Organizing BattlesOrganizing Battles Auto IndustryAuto Industry

• United Auto Workers (UAW)United Auto Workers (UAW)• The sit-down strike: simply sitting down and refusing to work or to leaveThe sit-down strike: simply sitting down and refusing to work or to leave• By Feb. 1937 strikes spread to 17 GM plantsBy Feb. 1937 strikes spread to 17 GM plants• Gov. Frank Murphy and President Roosevelt refused to comply with GM’s Gov. Frank Murphy and President Roosevelt refused to comply with GM’s

request to put down the strike forcibly… GM forced to yield to workers’ request to put down the strike forcibly… GM forced to yield to workers’ demandsdemands

Steel IndustrySteel Industry• Steel Worker’s Organization began a major drive in 1936 involving Steel Worker’s Organization began a major drive in 1936 involving

thousands of workers and frequent, often bitter, strikesthousands of workers and frequent, often bitter, strikes• Male and female involvementMale and female involvement• In March of 1937, United States Steel recognized the union rather than risk In March of 1937, United States Steel recognized the union rather than risk

a costly strike on the verge of recovery from the Depressiona costly strike on the verge of recovery from the Depression• Memorial Day Massacre, protest picnic turns bloodyMemorial Day Massacre, protest picnic turns bloody• Harsh tactics by “Little Steel” successful and breaking strikesHarsh tactics by “Little Steel” successful and breaking strikes

In 1937 there were 4,720 strikes, over 80% of them settled by the In 1937 there were 4,720 strikes, over 80% of them settled by the unionsunions

• In 1932 there were 3,000,000 workers in unions with collective bargainingIn 1932 there were 3,000,000 workers in unions with collective bargaining• In 1937 there were 8,000,000In 1937 there were 8,000,000• In 1941 there were 10,000,000In 1941 there were 10,000,000

Social Social SecuritySecurity

Secretary of Labor Frances Perkins: Secretary of Labor Frances Perkins: lobbying for federally funded social lobbying for federally funded social insurance for the elderly and unemployedinsurance for the elderly and unemployed

1935 Social Security Act established 1935 Social Security Act established several distinct programsseveral distinct programs

• Elderly two types of assistanceElderly two types of assistance Destitute could receive up to $15 a month Destitute could receive up to $15 a month

assistanceassistance Federal pension system… but many excludedFederal pension system… but many excluded

• Unemployment InsuranceUnemployment Insurance made possible for workers who were laid off made possible for workers who were laid off

from their jobs to receive gov’t assistance for a from their jobs to receive gov’t assistance for a limited period of time… employers had to pay limited period of time… employers had to pay into itinto it

also provided aid to handicapped and also provided aid to handicapped and dependent childrendependent children

• Original intention was “unemployment Original intention was “unemployment insurance” not “welfare” intentions would shift insurance” not “welfare” intentions would shift and change over the yearsand change over the years Aid to Dependent Children = Aid to Families Aid to Dependent Children = Aid to Families

with Dependent Childrenwith Dependent Children• 1935 Social Security Act, regardless of 1935 Social Security Act, regardless of

intentions, was the most important single intentions, was the most important single piece of social welfare legislation in American piece of social welfare legislation in American historyhistory

New Directions in ReliefNew Directions in Relief Long term goals, but immediate needsLong term goals, but immediate needs Works Progress AdministrationWorks Progress Administration

• established a system of work relief for the unemployedestablished a system of work relief for the unemployed• much bigger than earlier agencies with a budget of $5 billionmuch bigger than earlier agencies with a budget of $5 billion

Director Harry Hopkins kept an average of 2.1 million workers employed Director Harry Hopkins kept an average of 2.1 million workers employed between 1935 and 1941between 1935 and 1941

Agency was responsible for renovating 110,000 public buildings and moreAgency was responsible for renovating 110,000 public buildings and more Provided incomes to workers who would have been otherwise unemployed and Provided incomes to workers who would have been otherwise unemployed and

also allowed these workers to put money back into the economyalso allowed these workers to put money back into the economy Other areas than labor…Other areas than labor…

• writers: Federal Writers Projectwriters: Federal Writers Project• artists: Federal Arts Projectartists: Federal Arts Project• musicians: Federal Music Projectmusicians: Federal Music Project• thespians: Federal Theater Projectthespians: Federal Theater Project• Wagner: United States Housing Authority… provided/constructed homes for the poorWagner: United States Housing Authority… provided/constructed homes for the poor

Did not provide jobs for women… principal government aid to women was not Did not provide jobs for women… principal government aid to women was not work relief but cash assistance… ironic because millions of women were work relief but cash assistance… ironic because millions of women were already employed by the 1930s and millions of women  lived outside the already employed by the 1930s and millions of women  lived outside the framework of the conventional family and depended on their own earnings for framework of the conventional family and depended on their own earnings for survival.survival.

The 1936 “Referendum” The 1936 “Referendum”

By mid 1936 Roosevelt’s reelection was virtually certainBy mid 1936 Roosevelt’s reelection was virtually certain Republicans powerless: lack of support in public and Republicans powerless: lack of support in public and

weak candidateweak candidate Huey Long assassinated in Louisiana in September Huey Long assassinated in Louisiana in September

19351935 Townsend, Coughlin and Gerald Smith form the Union Townsend, Coughlin and Gerald Smith form the Union

PartyParty• weak candidateweak candidate• too many divisionstoo many divisions

Greatest landslide in election history to that pointGreatest landslide in election history to that point Democrats extend their political base: farmers, urban Democrats extend their political base: farmers, urban

working class, black communities, and progressivesworking class, black communities, and progressives

III. The New Deal in DisarrayIII. The New Deal in DisarrayA.The Court FightA.The Court Fight

Roosevelt becomes convinced that all serious attempt at reform Roosevelt becomes convinced that all serious attempt at reform would continue to be blocked by the courts… saw election results would continue to be blocked by the courts… saw election results as giving him the power for overhaulas giving him the power for overhaul

1937 without informing Congress, Roosevelt proposes plan for 1937 without informing Congress, Roosevelt proposes plan for replacing “overworked” justices and adding as many as six justices replacing “overworked” justices and adding as many as six justices to the Supreme Courtto the Supreme Court

AngerAnger• a. Conservatives outraged by “Court-packing plan”a. Conservatives outraged by “Court-packing plan”• b.      Democrats disturbed by Roosevelt’s hunger for powerb.      Democrats disturbed by Roosevelt’s hunger for power

Congress ultimately voted down Roosevelt’s plan… mainly Congress ultimately voted down Roosevelt’s plan… mainly because the Supreme Court began to change their mind on some because the Supreme Court began to change their mind on some rulings… became more liberalrulings… became more liberal

Victory because the Court was no longer an obstacle for FDRVictory because the Court was no longer an obstacle for FDR Defeat because it left lasting effect on the administration… South Defeat because it left lasting effect on the administration… South

would band to vote down Roosevelt’s planswould band to vote down Roosevelt’s plans

Other SetbacksOther Setbacks President proposed a President proposed a

plan to extend plan to extend presidential powers presidential powers over the federal over the federal bureaucracy… lost due bureaucracy… lost due to southern allianceto southern alliance

Roosevelt tries Roosevelt tries campaign against campaign against southern senators southern senators within the Democratic within the Democratic primary contests… primary contests… looses all five looses all five primaries… all five primaries… all five Senators come back to Senators come back to Congress angry at Congress angry at RooseveltRoosevelt

Retrenchment and RecessionRetrenchment and Recession National Income in 1932 was $40 billion… but by summer of 1937 national National Income in 1932 was $40 billion… but by summer of 1937 national

income had risen to nearly $72 billionincome had risen to nearly $72 billion Economists now believed the major problem was no longer depression but Economists now believed the major problem was no longer depression but

inflation… FDR worked to balance the budget… cut the WPA in half and inflation… FDR worked to balance the budget… cut the WPA in half and laid off 1.5 million relief workerslaid off 1.5 million relief workers

A few weeks later the fragile boom collapsed… economic conditions A few weeks later the fragile boom collapsed… economic conditions quickly deteriorated to situations almost as bad as the bleak days of 1932 quickly deteriorated to situations almost as bad as the bleak days of 1932 and 1933and 1933

Theories for causeTheories for cause• Roosevelt and other Democrats firmly believed recession was caused due to a Roosevelt and other Democrats firmly believed recession was caused due to a

lack in gov’t spending… FDR sends an emergency $5 billion dollar spending bill lack in gov’t spending… FDR sends an emergency $5 billion dollar spending bill to Congress for approvalto Congress for approval

• A group of younger liberals believes the recession was caused as a result of A group of younger liberals believes the recession was caused as a result of excessively concentrated corporate power… wanted the president to attack excessively concentrated corporate power… wanted the president to attack monopolies… and FDR doesmonopolies… and FDR does Temporary National Economic Committee: Purpose to investigate impacts of Temporary National Economic Committee: Purpose to investigate impacts of

monopolies on the economymonopolies on the economy Nominates new head of Justice Department: Thurman Arnold… very controversial Nominates new head of Justice Department: Thurman Arnold… very controversial

leaderleader Another Big One: Fair Labor Standards ActAnother Big One: Fair Labor Standards Act

• established a national minimum wage and mandated forty-hour work weekestablished a national minimum wage and mandated forty-hour work week New Deal starts being pushed asideNew Deal starts being pushed aside

• Congressional OppositionCongressional Opposition• Shift of focus to world eventsShift of focus to world events

IV. Limits and Legacies of The New DealIV. Limits and Legacies of The New DealA. The Idea of the “Broker State”A. The Idea of the “Broker State”

Many New Dealers dreamed of a new capitalist Many New Dealers dreamed of a new capitalist state in which gov’t and business worked together in state in which gov’t and business worked together in an ordered and harmonious economic world… an ordered and harmonious economic world… didn’t happendidn’t happen

Rather, “Broker State” was created in which interest Rather, “Broker State” was created in which interest groups were strengthened enough to compete more groups were strengthened enough to compete more effectively in the national marketplaceeffectively in the national marketplace

Before 1933 there had been only one interest Before 1933 there had been only one interest group: the corporate world… not the case after the group: the corporate world… not the case after the 1930s: farmers, laborers, elderly, poor and 1930s: farmers, laborers, elderly, poor and unemployed now found a voice in gov’tunemployed now found a voice in gov’t

Greatest limitation of New Deal: it’s very modest Greatest limitation of New Deal: it’s very modest record of helping several important social groupsrecord of helping several important social groups

Although FDR administration was more Although FDR administration was more sympathetic to AA than any other gov’t sympathetic to AA than any other gov’t before him in the 20th century…before him in the 20th century…

• Eleanor Roosevelt very outspoken about Eleanor Roosevelt very outspoken about social justice for blackssocial justice for blacks

• Marian Anderson on the steps of the Lincoln Marian Anderson on the steps of the Lincoln MemorialMemorial

• ““Black Cabinet” worked to ensure that New Black Cabinet” worked to ensure that New Deal relief programs reached African Deal relief programs reached African AmericansAmericans

• in response, blacks shifted away from in response, blacks shifted away from Republican to DemocratsRepublican to Democrats

… … but there was limitations…president was but there was limitations…president was never willing to risk public support in the never willing to risk public support in the South to benefit blacksSouth to benefit blacks

• never made lynching a federal offensenever made lynching a federal offense• never endorsed efforts to ban the poll taxnever endorsed efforts to ban the poll tax• Civilian Conservation Corps established Civilian Conservation Corps established

separate campsseparate camps• NRA paid blacks less than whitesNRA paid blacks less than whites• Blacks excluded from employment in TVABlacks excluded from employment in TVA

African African Americans Americans

and the and the New DealNew Deal

The New Deal and the “Indian Problem”The New Deal and the “Indian Problem”

policies reflected long-established effort to force policies reflected long-established effort to force Natives to assimilateNatives to assimilate

Senator Wheeler “What we are trying to do is get rid of Senator Wheeler “What we are trying to do is get rid of the Indian problem rather than add to it.”the Indian problem rather than add to it.”

John Collier, Head of Indian AffairsJohn Collier, Head of Indian Affairs• former social workerformer social worker• influenced by anthropologists: cultural relativisminfluenced by anthropologists: cultural relativism• promoted legislation that would reverse pressures on Native promoted legislation that would reverse pressures on Native

Americans to assimilate and would allow them to live in Americans to assimilate and would allow them to live in traditional Native waystraditional Native ways

Indian Reorganization Act 1934Indian Reorganization Act 1934• restored tribes right to own land collectivelyrestored tribes right to own land collectively• tribal land would increase by nearly 4 million acres within 13 tribal land would increase by nearly 4 million acres within 13

yearsyears Still poor and on bad landStill poor and on bad land

Women and the New Deal Women and the New Deal New Deal not hostile to feminist aspirationsNew Deal not hostile to feminist aspirations

• first female cabinet member in the nation’s history: Frances first female cabinet member in the nation’s history: Frances PerkinsPerkins

• 100 women to positions at lower levels of federal gov’t100 women to positions at lower levels of federal gov’t• ELEANOR ROOSEVELT: committed advocate of women’s ELEANOR ROOSEVELT: committed advocate of women’s

rights and humanitarian causesrights and humanitarian causes … … but it didn’t do much to advance women eitherbut it didn’t do much to advance women either

• New Deal women had debate over what their role should New Deal women had debate over what their role should bebe

• Social Security Act of 1935: separated men and women … Social Security Act of 1935: separated men and women … and F. Perkins was on the committee that wrote itand F. Perkins was on the committee that wrote it

• New Deal promoted the philosophy that during hard times New Deal promoted the philosophy that during hard times women should withdraw from the workplace to open up women should withdraw from the workplace to open up jobs for menjobs for men

The New Deal in the West and The SouthThe New Deal in the West and The South

The New Deal and the National EconomyThe New Deal and the National Economy

The New Deal and American PoliticsThe New Deal and American Politics

amazing enhancement of federal power… wasn’t amazing enhancement of federal power… wasn’t always clear prior to FDR which was stronger state always clear prior to FDR which was stronger state or federal gov’tor federal gov’t

increased the power of the presidency as the increased the power of the presidency as the preeminent center of authority with in the federal preeminent center of authority with in the federal government… never again would Congress have government… never again would Congress have the same authority as it did in the years before the the same authority as it did in the years before the New DealNew Deal

Profound impact on how people defined themselves Profound impact on how people defined themselves politicallypolitically

• Democratic party reborn and rebuiltDemocratic party reborn and rebuilt Increased Americans expectations in their role of Increased Americans expectations in their role of

governmentgovernment