The New DealThe New Deal

(Jansson Ch 7 & 8)(Jansson Ch 7 & 8)

Dana RyanDana Ryan

Andrea BunceAndrea Bunce

JoLane BlaylockJoLane Blaylock

SW 510SW 510

Era of DenialEra of Denial

1929-19331929-1933

• Despite the Depression, most assumed economic Despite the Depression, most assumed economic growth would resumegrowth would resume

• Reconstruction Finance Corporation (RFC) passed, with Reconstruction Finance Corporation (RFC) passed, with $2 billion for projects and banks that were to encourage $2 billion for projects and banks that were to encourage economic growtheconomic growth

• Hoover felt private service agencies could take care of Hoover felt private service agencies could take care of the problems being facedthe problems being faced

• Very small group of reformers attempted to expand Very small group of reformers attempted to expand social servicessocial services

• FDR was not a liberal, but was a moderate who FDR was not a liberal, but was a moderate who supported social services, to an extentsupported social services, to an extent

• After 3 Republican presidents, country was ready to try After 3 Republican presidents, country was ready to try a Democrat and FDR won 1932 election by a landslidea Democrat and FDR won 1932 election by a landslide

• FDR was made even more powerful by his wife, FDR was made even more powerful by his wife, Eleanor, who was an avid social reformistEleanor, who was an avid social reformist

Era of Emergency ReformsEra of Emergency Reforms 1933-1935 1933-1935

• Forces that promoted major reformsForces that promoted major reforms– Working class voters who elected FDRWorking class voters who elected FDR– Horrific human suffering of the 1930sHorrific human suffering of the 1930s– Republicans & conservatives in Republicans & conservatives in

complete chaos, allowing FDR to push complete chaos, allowing FDR to push his ideas throughhis ideas through

– The legislation & programs he enacted The legislation & programs he enacted transformed the country and created transformed the country and created the welfare state we now know.the welfare state we now know.

• Forces that limited Roosevelt’s initial policy Forces that limited Roosevelt’s initial policy initiativesinitiatives– Churches, as most were extremely conservativeChurches, as most were extremely conservative– Labor leaders who were too preoccupied with Labor leaders who were too preoccupied with

their own right to organizetheir own right to organize– Democratic party that was taken over by Democratic party that was taken over by

corporate interestscorporate interests– Supreme Court rulings that nullified aspects of Supreme Court rulings that nullified aspects of

the New Dealthe New Deal– No fiscal or government institutions to carry out No fiscal or government institutions to carry out

reformsreforms– No radical movement active in the countryNo radical movement active in the country– Dissention among his own advisorsDissention among his own advisors

Emergency ReliefEmergency Relief

• 1932: Federal Emergency Relief Administration 1932: Federal Emergency Relief Administration (FERA)(FERA)

- provided funds to states for people who needed - provided funds to states for people who needed monetary helpmonetary help

- authorities had right to federalize in states who - authorities had right to federalize in states who were were mired in corruption or excessive mired in corruption or excessive patronage (was patronage (was actually done in 6 states)actually done in 6 states)

* First major welfare program in our history.* First major welfare program in our history.

• Civilian Works Administration (CWA): part of FERACivilian Works Administration (CWA): part of FERA

- used FERA monies to create public works- used FERA monies to create public works

- gave government new social welfare - gave government new social welfare responsibilitiesresponsibilities

• Civilian Conservation Corps (CCC): 1933Civilian Conservation Corps (CCC): 1933– Provided conservation work in national & Provided conservation work in national &

state parks for young menstate parks for young men– Most popular reform measure of New Most popular reform measure of New

DealDeal– Helped youth and reduced the welfare Helped youth and reduced the welfare

rollsrolls– Run by Army & Dept of InteriorRun by Army & Dept of Interior

• Works Progress Administration (WPA)Works Progress Administration (WPA)– Developed in 1933Developed in 1933– CWA thought not to have lasting CWA thought not to have lasting

economic benefits, so amended into thiseconomic benefits, so amended into this– First massive peacetime movement by First massive peacetime movement by

govt in public projectsgovt in public projects– Constructed bridges, airports, dams, & Constructed bridges, airports, dams, &

schoolsschools

Wagner-Peyser ActWagner-Peyser Act

• Passed in 1933Passed in 1933

• Federal monies used to fund Federal monies used to fund unemployment officesunemployment offices

• Offices used frequently to recruit Offices used frequently to recruit people for work in CCC, CWA, & PWApeople for work in CCC, CWA, & PWA

Reform of the Economic Reform of the Economic SystemSystem

• Federal revenue was not sufficient to cover Federal revenue was not sufficient to cover mounting costs of New Deal programsmounting costs of New Deal programs

• FDR under constant pressure to cut social FDR under constant pressure to cut social spendingspending

• National Industry Recovery Act of 1933 passed to National Industry Recovery Act of 1933 passed to convene industry leaders and agree on prices, convene industry leaders and agree on prices, establish common wages for workers, and set establish common wages for workers, and set production quotas; intended to stop cycles that production quotas; intended to stop cycles that furthered the Depression; also established the furthered the Depression; also established the National Recovery Administration (NRA)National Recovery Administration (NRA)

• NRA criticized for creating illegal monopoliesNRA criticized for creating illegal monopolies

• FDR tried to use NRA to indirectly stop child labor FDR tried to use NRA to indirectly stop child labor and to legitimize union organizationand to legitimize union organization

• NRA terminated in 1935 when Supreme Court NRA terminated in 1935 when Supreme Court declared it unconstitutionaldeclared it unconstitutional

• Agricultural Adjustment Agency (AAA) created to Agricultural Adjustment Agency (AAA) created to stop agricultural depression so that millions of stop agricultural depression so that millions of farmers wouldn’t become bankrupt; gathered farmers wouldn’t become bankrupt; gathered producers of same crops to settle the acreage producers of same crops to settle the acreage amounts to be grown and paid farmers for amounts to be grown and paid farmers for notnot planting some of their land.planting some of their land.

• AAA created ways to stop tenant farmer abuse by AAA created ways to stop tenant farmer abuse by landowners, but was unmonitored and ineffectivelandowners, but was unmonitored and ineffective

• Emergency Farm Mortgage Act & Farm Relief Act Emergency Farm Mortgage Act & Farm Relief Act were both enacted in 1933 to let govt purchase & were both enacted in 1933 to let govt purchase & refinance farm mortgagesrefinance farm mortgages

• National Housing Act of 1934 established the National Housing Act of 1934 established the Federal Home Administration (FHA), to insure Federal Home Administration (FHA), to insure mortgages so banks would be willing to refinancemortgages so banks would be willing to refinance

• Tennessee Valley Authority (TVA) of 1933 oversaw Tennessee Valley Authority (TVA) of 1933 oversaw development of dams and power plants; region development of dams and power plants; region was site of vast economic rebirth with minimal was site of vast economic rebirth with minimal costscosts

Emergency or Permanent Emergency or Permanent Programs?Programs?

• Overriding question: Would Americans Overriding question: Would Americans institutionalize the new social reforms institutionalize the new social reforms of 1933 & 1934 or dismantle them of 1933 & 1934 or dismantle them immediately?immediately?

• FDR terminated CWA in 1934FDR terminated CWA in 1934

• Conservative interests forming Conservative interests forming coalitions and cohesive political coalitions and cohesive political consciousnessconsciousness

• FDR hoped that social reforms would FDR hoped that social reforms would ease the depression so they could be ease the depression so they could be reducedreduced

Evolution of the Reluctant Evolution of the Reluctant Welfare StateWelfare State

Chapter 7 AnalysisChapter 7 Analysis

• 1933 & 1934 were decisive years of 1933 & 1934 were decisive years of modern welfare statemodern welfare state

• Taboo social policy ideas were now Taboo social policy ideas were now acceptable & operationalacceptable & operational

• Once new policies were in place, Once new policies were in place, there was no way to turn backthere was no way to turn back

• Traditional approaches now seemed Traditional approaches now seemed mean-minded and callous to general mean-minded and callous to general publicpublic

Toward Ongoing ProgramsToward Ongoing Programs

1935-19361935-1936

• Second New Deal: new reforms introduced Second New Deal: new reforms introduced to supplement or replace earlier programsto supplement or replace earlier programs

• New reforms intended to decide which New reforms intended to decide which ongoing welfare functions govt should ongoing welfare functions govt should assume and how they relate to organized assume and how they relate to organized laborlabor

• Pressure on FDR from reformers and social Pressure on FDR from reformers and social workers continues to escalateworkers continues to escalate

• Unions of unskilled workers also putting Unions of unskilled workers also putting enormous pressure on FDRenormous pressure on FDR

• Workers, liberals, & African Americans Workers, liberals, & African Americans were critical of FDR, but preferred him to were critical of FDR, but preferred him to the increasingly conservative Republicans the increasingly conservative Republicans who were growing more stringent about who were growing more stringent about reform since the 1934 electionsreform since the 1934 elections

End Poverty in America (EPIA) PlanEnd Poverty in America (EPIA) Plan

Included:Included:

• Ongoing federal jobs programOngoing federal jobs program

• Massive low-cost housing programMassive low-cost housing program

• Insurance programsInsurance programs

• Creation of large manufacturing Creation of large manufacturing centerscenters

• Rural programs to help poor farmers Rural programs to help poor farmers gather land & equipmentgather land & equipment

The Social Security Act 1935The Social Security Act 1935

• Foundation of the American welfare stateFoundation of the American welfare state• Seen by FDR as one piece of legislation that Seen by FDR as one piece of legislation that

encompassed many facets he would be unable to encompassed many facets he would be unable to pass otherwisepass otherwise

• Contained 2 social insurance programs, 3 relief Contained 2 social insurance programs, 3 relief programs, and many other smaller programsprograms, and many other smaller programs

• Regressive tax system that placed stiffer taxes on Regressive tax system that placed stiffer taxes on low-income workers than on the more wealthylow-income workers than on the more wealthy

• Broadened in 1939 to include family members of Broadened in 1939 to include family members of the workerthe worker

• Excluded those not involved in taxed employmentExcluded those not involved in taxed employment

Aid to Dependent Children (ADC)Aid to Dependent Children (ADC)

• Some social workers wanted to grant relief Some social workers wanted to grant relief only to children they decided lived in only to children they decided lived in “suitable” homes. “suitable” homes.

• Southerners kept benefits low to ensure Southerners kept benefits low to ensure African American women & children African American women & children continued to work in the fieldscontinued to work in the fields

• Restricted assistance to families with a single Restricted assistance to families with a single parent or those whom the welfare grants parent or those whom the welfare grants were only for children and not the parentwere only for children and not the parent

Social Security, continuedSocial Security, continued

• ADC, Old-Age Assistance (OAA) and Aid ADC, Old-Age Assistance (OAA) and Aid to the Blind (AB) were the first to the Blind (AB) were the first permanent and major federal relief permanent and major federal relief programs.programs.

• Many people of that time might have Many people of that time might have reconsidered these programs had they reconsidered these programs had they known how they would grow. known how they would grow.

• FDR thought of including national health FDR thought of including national health care, but was afraid of the trouble the care, but was afraid of the trouble the American Medical Association might American Medical Association might cause.cause.

Labor and Public Works Labor and Public Works LegislationLegislation

Wagner Act of 1936Wagner Act of 1936

• NRA declared unconstitutional in 1935NRA declared unconstitutional in 1935• Partly responsible for drastic increase Partly responsible for drastic increase

in union membershipin union membership• Employers required to officially Employers required to officially

recognize union bargaining agents, recognize union bargaining agents, could not fire nor intimidate could not fire nor intimidate organizers, and could not claim that organizers, and could not claim that the company union suffered when the company union suffered when workers held electionsworkers held elections

Emergency Relief Appropriation Act Emergency Relief Appropriation Act 19351935

• Work program consolidating existing Work program consolidating existing federal jobs programsfederal jobs programs

• Socially useful projects designated Socially useful projects designated for areas in relation to welfare roll for areas in relation to welfare roll numbers for the regionnumbers for the region

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

• Dominated FDR’s public works Dominated FDR’s public works strategystrategy

• Major player in disaster relief workMajor player in disaster relief work

• Utilized the local, state & federal Utilized the local, state & federal staff of FERA, which was phased out staff of FERA, which was phased out after Social Security Act was passedafter Social Security Act was passed

National Youth Administration (NYA)National Youth Administration (NYA)

• Advocated by Eleanor RooseveltAdvocated by Eleanor Roosevelt

• College aid for poor studentsCollege aid for poor students

• Aid for high school studentsAid for high school students

• Public jobs in recreation centers & Public jobs in recreation centers & municipal servicesmunicipal services

• Camps for rural youth to teach trade Camps for rural youth to teach trade skillsskills

Era of StalemateEra of Stalemate

1937-19411937-1941

• After FDR’s reelection in 1936, people After FDR’s reelection in 1936, people asking where New Deal to go nextasking where New Deal to go next

• He slashed funding for many New He slashed funding for many New Deal programs to reduce federal Deal programs to reduce federal deficitsdeficits

• Middle-class voters begin to suspect Middle-class voters begin to suspect him of socialismhim of socialism

• Conservative coalition now openly Conservative coalition now openly questioning his policiesquestioning his policies

• Supreme Court and political defeats in Supreme Court and political defeats in 1936 & 1937 tarnished his public 1936 & 1937 tarnished his public imageimage

Policies During Era of Policies During Era of StalemateStalemate

Fair Labor Standards Act of 1938Fair Labor Standards Act of 1938

• Gains made under NRA were erased Gains made under NRA were erased when Supreme Court declared it when Supreme Court declared it unconstitutionalunconstitutional

• FLSA rectified these gaps in policyFLSA rectified these gaps in policy

• Established minimum wagesEstablished minimum wages

• Established maximum hoursEstablished maximum hours

Wagner-Steagall Housing Act of 1937Wagner-Steagall Housing Act of 1937

• Established US Housing Authority to Established US Housing Authority to offer low-interest loans for public offer low-interest loans for public housinghousing

Reorganization Act of 1939Reorganization Act of 1939

• Created sub-cabinet Federal Security Created sub-cabinet Federal Security Agency (FSA) & Federal Works Agency (FSA) & Federal Works Agency Agency

• FSA Contained CCC, NYA, Public FSA Contained CCC, NYA, Public Health Service, US Employment Health Service, US Employment Service, Social Security BoardService, Social Security Board

• Federal Works Agency contained Federal Works Agency contained WPA & PWAWPA & PWA

Attempts to make CCC permanent Attempts to make CCC permanent program failed in both 1937 & 1939program failed in both 1937 & 1939

Also defeated was attempt to create Also defeated was attempt to create sister acts of TVA in seven other river sister acts of TVA in seven other river basinsbasins

Out groups & the New Out groups & the New DealDeal

How did the New Deal help How did the New Deal help them?them?

African AmericansAfrican Americans

• FDR refused to support legislation making lynching FDR refused to support legislation making lynching federal crimefederal crime

• Wouldn’t support elimination of the poll taxes of the Wouldn’t support elimination of the poll taxes of the SouthSouth

• No legislation to counter housing market No legislation to counter housing market segregationsegregation

• FDR felt they were discriminated against because FDR felt they were discriminated against because they were they were poor,poor, not because of race: therefore, New not because of race: therefore, New Deal programs helped them as they helped all other Deal programs helped them as they helped all other poor peoplepoor people

• Quotas were not used because they were seen as Quotas were not used because they were seen as reverse discrimination tacticsreverse discrimination tactics

• CCC was segregatedCCC was segregated

WomenWomen

• Eleanor Roosevelt was voracious women’s advocateEleanor Roosevelt was voracious women’s advocate• No women in CWANo women in CWA• 15% of WPA recruits were women15% of WPA recruits were women• Wagner Act helped to organize womenWagner Act helped to organize women• More job security than men in Depression because More job security than men in Depression because

their work was sex-segregatedtheir work was sex-segregated• NRA labor codes established the gender wage gapNRA labor codes established the gender wage gap• Since Social Security benefits were based on wage Since Social Security benefits were based on wage

levels and job history, women had small benefit levels and job history, women had small benefit packagespackages

LatinosLatinos

• Farm workers weren’t covered under Wagner Farm workers weren’t covered under Wagner Act, where bulk of Latinos were employedAct, where bulk of Latinos were employed

• No Social Security or unemployment benefitsNo Social Security or unemployment benefits• Bracero program instituted w/Mexico in 1942: Bracero program instituted w/Mexico in 1942:

number of Mexicans allowed in US to work, number of Mexicans allowed in US to work, which helped ease Mexican unemployment which helped ease Mexican unemployment and US labor shortages on farmsand US labor shortages on farms

• Segregated communitiesSegregated communities• Los Angeles police known for conducting Los Angeles police known for conducting

regular mass roundups and incarcerationsregular mass roundups and incarcerations

Asian AmericansAsian Americans

• Immigration Act of 1924 limited annual number of Immigration Act of 1924 limited annual number of immigrants from specified areasimmigrants from specified areas

• First-generation was denied citizenship since they First-generation was denied citizenship since they were not Caucasian, and then denied access to relief were not Caucasian, and then denied access to relief programs of Depression because they were not programs of Depression because they were not citizenscitizens

• Despite confidential reports before & after Pearl Despite confidential reports before & after Pearl Harbor that they were not a threat, FDR signed Harbor that they were not a threat, FDR signed Executive Order 9066 which was the basis for Executive Order 9066 which was the basis for internment campsinternment camps

• EO 9066 & camps are seen by many Asian Americans EO 9066 & camps are seen by many Asian Americans as primary example of the impact of racism on US as primary example of the impact of racism on US social policysocial policy

• Ban on Chinese immigration finally lifted in 1943Ban on Chinese immigration finally lifted in 1943

Evolution of reluctant Evolution of reluctant welfare statewelfare stateChapter 8 AnalysisChapter 8 Analysis

• New Deal striking departure from New Deal striking departure from traditional American policies in two waystraditional American policies in two ways– FDR created a national welfare state that FDR created a national welfare state that

overrode local programsoverrode local programs– He created social programs rather than He created social programs rather than

maintaining a regulatory strategymaintaining a regulatory strategy

FDR CREATED REFORMS IN A SOCIETY FDR CREATED REFORMS IN A SOCIETY WHERE NO NATIONAL SOCIAL WHERE NO NATIONAL SOCIAL PROGRAMS HAD EXISTED AND IN SPITE PROGRAMS HAD EXISTED AND IN SPITE OF ENORMOUS SOCIAL, LEGAL & OF ENORMOUS SOCIAL, LEGAL & POLITICAL OPPOSITION.POLITICAL OPPOSITION.

DISCUSSION QUESTIONSDISCUSSION QUESTIONS

1.1. What political, cultural, economic, or other What political, cultural, economic, or other factors seem to make policy makers deny some factors seem to make policy makers deny some problems while taking others seriously?problems while taking others seriously?

2.2. Would major social programs such as the New Would major social programs such as the New Deal have been created federally if the Great Deal have been created federally if the Great Depression had never occurred?Depression had never occurred?

3.3. What ethical criticisms would FDR have What ethical criticisms would FDR have encountered had he encountered had he notnot developed national developed national programs in the Great Depression?programs in the Great Depression?

4.4. Were a truly liberal party to exist in the US, Were a truly liberal party to exist in the US, would it be successful in getting & keeping would it be successful in getting & keeping power with our winner-take-all system of power with our winner-take-all system of elections?elections?