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THE NEW DEAL
U.S. HISTORY & GEOGRAPHYCHAPTER 10
FRANKLIN DELANO ROOSEVELTNY resident, enjoyed the outdoors, educated at Harvard then Columbia law. Married to Eleanor, Theodore Roosevelt’s niece.NY Senator 1910, Secretary of Navy 1920, Governor of NY 1928. Contracted polio in 1920 & would only be able to walk with his braces & assistanceElected to presidency in November 1932. Takes office in March 1933. 20th Amendment: moves presidential inaugurations to January, not ratified until February 1933.
FDR’S PLANS
Before being inaugurated, FDR will meet with lawyers, professors, & journalists to begin formulating policies that will help the American peopleThe NEW DEAL will focus on: relief for the needy, economic recovery, & financial reformFDR will abandon the gold standard & would press banks to obtain their deposits so as to convert it to gold. Over 4k banks will collapse by March 1933.
FIRST HUNDRED DAYS
March 9 to June 16, 1933: launching of policies called the NEW DEAL. More than 15 pieces of legislation. All of these policies expanded & redefined the federal government’s role in the national economy
PROHIBITIONS ENDSFDR persuaded Congress to allow the production & sale of some alcohol so that it could be taxed. Eventually the 21st Amendment (1933) repealed prohibition
A DIVIDED ADMINISTRATION
FDR surrounded himself with advisers who were not afraid to disagree with one another which provided him with different perspectives of what government should or should not do to help deal with the Great Depression. FDR would make the final decision as to what government would attempt to do
BANKS & DEBT RELIEF
“Bank Holiday” – first measure of New Deal. Closed banks for a day (for some banks it would be a couple). Emergency Banking Relief Act 1933: allowed the government to inspect banks & to make sure that they were stable & could reopen
FDR & “Fire side chats”Fireside chats: FDRs information sessions by radio telling the American people what his proposals were & what they could do to assist in the recovery of the nation’s economy. These chats continued throughout his presidency
FDIC
Glass-Steagall Act 1933: separated commercial banking from investment bank. Federal Deposit Insurance Corporation (FDIC) ensuring deposits up to $5k.
SECFederal Securities Act 1933: required corporations to provide complete info on stock offerings & made them liable for misrepresentationsSecurities & Exchange Commission: created to regulate stock market, stop fraud, & keep people from “rigging” the stock market
MORTGAGE & DEBT RELIEF
Home Owners Loan Corporation (HOLC): purchased mortgages of homeowners who were behind & then restructured the loan with longer repayment terms & lower interest ratesFarm Credit Administration (FCA): farmers were able to refinance their mortgages & hold onto their land
FARMS
Agricultural Adjustment Act (AAA): raised crop prices by lowering production. It paid farmers NOT to raise certain livestock, grow certain crops, or produce dairy products. It contained a processing tax that would cause it to be found unconstitutional by U.S. Supreme Court
INDUSTRY
National Industrial Recovery Act (NIRA): set up the National Recovery Administration (NRA). Act suspended antitrust laws & allowed for business, labor, & government to set up voluntary rules for fair competition in each industry. These set up prices, minimum wages, set working hours, create more jobs, allowed for unionization, & fair competition. Not everyone liked the voluntary rules. NRA would be considered unconstitutional in 1935 by U.S. Supreme Court
National Industrial Recovery Act
Fort Peck Dam in Montana; spillway construction. It is one of the largest dams in the world and continues to generate electricity; in July 1936 its construction employed 10,500 workers
Lincoln Tunnel, NYC built by PWA
National Recovery Administration
Hugh Johnson, Fiorello LaGuardia and Robert Moses on Grand Street to start a section of the FDR Drive, 1934.
RELIEF PROGRAMS
FDR’s advisers felt that getting $ into the hands of the needy would be a fast remedy but none, including FDR, wanted to just give $ to the unemployed. They would create work programs for them.SEE POLITICAL CARTOON PG. 254
THE CCCCivilian Conservation Corps: men, 18-25, working for the forestry service planting trees, fighting forest fires, & building reservoirsThese men would build the Shelter Belt to prevent another Dust BowlEarned $30/month, $25 was sent home, as they were provided with meals, shelter, & clothing near their work sites. Many were taught to read & write while there.3 million young men would go through this program including 80k Native Americans
Civilian Conservation Corps
CCC (Civilian Conservation Corps) boys building steps at picnic grounds of recreation area. Ross County, Ohio
Civilian Conservation Corps workers at Fort Ancient, 1934. Located in Warren County, Ohio and maintained as a state memorial by the Ohio Historical Society
THE FERA & THE PWA
Federal Emergency Relief Administration (FERA): provided $ to state & local agencies to fund their relief projectsPublic Works Administration (PWA): employed construction workers to build highways, dams, schools, & government facilities. Contractors who received contract to build could not discriminate against African Americans
Federal Emergency Relief Administration
Federal Emergency Relief Administration camp July 1934.
THE TVATennessee Valley Authority: renovation of 5 dams, constructed 20 others, provided flood control, jobs, & hydroelectric powerSEE MAP PG. 252
Tennessee Valley Authority
TVA is the largest U.S. public power company with twenty-nine hydroelectric dams These dams distribute electricity over an area of about 207,000 square kilometers (80,000 square miles), consisting of 8 million users within Tennessee, and portions of Mississippi, Georgia, North Carolina, Kentucky, Virginia, and Alabama. The TVA system annually produces over 125 billion kilowatt-hours of electricity, more than 90 times the electricity produced in 1933.
Douglas Dam
Cherokee Dam
THE CWA
Civil Works Administration: provided 4 million jobs. Built 1k airports, 40k schools, 3.5k playgrounds & parks, paid 50k teachers, & built a million miles of roads. The program only lasted from the fall of 1933 to spring of 1933 as FDR realized the amount of $ it was costing plus he did not want Americans used to the government providing them with jobs
Civil Works Administration
Civil Works Administration workers repaving road in front of the Philadelphia Zoo's administration building, Philadelphia, PA, June, 1934
Civil Works Administration workers on their way to fill a gully with wheelbarrows of earth during the construction of the Lake Merced Parkway Boulevard, San Francisco, California
SUCCESS OF THE FIRST NEW DEAL
FDR’s & Congress’ legislation did not restore prosperity but it aided banks to reopen, people to retain their homes & farms, employ many of the unemployed & to inspire hope & faith in the nationFDR will begin to face opposition to his policies even though there were some successes with the New Deal programs
CRITICISM FROM RIGHT & LEFT
“Right wing’s” Opposition: deficit spending“Left wing’s” Opposition: New Deal had not gone far enough & wanted a redistribution of wealth. Huey Long, Senator from LA, would represent the “left wing’s” ideals & would consider running for president in 1936
CRITICISM FROM RIGHT & LEFTFather Charles Coughlin (Catholic): grew impatient with reforms of the New Deal & called for inflating the currency & nationalizing the banking system. Founded the National Union for Social JusticeDr. Francis Townsend wanted the government to give $200/month to all citizens over the age of 60 & they in turn would be required to spend it every month
Newsweek Magazine (11th March, 1933)
WPA
Works Progress Administration: 1935-1941: employs 8.5. million, spent $11 billion, constructed 650k miles of road, 125k public buildings, 835 airports, 124k bridges, & 8k parks
Federal Number One: part of WPA that would fund artists, musicians, actors/actresses, painters, & writers (chapter 9)National Youth Administration (NYA): assisted youths, professionals, & other workers by providing them with work, a paycheck, or educational opportunities
U.S. SUPREME COURT DISRUPTION
Schechter Poultry v. United States May 1935: Schechter brothers were convicted of violating NRA’s poultry code. U.S. Supreme Court ruled that Congress could not delegate legislative powers to the executive branch thus the NRA’s codes were unconstitutionalU.S. Supreme Court will invalidate the NIRA section that allowed for unions to organize. Democrats needed the working-class vote to win reelection & will pass new labor legislation
THE WAGNER ACTNational Labor Relations Act 1935 (Wagner Act): allowed for unions to exist & to engage in collective bargaining. Established the National Labor Relations Board (NLRB) to hear testimony about unfair practices. Act created a process where union members & companies could go to a neutral party to help make decisions on issues called binding arbitration
AFL - CIO
American Federation of Labor (AFL) will split in 1935. Congress of Industrial Organization (CIO) will represent everyone. In 1955, the two joined back together. New tactic: sit-down strike
UAW Members hold their sit down strike on car seat inventory
SENIOR CITIZENSSocial Security Act 1935:
Old age insurance for retirees 65 or olderUnemployment compensationAid to families with dependent children & disabled.
Still in effect todayIDA MAY FULLER, RECIPIENT OF THE FIRST SOCIAL SECURITY CHECK. (THESE DAYS, YOU CAN GET DIRECT DEPOSIT.) SSA Photo
COURT-PACKING PLANU.S. Supreme Court’s findings of New Deal programs to be unconstitutional caused FDR to propose to Congress a bill (court-packing bill) that would increase the number of justices (by 6) & allow the president to appoint an additional justice if a sitting justice who had served 10 years did not retire within 6 months of turning 70.
This was a serious political mistake for FDR. Southern Democrats feared that new justices would overturn segregation & African American leaders thought new justices might oppose civil rights
COURT-PACKING PLAN
U.S. Supreme Court would back down by a narrow margin upholding the constitutionality of Social Security & the Wagner Act. Eventually, justices began resigning (6 total) which allowed FDR to appoint justices who supported New Deal programs
RECESSION OF 1937
Industrial output began to improve & recovery was in sight. FDR decided to cut spending to WPA & PWA programs. At the same time that he did this Social Security took $2 billion out of the budgetKeynesianism economics: the idea that government should spend heavily in a recession to jump-start the economy. FDR was reluctant to engage in this as he was trying to stop deficit spending but would do so to allow the economy to get stronger
LAST NEW DEAL REFORMS
National Housing Act 1934: furnished loans for home mortgages & repairs. Established the United States Housing Administration (FHA) – still in existence todayResettlement Administration 1935 & Farm Security Administration 1935: provided monetary loans to small farmers (tenant) to buy land & establish camps for migrant farm workers
LAST NEW DEAL REFORMS
Fair Labor Standards Act 1938: set maximum work hours per week to 44, a minimum wage, & abolished child laborSoil Conservation & Domestic Allotment Act: paid farmers for cutting production of soil-depleting crops & rewarded farmers for practicing good soil conservation methodsAgricultural Adjustment Act 1938: had many features of the first AAA except it left out the processing tax that was unconstitutional
LAST NEW DEAL REFORMS
Rural “Electrification Administration (REA) & Public Utility Holding Company Act 1935: expanded & regulated utilities in states
Hayti, Missouri. U.S. Rural Electrification Administration (REA)
Rural Electrification Admin (REA): lineman working on pole as farmer watches.FDR Library Photo Collection. Wisconsin
Installing REA power lines in the 1930s. These lines were built in rural Otter Tail County in West Central Minnesota
LAST NEW DEAL REFORMS
Indian Reorganization Act 1934: called for changes in the areas of economic (lands back to tribal ownership), cultural (reduction in boarding schools), & political (set up their own tribal councils)
NEW DEAL LEGACY
New Deal programs were scaled back at the request of Congress & other supporters as the economy grew a little by the end of the 1930s. Many individuals were divided as to whether or not the New Deal programs were a good thing or a bad thing. The New Deal gave the federal government a more powerful role in influencing the national economy
NEW DEAL’S LEGACY - WOMENGained limited entrance into the work force. FDR appointed Frances Perkins as our first female cabinet member (Secretary of Labor). Two other female diplomats & a female judge would also be appointed. Women still faced discrimination in the work place as so many men were unemployed but would continue to be an increasing factor in the makeup of the workforce
NEW DEAL’S LEGACY – AFRICAN AMERICANS
Brotherhood of Sleeping Car Porters – 1st all black trade union, created by A. Philip RandolphMary McLeod Bethune: appointed to head the Division of Negro Affairs of the National Youth Administration. She organized a “black cabinet” of individuals, including William Hastle & Robert Weaver (both appointees to Department of Interior). They assisted in advising Roosevelt’s administration of issues pertaining to African Americans
NEW DEAL LEGACY
The New Deal did not END the Great Depression but it EASED the suffering of men, women, & children by providing them with a job, food, & some income. What brought the END of the Great Depression was the need for war materials as event in Europe (Hitler) took shape
NEW DEAL LEGACY
Programs still in place today:Wagner ActFair Labor Standards ActNational Labor Relations BoardSecurities & Exchange CommissionFederal Deposit Insurance CorporationSocial SecurityTennessee Valley Authority (cutbacks in the late 80s, early 90s)
