The New Deal
JUAN CARLOS GUERRERO
Forging a New Deal
Franklin Delano Roosevelt was
inaugurated on March 1933.
“The only thing we have to fear is fear
Roosevelt felt that the only way to have
the public support his plans was to clam
panic and create confidence in the future.
He promised a new deal
Name given to programs presented by
Roosevelt in order to alleviate the Great
In the first hundred days on his presidency, Roosevelt pushed
for programs that provided relief, created jobs, and stimulated
March 5, 1933:
All banks ordered to close for four days
Emergency Banking Act approved on March 9th
Banks re-opened on March 15
Glass – Steagall Banking Act
Federal Securities Act
Securities Exchange Act and Securities and Exchange
Congress gave the Federal Reserve Board the power to
regulate the purchase on the stick market.
In July 1933, Roosevelt decreased the value of the currency by
taking it off the gold standard.
Relief and Jobs
Civilian Conservation Corps (CCC):
Established March 1933
Put men to work maintaining parks, forests, and beaches
Workers got free housing, food, and medical care
Federal Emergency Relief Administration (FERA):
Established May 1933
Sent funds to local relief agencies and public works programs
Civil Works Administration (CWA):
Established on November 1933
Put unemployed people to work improving roads, parks, and
Indian Reorganization Act (1934): ended the sale of
tribal lands and restored lands to Indian owners
National industrial Recovery Act (NIRA):
Established June 1933
Aimed to boost declining industrial prices
Led to the creation of the National Recovery Administration
Aimed to stabilize the economy through planning
NRA created codes to regulate wages and for some time the codes
helped but after prices rose and consumers stopped buying
NIRA’s work is now done by the Public Works
Florida mainland connection to the Keys
Homeowners and Farmers
Home owners’ Loan Corporation (HOCL): refinanced
about one million mortgages between 1933 and 1936 but
many people stilled lost their homes.
National Housing Act (1934):
Established the Federal Housing Administration (FHA)
Created to improve housing standards and conditions, and to stabilize
the mortgage market
Agricultural Adjustment Administration (AAA):
Established on May 1933
Tried to raise farm prices through government assistance
Used profit from a new tax to pay farmers
Tennessee Valley Authority (TVA):
Created May 1933
Helped farmers and provided cheap electric power
Reactivated a hydroelectric power facility from WWI
Important People in the New Deal
Francis Perkins was the first women to ever
be appointed to a Cabinet. Francis Perkins
was formally a Progressive who headed the
New York State Industrial Commission.
Franklin D. Roosevelt appointed Francis
Perkins as Secretary of Labor. Francis
Perkins played a big role in the New Deal
because she pressed for laws that would
help both the workers and the unemployed. Francis Perkins
Perkins accomplished economic justice and
security for all Americans.
Important People in the New Deal
MARY MCLEOD BETHUNE
Mary McLeod Bethune was one of the
most important African American
Women in the New Deal. Was a leader
in the black women's club movement and
served as president of the National
Association of Colored Women. Mary
Bethune was also a delegate and advisor
to national conferences on education,
child welfare, and home ownership for
the Black. Mary McLeod Bethune was a Mary McLeod Bethune
main spokesperson for African American
Important People in the New Deal
Eleanor Roosevelt was FDR’s wife and
distant cousin. She was an important
character in the New Deal since she did
all of her husband’s traveling. FDR
could not travel because of his
disability so Eleanor traveled for him,
delivering all the news from the
country. She was also known for Eleanor Roosevelt
standing up for what she believed in,
sometimes causing problems for her
Problems with the New Deal
When the New Deal did not show economic improvement people
freaked and began to see its problems.
Most people worried that the New Deal was giving way too much
power to the federal government therefore being unconstitutional.
The Supreme Court thought that the New Deal gave the president
too much power since he was now allowed to make laws.
The Supreme Court also believed that the New Deal synchronized
local, rather than interstate, business.
Another major problem was that millions of poor people were
harmed by the New Deal.
The New Deal didn't increase the number of jobs in the economy,
because the money spent on New Deal projects came from taxpayers
who consequently had less money to spend on food, coats, cars,
books and other things that would have stimulated the economy.
Second New Deal
Though FDR's first New Deal failed, people still had faith and rallied
behind Roosevelt. And with the midterm elections of 1934, nationwide
support for FDR's administration was evident. With hope to strike
down the Depression, in 1935 FDR laid out a new plan that would
hammer down the Depression. Historians claimed this period and
legislation it produced the Second New Deal or the Second Hundred
Days. Many critics stated that FDR was not doing much for the
"ordinary Americans", FDR responded the bitter critiques with the
Second New Deal. It included more social welfare benefits, stricter
controls over business, stronger support for unions, and higher taxes
on the rich.
At the time, jobs were difficult to come by. New agencies sought to end
this with the WPA or Works Progress Administration which was
established in 1935 which employed more than 8 million citizens. With
the WPA in effect, the agency managed to improve tens of thousands of
playgrounds, schools, hospitals, & supported artwork and writers. The
National Youth Administration was established within the WPA in the
same year, provides the education, jobs, recreations, and counseling
young men and women that were between the ages of 16 and 25,
New and Expanded Agencies
The Second New Deal also acknowledged the hardships
of agricultural workers. The original AAA had ignored
farm workers that didn't own landed. Mexican American
farm workers struggled to survive. Many returned to
Mexico and others tried to form unions, only to be
resisted from farming associations. In the south, when
landlords accepted the AAA subsidies & took land of
production, workers were left jobless as a result.
Rexford Tugwell, an economist in FDR’s Department of
Agriculture, sought to appease the agriculture farm issue
by loaning money to help resettle tenants and
sharecroppers on productive land. It was not until 1937,
that the Farm Security Administration (FSA) replaced
Tudwell's agency banning more than $1 billion for
With the New Deal, electricity was brought to rural areas. By
the 1930's, nearly 90% of Americans in rural areas. It was not
encouraged for private companies to offer the provision of
electricity due to the high cost in running power lines to
remote areas. Roosevelt believed that the government was
obliged to provide this essential service and not private
enterprises. In order for this to persevere, in 1935 congress
created the Rural Electrification Administration, which
offered loans to electric companies and from cooperatives for
building power plants and extending power lines and for
farmers to wire their homes. Within four years, about 25% of
rural households had electricity. The REA brought power to
98% of U.S. farms which also brought demands for electric
appliances. This benefited manufacturing companies and
New Labor Legislation
New labor legislation appeared once the NIRA provision, 7a,
which granted labor unions the right to bargain and organize
collectively, was expired due to the NIRA being declared
unconstitutional. When this occurred, workers began demanding
a new legislation to protect their rights. By July 1935, congress
responded with the Wagner Act, named after its leading
advocate, Robert Wagner. The act legalized such union practices
such as collective bargaining & closed shops, which are the
workplaces open exclusively to union members. The act also
outlawed spying on union activities and blacklisting, a practice in
which employers agreed not to hire union leaders. The act also
established National Labor Relations Board (NLRB) to enforce
its provisions. The Supreme Court upheld the constitutionality,
of the Wagner Act in the NLRB v. Jones and Laughlin (1939).
The case established the federal government's ability to regulate
disputes linked to interstate commerce. In 1935, Fair Labor
Standards Act banned child labor & established a minimum wage
for all workers covered under the act.
In 1935, Congress passes the Social Security Act. It established
a Social Security System in order to provide financial security
in form of regular payments for people who can't support
themselves. System offers 3 types of insurance:
Old Age pension & survivor's benefits- Workers & their
employers paid equally into a nation's insurance fund. Retired
workers or their surviving spouses were eligible to receive
social security payments at age 65. The act didn't cover farm
& domestic workers until 1954.
Unemployment insurance- Employer's with more than 8
employees funded this provision by paying by paying a tax.
Aid for dependent children, the blind, and the disabled- he
federal government gave grants to states to help support
needy individuals in these categories.
In the election of 1936, FDR faced the Kansas
governor Alfred M. Landon. It was expected that
FDR would win due to his popularity, yet no one
would have foreseen the greatness of his victory.
FDR swept the favor of every state except Maine and
Vermont, winning 523-8 in the Electoral College.
This meant everyone was for the New Deal, yet there
were still some who disagreed.
The New Deal’s Critics
Limitations of the New Deal
Women African Americans
Federal relief programs reinforced racial
The new deal put women at segregation in the South.
a disadvantage. Professional level jobs were not offered to
African Americans as a rule.
One example is the NRA They received lower pay for the same
codes permitted lower work.
wages for women's work in Discriminatory practices still stood in the
a quarter of al cases. Government offered no relief for violence
Jobs went to the male against African Americans.
heads of the family, unless More African Americans supported FDR
as time passed. They appreciated the help
the men weren't able to of the programs for regaining
No program protected FDR's record appealed to African
Americans since he appointed
domestic service, women's more African Americans
largest occupation. than any president before him.
Great Depression has people reacting to New Deal very differently
Different political views criticize Roosevelt’s New Deal for what it does and
Republicans opposed Roosevelt. They thought he went too far.
Most of Roosevelt’s political oppositionists were wealthy white males.
In the Early New Deal, people said that rural electrification was socialistic.
Roosevelt imposes the Revenue Act of 1935 in the second New Deal that was
aimed at the rich (payback).
The Social Security Act was seen as a beginning of a military society that
required any and all citizens to wear their numbers on dog tags in the future.
In 1934, American Liberty League was founded by the ex-democrats, leading
business figures and the National Association of Manufacturers to try and be
the “nose of the anti-FDR plane”.
Socialist novelist Upton Sinclair wanted thought that the New Deal wasn’t
going to work anyways so he pushed for a total economic reformation when he
took the democratic approach in running for California’s governor. He became
very popular with the people so his opponents faked an association with
Russian government and he lost with false meddling of communism.
Other Political Critics
FATHER CHARLES E. COUGHLIN
At the start of the 1930’s he was well known for his broadcasting
of his sermons and grew to 10 million listeners on his radio show.
He soon started spreading the idea of nationalism, which is to
allow government to take over public banks and redistribute
evenly to the people. But contradicted himself and said that
people should hold their sanctity including banks.
First he supported FDR and his plan to rehabilitate the economy
but as the years progresses he began to openly attack FDR and
call him uncalled for things.
In 1942 he was shutdown by the Roman Catholics for openly
offending Jews on his show.
Pretty much, he was mad with power.
Other Political Critics
He never used derogatory remarks to gain power or control but
still gained a lot of support by improving the education system,
medical care, and public services of the underprivileged.
He was a supporter of FDR in the beginning, but soon started his
own way of fixing the economy.
He wanted the same thing that Coughlin wanted, to evenly
distribute the nations income. He started a campaign called
It would limit peoples incomes to 1million and have the
government take the rest and evenly distribute it throughout the
nation giving every family a minimum of 5000 dollars.
His ideas attracted a lot of people however, they were
mathematically impossible. All he did was provide FDR with the
support he needed to impose the Revenue Act.
In 1935, he was show by one of his political enemies.
Modern Day Political Critics
Today, we look at FDR as one of the greater presidents
that have been sworn into office.
Roosevelt is praised for his efforts in refurbishing the
1930’s economy, but he is still critiqued about what
exactly the New Deal did.
Critics today have examined all pieces of information and
facts and state that the New Deal lacked in efficiency and
actually slowed the economic progression while also
attack the ideals of the free enterprise system.
They also say that the New Deal wasted resources.
Example = paying farmers not to plant caused a time of
hunger for those who were hit hardest in the depression.
Economists say that the New Deal violated the “American
The Court-Packing Fiasco
The Court had invalidated the NIRA, the AAA, and many state laws from
the Progressive Era.
February,1937, FDR proposed a major court-reform bill.
FDR asked Congress to allow him to appoint as many as six additional
justices.(one for every justice that was
at that time over 70 years old.)Since the Constitution did not specify the
number of Supreme Court Judges.
FDR wanted to "pack" the court with supporters of the New Deal.
Critics protested that FDR wanted to put politics into the judiciary.
Strong opposition forced FDR to withdraw his bill.
Many Republicans and Southern Democrats united against further New
Some older justices retired, which allowed FDR to appoint justices who
supported the New Deal.
FDR got the court to side with him.
Last Days of the New Deal
The New Deal was the name that United States President
Franklin D. Roosevelt gave to a sequence of central economic
planning and economic stimulus programs he initiated
between 1933 and 1938 with the goal of giving aid to the
unemployed, reform of business and financial practices, and
recovery of the economy during The Great Depression.
The New Deal Roosevelt had promised the American people
began to take shape immediately after his inauguration in
By 1939, the New Deal had run its course. In the short term,
New Deal programs helped improve the lives of people
suffering from the events of the depression. In the long run,
New Deal programs set a precedent for the federal
government to play a key role in the economic and social
affairs of the nation.
Recession of 1937
In 1937, the American economy took an unexpected
downturn, lasting through most of 1938. Production
declined sharply, as did profits and employment.
Unemployment jumped from 14.3% in 1937 to 19.0% in
1938. In two months, unemployment rose from 5 million
to over 9 million, reaching almost 12 million in early
1938. Manufacturing output fell off by 40% from the
1937 peak; it was back to 1934 levels.
Response to the Recession
The Roosevelt Administration reacted by launching a rhetorical
campaign against monopoly power, which was cast as the cause of
the depression, and appointing Thurman Arnold to act; Arnold was
not effective, and the attack ended once World War II began and
corporate energies had to be directed to winning the war.
It began to get better in mid-1938, and every month
it was better. However, employment did not regain
the 1937 level until the war boom began in late 1940.
Productivity steadily increased, and output in 1940
as well above the levels of both 1929 and 1937.
Personal income in 1939 was almost at 1919 levels in
aggregate, but not per capita. The farm population
had fallen 5%, but farm output was up 19%, so the
remaining farmers were better off than the average
farmer in 1939.
New Deal’s Effect on Culture
During the Great Depression, artists
created cultural legacies that lasted a long
Congress provided federal funds that
aided these artists.
Congress supported the popular fine arts,
Literature Radio & Movies
During this time period, many works Radio became major entertainment
of literature emerged. source in America.
Comedy shows: (1930s) Jack Benny,
These works soon became classics. Gracie Allen, George Burns, Fred Allen
Some of these works were: Soap operas emerged during the
"The Good Earth" (1931) - Pearl 1930s, made especially for women.
Buck: peasant struggle in China Movies provided an escape from the
"Their Eyes Were Watching God"
(1937) - Zora Neale Hurtson: strong- $0.25 was the cost to see a double-
feature movie or a ticket for the whole
willed African American and the family to the drive-in theater.
Florida town she lived in Some famous films:
"The Grapes of Wrath" (1939) - "Mr. Smith Goes to Washington" (1939) -
John Steinbeck: Dust Bowl victims Warner Brothers: good over evil
who travel to California in search of "Monkey Business" (1931) - Marx
a better life "Duck Soup" (1933) - Marx Brothers:
James Agee and Walker Evans were comedy
allowed to live weeks with Alabama Classics:
sharecroppers because of funding "The Wizard of Oz" (1939)
provided by "Fortune" magazine. "Snow White and the Seven Dwarfs"
(1938) - Walt Disney
Their experiences resulted in the book Mickey Mouse cartoons - Walt Disney
"Let Us Now Praise Famous Men" (1941)
Literature, Radio, & Movies
The WPA and the Arts
FDR believe the arts should not be given up at any time.
Provided WPA funds that supported artists, musicians, historians, theater people,
Federal Writers' Project (1935): assisted 6,000 writers like: Richard Wrigt, Margaret
Walker, Saul Bellow, and Ralph Ellison
This project surveyed the nation's local government records, wrote state guidebooks,
and collected life stories from approximately 2,000 former slaves.
Federal Music Project: started community symphonies and organized free music
Federal Art Project (1935): put artists to work
Artists, during this project, painted over 2,000 murals, produced over 100,000 paintings, more
than 17,000 sculptures, and hundreds of other works of art.
Federal Theater Project: directed by Vassar College Professor Hallie Flanagan, used
drama to create awareness of social problems
This project launched the careers of directors, playwrights, and actors such as: Burt Lancaster,
Orson Welles, Arthur Miller, and John Houseman.
The House of Un-American Activities Committee (HUAC) accused the project of
being a propaganda machine for international communism.
The project was investigated in 1938 and 1939, and on July 1939, Congress eliminated the project's
New Deal Achievements
The New Deal had many programs that affected
nearly every American.
It did not end the nation's suffering, but led to
changes in daily life.
People accepted more government intervention in
their lives, and grew accustomed to the larger
Laborers demanded more changes in the
Public Works and Federal Agencies
Public Works and Federal
Had many critics.
New Deal bridges, tunnels, public
buildings, dams, and hospitals People complained, at first, that its
exist to this day. payments were too low.
Federal agencies also survive to
this day. Women would lose all benefits if a
man lived in the same household.
The Tennessee Valley Authority: 1939: Congress and the Social
remains a model of government Administration developed a series of
The Federal Deposit Insurance This was to address the weakness of
Corporation: still guarantees the system.
bank deposits Amendments: raised benefit
The Securities and Exchange amounts, provided monthly benefit
Commission: continues to checks (instead of one-time
payments), provided benefits for
monitor the workings of stock recipients' dependents and survivors,
exchanges included farm workers, and added
Legacy of Hope
The New Deal restored a sense of hope.
Citizens wrote many letters to the President and the
First Lady asking for help.
Government programs meant the difference between
survival and starvation for many.
Economic recovery did not come until the 1940s, and
did not come through New Deal programs.