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The New Deal - Chapter 23


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									The New Deal
       CHAPTER 23
Forging a New Deal

      SECTION 1
  Nation’s Hope

 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
 New Deal:
   Name given to programs presented by
    Roosevelt in order to alleviate the Great
                   Financial Institutions

 In the first hundred days on his presidency, Roosevelt pushed
  for programs that provided relief, created jobs, and stimulated
  the economy.
 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
  Administration (PWA).
     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 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
  migrant workers.
                 Rural Electrification

 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
  local merchants.
                 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.
                      Social Security

 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.
                   1936 Election

 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

       SECTION 2
            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
  work.                             employment.
 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.
                            Political Critics

 Great Depression has people reacting to New Deal very differently
 Different political views criticize Roosevelt’s New Deal for what it does and
    doesn’t do.
   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

 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
    Free Economy”.
                  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
    Deal legislation.
   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

         SECTION 3
                    Roosevelt’s 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
  March 1933.
 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.
                   The Recovery

 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,
 and jobs.
            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"
                                                harsh Depression.
       (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
                                                        Brothers: comedy
       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,
    and writers.
   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
                                       Social Security
                                        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.
                                          Discriminated women.
   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
    planning                               amendments.
   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
                                           disability coverage.
                  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.

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