The New Deal

President Franklin D. Roosevelt’s plan to fix the US economy

The New Deal was….

A plan to offer relief, recovery and reform

All aspects of the plan were aimed at combating problems caused by the Depression

First Hundred Days…

From his inauguration in March of 1933 to June = 100 days

FDR pushed programs through Congress to provide relief, create jobs, and stimulate the economy

Emergency Banking Act March 5, 1933 – closed all banks for 4 days March 9, 1933 – Emergency Banking Act Authorized the government to inspect the

financial health of all banks Inspectors found most banks were in good

shape – 2/3 reopened by March 15 This helped American gain confidence in

the banking system and start saving again More $ in savings meant the banks could

make more loans

Federal Deposit Insurance Corporation (FDIC)

This insured bank deposits up to $5000

1933

Federal Emergency Relief Administration (FERA)

1933 This agency gave $ to local relief

agencies Harry Hopkins – Director FERA also put money into public

works programs which were government funded projects to build public facilities

Civil Works Administration (CWA)

November 1933 This agency gave jobs building or

improving roads, parks, airports, and other facilities to the unemployed

4 million employees

Civilian Conservation Corps (CCC)

March 1933 Over 2.5 million young, unmarried

men got jobs restoring and maintaining forests, beaches, and parks

Earned $1 /day but lived free of charge, rec’d food and medical care as well as job training

Indian Reorganization Act of 1934

Directed by John Collier Ended the sale of tribal lands Helped to begin restoring some lands

that had been sold under the Dawes Act (1887) to Indian groups

National Industrial Recovery Act (NIRA)

June 1933 Set up to increase industrial prices Set up the National Recovery

Administration (NRA)

National Recovery Administration (NRA)

June 1933 Set up to balance the unstable

economy through sensible planning Regulated wages, working conditions,

production and prices Also set minimum wage and gave

organized labor collective bargaining rights (unions)

The new codes worked for a while but higher wages meant higher prices

Consumers stopped buying The cycle of rising production and

falling consumption returned Business began failing

Public Works Administration (PWA)

November 1933 Directed by Harold Ickes Set up large scale building projects Grand Coulee Dam on the Columbia

River----the causeway connecting Key West to the Florida mainland---NYC’s Triborough Bridge

Federal Securities Act

May 1933 Required companies to provide

financial information if they sold stock publicly in their business

Securities and Exchange Commission (SEC)

May 1933 Set up to regulate the stock market Had the power to tell companies what

info. had to be included in their financial statements

Also gave the Federal Reserve Board the power to regulate the purchase of stocks on margin

Home Owners Loan Corporation (HOLC)

June 1933 Refinanced or reshaped the terms of

mortgages to make the payments more affordable

In 3 years – the HOLC had made more than 1 million low interest loans

Agricultural Adjustment Administration (AAA)

May 1933 Attempted to raise farm prices

through subsidies (gov’t loans) Used $ from a new tax to pay farmers

to NOT raise certain crops or animals It was hoped that lower production

would raise prices

Tennessee Valley Authority (TVA)

May 1933 Helped farmers with flood control Provided jobs by reactivating the

hydroelectric power facility Gave cheap electric power and many

recreational opportunities to the entire region ( TN, Miss., KY, AL, GA)

Advances for Women…

1st female Cabinet member – Secretary of Labor – Frances Perkins

Highest ranking African American female – Mary McLeod Bethune – director of the Division of Negro Affairs of the National Youth Administration

Problems with the New Deal… Many were not seeing great changes

happening fast enough Former Pres. Hoover complained that the

country was losing its freedom to a state-run gov’t

The US Supreme Court declared NIRA unconstitutional because it gave the Pres. lawmaking powers and regulated local rather than interstate commerce

It also ruled that the tax that funded the AAA gov’t subsidies to farmers was unconstitutional

2nd New Deal Mid-term elections (1934) showed that

most Americans were in support of FDR’s programs

1935 – FDR launched a second set of reform to hush critics who said that he was not doing enough for the ordinary citizen

More social welfare benefits, more control over business, stronger support for unions, and higher taxes on the rich

Works Progress Administration (WPA)

1935-1943 Work was set up for over 8 million US

citizens Constructed or improved over 20,000

playgrounds, schools, hospitals and airports

Supported the creative work of many artists and writers

Farm Security Administration (FSA)

1937 Loaned over $1 billion to farmers and

set up camps for migrant farm workers

Helped small farm owners Helped to resettle tenants and

sharecroppers on productive land

National Labor Relations Actaka…The Wagner Act

1935 Strengthened collective bargaining and

closed shops (work places open only to union members)

Outlawed spying on union activities and blacklisting (agreement that employers won’t hire union leaders)

Set up a National Labor Relations Board (NLRB) to enforce its provisions

Fair Labor Standards Act

1938 Banned child labor Established a minimum wage for all

workers covered under the act

Social Security Act 1935 Purpose was to provide regular payments

to people who could not support themselves

The system offered three types of insurance…Old Age Pensions and Survivors Benefits, Unemployment Insurance, & Aid for Dependant children, the Blind and the Physically Disabled

Election of 1936 Kansas Governor Alfred Landon – R v. Pres. Franklin D Roosevelt – D LANDSLIDE victory for FDR 523-8 (electoral college vote) FDR lost

in only two states – Maine and Vermont

Landslide victory showed that most Americans believed in FDR and his New Deal

Problems arise….

The New Deal worked for many but left many out in the cold

FLSA only covered ¼ of all workers The minimum wage was set at $.25 –

well below what most were earning Less helpful to women and minority

groups

Women…

NRA codes permitted women to be paid less than men in ¼ of all cases

Men received preference in job and relief programs

No program protected domestic workers – largest female occupation

African Americans… Relief programs in the south enforced racial

segregation Were not offered professional or skilled jobs –

lower wages than whites Social Security did not cover farmers or

domestics so it failed to cover nearly 2/3 of working African Americans

Last hired – first fired in the north – discrimination was strong

Lynchings still took place

Critics of the New Deal…

Republicans opposed FDR and his New Deal

Wealthy hated FDR because of his socialist ideas and the new higher tax – Revenue Act of 1935 or the Wealth Tax Act – raised taxes on incomes over $50,000 and on corporations and their profits

Social Security Critics…

Many complained that it penalized successful, hardworking people

SS# were seen as a step towards a militaristic, regimented society

Many believed that all Americans would soon have to wear dog tags with SS# for Gov’t control

American Liberty League

Led by Alfred E. Smith & Nat’l Assoc. of Manufacturers & wealthy businessmen like DuPont family

The New Deal limited American freedom in an unconstitutional “un-American” manner

Compulsory unemployment insurance felt like “Bolshevism” (USSR)

Upton Sinclair Muckraker - Ran for Gov. of California

with the idea of EPIC – End Poverty in California

Economic system of the state taking over factory and farms

Opponents discredited him with fake newsreels showing Russians accented people praising him – he lost the election

Demagogues Leaders who manipulate people with half-

truths, deceptive promises and scare tactics

Father Charles Coughlin – the Radio Priest – 10 million people listened

Often contradicted himself - nationalism v. privatization– attacked FDR – supported anti-Semitism – praised Hitler and Mussolini

1942 Roman Catholic church ordered him to stop broadcasting

Huey Long - Demagogue

Lawyer, Gov of LA, US Senator Nicknamed the “Kingfish” Large following – he supported “Share

the Wealth” idea – limit income and inheritance

Wanted to become President Shot and killed by an enemy in 1935

prior to nomination

Court-Packing Scheme FDR wanted major court reforms after

they had “messed” with the NIRA and AAA

FDR wanted to “lighten the burden” for the Justices – go from 9 judges to as many as 15 – one new for each over the age of 70

Most knew that he wanted to “pack” the court with New Deal supporters

Court Packing…. Critics blasted the President for trying

to inject politics into the court system Uphold the idea of separation of

powers FDR was forced to withdraw his

reform bill Did appoint several new Justices with

retirements – the court became a little more in line with the New Deal

Recession of 1937 Production and employment fell New SS tax coming out of employees

paychecks was partly to blame – less money to spend

Also FDR had cut many expensive programs (WPA)

National Debt rising – total amount of $ that the gov’t has borrowed and has yet to pay back

Recession cont’d Gov’t borrows when its revenue (income)

does not keep up with its expenses To fund all of the New Deal prograns –

massive amounts of money was borrowed 1933 Nat’l Debt $21 billion – $43 billion in

1940 The WPA was expanded and other cut

programs were brought back Slowly unemployment eased and the

economy picked back up – but things would remain sluggish until the 1940’s

Union Membership Rose from 3 million in 1933 to 10.5

million in 1941 – about 11.3% of the total workforce – by 1945 36% were unionized

American Federation of Labor (AFL) United Mine Workers Combo of 7 unions made into the

Committee for Industrial Organization (CIO)

Committee for Industrial Organization (CIO)

By 1938 – the CIO had 4 million members

Changes its name to Congress for Industrial Organizations

John L Lewis became the 1st President It was a coalition – alliance of groups

with similar goals – to challenge conditions in industry – by way of strikes

Back to the Wagner Act… Strengthened collective bargaining and

made management bargain in good faith. However it did not force management to accept union demands

This led to a wave of huge strikes Many were sit-down strikes – sitting down

and refusing to leave – pickets were set up outside – both actions prevented the company from bringing in scabs (substitute workers)

Strikes…

Rubber-tire plants in Akron, Ohio – sit-down strikes in 1936

General Motors plants – UAW members – sit-down strikes.

Main plant in Flint, Michigan – occupied by UAW workers

GM strikes back… Turns off heat in the buildings &

blocked entries to keep food and supplies from the striking workers

Called Police to arrest picketers – violence erupted

UAW wife grabbed a bullhorn and urged the other wives to get involved

Women set up food deliveries, formed a women's brigade to help picket

GM Strike cont’d Michigan Gov. Frank Murphy and Pres.

Roosevelt refused to call in the Militia and eventually GM gave in to the unions demands

Not all strikes were successful – Ford refused to allow unions in his shops

Ford had his men beat UAW members when they tried to give out leaflets to Ford workers in Detroit

Republic Steel Company

May 1937 – Chicago Police killed 10 picketers and injured 84 other unionized workers

The US Supreme Court got involved and outlawed sit-down strikes because they were so effective and such an obstacle to negotiations

New Deal & Culture New books were published about the hard

times faced during the Depression Radio was extremely popular – soap operas

were sponsored by soap companies to entertain the stay at home moms and to get them to buy their product

Opera and symphony music became popular on the radio

Technicolor movies began - $.25 admission Double features and drive-ins began

Movies…. Movies were used by many agencies

to promote their work – FSA documentaries were produced

Comedies and movie musicals became popular

The Wizard of Oz came out in 1939 Walt Disney’s Mickey Mouse cartoons

were very popular Snow White and the 7 Dwarfs - 1937

WPA and the Arts FDR felt that arts should not be given up

simply because of the Depression Writers, historians, artists, musicians and

playwrights were supported by funds from the WPA

Historians wrote state guidebooks and collected the life stories of former slaves

Free music lessons were set up and community symphonies were organized – they were also sent to lumber camps and small towns to preserve folk heritage

More support of the Arts… 2,000 murals, 100,000 paintings,

17,000 sculptures were funded by the gov’t

Theater/plays were performed to created awareness of social problems

House Un-American Activities Committee (HUAC) accused the theater groups of communist activities and funding was cut

New Deal Achievements Many bridges, tunnels, hospitals, dams, and

public buildings are still in use today Some New Deal agencies still exist like…

TVA, FDIC, SEC The Social Security system still operates –

women were initially were excluded from benefits

The greatest achievement was to instill hope in Americans after such a horrible period of time