UNITED STATES HISTORY

Chapter 25:The New Deal

Roosevelt’s First 100 Days Upon election in 1932, FDR promised the American

people a “New Deal” to help the nation’s economy recover

He took several actions in his first 100 days to alleviate the crisis Bank Holiday: closed all banks to assess the health of

the banks, reopening those that were good FDIC: Federal Deposit Insurance Corporation, created in

June 1933, to protect people’s deposits up to $5000 HOLC: Home Owners Loan Corporation helped those

struggling with their mortgages to stay in their homes Many other programs addressed the needy and

job creation

Roosevelt’s First 100 Days FERA: Federal Emergency Relief Administration,

designed to give aid to state and local agencies in help with the unemployed

CWA: Civil Works Administration created jobs such as cleaning of parks

CCC: Civilian Conservation Corps, Roosevelt’s favorite program Sent young men to Army camps for training Provided housing and jobs to millions of men building

roads, parks, planting trees, etc. Earned $30/month, most of which was sent back to

families

Economic Recovery Roosevelt pushed to reform the economy so that a large

scale depression could be lessened or prevented in the future

SEC: Securities and Exchange Commission regulates the trade of stocks and bonds

NIRA: National Industrial Recovery Act, designed to stimulate industrial growth Created the Public Works Administration (PWA) and National

Recovery Administration (NRA) to oversee the program NRA found unconstitutional in 1935

Roosevelt based his thinking on the ideas of John Maynard Keynes, a British economist Keynesian economic theory states that to lessen the shock of a

downturn, the government must spend money to stimulate the economy

Agriculture and Land Development

AAA: Agricultural Adjustment Administration created to help farmers Paid farmers to REDUCE output, which lessened supply,

causing prices to rise As prices were raised, farmers made more money Also struck down by the Supreme Court in 1936

TVA: Tennessee Valley Authority, created to control flooding and build power plants Built dams on rivers throughout the South (TN, AL, GA, KY,

and MS) Created large man-made lakes for recreation, powered the

rural areas of the South, and controlled flooding Overall, created to improve the low standards of Southern

living of the time

The New Deal and Equality Not everybody benefitted from the New Deal Racial tensions were made worse by the Great Depression

Roosevelt did not endorse civil rights legislation, most notably, an anti-lynching law proposed by NAACP

However, FDR did appoint many blacks to government positions, known as the “Black Cabinet”

Eleanor Roosevelt resigned her position in the Daughters of the American Revolution after black singer Marian Anderson was denied performance at DAR’s music hall Mrs. Roosevelt arranged for Anderson to perform a free concert at the

Lincoln Memorial, which 75,000 attended, in 1939 Native Americans suffered greatly, but Roosevelt addressed

concerns Indian Reorganization Act of 1934 reversed the Dawes Act and

returned tribal rule, encouraged education, and preservation of Native culture

New Deal Critics Many were opposed to FDR’s New Deal programs Some of the more prominent ones were Dr. Francis

Townsend, Charles Coughlin and Huey Long Townsend called for a $200/month pension to all seniors,

requiring it to be spent in 30 days Coughlin, a radio priest, wanted the government to take

over all banks and return to the silver standard Long’s ideas were the most radical

Proposed the Share-Our-Wealth program High taxes on the rich would guarantee a minimum income

for all people and a home Gained popular support, but many saw him as trying to

become a dictator Killed by an assassin in 1935, ending the idea

Second New Deal Elections in 1934 gave Democrats more power and the

ability to pass more reform programs These programs became known as the Second New Deal

WPA: Works Progress Administration created public sector jobs, such as building streets, airports, bridges, etc.

NYA: National Youth Administration granted part time jobs to high school and college students

Social Security Act: provided unemployment insurance, retired pensions, and assistance people with disabilities and to families where male workers had died

Revenue Act of 1935: raised taxes on the rich Many other acts were passed as well

The Second New Deal helped catapult FDR to a second term in the election of 1936 Democrats also made gains in both houses of Congress

FDR and the Supreme Court

Because the Court had struck down so many laws passed by FDR and Democrats, he set out to “reform” the court

He asked Congress to allow him to appoint 6 more justices, on top of the 9 already in place

Many, Republicans and Democrats, accused FDR of trying to “pack” the courts with justices favorable to his views Some even felt FDR was acting like a dictator This would upset the balance of powers in the gov’t

However, by 1945, enough justices died or retired that FDR was able to nominate 8 new justices

Effects of the Second New Deal Many laws, including the NIRA were ruled unconstitutional Other laws were passed to counteract Wagner-Connery Act: guaranteed the right to unionize and

collectively bargain AFL still fought for workers, but a new union, the Congress of

Industrial Organizations (CIO) formed as well Led to many strikes, such as the GM strike of 1936-37

Workers held a sit down strike, where they didn’t leave the plant Stayed on strike for 6 weeks before GM gave in to demands and

allowed workers to organize Farmers continued to limit production and were also

granted various types of aid However, a recession hit in 1937 and FDR lost a great deal

of support for his programs, to the point that he do not propose any more major programs

Life During the Depression Many people migrated to California during the Depression

looking for work This mass migration was caused by the Dust Bowl

A severe drought in the Great Plains occurred during the 1930s Winds picked up the topsoil and blew it away It was so severe that ships hundreds of miles away at sea

reported seeing dust clouds Many packed up their belongings and headed west on

Route 66 Competition for jobs in CA was fierce, and people,

especially Mexicans and Filipinos, struggled mightily This life has been preserved in thousands of pictures from

the time period, most famously by Dorothea Lange

The Dust Bowl

Dorothea Lange Hired by the government to document

the life of migrant workers in California Published thousands of photographs that

revealed to the world the suffering of people during the Depression

Migrant Mother

Other Lange Photos

Evaluating the New Deal The New Deal provided millions of jobs to people It also helped keep kids in school, improving

education of the nation However, critics say that it created a welfare

state that exists today and severe deficit spending

Critics also say that the president has too much power because of the New Deal

Supporters say that it was necessary to expand government to prevent another Great Depression

Many aspects exist today, such as the FDIC, SEC, TVA and Social Security

WPA Programs Part of the Works Progress administration was to put artists,

authors, actors, etc. to work Throughout the Depression and New Deal, the WPA helped

produce thousands of works of writing, music, art, and theatre

Several famous authors depicted Depression life in their works John Steinbeck’s The Grapes of Wrath Zora Neale Hurston’s Their Eyes Were Watching God Margaret Mitchell’s Gone with the Wind

Movie studios were also hard at work, creating masterpieces loved to this day The Wizard of Oz Gone with the Wind Mr. Smith Goes to Washington

Music and Art Different types of music gained popularity in the

1930s Country: borrowed from southern folk music Gospel: cross of jazz and spiritual Swing: jazz played by big bands, smoother and easier to

dance to Painters created dozens of masterpieces during the

Depression, none more well known, however, than Grant Wood’s American Gothic

The decade closed out with the United States still not fully recovered from the Depression, but that would all change with the outbreak of World War II in 1939 and the American entry to the war in 1941

American Gothic