1. Chapter 21: The New Deal (1932-1940)
Stephanie Arriaga, Claire D’Agostino,
Danyel Hudson, & Alyssa Madulara

2. The First New Deal Franklin D.Roosevelt and the Election of 1932
Franklin D. Roosevelt ran for vice-president on the ill-fated Democratic ticket of 1920 headed by James M. Cox.
Democratic Platform
Roosevelt promised a “new deal” for the American people.
Campaign offered government’s responsibility to guarantee “every man... a right to make a comfortable living”
wanted a balanced federal budget
Republican Platform
President Hoover for excessive government spending.
Democrats’ call for the repeal of Probation because of the economic crisis while Republicans did not
Roosevelt won in 1932 he received 57% of the popular vote.

3. The Coming of The New Deal
In the 1930s conservative governments ruled Britain and France -interested in preserving the public order than relieving suffering or embarking on policy innovations.
EXAMPLES:
-In Germany, Adolf Hitler banned all political opposition and launched a reign of terror against the Jews.
-Soviet Union: Joseph Stalin embarked on successive five-year plans that at great social cost produced rapid industrialization and claimed to have eliminated unemployment
-Militarist government of Japan invaded China in 1937 and hoped to extend its rule through Asia.
Roosevelt saw the New Deal as an alternative to socialism and Nazism
-he hoped to reconcile democracy, individual liberty and economic planning.
Roosevelt didn’t have a planning for dealing with depression so he relied on his advisors such as Louis Brandeis who believed that large corporations had contributed to the Depression and that they should be broken up not regulated.

4. The Banking Crisis
Banks were collapsing as funds invested in the stock market lost their value and panicked depositors withdrew their savings, bank after bank closed its doors.
By March 1933, in the majority of the state people couldn’t gain access to money in their bank accounts because banking was suspended
Roosevelt declared a “black holiday,” which temporarily halting all bank operations and called Congress into a special session.
On March 9 the Emergency Banking Act was passed, which provided funds to assist threatened institutions.
The Glass-Steagall Act barred commercial banks from becoming involved in buying and selling of stocks.
repealed in the 1990s and the Federal Deposit Insurance Corporation was established, which was a government system that insured the accounts of individual depositors.
Roosevelt took the U.S of the gold standard, which severed the link between the country’s currency and its gold reserve making it possible the insurance of more money in hope to stimulate business activity.

6. The NRA
National Recovery Administration (NRA) would work with business leaders to establish industry codes that set standards for output, prices and working conditions.
The New Deal reshaped the understanding of freedom
FDR disagreed with the older idea of liberty based on market competition without government interference.
To win support from the laborers the NRA section 7a recognized the workers’ right to organize unions, which was seen by the workers as the “industrial freedom”
Headed by Hugh S. Johnson the NRA established codes that set standards for production, prices and wages in the textile, steel, mining and auto industries.
Large companies used NRA to drive up prices, limit production, lay off workers and divide markets among themselves and at the expense of smaller competitors.
The NRA produced neither economic recovery nor peace between employers and workers.

8. Government Jobs
Roosevelt feared that direct government payments to the unemployed would undermine individual self-reliance.
Congress created:
Federal Emergency Relief Administration (May 1933)to make local grants to local agencies that aided those impoverished by the Depression.
Civilian Conservation Corps (March 1933) (CCC), which set unemployed young men to work on projects like forest preservation, flood control, and the improvement on national parks and wildlife preserves.
FDR preferred to create temporary jobs to combat unemployment while improving the nation’s infrastructure.
Public Works Administration (PWA) directed by the Secretary of the Interior Harold Ickes, it built roads, schools, hospitals and other public facilities.
Civil Works Administration was launched (Nov.)
January 1934 it employed more than 4 million in the construction of highways,tunnels, courthouses and airports.
The New Deal was criticized:
cost increased
Americans became dependent on government jobs then FDR dissolved the CWA
Tennessee Valley Authority (TVA)
Built dams to prevent floods and deforestation along the Tennessee River
to provide cheap electric power for homes and factories
TVA put the federal government in the business of selling electricity

10. The New Deal and Agriculture
The Agricultural Adjustment Act (AAA) authorized the federal government to try to raise farm prices by selling production quotas for major crops and paying farmers not to plant anymore.
In 1933, the government ordered more than 6 million pigs to be slaughtered as part of the policy and were criticized because of the widespread hunger.
AAA succeeded in raising farm prices and incomes, but not all farmers benefited Benefits only flowed to property-owning farmers and the policy of paying landowning farmers not to grow crops encouraged the evictions of thousands of poor tenants and sharecroppers.
1930 a period of unusually dry weather worsened the impact of the Depression on rural Americans.
Winds blew the soil away creating the Dust Bowl as the affected areas of Oklahoma, Texas, Kansas and Colorado were called.

12. The New Deal and Housing
The Depression devastated the housing industry.
the construction of housing ceased
banks, savings and loans associations that had financed home ownership collapsed or to remain afloat, foreclosed many homes.
The Home Owners Loan Corporation and Federal Housing Administration (FHA) insured millions of long-term mortgages issued by private banks.
federal government built thousand of units of low-rent housing.
Roosevelt’s first 2 years in office included
ratification of the 21st Amendment which repealed Prohibition
Federal Communication Commission oversaw the nation’s broadcast airwaves and telephone
Securities and Exchange Commission to regulate the stock and bond markets.
The First New Deal transformed the federal government
constructed numerous facilities
provided relief to millions of the needy people but did not end the Depression.

13. The Court and The New Deal
In 1934, the Supreme Court still controlled by the conservative Republican judges who began to invalidate New Deal laws.
First came the NRA declared unconstitutional in a case brought by Schechter Poultry Company of Brooklyn
The court declared NRA unlawful because in its codes and other regulations it deregulated legislative powers to the president and attempted to regulate local businesses that didn’t engage in interstate commerce.
In January 1936, the AAA fell in the United States v. Butler, which declared it unconstitutional exercise of congressional power over local economic activities.
In June, by 5-4 vote the justices ruled that New York could not establish a minimum wage for women and children.

14. The Grassroots Revolt Labor’s Great Upheaval
The Fed. Gov. seemed to be on the side of labor, a commitment embodied in the National Industrial Recovery Act and in the Wagner Act .
A cadre of militant labor leaders provided leadership to the labor upsurge.
American factories at the outset of the New Deal were miniature dictatorships causing worker’s demands during the 1930’s to go beyond better wages through support from the gov.
Roosevelt's election as president did much to rekindle hope among labor
Labor’s great upheaval exploded in 1934 winning some of the worker’s demands, but the textile strike failed.

15. The Grassroots Revolt
In 1934, thirty AFL (American Federation of Labor) leaders called for the creation of unions of industrial workers.
AFL convention of 1935 refused, and the head United Mine Workers, John Lewis led walkout that created CIO (Congress of Industrial Organizations)
CIO set out to create unions in the main bastions of American economy aiming to secure for American workers- a fair share in the wealth produced by their labor, and a voice.
Dec the United Auto Workers (UAW) fledged CIO and instead of walking out, unveiled the sit-down
“They made a palace out of what had been their prison”
Steelworkers suffered memorable defeats in the struggle for unionization, but in March 1937 co. agreed to recognize the Steel Workers Organizing Committee
Union membership reached 9 mil. by 1940
Unions won in say in workplace management, right to contest amt and pace of work, introduction of new tech, new grievance procedures, seniority of hiring, firing, and promotions.
CIO unions helped stabilize situations and offered sense of freedom and dignity

17. The Grassroots Revolt
The labor upsurge altered the balance of economic power and propelled to the forefront of politics labor’s goal of a fairer, freer, more equal America.
CIO put forward an ambitious program for Fed. action to shield Americans from economic and social insecurity.
CIO explained the depression as the result of an imbalance of wealth and income.
Unions argued their cooperation w gov was to “create a consumers demand” by raising wages and distributing wealth.
By mid-decade many new-dealers accepted the “underconsumptionist” explanation of the depression
Concluded that the gov must act to raise dramatically wage earners’ share of national income.

18. The Second New Deal
Roosevelt launched the Second New Deal in 1935, the first emphasized economic recovery, while the second focused on economic security -a guarantee the Americans would be protected against unemployment and poverty
The idea that lack of consumer demand caused the depression was popularized by Huey Long and Francis Townsend
New Dealers had concluded that the government should no longer try to plan business recovery but should try to redistribute the national income
Because of weak demand and economic inequality, congress highly taxed large fortune and corporate profits
The Rural Electrification Agency (REA)
brought electric power to homes that lacked it
most successful programs of the Second New Deal
The Second New Deal failed to arrest the trend towards large farm and fewer farms

19. The WPA and the Wagner Act
In 1934, Roosevelt approved the Works Progress Administration (WPA)
Built public works (buildings, bridges, roads, swimming pools, sewage treatment plans, etc)
Employed many out-of-work white-collar workers like doctors or dentists
Wagner Act “Labor’s Magna Carta”
National Labor Relations supervise elections for union representors
outlawed blacklisting and firing
protect the rights of the Union
Robert Wagner promised unionization and higher wages would aid economic recovery by boosting the purchasing power of ordinary Americans
Keynesian Economics, farmers and laborers joining hands to produce prosperity

20. WPA brings Art to America

21. The American Welfare State and the Idea of Freedom
Social Security Act (1935), system of unemployment insurance, old age pension, and aid to the disabled, elderly poor, and families with dependent children
launched the American vision of the welfare state - a system o9f income assistance, health coverage, and social service for all
critics said that the New Deal was “reckless spending” that undermined fiscal responsibilities and restricted American freedom
To mobilize opposition to Roosevelt’s policies, The American Liberty League was formed
Robert Taft accused Roosevelt of sacrificing “individual freedom” in a misguided effort to “improve the conditions of the poor”
The US Chamber of Commerce charged FDR with attempt to “sovietize” America
The New Deal, “the stupendous invasion of t6he whole spirit of liberty”

22. The Election of 1936
The central issue for the presidential campaign of 1936 was the “ideal of freedom”
Democratic Platform
FDR, who believed in a modern economy that the government had an obligation to establish a “democracy o9f opportunity fo9r all the people”
economic rights were the precondition for liberty- poor men “are not free men”
Republican Platform
Alfred Landon, denounced Social Security and other measure as threats to industrial liberty
Roosevelt won in a landslide with more than 60% of votes

23. The Court Fight
As President FDR aimed to change the balance of power of the Court because he feared the Social Security, Wagner Act, and other measures of the Second New Deal would be invalidated
“Court-packing Plan”
extend the Supreme Court to as many as 15 judges
to make more efficient, but many cried of an aspiring dictator

24. The End of the Second New Deal
United States Housing Act of 1937 was the first national effort to build homes for the poorest Americans
Fair Labor Standards Bill proposed in 1938 barred goods produced by children from interstate commerce, set 40 cents as minimum hourly wage, and required overtime pay for hours of work that exceeded 40 hours a week.
Roosevelt reduced federal funding for farm subsidies and WPA work relief because economic conditions were improving, but doing so caused government spending, business investments, industrial production to fall and caused unemployment rates to drop to 20% from 14%
John Keynes, author of the General Theory of Employment, Interest, and Money, insisted large scale government spending was necessary to sustain purchasing power and stimulate economic activity during downturns
Roosevelt asked congress for billions more for work relief and farm aid and by the end of the year the crisis had passed.
Public spending would now be the governments main tool for combating unemployment and stimulating economic growth

26. The Limits of Change
How did the New Deal benefits apply to women and minorities?
How did the New Deal not benefit women and minorities?

27. The Limits of Change (the new deal and american women)
The New deal brought more women into the Government.
Eleanor Roosevelt had changed the role of being first lady from doing nothing to having responsibilities.
She worked to enlarge the idea of the New Deal in areas like: Civil rights, Labor legislation & work relief.
More women were being introduced into the workforce after the depression, the Government was not happy and tried to stop that in its tracks.
The Economy Act of 1932: prohibited both members of a married couple from holding federal jobs -> repealed in 1937.
Many states prohibited the hiring of women when their man earned a “Living wage”
Women were supposed to depend on men.
Most Social Security programs left women uncovered. Secretary of labor (Frances Perkins) tried to question that idea.

28. Who is Eleanor and who is Frances?

29. The Limits of Change (the southern Veto)
Roosevelt shaped the federal government into a symbolic representative of all people including: Racial & ethnic groups.
The power of the Solid South helped mold the New deal welfare for white americans.
When Blacks lost their right to vote, many white Democratic members of Congress and took advantage of that role..
Congressman Ernest Lundeen introduced a bill establishing a federally controlled system of :
Old age
Unemployment
health benefits
Benefitted female heads of households
Was supported by NAACP & the Urban League

30. The limits of change (the stigma of welfare)
The Public assistance program (est. by Social Security) gave aid to dependent children and the poor elderly.
Benefits were extremely low, which made the plan backfire
Welfare is introduced : financial support given to people in need.
Backfired because many people needed welfare, money was running out.
Government abolished the responsibility for welfare in 1996.

31. The limits of change (the indian new deal)
John Collier launched the “Indian New Deal” : forced assimilation and allowed Indians unprecedented cultural autonomy.
Indian Reorganization act of 1934: ended the Dawes Act of 1887
The New Deal was not very beneficial to Indians.
The building of the Grand Coulee Dam blocked water flow, where they would fish and hunt. Government did nothing to restore their irrigation water source.

32. The limits of change (The new deal and Mexican Americans)
More than 400,000 people of the Mexican origin returned back to Mexico.
Some who stayed mostly worked in California’s vegetable and fruit farms. (The New Deals dam benefitted these farms)
In 1939, Carey McWilliams wrote a book called “Factories in the Field” exposed low wages, bad housing, and political repression under which a migrant suffered.
Mexican-American leaders struggled to not have their people suffer like African Americans.
Introduced La Raza - helped get their pride out.

34. The Limits of change (A new deal for blacks)
Mary McLeod Bethune (appointed by Roosevelt) acted as a special adviser on minority affairs.
Blacks abandoned Lincoln's party and emancipation in favor or the Democrats and the
New deal.
An anti-lynching plan was
introduced and FDR had little
to none support for it.

35. The Limits of change (federal Discrimination)
In the north and the south, buildings built or financially aided by the federal government should be racially segregated. (Whites, blacks, and Mexicans)
The Federal Housing Administration
had no hesitation to not sell to non-whites.
In the south, many New Deal projects
refused to hire blacks at all.

36. A New Conception of America
How Did the popular Front Influence American Culture in the 1930’s?
Who is this ? ->

37. The New Conception Of America (The heyday of american communism)
The CIO and Communist Party became a “goal” for a broad social and intellectual impulse to help redraw the boundaries of American Freedom
Belief that Depression demonstrated the bankruptcy of capitalism
Held demonstrations of the:
Unemployed,
struggles for industrial unionism
renewed movement for black civil rights
Communist party tried to inspire people about the New Deal liberalism with a militant spirit and pluralistic understanding of Americanism

38. The populist front wanted to promote the idea that the country’s strength lay in:
Diversity
Tolerance
Rejection of the ethnic prejudice and class privilege.
Earl Browder (the communist party’s leader) was on the cover of Time magazine
The CIO embraced cultural pluralism - an idea that the self-defence of ethnic and Catholic communities against enforced Americanization.
“Ballad for America” - song expressing the Popular Front culture that celebrated religious, racial and ethnic diversity in American society.

39. The New Conception Of America (Challenging the color line)
Communism influence spreaded to the south.
The Communist-dominated International Labor Defense mobilized popular support for black defendants victimized by racism in the criminal justice system
Helped make the scottsboro case an international cause for celebre.
(a young black man was arrested for the rape of two white women in Alabama )
The CIO started allowing black members into the movement and hoped that whites would interact better with them.
Union promised the offer of higher wages, dignity in the workplace & no difficulty to persuade black workers to unionization.

40. The New Conception Of America (Labor and Civil Liberties)
A central element of Popular Front public culture was its mobilization for civil liberties, especially the right of labor to organize.
By the eve of WWII , civil liberties had assumed a central place in the New Deal understanding of freedom.
The idea of free thought and expression was introduced and thought to be essential.
Un-American Activities Committee was brought out to investigate disloyalty.
Un-American : communists, labor radicals and the left of the Democratic party.
Smith Act -a federal crime to “teach, advocate or encourage” the other throw of the government

41. The New Conception Of America (the end of the new deal)
The end was near - Roosevelt was losing his southern followers.
The Southern Conference for Human Welfare was founded by a new generation of homegrown radicals- southern New Dealers, black activists, labor leaders,& communists) and was used for work for unionization, unemployment relief and racial justice.
Congress began to abolish existing reform initiatives.
Congress repealed an earlier tax on corporate profits and rejected a proposed program of national medical insurance, focused their attention on the issues in Europe. (even before the US entered WWII)

42. The New Conception Of America (The new deal in american history)
New deal failed to address the problem of racial inequality, in ways the situation got worse.
greatly expanded the federal government's role in the american economy.
made it in independent force in relations between industry and labor.
Social Security remained restricted.
Failed to generate sustained prosperity, more than 15 percent of the workforce remained unemployed