Chapter 23 Section 3

Recession of 1937 New Deal did not put an end to the Great Depression  Improvements of the New Deal did not last  Economy collapsed in August 1937 New Social Security tax was partially blamed  Tax left Americans with less money = bought fewer goods FDR cut back on expensive programs (like the WPA)  President distressed by national debt To fund New Deal, government borrowed money.  Debt rose from $21 billion to $43 billion

Unions Triumph Wagner Act provided federal protection and made unions more attractive to workers  Union membership rose from 3 million to 10.5 million  By 1945, 36% was unionized In 1935, the Committee for Industrial Organization was created (CIO) Many strikes occurred during , mainly “sit-down” strikes

New Deal’s Effects on Culture Famous Authors  1. John Steinbeck: Of Mice & Men; Grapes of Wrath  2. Pearl Buck  3. Walker Evans  4. Zora Neale Hurston: Their Eyes Were Watching God Radio was a major source of entertainment Daytime soap operas were created  Walt Disney starts his career FDR thought people shouldn’t give up arts, even in bad times  Federal Music Project/Federal Theater Project: assisted musicians, writers, artists, etc. in their careers

Lasting New Deal Achievements Many New Deal structures and agencies still exist Retired Americans received a pension through the Social Security Administration Women were usually not allowed to have social security because she could lose her benefits if she had children and a man lived with her  Women with children normally did not stay in the work force long enough or earned high enough wages to receive decent benefits from the social security system Greatest achievement of the New Deal was hope  People sent letters to FDR and Eleanor about the suffering in their lives  When recovery came to the US, it started a world war