The Depression and the New Deal

1920’s Politics Warren G. Harding 1921-1923 (Died in Office) Calvin Coolidge 1925-1929 Herbert Hoover 1929-1933 Three Republican presidents led the nation after the turbulence of WWI on the roller coaster of the 1920’s Sought less direct government to support the public good and relied heavily on cooperation between D.C. and Corporations. Also, United States returned to its tradition of isolationism and reduced military

“I sympathize deeply with you, Madam, but I cannot associate with you,” 1923 President Harding’s secretary of state, Charles Evans Hughes, broke the news to a desperate, war-tattered Europe that America was going, and staying, home. The Granger Collection

Warren G. Harding A well-liked man who was known as for his easy going personality and love of people However, he was overwhelmed with the job and had a difficult time detecting morally corrupt friends and confidants. (Like Grant) “He was not a bad man, he was just a slob.” Influenced by the “Ohio Gang.”

Warren G. Harding His cabinet Charles Evans Hughes- Secretary of State Andrew Mellon- Secretary of the Treasury Herbert Hoover- Secretary of Commerce Albert Fall- Secretary of the Interior Harry Daugherty- Attorney General Albert Fall considered a wolf in sheep clothing. Daugherty was essentially a big time crook

1920’s Politics As Harding assembled his team, it was apparent the old guard Republicans, lovers of laissez-faire and big business returned to Washington. Idea that Washington was there to help business make hefty profits This essentially ended the reforms of the Progressive era with Harding’s election

Supreme Court Harding lived less than 3 years as President but appointed 4 justices Chief justice was ex-president Taft. Harding’s Supreme Court Killed federal child labor laws Stripped away gains by labor Restricted government intervention in the economy Adkins v Children’s Hospital-revered Muller v. Oregon Leads to debate about legal equality of women

Big Business Flourished under Harding as Anti-trust laws were ignored For example, ICC led by men sympathetic to railroad industrialists Idea that businesses should regulate themselves and not the government regulate business dominated under Harding and his cabinet.

Aftermath of War Wartime government controls were stopped once the war ended War Industries Board- Dismantled almost immediately Railroads returned to private management after the war Esch-Cummings Transportation Act- not save the country from railroads, but save the railroads for the country Labor Unions also were harmed by the Republican policies Union membership declined by 30 percent and federal government used injunctions to break strikes

Veteran’s Bureau Established in 1921 to operate hospitals provide vocational rehabilitation for disabled veterans American Legion formed. Many soldiers demanded compensation for the war in lost wages Adjusted Compensation Act- passed in 1924.

Peace with Germany and Foreign Policy July 1921, Congress passed a joint resolution that the war had ended. (Had to do this because US did not sign the Treaty of Versailles) Middle East gained importance geopolitically as oil was deemed vital to defense and also domestic consumption Hughes secured vital concessions for Americans to share in the oil of the Middle east

Washington Conference Intended to reduce the size of Navies and also situation in Far East Hughes Plan 10 year suspension of the building of battleships and even scraping some already built Wanted a ratio of 5:5:3 for size of British, American, and Japanese navies

Five Power Naval Treaty Ratio of 5:5:3 was kept, but Japan was compensated for accepting it. British and Americans agreed to not fortify Far East possessions Four Power Treaty- France, Britain, Japan and US agreed to a status quo in Navies in the Pacific But all this was fake, because no limit on small ships. So cruisers, destroyers and submarines were built.

Washington Disarmament Conference (1921-1922) Long-standing Anglo-Japanese alliance (1902) obligated Britain to aid Japan in the event of a Japanese war with the United States. Goals  naval disarmament and the political situation in the Far East.

Five-Power Treaty (1922) A battleship ratio was achieved through this ratio: US Britain Japan France Italy 5 5 3 1.67 1.67 Japan got a guarantee that the US and Britain would stop fortifying their Far East territories [including the Philippines]. Loophole  no restrictions on small warships

Kellogg-Briand Pact In 1928, signed by 62 nations, outlawed war. But defensive wars still allowed. Lacked muscle and teeth But it reflected America’s desire to have security, even if it was under false pretenses.

Tariff under Harding In 1922, Congress passed the Fordney-McCumber Tariff. Set rates at 38.5 percent Tariff Commission Allowed the President to change rates based on need up to 50 percent Harding and Coolidge increased rates 32 times and only reduced 5 times High Tariffs were detrimental to European recovery- Why? 1. Europeans needed to sell their goods to pay back U.S. loans 2. U.S needed other nations to gain in wealth by selling their goods so that they could buy American goods and also repay loans. U.S. misunderstood that international trade is a 2-way street In response, the Europeans raised their tariff rates, which all together slowed European economic recovery

Harding Scandals Forbes Scandal Teapot Dome Scandal Head of the Veterans Bureau Appointed by Harding He and his accomplices looted the federal government of nearly 200 million dollars Teapot Dome Scandal Albert Fall, secretary of the Interior Gave precious oil reserves at Teapot Dome and Elk Hills to two business associates in exchange for kickback money. Harding signed secret order to turn over the reserves to the Department of Interior Teapot Dome made many question the moral fabric of Washington since precious resources for the Navy were sold for individual profit. Trust in the government waned Also, fact that the bribers did not get jail time also ruined people’s trust in the courts, making many belive that only the rich got off

Washington Officials Trying to Outpace the Teapot Dome Scandal, c. 1922 Corruption ran rampant during the Harding administration, the most famous example being the Teapot Dome Sandal of 1922. High ranking officials in the Department of the Interior and the secretary of the navy, transferred priceless naval oil reserves to the Interior Department and from there illicitly leased those properties to leading oilmen for bribe "loans." Although none of this directly involved Harding himself, he blindly signed the paperwork authorizing the deal and the stigma of the long, difficult trial overhung the rest of his term in office. The Granger Collection

Harding Scandals Daugherty Scandal Illegal sales of pardons and liquor permits Harding was implicated but not deemed fully responsible in each of these scandals. On speechmaking tour to Alaska, he died from complications from a heart attack and pneumonia in San Francisco. Harding was not strong enough leader and judge of character. Consequently, government had worst scandals since Grant’s administration

Silent Cal Calvin Coolidge was sworn in as president by his father at their family farmhouse. Coolidge embodied New England characteristics of morality, honesty, industry, and frugality A mediocre leader, he was prone to bouts of silence and was not a great public speaker “man who builds a factory builds a temple” “man who works there worships there” Supporter of Big Business like his predecessor. But his five years in office were full of economic growth and gain. He was thoroughly hands off and supported Mellon's reduced taxes and debt philosophies

Cash Register Chorus Business croons its appreciation of “Coolidge prosperity.” Used by permission, State Historical Society of Missouri, Columbia

Farmer’s Plight (again) Wartime brought enormous profits as \the government gave high prices and foreign demands increased as foreign supply decreased. But, post war period during 20’s was a tough one for farmers. No more government high prices Less foreign demand More foreign competition Also, the tractor allowed for more cultivation of land and higher outputs by farmers. Less horses, less hired hands, but a crap load of surplus as at a time when world prices were decreasing. So, farmers are going in debt again as they purchase more land and more equipment, but food prices do not support growth.

Just as the automobile replaced the horse on city streets, so did the gas-engine tractor replace horses and mules on the nation’s farms in the 1920s. American farmers owned ten times more tractors in 1930 than they had in 1920. The smoke-belching tractors bolstered productivity but also increased the farmers’ debt burden, as the Great Depression made tragically clear. Library of Congress

Farmer’s Help Capper-Volstead Act McNary-Haugen Bill Farmers marketing cooperatives were except from Anti-trust laws McNary-Haugen Bill Have government buys surpluses and sell them aboard (keep prices high then) Government losses would be recouped by a tax on farmers (Coolidge vetoed bill twice) So in 1924, farmers were pretty annoyed and angry

Presidential Election of 1924 (showing popular vote by county) Note the concentration of La Follette’s votes in the old Populist strongholds of the Midwest and the mountain states. His ticket did especially well in the grain-growing districts battered by the postwar slump in agricultural prices. Copyright (c) Houghton Mifflin Company. All Rights Reserved.

1924 Election Republicans choose Coolidge Democrats are split Wet v dry Urbanites v farmers Fundamentalists v modernists Immigrants v nativists South v North Deadlocked for 102 ballots Nominated John Davis La Follette of Wisconsin lead a revival of Progressive Party and gained their nomination (mostly supported by farmers) Polled 5 million votes La Follettr brought a liberal voice to the conversation in the mostly conservative 20’s

Foreign Policy Isolationism ruled the day, except for in the Caribbean and Latin America Troops withdrawn from Dominican republic in 1924 Troops in Haiti from 1914-1934 Nicaragua, troops removed but returned in 1926 Oil in Mexico almost led to guns being shot, but caused Mexico to further distrust US.

Debt 10 Billion owed to US. They want their money France and Britain say no Paid price in men waiting for Americans America got rich and out of recession due to war. America had huge tariffs making it impossible to pays debts France and Britain also needed money from Germany and wanted it

European Debts to the US

Hyper-Inflation in Germany: 1923

Dawes Plan (1924)

Aspects of the Financial Merry-go-round, 1921–1933 Great Britain, with a debt of over $4 billion owed to the U.S. Treasury, had a huge stake in proposals for inter-Allied debt cancellation, but France’s stake was even larger. Less prosperous than Britain in the 1920s and more battered by the war, which had been fought on its soil, France owed nearly $3.5 billion to the United States and additional billions to Britain. Copyright (c) Houghton Mifflin Company. All Rights Reserved.

1928 Election Democrats: Republicans Nominated 4-time governor Alfred Smith Very colorful personality (wisecracking, hobnobbing, backslapping, and a known “wet.”) Very urban Very Catholic So, many Fundamentalist southerners who were very dry and very rural were against his nomination and aligned him with a very rural and dry vice-president Republicans Herbert Hoover Radio plays a significant role in the election for the first time, with Hoover coming across much better than Smith.

Herbert Hoover Living example of American success story Poor orphaned boy who worked hard to go to Stanford Embodied rugged individualism, industry, self-reliance, and thrift Worked extensively abroad which helped him appreciate American even more. Championed individualism, free enterprise and small government However, never elected to public office, so not prepared for the campaign trail nor the life of a politician seeking votes

Herbert Hoover The ideal businessman candidate Campaign of 1928 Self-made millionaire Anti-socialism, paternalism, or planned economy However, some progressive leanings Endorsed labor unions as Secretary of Commerce and allowed regulation of radio (even considered a government owned radio like the BBC) Campaign of 1928 Smear campaign by both sides, but not necessarily Smith and Hoover “A vote for Smith is a vote for the Pope.” Rum, Romanism, and Ruin” Smith doomed by the fact he was a Catholic, a wet, an urbanite and liberal. Southern democrats voted Hoover and not Smith

Presidential Election of 1928 (with electoral vote Smith, despite his defeat, managed to poll almost as many votes as the victorious Coolidge had in 1924. By attracting to the party an immense urban or “sidewalk” vote, the breezy New Yorker foreshadowed Roosevelt’s New Deal victory in 1932, when the Democrats patched together the solid South and the urban North. A cruel joke had Smith cabling the Pope a single word after the election: “Unpack.” Copyright (c) Houghton Mifflin Company. All Rights Reserved.

Hoover’s First Moves Aiding Farmers Hoover’s administration believed in self-help. Agricultural Marketing Act Help farmers form producers cooperatives Federal Farm Board 500 million at their disposal that was lent to farm organizations to buy, sell, and store surpluses Grain Stabilization and Cotton Stabilization Cooperation 1930- Goal was to buy up surpluses and help with sagging prices

Smoot-Hawley Tariff of 1930 Started in the House to protect farmers, but by time got through he Senate, it had over a thousand amendments (lobbyists) Highest protective tariff in peacetime Raised the Fordney-McCumber from 38.5 to 60 percent Foreigners saw this as tantamount to economic warfare Plunge nations into deeper recession Forced US into economic isolation And strained the international financial chaos of 1930

The Great Crash Oct. 29, 1929 is known as Black Tuesday Nation was appeared destined to continued progress, but dark cloud hung overhead Stock prices continued to rise unnaturally America was buying too much on credit Farm belt in Midwest was drown in debt Progress was built in many ways on “fool’s paradise of paper profits.” On black Tuesday, investors started to dumb their stocks, and 16,410,030 stocks sold on that day. 2 months after the crash, total losses equaled 40 Billion dollars. More than the cost of World War I for the United States

Effects of the Crash The Crash was the impetus that pushed the world over the precipice to economic depression that is the worst in US history End of 1930, 4 million unemployed. By 1932, their were 12 million unemployed Salaries and wages were slashed Work nearly impossible to find 5,000 banks closed, along with life savings and people’s money Breadlines and soup lines were long and filled with many previously wealthy and middle class families

The Unemployed, by John Langley Howard, 1937 In this painting Howard soberly evokes the dispirited state of millions of unemployed Americans during the depression. Oakland Museum

Causes of the Great Depression _a) Unequal distribution of wealth, income and purchasing power among the classes. _b) Overexpansion of agricultural production left over from WWI. _c) Overproduction of industrial output. _d) Automation _e) Unregulated banking practices _f) American tariff policies (Smoot Hawley) _g) Impact of European and world economy _h) Monopolistic pricing _i) Philosophy and policies of the Harding – Hoover administrations. _j) Overexpansion of credit _k) Stock market speculation

“Hooverville” in Seattle, 1934 In the early years of the depression, desperate, homeless people constructed shacks out of scavenged materials. These shantytowns sprang up in cities across the country. © Bettmann/ CORBIS

Hoover’s Response Hoover was not prepared (nor should have been expected to be) to address the turmoil of the crash and depression Hoover struggled with two conflicting ideas 1. He is a humanitarian and wished to help people 2. he supported limited government and believed in self help, not governmental help. Strong believer in the virtues of industry, thrift, and self reliance, he felt that giving out government dole would destroy the national ethos. However, after realizing that people were in dire need of help, he accepted the idea that the “welfare of the people in a nationwide catastrophe is a direct concern of the federal government.”

Hoover’s Response In attempt to help, Hoover decided to directly aid the railroads, banks, and rural credit institutions Idea is that if the top of the economic pyramid is assisted, then unemployment would improve through a trickle down approach. Many criticized that the man who fed Belgians on government money would not feed Americans, but bailed out large corporations However, it is likely that Hoover’s policies prevented the depression from getting worse, and also laid the groundwork for FDR’s New Deal

Hoover’s Response Hoover also got Congress to agree to appropriate 2.25 billion dollars for public works projects Hoover Dam In 1932, the Reconstruction Finance Corporation 500 million, became a governmental lending bank meant for railroads, insurance companies, banks, agriculture and state and local governments But not for individual citizens Norris-LaGuardia Anti-Injunction Act Outlawed yellow dog contracts and forbade the courts to issue injunctions against strikes, boycotts, or peaceful picketing

Bonus Army Bonus Expeditionary Force (BEF) demanded from Congress an early payment of their bonus owed to them in 1945 Congress did not pass the early Bonus bill, and the army that descended on Washington was asked to leave. MacArthur (of WWII fame) forcibly moved the Bonus army with bayonets and tear gas

Japanese Aggression in Manchuria This American cartoon lambastes Japan for disregarding international treaty agreements when it seized Manchuria in 1931. The next year the Japanese would set up the puppet state of Manchukuo. The Granger Collection

Japanese Attack Manchuria (1931) League of Nations condemned the action. Japan leaves the League. Hoover wanted no part in an American military action in the Far East.

Hoover-Stimpson Doctrine (1932) US would not recognize any territorial acquisitions that were achieved by force. Japan was infuriated because the US had conquered new territories a few decades earlier. Japan bombed Shanghai in 1932  massive casualties.

Secretary of State J. Reuben Clark Clark Memorandum (1928) Clark pledged that the US would not intervene in Latin American affairs in order to protect US property rights. This was a complete rebuke of the Roosevelt Corollary to the Monroe Doctrine! Precursor to FDR’s Good Neighbor Policy Secretary of State J. Reuben Clark

FDR’s “Good Neighbor” Policy Important to have all nations in the Western Hemisphere united in lieu of foreign aggressions. FDR  The good neighbor respects himself and the rights of others. Policy of non-intervention and cooperation.

1932 Election Unemployment levels had reached 11 million people. That accounted for 25% of the workforce. As a result, the election focused on ways to alleviate the pain from depression: Republicans: Herbert Hoover nominated with a platform that highlighted his anti-depression policies and halfheartedly called for a repeal of prohibition.

1932 Election Democrats turned to Franklin Delano Roosevelt, 5th cousin of Teddy. Former legislature in New York, governor of New York, candidate for vice-presidency, and also assistant secretary to the navy. In many ways, Roosevelt's struggle with polio shaped him as a politician. It schooled him in patience, tolerance, compassion, and the strength of will. Another great asset was his wife Eleanor.

Eleanor Roosevelt By far one of the strongest first ladies. Known as “Conscience of the New Deal” Her husband’s political career was very much hers as well. Battled for the impoverished and the oppressed

1932 election FDR believed that money was expendable, but not humanity. Consequently, this idea will shape his policies in trying to curb the Great Depression. He was also a great speaker and his record as governor of New York made him an attractive option for president. Democratic platform: Repeal of prohibition Attacked Hoover’s depression policies Sweeping economic and social reforms Balanced budget

1932 Election FDR won by a landslide. Popular Vote was 57% to 40% and Electoral vote was 472-59. Overall, American people were Ready to give Roosevelt and the Democrats a chance at solving The Depression mostly due to the Ineffectiveness of Hoover’s Policies. In this election, marked the first time that black voters moved away from eh Republican party and voted Democratic. Lame Duck period difficult because Roosevelt did not want to take charge until formally given the role of president. Thus, for a long and agonizing 4 months, the depression got worse.

Three R’s of the New Deal Relief- get people immediate food and shelter Recovery-get people jobs, so they have money to spend, so that factories and businesses can hire again And Reform -make long-term change to the laissez-faire capitalistic policies to make it more fair and equitable for all Americans

Monetary and Banking Relief From March 6-10 1933, Roosevelt declared them bank holidays to restructure banking to make it safe again to make deposits. Two banking laws passed: Emergency Banking Relief Act of 1933 Gave president power to regulate banking transactions and foreign exchange. Also gave him power to reopen solvent banks. Glass-Steagall Banking Reform Act Established the FDIC, insured deposits up to 5,000 dollars. (Today it is $250,000 per account) This help end the embarrassment of bank closures and protected deposits

Monetary and Banking Relief To protect against the hoarding of gold and protect the dwindling gold reserve, Roosevelt ordered all private gold to be surrendered to the Treasury in exchange for paper currency. He also took the country off the gold standard Roosevelt established a “managed currency” Goal was inflation to relieve debtors and stimulate new production. Gold increased from $21 a ounce to $35 an ounce. People traded in their gold for the elevated price and this helped increase available currency. Thus, infaltion occurred. This scheme came to an end in February of 1934. Gold standard returned on a limited basis for foreign trade.

Further Relief Civilian Conservations Corp Federal Emergency relief Act (Federal Emergency Relief Administration) Agricultural Adjustment Act Civil Works Administration All passed in 1933

Civilian Conservations Corp CCC 3 million uniformed young men sent to work at camps to perform reforestation and conservation tasks (firefighting, swamp drainage, flood control). Removed surplus of workers from cities, provided healthy conditions for boys, provided money for families Both natural resources and also human resources were conserved, especially because it kept many of these young men from committing crimes during the depression

Federal Emergency Relief Act FERA Established the Federal Emergency Relief Association Distributed billions of dollars of direct aid to unemployed workers Harry Hopkins was in charge of the agency Main goal was to distribute money to states for direct assistance to unemployed citizens, preferably for wages on work projects

Agriculture Adjustment Act AAA Protected farmers from price drops by providing crop subsidies to reduce production, educational programs to teach methods of preventing soil erosion. Also gave millions of dollars to help farmers pay their mortgages

Home Owners Loan Corporation HOLC Refinance mortgages on non-farm housing. Assisted about 1 million households. This also indirectly assisted mortgage lending banks. Lastly, helped secure the middle class to the Democratic Party

Civil Works Administration CWA Provided public works jobs at $15/week to four million workers in 1934. It was a branch of FERA, also led by Harry Hopkins Most jobs were considered make-work jobs like leaf raking. Many criticized the agency because they stated “ The only thing we have to fear is work itself.”

Demagogues Father Charles Coughlin Radio priest, had 40 million listeners. Spoke in favor of Roosevelt and the New Deal but later changed and argued against the New Deal. His rants became very anti-Semitic and fascistic, in support of some of the ideas from Hitler and Mussolini. In 1942, his superiors kicked him off the air. He was a priest at Royal Oak Shrine.

Demagogues Senator Huey Long From Louisiana, supported his “Share our Wealth” program. Every family was to receive 5,000 dollars, at the expense of the prosperous. He was shot by an assassin in Louisiana in 1935, out of fear of Long becoming a fascist dictator.

Demagogues Dr. Francis E. Townsend Retired doctor from California, gained the support of 5 million senior citizens Called for any citizen over 60 years of age to get 200 dollars per month that must be spent each month. Scheme was estimated to cost half of the national income.

Works Progress Administration Authorized in 1935, WPA was launched to help curtail the rise of these proposals from men like Coughlin, Townsend, and Long. Goal was employment on useful projects. Spent 11 million dollars on public buildings, bridges, and roads for infrastructure Over a 8 year period, 9 million people given jobs. Some jobs given to artists, musicians, and writers. Over 1 million pieces of art were created.

Advancements for Women Frances Perkins Secretary of Labor, first cabinet member Mary McLeod Bethune Director of Office of Minority Affairs. She was highest ranking African-American in Roosevelt's office Ruth Benedict Made huge strides in field of Anthropology with her book Patterns of Culture Margaret Mead Student of Benedict. She became curator at American Museum of Natural History and made cultural anthropology a more accepted and popular social science. Pearl Buck Novelist, won Nobel Prize for Literature in 1938 for The Good Earth

National Recovery Administration Passed in 1933, NRA was designed to assist industry, labor, and the unemployed Created NRA to enforce codes of fair competition, minimum wages, and to permit collective bargaining of workers. Labor can collectively bargain through representation of their own choosing Blue eagle adopted as symbol But in the end the program asked for too much self-sacrifice from labor, industry, and management.

Public Works Administration Intended for unemployment and industrial recovery. Long-range recovery was the primary purpose. 4 billion spent on some 34,000 projects, including buildings, highways, and parks. Built the Grand Coulee Dam on the Columbia River. Liquor Industry benefitted too because of taxes generated from the sale of liquor. 3.2 percent, light wine and beer.

Dust Bowl Due to prolonged drought and poor soil conservation techniques, the winds of the Great Plains whipped up enormous dust storms. Many ways caused by human mistakes High Wheat prices drove many to till more land Tractor and new plow allowed for more land to be tore up Dry-farming was continued Consequently, the soil lost its nutrients and couple that with the drought and it became so loose and dry, the winds were able to whip up huge storms.

Dust Bowl

Dust Bowl 350,000 Okies and Arkies migrated from Oklahoma and Arkansas to southern California Their story was vividly told by John Steinbeck in the The Grapes of Wrath Relief for Dust Bowlers Frazier-Lemke Farm Bankruptcy Act Resettlement Act 200 Million trees planted by CCC

Indian New Deal John Collier, head of Department of Indian Affairs, wanted to reverse the forced assimilation policies from the Dawes Act. Indian reorganization Act of 1934 Encouraged tribes to establish self-government Preserve native crafts and traditions Helped stop loss of lands Revived interest in Native American identity and culture 200 established tribal governments, by 75 refused, thinking it was a ruse to gain museum artifacts and museum pieces out of the Native Americans

Federal Securities Act Passed during the 100 days Congress, it required stock brokers to give the investor sworn information about the soundness and stability of their stocks and bonds 1934, Congress pass the Securities and Exchange Commission (SEC) Serves as a watchdog of the stock market Made stock markets more of a trading mart than a gambling hall, as we saw in the 1920’s

Tennessee Valley Authority New Dealers claimed that public utility holding companies price-gauged the public. This angered them because they often secured important waterways from the public and then turned around and charged unfair prices for desperately needed utilities. Tennessee River presented New Dealers with a great opportunity River could easily be used for hydroelectric power, and serve to give jobs and electricity to an area that needed both Also, it could serve as a model to later reform the price gauging of the utility companies.

Tennessee Valley Authority TVA passed by 100 days Congress One main goal was to determine the exact cost of developing and delivering electricity Become a “yardstick” to determine if the utility companies were indeed over charging clients Companies complained about the new competition from the government, stating the lower prices were from bad bookkeeping and no taxes

Tennessee Valley Authority Achievements: Brought to area employment and electricity Low-cost housing, restoration of eroded soil, reforestation, improved navigation of the river, and flood control Brought prosperity to a region that before had little Eventually, government built dams built on Columbia, Missouri, and Colorado rivers. Bringing electricity and irrigation to the West

Federal Housing Act Federal Housing Act (FHA) Wanted to speed recovery and make better homes Passed in 1934 Small loans given to householders, for improving their homes or building new ones. Agency outlasted Roosevelt and the 1930’s. In 1937, Congress also issued United States Housing Authority (USHA) Agency designed to lend money to states or communities for low-cost housing 650,000 low-income people benefitted. First time that the slums started to decrease in size or cease growing

Social Security Act Designed for unemployment insurance and old-age pensions Passed in 1935 Provided federal and state unemployment insurance Specified categories of retired workers were to receive regular payments from the federal government Financed by a payroll tax on both employers and employees Provisions also made to help disabled such as the blind, handicapped, delinquent children.

Social Security Act Republicans and Conservatives argued vehemently against the SSA. New Dealers were inspired by other western industrial nations, especially in Europe, who provided such plans for its citizens. In the new industrialized America, with an economy based on boom and bust, the federal government felt it was necessary to look out for the general welfare of its citizens. In America, you had to work to get the benefit and by 1939, 45 million people were eligible for Social Security benefits.

Wagner Act Passed in 1935 Created National Labor Relations Board Allowed labor and unions the right to self-organization and also to bargain collectively with representatives of their own choosing. John L. Lewis Organized the Commission for Industrial Organization out of the AF of L.

CIO John Lewis and CIO were forced to break ranks with AF of L because of the unskilled and skilled worker debate However, Lewis continued to fight and grew the union through entering the automotive industry. Started using sit-down strike. Used in Flint, forcing GM to recognize CIO as sole bargaining agency for its employees. United States Steel Company also granted rights to unionize to the CIO affiliated employees.

Fair Labor Standards Act Passed in 1938 Industries involved in interstate commerce had to : Set up minimum-wage standards and maximum-hours worked level. Goals were 40 cents and hour and 40 hours a week Labor for children under 16 forbidden By 1940, CIO had 4 million members.

Election of 1936 Republican Platform Criticized the New Deal For its radicalism, Experimentation, Confusing, and waste. Republicans nominated Alfred Landon, governor Of Kansas. Roosevelt won in a Landside and both Houses had Democratic Majorities. Election highlighted Concept of class warfare.

Supreme Court and Roosevelt 20th Amendment Ratified in 1933, inauguration shortened to six weeks, so oath taken in January. Shortened the strange lame duck period. Roosevelt thought his reelection meant he had a mandate, but the Supreme Court stood in his way. In 9 cases brought against new Deal programs, the Supreme Court ruled against Roosevelt 7 of 9 times Court was ultra conservative (remember that Harding placed 4 of the 9 on the bench) Roosevelt thought the Supreme Court should get in line with public opinion and that Democracy meant rule by the people.

Court Packing Scheme To solve his dilemma, Roosevelt asked Congress to permit him to add a new justice tot eh Supreme Court for every member over seventy who would not retire. This would allow for a maximum of 15 Roosevelt was not aware that the court had become somewhat of a sacred cow, and Congress nor the public were willing to mess with it.

Changes in Supreme Court Roosevelt was vilified for his actions, but…… They kinda worked. Justice Owen Roberts, a conservative, started to vote as a liberal March 1937, upheld minimum wage for women, reversing a previous case it ruled on Court later upheld Wagner Act and Social Security Act Congress never passed court packing deal, but in many ways Roosevelt won the war. Through deaths and resignations, FDR made a total of 9 appointments to the Supreme Court.

Twilight of the New Deal In 1933, unemployment was 25 percent. in 1936, it was 15 percent. This was an improvement, but 15 percent is a lot (Most in recent recession was 10 percent in Oct 2009) 1937, economy took turn for the worst and slipped into a recession, called Roosevelt's Recession Keynes, embraced idea of deficit spending, known as Keynesianism. IN 1937, Roosevelt adopts this idea.

Twilight of New Deal By 1938, most of the New Deal reforms had lost momentum and there is a shift in the country to more conservatism. In 1938 Congressional elections, Republicans cut deeply into the Democratic majorities. The crisis in international affairs helps move the conversation from domestic affairs to international affairs in 1938-1939.

New Deal Critiques Foes condemned waste, confusion, contradictions, and graft. Many detested the employment of leftist professors and what they considered Communists Business people hated the fly by the seat of his pants policies of Roosevelt People hated the increased bureaucracy and also regulation brought on by the New Deal National Debt rose from 19.5 billion in 1932 to 40.5 billion in 1939. People said it created more class strife and turmoil Private enterprise stifled by a planned economy. Expansion of executive power under Roosevelt also critiqued. Worst of all, it failed to curb and cure the depression