Chapter 24: The New Deal

Sources:

American History: Connecting with the Past (Fifteenth Edition)

Give Me Liberty!: An American History (Third Edition)

American Pageant (Fourteenth Edition)

America: A Concise History (Fourth Edition)

American History

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How did Presidents Hoover and Roosevelt differ in their attempts to respond to the Great Depression?

(A) While Hoover felt that aid should be supplied directly to the people, Roosevelt felt that governments should only try to stabilize the corporations and banks.

(B) While Roosevelt felt that aid should be supplied directly to the people, Hoover felt that government should only try to stabilize the corporations and banks.

(C) Hoover’s reforms focused on providing aid to farmers, while Roosevelt focused on industrial workers.

(D) Hoover supported the nationalization of banks, while Roosevelt called for the redistribution of wealth through taxation

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Election of 1932

One striking feature of the election of 1932 (and 1936) was the beginning of a distinct shift of blacks, traditionally grateful to the Republican party of Lincoln, over to the Roosevelt camp.

Hard times unquestionably ruined the Republicans, for the electoral upheaval in 1932 was as much anti-Hoover as it was pro-Roosevelt.

Interregnum: period between the election of a president and the time the president takes office (November of 1932 to March of 1933)

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FDR’s First Hundred Days

FDR: (Franklin D. Roosevelt)

First Hundred Days:

fireside chats:

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Social Effects of the Depression

Impact on Health:

Stresses on Families:

Discrimination Increases:

Deportations:

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New Deal Policies: Relief, Recovery, and Reform Key Concept 7.1 (IIIA)

Relief: Relief to persons in need by providing money, loans for mortgage payments, or jobs.

Recovery: Recovery for the nation as a whole by passing legislation to assist businesses, labor, and agriculture.

Reform: Reform of institutions, such as banking, to make for economic and social stability.

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The New Deal: Stabilizing Financial Institutions Key Concept 7.1 (IC)

“bank holiday”:

Emergency Banking Act:

Glass-Steagall Banking Act and the FDIC (Federal Deposit Insurance Corporation):

Securities and Exchange Commission (SEC):

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The New Deal: Providing Relief and Creating Jobs

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FDR and the New Deal Attempting to Regulate and Assist

Key Concept 7.1 (IIIA) How did FDR attempt to regulate the economy?

National Industrial Recovery Act (NIRA): sought to bolster industrial prices, started the NRA.

National Recovery Administration (NRA): created industry-wide codes regulating wages, working conditions, production, and prices.

How did FDR assist homeowners and farmers?

FHA created to improve housing standards

AAA created to raise farm prices/pay subsidies

TVA provided cheap electric power, flood control, and recreational opportunities

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How successful were the programs of the New Deal in solving the problems of the Great Depression? Assess with respect to TWO of the

following: relief, recovery, reform Key Concept 7.1 (IIIA)

Relief: largely successful, some such as the FDIC became institutionalized as standard banking policy (Glass Steagall Act to curb speculation, FDIC to insure bank deposits, Civilian Conservation Corps to provide work for unemployed, youth

Recovery: effective in the short-term?... controversial and led to a discussion of govt role (e.g., Supreme Court ruling on TVA and NRA) (TVA for regional development and energy generation, AAA to control production levels, NIRA to curb overproduction)

Reform: milestone measures in creation of the modern welfare state? (SEC to regulate stock market, Wagner Act offers protection for labor, Social Security provides pension for workers, WPA provides work)

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Indian Reorganization Act of 1934

The Indian Reorganization Act (the “Indian New Deal”) of 1934 partially reversed the individualistic approach of the Dawes Severalty Act of 1887 and belatedly tried to restore the tribal basis of Indian life.

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Eleanor Roosevelt

Eleanor Roosevelt symbolized the growing prominence of women in public life, worked for better conditions for working women

She reported back to her husband on working and living conditions around the country

“I sometimes acted as a spur, even though the spurring was not always wanted or welcome.” - Eleanor Roosevelt

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Political Critics of the New Deal

The New Deal Does Too Little The New Deal Does Too Much

some progressives

some liberals

the wealthy

some conservatives

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Critics of the New Deal Key Concept 7.1 (IIIB)

Demagogue: a politician who appeals to emotion and prejudice

Father Charles Coughlin:

Huey Long:

Frances Townsend:

American Liberty League:

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The Schechter Decision (“sick chicken” case)

Schechter unanimously held that Congress could not “delegate legislative powers” to the President and declared that congressional control of interstate commerce could not properly apply to a local business.

The reasoning in the Schechter case threatened the legality of many other New Deal programs.

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The Second New Deal, 1935-1938 Key Concept 7.1 (IIIB)

More of a left-liberal program

Set up to counter rising popularity of Townsend, Coughlin, and Long (by stealing parts of their programs)

Accomplishments: Wagner Act, Social Security Act, Works Progress Administration

FDR miscues: the court-packing fiasco, the recession of 1937-38

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Wagner Act: A New Deal for Labor

The Wagner Act reasserted the right of labor to engage in self-organization and to bargain collectively through representatives of its own choice.

Considered the Magna Carta of American labor, the Wagner Act proved to be a major milestone for American workers.

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Roosevelt’s Court-Packing Plan Key Concept 7.1 (IIIB)

Proving to be one of the most costly political misjudgments of his career, Roosevelt bluntly asked Congress for legislation to permit him to add new justices to the Supreme Court.

Congress and the nation were convulsed over Roosevelt’s Court-packing plan to expand the Supreme Court. In the eyes of countless citizens – Republicans and Democrats – civil liberties seemed to be in jeopardy.

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“HIPPO” this cartoon:

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Lasting Impacts of the New Deal Key Concept 7.1 (IIIC)

New Deal created new institutions that permanently expanded role of federal government in American life, government now committed to doing many other things that had not previously been federal responsibilities

As a result, American political and economic life became much more competitive, with workers, farmers, consumers, and others now able to press their demands upon the government

The New Deal also created the rudiments of the American welfare state, through its many relief programs and above all through the Social Security system

Finally, the New Deal effected the character of American politics – it took a weak and divided Democratic Party and turned it into a mighty coalition that would dominate for more than 30 years.

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Lasting New Deal Achievements Key Concept 7.1 (IIIC)

Many New Deal bridges, dams, tunnels, and hospitals exist to this day

The FDIC still insures guarantees bank deposits

The Securities and Exchange Commission continues to monitor stock exchanges

Social Security

The New Deal did restore a sense of hope, and massive government spending of the New Deal did lead to some short-term economic improvement

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Effects of the Great Depression Key Concept 7.1 (IIIC)

Many conservative Republicans believe that the people should support the government, and not the other way around. Until the depression, most Americans agreed.

But the depression, with its massive layoffs and bank failures, demonstrated how painfully exposed Americans can be to the

whims of a capitalist economy.

Franklin Roosevelt failed to end the depression, but the programs he put into place went far toward dispelling the

despair the depression evoked.

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Compare and contrast the programs and policies of the Progressive Era with those of the New Deal.

Progressive Era New Deal

No direct financial relief or jobs provided

Most legislation passed at local and state level

BOTH IGNORED: economic, social, and political rights for African-Americans

Provided jobs, direct relief, economic reform

Most legislation passed at the federal level

BOTH IGNORED: economic, social, and political rights for African-Americans

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Prompt: Evaluate the extent to which FDR’s administration maintained continuity as well as fostered change in the role of the federal government during the Great Depression.

How do you attack a prompt like this? Sometimes it helps to reword it, and then double-check that you are answering the original question.

For example, change the prompt to “How effective was the FDR’s New Deal…” Then make a quick T-Chart for “effectiveness” and “limitations”

Now reword your T-Chart to “things that stayed the same” and “things that changed”

Now come up with a thesis statement

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