Depression and a New Deal

1929 to 1932 Stock market crash fall 1929 Local private relief agencies

overwhelmed, many disappeared Became clear public agencies had to

respond Clear poverty was result of social

and economic (not psychological) factors

Hoover’s Response Hoover against “dole” and federal aid Thought public assistance would

demoralize and enslave recipients Approved bill for starving cattle but

opposed one to help starving farmers Saw public works employment programs

as dangerous ideas

Roosevelt as N.Y. Governor Wicks Act – first state unemployment

relief act Created Temporary Emergency Relief

Admin under direction of social worker, Harry Hopkins

Roosevelt also passed an Old Age Pension in NY

“Government is not the master but the creature of the people.”

Roosevelt Elected President 1932 Initiated many programs to deal with

immediate crisis -- alphabet soup Civilian Conservation Corps (reforestation,

flood and fire) Public Works Administration (building

projects) National Youth Admin (part time jobs for

high school & college students)

U.S. Housing Authority (loans to build public housing)

Basic idea – get people working, restore confidence

Use the principle of work relief – earning not charity

People could retain their dignity

Federal Emergency Relief Act

FERA -- similar to NY measure established by Wicks Act

Headed by Harry Hopkins Federal money to states to be

administered by states and localities Each local office had to have at least

one social worker on staff

Roosevelt Didn’t Like Relief Saw relief as temporary Saw need for more permanent measure

to deal with dependency on long range basis

Saw current crisis as result of social and economic forces of industrialization

Summer 1934 appointed Committee for Economic Security

Committee on Economic Security Chaired by Frances Perkins and

Harry Hopkins Edwin Witte (economist) and Wilbur

Cohen major influences Committee report submitted in

January 1935 and Social Security Act passed in August 1935

Frances Perkins Secretary of Labor under FDR First woman to hold a cabinet post (1933-

1945) Appointed by Truman to head Civil Service

Commission in 1945 Commitment to improving the lives of

workers; Deeply influenced by labor movement & Triangle fire

Educated in economics and sociology; worked in settlement houses, among other things

Active for women’s suffrage

Contributory Old Age Insurance Workers and employers taxed to

finance retirement benefits (Old Age Insurance)

Benefits based on how much they had earned and how long they had worked

Encourage older workers out of jobs to make way for young

Unemployment Insurance Employers taxed for this purpose by

federal government Federal government returned funds

to states if they set up unemployment insurance programs

Public Assistance Old Age Assistance: federal government

would help states provide aid to old who could not participate in Social Security

Feds gave money to states for help for single parent families with dependent children (expansion of mother’s aid)

Beginnings of AFDC – not controversial

Social Security Act Built on previous precedents Welfare only to aged and young

“deserving poor” Tied benefits to stable long term

labor force participation Left out a lot of people from social

insurance initially No health insurance

New Ideas Helped prevent destitution and

dependency Not a matter of individual weakness Federal aid to states for social

welfare Federal government assumed

responsibility for welfare of citizens

Effects on Social Work Profession Created many new jobs for social workers Created demand for new schools of social

work Social workers learned about rural

poverty Return of interest in social reform Social workers gained prestige Social work became accepted part of

government in a modern state

What Ended the Depression? Deficit spending Mobilization for World War II