Name:______________________________ Date: ________ U.S. History Unit #7 The Great Depression How did the New Deal change the relationship of the American people to their federal government? Document A – Message to Congress Document B – Fireside Chat photo Document C – Share Our Wealth Document D – Nose to Grindstone Cartoon Document E – Stoddard Letter to FDR Document F – New Deal Agencies Cartoon Document G – Procter Letter to FDR Document H – NRA Commentary Document I – CCC Account Document 1 – Calvin Coolidge Speech Document 2 – Depression Graphs Document 3 – Herbert Hoover Speech Document 4 – FDR Campaign Speech Document 5 – FDR Speech Document 6 – Dr. New Deal Cartoon Document 7 – Doubting Democrat Cartoon Document 8 – Social Security Document 9 – New Deal Agencies Document 10 – Unemployment and Spending Background Essay The Great Depression of the ‘30s was a sudden and terrifying stock-market crash that exposed crucial weaknesses in both American and global economies. Low prices from the over-production of the Great War, the massive gap between the rich and poor, trade-crippling barriers, more consumer goods than could be feasibly consumed, and a choked money supply pinned the American people. With President Franklin Delano Roosevelt taking over after President Hoover―his name and reputation ripped to shreds―FDR promised his people a New Deal to bring about much-needed hope. Despite being unable to end the Great Depression, being heavily criticized, and even causing a small recession near the end of the New Deal, the three R’s he focused on (relief, recovery, and reform) eased the Depression for the American people and increased the federal government’s influence within the economy. The First New Deal from 1933 to 1934 saw FDR in his days as a fledgling president and the introduction of his famous Hundred Days. FDR flexed his arm in a show of executive power during these first days in office establishing New Deal agencies such as the CCC, FERA, AAA, and the NRA. These new agencies were received with varying degrees of acceptance. As shown in the Letter to Senator Robert Wagner, agencies such as the National Recovery Administration created by the National Industrial Recovery Act which sought to boost the economy as a whole were definitively opposed. The NRA was set in place to improve the ways companies treated each other to stimulate industrial production and increase prices to reduce the surplus of consumer goods. However, the letter expresses its worry that “Washington is accelerating its[sic] pace towards socialism and communism. Nearly every public state from Washington is against stimulation of business which would in the end create employment”. Not only were FDR’s New Deal programs creating paranoid accusations of socialism, but also an increased resentment for increased federal influence in economics. Such repugnance towards the NIRA and the government’s increased role in the economy is reflected in Charles Evans Hughes majority opinion in the case of Schechter v. United States (1935) in which he boldly declares that worker’s wages “have no direct relation to interstate commerce” and that “the authority of the federal may not be pushed to such an extreme”. The court itself finds that federal regulation of the economy was hardly significant. Such a ruling indicates a legitimate threat to other New Deal endeavors. Furthermore, FDR’s usage of Keynesian economic theory which touted the effectiveness of deficit spending to revive economies was rather illreceived by the end of the First New Deal as evidenced by William Lloyd Garrison, Jr. in “The Hand of Improvidence” where he criticized the New Deal programs as “contradictory”, “assisted and retarded the recovery of industrial activity”, adding “six billion dollars to the national debt”, and accused the usage of Keynesian economics as a “plan of buying Utopia for cash”. Garrison’s criticism reflected a sentiment regarding the outlandish and lack of pragmatism of the New Deal programs and the ineffectiveness people perceived in the program’s contradictory attempts at recovery. Despite heavy criticisms, FDR’s responses to the Great Depression also brought forth great relief. FDR’s handling of the banks by passing Emergency Banking Relief Act, Glass-Steagall Reform Act, and holding fireside chats over the radio Document #6 According to this political cartoon, how did some people view the New Deal and government intervention into the economic crisis? Do you think the cartoonist expected Roosevelt’s remedies to work? Explain your answer Document #7 Document #8 What has been the long-term impact of Social Security? Document #9 Selected New Deal Programs Which New Deal Programs continue to affect the lives of U.S. citizens? Document #10 Write a 3-5 paragraph essay that answers the questions below. Be sure to use information from the documents to support your answer. Discuss the response of the United States government to the Great Depression. In your essay, explain how and why the government response during the Depression is considered a turning point in the federal government’s role in managing the economy. Were the New Deal programs effective in overcoming the Great Depression and rebuilding the U.S. economy? How did the New Deal fundamentally change American’s relationship with their federal government?