WORKERS AND FARMERS
IN THE NEW DEAL
(CHAPTER – 15 / SECTION -1)
The Election of 1932
Franklin Roosevelt appeared more caring of the people and would
propose the New Deal. Roosevelt entered office with no single
ideology or plan for dealing with the depression.
Dozens of alphabet agencies were created as a result. Historians
distinguish the "First New Deal" of 1933 that had something for
almost every group, and the "Second New Deal" (1935-37) that
introduced an element of class conflict.
The opponents of the New Deal complained of the costs and the
shift of power to Washington, stopped its expansion after 1937,
and abolished many of its programs by 1943.
The Brian Trust
In the spring of 1933 the economy worsened and Roosevelt called
together a group of experts for advice on policies and programs.
Most of the members were of college professors, lawyers, social
leaders and labor leaders. The advisors disagreed precisely on how
to fight the depression, but agreed that a new level of government
would be needed to end the depression.
The Hundred Days
Having won a decisive victory in the election, and with his party
decisively sweeping the Congressional elections across the nation,
the new president entered office with unprecedented political
capital.
Roosevelt would call for a special session of Congress and from
March to June Roosevelt responded with a remarkable series of
new programs in the “first hundred days” of the administration
where he passed the bulk of the New Deal legislation.
Roosevelt would use the fireside chats, a series of 30 evening
radio talks between 1933 and 1944. These were evening radio talks
to the American public straight from the White House.
The addresses gave people a sense of hope and security during
difficult times, and helped keep Roosevelt popular despite the
continuing depression.
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Bank Reform
Roosevelt announced on March 5th a five day “bank holiday”.
On March 9th Congress passed the Emergency Banking Act
authorizing the government to examine bank records and only
stable banks were able to reopen.
The long term goal of this legislation was to restore the confidence
of the public back into the banking system.
The first talk was to reassure the public that it was safe to use the
banks again. The Glass-Steagall Banking Act of 1933 created the
Federal Deposit Insurance Corporation (FDIC).
The vast number of bank failures in the Great Depression spurred
the U.S. Congress into creating an institution which would
guarantee banks and it’s Deposit Insurance Fund (DIF).
The FDIC currently guarantees checking and savings deposits in
member banks up to $100,000 per depositor. The long term goal
was to restore public confidence in banks
Federal Securities Act required that all corporations provide
complete information on all stock offerings. The corporations
would be held liable for any misrepresentations
The long term goal was to restore public confidence in the stock
market.
The relief programs were short term solutions, but for long term
development Roosevelt saw the National Industrial Recovery
Act (NIRA) as a set of U.S. federal laws and codes that authorized
the President to regulate businesses in the interests of:
 Promoting "fair" competition, supporting raising prices wages,
 Creating jobs for unemployed workers, and preventing business
failures.
The long term goal was to ensure fair business practices and to
promote industrial growth.
Foreclosures, a process in which banks took over ownership of
indebted farms, took its toll upon the small farmer. The
Agricultural Adjustment Act (AAA) helped only some farmers
pay their mortgages, but hurt other small farm families.
The AAA called for a reduction in food production, which would,
through a controlled shortage of food, boost up the price for any
given food item. They would receive subsidies not to plant crops.
Most subsidies helped the larger farms because they were based
upon the amount of land.
The desired effect was that the agricultural industry would once
again resurge due to the increased value, and in doing so, produce
more income.
In order to decrease food production, the AAA would literally pay
farmers not to farm, and the money would go to the landlord. The
landowners were expected to share this money with the tenant
farmers.
While a small percentage of the landowners did in fact, share the
income, the majority did not. Later in 1936 the tax assessed to
processing companies to help subsidize the farmers, was deemed
unconstitutional.
The long term goal was to raise crop prices and in return farm
income would then rise.
The Tennessee Valley Authority (TVA), a Federal governmentowned corporation was created in 1933 to provide navigation,
flood control, electricity generation and economic development in
the Tennessee River Valley, one of the poorest and least developed
regions of the country at the time.
TVA covers most of Tennessee, large parts of Alabama and
Mississippi, and small slices of Georgia, Kentucky, North Carolina
and Virginia.
Even by Depression standards, the Tennessee Valley was in sad
shape in 1933. Much of the land had been farmed too hard for too
long, eroding and depleting the soil.
Crop yields had fallen along with farm incomes. The best timber
had been cut. TVA developed fertilizers, taught farmers how to
improve crop yields, and helped replant forests, control forest fires,
and improve habitat for wildlife and fish.
The most dramatic change in Valley life came from the electricity
generated by TVA dams. Electric lights and modern appliances
made life easier and farms more productive.
The long term effect on the region was it provided electricity for
new industries in the region and provided desperately needed jobs.
The Civilian Conservation Corps (CCC) put young men to work
aged 18 to 25 building roads, enhancing parks, planting trees and
preventing soil erosion. At the conclusion of the program in 1942
some 3 million young men had passed through the program.
The men received a small wage of $30.00 a month, of which
$25.00 was automatically sent home to their family.
The corps supplied food, housing and a uniform to all its members.
Over an 8 year period the groups planted some 200 million trees in
an attempt of preventing another Dust Bowl.
The long term impact was to reduce unemployment in the region.
The Federal Emergency Relief Administration (FERA) was
funded with 500 million to provide direct relief for the needy. Half
of the money was given to the states as direct grants to furnish
food and clothing to the unemployed, the aged and the ill.
With people being able to buy food and do some form of
meaningful work their self esteem and respect returns.
The long term goal was to provide for the basic needs of the people
hit hardest by the Depression.
The Publics Works Administration (PWA) was part of the
National Industrial Recovery Act where it provided money to
states to build schools and community centers.
When the program failed to make strong inroads in reducing
unemployment Roosevelt created the CWA.
The long term goal was to reduce unemployment
The Civil Works Administration (CWA) provided 4 million
immediate jobs during the winter of 1933-34. Many would criticize
that the programs were made up work, yet there were some 40,000
schools and thus the creation of 50,000 school teaching jobs. It
also built some half a million miles of roads.
The long term goal was to reduce unemployment quickly.
The Home Owners Loan Corporation (HOLC) provided
government loans to homeowners who faced foreclosure.
There was a quick movement to help save the loss of homes by
American families. Low interest loans were established along with
the reorganization of farm loans. Both helped prevent the further
loss of ownership.
The long term goal was to help families keep their homes.
The Supreme Court Reacts
The conservative Supreme Court declared two significant rulings.
It struck down two of the New Deal programs, the AAA and the
NIRA determining that they were unconstitutional.
Fearing that the Supreme Court may further take the New Deal
apart Roosevelt proposes to Congress to enact a court-reform bill
allowing him to appoint (6) new Supreme Court Justices.
Fearing that the separation of powers would be lost Congress
blocks the move. However, Roosevelt gets his wish to appoint a
new justice in 1937. This allows him to have a liberal court and the
support of his New Deal programs.
Critics of the Programs
In 1934 some of the stronger Conservatives speak out against the
policies of the New Deal. The most serious challenger came form
Huey Long a spokesman for the poor.
He was a governor of Louisiana and later became a U.S. Senator
from the state.
Long was an early supporter of the New Deal who turned against
Roosevelt as he develop aspirations to run for President.
His Share Our Wealth proposal was extremely popular nationwide.
In 1935 there were approximately 27,000 “Share-Our-Wealth”
clubs in the US with some 7.5 million members.
He was assassinated by a lone gunman in 1935 at the height of his
popularity.
THE SECOND NEW DEAL TAKES HOLD
(CHAPTER – 15 / SECTION -2)
Family Life
Many American families lacked the ability to maintain the basics,
food, clothing and shelter. Families became the corner stone to
survival.
Big families knew that at least someone would have work and thus
supply money toward their survival. Family roles changed where
men were no longer the head of the household. Women became
bread winners.
The government only allowed one family member could work a
civil service job and many relief programs only covered men.
Single white, African American and Hispanic were hit hard. To
help this situation President Roosevelt appointed several women to
important federal positions.
Eleanor Roosevelt
The president’s wife provided much of the support and direction to
FDR’s development of social programs.
Her deep convictions to humanitarian and political skills opened
up many new opportunities for the people. She especially endorsed
the usage of more women in government programs.
She would travel the nation taking in the current conditions of
what the people were experiencing and report back to FDR on
what was currently going on and what was needed to be changed.
Helping Farmers
In the mid-1930 the financial condition of the farmers was poor.
Two in every five farms were mortgaged and thousands more lost
their farms.
The Resettlement Administration and Farm Security
Administration bought out small farms that were not economically
viable, and set up subsistence homestead communities, in which
groups of farmers would live together under the guidance of
government experts.
They were not allowed to purchase their farms for fear that they
would fall back into inefficient practices. Many renters wanted
money to buy farms, but there already were too many farmers.
Instead the government used education to help the poor stretch
their money further.
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Some of the problems that existed for the farmers were:
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Soil depletion;
Inability to buy land; squalid housing;
Dust storms; debt;
Bank foreclosures;
Lack of electricity
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Some of the laws/agencies that were passed to aid farmers were:
Farm Security Administration
Was an experiment in collectivizing agriculture--that is in bringing
farmers together to work on large government-owned farms using
modern techniques under the supervision of experts.
The program failed because the farmers wanted ownership, and the
agency was transformed into a program to help them buy farms.
Soil Conservation and Domestic Allotment Act
The act paid farmers for cutting production of soil depleting corps
and rewarded them for practicing good soil conservation methods.
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Resettlement Administration
In 1935 provided loans to small farmers to buy land.
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Farm Security Administration
In 1937 it replaced the RA and helped loan out some 1 billion
dollars to help tenant farmers (pays rent for use of land) become
land owners. The act also established camps for migrant workers
that had lived in squalid housing (slum/unclean housing).
Extending Help to the Youth & Professionals
Part of the Second New Deal was to address following growing
needs:
 High unemployment,
 Growing poverty,
 The feeling of hopelessness,
 Individual loss of personal dignity
 The lack of spending money
Some of the laws/agencies that were passed were:
National Youth Administration (NYA)
The main purpose of the administration was to provide education,
jobs, counseling and recreation for young people.
Financial aide was provided to colleges, high schools and graduate
students. In return many of the students were provided part time
work in the schools.
Teachers / Writers / Artists / Professionals
Part of the Second New Deal was to address following growing
needs:
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High unemployment,
Growing poverty,
The feeling of hopelessness,
Individual loss of personal dignity
The lack of spending money
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Some of the laws/agencies that were passed were:
Works Progress Administration (WPA)
The goal of the administration was to create as many jobs as
quickly as possible. From 1935 – 1943 the government spent $11
billion to create jobs for some 8 million unskilled workers.
These workers built some 850 airports and repaired or built some
651,000 miles of roads or streets and put up some 125,000 public
buildings.
The greatest development was the dignity it gave back to people
because of their ability to once again could work.
Improving conditions for the Labor and Unemployed
Part of the Second New Deal was to address following growing
needs:
 High unemployment,
 Growing poverty,
 The feeling of hopelessness,
 Individual loss of personal dignity
 The lack of spending money
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Some of the laws/agencies that were passed were:
The Wagner Act
Senator Robert Wagner sponsored the National Labor Relations
Act. The act reestablished the collective bargaining ability of
unions. Also the federal government protected the right of workers
to join unions and the prohibited unfair labor practices such as
threatening or firing a worker associated with a union.
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Fair Labor Standards Act of 1938
Is a U.S. federal law that established a national minimum wage
(.25 cents per hour), guaranteed time and a half for overtime in
certain jobs, and prohibited most employment of minors under the
age of 16.
Retired Workers, Disabled, Elderly, Dependent Mothers &
Children
Problems that were faced by this group were:
 High unemployment,
 Growing poverty,
 The feeling of hopelessness,
 Individual loss of personal dignity
 The lack of spending money
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Some of the laws/agencies that were passed were:
Social Security Act
One of the most important changes within this era was the
enactment of the Social Security Act. The Act had three major
parts:
1) Old Age insurance for retirees 65or older and their spouses.
This plan was for a supplemental retirement plan. Half of the
funds would come from the worker and the other half from the
employer.
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2) Unemployment compensation program. The system was
funded by a federal tax on employees. This was administrated at
the state level.
Initially the weekly payments ranged from $15-$18 per week.
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3) Aid to families with dependent children and disabled. This
fund was paid with federal money that was made available to
the states.
ARTS AND ENTERTAINMENT
(CHAPTER – 15 / SECTION -3)
Attempts were tried to create new opportunities for women and
minorities. However, the harshness of the times lent few changes
for the groups. Discrimination and prejudice were still very strong.
Women and the New Deal
Some of the more important changes were the appointment of
women to several key positions in the government.
Gains:
One was Francis Perkins. She became the first female appointed to
a cabinet position as Secretary of Labor.
Her contributions were the creation of the Social Security Act and
supervised labor legislation. Roosevelt also appointed two female
diplomats ad two female federal judges. There was also a slight
increase in the number of women working outside the home.
Problems:
Discrimination existed in the workplace in wages and in hiring
practices.
African Americans
Like women, like the African Americans were first fired and last
hired. Skilled workers were often overlooked as the jobs went to
young white boys.
Gains:
By mid-1935 there were 45 African Americans working in federal
executive departments and New Deal agencies.
Mary McCloud Bethune, an educator, promoted opportunities for
young African Americans. She was also involved in the hiring of
administrators.
She also was instrumental in the creation of Roosevelt’s appointing
of the Black Cabinet was first known as an informal group of
public policy advisors. This helped iincrease their political voice
and enhanced their access to the president.
Also First Lady Eleanor Roosevelt resigned from the Daughters of
the American Revolution because of its refusal of allowing African
American singer Marin Anderson from performing.
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Problems:
African Americans viewed the New Deal as being discriminating.
CCC workers were separated by race and the NIRA established
codes that allowed employees to pay African Americans lower
wages. In 1935 Roosevelt banned the discrimination on any WPA
projects.
Fearing a black lash of the Southern Democrats, Roosevelt never
enacted any anti-lynching laws. Despite the fact that no antilynching laws were established most African American voters
supported Roosevelt in the general elections.
Native Americans
John Collier was commissioner of Indian Affairs and a strong
advocate of Native American rights. Collier helped create the
Indian Reorganization Act of 1934 which secured certain
rights to Native Americans.
 The reversal of the Dawes Act returning to local tribal selfgovernment.
 Reduced the number of boarding schools and allowed children
to attend schools on reservations.
 Strengthened Native Americans land claims by prohibiting the
government from taking over unclaimed reservation land.
 Over two million acres of land were returned to various tribes in
the first 20 years after passage of the act.
Mexican-Americans
Despite receiving fewer benefits from the New Deal Mexican
Americans still supported the Roosevelt efforts. Most would find
work on the farms even though there were few federal laws that
would protect them.
 Wages fell to as low as .09 cents per hour.
 Attempted to unionize, but was often met with violence
 Government agencies discriminated them from programs that
would allow permanent addresses.
One the most successful achievements were the New Deal
Coalition, an alignment of diverse groups dedicated to supporting
the Democratic Party. The coalition included Southern whites;
various urban groups; immigrants; various religious and ethnic
groups.
Labor Unions
Gains:
Under the Wagner Act unions flourish with better working
conditions, increased bargaining power and better wages. Union
membership during 1934-1941 grew from 3 to 10 million.
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Problems:
 Strike violence
 Big business
 Opposition to labor unions
Congress of Industrial Organizations (CIO)
After failing to change the AFL policies of allowing unskilled and
semiskilled workers a break off from the union would emerge.
In 1938 the CIO formed after splitting from the AFL. The
organization welcomed unions that included women, African
Americans and immigrants. The split lasted until 1955.
One of the worst labor strikes during this time was the Chicago
Memorial Day Massacre. The incident was due to a tactic
employed by the strikers called a “sit down strike” The strikers
physically occupy the plant keeping management and others from
using it.
The police attacked the strikers killing 10 and wounding 84. This
and other actions helped the unions gain strength in the 1930’s.
CULTURE IN THE 1930’S
(CHAPTER – 15 / SECTION -4)
Movies
Despite the hard times some 90 million Americans were able to
pay the 25 – 30 cents needed to see a movie each week. In 1939
some 17,000 movie theaters were in 9,000 towns. This meant that
there was one seat on average for each 12 Americans.
Moviegoers were able to see a variety of films from cartoons,
comedies, gangster films and westerns. All of the films were an
escape from the hard times. Movies such as:
“Gone with the Wind”
 Film about a novel
 Clark Gable and Vivien Leigh
 Drama of life among southern plantation owners during the
Civil War
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“Mr. Smith Goes to Washington”
 Film
 Frank Capra, Jimmy Stewart
 Honest, kindhearted people winning out over greedy special
interests
As many as 97 million (out of a population of 129 million
Americans) people listened to a family radio. Comedies, mysteries
and soap operas (named for the fact so many soap companies
sponsored the shows) were daily popular events.
War of the World broadcast sent panic through out the nation,
even though it was a factious event.
“The War of the Worlds”
 Radio drama (or book)
 Orson Welles (or H. G. Wells)
 Martian invasion of Earth
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“Waiting for Lefty”
 Play
 Clifford Odets
 Labor struggles of the 1930s
Art and Literature
To help pass the hard times during the depression people turned to
paper back and comic books. Costing only 25 cents Margaret
Mitchell’s “Gone with the Wind”
“Native Son”
 Novel
 Richard Wright
 Difficulties faced by a young man trying to survive in a racist
world
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“The Grapes of Wrath”
 Novel
 John Steinbeck
 Difficulties of Oklahomans who leave the Dust Bowl for
California
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“Our Town”
 Play
 Thornton Wilder
 Warmth and beauty of small-town life in New England
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Some of the painters of the time that sought inspiration from
regional customs and folk themes were known as Regionalists.
The popularity of regionalism at a time when the country was
floundering economically and ideologically is not difficult to
fathom.
As the Great Depression was a time of isolationist and protectionist
policy and rhetoric, providing, on the surface, a sanitized and
hopeful view of America's heartland.
Federal art projects allowed many artists to continue practicing
their craft.
“American Gothic”
 Painting
 Grant Wood
 Two stern-faced farmers; rural life during the Depression
offered hope and strength to battle the challenges that were
faced within the films.
Music
The demand for various forms of entertainment was also growing
within music. Swing jazz is a form of jazz music that developed
during the 1920’s and solidified as a distinctive style in 1935 in the
U.S.
Big band sounds and folk musicians carried America through
inspiration or kept us in check in the reality of one’s daily life.
Experiencing firsthand the tragedies of the Depression singer song
writer Woody Guthrie created music that captured the hardship
facing most Americans.
His lyrics revealed what many people had seen or felt and took to
heart due to his travels and insights.
Sports
In the early 1930’s attendance at sporting events fell. However,
many fans listened to games on the radio and later as times
improved attended sporting events.
To help with spectator attendance at games the minor and Negro
League baseball games were held at night so more people could
attend.
Sport stars of the times were Jesse Owens (Olympic star), Lou
Gehrig (played in 2,130 consecutive baseball games) and Mildred
“Babe” Didrikson (dominated all women’s sports)
IMPACT OF THE NEW DEAL
(CHAPTER – 15 / SECTION -5)
New Deal Reforms Endure
At the beginning of his third term in office Roosevelt entertained
thoughts of launching a third New Deal. However the fear of
deficit spending kept him from pursuing any more reforms.
Congress also pressured Roosevelt from extending any new
programs. Unemployment grew in 1937 from 7.7 million to 10.4
million in 1938.
Support & Criticism of New Deal
Most conservatives believe that Roosevelt made the federal
government too large and too powerful.
Liberal critics argue that Roosevelt did not do enough to socialize
the economy and to eliminate social and economic inequalities.
Labor
One of the parts of the era that had a long lasting effect was within
the protection of the workers rights.
Agencies such as the Wagner Act, Fair Labor Standards Act
and National Labor Relations Board, which was created under
the Wagner Act, continues to act as a mediator in labor disputes
between unions and employers.
The effects were the creation of standards for workers wages and
hours, ban on child labor and the rights for unions to organize and
bargain collectively.
Agriculture & Rural Life
The government’s establishment of production quotas was to help
avoid surpluses. Agencies that assisted the needs of the farmer
were the Agricultural Adjustment Acts and Soil Conservation
Service.
These had the effect of aiding farmers with farm price supports, the
education and exposure to contour plowing, terracing, and crop
rotation.
Further the Commodity Credit Corporation loan was set upon the
farmer’s surplus crops and parity of price. This is a price intended
to keep the farmer’s income steady.
Banking & Finance
With the greatest expansion of the government and with the
infusion of millions of dollars Roosevelt established two major
agencies.
To help regulating supply and demand the Securities and
Exchange Commission and the Federal Deposit Insurance
Corporation were created.
The effects of both were that it created the ability for Federal
enforcement of laws to monitor the stock market regarding the sale
of stocks and bonds.
Also the insurance on bank accounts with personal banking
investments. During the 1930’s deficit spending went from 2.9
billion to 100 million to a high of 54.5 billion during WWII.
Social Welfare
Even though the economy could take a down turn into a recession
the people’s savings and the availability of unemployment
compensation were available.
One of the most important agencies was the Social Security
Act. It created the understanding that the government has the
responsibility of its citizen’s social welfare.
The effects were the Federal government’s acceptance of some
responsibility for having an old-age insurance program, an
unemployment compensation system, established programs to aid
families with dependent children and the disabled.
Environment
Roosevelt was strongly committed to protecting and enhancing the
environment.
The government agencies were the Civilian Conservation Corps;
Soil Conservation Service, and the Tennessee Valley Authority.
These programs had the effects of protecting the nation’s natural
resources, including farmland. The government also enacted new
procedures that would prevent future floods and dust storms within
our farm lands. Roosevelt also sett aside and built more national
parks and wildlife refugee areas.