THE NEW DEAL
AMERICA
GETS BACK
TO WORK
SECTION 1: A NEW DEAL
FIGHTS THE DEPRESSION
• The 1932 presidential
election showed that
Americans were clearly
ready for a change
• Republicans renominated Hoover
despite his low approval
rating
• The Democrats
nominated Franklin
Delano Roosevelt
ROOSEVELT WINS
OVERWHELMING VICTORY
• Democrat Roosevelt,
known popularly as FDR,
was a 2-term governor of
New York
• FDR was a distant cousin
of Teddy Roosevelt
• The Democrats also won
huge victories in the house
and senate
• Greatest Democratic
victory in 80 years
FDR easily won the 1932 election
FDR LAUNCHES NEW
DEAL
• FDR promised a “new
deal” for the American
people
• He took office with a
flurry of activity known
as “The Hundred
Days”
• The 100 Days lasted
from March to June
1933
FDR’s Inaugural Address & the First Hundred Days
• “This Nation asks for
action, and action now. “
• “Our greatest primary
task is to put people to
work…. It can be
accomplished in part by
direct recruiting by the
Government
itself,
treating the task as we
would
treat
the
emergency of a war.”
Three Competing and
Conflicting Goals
– Relief – Immediate End to Human Suffering
– Recovery – Bring US Out of Depression
– Reform – Make Sure Depression Cant
Happen Again
THE NEW DEAL
• this was the name FDR gave to his new program to
fight the Depression
• it was a revolution in American society - changed
completely the way the government functions
• the first phase of the New Deal dealt exclusively w/
economic reform - unlike Hoover, FDR believed
government legislation/involvement was crucial to
stimulate the economy
CONGRESS
GETS BUSY
• FDR’s philosophy was to
get people help and work
through “deficit” spending
• During the 100 Days,
Congress passed more
than 15 major pieces of
legislation that significantly
expanded government’s
role in the nation’s
economy and welfare
TO DO LIST: #1HELP BANKS
• First order of business was to get
the banking system in order
• On March 5, one day after taking
office, FDR declared a bank
holiday
• He persuaded Congress to pass
the Emergency Relief Act, which
authorized the Treasury
Department to inspect the
nation’s banks
THE NEW DEAL
• step 1 - dealt w/ the banking crisis BANKING HOLIDAY- banks shut
down and subject to government
inspection, allowed to open when
"healthy"- people's confidence
returned  they re-deposited $,
allowing banks to invest in the
economy
AMERICANS GAIN
CONFIDENCE IN BANKS
• Next, FDR passed the
Glass-Steagall Act which
established the Federal
Deposit Insurance
Corporation
• The FDIC insured
account holders up to
$5,000 and set strict
standards for banks to
follow (today = $100,000)
New Deal Program
Summary
Glass-Steagall Act FDIC -- government insures
deposits up to $5,000
Relief, Recovery or
Reform?
Recovery/
Reform
• step 2 - stock market
reform- Security
Exchange Commission
est. to police the NYSE
(first chairman.was
Joseph P. Kennedy)practice of buying on
margin was regulated
• step 3 - to put more $ in
circulation, FDR went off
the GOLD STANDARD
(government could print
more $ than Fort Knox
gold reserves would
allow)- w/ more $ in
circulation, wages and
prices increased
(= inflation), causing
dollar value to lowergave government
spending power
(Keynesian economics)
MORE 100 DAYS ACTIVITY
• Federal Securities Act:
Required stock info to be
accurate and truthful
• Agricultural Adjustment
Act: (AAA) Raised crop
prices by lowering
production
• Tennessee Valley
Authority: (TVA) Focused
on direct relief to hard hit
area– created ambitious
dam projects
New Deal Program
Home Owners’
Loan Corporation
(HOLC)
Agricultural
Adjustment Act
(AAA)
Summary
Relief, Recovery or
Reform?
Relief/
Recovery
Government loans money to
homeowners so that they can pay
mortgages
Government loans money to farms Relief/
so they can pay mortgages
Recovery
• AGRUCULTURAL ADJUSTMENT ACT (AAA)
- passed in 1933 to aid formers- its objective
was to restore farmers' purchasing power
and to restore the family farm - AAA had
farmers cut back on crop production by
paying them equivalent SUBSIDIES (paid
not to produce) - bad side:
• 1) food production down when millions were
starving
• 2) Black sharecroppers were hurt: white
landowners paid not to farm so they got rid
of Black tenant formers
• in 1935, AAA was declared
unconstitutional by courts (too much
control over individual states), so it was
revised and introduced as new
legislation
• EX: Food Stamp Act of 1939 - gave away
surplus food to poor, also guaranteed
(small) farmers a market
• TENNESSEE VALLEY AUTHORITY (TVA) - used to
promote hydroelectric power, control flooding lower rates  private industry, manufacture
fertilizer federal government took ownership
(nationalization v. privatization)
• UNEMPLOYMENT - still a major
problem
• FDR like Hoover was wary of
government handouts - he
wanted people to earn their
keep so government agencies
were created - temporarily - to
address the unemployment
problem
• CIVILIAN CONSERVATION
CORPS (CCC) - in 1933 - set to
establish work for young men
(18-25) in areas of
reforestation, soil
conservation, flood control,
road construction - also took
them out of urban labor
markets - but Blacks not
permitted to enroll
ALPHABET AGENCIES
• CCC – Civilian
Conservation Corps put
young men to work
• Men ages 18 to 25 worked
building roads, parks,
planting trees (200 million
trees in Dust Bowl areas)
• By 1942 three million men
worked for the CCC
New Deal Program
Summary
Civilian
Environmental projects to give
Conservation Corps jobs to young men
(CCC)
Relief, Recovery or
Reform?
Relief/
Recovery
ALPHABET
AGENCIES
PWA workers construct a public
building in Hartford, Connecticut
• PWA – Public Works
Administration was
part of the NIRA
(National Industrial
Recovery Act)
• The PWA provided
money to states to
construct schools and
community buildings
ALPHABET
AGENCIES
• CWA – Civil Works
Administration built
40,000 schools and
provided salaries for
50,000 teachers in rural
America
• Also built 500,000
miles of roads
CWA School in Woodville, CA
ALPHABET
AGENCIES
Repaired business in Childersburg, Alabama
• FHA – Federal
Housing
Administration
provided home
loans, home
mortgages and
repairs
ALPHABET AGENCIES
• FERA – Federal
Emergency Relief
Agency provided
$500 million in
direct relief to the
neediest
Americans
Citizens wait outside a FERA in
Calipatria, CA for relief checks
CRITICS EMERGE
• Despite the renewed
confidence of many
Americans, critics from
both political spectrums
emerged
• Liberals (left) felt FDR’s
program was NOT doing
enough
• Conservatives (right) felt
that government
intervention was TOO
much and interfered with
our free market economy
WINSTON CHURCHILL
“Any man who is under 30,
and is not a liberal, has no
heart; and any man who is
over 30, and is not a
conservative, has no
brains.”
SPECIFIC PIECES OF LEGISLATION
(direct government intervention in the
economy)(called "Alphabet Soup")
• NATIONAL INDUSTRIAL RECOVERY
ACT (NIRA) and NATIONAL
RECOVERY ADMIN (NRA) were
established to end animosity
between labor and business  all
was redirected to industrial growth 
fair labor codes established - wages,
no child labour, shortened work
hours
New Deal Program
Summary
National Recovery Minimum wages, maximum
Act (NRA)
hours/week, the Blue Eagle
Relief, Recovery or
Reform?
Relief/Recovery
SPECIFIC PIECES OF LEGISLATION
• Business people challenged the NRA,
claiming it was communist
• They formed the LIBERTY LEAGUE at LL's urging, the Supreme Court
overturned the NIRA & NRA, claiming
that federal government was
exceeding its authority (by interfering
with state jurisdiction)
SUPREME COURT REACTS
The Supreme Court -- 1935
• By the mid-1930s, the
Supreme Court struck
down the NIRA as
unconstitutional (citing too
much government control
over industry)
• The Court also struck
down the AAA on the
grounds that agricultural
was a local matter -- not a
federal matter
New Deal Program
(Date)
21st Amendment
(1933)
Summary
Repeal of prohibition
Reactions to the New Deal
A. Political Opposition
1. Conservatives Complain
About Dictatorship &
Deficits
ANOTHER CRITIC
• Huey Long was a
Senator from Louisiana
who was a constant (and
effective) critic of FDR
• Long was setting up a
run for president
• A lone gunman
assassinated Long at the
height of his popularity
in 1935
Huey Long made effective use
of radio to promote his views
Liberals Argue FDR Must Do
More
•
• Huey Long
Lobbies to
Share the
Wealth
MORE CRITICS
Coughlin
• Every Sunday, Father Charles
Coughlin broadcast radio sermons
slamming FDR
• He called for a guaranteed annual
income and nationalized banks
• At his height of popularity,
Coughlin had 45 million listeners
• His increasingly anti-Semitic
remarks ultimately cost him
support
Father
Coughlin
Calls for a
Guaranteed
Income
-- Dr.
Townsend
Promotes
Pensions for
the Elderly
FDR EASILY WINS 2ND
TERM
• The Republicans nominated Alfred Landon, Governor
of Kansas, while the Democrats (of course) nominated
Franklin Delano Roosevelt
• Again the Dems and FDR won an overwhelming victory
in the presidential election and in both houses
FDRwins
wins in
1936
FDR
1936
election
• ELECTION OF 1936 - FDR won
easily (v Repub. Alf Landon Kansas governor)
• this victory gave FDR a mandate
to continue his New Deal policies
• first objective: to reorganize the
Supreme Court - they disallowed
some New Deal legislation
• FDR wants # of judges changed
from 9 15 (to "pack the court") great opposition, so FDR w/drew
this proposal
• but judges retired & FDR got to
appoint new ones  they
approved all New Deal legislation
New Deal Program
(Date)
Summary
Court Packing Plan
Add one justice for every justice over
age 70
FDR REGAINS CONTROL OVER
SUPREME COURT
• From the mid to late
1930s, FDR was able
to appoint 7 new
judges to the
Supreme Court, thus
assuring that his
programs would
carry on unabated
SECTION 2: THE SECOND
NEW DEAL
• Although the economy
had improved during
FDR’s first term (19321936), the gains were
not as great as
expected
• Unemployment
remained high and
production still lagged
Economic Disappointment: The
Great Depression Continues
30
25
20
15
UNEMPLOYMENT RATE (%)
10
5
0
1929
1931
1933
1935
1937
1939
THE SECOND
HUNDRED DAYS
• FDR launches the “Second New Deal”
also called the “Second Hundred Days”
• First priority was the farmers – FDR reinvigorated the
AAA which provided aid for migrants, sharecroppers,
and poor farmers
• FDR authorized more than $1 billion to help tenant
farmers become landowners
WORKS PROGRESS
ADMINISTRATION
• Helping urban workers was
critical to the success of the
Second Hundred Days
• The WPA set out to create as
many jobs as possible as
quickly as possible
• Between 1935-1943, the WPA
spent $11 billion to give jobs to
8 million workers
WPA BUILDS AMERICA
The Davis Street School Extension in Atlanta under
construction as part of the Works Progress
Administration Program, November 2, 1936
• WPA
workers
built 850 airports,
651,000 miles of
roads and streets,
and 125,000 public
buildings
• The WPA also hired
artists, writers and
photographers to
create art
NATIONAL YOUTH
ADMINISTRATION
• The National Youth
Administration (NYA) was
created to provide
education, jobs and
recreation for young
people
• Getting young people off
the streets and into
schools and jobs was a
high priority for the NYA
• other agencies had specific mandates too
• NATIONAL YOUTH ADMIN. (NYA) - created jobs for
young in urban areas
• FED. EMERGENCY RELIEF ACT (FERA) - aimed at
older workers- these and other similar agencies
worked well, but unemployment was still at 6 million
in 1941(solution for this would be the industrial boom
of WW2)
• National Labour Relations Act (aka Wagner Act)- it
legitimized unions and labor tactics such as
collective bargaining & collective action (strikes,
etc...) - it outlawed BLACKLISTS & other anti-union
practices
IMPROVING LABOR
RELATIONS
The NLRA was also called
the Wagner Act
• In the Second New Deal
FDR helped pass the
National Labor
Relations Act (NLRA)
• This legislation
protected workers,
ensured collective
bargaining, and
preserved the right to
unionize
New Deal Program
(Date)
Wagner Act (1935)
Summary
Protects workers and unions – no more
blacklists and yellow dog contracts
CONGRESS PROTECTS
WORKERS
• In 1938, Congress
passed the Fair
Labor Standards
Act which set
maximum hours at
44 per week and
minimum wage at
25 cents per hour
• NEW DEAL - SOCIAL REFORM ASPECTafter 1935, w/ immediate economic relief &
reform addressed, New Deal turned to
Social Welfare - more legislation…
SOCIAL SECURITY
ACT
• One of the most important
achievements of the New
Deal era was the creation of
the Social Security System
• The Social Security Act,
passed in 1935, had 3 parts:
 Old-Age Pension
 Unemployment
compensation
 Aid to families with
dependent children &
disabled (welfare)
New Deal Program
Summary
(Date)
Social Security Act (1935) a) Pensions for elderly
b) Insurance for unemployed
c) Aid to dependents (kids)
• Social Security Act (1935)feared by opponents as
"creeping socialism"- this
act typifies the WELFARE
STATE - unemployment
insurance, old age pensions
• Problem: it took some $ out
of circulation (payroll
deductions) at a time when
purchasing power was
already low- also, it only
covered the unemployed
• 1936 - "Soak The Rich" tax
NEW DEAL AFFECTS
MANY GROUPS
• First Lady Eleanor
Roosevelt helped women
gain higher political
positions during the New
Deal
• Eleanor was influential in
her role as advisor to the
president
• Frances Perkins became
America’s first female
cabinet member (Labor)
Eleanor &
Franklin
AFRICAN AMERICANS
DURING THE NEW DEAL
• The 1930s
witnessed a
growth of activism for
black Americans
• A. Philip Randolph
became head of the
nation’s first all-black
union – the Brotherhood
of Sleeping Car Porters
AFRICAN AMERICANS GAIN
POLITICAL POSITIONS
FDR appointed
over 100 African Americans
to positions within the
government
• Mary McLeod Bethune
headed the division of
Negro Affairs of the NYA
• Despite these gains, FDR
was never fully committed
to Civil Rights
Bethune
NATIVE AMERICANS MAKE
GAINS
• Native Americans made
advances during the 1920s
& 1930s
• Full citizenship granted in
1924
• The Reorganization Act of
1934 gave Natives more
ownership of reservations
• Policy was moving away
from assimilation towards
autonomy
FDR WINS IN 1936
. . . AGAIN
• FDR had wide appeal in
the United States,
especially in urban
areas
• African Americans,
Jews, Catholics and
immigrants all
supported the popular
president
FDR & Eleanor campaign by
rail in 1936
SECTION 4: CULTURE IN THE
1930s
Movies provided an escape from
the hardships of the Great
Depression
MOVIES:
• By the late 1930s, 65% of
Americans were attending
the movies at least once
per week at one of the
nation’s 15,000 movie
theaters
• Comedies, lavish
musicals, love stories and
gangster films dominated
the movie industry
MOVIE
STARS
• A new era of
glamour in
Hollywood was
launched with stars
like Clark Gable,
Marlene Dietrich and
James Cagney
1930s
FAMOUS FILMS OF
THE 30s
• One of the most famous
films of the era was Gone
with the Wind (1939)
• Other notable movies of
the era included The
Wizard of Oz (1939) and
Snow White and the
Seven Dwarfs (1937)
RADIO: THE ORIGINAL
ENTERTAINMENT
• Sales of radios greatly
increased in the 1930s,
from 13 million in 1930
to 28 million by 1940
• Nearly 90% of
American homes
owned a radio
Families spent hours listening to the radio
ROOSEVELT’S
FIRESIDE CHATS
• FDR communicated
to Americans via
radio
• His frequent
“Fireside Chats” kept
Americans abreast of
the government’s
efforts during the
Depression
POPULAR RADIO
SHOWS
• Popular radio shows
included comedies with
Bob Hope, Jack Benny,
and the duo of Burns
and Allen
• Soap operas (named
because they were
sponsored by soap
companies) ran in the
mornings, kids shows in
the afternoon and
entertainment at night
Benny
H
o
p
e
Burns
Allen
FAMOUS RADIO
MOMENTS
• Orson Wells created a
radio special called War of
the Worlds
• It was an epic drama about
aliens landing in America
• Unfortunately, many
thought it was a news
broadcast and panicked
LIVE NEWS
COVERAGE
• Radio captured news as
well as providing
entertainment
• One of the first
worldwide broadcasts
was the horrific crash of
the Hindenburg, a
German Zeppelin (blimp),
in New Jersey on May 6,
1937
• Such immediate news
coverage became a
staple in society
The Hindenburg caught fire and was utterly
destroyed within a minute Of the 97 people on
board, 13 passengers and 22 crew-members
were killed
ART DURING THE GREAT
DEPRESSION
• The Federal Art Project
(branch of the WPA) paid
artists a living wage to
produce art
• Projects included murals,
posters and books
• Much of the art, music and
literature was sober and
serious
WPA Art – “Democracy . . .a
Challenge” – artist, date unknown
ARTISTS
HERALDED
• Painters like Edward
Hopper, Thomas Hart
Benton, and Iowa’s Grant
Wood were all made
famous by their work in
the WPA program
• Photographer Dorothea
Lange gained fame from
her photos during this era
(featured throughout this
presentation)
Wood’s American Gothic is perhaps the most
famous piece of the era (1930)
GUTHRIE’S MUSIC
CAPTURES ERA
Singer Woody
Guthrie used
music to capture
the hardship of the
Great Depression
• Guthrie traveled the
country singing
about America
Guthrie
WRITERS DEPICT
AMERICAN LIFE
• The Federal Writers’
Project (branch of WPA)
paid writers to write
• Richard Wright’s
acclaimed Native Son
was written for the
project
JOHN STEINBECK
RECEIVES ACCLAIM
• American writer John
Steinbeck received
assistance from the
Federal Writers’
Project
• He published his most
famous book, Grapes
of Wrath (1939), as
part of the program
• the late 1930's – new Qs arose…
• FDR concerned w/ int'l issues
• in 1939 he proposed no new
major domestic reform measures
(1st time in his pres.)
• ELECTION OF 1940 - FDR broke
with tradition & ran a 3rd time
• FDR v. Wendell Wilkie - the big
issue here was American support
of the Allies (G.B.), now embroiled
in WWII v. Nazi Ger.
• both U.S. pol. parties wanted to
support G.B. but to remain neutral
- in fact a CONSENSUS had
developed b/n the Dems. and
Repubs.
• both parties approved of (most)
New Deal legislation & wanted an
isolationist foreign policy- FDR
won in 1940 (and again in 1944)
IMPACT OF THE
NEW DEAL
• New Deal helped in stimulating the
U.S. economy, but only WWII
would solve any lingering
problems  unemployed found
jobs in munitions factories and the
military as the U.S. became the
ARSENAL OF DEMOCRACY
SECTION 5: THE IMPACT OF
THE NEW DEAL
• Over time, opinions about
the merits of the New Deal
and FDR have ranged from
harsh criticism to high praise
– usually along partisan lines
• Conservatives felt FDR made
government too large and
too powerful
• Liberals countered that FDR
socialized the economy
because Americans needed
help
LEGACIES OF THE NEW
DEAL
• FDIC – banking insurance
critical to sound economy
• Deficit spending has
became a normal feature
of government
• Social Security is a key
legacy of the New Deal in
that the Feds have
assumed a greater
responsibility for the
social welfare of citizens
since 1935
III. The Long Term Legacy of the New Deal
A. African-Americans Become Democrats
B. The Creation of National Welfare
C. The Growth of Taxes and Debt
IMPACT OF THE
NEW DEAL
• a 3rd revolution in American
culture and politics- more
government involvement but
within the context of traditional
U.S. democracy (not socialist…)
• New Deal saw expansion of U.S.
government in :
1) eco. - constant government
intervention/deficit spending
2) social reform - welfare state - after this
point the U.S. government was
expected to play a role in any
economic crisis
• so FDR fundamentally reformed
(not transformed) American
society…
Conclusion
• The Great Depression and the New Deal
mark a major divide in American history,
casting doubt on traditional economic, social,
and political attitudes, policies, and practices.
• The New Deal brought partial economic
recovery but also expanded the roles of the
federal government and the presidency.
– Presidency now at the center of the political
system
• The New Deal also revitalized the Democratic
Party.
– The “New Deal Coalition” of minorities, urban
workers, white southerners
• Changed the relationship between
government and the people (“social
contract”
– Changed expectations
• Moved the economy toward a “mixed
economy”
– No longer laissez-faire capitalism
– Now “regulated” capitalism
• Dramatically expanded federal government
authority
– Reduced role of states & local governments
• Economic policies became barriers against
another depression
– FDIC, SEC, unemployment compensation,
social security, farm price supports, minimum
wages
– Began using counter-cyclical spending to
moderate the business cycle (Keynesian
economics)
– Provider of social welfare
• What might have happened?
• An alternative scenario
– Fascism
– Germany in the 1930s?
• Adolph Hitler and the National Socialists
– Socialism / communism