New Deal USHC 6.4

USHC 6.4 Analyze President Franklin Roosevelt’s New Deal as a response to the economic crisis of the Great Depression, including the effectiveness of New Deal programs in relieving suffering and achieving economic recovery, in protecting the rights of women and minorities, and in making significant reforms to protect the economy such as Social Security and labor laws.

New Deal Voters looked to the presidential candidate in 1932 to solve the problems that beset the nation and to protect the rights and well being of the American people. They elected Franklin Delano Roosevelt who immediately initiated a series of relief and recovery measures that came to be called the New Deal.

New Deal The New Deal is one of the most complex and controversial topics in United States History. The New Deal was not an attempt to introduce socialism in the United States, although that is what its critics claimed. Indeed, many historians argue that because of New Deal policies, capitalism was saved.

New Deal Although New Deal policies alleviated some suffering and offered hope to Americans in their bleakest hour, they did not solve the economic problems of the Depression Rather, massive government spending during World War II ended the Depression.

New Deal President Franklin Delano Roosevelt’s initial purpose in the New Deal was to: stabilize the economy help it recover relieve human suffering. The closing of the banks for a bank holiday stopped the escalating collapse of the banking industry.

Healing the Problems Roosevelt’s first Fireside Chat encouraged people to trust in the banks. When the banks reopened, the panic had subsided and the Government insurance of bank deposits instilled confidence in the safety of banks Regulations were placed on the stock market to prevent the conditions that led to the crash.

Healing the Problems The federal government sent millions of dollars to the states to use for relief, using deficit spending to boost the economy and ‘prime the pump.’ Farmers were paid government subsidies so that they would not plant so many crops, which addressed the traditional problem of overproduction and low prices

Healing the Problems Although this program stabilized prices and raised farm income, it hurt sharecroppers and tenant farmers by taking some farm land out of production. Rural electrification programs brought power to many. The government built dams to generate electricity for people in seven states.

Healing the Problems This created jobs for thousands of people who spent their government paychecks in the marketplace and thus stimulated the economy. Unemployed young men were given work in the nations’ parks. Other programs built bridges, hospitals, schools and air fields.

Healing the Problems Spending on cultural programs provided work to thousands of writers, artists, and actors and established the precedent for federal support of the arts. Job creation programs put some people to work, alleviated their despair, and pumped some money into the economy. However, the New Deal did not result in economic recovery.

Criticism of the New Deal Critics on the political left, including workers and labor unions, claimed that Roosevelt was not doing enough to redistribute income and help the elderly and the poor. Labor unions also demanded recognition of their right to bargain collectively.

Criticism of the New Deal Criticism from wealthy business owners on the political right was that the New Deal was too expensive and socialist. Franklin Delano Roosevelt was accused of taking too much power for the federal government and the executive branch and critics compared him to fascist leaders in Europe.

Criticism of the New Deal The conservative Supreme Court undermined New Deal programs by ruling several of them unconstitutional, including programs for farmers and workers. Conservatives also criticized Roosevelt for the unbalanced budget that provided the economic stimulus to halt the downward spiral and relieve the suffering of the people.

Court Packing Roosevelt responded to the actions of the Supreme Court by proposing a plan to increase the size of the Court. Roosevelt’s so-called “court-packing” plan fueled criticism from the Right; however, the Supreme Court did not overturn any subsequent New Deal reforms.

Social Security A national insurance policy was established for the unemployed, the disabled, the elderly and dependent children. Workers would pay into the plan for protection against unemployment as well as for retirement. Social Security, however, did nothing to immediately aid the recovery from the Depression since it took money out of paychecks and did not make payments immediately

New Deal Conservative critics of the New Deal cite the Social Security Act as evidence of going too far and laying the foundation for the welfare state. The New Deal also established minimum wage and maximum hours and recognized the right of workers to organize in labor unions and bargain collectively .

Criticism of the New Deal Taxes on those with large incomes, as well as estate taxes and taxes on corporate profits were raised in order to fund New Deal programs. Since the wealthy now had to bear a larger share of all government programs, their criticism for New Deal programs increased.

Criticism of the New Deal FDR responded to conservatives’ criticisms of the unbalanced budget due to deficit spending designed to stimulate the economy by cutting spending in 1937. The result was the recession of 1937 during which unemployment rates that had been on the way down went back up again. Deficit spending has been used since the 1930s to prevent depressions.

Effects on African-Americans Historians criticize the New Deal for not doing enough to protect the rights of women and African Americans. African Americans were the last hired and the first fired and so were disproportionally affected by the privation of the Depression.

Effects on African-Americans Forty-eight percent of black workers were unemployed in 1933 but they were not protected by the programs of the New Deal. The farm subsidies paid to landowners hurt sharecroppers and tenant farmers, who were often African American. The CCC was racially segregated and the TVA gave skilled jobs to whites.

Effects on African-Americans However there were significant attempts to address racial discrimination. President Roosevelt was the first president to make a concerted effort to consider the needs of African Americans. FDR regularly consulted the “Black Cabinet,” a group of African American government employees but not Cabinet members.

Effects on African-Americans Eleanor Roosevelt championed Marian Anderson against the Daughters of the American Revolution and arranged for her concert on the steps of the Lincoln Memorial. After African Americans threatened a march on Washington, a commission was established to protect the rights of African American workers in wartime industries Consequently, northern blacks began to vote for the Democratic Party.

Effects on Women During the Depression, women had to “use it up, wear it out, and make it do or do without.” They also had to find whatever work they could to help their families, despite job discrimination based on the idea that they were taking jobs away from men. The New Deal did not address the specific problems of women.

Effects on Women The CCC was limited to young men and other New Deal programs hired many more men than women. Some early business codes allowed a lower minimum wage for women. The Social Security Act failed to provide coverage for many women workers. President Roosevelt named the first woman to a cabinet level position, Frances Perkins, and relied upon his wife Eleanor for information and advice.

Overall! The New Deal recognized the role of labor unions and established minimum wage and maximum hours that were a goal of the unions of the late 1800s and the progressive movement of the early twentieth century; However, advancements for unions came under attack again in the 1950s. The New Deal was both a continuation of the progressive movement and a precursor to the reform movements of the 1960s, including the civil rights movement and the Great Society.