7d. The New Deal 1932-1940

Reading Assignment #1 “Bank Holiday” Emergency Banking act Hundred Days National Recovery Administration Civilian Conservation Corps Public Works Administration Tennessee Valley Authority Agricultural Adjustment Act Dust Bowl Federal Housing Administration

Historical Perspective National, state and local reformers responded to economic upheavals, laissez-faire capitalism, and the Great Depression by transforming the United States into a limited welfare state. FDR saw the New Deal as an alternative to socialism on the left, Nazism on the right, and the inaction of upholders of unregulated capitalism.

The First New Deal (1933-35) Known as the Three R’s. Relief to the poor Stimulate recovery Reform the American economy FDR drew on earlier progressive ideas and represented a multifaceted approach to both the causes and effects of the Great Depression Stressed recovery

Relief Policies Emergency Banking Act - financial National Recovery Administration – business Federal Emergency Relief Administration

Recovery Policies Civilian Conservation Corps Public Works Administration Tennessee Valley Authority Agricultural Adjustment Act Federal Housing Administration

Reform Policies Federal Deposit Insurance Corporation Federal Communications Commission Securitas and Exchange Commission

The Dust Bowl Period of extreme drought that hit’s the Great Plains Added to the plight of the farmers. Many migrated to California in search of jobs.

Reading Assignment #2 “Labor’s great upheaval” Congress of Industrial Organizations Sit-down Huey Long Dr. Francis Townsend Father Charles Coughlin

Reading Assignment #3 Works Progress Administration Federal Writers’ Project Wagner Act Rural Electrification Agency Social Security Act Fireside Chat Welfare State “Court Packing” Fair Labor Standards Act American Liberty League

Second New Deal 1934-1936 Focused on economic security to protect Americans from unemployment and poverty Recommitted himself to creating jobs – extending to the arts. Most far reaching was the Social Security Act which led to the creation of the American version of the Welfare State.

FDR’s Battle with the Court Made a serious political miscalculation Concerned that the Supreme Court was becoming critical of his legislation he wanted to add 6 additional justices. Congress refused and the public was upset. But it did cause the justices to back off on their criticism.

New Deal Was Not Successful But, FDR had the gift to make it sound as though it was successful.

Limitations of the New Deal Women: Brought more women into government with FDR appointments and the work of Eleanor Roosevelt. However, inspired widespread demands for women to leave the work force. African-Americans: As a result of pressure from Southern Democrats, the Social Security law was not applied to agriculture and domestic workers. Forced many to depend on the welfare rolls.

Continued ….. American-Indians: The Indian New Deal ended the policy of forced assimilation and allowed Indians unprecedented cultural autonomy. Mexican-Americans: Wagner and Social Security did not apply to agricultural laborers. Many were forced to return to Mexico.

Increased Racism and Discrimination “Last hired and first fired” policy hit African Americans first as the Depression set in. “Don’t Buy Where You Can’t Work” was leading edge of Civil Rights Movement Shift of support from Republicans to Democrats. Increased federal discrimination in housing.

The Appeal of the Communist Party Seemed a good alternative to the evils of capitalism Popular Front Arts Challenges to racism (Scottsboro Boys) Stress civil liberties (Labor Unions) Led to Un-American Activities Committee and the Smith Act (Red Scare is reignited).

New Deal Ends As the administration begins to refocus on the issues emerging in Europe.

Legacy of the New Deal Although the New Deal did not completely overcome the Depression, it left a legacy of reforms and agencies that endeavored to make society and individuals more secure, and it helped foster a long-term political realignment in which many ethnic groups, African Americans, and working-class communities identified with the Democratic Party.