Depression and a New Deal

1929 to 1932 Stock market crash fall 1929 Local private relief agencies overwhelmed, many disappeared Became clear public agencies had to respond Clear poverty was result of social and economic (not psychological) factors

Hoover’s Response Hoover against “dole” and federal aid Thought public assistance would demoralize and enslave recipients Approved bill for starving cattle but opposed one to help starving farmers Saw public works employment programs as dangerous ideas

Roosevelt as N.Y. Governor Wicks Act – first state unemployment relief act Created Temporary Emergency Relief Admin under direction of social worker, Harry Hopkins Roosevelt also passed an Old Age Pension in NY “Government is not the master but the creature of the people.”

Roosevelt Elected President 1932 Initiated many programs to deal with immediate crisis -- alphabet soup Civilian Conservation Corps (reforestation, flood and fire) Public Works Administration (building projects) National Youth Admin (part time jobs for high school & college students)

U.S. Housing Authority (loans to build public housing) Basic idea – get people working, restore confidence Use the principle of work relief – earning not charity People could retain their dignity

Federal Emergency Relief Act FERA -- similar to NY measure established by Wicks Act Headed by Harry Hopkins Federal money to states to be administered by states and localities Each local office had to have at least one social worker on staff

Roosevelt Didn’t Like Relief Saw relief as temporary Saw need for more permanent measure to deal with dependency on long range basis Saw current crisis as result of social and economic forces of industrialization Summer 1934 appointed Committee for Economic Security

Committee on Economic Security Chaired by Frances Perkins and Harry Hopkins Edwin Witte (economist) and Wilbur Cohen major influences Committee report submitted in January 1935 and Social Security Act passed in August 1935

Frances Perkins Secretary of Labor under FDR First woman to hold a cabinet post ( ) Appointed by Truman to head Civil Service Commission in 1945 Commitment to improving the lives of workers; Deeply influenced by labor movement & Triangle fire Educated in economics and sociology; worked in settlement houses, among other things Active for women’s suffrage

Contributory Old Age Insurance Workers and employers taxed to finance retirement benefits (Old Age Insurance) Benefits based on how much they had earned and how long they had worked Encourage older workers out of jobs to make way for young

Unemployment Insurance Employers taxed for this purpose by federal government Federal government returned funds to states if they set up unemployment insurance programs

Public Assistance Old Age Assistance: federal government would help states provide aid to old who could not participate in Social Security Feds gave money to states for help for single parent families with dependent children (expansion of mother’s aid) Beginnings of AFDC – not controversial

Social Security Act Built on previous precedents Welfare only to aged and young “deserving poor” Tied benefits to stable long term labor force participation Left out a lot of people from social insurance initially No health insurance

New Ideas Helped prevent destitution and dependency Not a matter of individual weakness Federal aid to states for social welfare Federal government assumed responsibility for welfare of citizens

Effects on Social Work Profession Created many new jobs for social workers Created demand for new schools of social work Social workers learned about rural poverty Return of interest in social reform Social workers gained prestige Social work became accepted part of government in a modern state

What Ended the Depression? Deficit spending Mobilization for World War II