Economic Recoveries Coming Out of the Great Depression

New Deal Franklin Delano Roosevelt (FDR) – President – Created the New Deal Massive federal program focused on relief, recovery, and reform. During the Hundred Days (time period Congress met in 1933 to work out specifics of New Deal). Roosevelt was known for having fireside chats where he explained his policies to Americans by radio.

New Deal Programs First New Deal: 1933 – Federal Emergency Relief Program (FERA): relief projects given to 13 million unemployed – Public Works Administration (PWA):people hired to build roads, bridges, etc.. – Agricultural Adjustment Administration (AAA): promotes soil conservation and regulates farm production – Civilian Conservation Corps (CCC): hires young men to work on conserving environment – Federal Deposit Insurance Corporation (FDIC): protects bank deposits – National Recovery Act (NRA):regulated industry and raised wages and prices

2 nd New Deal: 1935 (focuses mostly on social reform) – Works Progress Administration (WPA): people worked on national works projects (internal improvements) – Rural Electrification Administration (REA) – Wagner Act: protects workers’ rights to form unions – Social Security Act: gives workers unemployment insurance and retirement benefits

Critics of the New Deal Supreme Court: most of the 9 justices did not support the New Deal programs. – Felt they were unconstitutional due to the federal government having too much power/control over the economy – Many New Deal programs were shut down by Supreme Court – FDR tried to “pack the court” with a bill/law that would add 6 justices to the Supreme Court (that he would choose). – Congress, both Reps and Dems rejected this bill – Eventually, by 1941, due to retirements and deaths of justices, FDR got a more sympathetic court Conservatives/Republicans: – Also argued that New Deal costs too much, running up government deficit – critics argued that the New Deal was basically a form of socialism since government sponsored businesses were competing with private businesses Example: Tennessee Valley Authority

Other Critics Some complained the New Deal didn’t go far enough: – Huey Long wanted a “Share the Wealth Program” which would tax the wealthy heavily to give money to the poor

Effects of New Deal It put millions of Americans to work=lower unemployment rate Labor Unions Gain Strength: AFL and CIO Power of presidency and size of gov’t increased FDR’s New Deal offered modest opportunities for minorities: – More women held gov’t positions than ever before (Francis Perkins became first female cabinet member ever) – Eleanor Roosevelt held regular press conferences for female reporters – African Americans hired to be a part of an advisory group to president – BUT FDR failed to support some civil rights bills for AA’s ; and he had many Mexican Americans (some of whom were legal) deported

Lasting Effects of New Deal Still a major debate over role and size of federal government between liberals and conservatives New Deal Programs remain such as: – FDIC, Social Security, Securities and Exchange Commission (SEC) monitors stock market today

WWII Pulls USA out of Depression War Production Board: coordinates production of military goods during war – By 1945 (end of the war), U.S. Gross National Product (GNP) increased from 90.5 billion in 1939 to 212 billion. – Factories built 300,000 aircraft and 75,000 ships during WWII, employing hundreds of thousands of workers – Rationing occurred: families limited to certain amounts of items: gas, rubber, meat, sugar, shoes, etc.. – Gov’t raised income taxes and sold war bonds to pay for war

Economic Effects of War for Minorities Hispanics worked in war industries – More than 300,000 fought in war More than 1 million African Americans worked in war industries (many migrated up North where most war industry jobs were) – Many served in armed forces (Tuskegee Airmen, etc..) About 40,000 Native Americans worked in war industries – Served in armed forces: Navajo Code Talkers

Women Make Economic Gains Demand for female labor increased due to war – Rosie the Riveter – 1940= 14 million women worked and by 1945 up to 19 million; many worked in war industries – More than 300,000 women served in armed forces: As nurses, mechanics, drivers, clerks,