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America: A Concise History
Fourth Edition
CHAPTER 24
Redefining Liberalism: The New Deal19331939
Copyright 2010 by Bedford/St. Martins
James A. Henretta David Brody
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Introduction: New Deal
March 1933 President Roosevelt gave aninaugural address attempting to dispel the
gloom and despondency of the nation. The only thing we have to fear is fear itself.
The President asked congress for broadExecutive power to wage war against theeconomic emergency.
Roosevelt launched a program of federalactivismthe New Deal.
(p.701)
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Introduction: New Deal
The New Deal represented a new form ofliberalism, the ideology of individual rights
that long shaped American society andpolitics.
Classical 19th Century liberalism keptgovernments small and relatively powerless.
The regulatory liberals of the Progressive
era had safeguarded freedom bystrengthening the authority of the state.
(p.701)
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Introduction: New Deal
New Deal activists went furthertheir socialwelfare liberalism expanded the individuals
right to governmental assistance. From the 1930s-1970s, social welfare liberals
increased the scope of national legislation:
created a centralized administrative system;
and initiated new programs such as
Social Security and Medicare.
(p.701)
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The New Deal Takes Over, 19331935
The Roosevelts Leadership
The Hundred Days
The New Deal Under Attack
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The New Deal Takes Over,
19331935 The Great Depression destroyed the political
reputation of Herbert Hoover and boosted
that of FDR. Ironically, there were not greatideological differences between Hoover andFDR.
Both believed in a balanced government
budget. Roosevelts charm and willingness to
experiment made him popular.
(p.702)
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Roosevelts Leadership
Roosevelt established a close rapport with theAmerican people. 450,000 letters 5000 a weekthroughout the 1930s.
The President used the medium of radio in hisfireside chats.
Fireside Chat #4 1933/10/23
He strengthened Presidential powers that hadbeen expanded under Teddy R. and Wilson.
He sat up a brain trust of professors from
Columbia and Harvard.(p.703)
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Expanding FederalBureaucracy
Talented intellectuals and administersattracted hundreds of highly qualified recruitsto Washington.
Young professors and newly trained lawyersstreamed out of Ivy League universities intothe expanding federal bureaucracy.
Inspired by the idealism of the New Deal,many of them devoted their lives to publicservice and the principles of social welfareliberalism.
(p.703)
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The Hundred Days
Roosevelt promised action now and he kept
his promise.
In a legendary legislative session, known as theHundred Days Congress enacted 15 majorbills that focused on major problems such as
Banking failures.
Agricultural overproduction The Business slump
Soaring unemployment.
(p.703)
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The Hundred Days
The first effort was to address the bankingcrisis. Roosevelt declared a banking holidayon March 5.
4 days later Congress passed the
Emergency Banking Act which allowedbanks to reopen under Treasury Departmentoversight.
The Glass-Steagall Act created the FDIC(Federal Deposit Insurance Corporation)
4000 banks collapsed prior to Roosevelts
inauguration; only 61 closed in 1934.
(p.703)
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Other initiatives
Congress created the Home Owners LoanCorporation
The Civilian Conservation Corps (CCC)mobilized 250,000 young men to doreforestation and conservation work.
The Tennessee Valley Authority was set upto produce cheap hydroelectric power. TheTVA was criticized as creeping socialism.
(p.704)
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Farming
The Agricultural Adjustment Act began directgovernmental regulation of the Farm economy tosolve the problem of overproduction and low
prices. The AAA led to reduction of farm output, providing of cash subsidies to some farmers,
strengthening of large landholders.
By dumping cash in the farmers hand (a specialinterest policy that continues to this day) theAAA stabilized the farm economy.
(p.705)
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Agricultural Adjustment Act
The AAA set up an allotment system for wheat, cotton,
corn, hogs,
rice, tobacco
and dairy products. The AAA led to
providing of cash subsidies to some
farmers. reduction of farm output.
strengthening of large landholders.
(p.703)
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Unintended consequences
Subsidies went primarily to the largelandowners who often cut production by
reducing the amount of land they rented totenants sharecroppers.
In the South, where many sharecropperswere black and landowners and government
administers were white, such practicesforced 200,000 black families off the land.
(p.706)
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Manufacturing
The New Deals response to depression in
manufacturing was the National Industrial
Recovery Act. It introduced European corporatist theories
of government planning that had beenimplemented in Italy by Benito Mussolini.
The National Recovery Administration(NRA) set up self governing associations insix hundred industries.
(p.706)
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Unemployment The administration quickly addressed the
problems of massive unemployment andimpoverished working families.
In May Congress established the FederalEmergency Relief Administration (FERA),directed by Harry Hopkins.
In his first hours in office, Hopkins distributed $5million for relief programs.
The New Deal put people to work with thePublic Works Administration (PWA)
(p.706)
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Public Works Projects
Legislation in the first hundred days of theNew Deal began large-scale public worksprojects.
Early 1933, Congress appropriated 3.3 billion for thePublic Works Administration.
Nov. 1933, Roosevelt established the Civil WorksAdministration with Harry Hopkins and gave it 400
million. Within 30 days 2.6 million men and women were put
to work.
(p.707)
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Selling the NRA inChinatown
To mobilize support for itsprogram, the NationalRecovery Administration(NRA) distributed millionsof posters to businessesand families, urging them
to display the "Blue Eagle"in shops, factories, andhomes.
Here, Constance King andMae Chinn of the ChineseYMCA affix a poster (and aChinese translation) to ashop in San Francisco thatis complying with the NRAcodes. Bettmann/Corbis.
(p.707)
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The New Deal Under Attack
Roosevelt attempted to reform Wall Street.
Insider trading, fraud, and reckless speculationhad helped trigger the financial panic of 1929.
Congress established the Securities andExchange Commission (SEC) to regulate thestock market.
The Banking Act of 1935 authorized thePresident to appoint a new board of governorsfor the Federal Reserve System.
(p.708)
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The New Deal Under Attack
The New Deal came under attack fromeconomic conservatives and the politicalright
1934, Republican business leaders joined withconservative Democrats to form the LibertyLeague that lobbied against reforms.
The businessmen and politicians of theLiberty League attacked Roosevelt foradvocating socialist policies.
(p.708)
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The Supreme Court The Supreme Court repudiated many New Deal
measures.
May 1935, the Court ruled the National
Industrial Recovery Act unconstitutional Schechter v. United States: a firm in Brooklyn,
New York sold diseased chickens to local
storekeepers in violation of NRA codes. Herbert Hoover condemed the NRA as state-
directed economic system.
(p.709)
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Father Charles Coughlin
Father Charles Coughlin challenged Roosevelt'sleadership in the Midwest.
He was a Catholic priest from Detroit who usedthe radio in the mid-1920s to enlarge his parish.
1933, 40 million Americans listened to Coughlinsbroadcasts. He initially supported the New Dealbut turned against when Roosevelt refused to
nationalize the banking system and expand themoney supply.
Coughlin organized the National Union forSocial Justice.
(p.709)
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Southern Populism The most direct political threat to Roosevelt
came from Senator Huey Long of Louisiana.
Long was the democratic governor in LA from1928 to 1932 and was stunningly popular.
He increased taxes on business corporations,lowered utility bills and built new highways.
In order to achieve this, he seized dictatorialcontrol of the state government.
As a Senator in 1934, he broke with the NewDeal and established Share Our WealthSociety, with 4 million members.
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(p.709)
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Growing authoritarianism
Although many of Coughlin and Longs
proposals were similar to the New Deal, they didnot have much respect for representative
government. Coughlin advocated dictatorial rule to preserve
democracy.
Long declared Im the constitution around here.
Voters seemed untroubled by their authoritarianviews.
(p.710)
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The Second New Deal, 19351938
Legislative Accomplishments
The 1936 Election
Stalemate
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The Second New Deal,
19351938 Under attack from the conservative right and the
populist left, Roosevelt fashioned a liberalprogram.
Historians have labeled this shift in policy as TheSecond New Deal.
Roosevelt now openly criticized the money
classes. He borrowed parts of Coughlin andLongs proposals with a tax increase on
corporate profits and wealthy citizens.
(p.710)
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Legislative Accomplishments
The first New Deal focused on economicrecovery the second New Deal emphasized
social justice. The Second New Deal used national
legislation to enhance:
the power of working people
the economic security of the old, disabledand unemployed.
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Legislative Accomplishments
The first beneficiary of Roosevelts move
to the left was the labor movement.
There was a rising number of strikes in 1934. The Wagner Act (1935) upheld the right of
industrial workers to join unions.
The Act forbade employers to fire workersfor union activities.
The Wagner Act did not apply to farmworkers.
(p.711)
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Legislative Accomplishments
The Social Security Act included old agepensions for most privately employed
workers. It also established a federal-state system of
workers compensation for unemployedworkers.
At the insistence of southern Democrats, farmworkers and domestic servants wereexcluded.
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The Welfare State
The Social Security Act was a milestone inthe creation of an American Welfare State
The Act mandated aid to various categoriesof Americans such as the blind, deaf, anddisabled as well as disabled children.
Aid to Families with Dependent Children
(AFDC) enrolled 14.1 million Americans by1994, 60% of whom were black or hispanic.
(p.711)
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The 1936 Election As the 1936 election approached, new voters
joined the Democratic Party. Many hadbenefited from New Deal programs.
Republicans did not challenge the New Dealdirectly. They choose Afred Landon, gov. ofKansas as their candidate.
Republicans criticized Roosevelt as potentiallyauthoritarian, along the lines of Europeanfacism.
Roosevelt won by 60% of the vote.
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The 1936 Election
The
(p.713)
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Stalemate
FDR was inaugurated in January of 1937.
His hopes of expanding the liberal welfare
state were quickly dashed by the SupremeCourt.
Staunch opposition also arose withinCongress and in the South.
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Stalemate
1935, the Supreme Court struck down aseries of New Deal measures by a narrowmargin of 5 to 4.
Roosevelt stunned Congress by asking forchanges in the Court. Congress rejected hisproposal after a bitter months-long debate.
Roosevelts attempt to alter the SupremeCourt suggested to many critics that hewas sidestepping the Constitution.
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Stalemate
Although Roosevelt lost the battle, he won thewar.
The Court upheld a California minimum wagelaw and the Wagner and Security Acts.
Several Supremes resigned, allowingRoosevelt to reshape the Court with new
appointees.
William O. Douglas, Hugo Black and FelixFrankfurter were appointed.
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Stalemate The Roosevelt recession of 1937-1938 was
caused by slashing the federal budgetinadvertently costing jobs.
The stock market dropped and unemploymentsoared from 14 to 19 percent.
Keynesian economics
Deficit spending The New Deal ran out of steam.
Roosevelt was a reformer not a revolutionary.
(p.714)
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The New Deals Impact on Society
The Rise of Labor
Women and Blacks in the New Deal
Migrants and Minorities in the West
A New Deal for the Environment
The New Deal and the Arts
The Legacies of the New Deal
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The New Deals Impact on
Society The New Deal had a tremendous impact on
the nation and altered Americans relationship
to their government. To serve a diverse constituency, New Dealers
created a sizable federal bureaucracy; thenumber of civilian employees increased by
80% between 1929 and 1940 and reached atotal of 1 million.
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The Rise of Labor
Labor unions increased in clout and numbersduring the New Deal.
The Wagner Act made it easier for unions toorganize workers to win recognition frommanagers, secure higher wagers, sonoritysystems and grievance procedures.
By the end of the decade there were almost 9million unionized workers in the nonfarmworkforce.
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The CIO
The Congress of Industrial Organizations(CIO) was more inclusive of minorities.
John L. Lewis was the leader of the UnitedMine Workers (UMW) and was the foremostexponent of industrial unionism.
The CIO scored its first major victories
against General Motors and the U.S. SteelCorporation.
(p.716)
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The Rise of Labor The 1930s constituted the most successful
period of labor organizing in American history.
1937: Labor unions called nearly 5000 strikes
and won favorable settlements in 80% of thecases.
CIO allied itself with the Democratic Party.\
Roosevelt never gave unions a high priorityalthough the New Deal did recognize industriallabor as legitimate.
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Women in the New Deal
The New Deal did not directly challenge genderinequality; no legislation was passed guaranteeinggender equality in the workforce until the 1970s.
However, the doors were opened under Roosevelt forwomen granted appointments to cabinet-levelpositions.
Women were much more visible in the workplace.
The New Deal provided the context for thedevelopment of a a womens network for feminist and
reform causes.
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Blacks in the New Deal
The needs of black Americans received low priority. 1931, Scottsboro, Alabama, nine young black men
were accused of rape by two white women ridingon a freight train.
Despite the inconsistencies of the womens stories,
all 8 received death sentences within weeks. TheU.S. Supreme Court overturned the sentences.
White mobs lynched 20 blacks in 1930 and 24 in1934.
(p.718)
Scottsboro Defendants
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Scottsboro Defendants
The 1931 trial in Scottsboro, Alabama,
of nine black youths accused of rapingtwo white women became a symbol ofthe injustices African Americans facedin the Souths legal system.
Denied access to an attorney, thedefendants were found guilty, andeight were sentenced to death.
When the U.S. Supreme Courtoverturned their convictions in 1932,the International Labor Defenseorganization hired the noted criminalattorney Samuel Leibowitz, whoeventually won the acquittal of fourdefendants and jail sentences for the
rest. This photograph, taken in a Decatur
jail, shows Leibowitz conferring withHaywood Patterson, in front of theother eight defendants
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The Great Migration Many blacks left the South and moved north To Harlem.
Since the emancipation, most blacks had supported theparty of Lincoln (Republican).
Unemployment in Harlem rose to 50% in 1933.
During the New Deal, blacks largely deserted theRepublican Party for the Democratic Party.
1936, northern blacks gave Roosevelt 71% of their vote.
In Harlem, black support for the President reached anextraordinary 81%
African American have remained Democratic since then.
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The Indian
Reorganization Act The Indian Reorganization Act of 1934, reversed
the Dawes Act of 1887 and promoted self-
government for reservation Indians. A majority of Indian peoples (174 tribes) accepted
the reorganization policy.
78 tribes refused, desiring to continue their policyof consensus rather than majority vote.
The government adopted an attitude of culturalpluralism.
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Migrants and Minorities in the
West After 1870 the American West grew
dramatically in population and wealth.
1920s, agriculture in California had becomebig business. Lettuce, tomatoes, peaches,grapes and cotton.
Thousands of workers migrated from Mexico
to help with the long harvest season. 1930, the census reported 617,000 Mexican
Americans.
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Migrants in the West
The New Deal benefited the situation ofMexican Americans.
New Deal initiatives supporting unions was
helpful for the acculturation of Mexicans. Many Mexicans joined the Democratic Party.
Farm worker Cesar Chavez experienced
discrimination as a child. 1962, Chavez organized the United Farm
Workers a union of Mex-American laborers.
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Asian Migrants
Migrants from China, Japan and thePhilippines were a significant presence insome western cities.
Chinese Americans were less prosperous thanJapanese.
San Francisco most Chinese worked in smallethnic businesses; restaurants, laundries and
textile firms.
In 1931, approx one-sixth of San FransChinese pop was receiving public aid.
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Filipino immigrants Filipinos were unaffected by restrictions on
Asian immigrations in 1924 because theywere from a U.S. territory.
As the depression cut wages, Filipinoimmigration decreased.
The Tydings-McDuffie Act of 1934 grantedindependence to the Philippines andreclassified all Filipinos in the U.S. as aliensand restricted Filipino immigration.
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Dust Bowl California became a destination of hope among
farmers fleeing the dust bowl of the Great
Plains.
Between 1930 and 1941, a severe drought
afflicted the semiarid states of Oklahoma, Texas,New Mexico, Colorado, Arkansas and Kansas.
The Dust Bowl was of human creation. Farmerspushed the agriculture of the Great Plains beyondits natural limits.
The ecological disaster led to a mass exodus.
The Grapes of Wrath, John Steinbeck.
(p.721-22)
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A New Deal for the Environment Concern for the land was a dominant theme
of the New Deal.
The most visible undertaking was the
Tennessee Valley Authority (TVA) which wasintended to limit flooding and erosion in a 7state area.
1933, Roosevelt encouraged Congress to
fund the TN project.
The dams and the hydroelectric plantsprovided cheap electric power.
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Rural Electrification
1935, The Rural Electrification Project (REA)was another attempt to improve the quality ofrural life.
Less than one tenth of the nations 6.8 million
farms had electricity.
Private utilities balked at the expense of runningelectric lines to individual farms.
The REA created nonprofit farm cooperatives. By 1940, 40% of nations farms had electricity,
by 1950, the number rose to 90%.
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Electricity
Electricity brought many changes to rural life.
Electric machines and water pumps saved hoursof labor.
Electric irons, vacuum cleaners and washingmachines made house work easier.
Radios integrated rural areas into national culture.
Electric lights lengthened the time children could
read and families eat meals.
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Land management
Following the Dust Bowl disaster, thegovernment focused on proper landmanagement.
220 million trees were planted from Texas toCanada.
CCC and WPA workers built the famous BlueRidge Parkway which connects Shenandoah
National Park in VA with the Great SmokeyMountains National Park in North Carolina.
(p.725)
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Art for the millions
As a response to the Great Depression, manyAmerican writers and artists redefined theirrelationship to society.
The New Deal funded many arts projects.
A WPA project known as Federal One put
unemployed artists, actors and writers to work.
Art for the millions was a slogan thatencouraged painting of murals on public bldgs.
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The Federal Art Project
FAP gave work to many young artists who wouldbecome the 20thcenturys leading artists.
Jackson Pollock, Alice Neel, William de Kooning,and Louise Nevelson all received support.
The Federal Music Project employed 15,000musicians and government-sponsored orchestras.
Composer Aaron Copeland wrote Billy the Kid
(1938) and Rodeo (1942) for the WPA. Musicologists Charles and Ruth Crawford Seeger
cataloged hundreds of American folk songs.
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The Federal Theatre Project
The most ambitious program was the FTPUnder the direction of Hallie Flanagan, the FTPreached an audience of 25 to 30 million people infour years of existance.
Talented directors and playwrights included OrsonWells, John Huston and Arthur Miller.
Many FTP productions took a critical look at
American social problems which brought it underattack in Congress as sympathetic to communismand its funding was cut off in 1939.
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The documentary impulse
Documentary artists focused on actual eventsthat were relevant to peoples lives.
John Steinbecks The Grapes of WrathandJohn Dos Passos USA Trilogyused actualnewspaper clippings and headlines in its story.
The Depression itself left a deep psychic wound,an invisible scar in peoples minds that lasted
for half a century.It was a legacy of fear but also a desire foracquisition.
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The Legacies of the New Deal
That was the Great Depression that stark
terror of losing control over life.
The New Deal attempted to restore hope andsecurity.
FDRs New Deal redefined the regulatory
liberalism of the Progressive era
And created a powerful national bureaucracyof a social welfare state.
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The Legacies of the New Deal
During the 1930s, millions of people began topay taxes directly to Social SecurityAdministration and to the Internal Revenue
Service. More than one-third of the population also
received government assistance from federalprograms.
Like all major transformations, the New Dealwas criticized for either doing too much or toolittle.
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Varieties of liberalism
Classical liberals criticized the New Dealfor intruding deeply into the personal andfinancial lives of citizens.
Advocates of Social Welfare liberalismcomplained that the New Deals safety net
had too many gaping holes, especially whencompared to Europe.
They pointed out that there was no health-care system, that benefits were minimal andexcluded domestic and farm workers.
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Political realignment
By the 1960s there would be significantexpansion of social-welfare programs duringthe Great Societyinitiative of President
Lyndon Johnson. The New Deal transformed the American
political landscape. Since the Civil Warfrom1860 to 1932the Republican Party hadcommanded the votes of a majority ofAmericans.
That changes with the New Deal.
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Political realignment
Millions of voters were brought into theDemocratic Party.
Immigrants from Italy, Poland, African Americans
and Jews all realigned with the Democrats. Organized labor aligned itself with Democrats.
The New Deal wrestled with the racial issue.
Roosevelt and the Democrats depended on theSouthern Whites but Democrats in the Northand West opposed racial discrimination.
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Southern Opposition
Beginning in the late 1930s, southern Democratsrejected further expansion of the federal powerfearing that it would be used to undermine white
rule. This southern Democratic opposition, along with
WWII, caused the New Deal to come to an end in1938.
As Europe moved toward war and Japan flexedits muscles, Roosevelt pushed reform into thebackground and focused on foreign affairs.
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Summary
F.D. Roosevelts first New Deal focused on
stimulating recovery, relief to the unemployedand regulating banks.
The Second New Deal promoted social-welfare legislation to provide economicsecurity.
The New Deal benefited women and blacks,union workers, migrant workers from Mexico,Asians and okies.
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Summary
African Americans shifted in massivenumbers from their traditional loyalty to theRepublican Party, to the New DealDemocrats.
The Partys coalition of white southerners,
ethnic workers, farmers, and the middle class
gave FDR and other Democrats a landslidevictory in 1936.
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Summary
In 1933, the New Deal resolved the bankingcrisis, while preserving capitalist institutions.
It expanded the federal government thru The Social Security system,
Farm subsidy programs,
Public works projects.
The TVA and the WPA built great dams andelectricity projects and improved the quality ofnational life.
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Huey P Long Segment from Documentary on the1930s, "Just Around the Corner"
2 of 10 Kingfish A Story of Huey P. Long HBO 1995
http://www.youtube.com/watch?v=3YX0ea9bak8&pla
ynext=1&list=PL47AC7DCE2414D580
3 of 10 Kingfish A Story of Huey P. Long HBO 1995
http://youtu.be/0Y3UjM-vhAshttp://youtu.be/0Y3UjM-vhAshttp://youtu.be/0Y3UjM-vhAshttp://www.youtube.com/watch?v=3YX0ea9bak8&playnext=1&list=PL47AC7DCE2414D580http://www.youtube.com/watch?v=3YX0ea9bak8&playnext=1&list=PL47AC7DCE2414D580http://youtu.be/3mOHs8fuCbIhttp://youtu.be/3mOHs8fuCbIhttp://youtu.be/3mOHs8fuCbIhttp://youtu.be/3mOHs8fuCbIhttp://www.youtube.com/watch?v=3YX0ea9bak8&playnext=1&list=PL47AC7DCE2414D580http://www.youtube.com/watch?v=3YX0ea9bak8&playnext=1&list=PL47AC7DCE2414D580http://youtu.be/0Y3UjM-vhAshttp://youtu.be/0Y3UjM-vhAs -
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The New Deal 5 mins and 25 secs.
Roosevelt And U.S. History: 1930-1945 (clip) 2 mins
The Great Depression 1929 - Documentary -10 mins.
History Channel - The Great Depression 3.38 mins.
ONLINE
http://youtu.be/TRw-OQYDe2Mhttp://youtu.be/2eQRGosyd1Mhttp://youtu.be/nyAZGqFtVjwhttp://youtu.be/f8k0jJdqKP0http://youtu.be/f8k0jJdqKP0http://youtu.be/f8k0jJdqKP0http://youtu.be/f8k0jJdqKP0http://youtu.be/f8k0jJdqKP0http://youtu.be/nyAZGqFtVjwhttp://youtu.be/2eQRGosyd1Mhttp://youtu.be/2eQRGosyd1Mhttp://youtu.be/2eQRGosyd1Mhttp://youtu.be/TRw-OQYDe2M -
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The Great Depression, World War II, and AmericanProsperity - Part 1 [Lecture 5] by Thomas Woods
The Economics of the New Deal and World War II
[Lecture 12 of 15] by Thomas Woods
ONLINE
LECTURES
Chapter 24
http://youtu.be/vW5yvuyhVyIhttp://youtu.be/vW5yvuyhVyIhttp://youtu.be/3SNW0os5HpUhttp://youtu.be/3SNW0os5HpUhttp://youtu.be/3SNW0os5HpUhttp://youtu.be/3SNW0os5HpUhttp://youtu.be/vW5yvuyhVyIhttp://youtu.be/vW5yvuyhVyIhttp://youtu.be/vW5yvuyhVyIhttp://youtu.be/vW5yvuyhVyIhttp://youtu.be/vW5yvuyhVyI -
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Chapter 24Redefining Liberalism: The New Deal
19331939
Map 24.1 Public Works in the New Deal: The PWA in Action, 19331939(p. 712)
Map 24.2 The Tennessee Valley Authority, 19331952 (p. 723)
FDR (p. 702)