Chapter 15

The New Deal

Election of 1932:

• Republicans – Hoover• balanced budget, protective tariff, gold standard,

immigration restrictions, not repeal of Prohibition…• Democrats – Franklin D. Roosevelt

• repeal of 18th Am., balanced budget, competitive tariff, unemployment and old age insurance…

The Election of 1932

• FDR won and promised the people a “New Deal”

• Hoover was now a lame duck. • This led to the passage of the 20th Amendment which

moved up the presidential inauguration to Jan.

• 21st amendment repealed prohibition

Day 4 Ch. 15 The New Deal

• CQ: What was the New Deal? How did F.D.R. react to the challenges facing the country?

Franklin D. Roosevelt (32nd President)

• Appealed to the common man, especially southerners, powerful speaker.

• Surrounded himself with the “Braintrust”- expert advisors

• He used radio “fireside chats” to talk to the American people.

• He said, “The only thing we have to fear is fear itself”

What Challenges Faced FDR?

• Economy was in total collapse• Banks Closed• People are reluctant to invest or deposit money• Wages are low• Decline in value of agricultural commodities• Unemployment reigns

How did FDR respond?

• FDR called an emergency session of Congress for 100 Days…

• Implemented the NEW DEAL:• Extended government’s role in

regulating the economy• Restored consumer confidence

Goals Of New Deal- “3 R’s”

• Relief- from hunger, foreclosure, and suffering

• Recovery- employment, increase consumer spending

• Reform- banking practices, stock exchange, labor and business practices

FDR Created Alphabet Agencies

Banking & Investment

• Emergency Banking Act- kept banks closed until safe to open

• Federal Depositor’s Insurance Corporation (FDIC)- insured all deposits up to $5,000

Agricultural Adjustment Administration (AAA)

• Encouraged crop diversification • Paid farmers to leave land fallow• Destroyed livestock and crop surpluses

(infuriated many)• It hurt more than it helped and was later

declared unconstitutional.

Civilian Conservation Corps (CCC)

• Employed over 2 million single men• Earned $ and sent home• Lived in camps(free room and board)• Built roads, bridges, parks, etc.

Tennessee Valley Authority (TVA)

• Built bridges and dams(9)• Provided flood control• Produced fertilizer • Gave hydroelectric power to a very poor region

Rural Electrification Administration (REA)

• Less than 10% of rural households had electricity

• REA installed power lines to more than 225,000 homes

Works Progress Administration (WPA)

• Largest New Deal agency- $10 billion• Employed 8 million workers

• Constructed roads, buildings, bridges• Employed actors, musicians, artists, writers

Social Security Administration (SSA)

• Retirement pension for elderly• Helped disabled and accident victims• Unemployment assistance

• Deducted from paycheck• What are the current concerns about SS?

Housing Assistance

• Federal Housing Administration (FHA)

• United States Housing Authority (USHA)

Labor

• Wagner Act- strengthened union’s rights• Fair Labor Standards Act- banned child labor,

set minimum wage, overtime pay

Day 5

• CQ: What was the effects of the New DEAL? List some cultural things that came out of the 30’s.

Keynesian Economics

• John Maynard Keynes-British economist• Gov’t gives direct intervention and deficit

spending during times of economic hardship in order to stimulate economic recovery/growth

• Government spending exceeded tax base• Deficit reached $5 billion under FDR

Minorities and the New Deal

• Indian Reorganization Act• Gov’t stopped selling tribal lands• Tribes could elect tribal councils• Did not address discrimination

against African Americans

American Liberty League

Vocal opponents of the FDR & New Deal• Al Smith• Father Charles Coughlin• Dr. Townsend• Huey Long- Gov. of Louisiana, advocated income

redistribution, “Share Our Wealth” societies

Supreme Court v. New Deal

• New Deal programs were challenged in the Supreme Court and some agencies were found unconstitutional.

FDR’s Response

• FDR wanted to appoint 6 new Supreme Court Justices.

• Congress was furious and stopped him, felt he was overstepping his power

• Finally, a S.C. Justice resigned and FDR appointed Hugo Black (D-AL)

• This shifted balance in FDR’s favor• Over the next few years, 7 other Justices

resigned

FDR & the Supreme Court

Labor v. Capital

• Union membership grew, strikes resulted• American Federation of Labor (AFL) and

Congress of Industrial Organizations- (CIO) organized.

Major Strikes

• General Strike of textile workers (’34)- 400,000 workers strike

• Flint Sit-Down Strike- workers protest GM, workers sit-down at work and refuse to leave, draws a crowd of over 5,000 and in turn violence erupts with police

• Memorial Day Massacre(‘37)- Steel workers in Chicago strike, 10 killed and 90 injured by police

Flint Sit-Down Strike

Praise & Criticism of the New Deal

• Helped banking practices• Helped regulate security

exchange• Stimulated Industry• Employed Millions• Empowered Unions• Set minimum wage• Prohibited child labor• Encouraged crop

diversification

• Unemployment remained high- >15%

• Many people still suffered….

• DID NOT END THE DEPRESSION!

• Some programs were deemed unconstitutional

Popular Culture of the 1930’s

• Influenced by Depression, provided entertainment and escapism

• Culture captured the emotions of era

Movies

• Over 60% of Americans attended theaters weekly ($.25)

• Marx Brothers (video)• “Gone With the Wind”• Gangster films- “Little Caesar”

Literature

Same writers of the 1920’s• John Steinbeck- Grapes of Wrath• Margaret Mitchell- Gone With the Wind• Richard Wright- Native Son• Nora Zeale Hurston- Their Eyes Were Watching

God• Dale Carnegie- How To Win Friends and Influence

People

Radio

• Over 80% of Americans owned radios• Listened to FDR’s “Fireside Chats”, news, and

programs

• The Lone Ranger• The Green Lantern• Orson Welles- “War of the Worlds”

Comics

• Superman• Batman• Dick Tracy• Little Orphan Annie• Dr. Seuss

Music

• People wanted music that made them feel GOOD• Duke Ellington- “It Don’t Mean a Thing if it Ain’t Got

That Swing”• Louis Armstrong• Glenn Miller Orchestra• Shirley Temple (“Good Ship Lollipop” clip)

• But music reflected their hard times… (ex. Blues)• Folk/protest music became popular – Woody Guthrie

Grant Wood- American Gothic

Edward Hopper- Nighthawks

Grandma Moses

Horace Pippin

Alexander Hogue-Avalanche By Wind

Photography “Migrant Mother” Dorothea Lange