Group 5: Chapter 33

Jasmine Cho, Carolyn Motta, Ty Fenton, Carson Edmonstin

Housing Reform and Social Security

Federal Housing Administration (FHA) 1934: building industry would be stimulated by small loans to householders; considered an “alphabetical agencies” that would outlast the age of Roosevelt

United States Housing Authority (USHA) 1937: an agency designed to lend money to states or communities for low-cost construction.

Real-estate, promoters, builders, and landlords (“slumlords”) were completely opposed to this agency

But for the 1st time in the century, the slum areas in American began shrinking

Housing Reform and Social Security

Social Security Act of 1935: provided federal-state unemployment insurance (to cushion further depressions); specified categories of retired workers were to receive regular payments from Washington (to provide security for old age); provisions made for blind, physically handicapped, delinquent children, etc.

Because of the urbanized economy (no more simple agricultural jobs), government had to step up and take responsibility for the welfare of the citizens.

A New Deal for Unskilled Labor

(background: because of the New Deal expenditures, labor felt more confident and assertive. This led to walk outs in the summer of 1934 and a bloody strike in San Francisco known as “Bloody Thursday”)

Thus, the Wagner/National Labor Relations Act of 1935 was formed: created a new National Labor Relations Board that reasserted the right of labor to engage in self-organization and to bargain collectively. * a milestone in the labor movement.

John L Lewis (boss of the United Mine Workers) drove the organization of unskilled workers; created the Committee of Industrial Organization (CIO) [a part of the American Federation of Labor]. o The CIO used a revolutionary method known as

the sit-down strike. They refused to leave the factory building of General Motors (MI).

A New Deal for Unskilled Labor

Big companies such as the United States Steel Company accepted the CIO but “little steel” companies fought back → 1937 Memorial Day Massacre at Republic Steel Company in South Chicago

Fair Labor Standards Act 1938: industries involved in interstate commerce had to set up minimum-wage and maximum-hour levels; labor by children under 16 was forbiddeno Did not include agricultural jobs

therefore women, blacks, and Mexican-Americans did not benefit from this act.

CIO broke off from AF of L in 1938 & The Committee of Industrial Organization became the Congress of Industrial Organization.

New Deal or Raw Deal? Had some positive and negative

effects but was largely ineffective at countering the depression.

Negative arguments: Completely unprecedented.

Roosevelt was taking a great risk by passing this deal

National Government gained the most power out of any group.

National debt increased from 19,487,000,000 (1932) to 40,440,000,000 (1939)

Was biased towards laborers and farmers. Business people felt themselves restrained by the government, unable to make any advancement that might save them from the depression.

Failed to relive the depression

New Deal or Raw Deal? Positive Arguments:

Relief of workers was the goal, not saving the economy. Total collapse has been averted, fairer distribution of wealth Purged corrupt business owners from American capitalism

Barton J. Bernstein: “The New Deal may have saved capitalism from itself, but it had failed to help—and in many cases actually harmed—those groups most in need of assistance.”

Saved America from collapse by choosing the middle road

Helped preserve democracy in America while communism and dictatorship was increasing.

Landon Challenges "the Champ"

In 1936, the new dealers were on top. To face "the champ," republicans nominated the governor of Kansas,

Alfred M. Landon. ex-president Hoover endorsed Landon, and called for a "holy crusade

for liberty." Many Republicans also stated that Franklin "Deficit" Roosevelt's New

Deal was extremely radical and a "frightful waste." after hearing these statements, Roosevelt said that he welcomed

any "economic royalists" who dared to face him. The election was a landslide, with a 523 to 8 electoral vote count, and

a 27,752,869 to 16,674,665 popular vote in Roosevelt's favor.

Nine Old Men on the Bench.

Roosevelt took the oath on January 20th 1937 rather than the traditional March 4th.

Roosevelt saw his reelection as a mandate to  continue with the new deal reforms

However, the Supreme court stood in his way, they were extremely conservitive, and not one justice had been appointed during his first term.

To counter this, Roosevelt tried to get congress to pass legislation that allowed him to appoint a justice for all justices over 70 that wouldn't retire.

He claimed that the reason for this plan was to inject vigorous new blood, since he also believed that the court was far behind in it's work.

The Court Changes Course

FDR was vilified for trying to break down the checks and balances system of the three branches of government

he wanted to “pack” the Supreme Court with a “dicator bill”. He planned to expand the Supreme Court to as many as fifteen justices; Democrats strongly opposed.

FDR’s “court packing scheme” failed Justice Owen J. Roberts, a former conservative, started to vote

on the liberal side a 5 to 4 vote in the Supreme Court upheld a state minimum

wage for women the Court upheld the National Labor Relations Act (Wagner

Act) and the Social Security Act. the Court became more open to New Deal reforms over time, Roosevelt was able to make nine appointments to

the tribunal, due to all of the deaths and resignations – “unpacking” the court

The Twilight of the New Deal During Roosevelt’s first term, the

depression was still going on. Unemployment went down from

25% to 15% in 1936, but that was still pretty high.

In 1937, there was a depression-within-the-depression caused by government policies, known as the “Roosevelt Recession”

Finally, Roosevelt began to embracethe policies of British economist John Maynard Keynes. – “Keynesianism” became the new economic orthodoxy

Roosevelt announced a bold program that would stimulate the economy by planned deficit spending

He had also been supporting the New Deal reforms. The Hatch Act of 1939 barred federal administrative officials, and

forbade the use of government funds for political purposes. In 1940, the Hatch Act was broadened and placed limits on campaign contributions and expenditures

In 1938, the New Deal reforms lost much of their momentum..

Works Cited

John L. Lewis. Digital image. American Picture Links. 10 Mar. 2009 <http://cache.eb.com/eb/image?id=37290&rendTypeId=4>.

Labor Unions. Digital image. Ohio History. 10 Mar. 2009 <http://www.ohiohistorycentral.org/images/1339.jpg>.

1600. Digital image. Federal Housing Administration. Presidential Timeline. 10 Mar. 2009 <http://www.presidentialtimeline.org/html/images/objects/1600_lg.jpg>.

Potsdamer Platz 1930. Digital image. Socialism. 24 Oct. 2008. Eurobia. 9 Mar. 2009 <http://www.eks-pb.de/a_bis_zett/images/historisches/potsdamer_platz_1930.jpg>.

Social Security. Digital image. Mass Historia. 10 Mar. 2009 <http://www.masshistoria.net/wp-content/uploads/2008/08/social_security_626_article.jpg>.

"Disagreeing About the New Deal." The Great Depression and WWII. 11 July 2003. The Learning Page. 10 Mar. 2009 <http://memory.loc.gov/learn/features/timeline/depwwii/newdeal/disagree.html>.

Soyer, Isaac. Employment Agency. 1937. http://www.nisk.k12.ny.us/fdr/wait_for_fdr/33031101.gif http://www.cqpress.com/incontext/constitution/images/coaz4d_im203.jpg http://newdeal.feri.org/images/y64.gif