The Rise of the New Deal Order

Liberalism in 1930s and 1940s

The New Deal, 1 & 2

Two New Deals, First and Second Experimentation: first 100 days and after Not always consistent, some things worked,

some things didn’t Three main goals: Relief, Recovery, Reform World War II finally ended Depression by

achieving some of the goals of the 2nd New Deal - Keynesianism

The First New Deal, 1933-1935 FDR elected in 1932 landslide Major goal: decrease production (which would raise

prices for goods, then get industry going again, people back to work)

Major means of achieving goal: AAA and NIRA (both in 1933)

Methods: voluntary cooperation (Hoover tried this) among private industries and farmers to cut production, maintain wages and employment

Effective for farmers Not effective for industry; industrialists couldn’t get

along; ruled unconstitutional (interstate trade)

First New Deal (cont.)

Other goals/methods/achievements: Banking Acts reform: FDIC, guaranteed deposits, halted

bank runs SEC reform, oversees and regulates stock market SEC rules: must divulge financial info., no paper

companies, separate commercial and personal banking (in place until 1970s deregulation)

CCC/WPA etc. – direct temporary relief (money in pocket), recovery (spend money in economy), pride, respect

TVA – relief, recovery – flood control and employment; reform b/c public projects would be used as yardstick Targeted as “creeping socialism”

First New Deal and Workers’ Rights

NIRA contained labor provisions which were legally enforceable

Section 7a: right to organize union; prohibited court injunctions against strikes

Outlawed child labor Set 35-hour industrial work week 40 cents/hour minimum wage Workers and others seized on this aspect of

First New Deal, pressured for more

Second New Deal, 1935-1941 Government as countervailing power to

business Business had too much power Govt. and labor can act as counterweight to

business power Anti-monopoly Basis for modern liberal ideas - Liberalism

Underconsumptionism = Keynesianism: government must “prime the pump” – provide relief, jobs, economic growth to increase public consumption of goods/services = economic growth, industry, jobs, income…

Second New Deal (cont.)

NLRA, the Wagner Act (1935): labor’s “Magna Carta”, guaranteed right to join a union

Social Security Act (1935): established social safety net

Wealth Tax Act: taxes on wealthiest to 75% Progressive taxation – higher on wealthiest

FDR’s Big 1936 victory – showed support for 2nd New Deal vs. 1st New Deal and critics

The CIO and the Labor Movement

CIO formed in 1936, industrial unions, rival to AFL trade unions

John L. Lewis, head of UMW and other CIO leaders said “FDR wants you to join a union” – made union membership patriotic

Flint, Michigan, GM sit-down strike in 1937; 170 sit-downs all over nation by March

Union members: 3 mil in 1933; 10.5 mil in 1941 Unionized major industries for first time: auto,

steel, meatpacking, rubber Videos: GM Sit-down; Unionizing Ford

Flint Sit-down Strike, 1936-37

Three Stooges, Sit-downers

StudsTerkelInterview

Political Realignment, The New Deal Coalition New Democratic Party majority composed of:

Liberals and leftists Workers, union members Urban ethnic groups, immigrants African Americans Southern Democrats

Problems/weaknesses in coalition?: Diversity, regional divisions, So. Dems vs….

New Deal Culture:

Take mind off of problems:

New Deal Culture: Inspiring hope and confidence:

New Deal Culture Charles Sheeler vs. Dorothea Lange:

Sheeler, Ford Plant, River Rouge,Criss-Crossed Conveyors, 1927 Lange, Migrant Mother, 1936

New Deal Culture:

Focus on work and workers; problems of machine:

New Deal Culture:

Focus on work and workers:

New Deal Culture: Focus on Flawed Economic System and

Effects of Great Depression:

Unemployed, nottheir fault

Unemployment:The search for work crossed lines of race and age

New Deal Culture: Public Works Projects provided jobs and self-

respect:

CCC workers built National Parks, public buildings,fought forest fires, and other public works

New Deal Culture: Focus on innocent victims of economic

problems and the less powerful:

New Deal Culture: Focus on rural poor, forgotten Americans: John Steinbeck’s The Grapes of Wrath Dorothea Lange’s FSA photographs Regionalist painters and artists focused on rural

regions, farmers,

small town America Woody Guthrie’s

songs

Dorothea Lange: Child and Her Mother, Wapato, Yakima Valley, Washington

Dorothea Lange: White Angel Bread Line, San Francisco

Dorothea Lange:

Dorothea Lange:

New Deal Questions and Issues

Theme for the rest of this class: What happens to the New Deal Order? Upheld and Strengthened? Attacked and Dismantled?

Extended to other groups, rest of population? African Americans Women Entitlement vs. pitied