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• 21st amendment repealed prohibition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