Chapter 27: New Deal America

 Chapter 27: New Deal America

  • 3 R’s

    • Reviving the economy

    • relieving the widespread human misery

    • Rescuing the farm sector and its desperate families

  • Emergency Banking Relief Act

    • 9 March

    • Permitted the sound banks to reopen and appointed managers for those that remained in trouble

  • Fireside Chat

    • 12 March

    • FDR assured 60 million Americans it is safer to have their money in the bank

  • 21st Amendment: ends prohibition

  • Hundred Days

    • 9 March - 16 June

    • Congress endorse 15 major pieces of legislation that transformed the role of the federal government in social and economic life

  • First New Deal: addresses the acute debt problem faced by farmers and homeowners

  • Federal Deposit Insurance Corporation (FDIC) guaranteed personal bank deposits up to $5,000

  • Civillian Conservation Corps (CCC)

    • Provides jobs to men

    • Built bridges, campgrounds, fish hatcheries, etc

    • Enrollees could earn high school diplomas

  • Federal Emergency Relief Administration (FERA)

    • Addressed the broader problems of human distress

    • Federal assistance to the unemployed

  • Civil Works Administration (CWA)

    • Put people on government payroll

    • Federal jobs for those unemployed

    • Program cost ↑

    • 1934

    • FDR ordered for the CWA dissolved


Regulatory Efforts

  • Agricultural Adjustment Administration (AAA)

    • Created from the Agricultural Adjustment Act of 1933

    • Sought to increase crop and herd prices by paying farmers to reduce production

  • Dust Bowl

    • Drought over the plains

    • Farmers move

    • Topsoil lifts creating a dust cloud that can get into the interiors and exteriors of homes

  • Soil Conservation and Allotment Act

    • Unqualified success because it healed the scars of erosion and plague of dust storms

    • Failed to limit production

  • NIRA and NRA

    • National Industrial Recovery Act → economic recovery and public-works project

    • National Recovery Administration → created by the NIRA, headed by Hugh S. Johnson

      • 1. Stabilized economy

      • 2. Generate more purchasing power for consumers

  • Tennessee Valley Authority (TVA)

    • Vold venture designed to bring electrical power, flood control, and jobs to one of the poorest regions in the nation

    • Served 7 states

      • Alabama

      • Georgia

      • Illinois

      • Kentucky

      • Mississippi,

      • North Carolina

      • Tennessee

    • Transported farm families from the age of kerosene to the age of electricity


The Social Cost of the Depression

  • Hardship

    • 1939 → 9.5 million workers unemployed

    • Poverty leads people to do desperate things

      • Petty theft ↑

      • Begging ↑

      • Homelessness ↑

      • Prostitution ↑

      • Divorce ↓

      • Husbands deserting their families ↑

      • Birth rate ↓

    • Tramps → children left home and joined the homeless tramps

  • Okies and Arkies

    • Dust bowl refugees from Arkansas, Texas, Missouri, and Oklahoma

    • Went to the far west

  • Blacks and the New Deal: programs discriminated against blacks

  • Mexicans

    • Many couldn’t prove their citizenship thus getting deported back to Mexico

    • Did so to avoid providing them public services

  • Native Americans

    • John Collier’s Bureau of Indian Affairs (BIA)

    • Restore tribal lands

    • Women could hold office in tribal communities

  • Scottsboro Case

    • Nine black youths accused of raping 2 white women

    • 8 sentenced to death

    • One girl admits and recants charges

    • Long complex case

    • Last one released in 1950


The New Deal Matures

  • Eleanor Roosevelt

    • Niece of Teddy Roosevelt

    • Married FDR in 1905

    • Taught school and began lifelong crusade on behalf of women, blacks, and youths

    • Felt betrayed after FDR has affair with Lucy Mercer, her personal secretary

    • Redefined role of the First Lady

    • Outspoken activist

  • Huey P. Long

    • Los Angeles’s “Kingfish” senator and theatrical political preacher (demagogue)

    • Bright flashy clothes → pink suits, pastel shirts, red ties, and 2 tones shoes

    • Driven by an urge for power and attention

    • Political fiefdom

    • Bullying dictator who bribes, blackmailed, and intimidated

  • Share-the-Wealth: confiscated large personal fortunes as to grant $5,000 cash per poor family and an annual income of $2,500, provide pension, reduce work hours, pay veterans, bonuses, and ensure college education for qualified

  • Townsend Recovery Plan

    • Francis E. Townsend

    • Pay $200 a month to every citizen over 60 years old and promised to use that within the month

    • Free jobs for the younger generation

  • Father Charles E. Coughlin

    • Roman Catholic Radio priest

    • National Union for Social Justice in 1935

    • New Deal = communist while populist scheme for silver coinage is good

    • Intemperate and anti-semitic

  • Second New Deal

    • “Social justice, no longer a distant ideal”

    • Stability for the most vulnerable

    • Big Bill → $4.8 billion Emergency Relief Appropriation Act

  • Work Progress Administration (WPA): employed wide range of talented people in the Federal Theatre Project, the Federal Music Project, and the federal Writers’ Project

  • National Youth Administration (NYA)

    • Under the WPA

    • Provided part-time jobs to students

    • Lyndon B. Johnson was director of an NYA in Texas

    • Richard M. Nixon found work for 35¢ an hour

  • Wagner Act

    • In honor of New York senator Robert Wagner

    • Guaranteed workers the right to organize unions and bargain

    • Prohibited employers from interfering with union activities

  • Social Security Act of 1935

    • Self-financed pension for 65 years or older

    • Primary source of retirement income

  • Revenue Act

    • Wealth-Tax act or soak-the-rich tax

    • Raise tax rates on annual income above $50,000

    • Estate and gift taxes ↑

    • Corporate tax rate ↑


Roosevelt’s Second Term

  • Election of 1936

    • FDR against Government Alfred M. Landon of Kansas (Republican)

    • Long is assassinated

    • FDR wins all but Maine and Vermont

  • New Deal and court-packing

    • Republican supreme court hindering the passing of the New Deal

    • Backfired

    • New Deal went to smoke

  • Court Packing Bill

    • 22 July 1937 → senate votes it down

    • Democrats oppose the president

  • Committee for Industrial Organization (CIO)

    • Industrial unionists organized this under the Wagner Act and many craft unionists fear a group of unskilled workers

    • Divided by jurisdiction

    • After broken by the AFL it becomes the Congress of Industrial Organizations

  • Sit-down strike

    • Workers refuse to leave workplace until employers had granted collective-bargaining rights to their union

    • Walter Reuther and General Motors

    • Declared illegal

    • Steelworkers were successful

  • Fair Labor Standards Act

    • Minimum wage of 40¢ an hour and max of 40 hours a week

    • Only applied to businesses engaged in interstate commerce

    • Prohibited employment of kids 16 years old and younger


The Legacy of the New Deal

  • Struggled in the Democratic party

    • Southerners bulled about the Northern supporters and African American voters

    • Ellison “Cotton Ed” Smith of South Carolina left

    • FDR has too much power and spends too much money

    • Democratic lose seats in the senate

  • Legacies of the New Deal

    • Government power is larger than 1932

    • Hope restored

    • Regulation of industry

    • Government intervention for capitalistic moves

    • Established qualitative standards for labor conditions and public welfare

    • Helped Middle class hold onto their savings, homes, and farms

    • Safeguard against future depression

    • Restore economic prosperity

    • Unemployment ↓

    • “Halfway revolution”



Chapter 28

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