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The New Deal Overview

• Time Period: 1933-1941

• Introduction by Franklin D. Roosevelt (FDR) during the Great Depression.

New Deal Program

• FDR’s plan aimed at economic recovery as a response to a national emergency.

• Major goals:

  • Regulate the stock market

  • Increase the size and power of the government

• Result:

  • National debt reached a new high

  • Expanded government responsibility for the nation’s economy

Alphabet Soup: Key Programs

• New Deal programs targeted various life aspects, notably employment:

  • Civil Works Administration (CWA):

    • Funded state projects for roads, schools, and athletic fields.

  • Public Works Administration (PWA):

    • Provided loans to private industries to facilitate public works.

  • Works Progress Administration (WPA):

    • Employed individuals through major public projects,

    • Included Federal Arts Projects.

  • Civilian Conservation Corps (CCC):

    • Offered jobs to young men (ages 18-25) in public parks and conservation efforts.

  • National Youth Administration (NYA):

    • Supported young Americans in school via part-time job provisions.

The 3 R's of the New Deal

• Programs focused on:

  • Relief: Immediate help for those in need.

  • Recovery: Economic growth stimulation.

  • Reform: Prevention of future economic crises.

FDR's First 100 Days

• Key actions:

  • Implemented a Bank Holiday to close banks for inspection.

  • Solvent banks reopened, insurgents reorganized, restoring public confidence.

Banking Reforms

• Glass-Steagall Act (1933):

  • Restructured the banking system and established the FDIC.

• Federal Securities Act (1933):

  • Regulated the stock market and formed the SEC.

Early Programs

• Agricultural Adjustment Act (AAA):

  • Compensated farmers for not planting certain land to reduce supply and increase prices.

Impact of the CCC

• Offered young laborers room, board, and a $1 daily wage.

• By 1942, planted 1.3 billion trees through contributions from 3 million participants.

• Educational benefits included reading/writing and high school certifications.

Criticism of the New Deal

• Critics argued that it:

  • Undermined individual responsibility.

  • Increased government spending without sufficient return.

  • Led to deficit spending and escalating national debt.

• Key critics:

  • Liberty League, National Association of Manufacturers (NAM).

Huey Long

• Louisiana Senator advocating for wealth redistribution through his "Share the Wealth" plan before his assassination in 1935.

Supreme Court Challenges

• In 1935, ruling some New Deal programs unconstitutional led FDR to seek more judicial appointments, perceived as court-packing.

• Despite backlash, appointees began to support the New Deal.

Second New Deal

• Marked by permanent changes in the U.S. economy, championed by Eleanor Roosevelt for women's and minorities' involvement in government.

Major Programs in the Second New Deal

• Works Progress Administration (WPA):

  • Key provider of jobs and public works programs.

• Social Security Act (1935):

  • Established pensions for retirees and aid for disabled or dependent children.

• Tennessee Valley Authority (TVA):

  • Operated dams to control flooding and provide cheap electricity.

Cultural Impact of the 1930s

• Movies: 65% of Americans frequent cinemas, offering escapism and entertainment.

• Radio: By 1940, 90% of households owned a radio; served as a communication tool with FDR's "fireside chats."

• Literature and Arts:

  • Writers like John Steinbeck ("The Grapes of Wrath") and musicians like Woody Guthrie depicted the struggles of the time.

Impact and Legacy of the New Deal

• Government Role: Expanded significantly, established social welfare and regulatory agencies.

• Crisis Management: Maintained democracy and public confidence during the Great Depression.

• Negative Outcomes:

  • Increased federal debt and government bureaucracy.

  • Limited free enterprise.

Economic Indicators (1929-1939)

• Decline and Recovery Measures:

  • Farm prices rose, profits increased, and unemployment decreased.

  • Citizens now expect government to manage social and economic issues.o