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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