GML7 Chapter 21 Outline

Chapter 21 Outline: The New Deal, 1932–1940

I. The First New Deal

A. FDR and the Election of 1932

• Franklin Delano Roosevelt (FDR) came from a privileged background but was seen as a symbol of the ordinary man.

• FDR promised a “new deal” for the American people, but his campaign was vague on specifics.

B. The Coming of the New Deal

• Conservative and totalitarian leaders dominated Europe in the 1930s.

• Roosevelt viewed his New Deal as an alternative to socialism, Nazism, and inaction of unregulated capitalism.

• FDR relied on a group of intellectuals and social workers for advice, reflecting reforms from the Progressive era.

C. The Banking Crisis

• Much of 1933 was spent reassuring the public about the banking system.

• Roosevelt declared a bank holiday, suspending all bank operations, and summoned Congress into special session.

  • Congress passed the Emergency Banking Act to save financial institutions.

• Further Measures Transforming the Financial System:

  • The Glass-Steagall Act barred commercial banks from engaging in the stock market and established the Federal Deposit Insurance Corporation (FDIC).

  • Roosevelt took the U.S. off the gold standard.

D. The NRA

• The first three months of FDR’s administration, known as the Hundred Days, saw unprecedented legislative activity.

• The National Industrial Recovery Act established the National Recovery Administration (NRA) as a centerpiece of FDR’s plan to combat the Depression.

  • Section 7a acknowledged workers’ rights to unionize.

• Hugh S. Johnson aimed to set industry standards for production, prices, and wages.

  • Initial enthusiasm for the NRA led to later controversy and criticism.

E. Government Jobs

• The Hundred Days also saw government initiatives to provide relief.

  • The Federal Emergency Relief Administration (FERA) offered funds to local agencies.

  • Young unemployed men found jobs through the Civilian Conservation Corps (CCC).

F. Public-Works Projects

• The Public Works Administration (PWA) financed the construction of schools, roads, and public facilities.

• The Tennessee Valley Authority (TVA) built dams to prevent floods and provide electricity.

G. The New Deal and Agriculture

• The Agricultural Adjustment Act (AAA) permitted the government to raise farm prices through production quotas and payments to farmers to limit planting.

  • This raised prices for large farmers but generally harmed small farms and tenants.

• The Dust Bowl severely affected agriculture due to droughts.

• The Resettlement Administration created relief camps and communities for displaced people.

• Voices of Freedom (Primary Source):

  • John Steinbeck’s "The Harvest Gypsies" details the struggles of migrant farm workers.

H. The New Deal and Housing

• The housing industry suffered greatly due to the Depression, hindering home ownership, previously seen as respectable.

• Hoover's administration created a bank for home loans.

• FDR enacted measures to assist homeowners and kickstart construction:

  • Home Owners Loan Corporation and Federal Housing Administration (FHA) offered insurance for long-term mortgages.

  • Other measures included the repeal of Prohibition (Twenty-First Amendment) and the establishment of the Federal Communications Commission (FCC) and the Securities and Exchange Commission (SEC).

I. The Court and the New Deal

• In 1935, the Supreme Court began invalidating key New Deal legislation, notably the NRA and AAA.

II. The Grassroots Revolt

A. Labor’s Great Upheaval

• Previous depressions had devastated the labor movement, requiring revival.

• Militants among labor leaders fostered a labor resurgence.

• Workers in the 1930s sought more than better wages; they demanded union recognition.

• FDR’s election rekindled hope for labor.

• 1934 saw a series of explosive strikes.

B. The Rise of the CIO

• The labor upheaval challenged the American Federation of Labor (AFL).

• John Lewis led a walkout creating the Congress of Industrial Organizations (CIO).

• The United Auto Workers (UAW) led major sit-down strikes in 1936.

• Union membership grew to 9 million by 1940.

C. Labor and Politics

• The labor surge reshaped economic power dynamics and emphasized labor's role in achieving equality in politics.

• CIO leaders characterized the Depression as a dire imbalance of wealth and income.

D. Voices of Protest

• Various movements in the mid-1930s promoted economic justice:

  • Upton Sinclair's EPIC movement

  • Huey Long’s Share Our Wealth movement

  • Dr. Francis Townsend’s proposal for senior citizen payments.

E. Religion on the Radio

• Leaders like Aimee Semple McPherson utilized radio to address the Depression.

• Father Charles Coughlin criticized banks and the New Deal while promoting fascism.

III. The Second New Deal

A. The WPA and the Wagner Act

• The Second New Deal, launched in 1935, focused on economic security following initial policy failures.

  • Rural Electrification Agency (REA) provided electricity to rural areas.

• The Works Progress Administration (WPA) reshaped the nation's physical landscape, especially in arts.

• The Wagner Act established federal supervision of union elections and eliminated unfair labor practices.

B. The American Welfare State

• The Social Security Act of 1935 became the foundation of the American welfare state.

C. The Social Security System

• Funded primarily through taxes on employers and workers, Social Security created a new governmental role in welfare.

• A hybrid of national and local funding and control emerged, altering traditional government roles.

IV. A Reckoning with Liberty

A. FDR and the Idea of Freedom

• FDR effectively used "fireside chats" for political communication.

• He redefined liberalism, while the American Liberty League opposed his ideas.

• As the 1930s advanced, freedom language intensified among New Deal proponents.

• Voices of Freedom (Primary Source): FDR’s "Fireside Chat" (1934) discussed government jobs programs and public works.

B. The Election of 1936

• The presidential campaign of 1936 revolved around the ideal of freedom.

• Republicans selected Kansas Governor Alfred Landon, while FDR achieved a landslide victory, supported by a diverse coalition.

C. The Court Fight

• FDR attempted to reform the Supreme Court for political gain, leading to accusations of dictatorial ambitions.

• The Court began to accept New Deal policies, marking a judicial shift.

D. The End of the Second New Deal

• The Fair Labor Standards Act established minimum wage, overtime pay, and banned child labor goods from commerce.

• The economy soured sharply in 1937, signifying a downturn.

V. The Limits of Change

A. The New Deal and American Women

• Eleanor Roosevelt redefined the role of first lady.

• Organized feminism struggled during the 1920s and faded as a force.

• Most New Deal programs did not exclude women, but policies largely promoted male-headed households.

B. The Southern Veto

• The Solid South’s power shaped the New Deal welfare state, favoring white Americans.

  • Social Security excluded agricultural and domestic workers, harming Black employment demographics.

• Black organizations lobbied for Social Security reforms.

C. The Stigma of Welfare

• Increased welfare reliance among Blacks due to exclusion from other programs.

D. The Native American New Deal

• Under Commissioner John Collier, the Indian New Deal marked a shift in policy, allowing traditional practices and tribal land purchases.

  • Around 80,000 Native Americans worked in CCC's Indian Division.

  • Navajos protested livestock reduction policies but overall, conditions on reservations did not improve significantly.

E. The New Deal and Mexican Americans

• Mexican Americans faced severe hardships during the Depression.

• The Filipino Repatriation Act of 1935 offered transportation for those wishing to return to the Philippines.

F. A New Deal for Blacks

• African Americans faced the Depression with significant adversity, advocating for economic survival.

• FDR appointed several Blacks to federal positions, such as Mary McLeod Bethune as minority affairs advisor.

• A historic voting shift occurred in the 1930s, with Blacks supporting the Democratic Party.

G. Federal Discrimination

• Federal policies often reflected racial biases in housing and employment, maintaining exclusion from New Deal benefits for many.

• It wasn’t until the Great Society of the 1960s that adequate inclusion was achieved in welfare.

VI. A New Conception of America

A. The Heyday of American Communism

• In the mid-1930s, leftist politics significantly influenced U.S. society and culture.

• The Communist Party’s social commitment gained respectability, opposing capitalism's failure during the Depression.

B. Redefining the People

• The Popular Front advocated labor and social citizenship over wealth pursuit, promoting diversity and tolerance.

• Roosevelt portrayed the “common man” as central to American identity, celebrated by artists and writers.

C. Promoting Diversity

• Popular Front culture depicted a critical – yet heroic – view of America’s past, celebrating ethnic diversity via artistic expression (e.g., Martha Graham’s "American Document").

D. Challenging the Color Line

• The movement condemned racism, aligning it with true Americanism.

• The International Labor Defense mobilized support for unjustly accused Black individuals, such as in the Scottsboro case.

• CIO advocated for inclusivity and anti-lynching laws.

E. Labor and Civil Liberties

• Popular Front culture promoted civil liberties, particularly labor organization rights, altering perceptions of freedom.

• In 1939, Attorney General Frank Murphy established a Civil Liberties Unit, emphasizing civil liberties over economic contracts.

  • The House responded with accusations of disloyalty through the Un-American Activities Committee, supported by the Smith Act that criminalized advocating for government takeover.

F. The End of the New Deal

• As FDR faced declining support from southern Democrats, he pivoted towards liberalizing their political stance.

• Political stagnation followed the 1938 congressional elections.

G. The New Deal in American History

• Despite its limited direct results regarding prosperity, the New Deal had significant enduring accomplishments.