Comprehensive Study Guide on the New Deal and FDR

The Election of 1932 and the Birth of the New Deal

• The Demand for Change: By the time the $1932$ presidential election arrived, the American public was desperate for a shift in leadership and policy due to the crushing effects of the Great Depression.

• The Democratic Nomination: The Democratic Party nominated Franklin Delano Roosevelt ($FDR$), the governor of New York. Roosevelt was characterized as being reform-minded and projected an image of friendliness and confidence to the electorate.

• Election Results: In a landslide victory, the Democrats won the presidency and secured overwhelming majorities in both the Senate and the House of Representatives.

• The "Brain Trust": During the interval between his election and inauguration, Roosevelt worked with a group of advisors known as the "Brain Trust" to formulate specific policies designed to alleviate the nation’s problems.

• The New Deal Philosophy: Roosevelt’s program was centered on three primary goals:

  • Relief for the needy.

  • Economic Recovery.

  • Financial Reform.

The Hundred Days and Financial Stabilization

• The Hundred Days: Immediately upon taking office, $FDR$ launched an intense period of legislative activity known as the Hundred Days, during which Congress passed more than $15$ major New Deal laws.

• Banking Reform:

  • Emergency Banking Relief Act: This act authorized the Treasury Department to inspect the nation’s banks. The department decided which banks were insolvent, which were sound, and which required loans. This measure was critical in reviving public confidence in the banking system.

  • Fireside Chats: Roosevelt utilized radio to deliver "fireside chats," which were informal talks explaining New Deal measures. The first chat focused on the banking crisis, successfully encouraging Americans to return their savings to banks.

  • Glass-Steagall Act: This established the Federal Deposit Insurance Corporation ($FDIC$), which insured individual bank accounts and regulated banking practices to prevent risky speculation.

• Stock Market and Finance:

  • Federal Securities Act: This law required corporations to provide complete and truthful information on all stock offerings.

  • Securities and Exchange Commission ($SEC$): This agency was created specifically to regulate the stock market and prevent unfair practices.

• Repeal of Prohibition: Roosevelt supported legislation to allow the production of some alcoholic beverages. By the end of $1933$, the $21\text{st}$ Amendment was ratified, officially repealing the national prohibition on alcohol.

New Deal Programs for Relief and Recovery

• Rural Assistance:

  • Agricultural Adjustment Act ($AAA$): This program aimed to raise food prices by lowering the supply; the government paid farmers to leave land unseeded or destroy crops/livestock.

  • Tennessee Valley Authority ($TVA$): A major infrastructure project that created jobs by building and renovating dams in the Tennessee Valley, providing flood control and electricity to the region.

  • Cumberland Homesteads: This project offered farms and jobs to impoverished families, though it ultimately failed to achieve its long-term goals.

• Work Projects:

  • Civilian Conservation Corps ($CCC$): This program provided public works jobs, such as planting trees and building trails, for young men.

  • Public Works Administration ($PWA$): Provided money to states for the creation of jobs, primarily in construction.

  • Civil Works Administration ($CWA$): Created jobs building rural schools and roads and provided salaries for teachers.

• Industrial and Housing Reforms:

  • National Industrial Recovery Act ($NIRA$): Established codes of fair practice for industries and created the National Recovery Administration ($NRA$) to set standards, prices, and production limits.

  • Labor Rights: Under the $NIRA$, Congress guaranteed the rights of workers to form unions and engage in collective bargaining.

  • Home Owners Loan Corporation ($HOLC$): Provided government loans to homeowners facing foreclosure.

  • Federal Housing Administration ($FHA$): Furnished loans for home mortgages and repairs.

  • Federal Emergency Relief Administration ($FERA$): Provided direct relief in the form of grants to help the needy.

Political Challenges and the Second New Deal

• Opposition to the New Deal:

  • Deficit Spending: The government funded New Deal programs by spending more money than it took in, a practice Roosevelt supported with reluctance.

  • Liberal Critics: Argued the New Deal did not go far enough in helping the poor or restructuring the economy.

  • Conservative Critics: Argued that the New Deal gave the federal government too much control over business and was a move toward socializing the economy.

  • The American Liberty League: An organization of conservative opponents who believed New Deal measures violated rights regarding personal property.

• The Supreme Court Conflict:

  • The Supreme Court eventually struck down the $NIRA$ and the $AAA$ as unconstitutional.

  • In response, $FDR$ proposed a "Court-packing bill" to appoint more justices. This move was met with heavy protest from Congress and the press. However, starting in $1937$, several justices retired, allowing $FDR$ to appoint $7$ new ones over several years.

• Individual Critics:

  • Father Charles Coughlin: Initially a supporter, he later demanded a guaranteed income and the nationalization of banks.

  • Dr. Francis Townsend: Proposed a pension plan for the elderly to provide economic security.

  • Senator Huey Long: A presidential hopeful who promoted a popular social program called "Share-Our-Wealth."

• The Second Hundred Days: By $1935$, because economic recovery was slower than expected, $FDR$ launched the Second New Deal. First Lady Eleanor Roosevelt, a social reformer, was a key influence, traveling the country to observe social conditions and prodding the president to provide more relief for workers and farmers.

Labor, Social Security, and Rural Progress in the Second New Deal

• Rural Support:

  • Soil Conservation and Domestic Allotment Act ($1936$): Replaced the $AAA$ and rewarded farmers for practicing soil conservation.

  • Farm Security Administration ($FSA$): Provided loans to tenant farmers to purchase land and hired photographers to document rural life.

• Expanding Relief:

  • Works Progress Administration ($WPA$): An immense program that built airports, roads, and public buildings. It also employed professional writers, artists, and performers and hired women to sew clothes for the needy.

  • National Youth Administration ($NYA$): Provided education, jobs, and counseling to young people, offering aid to students in exchange for part-time work.

• Labor Reform:

  • Wagner Act (National Labor Relations Act): Replaced the $NIRA$; it protected the right to join unions and prohibited unfair labor practices. It also established the National Labor Relations Board ($NLRB$).

  • Fair Labor Standards Act: Established a minimum wage and set maximum working hours.

• Social Security and Utilities:

  • Social Security Act ($1935$): Provided insurance for retirees aged $65$ or older, unemployment compensation, and aid to the disabled and families with children.

  • Rural Electrification Administration ($REA$): Brought electricity to rural homes and farms.

  • Public Utility Holding Company Act: Aimed to eliminate financial corruption in the utility industry.

Social Groups and the New Deal Coalition

• Women: Frances Perkins became the first female cabinet member as Secretary of Labor. Despite this, women still faced discrimination, with the $NRA$ setting lower minimum wages for them and work programs hiring fewer women than men.

• African Americans:

  • $FDR$ appointed over $100$ African Americans to government positions. Mary McLeod Bethune headed the Division of Negro Affairs of the $NYA$ and organized the "Black Cabinet."

  • Roosevelt failed to support an antilynching law or the end of the poll tax to avoid upsetting Southern white Democratic voters.

• Mexican Americans: Generally supported the New Deal despite receiving fewer benefits; migrant workers often lacked the permanent addresses required for $CCC$ or $WPA$ eligibility.

• Native Americans: John Collier, Commissioner of Indian Affairs, helped pass the Indian Reorganization Act of $1934$, which shifted policy toward Native autonomy, allowing tribes to govern reservations and own land collectively.

• The New Deal Coalition: This was an alignment of diverse groups—including labor unions, urban voters, religious and ethnic groups, and African Americans—that supported the Democratic Party. Union membership grew from $3\text{ million}$ to over $10\text{ million}$ between $1933$ and $1941$.

Culture in the 1930s

• Motion Pictures: Approximately $65\%$ of the population attended movies weekly. Films like Gone With the Wind provided an escape from reality. Walt Disney pioneered animation, and several films portrayed New Deal policies positively.

• Radio: Owned by $90\%$ of households, the radio was the most direct way for $FDR$ to reach the public. Dramas, variety shows, and soap operas were popular. Orson Welles demonstrated radio's power with his War of the Worlds broadcast.

• The Arts:

  • Federal Art Project ($FAP$): Commissioned murals and public art that portrayed the dignity of ordinary work. Grant Wood was a notable artist of the era.

  • Woody Guthrie: A folk singer who wrote hundreds of songs, including "This Land Is Your Land," about the plight of Dust Bowl migrants.

• Literature: The Federal Writers’ Project supported authors like Richard Wright (Native Son), Zora Neale Hurston (Their Eyes Were Watching God), and John Steinbeck (The Grapes of Wrath), who depicted the hardships and dignity of American life.

The Impact and Legacy of the New Deal

• End of the New Deal: By $1939$, the New Deal was effectively over. While it reduced suffering, it did not end the Great Depression. Massive deficit spending for war preparation (guns, tanks, planes) eventually brought the U.S. out of the Depression.

• Enduring Programs:

  • The $SEC$ and $FDIC$ continue to regulate finances and protect depositors.

  • The $NLRB$ continues to mediate labor disputes.

  • Social Security remains a foundational welfare system for the elderly and disabled.

• The Rural and Environmental Scene:

  • The Commodity Credit Corporation continues to provide loans/subsidies based on parity prices.

  • Environmental legacies include reforestation by the $CCC$, soil preservation methods, and the expansion of national parks.

• Government Power: The New Deal vastly expanded the power of the federal government and the presidency, establishing an active role in regulating the economy and ensuring the welfare of citizens. This marked a permanent shift away from traditional laissez-faire policies.