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FDR's New Deal and its Impact

May 4, 2025

The Great Depression and Franklin D. Roosevelt's New Deal

Context and Economic Situation in 1932

  • Great Depression: 13 million Americans unemployed; nearly a third relied on private charities.
  • No welfare state to support the unemployed.
  • President Herbert Hoover: Believed in self-help over government assistance; efforts were insufficient, leading to widespread poverty.
  • Hoovervilles: Shanty towns named after Hoover, symbolizing widespread homelessness and despair.

Franklin D. Roosevelt's Rise

  • Background: Born in Hyde Park, New York, into a wealthy Dutch-American family.
  • Education & Personal Life: Attended an elite boarding school; married Eleanor Roosevelt.
  • Political Career: Started as a lawyer, then Senator, Assistant Secretary to the Navy.
  • Personal Struggle: Contracted polio in 1921, which seemed to end his political career.
  • Eleanor Roosevelt's Role: Encouraged his return to politics; became popular through public appearances.

Roosevelt's Political Comeback

  • Governor of New York: Elected in 1928.
  • Presidential Candidate in 1932: Ran against Hoover, promising a "New Deal" to combat the Depression.
  • Campaign Message: Offered hope and confidence without detailed plans but was trusted by voters.

The New Deal

  • Election Victory: Won 42 out of 48 states.
  • Inaugural Speech: Called for joint action; famous quote "the only thing we have to fear is fear itself."
  • First 100 Days: Closed banks temporarily; passed 15 new laws; worked to restore confidence.
  • Radio Fireside Chats: Used to communicate directly with the American public.

Key New Deal Programs

  • AAA (Agricultural Adjustment Act): Helped farmers by paying them to produce less.
  • WPA (Workers Progress Administration): Provided work for 8 million people on various projects.
  • CCC (Civilian Conservation Corps): Employed young men to work on environmental projects.
  • TVA (Tennessee Valley Authority): Built dams to prevent flooding and provide cheap electricity.
  • NRA (National Recovery Administration): Improved wages, working conditions, and supported unions.

Social and Economic Impact

  • Shift in Confidence: New Deal laws restored hope; increased public optimism.
  • Controversies: Criticized for wastefulness; faced opposition from socialists, communists, and the wealthy.
  • Supreme Court Challenges: Some New Deal acts declared unconstitutional; Roosevelt faced political setbacks.

Cultural and Social Changes

  • Dust Bowl Migration: Environmental disaster led to mass migration to California.
  • Hollywood: Provided escapism through movies.

Industrial Struggles

  • Union Recognition: Sit-down strikes in the industrial sector; eventual recognition of unions.

Legacy of the New Deal

  • Infrastructure Development: Roads, homes, schools, hospitals, and public buildings constructed.
  • Agricultural and Economic Reforms: Support for farmers, increased buying power.
  • Social Security: Established systems for welfare and pensions.
  • End of Unemployment: Ultimately reduced by demands of WWII production.

Conclusion

  • Roosevelt's Legacy: Successfully navigated the nation through the Depression's darkest days.
  • War's Role: European conflict ultimately ended U.S. unemployment, overshadowing some New Deal achievements.