The New Deal

Jul 26, 2024

The New Deal

Context

  • The Great Depression followed by Roosevelt's election in 1932.
  • Roosevelt won by a landslide against Herbert Hoover.
  • Roosevelt believed the government should protect the unfortunate and advance the public good.
  • Emphasized by his Fireside Chats - direct communication with the American people.

First 100 Days

  • Roosevelt's first 100 days set a benchmark for future presidents—more major legislation passed than any other.
  • Advantage: Sworn in March, Congress controlled by Democrats.

Emergency Banking Act

  • Hoover's plan, enacted by Roosevelt after his inauguration.
  • Closed all banks for a national banking holiday; only financially sound banks reopened.
  • Restored public confidence in the banking system.

Federal Emergency Relief Administration (FERA)

  • Dispensed $500 million to state agencies for relief.
  • Included the creation of the Civil Works Administration (CWA).
  • CWA provided temporary jobs and infrastructure improvements but was dissolved due to high costs.

Civilian Conservation Corps (CCC)

  • Targeted young, unmarried men for employment in conservation projects.
  • Paid $30/month, but $25 sent home to their families.
  • Opened to African Americans under pressure, but women were largely excluded.
  • Provided education and physical fitness, leading many to complete high school and start college.

Agricultural Adjustment Act (AAA)

  • Aimed to reduce crop surplus to raise prices and help farmers.
  • Paid farmers to reduce staple crop production.
  • Hurt sharecroppers and tenant farmers as landlords took land out of production.

Tennessee Valley Authority (TVA)

  • Comprehensive infrastructure, flood control, and agricultural program.
  • Built dams for hydroelectric power, radically transformed the Tennessee Valley.
  • Controversially seen as socialist due to government ownership.

National Industrial Recovery Act (NIRA)

  • Business-government cooperation to stabilize prices and wages, protect labor rights.
  • Created the National Recovery Administration (NRA) to oversee fair practices codes.
  • Declared unconstitutional by the Supreme Court in 1935.

Public Works Administration (PWA)

  • Large-scale public works to reduce unemployment through infrastructure projects.
  • No convict labor, limited work hours to increase employment, emphasis on human labor over machinery.

Works Progress Administration (WPA)

  • Follow-up to the PWA focusing on semi-skilled and unskilled workers.
  • Supported arts through various projects, created hundreds of public facilities.
  • Non-discriminatory in hiring, promoted African American employment and education.

Key Takeaways

  • Many believed in the New Deal's success despite continued high unemployment.
  • Government directly hired people for jobs, no private contractors involved.
  • New Deal programs aimed to provide immediate relief and boost public morale.