CrashCourse U.S. History: The New Deal

Introduction

• Presenter: John Green
• Topic: FDR administration's response to the Great Depression: The New Deal
• Key Questions:
  • Did the New Deal end the Depression?
  • Did it destroy or expand American freedom?
  • Was it ultimately a good thing?
• The New Deal redefined federal government roles and re-aligned Democratic Party constituents.

Political Context and Initial Proposals

• 1932 Presidential Election: FDR vs. Herbert Hoover

  • Hoover's poor handling of the Depression led to his loss.
  • FDR, a natural politician, promised a "New Deal" without specifying detailed plans.

• Prohibition: FDR promised to end it, which he achieved, boosting tax revenue and public morale.

• Election Outcome: FDR won 57% of the vote, Democrats took Congress.

The New Deal: Overview

• New Deal Definition: A series of government programs to fix the Depression and prevent future ones.
• Three R’s Framework:
  • Relief: Direct aid to the poor.
  • Recovery: Short-term economic fixes to create jobs.
  • Reform: Long-term regulations to prevent future depressions.

Key Programs and Acts

• First New Deal (Pre-1935):

  • Civilian Conservation Corps: Paid young men for public works.
  • Agricultural Adjustment Act (AAA): Set production quotas, controversial for destroying crops/livestock.
  • Glass Steagall Act: Separated commercial and investment banking.
  • National Industrial Recovery Act (NIRA): Set industrial standards.

• Second New Deal (Post-1935):

  • Shifted focus to economic security.
  • Social Security Act: Introduced unemployment insurance and retirement benefits.
  • National Labor Relations Act (Wagner Act): Guaranteed workers’ rights to unionize.

Supreme Court Challenges and "Court Packing"

• Supreme Court: Struck down several New Deal programs, citing unconstitutional delegation of powers.
• FDR’s Reaction: Proposed adding new justices, but faced backlash for perceived power grab.

Impact and Legacy

• Labor and Unions:

  • Rise of Congress of Industrial Organizations (CIO).
  • New tactics like the sit-down strike.

• New Deal Coalition: United diverse groups like African Americans, union workers, immigrants under Democrats.

• Long-term Changes:

  • Shift in liberalism to focus on economic security.
  • Permanent changes in expectations of government intervention during crises.

Economic Outcomes

• Depression: Did not end by New Deal alone.
  • Unemployment: Decreased from 25% to over 15%, significant but not full recovery.
  • World War II: Ultimately ended the Depression with massive government spending.

Conclusion

• New Deal Importance:

  • Transformed Democratic Party and American politics.
  • Changed American expectations of government intervention in personal welfare.
  • The concept of "imperial presidency" emerged, emphasizing executive power.

• Final Thoughts: The New Deal was a turning point in American history, embedding the federal government as a key player in citizens' welfare and setting the stage for future policies.

References:

1. Foner, "Give me Liberty," eBook version, pp. 870-898.
2. Crash Course U.S. History Episode 34 by John Green.