Episode 34 – The New Deal

Introduction

• Host: John Green
• Topic: The New Deal, FDR's response to the Great Depression
• Controversy: Did the New Deal end the Depression, and did it change the concept of American freedom?
• New Deal redefined the federal government's role and realigned the Democratic Party's constituents

Background

• Herbert Hoover's poor Great Depression response led to FDR's election in 1932
• FDR's campaign promised a "New Deal" without specific plans
• Ended Prohibition, providing tax revenue and fulfilling campaign promise

What Was the New Deal?

• Set of government programs to fix the Depression and prevent future ones
• The Three R's: Relief, Recovery, Reform
  • Relief: Direct help to the needy
  • Recovery: Short-term economic fixes
  • Reform: Long-term regulation to prevent future depressions
• Phases: First New Deal (pre-1935) and Second New Deal (post-1935)

First New Deal

• Legislation in the first 100 days was motivated by crisis
• Key programs and acts:
  • Civilian Conservation Corps: Employment for young people
  • Agricultural Adjustment Act (AAA): Production quotas for farmers
  • Glass-Steagall Act: Separated commercial and investment banking
  • National Industrial Recovery Act (NIRA): Coordinated industry standards
  • Federal Emergency Relief Administration: Welfare payments
  • Public Works Administration and Civil Works Administration: Infrastructure projects
  • Tennessee Valley Authority (TVA): Controversial government intervention in electricity
• Supreme Court Challenges:
  • Struck down AAA and NIRA as unconstitutional
  • FDR attempted "court-packing" to gain favor

Second New Deal

• Shift from recovery to economic security
• Key legislation:
  • National Labor Relations Act (Wagner Act): Right to unionize
  • Social Security Act: Unemployment, disability, and retirement benefits
• Rise of unionism: Congress of Industrial Organizations, sit-down strikes
• Social Security expanded federal government’s role in citizens' welfare

Impact of the New Deal

• Did not fully end the Depression; unemployment remained high until WWII
• Changed Democratic Party dynamics and political landscape
• Introduced Keynesian economics and increased government presence
• Redefined liberalism: Liberty seen as security, not just limited government

Conclusion

• New Deal influenced expectations of government intervention
• Ensured government's active role in economic and social welfare
• Legacy: Government's direct involvement in Americans' daily lives

Final Thoughts

• FDR's New Deal marked a significant turn in American historical and political thought
• Established a precedent for future government interventions in times of crisis