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Chapter 32
The Great Depression and the New Deal, 1933–1939
CHAPTER THEMES
Theme: Roosevelt’s New Deal tackled the Great Depression with massive federal programs designed to bring about relief, recovery, and reform.
CHAPTER SUMMARY
Confident, aristocratic Roosevelt swept into office with an urgent mandate to cope with the depression emergency. His bank holiday and frantic Hundred Days lifted spirits and created a host of new agencies to provide for relief to the unemployed, economic recovery, and permanent reform of the system.
Roosevelt’s programs put millions of the unemployed back on the job through federal action. As popular demagogues like Huey Long and Father Charles Coughlin increased their appeal to the suffering
population, Roosevelt developed sweeping programs to reorganize and reform American history, labor, and agriculture. The TVA, Social Security, and the Wagner Act brought far-reaching changes that especially benefited the economically disadvantaged.
Conservatives furiously denounced the New Deal, but Roosevelt formed a powerful coalition of urbanites, labor, “new immigrants,” blacks, and the South that swept him to victory in 1936.
A decade after the ratification of the Nineteenth Amendment, women began to exercise their rights, both politically and intellectually.
Roosevelt’s Court-packing plan failed, but the Court finally began approving New Deal legislation. The later New Deal encountered mounting conservative opposition and the stubborn persistence of
unemployment. Although the New Deal was highly controversial, it saved America from extreme right-wing or left-right-wing dictatorship.
*FDR quickly got many New Deal programs passed. The general philosophy was: the government will start massive projects and spend huge quantities of money, and this will “jump-start” the economy. *These programs hit on all walks of life. Emphasis was placed on creating jobs, housing, construction projects, and restoring confidence in banks.
*Though FDR was popular, there were critics to the New Deal—some saying it did too much, others that it did too little.
*FDR pretty much had his way with Congress, until he asked for more Supreme Court judges and was finally told, “No.”
*All told, though the New Deal may have helped the economy a bit, it did not boost the U.S. from the Depression.
FDR: A Politician in a Wheelchair
Presidential Hopefuls of 1932 Know: Brain Trust, New Deal
2. What was Roosevelt's campaign message in the 1932 election?
Hoover’s Humiliation in 1932
3. What were the immediate results of Roosevelt's victory?
FDR and the Three R's: Relief, Recovery, Reform Know: Hundred Days, Three R's,
4. Which of the measures passed during the so-called Hundred Days were most important?
Roosevelt Manages the Money
Know: Fireside Chats, Glass-Steagall Banking Reform Act, Federal Deposit Insurance Corporation, 5. What were the key aspects of FDR's monetary policy?
Creating Jobs for the Jobless
Know: Pump Priming, Civilian Conservation Corps
A Day for Every Demagogue
Know: Father Charles Coughlin, Huey Long, Dr. Francis E. Townsend, Works Progress Administration 7. Account for the popularity of the “demagogues.”
New Visibility for Women
Know: Frances Perkins, Mary McLeod Bethune, Margaret Mead
8. Explain the factors that made it possible for these women to gain fame.
Helping Industry and Labor
Know: National Recovery Administration (NRA), Sick Chicken Decision, PWA 9. How did the NRA attempt to restore industry?
Paying Farmers Not to Farm
Know: Agricultural Adjustment Administration
10. How did the federal government attempt to help farmers?
Dust Bowls and Black Blizzards
Know: Dust Bowl, Okies and Arkies, The Grapes of Wrath
Battling Bankers and Big Business Know: Federal Securities Act, SEC
13. "Reformist New Dealers were determined from the outset to curb the `money changers....'" Explain.
The TVA Harnesses the Tennessee River Know: TVA, Creeping Socialism
14. What arguments were used for and against the TVA project?
Housing and Social Security
Know: FHA, Social Security Act of 1935
15. How did the FHA and Social Security attempt to help some of society's least fortunate?
A New Deal for Labor
Know: Wagner Act, National Labor Relations Board, Fair Labor Standards Act of 1938, CIO 16. How did labor respond to the improvement of conditions brought about by the New Deal?
Landon Challenges "the Champ”
Nine Old Men on the Supreme Bench
18. Why did Roosevelt ask Congress for a bill that would allow him to add justices to the Supreme Court?
The Court Changes Course
Know: Court-Packing Plan, Hugo Black
19. What were the consequences of FDR's attempt to pack the Court?
The Twilight of the New Deal
Know: Roosevelt Recession, John Maynard Keynes, Keynesianism 20. Assess the successfulness of FDR in his second term.
New Deal or Raw Deal?
21. What criticism of the New Deal seems most fair to you? Least fair?
FDR’s Balance Sheet
Key Chapter Terms and People to Know:
Brain Trust New Deal Hundred Days
Glass-Steagall Banking Reform Act Civilian Conservation Corps (CCC) National Recovery Administration (NRA) Agricultural Adjustment Administration (AAA) Tennessee Valley Authority (TVA)
Wagner Act
Fair Labor Standards Act Social Security Act Dust Bowl Keynesianism Frances Perkins Father Coughlin Huey Long Francis Townshend Alfred M. Landon The three R's
National Labor Relation Board
Congress of Industrial Organizations (CIO) Liberty League
Court-packing scheme
Analysis Questions – Choose ONE of these questions. On the back of this page, write a 1 paragraph introduction using the 2-1 formula (2 sentences of historical background, 1 sentence thesis that states your argument and how your topic/essay will be organized (I concede that your argument and organization could be two statements, if written well, just be as concise as you can). Then briefly outline (but don’t write out) your response. Include in the outline the main points you would discuss in the essay.
1. Which of Roosevelt’s measures were most effective in fighting the depression? Why?
2. How did Roosevelt alter the role of the federal government in American life? Was this necessary for American survival?
3. What were the positive and negative effects of the New Deal’s use of the federal government as an agency of social reform?
4. The depression of the 1890’s delayed reform; the depression of the 1930’s stimulated it. To what extent and in what ways do you agree or disagree with this statement? (AP 72)
5. Despite often brutal clashes between labor and capital in the United States during the period 1865-1940, collective working-class protest did not constitute a basic attack on the capitalistic system. Assess the validity of this statement. (AP 82)
6. Why did socialism fail to become a major force in American politics between 1900 and 1940 despite widespread dissatisfaction with the social and economic order and significant support for radical movements during that time period? (AP 88)
7. Although American writers of the 1920’s and 1930’s criticized American society, the nature of their criticisms differed markedly in the two decades. Assess the validity of this statement with specific reference to writers in both decades. (AP 90)
9. Identify three of the following New Deal measures and analyze the ways in which each of the three attempted to fashion a more stable economy and a more equitable society.
Agricultural Adjustment Act Wagner National Labor relations Act Securities and Exchange Commission Social Security Act (AP 93)
10. How successful were the programs of the New Deal in solving the problems of the Great Depression? Assess with respect to TWO of the following.
Relief Recovery Reform (AP 02B)
11. Compare and contrast the programs and policies designed by reformers of the Progressive era to those designed by reformers of the New Deal period. Confine your answers to programs and policies that addressed the needs of those living in poverty. (AP 04)
HISTORIC NOTES
The first hundred days if FDR’s presidency witness a torrent of executive and legislative programs, act, and policies that attempt to deal with the Great Depression and to reform the economic system so that the nation will never again experience such a devastating economic collapse.
To jumpstart the economy, FDR institutes an inflationary policy in which deficit spending is used to create jobs. It is hoped that this will reduce the number of people needing government aid and increase consumer spending, further stimulating demand and, consequently, higher employment. Income would be taxed to help defray the cost of federally funded jobs.
The TVA creates thousands of jobs and brings electricity to rural areas along the Tennessee River. Critics claim that the TVA eliminates competition and is akin to government control of utilities similar to that found in socialist economies
One of the longest-lasting legacies of the New Deal is Social Security, which provides economic assistance to some of the nation’s most vulnerable citizens such as retired senior citizens.
When the conservative Supreme Court starts ruling the New Deal programs such as the NRA unconstitutional, FDR devises a plan to “pack” the court, an undertaking that is met with a storm of criticism. He withdraws the plan.
Uncomfortable with deficit spending, FDR tries to balance the budget during the depression. Unemployment again rises, and capacity utilization declines significantly before he returns to his original economic plan.
Francis Perkins, secretary of labor, was the first female cabinet member in US History
Eleanor Roosevelt, one of the most active and energetic First Ladies in American History, actively campaigned for the rights of women, blacks, and labor.