The New Deal

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The New Deal

• An Effective Response to the Great Depression?

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But First

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What was the New Deal?

• Campaign Slogan in 1932
• No Ideology at first Experimentation
• This nation asks for action and action now.
• Becomes synonymous with American liberalism
• Assistance to poor and unemployed
• Protect rights of organized labor
• Public housing
• Subsidized agriculture
• Regulation of the economy

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Origin of the New Deal

• FDR had no clear philosophy experimentation
  the quarterback analogy
• The New Deal will never be understood by anyone
  who looks for a single thread of policy, a
  far-reaching, far-seeing plan. It was a series of
  improvisations Richard Hofstadter
• (p. 431 for those interested!)

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Origins of the New Deal

• European Models
• Progressive Era Reforms
• Poverty not a moral failure
• Government regulation
• Mobilization for WWI
• Cooperation between public and private
• War Boards

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Two New Deals

• The First New Deal
• 1933-34
• Stop the panic
• The 100 Days

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The First New Deal
Unemployed in line at a soup kitchen
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The 100 Days

• National Bank Holiday

A run on the bank
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100 DAYS OF ACTIONMarch 9June 16, 1933

• FINANCIAL REFORMS
• March 9 Emergency Banking Act
• March 20 Government Economy Act
• April 19 Abandonment of the Gold Standard
• May 27 Securities Act
• June 5 Abrogation of Gold Payment Clause
• June 13 Home Owners Loan Act
• June 16 Glass-Steagall Banking Act (F.D.I.C.)
• March 22 Beer-Wine Revenue Act

• JOBS AND RELIEF
• March 31 Creation of Civilian Conservation Corps
• May 12 Federal Emergency Relief Act
• June 16 National Industrial Recovery Act
• June 16 Emergency Railroad Transportation Act
• Agr. REFORMS
• May 12 Agricultural Adjustment Act
• May 12 Emergency Farm Mortgage Act
• May 18 Tennessee Valley Authority Act
• June 16 Farm Credit Act

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The First New Deal

• Two Cornerstones
• First Agricultural Adjustment Act
• National Industrial Recovery Act

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First Agricultural Adjustment Act

• Raise farm prices by reducing supply
• Farmers paid not to farm
• ¼ of cotton crop plowed under
• 6 million pigs slaughtered
• 100,000,000 paid out first year

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National Industrial Recovery Act

• Replace competition with cooperation
• Industry-wide codes of fair competition
• Reduce hours of work
• Minimum wage (.40)
• Collective bargaining guaranteed
• No yellow dog contracts
• Established PWA 4 Billion on 34,000
  construction projects

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First New Deal

• Stopped the panic, especially in financial
  community, runs on banks
• Created support for FDR
• Didnt end or even put a dent in the depression
• Unemployment
• 1933 12,830,000 24.9
• 1934 11,340,000 21.7

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The Second New Deal

• Cornerstones of first New Deal declared
  unconstitutional
• Butler v. U.S. strikes down NIRA
• Schecter v. U.S. strikes down AAA
• Critics from right and left

Father Coughlin
Huey Long
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The Second New Deal

• Second AAA
• Wagner Labor Relations Act
• Social Security
• Works Progress Administration (WPA)
• Keynesian Economics

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Second AAA

• Replace first AAA
• Introduced parity price subsidies for farm
  goods
• Farm subsidies become permanent
• Fulton County
• Georgia

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Wagner Labor Relations Act

• Restored section 7a of the NIRA on labor
• Known as the Magna Carta of organized labor.
• Legalized collective bargaining
• Prohibited yellow dog contracts, blacklists,
  company unions
• Established the NLRB National Labor Relations
  Board to supervise and oversee

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Social Security

• Monthly payroll deduction
• Federal Old-Age, Survivors, and Disability
  Insurance
• Unemployment benefits
• Temporary Assistance for Needy Families
• One generation pays for the next

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Works Progress Administration (WPA)

• Largest public works program in history
• 11 billion to employ 7 million, 1935-1942
• What cost 11,000,000,000 in 1936 would cost
  168,473,306,927.94 in 2009.
• Jobs for nearly all kinds of people
• Highway (651,087 miles 124,031 bridges)
• Building construction (125,110 public buildings,
  8,192 parks
• 853 airports including LaGuardia in NYC and
  National in D.C.
• Slum clearance, reforestation, and rural
  rehabilitation
• The Federal Arts Project
• The Federal Theatre Project
• The Federal Writers' Project
• The Federal Music Project

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New Deal Images
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Was the New Deal Effective?

• 1937 7,700,000 14.3
• 1938 10,390,000 19.0
• 1939 9,480,000 17.2
• 1940 8,120,000 14.6
• 1941 5,560,000 9.9