CHAPTER 15
THE NEW DEAL
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F.D.R. AND HERBERT HOOVER ARE TOTALLY DIFFERENT
o
F.D.R. EXUDED CONFIDENCE WHEREAS HOOVER WAS MOODY
o
F.D.R. WAS AN EXPERIMENTER WHEREAS
o
F.D.R. HAD EMPATHY WITH THE PEOPLE BECAUSE HE UNDERSTOOD
SUFFERING BECAUSE OF POLIO
o
F.D.R. INSTITUTED DIREST RELIEF WHERE HOOVER WAS
RELUCTANT
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F.D.R. IS ELECTED BY A LANDSLIDE IN 1932 THIS ENABLES
HIM TO GET SIGNIFICANT SUPPORT FOR HIS PROGRAMS
o
COATTAILS
o
PRESIDENTIAL HONEYMOON
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THE FIRST THING THAT F.D.R. DOES AS PRESIDENT
IS INSTITUTE A BANK HOLIDAY
o
CLOSED INSOLVENT BANKS
o
ALLOWED OTHERS TO OPEN ONLY WHEN THEY WERE FINANCIALLY SOUND
o
ENCOURAGED BANK DEPOSITS
THE
FIRST NEW DEAL
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RELIEF
o
F.E.R.A.
§ BOTH F.D.R.
AND HARRY HOPKINS DISAPPROVED OF THIS METHOD BUT SAW A NEED FOR IT
· BETTER TO TEACH A MAN TO
FISH THAN GIVE HIM A FISH WHEN HE IS HUNGRY
o
C.C.C. CIVILIAN CONSERVATION
CORPS
o
W.P.A. WORKS PROGRESS
ADMINISTRATION
§ CLASSIC EXAMPLE OF PUMP
PRIMING FINANCED WITH DEFICIT SPENDING
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RECOVERY
o
N.I.R.A. NATIONAL INDUSTRIAL
RECOVERY ACT
o
A.A.A. AGRICULTURE ADJUSTMENT
ACT
§ PAID SUBSIDIES TO
FARMERS
§ IRONY CROPS WERE BURNED AND
LIVESTOCK WAS DESTROYED WHEN PEOPLE IN THE CITIES WERE STARVING
o
T.V.A.
-
REFORM
o TRUTH IN SECURITIES ACT
o
§
GLASS STEAGALL ACT
· INSTITUTED THE F.D.I.C.
REACTION TO THE NEW DEAL
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THE SUPREME COURT DECLARED SOME OF THE NEW DEAL PROGRAMS
UNCONSTITUTIONAL
o
F.D.R. REACTED WITH A COURT PACKING BILL
§ AN ATTEMPT TO INCREASE THE #
ON THE SUPREME COURT FROM 9 TO 15
§ F.D.R. WOULD THEN BE ABLE TO
NOMINATE
§ INDIVIDUALS FAVORABLE TO HIS
PROGRAMS
§ CONGRESS NEVER PASSED THE
LEGISLATION
· FEAR OF EXECUTIVE BECOMING
TOO POWERFUL
§ IRONY
· SUPREME COURT BEGAN LOOKING
MORE FAVORABLY TOWARDS NEW DEAL LEGISLATION
·
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LIBERALS CRITICIZED THE NEW DEAL FOR NOT DOING ENOUGH
o HUEY LONG PROPOSED THE SHARE THE
WEALTH PROGRAM
o
CHARLES COUGHLIN PROPOSED THE NATIONALIZATION OF BANKS
o
FRANCIS TOWNSEND PROPOSED SOCIAL SECURITY
o
MANY ARE DEMAGOGUES def INDIVIDUALS WHO SEEK TO ATTAIN POWER
BY APPEALING TO THE EMOTIONS OF THE ELECTORATE
o
S.T.F.U. URGED THE ADMINISTRATION TO ALLOW TENET FARMERS
TO SHARE IN THE SUBSIDIES OF A.A.A.
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CONSERVATIVES CRITICIZED THE NEW DEAL FOR DOING TOO MUCH
o THEY FEARED THAT GOVERNMENT
WAS BECOMING TOO BIG AND HAD TOO MUCH INFLUENCE IN
§
THE ECONOMY
§
THE INDIVIDUAL LIVES OF CITIZENS
-
LIP SERVICE AND TOKENISM WERE THE NORM
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THE NEW DEAL WAS MORE FOCUSED ON RECOVERY THAN ON ADVANCING THE CAUSES
OF MINORITIES
o WOMEN DID NOT ACHIEVE EQUAL
STATUS
§
FRANCIS PERKINS FIRST WOMAN APPOINTED TO THE CABINET
o AFRICAN AMERICANS NEVER
REALIZED THEIR CIVIL RIGHTS AGENDA
§
DISCRIMINATION CONTINUED IN HIRING AND THE AWARDING OF CONTRACTS TO
MINORITIES
o ORGANIZED LABOR NEVER
REALIZED FULL BENEFITS ASSOCIATED WITH COLLECTIVE BARGAINING
o JOHN COLLIER WAS APPOINTED
TO HEAD THE COMMISSION ON INDIAN AFFAIRS
N.B. THE
LASTING IMPACT OF THE NEW DEAL
1. WORKERS
A. Set standards for wages and hours - FLSA
B. Eliminated sweat shop conditions
c. Banned
child labor
D. Guaranteed the right of workers to organize - Wagner Act
E. Workers Compensation
F. Unemployment Compensation
2. FARMERS
A. Provided price supports - subsidies
B. Allowed fanners to store surplus crops
C. Helped control the supply of crops
D. Improved farming techniques
a. Contour Plowing
b. Terracing
c. Crop
Rotation
3. FINANCIAL
WORLD
A. FDIC - insured bank deposits
B. SEC - regulated margin
C. GLASS STEAGLE ACT-
regulated banks ability to trade in equities
4. MADE THE
ECONOMY MORE STABLE
A. FICA
For
the first time the government took responsibility for the economic health
of the individual and the economy
5. HELPED
THE ENVIRONMENT
A. CCC
B. TVA
6. A NEW
VOTING COALITION EMERGED
A. The New Deal Coalition
a. Southern Whites
b. Urban Voters
c.
African Americans
d~
Organized Labor