🗽US History Unit 26 – Franklin Roosevelt and the New Deal, 1932–1941
Franklin D. Roosevelt's presidency marked a turning point in American history. His New Deal programs aimed to combat the Great Depression through relief, recovery, and reform measures, fundamentally reshaping the role of government.
FDR's initiatives included public works projects, financial reforms, and social welfare programs. While controversial, the New Deal provided immediate aid to millions and laid the foundation for modern American social and economic policies.
The Great Depression began with the stock market crash in October 1929 led to widespread economic devastation
Unemployment rates skyrocketed to 25% by 1933 left millions of Americans struggling to make ends meet
President Herbert Hoover's laissez-faire approach proved ineffective in addressing the crisis eroded public confidence in his leadership
The Dust Bowl, a period of severe dust storms and ecological disaster in the Great Plains (Oklahoma, Kansas), exacerbated the economic hardship for farmers
Global economic instability, including the collapse of international trade and banking systems, contributed to the severity and duration of the Depression
Social and political unrest increased as the crisis deepened fueled populist movements and calls for government intervention
The election of 1932 became a referendum on the government's response to the Depression set the stage for a new approach under Franklin D. Roosevelt
Roosevelt's Rise to Presidency
Franklin D. Roosevelt (FDR) was born into a wealthy New York family in 1882 and entered politics as a Democrat
Served as Governor of New York from 1929 to 1932 where he implemented progressive policies and relief programs that gained national attention
FDR's personal struggle with polio, which left him paralyzed from the waist down, shaped his empathy for the suffering of others and his determination to overcome adversity
In the 1932 presidential election, FDR campaigned on a promise of a "New Deal" for the American people, offering hope and change in the face of the Depression
FDR's charismatic personality, confident demeanor, and skilled use of radio (Fireside Chats) helped him connect with the public and build support for his agenda
Defeated incumbent President Herbert Hoover in a landslide victory, winning 57% of the popular vote and carrying 42 out of 48 states
FDR's election marked a significant shift in American politics towards a more active role for the federal government in addressing economic and social issues
The First 100 Days
FDR took office on March 4, 1933, amid a banking crisis that had led to the closure of many banks and the loss of savings for millions of Americans
Immediately called a special session of Congress to address the crisis and implement his New Deal agenda
Declared a four-day "bank holiday" to prevent further bank runs and allow time for the government to stabilize the banking system
Signed the Emergency Banking Act, which provided for the reopening of solvent banks and the reorganization of failing ones, restoring public confidence
Launched a series of legislative initiatives aimed at providing relief, recovery, and reform, known as the "Three Rs"
Established the Civilian Conservation Corps (CCC) to provide employment for young men in conservation projects
Created the Federal Emergency Relief Administration (FERA) to distribute aid to state and local governments for relief programs
Signed the Agricultural Adjustment Act (AAA) to provide subsidies to farmers for reducing crop production and stabilizing prices
Passed the National Industrial Recovery Act (NIRA), which established codes of fair competition for businesses and guaranteed workers' rights to unionize
Key New Deal Programs
The New Deal encompassed a wide range of programs and initiatives designed to address various aspects of the economic and social crisis
The Works Progress Administration (WPA) employed millions of Americans in public works projects, such as the construction of roads, bridges, and public buildings
WPA also sponsored cultural programs, including art, music, and writing projects, that employed artists and intellectuals
The Social Security Act of 1935 established a national pension system for the elderly, unemployment insurance, and aid to dependent children, the blind, and the disabled
The Tennessee Valley Authority (TVA) provided flood control, electricity generation, and economic development in the impoverished Tennessee Valley region
The National Labor Relations Act (Wagner Act) guaranteed workers' rights to organize and bargain collectively, leading to a surge in union membership
The Fair Labor Standards Act established the first national minimum wage and maximum work hours, improving working conditions for millions
The Securities and Exchange Commission (SEC) was created to regulate the stock market and protect investors from fraud and manipulation
The Federal Deposit Insurance Corporation (FDIC) was established to insure bank deposits, preventing future bank runs and promoting financial stability
Opposition and Challenges
Despite the popularity of many New Deal programs, FDR faced significant opposition from various quarters
Conservative critics, including members of the Supreme Court, argued that the New Deal represented an unconstitutional expansion of federal power and a threat to individual liberty
The Supreme Court struck down several key New Deal programs, such as the NIRA and the AAA, as unconstitutional
Business leaders and industrialists opposed the New Deal's regulations and pro-labor policies, arguing that they hindered economic recovery and growth
Some progressives and leftists criticized the New Deal for not going far enough in addressing economic inequality and social injustice
The American Liberty League, a conservative organization, formed to oppose the New Deal and defend free-market capitalism
The 1936 presidential election became a referendum on the New Deal, with FDR's Republican opponent, Alf Landon, campaigning against the expansion of government power
FDR won a landslide victory, carrying every state except Maine and Vermont, and interpreted the result as a mandate for the continuation and expansion of the New Deal
Impact on American Society
The New Deal had a profound impact on American society, both in the short term and in the long run
Provided immediate relief to millions of Americans through employment programs, social welfare benefits, and agricultural subsidies
Transformed the role of the federal government in American life, establishing it as an active force in promoting economic and social welfare
Empowered labor unions and improved working conditions for millions of Americans, leading to a more equitable distribution of wealth
Modernized American infrastructure through public works projects, such as the construction of roads, bridges, and dams
Promoted cultural and artistic expression through programs like the Federal Art Project and the Federal Writers' Project
Laid the foundation for the modern welfare state, including programs like Social Security and unemployment insurance
Helped to restore public confidence in the government and the economy, paving the way for recovery from the Great Depression
Critics argue that the New Deal prolonged the Depression by creating uncertainty for businesses and discouraging private investment
Legacy and Long-Term Effects
The New Deal had a lasting impact on American politics and society, shaping the role of government and the expectations of citizens for generations to come
Established the Democratic Party as the dominant force in American politics for much of the 20th century, with a coalition of labor unions, ethnic minorities, and progressive intellectuals
Inspired future generations of liberal policymakers, who sought to build on and expand the New Deal's legacy (Great Society programs of the 1960s)
Contributed to the growth of the federal bureaucracy and the expansion of executive power, as the presidency became the focal point of national policymaking
Laid the groundwork for the post-World War II economic boom and the rise of the American middle class
Critics argue that the New Deal created a culture of dependency on government programs and undermined individual initiative and responsibility
The New Deal's impact on racial and gender inequality was limited, as many programs discriminated against African Americans and women
The New Deal's legacy continues to be debated by historians and policymakers, with some seeing it as a necessary response to a crisis and others as an overreach of government power
Critical Analysis
Historians and economists have long debated the effectiveness and legacy of the New Deal
Supporters argue that the New Deal was a necessary and effective response to the Great Depression, providing relief to millions and laying the foundation for recovery
Keynesians argue that the New Deal's deficit spending and public works programs stimulated aggregate demand and helped to end the Depression
Critics argue that the New Deal prolonged the Depression by creating uncertainty for businesses, discouraging private investment, and undermining market forces
Monetarists, such as Milton Friedman, argue that the New Deal's policies, particularly the National Industrial Recovery Act, actually hindered recovery by keeping prices and wages artificially high
Some historians argue that the New Deal was a pragmatic response to a crisis, rather than a coherent ideology or a deliberate attempt to reshape American society
Others see the New Deal as a turning point in American history, marking the beginning of a new era of government activism and social welfare
The New Deal's impact on marginalized groups, such as African Americans, women, and immigrants, has been a subject of critical analysis
Some argue that the New Deal perpetuated racial and gender inequalities by excluding certain groups from its programs or providing them with inferior benefits
The New Deal's legacy continues to shape American politics and policy debates, with progressives seeking to build on its achievements and conservatives seeking to roll back its expansion of government power