US History Unit 26 ReviewFranklin Roosevelt and the New Deal, 1932–1941

Background and Context

• 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