Published on January 9, 2008
The New Deal : The New Deal (Jansson Ch 7 & 8) Dana Ryan Andrea Bunce JoLane Blaylock SW 510 Era of Denial: Era of Denial 1929-1933 Slide3: Despite the Depression, most assumed economic growth would resume Reconstruction Finance Corporation (RFC) passed, with $2 billion for projects and banks that were to encourage economic growth Hoover felt private service agencies could take care of the problems being faced Very small group of reformers attempted to expand social services FDR was not a liberal, but was a moderate who supported social services, to an extent After 3 Republican presidents, country was ready to try a Democrat and FDR won 1932 election by a landslide FDR was made even more powerful by his wife, Eleanor, who was an avid social reformist Era of Emergency Reforms 1933-1935: Era of Emergency Reforms 1933-1935 Slide5: Forces that promoted major reforms Working class voters who elected FDR Horrific human suffering of the 1930s Republicans & conservatives in complete chaos, allowing FDR to push his ideas through The legislation & programs he enacted transformed the country and created the welfare state we now know. Slide6: Forces that limited Roosevelt’s initial policy initiatives Churches, as most were extremely conservative Labor leaders who were too preoccupied with their own right to organize Democratic party that was taken over by corporate interests Supreme Court rulings that nullified aspects of the New Deal No fiscal or government institutions to carry out reforms No radical movement active in the country Dissention among his own advisors Emergency Relief: Emergency Relief Slide8: 1932: Federal Emergency Relief Administration (FERA) - provided funds to states for people who needed monetary help - authorities had right to federalize in states who were mired in corruption or excessive patronage (was actually done in 6 states) * First major welfare program in our history. Civilian Works Administration (CWA): part of FERA - used FERA monies to create public works - gave government new social welfare responsibilities Slide9: Civilian Conservation Corps (CCC): 1933 Provided conservation work in national & state parks for young men Most popular reform measure of New Deal Helped youth and reduced the welfare rolls Run by Army & Dept of Interior Slide10: Works Progress Administration (WPA) Developed in 1933 CWA thought not to have lasting economic benefits, so amended into this First massive peacetime movement by govt in public projects Constructed bridges, airports, dams, & schools Wagner-Peyser Act: Wagner-Peyser Act Passed in 1933 Federal monies used to fund unemployment offices Offices used frequently to recruit people for work in CCC, CWA, & PWA Reform of the Economic System: Reform of the Economic System Slide13: Federal revenue was not sufficient to cover mounting costs of New Deal programs FDR under constant pressure to cut social spending National Industry Recovery Act of 1933 passed to convene industry leaders and agree on prices, establish common wages for workers, and set production quotas; intended to stop cycles that furthered the Depression; also established the National Recovery Administration (NRA) NRA criticized for creating illegal monopolies FDR tried to use NRA to indirectly stop child labor and to legitimize union organization NRA terminated in 1935 when Supreme Court declared it unconstitutional Slide14: Agricultural Adjustment Agency (AAA) created to stop agricultural depression so that millions of farmers wouldn’t become bankrupt; gathered producers of same crops to settle the acreage amounts to be grown and paid farmers for not planting some of their land. AAA created ways to stop tenant farmer abuse by landowners, but was unmonitored and ineffective Emergency Farm Mortgage Act & Farm Relief Act were both enacted in 1933 to let govt purchase & refinance farm mortgages National Housing Act of 1934 established the Federal Home Administration (FHA), to insure mortgages so banks would be willing to refinance Tennessee Valley Authority (TVA) of 1933 oversaw development of dams and power plants; region was site of vast economic rebirth with minimal costs Emergency or Permanent Programs?: Emergency or Permanent Programs? Slide16: Overriding question: Would Americans institutionalize the new social reforms of 1933 & 1934 or dismantle them immediately? FDR terminated CWA in 1934 Conservative interests forming coalitions and cohesive political consciousness FDR hoped that social reforms would ease the depression so they could be reduced Evolution of the Reluctant Welfare State : Evolution of the Reluctant Welfare State Chapter 7 Analysis Slide18: 1933 & 1934 were decisive years of modern welfare state Taboo social policy ideas were now acceptable & operational Once new policies were in place, there was no way to turn back Traditional approaches now seemed mean-minded and callous to general public Toward Ongoing Programs: Toward Ongoing Programs 1935-1936 Slide20: Second New Deal: new reforms introduced to supplement or replace earlier programs New reforms intended to decide which ongoing welfare functions govt should assume and how they relate to organized labor Pressure on FDR from reformers and social workers continues to escalate Unions of unskilled workers also putting enormous pressure on FDR Workers, liberals, & African Americans were critical of FDR, but preferred him to the increasingly conservative Republicans who were growing more stringent about reform since the 1934 elections End Poverty in America (EPIA) Plan: End Poverty in America (EPIA) Plan Included: Ongoing federal jobs program Massive low-cost housing program Insurance programs Creation of large manufacturing centers Rural programs to help poor farmers gather land & equipment The Social Security Act 1935: The Social Security Act 1935 Foundation of the American welfare state Seen by FDR as one piece of legislation that encompassed many facets he would be unable to pass otherwise Contained 2 social insurance programs, 3 relief programs, and many other smaller programs Regressive tax system that placed stiffer taxes on low-income workers than on the more wealthy Broadened in 1939 to include family members of the worker Excluded those not involved in taxed employment Aid to Dependent Children (ADC): Aid to Dependent Children (ADC) Some social workers wanted to grant relief only to children they decided lived in “suitable” homes. Southerners kept benefits low to ensure African American women & children continued to work in the fields Restricted assistance to families with a single parent or those whom the welfare grants were only for children and not the parent Social Security, continued: Social Security, continued ADC, Old-Age Assistance (OAA) and Aid to the Blind (AB) were the first permanent and major federal relief programs. Many people of that time might have reconsidered these programs had they known how they would grow. FDR thought of including national health care, but was afraid of the trouble the American Medical Association might cause. Labor and Public Works Legislation: Labor and Public Works Legislation Wagner Act of 1936: Wagner Act of 1936 NRA declared unconstitutional in 1935 Partly responsible for drastic increase in union membership Employers required to officially recognize union bargaining agents, could not fire nor intimidate organizers, and could not claim that the company union suffered when workers held elections Emergency Relief Appropriation Act 1935: Emergency Relief Appropriation Act 1935 Work program consolidating existing federal jobs programs Socially useful projects designated for areas in relation to welfare roll numbers for the region Works Progress Administration (WPA): Works Progress Administration (WPA) Dominated FDR’s public works strategy Major player in disaster relief work Utilized the local, state & federal staff of FERA, which was phased out after Social Security Act was passed National Youth Administration (NYA): National Youth Administration (NYA) Advocated by Eleanor Roosevelt College aid for poor students Aid for high school students Public jobs in recreation centers & municipal services Camps for rural youth to teach trade skills Era of Stalemate: Era of Stalemate 1937-1941 Slide31: After FDR’s reelection in 1936, people asking where New Deal to go next He slashed funding for many New Deal programs to reduce federal deficits Middle-class voters begin to suspect him of socialism Conservative coalition now openly questioning his policies Supreme Court and political defeats in 1936 & 1937 tarnished his public image Policies During Era of Stalemate: Policies During Era of Stalemate Fair Labor Standards Act of 1938: Fair Labor Standards Act of 1938 Gains made under NRA were erased when Supreme Court declared it unconstitutional FLSA rectified these gaps in policy Established minimum wages Established maximum hours Wagner-Steagall Housing Act of 1937: Wagner-Steagall Housing Act of 1937 Established US Housing Authority to offer low-interest loans for public housing Reorganization Act of 1939: Reorganization Act of 1939 Created sub-cabinet Federal Security Agency (FSA) & Federal Works Agency FSA Contained CCC, NYA, Public Health Service, US Employment Service, Social Security Board Federal Works Agency contained WPA & PWA Attempts to make CCC permanent program failed in both 1937 & 1939Also defeated was attempt to create sister acts of TVA in seven other river basins: Attempts to make CCC permanent program failed in both 1937 & 1939 Also defeated was attempt to create sister acts of TVA in seven other river basins Out groups & the New Deal: Out groups & the New Deal How did the New Deal help them? African Americans: African Americans FDR refused to support legislation making lynching federal crime Wouldn’t support elimination of the poll taxes of the South No legislation to counter housing market segregation FDR felt they were discriminated against because they were poor, not because of race: therefore, New Deal programs helped them as they helped all other poor people Quotas were not used because they were seen as reverse discrimination tactics CCC was segregated Women: Women Eleanor Roosevelt was voracious women’s advocate No women in CWA 15% of WPA recruits were women Wagner Act helped to organize women More job security than men in Depression because their work was sex-segregated NRA labor codes established the gender wage gap Since Social Security benefits were based on wage levels and job history, women had small benefit packages Latinos: Latinos Farm workers weren’t covered under Wagner Act, where bulk of Latinos were employed No Social Security or unemployment benefits Bracero program instituted w/Mexico in 1942: number of Mexicans allowed in US to work, which helped ease Mexican unemployment and US labor shortages on farms Segregated communities Los Angeles police known for conducting regular mass roundups and incarcerations Asian Americans : Asian Americans Immigration Act of 1924 limited annual number of immigrants from specified areas First-generation was denied citizenship since they were not Caucasian, and then denied access to relief programs of Depression because they were not citizens Despite confidential reports before & after Pearl Harbor that they were not a threat, FDR signed Executive Order 9066 which was the basis for internment camps EO 9066 & camps are seen by many Asian Americans as primary example of the impact of racism on US social policy Ban on Chinese immigration finally lifted in 1943 Evolution of reluctant welfare stateChapter 8 Analysis: Evolution of reluctant welfare state Chapter 8 Analysis New Deal striking departure from traditional American policies in two ways FDR created a national welfare state that overrode local programs He created social programs rather than maintaining a regulatory strategy FDR CREATED REFORMS IN A SOCIETY WHERE NO NATIONAL SOCIAL PROGRAMS HAD EXISTED AND IN SPITE OF ENORMOUS SOCIAL, LEGAL & POLITICAL OPPOSITION. DISCUSSION QUESTIONS: DISCUSSION QUESTIONS What political, cultural, economic, or other factors seem to make policy makers deny some problems while taking others seriously? Would major social programs such as the New Deal have been created federally if the Great Depression had never occurred? What ethical criticisms would FDR have encountered had he not developed national programs in the Great Depression? Were a truly liberal party to exist in the US, would it be successful in getting & keeping power with our winner-take-all system of elections?