THE GREAT DEPRESSION 1929 1940 New Deal Legislation

THE GREAT DEPRESSION 1929 -1940

New Deal Legislation (Alphabet Soup) n n Hundred Days – period in 1933 when FDR pushes programs through Congress FDR passed laws – 3 R’s – Relief, Recovery and Reform q q q Relief – provides jobs to unemployed Recovery – government spending to put money back in the economy Reform – changes laws to fix and prevent another depression

Relief Ø Relief Legislation 1. Civilian Conservation Corp (CCC) – jobs for young men – planting trees and cleaning up forests 2. Public Works Administration (PWA) – jobs building schools, roads, bridges

CCC CAMP

n n 3. Works Progress Administration (WPA) – jobs by hiring artists, writers and musicians to paint murals and produce plays. 4. Tennessee Valley Authority (TVA) – built dams to control floods and produce electricity

• Recovery n n n 1. Govt puts $ back into economy so the people will spend more. 2. National Recovery Administration – asked businesses to follow codes to regulate wages, working conditions, and prices but was found unconstitutional. 3. Agricultural Adjustment Acts – paid farmers to plant less in hope to increase crop prices. q *The public was outraged at the destruction of crops and animals in order to keep production down.

n REFORM 1. Federal Deposit Insurance Corporation (FDIC) – people won’t lose their savings if a bank fails 2. Securities and Exchange Commission (SEC) – created to watch over the stock market 3. National Labor Relations Act also known as Wagner Act – gave workers the right to form unions and collective bargaining

n n 4. Fair labor Standards – set a minimum wage and max work week 5. Social Security Act – one of the most important, gave workers unemployment insurance, old age pensions and $ to the ill and handicapped.

Unemployment Rate: 1929 -1943

Views of the New Deal Supporters n “The New Deal Coalition” q q q q Poor Urban dwellers (Catholics and Jews) African Americans Farmers / South Artists / Intellectuals Unions Elderly Opponents n n n Wealthy Business Owners Farmers (maybe in the MW and East)

THE SUPREME COURT n Challenges to the New Deal q q 1935: Schechter v. US: struck down NRA n “Sick chicken case” – Schechter brothers were accused of selling unhealthy chickens to buyers in violation of NRA Codes n NRA codes were written by business leaders, but if Pres. agreed with codes they could be given power of “law” n SC says Schechter was intra-state trade n separation of powers – FDR had taken legislative powers of Congress and was regulating trade within a state 1935: U. S. v Butler: struck down AAA n gov’t can’t tax one group (processors) to then give to farmers for not farming all of their land n Can tax, but the tax was coercive and led to unconstitutional ends n AAA is rewritten and passed again in 1938

FDR’s Court Packing Plan FDR wanted to increase the # of Supreme Court Judges from 9 to 15 to get his New Deal laws passed. q FDR was afraid the Supreme Court would find many of his programs unconstitutional q By increasing the # of judges he could appoint judges who would uphold his programs n Violates separation of powers q n Congress does not pass the Act Eventually FDR gets to appoint new judges

Criticisms of the New Deal

FDR’s Critics n Francis E. Townsend q Created an impossible plan n q 2% sales tax nationally Wanted to give elderly money n n Give $200 a month They would spend it to help economy

Father Charles E. Coughlin n Blamed business and bankers for Depression supported FDR, then calls him a Socialist q Wanted FDR to help but felt he went too far q Believes he is a puppet of business/bankers Used radio q Eventually claims it was Jewish business and bank owners who were to blame q becomes too radical, Church tells him to stop

Huey “Kingfish” Long n n n Senator from Louisiana “Share the Wealth” q income and inheritance taxes on wealthy Wanted to guarantee Americans: q $2, 500 a year q A car and home q College education All The Kings Men – News “All The Kings Men” Trailer

General Criticisms n n Some projects did not have lasting effects Gov’t was too involved in economy q n END OF LAISSEZ FAIRE Heavier taxes = less money for consumers to spend

Deficit Spending n Deficit Spending q q The government was spending more money than it was collecting through taxes Leads to heavy debt How will gov’t pay off the debt? Worried the gov’t was becoming too large n “Welfare state” – people are relying too much on the gov’t

Critics of the New Deal n n n Some people felt FDR was acting as a dictator Some felt the govt isn’t doing enough Big Business owners dislike ND b/c it was Pro-Union Women – no programs specifically for them, and paid lower wages Blacks – no hiring “rules” and programs are segregated q AAA paid money to landowners not sharecroppers

New Deal Controversy Ø FDR is elected 4 times! Ø Ø 1932, 1936, 1940, 1944 22 nd Amendment (1951) Ø A person can only be elected to the presidency 2 times

Legacy and Views of the New Deal

LEGACY OF NEW DEAL n n n Government’s role changed: q President and Fed. Gov’t becomes more powerful! q “Broker State” n Fed. Gov’t assists groups who are able to organize and exercise power(voting) to demand government action q Too many people rely on gov’t for job and $ Minorities: mixed results: women & blacks in FDR’s gov’t; discrimination from New Deal Continues the “reform tradition” Populists and Progressives Capitalism “saved”: Did NOT end the Great Depression (WWII did) q It helped Americans cope!

Political “Flip-Flop”: n Democratic Party q q n used to be: Jefferson’s vision of a smaller gov’t, not heavily involved in people’s lives Now: more gov’t. involvement, higher taxes, more spending, actively help the poor and less fortunate Republican Party: q q used to be: stronger more powerful central gov’t, support economic growth: Federalists, Whigs Now: gov’t is too big, interferes too much in people’s lives, need to cut spending and taxes