The New Deal Dreams No Longer Deferred Dreams

The New Deal Dreams No Longer Deferred?

Dreams Deferred (Hughes) What happens to a dream deferred? Does it dry up like a raisin in the sun? 
 Or fester like a sore-- 
And then run? Does it stink like rotten meat? 
 Or crust and sugar over-- 
like a syrupy sweet? Maybe it just sags
like a heavy load. Or does it explode?

Unit’s Theme: Dreams Deferred & Americans during the G. D. o Roaring 20’s promised wealth, progress and peace n n n o The Great Depression destroyed these dreams n n o Wilson even says poverty is virtually gone in 1928 Think of the textbook’s film: dance, art, literature, booming economy, youth culture These are DREAMS --- American Dream? Unending happiness (not for everybody; of course) Families lost jobs, savings, possessions; husbands w/t work; teenagers homeless; women stealing coal Causes: market speculation; unequal wealth distribution but, people blamed themselves, filled with shame Hoover’s policies continue to defer Americans’ dreams (think of the song) – Americans convinced gov’t not doing enough to help people = FDR’s win in 1932

Presidential Economic Policies during the 1920 s: Review o HARDING conservative economic philosophy (carried out by Coolidge & Hoover) n n 1. 2. 3. o Role of gov’t was to make business more profitable; Stay out of economy (laissez faire) Businessmen should run the government; Rejected federal gov’t programs to help citizens; Less Taxes: for corporations and the wealthy ("trickle down" economics) High Tariffs: Fordney-Mc. Cumber Tariff (1922): Tariff rates pushed from 27% (Underwood Tariff) to about 38. 5% Less Regulation: Business leaders = regulators of own industries = no regulation COOLIDGE carries out Harding’s conservative programs n Coolidge and Mc. Nary-Haugen Bill (proposed 1924 to 1928) o o Sought to keep agricultural prices high by authorizing the gov’t to buy up surpluses and sell them abroad. Coolidge vetoed it twice; Farm prices stayed down and disgruntled farmers sought to make a difference in the 1924 elections

Hoover’s Philosophy & Action o o Philosophy: Rugged Individualism – people can/must take care of themselves through “cooperation”– gov’t needs to stay out Associative State – business create associations; associations + gov’t = projects that improve economy Action n o Hoover Dam: (1930 s) 6 companies builds largest dam with gov’t funding Smoot-Hawley Tariff Act: (1930) tariff on imports to protect US companies; Europe imposes tariffs – world trade decreases hurting American companies Reconstruction Finance Corporation: (1932) $2 billion in loans for banks, insurance companies and home building HOOVER is an extension of the 1920 s Conservative Government Policies: Rugged Individualism (fits in with laissez faire capitalism) + Associative State

Disenchantment with Hoover’s Policy o Economic indicators n n n o o farm prices (went down) national income (went down) Gross National Product – total goods (went down) earnings (went down) unemployment (went up) Hoovervilles, Hooverblankets Bonus March (Herbert Hover and Douglas Mac. Arthur) n 1932, WW I veterans tried to pressure Congress to pay them their retirement bonuses early; gov’t attacks protestors

What role should the government play in an economic crisis?

How does the government help people during an economic crisis? What sort of programs or assistance comes to mind? o Please write down on a separate sheet of paper.

1932 Presidential Election: The New Deal’s Promises o o 1932 Presidential Elections + Worst GD year = Goodbye Hoover FDR: NY Governor in 1929 -1932; established relief programs to help people n n n o 1932 Presidential Campaign, FDR promised “Public Works” Programs: gov’t funded building projects that would create jobs Criticized Hoover for failing to aid people, while giving money to companies (associative state) Wins election with 57%; all but six states New Deal: gov’t programs to end the Great Depression

The New Deal: 1932 -38 o o New Deal: gov’t programs to end the Great Depression FDR promises “new deal” between gov’t and citizens through direct help n n n o o Relief for people out of work Recovery for business and the economy Reform of American economic institutions (banks, stock market, etc. ) New Deal provides opportunities for work, survival, community (everybody is in this together) 1932 Presidential Elections FDR wins with a significant majority n The American Dream seems salvageable; FDR will not defer the American Dream.

New Deal Programs o o o Federal Deposit Insurance Corporation (FDIC): insure savings banks deposits up to 5, 000 Civil Works Administration (CWA): gave people government jobs Civilian Conservation Corps (CCC): provided jobs for 18 -25 year old men Agricultural Adjustment Act (AAA): to give economic relief to farmers Social Security Act (1935): 65 & older would receive pension from the govt. Tennessee Valley Authority (TVA): (1933 included parts of 7 states) affordable electricity, controlled flooding, helped farmers

Role of Government during New Deal o o Hoover believed gov’t should stay out of business – “associative state” FDR’s New Deal created a much larger gov’t (all those programs required people to lead them) with more power over the economy n n Gov’t closes and restructures banks National Recovery Administration: set hours, wages, conditions National Labor Relations Board (1935) provided strength for workers against companies Gov’t spends a lot of money (Keynesian deficit spending) by providing jobs and buying goods = major force in US economy

New Deal Politics and Struggles o 1 st New Deal v. 2 nd New Deal n n o o Critics of New Deal Programs n American Liberty League, Father Charles Coughlin, Huey Long (Socialist; Share Our Wealth), Dr. Francis Townsend(old age pension plan), Schechter vs. U. S. (kills NRA), Butler vs. U. S. (kills AAA) n Zinn/leftist argue that ND did not change economy: still private property, still profits, still inequality. ND = reform to avoid revolution. After ND, capitalism and exploitation will continue. - This besides racism. Supreme Court Packing n n o Most programs of 1 st New Deal created in 1 st 3 months (1 st 100 days): TVA, AAA, NIRA, CWA, etc 2 nd New Deal took place 2 years later, after the 1934 election when Democrats won Congress: Social Security, Rural Electrification, Wagner-Connery Act which created Nat’l Labor Relations Board Supreme Court ruled against Agricultural Adjustment Administration and National Industrial Relations Administration FDR tried to increase judges from 9 to 15, to choose 6 new judges; didn’t work, and lost support for New Deal End of New Deal Enter WWII n n n 1938 elections Republican Party (anti-New Deal) won elections in Congress; they block any FDR propositions (which are very few) Although most Americans are pro ND, unemployment still around 15% WWII starting; economy being focused on military production

New Deal “Alphabet Soup” The Pre Franklin Purpose & Impact sident Delano Acronym Full Name SEC Securities & Exchange Commission Government regulation of the stock market… made exchange more stable… REFORM PWA Public Works Administration Provided jobs for the unemployed… roads, bridges, hospitals, etc… RELIEF CCC Civilian Conservation Corps Provided jobs for the unemployed… plant trees, soil erosion projects, public parks… RELIEF AAA Agricultural Adjustment Administration Farmers cut production in return for a government subsidy… solved problem of overproduction of crops… RECOVERY TVA Tennessee Valley Authority Built dams for flood control, farm irrigation, hydroelectric power for the Tennessee River Valley… RELIEF & RECOVERY NIRA/NRA National Industrial Recovery Act Forced industry to set prices & levels of production (quotas); government control over economy… RECOVERY WPA Works Progress Administration ½ of entire New Deal budget… Wide range of projects… public works, photography, writers & actors, artists… “We’ll pay anybody”… RELIEF FDIC Federal Deposit Insurance Corporation Restored faith in banks by insuring bank deposits… REFORM NLRA National Labor Relations Act Protected labor… unions, legalized strikes, boycotts, etc. , mediate labor disputes… REFORM SSA Social Security Administration To provide a modest retirement income former workers; (savings had been wiped out by crash & bank failures)… RELIEF Rooseve lt e Rs The Thre Relief Recovery Reform