Roosevelt and the New Deal
Franklin Roosevelt stood against Hoover in the 1932 presidential election and was elected by a landslide majority. At first it seemed strange that Roosevelt, a wealthy man, should win at a time when the American people were suffering great hardship. But Herbert Hoover had become very unpopular because he had failed to tackle the effects of the Depression. He had contrived to give the impression that he did not care about the plight of the unemployed and homeless. His treatment of the Bonus Marchers had simply been the last straw. On the other hand, Franklin Roosevelt had shown that he had been able to tackle tragedy in his personal life. He had refused to give in to polio, when it would have been easy to settle for the life of an invalid. As Governor of New York he had introduced a number of measures aimed at relieving the effects of the Depression.
But the most important factor in Roosevelt’s favour was that he gave everybody the impression that he cared. His powerful speeches at the Democratic Convention and during the campaign persuaded the voters that something would at last be done. Roosevelt made few promises except to offer a ‘New Deal for the American people’ and to declare war on poverty; indeed he seems to have had few real plans until after his election. Many of Roosevelt’s polices were developed from November to February 1932 to 1933 with a small group of advisers, Harry Hopkins being the most important.
Once Roosevelt became president in March 1933, he wanted to show that he was determined to take swift, effective action. He stated that he was going to wage war on the emergency. He asked Congress for emergency powers and used it to set up the first Alphabet Agencies, the CCC was the very first and to take action to close the banks in an effort to restore confidence in the financial system. Roosevelt’s slogan was ‘Relief, Recovery and Reform’. He wanted to help people in the crisis, get the USA going again and make sure that the same situation could not happen again.
To put over his ideas and try to persuade people to accept them, Roosevelt gave ‘Fireside Chats’ to explain in simple terms what he was trying to achieve. He talked to the US people from the White House as if he was in their own living rooms. Roosevelt also ordered that any letters sent to him must be answered and action must be taken. He used propaganda films of himself at the White House and around the country to win support.
The Emergency Banking Relief Act closed all banks for four days to quieten things down. Government officials investigated them and the re-opened if they had enough funds to operate. Banks were banned from investing in the stock-market. This restored confidence in the banks.
The FERA or Federal Emergency Relief Agency provided $500 million for immediate relief of the poorest victims of the depression
The CCC or Civilian Conservation Corps, gave work to 2,000,000 young Americans (only 8,000 women though) in the countryside, clearing forests, replanting trees, mending fences etc. Young people worked for 6 months to get used to work. They were paid but had to send most of it home. Although many young people took part, they often moved from one camp to another and rarely found permanent work.
The AAA or Agricultural Adjustment Act, tried to help farmers. They were encouraged to switch to new crops and paid to stop overproducing others. Farm incomes rose again. Farmers had to reduce the amount of land under the plough and kill animals. This was widely criticized for wasting food at a time when millions were starving.
The TVA or Tennessee Valley Authority built a whole series of dams to control the flood waters of the Tennessee River. This meant that the land could be irrigated and farmed and it also provided electricity. Industry went there, which needed cheap electricity: aluminium smelting, paper-making etc. there were jobs in building the dams and in thse industries. A previously poor and backward areas of the USA was thus revived. This was the most successful part of the New Deal.
The NRA or National Recovery Administration: this had two parts: the PWA, Public Works Administration, being major building schemes which provided jobs, and the Blue Eagle which was a series of agreements between employers and workers setting decent wages and working conditions. Goods produced under these rules displayed a ‘Blue Eagle’ badge. This led to opposition to Roosevelt from businesses.
The HOLC, the Home-Owners’ Loan Corporation, gave low interest loans to home owners, which allowed them to rearrange mortgage payments if they were unemployed.
The Wagner Act 1935 gave all workers the right to join a trade union. It was passed because the Supreme Court had declared that part of the NRA was unconstitutional. The Supreme Court also declared the AAA to be unconstitutional, so the Resettlement Administration was set up to help farmers.
The Social Security Act 1935 was set up to provide a basic system of welfare including old age pensions, unemployment and sick pay.
The WPA or Works Progress Administration, provided government money for many improvement schemes all over the USA: bridges, hospitals, schools, airports, parks. Even writers and artists were hired to write local guides and pain murals.
Roosevelt had originally planned to reduce government spending during his second terms as president, but soon found that unemployment rose rapidly to ten million people. Employers also did not like his interference in industrial relations and tried to break the growing power of unions. The result was a wave of strikes in 1937 and 1938. Roosevelt increased spending again and unemployment fell once more.
Despite the Supreme Court’s ruling against the AAA, farming began to recover in the mid-1930s. But one group of farmers saw no improvement. In the states of Oklahoma, Kansas and Arkansas the farmland was swept away by winds and the area became a dustbowl. The farmers here were poor share-croppers, who were evicted and forced to head west to California. Many made a living fruit-picking.
Roosevelt was constantly pressed by his wife Elanor to do more for Black Americans. He insisted that they should be allowed to go to CCC camps, but these camps were segregated. Roosevelt was dependent upon southern democrats for votes and was unable to go any further. Nevertheless, black Americans voted for him in large numbers at every election. |
