History 112- CH 24

The Great Depression and the New Deal 1929-1940.

Sit-Down Strike at Flint: Automobile Workers Organize a New Union Hard hit by the Depression, Flint became a center of CIO activism.

In 1937 the union went on strike at General Motors. The United Auto Workers attempted to take advantage of the Wagner Act and

organize a union, but GM resisted them. Strikers seized two GM plants and refused to leave in a “sit down” strike. Supported by the governor, the strikers resisted efforts to eject them. The community rallied to support the strikers. GM gave in and recognized the UAW, a move that the other automakers soon followed. Dorothea Lange captured the lonely despair of unemployment in this photograph, White Angel Breadline.

Dorothea Lange captured the lonely despair of unemployment in White Angel Breadline, San Francisco, 1933. During the 1920s, Lange had specialized in taking portraits of wealthy families, but by 1932, she could no longer stand the contradiction between her portrait business

and “what was going on in the street.” She said of this photograph: “There are moments such as these when time stands still and all you can

do is hold your breath and hope it will wait for you.” The Great Depression was the worst economic crisis in American history, one

that profoundly affected every area of American life, and left psychic scars which still affect millions of families.  The crash did not cause the depression but revealed the underlying economic weakness. Industrial growth during the 1920s had not been accompanied by comparable increases in wages or farm income. The gap between rich and poor widened, as did that between production and consumption.  Rollin Kirby’s 1929 cartoon depicts an individual investor losing his money as he clings to a bear running down Wall Street. The bear symbolizes an atmosphere of panic selling and heavy losses, the opposite of a “bull” market in which investor confidence spurs buying and faith  in the future. 

During the 1920s, stock prices rose rapidly. Investors were lured by easy-credit policies like buying on margin. Market peaked in early September 1929, drifted down until late October, and crashed on October 29. By mid-November, the market had lost half of its value.

Buyers on margin faced paying hard cash to the cover the loans they received for purchasing stock that sold well below what

they had originally paid. Few people predicted that a depression would follow. The stock market crash led manufacturers

to decrease spending and lay off workers. Banks, heavily invested in the speculative bubble, began to collapse, intensifying the crisis.

By 1933, nearly one-quarter of the labor force was out of work. Unemployment took a tremendous personal toll and undermined the traditional authority of the male breadwinner. Although women found it easier to keep jobs their wages were lower.

Unemployment and economic insecurity scarred the Depression generation.

 Hoover’s Failure:

The enormity of the depression overwhelmed traditional sources of relief. President Hoover vetoed measures to aid the unemployed.

His Reconstruction Finance Corporation failed to restore business confidence. Efforts to make government credit available saved banks but did not encourage business growth. By cutting trade, the Hawley-Smoot Tariff made the international situation worse.

A Global Crisis and the Election of 1932:

The financial crisis spread to Europe, disrupting international credit and leading to more bank failures.

In 1932, protests erupted throughout the country, from violent strikes to the Bonus Army of veterans’ march on Washington.

The Democrats, led by Franklin D. Roosevelt and his promise of a “New Deal" won 57% of vote.

FDR and the First New Deal:

The New Deal embodied FDR’s personality and political methods. While being elected to an unprecedented four terms, FDR dominated American politics and life to an unprecedented extent that no later president has matched.

FDR the Man: A privileged New York background. He entered government as the 1920 Democratic vice presidential nomination.

His rapid rise in politics came to a halt when he was stricken with polio in 1921.The experience changed him, allowing him

personally to understand struggle and hardship. Returning to politics, he served two terms as governor of New York where he

established a reputation as a reformer.

Restoring Confidence:

First full day: called for a four-day “bank holiday”. One week later: Fireside chat strengthened public faith in his ability to help

Congress passed legislation that strengthened the banking system, helping to avert the immediate banking crisis. Advised by his informal “Brains Trust,” FDR adopted a program of government-business cooperation an central economic planning. FDR called a special “hundred days” session of Congress to enact his program to revive industry and agriculture while providing emergency relief. Congress passed legislation Civilian Conservation Corps, Federal Emergency Relief Administration, Public Works Administration, Agricultural AdjustmentAdministration, Tennessee Valley Authority and National Industrial Recovery Administration among a host of other programs.

Roosevelt’s Critics, Right and Left

The right: the New Deal was socialistic 

The left: too timid including:

Francis Townsend called for providing $200 monthly payments to all persons over 60.

Huey Long, who served as governor and then as senator for Louisiana, called for a “Share Our Wealth” program to redistribute wealth.

A recruitment poster represents the Civilian Conservation Corps (CCC) as much more than simply an emergency relief measure, stressing character building and the opportunity for self-improvement. By the time the CCC expired in 1942, it had become one of the most popularof all the New Deal programs. A conservative Supreme Court that threw out the NRA in Schecter v. United States, and in Butler v. United States invalidated the Agricultural Adjustment Administration.

The NRA (National RecoveryAdministration) was an element in the National Industrial Recovery Act (June1933), authorizing the president to institute industry-wide codes to eliminate unfair trade practices, reduce unemployment, establish minimum wages and maximum hours, and guarantee the right of labor to bargain collectively. Roosevelt responded by turning left with a new program of social reform to strengthen the national commitment to creating jobs; provide security against old age, unemployment, and illness; and improve housing conditions and cleaning. FDR responded by shifting leftward. Second New Deal signature programs included the Social Security Act, National Labor Relations (Wagner) Act. The Works Progress Administration invested billions in job creation and the Resettlement Administration sought to reform farming. Many of these programs continue today.

The Wagner Act- Facilitated unions leading to a growth of members to 10.5 million by 1942. Committee for Industrial Organization (CIO), later the Congress of Industrial Organizations, Organized mass-production workers.

His supporters included:

 traditional white southern Democrats, big-city political machines, trade unionists , depression-hit farmers , ethnic voters.

Years of Dust. This 1936  poster by the artist andphotographer Ben Shahn, served to publicize the work of the Resettlement

Administration, which offered aid to destitute farm families hit hard by the Dust Bowl. Shahn’s stark imagery here was typical of the documentary aesthetic associated with Depression-era art and photography. The New Deal’s greatest impact was in the South and the West.

Federal farm programs moved Southern agriculture away from sharecropping and tenant farming and toward new patterns of wage labor and agribusiness. TVA projects introduced electricity to millions of rural Southerners, transforming their lives. 

New Deal programs also reshaped the West where federal subsidies and water management became an integral part of life. 

Southern Farming and Landholding:

In 1930, less than ½ of all southern farmers owned their land; over ¾ of the region’s African-American farmers and nearly ½ of its white farmers were sharecroppers or tenants. The Agricultural Adjustment Administration (AAA) was able to boost prices by paying farmers to “plow under” and take their land out of production.  Many of the subsidies went to large landowners who used the money to buy labor-saving machinery, putting many out of work. Resulted in migration to industrial centers such as Memphis, Chicago, Birmingham, and Detroit.

The Tennessee Valley Authority and the Rural Electrification Administration gave millions of southern households electricity for the first time.

An Environmental Disaster: The Dust Bowl

The Dust Bowl, caused by farmers’ methods that stripped the landscape of its natural vegetation and left nothing behind to hold down the topsoil, swept through parts of the region.

Farmers were encouraged to plant soil-enriching crops. The AAA provided subsidies to farmers who reduced their acreage. Eviction of tenants and sharecroppers led to a stream of " Okies"

New Deal water projects allowed urban growth, agricultural expansion, and massive irrigation, especially in the West.

These projects promoted flood control and supplied low-cost electricity. A general decline in the environment also occurred.

A New Deal for Indians:

John Collier, the new head of the Bureau of Indian Affairs, reformed many harmful practices.

The Indian Reorganization Act restored tribal ownership of land. The Bureau of Indian Affairs grew more sensitive to Indian cultural freedom and supported efforts to restore tribal rights. Led by Nathan Margold, The Department of the Interior returned to recognizing Indian tribes’ “internal sovereignty’.

Fletcher Martin painted Mine Rescue (1939) in the Kellogg, Idaho, post office. The workwas part of a Treasury Department program that employed unemployed artists to beautify government buildings. The mural was eventually removed under pressure from local citizens who worried that it might upset those who had lost loved ones in mine accidents.

In his second Inaugural Address, Roosevelt lamented that “I see one third of a nation ill-housed, ill-clad, ill-nourished.” With his victory, the future for further social reform seemed bright. Yet by 1937, the New Deal was in retreat.

FDR became frustrated when the Supreme Court overturned several key New Deal programs. He asked Congress to allow him to appoint a number of new judges. New Deal sympathizers feared this would disrupt the constitutional balance and blocked the effort. 

Court Packing Scheme:

Bring Supreme Court to 15 seats. In time FDR got a more sympathetic court, but the battle cost him heavily.

The New Deal brought significant changes for women. Eleanor Roosevelt established a new role for “First Ladies.”

The New Deal saw the first female Cabinet member, Secretary of Labor Frances Perkins, a long-time reformer.

The New Deal brought significant changes for women. New Deal agencies opened up spaces for many women, particularly in social welfare

programs.

FDR banned discrimination in WPA projects, leaving African Americans to find jobs. A “Black Cabinet” led by Mary McLeod Bethune advised FDR on black issues and opened up a number of second-level. By 1936, a majority of black voters supported the Democrats.

The Roosevelt Recession and the Ebbing of the New Deal:

1937: FDR had become convinced that the federal deficit had grown too large:

cut spending, creating a severe recession, increasing unemployment, and weakening support for the New Deal.

a minimum wage and funding for public housing. (last significant New Deal programs) .

1938: elections increased Republican strength.

The New Deal also funded theatrical performances, sent orchestras out on tour, financed new compositions, and supported new works of art.

Novelists like John Steinbeck portrayed the hardships of Okies but affirmed their willingness to persevere.

Raising Spirits: Film, Radio and the Swing Era

The movies: an enjoyable escape Hollywood avoided confronting controversial social issues and relied upon indirect comments in gangster films and screwball comedies. Walt Disney’s cartoons moral tales stressed following the rules Frank Capra idealized small-town America, solutions in the old-fashioned values of common people.

In 1930, 40% of American homes had a radio. Ten years later, 90 percent did. Network radio relied on older forms, vaudeville, and blackface minstrel comedy. Soap operas dominated daytime radio and featured strong women who gave advice to weak, indecisive friends. By the end of the decade network news had become the prime news source for most Americans. Radio stations and recordings continued to help popularize jazz music. White performers like Benny Goodman, “the King of Swing,” popularized African-American musical forms for amass audience, initiating the swing era.

The Great Depression and the New Deal, 1929–1940:

The New Deal proved less radical than conservatives charged, especially in changing the status of minorities or redistributing wealth.

Nonetheless, it left a legacy of government oversight of the economy and established long-lasting trends of government activism.

The Democratic Party remained dominant for the next three decades and continued the New Deal legacy. There were limits; the New Deal did little to end racial discrimination and more radical programs never got off the ground. After 1937, a conservative resurgence insured that there were few new initiatives, but existing programs remained, and with them the role of government in American life.