Roosevelt's New Deal, 1933-1939
Roosevelt's New Deal, 1933-1939
Franklin D. Roosevelt (FDR) was elected President in November 1932, defeating Hoover in a landslide. He promised Americans a "New Deal" — a programme of government action to tackle the Depression. He took office on 4 March 1933 and immediately began the most ambitious period of government intervention in American history.
The First Hundred Days (March-June 1933)
Roosevelt acted with extraordinary speed. In his first hundred days, he pushed 15 major laws through Congress:
- Emergency Banking Act (March 1933) — Closed all banks for four days (a "bank holiday"). Government inspectors checked every bank; only sound banks were allowed to reopen. This restored public confidence — when banks reopened, deposits exceeded withdrawals.
- Federal Emergency Relief Administration (FERA) — $500 million in direct relief to states for the hungry and homeless.
- Civilian Conservation Corps (CCC) — Employed 2.5 million young men (aged 18-25) in outdoor conservation work: planting trees, building dams, and fighting soil erosion. Workers received $30 a month, $25 of which was sent home to their families.
- Agricultural Adjustment Act (AAA) — Paid farmers to produce less, in order to raise prices. Controversial because crops were destroyed and animals slaughtered while people went hungry.
- National Industrial Recovery Act (NIRA) — Set up the National Recovery Administration (NRA), which established codes of fair practice for industry: minimum wages, maximum hours, and the right of workers to join trade unions. Businesses that signed up displayed the Blue Eagle symbol.
- Tennessee Valley Authority (TVA) — A huge government project to build dams across the Tennessee River valley (covering seven states). The TVA provided cheap electricity, flood control, and jobs in one of the poorest regions of America.
- Public Works Administration (PWA) — Spent $3.3 billion on large construction projects: roads, bridges, schools, hospitals, and airports.
The Second New Deal (1935-1937)
After the first wave of measures, Roosevelt introduced further reforms:
- Works Progress Administration (WPA, 1935) — The largest New Deal agency, employing 8.5 million people between 1935 and 1943. Workers built 650,000 miles of roads, 125,000 public buildings, and 8,000 parks. The WPA also employed artists, writers, musicians, and actors.
- Social Security Act (1935) — Introduced a pension for Americans over 65, unemployment insurance, and support for the disabled and for mothers with dependent children. This was the foundation of the American welfare state.
- National Labor Relations Act (Wagner Act, 1935) — Guaranteed workers the right to join trade unions and bargain collectively. This was a major boost for the labour movement — union membership rose from 3.6 million (1933) to 9 million (1938).
Opposition to the New Deal
The New Deal faced criticism from both left and right:
| Source | Criticism |
|---|---|
| Republicans and big business | The New Deal was too radical; it gave government too much power; it was "creeping socialism"; high taxes on the rich were unfair |
| The Supreme Court | Declared the AAA and NIRA unconstitutional in 1935-36, arguing the federal government was exceeding its powers |
| Huey Long (Senator, Louisiana) | The New Deal did not go far enough; proposed "Share Our Wealth" — capping personal fortunes and redistributing money to every family |
| Father Coughlin | Catholic priest with a radio audience of 40 million; initially supported FDR but turned against him, calling the New Deal communist |
| Dr Francis Townsend | Campaigned for a $200/month pension for all over-60s |
- In 1937, FDR tried to add six extra judges to the Supreme Court to get a sympathetic majority (the "court-packing" plan). This was seen as an attack on the independence of the judiciary and was defeated in Congress, damaging Roosevelt's reputation.
Did the New Deal Work?
Successes:
- Unemployment fell from 13 million (1933) to 7.7 million (1937)
- Bank failures stopped; confidence was restored
- Millions received relief, jobs, and hope
- Major infrastructure was built (roads, dams, schools, airports)
- Social Security created a permanent safety net
- Workers' rights were strengthened
Limitations:
- Unemployment never fell below 7 million until WWII
- When Roosevelt cut spending in 1937, unemployment rose again (the "Roosevelt Recession")
- African Americans continued to face discrimination — many New Deal programmes excluded them or paid them less. Roosevelt never passed anti-lynching legislation for fear of losing Southern Democrats' support
- Women were largely excluded from CCC and other job programmes
- It was ultimately World War Two (from 1941), not the New Deal, that ended the Depression by creating full employment
Key Exam Points
- Be able to explain what the alphabet agencies (CCC, TVA, WPA, etc.) did and evaluate their effectiveness.
- The New Deal is a key topic for evaluation questions — was it a success or a failure? The best answers discuss both sides with specific evidence.