3.1 The New Deal and the Economy Flashcards
The New Deal and umemployment
-no year after 1933 did unemployment fall below 14% of the workforce
-9.5 million people were still out of work in 1939
-personal income in 1939 was $72.0 billion compared to $85.5 billion in 1929, HOWEVER the population did rise by 9 million
-Roosevelt Recession- industrial production fell 33% and nearly 4 million people lost their jobs
The New Deal was a failure in terms of of economic growth but it did prevent economic failure and led the foundations for rapid economic growth in the Second World War
The New Deal and national infrastructure
-new deal had a big impact on infrastructure
-workers of the WPA built 2500 hospitals, 5,900 schools, 350 airports, 570,000 miles of road and 8,000 parks
-roads made national parks more accessible, i.e the road system of Yellowstone was created through the CCC and is still used today
-The TVA transformed an area with soil erosion and economic under-development
-The dams provided hydro-electric power for both domestic and industrial use
-The provision of electricity transformed rural life across the USA
EVALUATION
By 1940, the New Deal provided millions of jobs and transformed the road network, the schools system and hospital provision. Rural areas went through a revolution in energy provision and regions such as the Upper South had major boosts to their economies
Women and the New Deal (Eleanor Roosevelt)
-First Lady of FDR
-Up to 1933, the role was ceremonial and they just supported their husbands during social functions and trips
After 1933, she played an important role in deciding policy. Her intelligence, powerful personally and social and political links gave her influence
-She regularly advised her husband on aspects of federal policy. She became an unofficial member of FDR’s advisory team and she championed the position of women and ethnic minorities
During the New Deal, she held 348 conferences explaining to the press what she felt ought to be done. She highlighted the plight of young people faced with extreme poverty and lack of opportunity. She encouraged Americans to write to her. She received over 300,000 letters and used them to influence the president’s actions and policies
Women and the New Deal (Frances Perkins)
-In 1933, she became the first woman cabinet taking on the role of Secretary of Labour until 1945
-Had a large role in creating the CCC
-She crafted the Social Security Act, which was seen as the most important act that came from the New Deal
-She also helped pass a federal minimum wage for workers for the first time, the Fair Labour Standards Act 1938
Women and the New Deal (Mary McLeod Bethune)
-Most prominent black American in the New Deal who was FDR’s special advisor on minority affairs in 1935
-She founded her own civil rights organisation, the National Council of Negro Women.
-She campaigned for the rights of black Americans to get the same pay as whites in the federal government although it was on partially successful
The state of the US economy in 1940
-Trade union membership was increasing even though unemployment was rising. There was 8.7 million in trade unions in 1940 which was 25% of the workforce
-The workforce had more protection on pay and conditions than ever before, the Social Security Act helped with this
-Economic power was still in the hands of big corporations. In 1939, the top five businesses controlled 85% of all income generated by business
-High school graduates were increasing in 1940
-Due to increased federal funding, the number of universities and colleges increased
The impact of the New Deal on black Americans
POSITIVE
WPA- Harry Hopkins puts over 1 million black Americans into jobs: teaching etc
FDR promotes African Americans to government positions, for example, William Hattie who was the first black judge
FDR did more for African Americans than any other president
-75% voted for him
NEGATIVE
Unemployment was 50%- twice the rate of whites
Jim Crow laws- segregation was still widespread
The New Deal was discriminatory towards African Americans- white people got the pick of the jobs and had higher wages
Left with jobs that white Americans didn’t want
-Pullman sleeper trains- majority of uniformed porters were African Americans
Stable income- but 1/4 had the best jobs in the community, but the worse on the trains
Cotton drops to 1/3 of the price during the Depression
Built in racist elements to some New Deal policies- NRA allowed lower wages for same jobs
65% were either farmers or domestic servants
-Not helped by the Fair Labour Standards Act or the Social Security Act
The impact of the New Deal on Native Americans
LIFE BEFORE NEW DEAL
Poorest of all Americans
-Polices were based on the Dawes Severalty Act of 1887. This included assimilation (forcing them to blend into American society and adapt their culture) and allotment (old tribal units were broken up and placed on reservations), mostly weren’t farmers and didn’t know how to use the land
-Allotment was a failure particularly those who weren’t farmers by tradition
-Most of the land allocated were unsuitable for productive farming
-138 million acres owned by them by the time of the Act
-90 million was taken off them by 1932
-Department of Inferior confirmed that the Act had been a disaster and the policy of allotment should be reserved, but nothing was done
-The Great Depression made it worse- more difficult to leave the poverty
IMPACT OF NEW DEAL
The Indian Reorganisation Act 1934
-handled by the Bureau of Indian Affairs, no funding and had little priority
-It replaced the Dawes Act and offered radical change
-The first time they tried to preserve their culture
-Native tribes were organised into self-governing bodies with an elected tribal council. They were able to write their own constitutions and have their own legal system, enforced by their own police force
HOWEVER
-75 of the 245 native tribes, including the largest, ‘Navajos’ rejected it. They did not want any government interference
CONCLUSION
Overall, it made little difference to the position of Native Americans within the US economy. Did nothing to help them economically. Didn’t do anything to help them get out of poverty
Impact of the New Deal on Hispanic Americans
-After war in 1846, many were recruited throughout the Southwest as seasonal workers to help in agriculture and were predominantly migrant workers
-After the Depression, many were repatriated. This was an attempt to cut the budget for relief and free up jobs for white Americans. 400,000 were forced to go back, many of them were actually US citizens
-Wages were slashed
-Suffered a similar fate to black Americans when trying to visit restaurants or cinemas- racial discrimination was widespread, even in the public school system
IMPACT
The New Deal excluded most legislation from them, i.e Wagner Act, Fair Labour Standards Act
The New Deal made their lives worse. Fewer farm workers were required after polices
