USA 1919 - 1941

The American Dream

The Roaring Twenties

The Boom

Ku Klux Klan

Prohibition

Isolationism 1

Isolationism 2 - more depth

Henry Ford

The Wall Street Crash

Causes of the depression

The New Deal

The New Deal: A Revision Guide.

The New Deal (so called after the 1932 nomination speech of F.D.R.) only started once the “Lame-Duck” months had ended.

It had two main phases:

· The First 100 days- March/June 1933. This had to rescue the US economy from over 4000 bank collapses in January of that year, amongst many problems.

· The Second New Deal- laws passed after 1935.

The first series solved immediate emergencies, tried to relieve poverty and aid immediate recovery. The second series made longer lasting change (e.g. The Wagner Act of 1935).

New Deal Opposition

Two sorts really:
1. Those who thought it did not go far enough.
2. Those who thought it went too far.

Businessmen

Thought the new laws went too far. Relief and welfare went too far and cost too much. They also undermined traditional American values. (Rugged Individualism carried on!) They wanted less government intervention, a hands off approach.

Huey Long

Thought the laws did not go far enough. He wanted to share all wealth out and use public money to help the poor even more. He was also corrupt, a thug and rigged elections. He was governor of Louisiana, and then its` Senator.

Father Charles Coughlin

Said that Roosevelt was “anti-God”. Wanted to provide more work and fairer wages for everyone. In the 1936 Presidential elections he joined forces with Frances Townsend who said the old were not being looked after properly. He wanted to give them money every month.
Coughlin, Townsend and Gerald Smith joined forces to fight Roosevelt in the 1936 election, Long having been replaced by Smith after the killing of Long in 1935. They had millions of supporters.

Trade Unions

After the 1920s they wanted far quicker reform than FDR could give.

Republicans

Although defeated in the 1932 election, 15.7 million people had voted for them. They loathed the New Deal.

Supreme Court

In 1935 it ruled much of the New Deal legislation unconstitutional. It said that Roosevelt only had the right to pass national laws for all states, not pass laws that the state bodies should be responsible for.

WHAT SHOULD FDR DO?

Start again.The Wagner Act of 1935 protected workers rights to join Unions and the Social Security Act of 1935 set up a National Pensions system, unemployment insurance and help for the disabled and very young.

RESULT: ROOSEVELT HAD HUGE SUPPORT AFTER THE 1936 ELECTION VICTORY. ONLY TWO STATES, VERMONT AND MAINE VOTED AGAINST HIM. 27 MILLION VOTES FOR, 16 MILLION AGAINST.

A Summary of the New Deal

Income did improve, but only in 1940 did it reach the levels of the Boom year of 1927. !933 to 1937 saw a large fall in unemployment. Millions found work in the new public works organisations thanks to high public spending. When FDR cut this spending in 1937, the numbers rose again. It was only really WW2 that solved the US jobs problem.
The minimum wage laws and the Alphabet Agencies helped to alleviate but did not remove poverty. Indeed the survival of the depression until the war ensured opposition to the New Deal continued. The poorest third of the US remained no different. People often found work for public agencies, but not in the private sector. Despite the Wagner Act unions still fought over job security. Old Age Pensions, benefits still caused problems. For Blacks and women, especially in the south, little changed. The Farmers received a great deal of help, perhaps because they could shout the loudest.

EXAMPLES/ KEY CONCEPTS

· THE ALPHABET AGENCIES Set up in the first 100 days, with the aim of solving employment problems immediately.

· Trading with the Enemy Act. This allowed for a President to seize broad Executive powers in the time of a National Emergency, such as a war. It had been passed in 1917 during WW1. It had not been cancelled in 1918, so was still effective although unused. FDR felt that in order to defeat the enemy of depression he had to have the power to pass laws with out the consent of Congress. This law allowed him to do that.

· Fireside Chats Given on Radio by FDR 1933-1945 to explain his policies. They were likened to chats as if FDR was in peoples homes. The first, in 1933, was to stop the Bank crisis. Its novelty value was greatly used by FDR to get his message across. He was the first President to do this.