Was the New Deal a Success?

Aspect 1: Attitudes ND restored Americans’ faith in gov’t ND huge gov’t program. Not possible before FDR. Set tone for future gov’t policies to help ND handled billions $$$ w/o corruption. Harold Hopkins distributed $10 Billion yet never earned more that $15,000/year. Sec. Interior Harold Ickes tapped employee phones to ensure no corruption. Ickes also employed black Americans, campaigned against anti-Semitism & supported Native American causes ND divided USA. FDR & advisors called Communists, blamed for undermining American values. Ickes & Hopkins accused of being anti-business for supporting unions ND undermined local gov’t

ND restored Americans’ faith in gov’t

ND huge gov’t program. Not possible before FDR. Set tone for future gov’t policies to help

ND handled billions $$$ w/o corruption. Harold Hopkins distributed $10 Billion yet never earned more that $15,000/year. Sec. Interior Harold Ickes tapped employee phones to ensure no corruption. Ickes also employed black Americans, campaigned against anti-Semitism & supported Native American causes

ND divided USA. FDR & advisors called Communists, blamed for undermining American values. Ickes & Hopkins accused of being anti-business for supporting unions

ND undermined local gov’t

Aspect 2: Industrial Workers NRA & 2 nd ND strengthened labor unions against industrial giants FDR’s gov’t generally sided w/ unions & pressured companies to negotiate w/ them Some labor unions combined to form Committee for Industrial Organization (CIO) in 1935. This union was large enough to negotiate w/ industrial giants Union of Automobile Workers (UAW) was recognized by the two most anti-union corporations: General Motors (after major sit-in strike in 1936) & Ford (after ballot in 1941) Big business remained immensely powerful in the USA despite being challenged by the gov’t Unions were treated w/ suspicion by employers (fear on Socialism or worse … Communism!) Many strikes broken up by brutal violence in the 1930s (Ford was among the worst using this tactic) Companies such as Ford, Chrysler & Republic Steel employed their own thugs or controlled local police forces

NRA & 2 nd ND strengthened labor unions against industrial giants

FDR’s gov’t generally sided w/ unions & pressured companies to negotiate w/ them

Some labor unions combined to form Committee for Industrial Organization (CIO) in 1935. This union was large enough to negotiate w/ industrial giants

Union of Automobile Workers (UAW) was recognized by the two most anti-union corporations: General Motors (after major sit-in strike in 1936) & Ford (after ballot in 1941)

Big business remained immensely powerful in the USA despite being challenged by the gov’t

Unions were treated w/ suspicion by employers (fear on Socialism or worse … Communism!)

Many strikes broken up by brutal violence in the 1930s (Ford was among the worst using this tactic)

Companies such as Ford, Chrysler & Republic Steel employed their own thugs or controlled local police forces

Aspect 3: Unemployment & the Economy ND created millions of jobs Stabilized American banking system Cut # of business failures TVA & other programs brought work & improved quality of life to deprived parts of USA ND projects provided USA w/ valuable infrastructure such as schools, roads, power stations ND never solved underlying economic problems US economy took longer to recover than most of Europe Confidence remained low – throughout 1930s Americans spent & invested only 75% of what they had before 1929 When FDR cut ND budget in 1937 USA slid back into recession There were still 6 million unemployed in 1941 Only the USA’s entry into WWII brought an end to unemployment

ND created millions of jobs

Stabilized American banking system

Cut # of business failures

TVA & other programs brought work & improved quality of life to deprived parts of USA

ND projects provided USA w/ valuable infrastructure such as schools, roads, power stations

ND never solved underlying economic problems

US economy took longer to recover than most of Europe

Confidence remained low – throughout 1930s Americans spent & invested only 75% of what they had before 1929

When FDR cut ND budget in 1937 USA slid back into recession

There were still 6 million unemployed in 1941

Only the USA’s entry into WWII brought an end to unemployment

Aspect 3: Unemployment & the Economy ND Starts 2 nd ND FDR cuts ND budget War breaks out in Europe USA enters war Dec ‘41

Fin