In his inaugural address, FDR promised to act swiftly in order to help the nation face the dark realities of the moment. Upon taking office, FDR wasted no time in implementing his plan for economic recovery, which would come to be known as the New Deal. When we talk of the New Deal we often link it to the 3 Rs ( Relief, Reform & Recovery).
The Great Depression caused widespread unemployment and poverty, so FDR's first priority was to provide relief to those in need. He implemented various programs, such as the Civilian Conservation Corps and the Federal Emergency Relief Administration, which aimed to create jobs and provide financial assistance to those struggling the most.
FDR's background as a lawyer and his understanding of economics also informed his approach to tackling the Great Depression. He believed in the power of government intervention to stimulate economic growth and create stability. To this end, he implemented a series of reforms and regulations that aimed to prevent another economic collapse in the future. One of the most significant pieces of legislation passed during this time was the Glass-Steagall Act, which separated commercial and investment banking and aimed to prevent another stock market crash.
First and foremost, FDR aimed to provide immediate relief to those suffering the most from the effects of the Great Depression. His administration implemented a range of programs designed to alleviate poverty and unemployment. He believed people needed a help out NOT a handout. He knew from his own diagnosis with Polio, that through no fault of your own, something can happen and completely turn your life upside down. One of the most well-known initiatives was the Civilian Conservation Corps (CCC), which provided jobs to young, unemployed men in conservation and environmental projects. This not only provided employment opportunities but also helped to preserve and restore America's natural resources.
I want to spend a considerable amount of time on the CCC. I think it’s one of the lesser talked about New Deal programs. It was also one of the New Deal Programs that FDR was most proud of. Today we are joined by Neil Maher, a history professor at NJIT and author. He’s written multiple books but his book, Nature's New Deal: The Civilian Conservation Corps and the Roots of the American Environmental Movement is the focus of our discussion today.
In terms of New Deal goals, FDR sought to stimulate economic recovery by jumpstarting the nation's stagnant economy. To achieve this, he implemented a series of measures aimed at promoting business growth and creating jobs. One of the key programs in this regard was the Works Progress Administration (WPA). This program provided employment for millions of Americans through public works projects such as the construction of roads, bridges, and public buildings. These projects not only put people back to work but also helped to improve the country's infrastructure.
FDR also aimed to institute long-term reforms that would prevent future economic crises and provide a safety net for all Americans. He recognized the need for financial regulations to prevent the excesses of Wall Street from causing another economic collapse. To address this, FDR implemented the Securities and Exchange Commission (SEC) to regulate the stock market and restore confidence in the financial system. Additionally, he introduced the Social Security Act, which created a social insurance program to provide retirement benefits, unemployment insurance, and assistance for those with disabilities.
The New Deal also dealt with the banking crises. The FDIC was created in 1933. Its purpose was clear and simple: to instill stability and confidence in the banking system by providing insurance for depositors’ funds. The assurance that you would get your money encouraged Americans to once again deposit their money into a bank account. As the value of bank deposits increased over time, the coverage the FDIC provided was increased. In 1934, it went up from $2500 to $5000 per account. During the financial crisis of 2008, the insurance coverage increased from $100,000 to $250,000 per account.
The SSA was founded in 1935 and it has evolved over time. In 1939, the program was expanded to include survivor benefits. It provided assistance to the survivors of a deceased worker’s dependents. In 1956, it was amended to include disability benefits. Individuals who are unable to work due to physical or mental impairments. In 1965, the establishment of medicare and Medicaid helped to provide health care coverage to the elderly and low income individuals.
Another key program of the New Deal was the Tennessee Valley Authority (TVA), which aimed to develop the resources of the Tennessee Valley region. The TVA focused on improving navigation of rivers, controlling floods, and providing electricity to rural areas. By building dams and hydroelectric power plants, the TVA created jobs, improved infrastructure, and provided affordable electricity to millions of Americans.
Another program I want to discuss is the National Industrial Recovery Act (NIRA), which sought to promote industrial recovery and stabilize wages and prices. Under the NIRA, industries were encouraged to establish codes of fair competition, which set standards for wages, working conditions, and production. The NIRA also created the Public Works Administration (PWA), which funded the construction of public infrastructure projects, such as schools, hospitals, and highways.
To address the high unemployment rate, FDR established the Works Progress Administration (WPA), which provided jobs for millions of Americans. The WPA employed workers in a variety of sectors, including construction, arts, and education. Through the WPA, important infrastructure projects were completed, public art was commissioned, and writers and historians were employed to document and preserve America's cultural heritage.
The New Deal also prioritized the agricultural sector, as farmers were particularly hard-hit by the Great Depression. The Agricultural Adjustment Act (AAA) aimed to stabilize crop prices and increase farmers' income. Under the AAA, farmers were paid to reduce production and destroy excess crops and livestock. This helped to increase agricultural prices and provide financial relief to struggling farmers.
The New Deal, while lauded for its boldness and ambition, was not without its critics and controversies. Many argued that the government intervention advocated by FDR went against the principles of individualism and free market capitalism. They believed that the New Deal represented an overreach of government power and threatened the foundations of American democracy.
Critics argued that the New Deal created a dependency on government assistance and stifled individual initiative. They believed that the programs and policies of the New Deal, such as the Works Progress Administration and the Social Security Act, undermined the work ethic and discouraged personal responsibility. These critics saw the New Deal as a step towards socialism and warned of the dangers of an all-powerful government.
On the other end of the political spectrum, critics on the left argued that the New Deal did not go far enough in addressing systemic inequalities and failed to provide adequate relief to those in need. They believed that FDR should have implemented more radical reforms, such as nationalizing industries and redistributing wealth. These critics saw the New Deal as a missed opportunity to create a more equitable society.
There were also controversies surrounding specific New Deal programs. The Agricultural Adjustment Act, for example, was criticized for benefiting large landowners at the expense of small farmers and sharecroppers. The program paid farmers to reduce production and destroy crops, leading to higher prices but also exacerbating the plight of those who relied on agriculture for their livelihoods.
The Supreme Court also played a role in the criticism and controversy surrounding the New Deal. In a series of rulings, the Court declared some of FDR's programs unconstitutional, arguing that they exceeded the scope of federal power. FDR responded by proposing what is more commonly known as the "court-packing" plan. If you listened to our discussion on FDR’s Presidency we talked about how FDR was looking to increase the numbers of Justices on The Supreme Court. FDR hoped he would be able to appoint additional Supreme Court justices who would hopefully be sympathetic to his policies. This move was widely criticized as an attempt to undermine the separation of powers and manipulate the judiciary for political gain. He was not allowed to increase the number of Justices but he was able to appoint new Justices through natural attrition.
Despite the criticism and controversy, the New Deal had a profound and lasting impact on American society. It laid the groundwork for a more active role of the federal government in the economy and established important social safety net programs that still exist today. The New Deal also transformed the relationship between the government and the American people, fostering a sense of trust and reliance on government assistance during times of crisis.
