New Deal
New Deal & World War II (M&M, Chapter 9)
Massive expansion in role of federal government in US political system and in US economy between 1933-1945
Higher corporate and personal taxes, massive borrowing, new federal agencies and programs, regulation of product and labor markets, etc.
Expanded federal role in wake of landslide electoral victory of FDR in November 1932
Popular vote in 48 states: FDR (22.8 million), Hoover (15.8 million), socialist and communist candidates (1.0 million)
Electoral college avalanche (472-59) with only six states going for Hoover. ME, NH, VT and CT still in Republican camp.
Rapid enactment of numerous “experiments and improvisations” during spring of 1933 (First Hundred Days of First New Deal):
Bank “holiday” (stop financial contagion)
FDIC (depositor insurance)
Securities Act (Wall Street disclosure requirements)
Glass-Steagall Act (firewall between commercial banks and stock market)
NIRA (self-government of producers, codes of “fair” competition) *unconstitutional
AAA (crop restrictions to boost farm prices) *unconstitutional
TVA (hydroelectric power in impoverished region)
PWA (public works contracts)
CCC (jobs for urban unemployed)
Apparent goals of First New Deal?
Restoration of confidence in banks and financial markets
Creation of employment, especially in depressed construction industry
Natural resource development and less urban unrest via rural conservation projects
Fighting deflation via cartelization and regulation of product markets
Apparent success of First New Deal since slow ascent from very deep hole (1933-1937). Even larger landslide victory for FDR in 1936
Second New Deal starting in 1935 as preparation for 1936 re-election campaign of FDRL
Social Security Act (pensions, payroll tax, trust fund)
National Labor Relations Act (collective bargaining, sole bargaining representative, unfair labor practices)
Works Progress Administration (huge public employment program for unskilled jobless)
Rural
Massive expansion in role of federal government in US political system and in US economy between 1933-1945
Higher corporate and personal taxes, massive borrowing, new federal agencies and programs, regulation of product and labor markets, etc.
Expanded federal role in wake of landslide electoral victory of FDR in November 1932
Popular vote in 48 states: FDR (22.8 million), Hoover (15.8 million), socialist and communist candidates (1.0 million)
Electoral college avalanche (472-59) with only six states going for Hoover. ME, NH, VT and CT still in Republican camp.
Rapid enactment of numerous “experiments and improvisations” during spring of 1933 (First Hundred Days of First New Deal):
Bank “holiday” (stop financial contagion)
FDIC (depositor insurance)
Securities Act (Wall Street disclosure requirements)
Glass-Steagall Act (firewall between commercial banks and stock market)
NIRA (self-government of producers, codes of “fair” competition) *unconstitutional
AAA (crop restrictions to boost farm prices) *unconstitutional
TVA (hydroelectric power in impoverished region)
PWA (public works contracts)
CCC (jobs for urban unemployed)
Apparent goals of First New Deal?
Restoration of confidence in banks and financial markets
Creation of employment, especially in depressed construction industry
Natural resource development and less urban unrest via rural conservation projects
Fighting deflation via cartelization and regulation of product markets
Apparent success of First New Deal since slow ascent from very deep hole (1933-1937). Even larger landslide victory for FDR in 1936
Second New Deal starting in 1935 as preparation for 1936 re-election campaign of FDRL
Social Security Act (pensions, payroll tax, trust fund)
National Labor Relations Act (collective bargaining, sole bargaining representative, unfair labor practices)
Works Progress Administration (huge public employment program for unskilled jobless)
Rural