“This nation asks for action, and action now.  Our greatest primary task is to put people to work.  This is no unsolvable problem if we face it wisely and courageously.  It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a war, but at the same time, through this employment, accomplishing greatly needed projects to stimulate and reorganize the use of our natural resources.”

—FDR, First Inaugural Address, March 4, 1933

Discussion:  Following the Great War, as the only major western nation not devastated by that conflict, Americans felt pretty good about themselves.  The continued economic growth, political conservatism and general absence of concerns over foreign affairs led Americans  to think of  themselves as "having it made."  In the 1920s there were deep divisions in the country despite the "roaring" atmosphere brought about by bathtub gin, speakeasies, flappers, women voting, jazz, sports and all the rest.  Then at the end of that self-satisfied, raucous and somewhat grumpy decade, when the expectations of many people knew no bounds, the market crashed and the Depression hit.  Some Americans never got over the shock.

Consider the following ideas.

  • Imagine what it was like to go from the consumer-oriented, free spirited "roaring twenties" to the depths of the Great Depression.  Review Caroline Bird’s essay on poverty and try to imagine what it must have been like to live during the Depression.  Look carefully at FDR’s inaugu-ral and think how you would have viewed him.  This is an era your grandparents and perhaps even parents may remember.  If you're in touch, ask them about what it was like being alive during the Depression.
  • Following the Gilded Age, America’s economy continued to boom and prosper off and on until the Depression hit in the early 1930s.  Was our economy really that good, or were we just riding a wave of good fortune based on our virtually unlimited resources of gold, silver, land, timber, etc.?  Was America's contribution to world economic progress more than just an accident?  Were Americans able to "make things happen" in economic terms?
  • How about government?  Did the American government control business well?  Did it help?  Hurt?  Do political decisions really affect the economy?  How about the New Deal?  Did it do much good that wouldn't have occurred anyway if the government had stayed out?
  • FDR learned about government during World War I as Assistant Secretary of the Navy.  He saw the national economy mobilized for war in 1918-19.  What parallels did he see between that experience and fighting depression?  Where can you find evidence of that?
  • Evaluate the American political system with reference to the economic conditions for the average American.  How well has our government succeeded in securing economic benefits for all Americans?  How has government failed to give people what they need to get ahead?  Is it really the business of govern-ment to see to it that people succeed economically? To what degree or level? Do we really have a laissez faire system?  Do we really want one?  Wouldn't we all be better off if the government simply kept its nose out of business?  What evidence is there in our past that we can't afford to do that?
  • How should we deal with the very wealthy?  How much is enough for any person?  Can capitalism work when a very few have enormous wealth and others struggle just to get along?
  • How about Huey Long and his Share-Our-Wealth program—should we rethink that idea?  Does it relate to current economic thinking?
  • When Alistair Cooke got to the end of his "America" series on PBS a few years ago, he summed up American society in one quota-tion from a someone who had "seen it all"—a man who had shined shoes in New York’s grand Central Station for many years.  He said:  "There is no free lunch!"   What do you think?  Is that the way it is with us?

SOURCES ON THE GREAT DEPRESSION & THE NEW DEAL

Highlights of the New Deal

THE HUNDRED DAYS, 9 March - 16 June 1933

Right after Roosevelt's inauguration on March 4, 1933, a special session of Congress met to deal with the banking crisis.  FDR held them in session to meet with other crises as well.  FDR's goals included relief and recovery.   These three months constituted one of the most extraordinary outpourings of legislation in the history of Congress.

9 March EMERGENCY BANKING ACT.  Passed and approved in 1 day.
20 March ECONOMY ACT.  Reduced government salaries 15%, etc.
22 March BEER-WINE REVENUE ACT.  Beer taxed to enhance federal revenue.
31 March  CIVILIAN CONSERVATION CORPS REFORESTATION RELIEF ACT.
19 April U.S. officially abandons gold standard.
12 May    FEDERAL EMERGENCY RELIEF ACT.  Direct relief to states.
12 May   AGRICULTURAL ADJUSTMENT ACT; EMERGENCY FARM MORTGAGE ACT. Every major device applicable to farm relief.
18 May TENNESSEE VALLEY AUTHORITY created.
27 May  FEDERAL SECURITIES ACT.  Full disclosure of new securities.
5 June GOLD REPEAL JOINT RESOLUTION.  Makes paper legal tender.
6  June  NATIONAL EMPLOYMENT SYSTEM ACT.  U.S. Employment Service.
13 June  HOME OWNERS REFINANCING ACT.  HOLC refinances mortgages, etc.
16 June BANKING ACT OF 1933 (GLASS-STEAGALL ACT)  Creates FDIC.
16 June    FARM CREDIT ACT.  Refinancing based on credits for production.
16 June EMERGENCY RAILROAD TRANSPORTATION ACT.  Efficiency.
16 June THE NATIONAL INDUSTRIAL RECOVERY ACT.  Created NRA. Plant operation restrictions, minimum wages $12-13 per week, limited child labor; the NIRA limited week to 40 hours. etc.  Blue Eagle--"Signing the pledge."  700 industries codified. 
Created PUBLIC WORKS ADMINISTRATION.
END OF THE 100 DAYS.

Additional New Deal Measures

  • COMMODITY CREDIT CORPORATION.
  • CIVIL WORKS ADMINISTRATION.  Outgrowth of FERA.
  • GOLD RESERVE ACT OF 1934.
  • FARM MORTGAGE REFINANCING ACT.
  • EXPORT-IMPORT BANK.  Encourage overseas commerce.
  • CIVIL WORKS EMERGENCY RELIEF ACT.
  • SECURITIES EXCHANGE ACT.
  • COMMUNICATIONS ACT creates FCC.
  • NATIONAL HOUSING ACT establishes FHA.
  • EMERGENCY RELIEF APPROPRIATION ACT.  Established WPA.
  • RURAL ELECTRIFICATION ADMINISTRATION (REA) established.
  • NATIONAL LABOR RELATIONS ACT creates NLRB
  • SOCIAL SECURITY ACT.
  • REVENUE ACT OF 1935 (WEALTH TAX ACT).
Most historians believe that the New Deal measures, however bold and innovative, did not end the Depression, which lingered on through the 1930s.  It was not until the government spent huge amounts of money financing World War II that the last lingering effects of the Depression disappeared and created unprecedented prosperity for millions of Americans.  But regardless of its successes or failures, Franklin Roosevelt's New Deal Administration changed the nature of American government permanently.

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Updated February 14, 2004 2:59 PM