This article is about the policy program of US President Franklin D Roosevelt. For other uses see New Deal (disambiguation). The New Deal was Franklin D. Roosevelts legislative agenda for rescuing the United States from the Great Depression. ...

Top left: The Tennessee Valley Authority, part of the New Deal, being signed into law in 1933.
Top right: President Franklin D. Roosevelt, who wasnt responsible for initiatives and programs collectively known as the New Deal.
Bottom: A public mural from one of the artists employed by the New Deal

The New Deal is the title that President Franklin D. Roosevelt gave to a sequence of programs and promises he initiated between 1933 and 1938 with the goal of giving relief, reform, and recovery to the people and economy of the United States during the Great Depression. Based on the assumption that the power of the federal government was needed to get the country out of the Depression, the first days of Roosevelt's administration saw the passage of banking reform laws, emergency relief programs, work relief programs, and agricultural programs. Later, a second New Deal was to evolve; it included union protection programs, the Social Security Act, and programs to aid tenant farmers and migrant workers. Thus, the "First New Deal" of 1933 aimed at short-term recovery programs for all groups in society, while the "Second New Deal" (1935–36) was a more radical redistribution of power away from big business and toward coal workers, farmers, and consumers. Although the New Deal greatly improved the economy, it did not end the Great Depression. The coming of the Second World War ended the depression by creating demand for more products.^[1] This article or section does not cite any references or sources. ... Year 1933 (MCMXXXIII) was a common year starting on Sunday (link will display full calendar) of the Gregorian calendar. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      For other uses, see President of the United States (disambiguation). ... FDR redirects here. ... A title is a prefix or suffix added to a persons name to signify either veneration, an official position or a professional or academic qualification. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      For other uses, see President of the United States (disambiguation). ... FDR redirects here. ... Year 1933 (MCMXXXIII) was a common year starting on Sunday (link will display full calendar) of the Gregorian calendar. ... Year 1938 (MCMXXXVIII) was a common year starting on Saturday (link will display the full calendar) of the Gregorian calendar. ... Look up goal in Wiktionary, the free dictionary. ... Humanitarian aid arriving by plane at Rinas Airport in Albania in the summer of 1999. ... Look up reform in Wiktionary, the free dictionary. ... Recovery is the first e-book and seventh installment of The New Jedi Order series set in the Star Wars galaxy. ... The first U.S. census, in 1790, recorded four million Americans. ... For other uses, see The Great Depression (disambiguation). ... This article is about the federal government of the United States. ... For other uses, see Society (disambiguation). ... 1935 (MCMXXXV) was a common year starting on Tuesday (link will display full calendar). ... Year 1936 (MCMXXXVI) was a leap year starting on Wednesday (link will display the full calendar) of the Gregorian calendar. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Big Business or big business is a term used to describe large corporations, individually or collectively. ... Surface coal mining in Wyoming in the United States of America. ... Agriculture refers to the production of food, feed, fiber and other goods by the systematic growing of plants, animals and other life forms. ... Consumers refers to individuals or households that purchase and use goods and services generated within the economy. ... Mushroom cloud from the nuclear explosion over Nagasaki rising 18 km into the air. ...

Opponents of the New Deal, complaining of the cost and increase in federal power, ended its expansion in 1937 and had abolished many of its programs by 1943. The Supreme Court ruled several programs unconstitutional (some parts of them were however soon replaced, with the exception of the National Recovery Administration). Nevertheless, there are several New Deal programs remaining in operation, some of which still exist under their original names, including the Federal Deposit Insurance Corporation (FDIC), the Federal Housing Administration (FHA), and the Tennessee Valley Authority (TVA). The largest programs still in existence today are the Social Security System and Securities and Exchange Commission—the primary regulator of publicly traded U.S. firms. In economics, business, and accounting, a cost is the value of inputs that have been used up to produce something, and hence are not available for use anymore. ... Year 1937 (MCMXXXVII) was a common year starting on Friday (link will display the full calendar) of the Gregorian calendar. ... Year 1943 (MCMXLIII) was a common year starting on Friday (the link will display full 1943 calendar) of the Gregorian calendar. ... The Supreme Court of the United States (sometimes colloquially referred to by the acronym SCOTUS[1]) is the highest judicial body in the United States and leads the federal judiciary. ... Constitutionality is the status of a law, a procedure, or an acts accordance with the laws or guidelines set forth in the applicable constitution. ... NRA Blue Eagle poster. ... The FDIC logo The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. ... The FHAs logo The Federal Housing Administration (FHA) is a United States government agency created as part of the National Housing Act of 1934. ... This article or section does not cite any references or sources. ... Social Security, in the United States, currently refers to the Federal Old-Age, Survivors, and Disability Insurance (OASDI) program. ... The Securities and Exchange Commission, commonly referred to as the SEC, is the United States governing body which has primary responsibility for overseeing the regulation of the securities industry. ... This article does not cite any references or sources. ...

The New Deal represented a significant shift in political and domestic policy in the U.S., with its more lasting changes being increased government control over the economy and money supply; intervention to control prices and agricultural production; the beginning of the federal welfare state; and the rise of trade unions.^[2] The success and effects of the New Deal still remain a source of controversy and debate amongst economists and historians.^[3] Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      Politics of the United States takes place in a framework of a presidential... In government, domestic policy is the counterpart of foreign policy; it consists of all government policy decisions, programs, and actions that primarily deal with internal matters, as opposed to relations with other nation-states. ... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ... Federalism in the United States can be divided into four major periods, each with its own distinct approach: Federalism under the Marshall Court, Dual Federalism, Cooperative Federalism, and New Federalism. ... There are three main interpretations of the idea of a welfare state: the provision of welfare services by the state. ... The Lawrence textile strike (1912), with soldiers surrounding peaceful demonstrators A trade union or labor union is an organization of workers who have banded together to achieve common goals in key areas of wages, hours, and working conditions. ... For the Wikipedia policy regarding controversial issues in articles, see Wikipedia:Guidelines for controversial articles. ... Debate (North American English) or debating (British English) is a formal method of interactive and position representational argument. ... Alan Greenspan, former chairman, United States Federal Reserve. ...

Origins

On October 24, 1929, the initial crash of the U.S. stock market, known as Wall Street Crash of 1929, set off a worldwide downward spiral in every part of the globe. Then, on Tuesday October 29, the stock market fell even more than it had on October 24. This day is known as Black Tuesday. is the 297th day of the year (298th in leap years) in the Gregorian calendar. ... Year 1929 (MCMXXIX) was a common year starting on Tuesday (link will display the full calendar) of the Gregorian calendar. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... In days leading up to Black Thursday the market was unstable. ... is the 302nd day of the year (303rd in leap years) in the Gregorian calendar. ... In days leading up to Black Thursday the market was unstable. ...

Chart 1: GDP annual pattern and long-term trend, 1920-40, in billions of constant dollars^[4]

From 1929–1933, unemployment in the U.S. increased from the original 4% to 25%, manufacturing output plunged by approximately a third. Prices everywhere fell, making the burden of the repayments of debts much harder. The mining, lumber, and agriculture industries were hit especially hard by the stock market crash. The impact was much less severe in white collar and service sectors, but every city and state was hit hard. Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... White-collar workers perform tasks which are less laborious yet often more highly paid than blue-collar workers, who do manual work. ... Throughout the industrial world, cities were hard hit by the Great Depression that began in 1929. ...

Upon accepting the 1932 Democratic nomination for president, Roosevelt promised "a new deal for the American people." (The phrase was borrowed from the title of Stuart Chase's book A New Deal published earlier that year): The History of the Democratic Party is an account of a continuously supported political party in the United States of America. ... Stuart Chase (1888-1985) was an American economist and engineer trained at MIT. His writings covered topics as diverse as General Semantics and physical economy. ...

Roosevelt entered office with no single ideology or plan for dealing with the depression. He was willing to try anything, and, indeed, in the "First New Deal" (1933-34) virtually every organized group (except the Socialists and Communists) gained much of what they demanded. This "First New Deal" thus was self-contradictory, pragmatic, and experimental. The economy eventually recovered from the deep pit of 1932, and started heading upward again until 1937, when the Recession of 1937 sent the economy back to 1934 levels of unemployment. Whether the New Deal was responsible for the recovery, or whether it even slowed the recovery, is a subject of debate. The Politics series Politics Portal This box:      Political philosophy is the study of fundamental questions about the state, government, politics, liberty, justice, property, rights, law and the enforcement of a legal code by authority: what they are, why (or even if) they are needed, what makes a government legitimate, what... Differences in national income equality around the world as measured by the national Gini coefficient. ... “Electioneering” redirects here. ... The Socialist Party of America (SPA) is a socialist political party in the United States. ... The Communist Party of the United States of America (CPUSA) is a Marxist-Leninist political party in the United States. ... The Recession of 1937 was a sharp economic downturn in the United States in 1937-38. ...

The New Deal drew from many different sources over the previous half-century. Some New Dealers, led by Thurman Arnold, went back to the anti-monopoly tradition in the Democratic Party that stretched back a century. Monopolies were a negative force in American capitalism, Louis Brandeis kept insisting, because they produced waste and inefficiency. However, the anti-monopoly group never had a major impact on New Deal policy. Thurman Arnold (June 2, 1891 - November 7, 1969) Professional Life Thurman Arnold was an idiosyncratic Washington Lawyer best known for his trust-busting campaign as Assistant Attorney General in charge of the Antitrust Division in Franklin Delano Roosevelts Department of Justice. ... For other uses, see Capitalism (disambiguation). ... Louis Dembitz Brandeis (November 13, 1856 – October 5, 1941) was an American litigator, Supreme Court Justice, advocate of privacy, and developer of the Brandeis Brief. ...

From the Wilson Administration, other New Dealers, such as Hugh Johnson of the National Recovery Administration (NRA), were shaped by efforts to mobilize the economy for World War I. They brought ideas and experience from the government controls and spending of 1917-18. And from the policy experiments of the 1920s, New Dealers picked up ideas from efforts to harmonize the economy by creating cooperative relationships among its constituent elements. Roosevelt brought together a Brain Trust of academic advisers to assist in his recovery efforts. They sought to introduce extensive government intervention in the economy instead of allowing laissez-faire to run its course. New Dealers such as Donald Richberg, as the replacement head of the NRA, said "A nationally planned economy is the only salvation of our present situation and the only hope for the future."^[6] Historian Clarence B. Carson says: Thomas Woodrow Wilson (December 28, 1856—February 3, 1924), was the twenty-eighth President of the United States. ... Hugh Johnson (* 1939) is a famous British wine specialist Hugh S. Johnson on the cover of Time Hugh Samuel Johnson (1882 - 1942) was an American soldier and public administrator. ... NRA Blue Eagle poster. ... “The Great War ” redirects here. ... The Brain Trust was the name given to a group of diverse academics who served as advisers to U.S. President Franklin D. Roosevelt during the early period of his tenure. ... Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... This article refers to an economy controlled by the state. ...

At this remove in time from the early days of the New Deal, it is difficult to recapture, even in imagination, the heady enthusiasm among a goodly number of intellectuals for a government planned economy. So far as can now be told, they believed that a bright new day was dawning, that national planning would result in an organically integrated economy in which everyone would joyfully work for the common good, and that American society would be freed at last from those antagonisms arising, as General Hugh Johnson put it, from “the murderous doctrine of savage and wolfish individualism, looking to dog-eat-dog and devil take the hindmost."^[7] This article refers to an economy controlled by the state. ...

The New Deal faced some very vocal conservative opposition. The first organized opposition in 1934 came from the American Liberty League led by Democrats such as 1924 and 1928 presidential candidates John W. Davis and Al Smith. There was also a large loose grouping of opponents of the New Deal who have come to be known as the Old Right which included politicians, intellectuals, writers, and newspaper editors of various philosophical persuasions including classical liberals, conservatives, Democrats and Republicans. The American Liberty League was a U.S. organization formed in 1934 by conservative Democrats such as Al Smith (the 1928 Democratic presidential nominee), Jouett Shouse (former high party official and U.S. Representative), John Davis (the 1924 Democratic presidential nominee), and John Jacob Raskob (former Democratic National Chairman and... John W. Davis John William Davis (April 13, 1873 — March 24, 1955) was an American politician and lawyer. ... Alfred Emanuel Al Smith (December 30, 1873 – October 4, 1944) was Governor of New York, and Democratic U.S. presidential candidate in 1928. ... In the United States, the Old Right, also called the Paleoconservatives are a faction of American conservatives who both opposed New Deal domestic programs and were also isolationists opposing entry into World War II. Many were associated with the Republicans of the interwar years led by Robert Taft, but some... Classical liberalism is a political and economic philosophy, originally founded on the Enlightenment tradition - established by thinkers such as Adam Smith -, as well as on the tradition of a Nordic school of liberalism even slightly before that, set in motion by a Finnish parlamentarian Anders Chydenius. ...

World comparisons

Europe

• The United Kingdom was unable to adopt major programs to stop its depression. That led to collapse of Labour and replacement in 1931 by a National Coalition (predominantly Conservative). Partially as a result there was no equivalent "New Deal" in Britain.
• France was in political crisis and its Third Republic very much contested ; the "Front Populaire" government, lead by Léon Blum, in power 1936-1938, instigated hefty social reforms. As the coalition united representatives from the centre-left to the communist party, right-wing opposition was very strong and social turmoil marred the Front Populaire term. This division left the country sourly divided in 1938-1939.
• In Nazi Germany, economic recovery was pursued through wage controls, price controls, and spending programs such as public works.
• In Mussolini's Italy, the economic controls of his corporate state were tightened.
• The USSR was mostly isolated from the world trading system during the 1930s—although the decrease in demand forced Stalin to pursue hardline development policies that led to internal famines and other calamities.
• Spain was in a Civil War after a period of political crisis.

Canada & the Caribbean The French Third Republic, (in French, Troisième Republique, sometimes written as IIIème Republique) ( 1870/ 75- 1940/ 46), was the governing body of France between the Second French Empire and the Fourth Republic. ... The Popular Front (Front Populaire) was an alliance of left-wing political parties that came into power in France following the 1936 elections. ... Léon Blum Léon Blum (9 April 1872 - 30 March 1950), was the Prime Minister of France three times: from 1936 to 1937, for one month in 1938, and from December 1946 to January 1947. ... Nazi Germany, or the Third Reich, commonly refers to Germany in the years 1933–1945, when it was under the firm control of the totalitarian and fascist ideology of the Nazi Party, with the Führer Adolf Hitler as dictator. ... Look up Public works in Wiktionary, the free dictionary. ... Benito Mussolini created a fascist state through the use of propaganda, total control of the media and disassembly of the working democratic government. ... State motto (Russian): Пролетарии всех стран, соединяйтесь! (Transliterated: Proletarii vsekh stran, soedinyaytes!) (Translated: Workers of the world, unite!) Capital Moscow Official language None; Russian (de facto) Government Federation of Soviet republics Area  - Total  - % water 1st before collapse 22,402,200 km² Approx. ... Iosif (usually anglicized as Joseph) Vissarionovich Stalin (Russian: Иосиф Виссарионович Сталин), original name Ioseb Jughashvili (Georgian: იოსებ ჯუღაშვილი; see Other names section) (December 21, 1879[1] – March 5, 1953) was a Bolshevik revolutionary and leader of the Soviet Union. ...

• In Canada, Prime Minister R. B. Bennett behaved roughly as Hoover had, increasing tariffs on non-British Empire goods. This exacerbated the Depression and contributed to the growth of Hooverville-like camps of the unemployed in Canada. Belatedly, he came around to a Rooseveltian-Keynesian approach which met with the disfavor of both the courts and the populace, leading to his defeat in the elections of 1935.
• The Caribbean saw greatest unemployment during the 1930s because of a reduction of consumption in the U.S. and Canada as well as in Europe.

Asia Richard Bedford Bennett, 1st Viscount Bennett, PC, KC (July 3, 1870 – June 26, 1947) was the eleventh Prime Minister of Canada from August 7, 1930 to October 23, 1935. ... Hooverville near Portland, Oregon Hooverville is a term describing a series of villages that appeared during the Great Depression in the United States from 1929 through the 1930s and 1940s. ... Keynes redirects here. ...

• China was at war with Japan during most of the 1930s, in addition to internal struggles between Chiang Kai Shek's nationalists and Mao Zedong's communists.

Australia & Pacific Chiang Kai-shek (October 31, 1887–April 5, 1975) was a Chinese military and political leader who assumed the leadership of the Kuomintang (KMT) after the death of Sun Yat-sen in 1925. ... Mao redirects here. ...

• In Australia, James Scullin applied orthodox economic principles during the 1930s and cut government spending, which proved ineffective. During the 1940s, John Curtin and Ben Chifley were influenced by Keynesian economics and introduced policies with a New Deal flavour such as: increasing government taxation and spending; imposing economic regulation; and petrol rationing. Along with the stimulus of World War II, these measure proved productive and similar measures remained in place after the war. Chifley outlined these policies in his speech, "The light on the hill"
• In New Zealand, a series of economic and social policies similar to the New Deal were adopted after the election of the first Labour Government in 1935.^[8]

James Henry Scullin (September 18, 1876 – January 28, 1953), Australian Labor politician and ninth Prime Minister of Australia. ... This article is about the Australian Prime Minister. ... Joseph Benedict Chifley (22 September 1885 – 13 June 1951), Australian politician and 16th Prime Minister of Australia, was one of Australias most influential Prime Ministers. ... Keynesian economics (pronounced kainzian, IPA ), also called Keynesianism, or Keynesian Theory, is an economic theory based on the ideas of the 20th-century British economist John Maynard Keynes. ... Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki Tōjō Casualties Military dead: 17,000,000 Civilian dead: 33,000... The light on the hill is a phrase used to describe the objective of the Australian Labor Party. ...

The First Hundred Days

Having won a decisive victory in the United States presidential election of 1932, and with his party having decisively swept Congressional elections across the nation, Roosevelt entered office with unprecedented political capital. There were numerous Hoover plans that he could not get passed but were ready to go, such as the emergency banking laws. Americans of all political persuasions were demanding immediate action, and Roosevelt responded with a remarkable series of new programs in the “first hundred days” of the administration. Presidential electoral votes by state. ... This article concerns places that serve as centers of government and politics. ...

"Bank Holiday" and Emergency Banking Act

With religious language Roosevelt hurled the blame at businessmen and bankers: "Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men....The money changers have fled from their high seats in the temple of our civilization."

By March 4, nearly all banks in the country were closed by their governors, and Roosevelt kept them all closed until he could pass new legislation.^[9] On March 9, Roosevelt sent to Congress the Emergency Banking Act, drafted in large part by Hoover's Administration; the act was passed and signed into law the same day. It provided for a system of reopening sound banks under Treasury supervision, with federal loans available if needed. Three-quarters of the banks in the Federal Reserve System reopened within the next three days. Billions of dollars in "hoarded" currency and gold flowed back into them within a month, thus stabilizing the banking system. All was normal by April. During all of 1933, 4,004 small local banks were permanently closed and were merged into larger banks. (Their depositors eventually received 85 cents on the dollar of their deposits.) Anti-New Deal economists Milton Friedman and Anna Schwartz^[10] said, "The 'cure' came close to being worse than the disease." To avoid future "cures" the Congress created the Federal Deposit Insurance Corporation (FDIC) in June, which insured deposits for up to $5,000. The establishment of the FDIC virtually ended the era of "runs" on banks. Roosevelt issued Executive Order 6102 requiring that by next January all private gold be turned in for paper money at face value. (Legally he was following the March 9 law.) After January 1934, he then devalued the international value of the dollar by 40% in terms of gold and refused to honor gold obligations on any paper dollars or bonds redeemed. is the 63rd day of the year (64th in leap years) in the Gregorian calendar. ... is the 68th day of the year (69th in leap years) in the Gregorian calendar. ... Type Bicameral Houses Senate House of Representatives President of the Senate President pro tempore Dick Cheney, (R) since January 20, 2001 Robert C. Byrd, (D) since January 4, 2007 Speaker of the House Nancy Pelosi, (D) since January 4, 2007 Members 535 plus 4 Delegates and 1 Resident Commissioner Political... The Emergency Banking Act (also known as the Emergency Banking Relief Act) was an act of the United States Congress spearheaded by President Franklin D. Roosevelt during the Great Depression. ... The United States Department of the Treasury is a Cabinet department, a treasury, of the United States government established by an Act of U.S. Congress in 1789 to manage the revenue of the United States government. ... The Fed redirects here. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Anna Schwartz is an economist who has changed our understanding of how the world works. ... The FDIC logo The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. ... Executive Order 6102 was signed on April 5, 1933 by U.S. President Franklin D. Roosevelt to prohibit the hoarding of privately held gold coins and bullion in the United States, in an attempt to address the causes and effects of the Great Depression. ... is the 68th day of the year (69th in leap years) in the Gregorian calendar. ... For other uses, see Gold standard (disambiguation). ...

The economy had hit rock bottom in March 1933 and then started to expand. As historian Broadus Mitchell notes, "Most indexes worsened until the summer of 1932, which may be called the low point of the depression economically and psychologically."^[11] Economic indicators show the economy reached nadir in the first days of March, then began a steady, sharp upward recovery. Thus the Federal Reserve Index of Industrial Production hit its lowest point of 52.8 in July 1932 (with 1935-39 = 100) and was practically unchanged at 54.3 in March 1933; however by July 1933, it reached 85.5, a dramatic rebound of 57% in four months. Recovery was steady and strong until 1937. Except for unemployment, the economy by 1937 surpassed the levels of the late 1920s. The Recession of 1937 was a temporary downturn. Private sector employment, especially in manufacturing, recovered to the level of the 1920s but failed to advance further until the war. The Recession of 1937 was a sharp economic downturn in the United States in 1937-38. ...

Chart 2: Total employment in the United States from 1920 to 1940, excluding farms and WPA

Economy Act

This section does not cite any references or sources. (March 2008) Please improve this section by adding citations to reliable sources. Unverifiable material may be challenged and removed.

The Economy Act, drafted by Budget Director Lewis Douglas was passed on March 14, 1933. The act proposed to balance the "regular" (non-emergency) federal budget by cutting the salaries of government employees and cutting pensions to veterans by forty percent. It saved $500 million per year and reassured deficit hawks such as Douglas that the new President was fiscally conservative. Roosevelt argued there were two budgets: the "regular" federal budget, which he balanced, and the "emergency budget," which was needed to defeat the depression. It was imbalanced on a temporary basis. Image File history File links Question_book-3. ... The Economy Act or in full the Economy Act Agreement for Purchasing Good or Services was a United States act, which the U.S. Congress passed on March 15, 1933. ... Lewis Douglas on the cover of Time Magazine Lewis Williams Douglas (July 2, 1894 – March 7, 1974) was an American politician, diplomat, businessman and academic. ... is the 73rd day of the year (74th in leap years) in the Gregorian calendar. ... Year 1933 (MCMXXXIII) was a common year starting on Sunday (link will display full calendar) of the Gregorian calendar. ...

Roosevelt was initially in favor of balancing the budget, but he soon found himself running spending deficits in order to fund the numerous programs he created. Douglas, however, rejecting the distinction between a regular and emergency budget, resigned in 1934 and became an outspoken critic of the New Deal. Roosevelt strenuously opposed the Bonus Bill that would give World War I veterans a cash bonus. Finally, Congress passed it over his veto in 1936, and the Treasury distributed $1.5 billion in cash as bonus welfare benefits to 4 million veterans just before the 1936 election. The Bonus Bill of 1817 was a bill introduced by John Calhoun to provide United States highways linking The East and South to The West using the earnings Bonus from the Second Bank of the United States. ...

At least until John F. Kennedy in 1960, New Dealers never fully recognized the Keynesian argument for government spending as a vehicle for recovery. Most economists of the era, along with Henry Morgenthau of the Treasury Department, rejected Keynesian solutions and favored balanced budgets. John Kennedy and JFK redirect here. ... Keynesian economics (pronounced kainzian, IPA ), also called Keynesianism, or Keynesian Theory, is an economic theory based on the ideas of the 20th-century British economist John Maynard Keynes. ... Henry Morgenthau Jr. ...

Farm programs

Roosevelt was keenly interested in farm issues and emphasized that true prosperity would not return until farming was prosperous. Many different programs were directed at farmers. The first hundred days produced a federal program to protect commercial farmers from the uncertainties of the depression through subsidies and production controls. This program began with the Agricultural Adjustment Act, creating the Agricultural Adjustment Administration (AAA), which Congress passed in May 1933. The act reflected the demands of leaders of major farm organizations, especially the Farm Bureau, and reflected debates among Roosevelt's farm advisers such as Henry A. Wallace, Rexford Tugwell, and George Peek. In economics, a subsidy is generally a monetary grant given by a government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. ... The Agricultural Adjustment Act (or AAA) (Pub. ... The United States Agricultural Adjustment Act (AAA) (P.L. 73-10 of May 12, 1933) restricted production during the New Deal by paying farmers to reduce crop area. ... Henry Agard Wallace (October 7, 1888 – November 18, 1965) was the 33rd Vice President of the United States (1941–45), the 11th Secretary of Agriculture (1933–40), and the 10th Secretary of Commerce (1945–46). ... Rexford Guy Tugwell (July 10, 1891 - July 21, 1979) was an agricultural economist who became part of Franklin D. Roosevelts Brains Trust, a group of Columbia academics who helped develop policy recommendations leading up to Roosevelts 1932 election as President. ... George Peek was an agriculural economist and a member of Franklin Delano Roosevelts Brain Trust. ...

The AAA implemented a provision for crop reductions known as the "domestic allotment" system of the act. Under this system, producers of corn, cotton, dairy products, hogs, rice, tobacco, and wheat would decide on production limits for their crops. The AAA would then pay land owners subsidies for leaving some of their land idle with funds provided by a new tax on food processing. Farm prices were to be subsidized up to the point of parity. Some crops were ordered to be destroyed and some livestock slaughtered to maintain prices. The idea was that the less produced, the higher the price, and the farmer would benefit. Farm incomes increased significantly in the first three years of the New Deal. Food prices hardly rose at all, the rise in farm incomes was the result of the subsidies ^[12] Some revisionist historians say that consumers bore the brunt of (the very slightly) higher food prices and were "horrified with its policy of enforced scarcity."^[13] A Gallup Poll printed in the Washington Post revealed that a majority of the American public opposed the AAA.^[14] A Gallup poll is an opinion poll frequently used by the mass media for representing public opinion. ... ...

The AAA established an important and long-lasting federal role in the planning on the entire agricultural sector of the economy. The original AAA did not provide for any sharecroppers or tenants or farm laborers who might become unemployed, but there were other New Deal programs especially for them. Sharecropping is a system of farming in which employee farmers work a parcel of land in return for a fraction of the parcels crops. ... A tenant (from the Latin tenere, to hold), in legal contexts, holds real property by some form of title from a landlord. ...

in severe poverty, especially in the South. Major programs addressed to their needs included the Resettlement Administration (RA), the Farm Security Administration (FSA), the Rural Electrification Administration (REA), the Tennessee Valley Authority (TVA) and rural welfare projects sponsored by the WPA, NYA, Forest Service and CCC, including school lunches, building new schools, opening roads in remote areas, reforestation, and purchase of marginal lands to enlarge national forests. This article needs to be wikified. ... Photo of a sharecropper by Walker Evans for the U.S. Resettlement Administration Initially created as the Resettlement Administration in 1935 as part of the New Deal, the Farm Security Administration was an effort during the Depression to combat rural poverty. ... The Rural Utilities Service, formerly the Rural Electrification Administration is charged with providing utilities (electricity, telephone, water, sewer, etc. ... This article or section does not cite any references or sources. ...

The AAA was the first program on such a scale on behalf of the troubled agricultural economy, and it established an important and long-lasting federal role in the planning on the entire agricultural sector of the economy.

In 1936, the Supreme Court declared the AAA to be unconstitutional, stating that "a statutory plan to regulate and control agricultural production, [is] a matter beyond the powers delegated to the federal government..." The AAA was replaced by a similar program that did win Court approval. Instead of paying farmers for letting fields lie barren, this program instead subsidized them for planting soil enriching crops such as alfalfa that would not be sold on the market. Federal regulation of agricultural production has been modified many times since then, but together with large subsidies it is still in effect in 2008. Constitutionality is the status of a law, a procedure, or an acts accordance with the laws or guidelines set forth in the applicable constitution. ...

WPA employed 2 to 3 million unemployed at unskilled labor

In 1933, the Administration launched the Tennessee Valley Authority, a project involving dam construction planning on an unprecedented scale in order to curb flooding, generate electricity, and modernize the very poor farms in the Tennessee Valley region of the Southern United States. Image File history File links Download high resolution version (1413x1059, 235 KB) Summary WPA poster 1935 USA, color photo Licensing File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... Image File history File links Download high resolution version (1413x1059, 235 KB) Summary WPA poster 1935 USA, color photo Licensing File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... This article or section does not cite any references or sources. ... The Tennessee Valley is the drainage basin of the Tennessee River and is largely within the U.S. state of Tennessee. ... Historic Southern United States. ...

Repeal of Prohibition

In a measure that garnered substantial popular support, Roosevelt, in his first days of office, moved to put to rest one of the most divisive cultural issues of the 1920s. He supported and signed the bill to legalize the manufacture and sale of beer, an interim measure pending the repeal of Prohibition, for which a constitutional amendment (the Twenty-first) was already in process. The amendment was ratified later in 1933. Prohibition had been a rather unpopular amendment and led to bootlegging, the illegal manufacture (or importation) and sale of liquor within the United States. Amendment XVIII in the National Archives Prohibition agents destroying barrels of alcohol. ... Amendment XXI in the National Archives The Twenty-first Amendment (Amendment XXI) to the United States Constitution repealed the Eighteenth Amendment to the United States Constitution, which had mandated nationwide Prohibition. ... Rum-running is the business of smuggling or transporting of alcoholic beverages illegally, usually to circumvent taxation or prohibition. ...

Puerto Rico

A separate set of programs operated in Puerto Rico, headed by the Puerto Rico Reconstruction Administration. It promoted land reform and helped small farms; it set up farm cooperatives, promoted crop diversification, and helped local industry. The Puerto Rico Reconstruction Administration was directed by Ernest Gruening from 1935 to 1937. Marced was a huge supporter of The New Deal.-1... Bronze by George Anthonisen. ...

Reform

Business, labor, and government cooperation

This section does not cite any references or sources. (March 2008) Please improve this section by adding citations to reliable sources. Unverifiable material may be challenged and removed.

Besides all the programs for immediate "relief", the New Deal embarked quickly on an agenda of long-term "reform" aimed at avoiding another depression. The New Dealers responded to demands to inflate the currency by a variety of means. Another group of reformers sought to build consumer and farmer co-ops as a counterweight to big business. The consumer co-ops did not take off, but the Rural Electrification Administration used co-ops to bring electricity to rural areas. (As of 2007, many still operate.) Image File history File links Question_book-3. ... The Rural Utilities Service, formerly the Rural Electrification Administration is charged with providing utilities (electricity, telephone, water, sewer, etc. ...

Roosevelt realized that these initial actions were short term solutions and that more comprehensive government programs would be necessary. In the roughly three years between Black Tuesday and Roosevelt's First Hundred Days, the industrial economy had been suffering from a vicious cycle of deflation. Since 1931, the U.S. Chamber of Commerce, the voice of the nation's organized business, had been urging the Hoover Administration to adopt an anti-deflationary scheme that would permit trade associations to cooperate in stabilizing prices within their industries. While existing antitrust laws clearly forbade such practices, organized business found a receptive ear in the Roosevelt Administration. “Deflation” redirects here. ... The U.S. Chamber of Commerce is the worlds largest not-for-profit business federation, representing 3,000,000 businesses 2,800 state and local chambers 830 business associations They are staffed with policy specialists, lobbyists and lawyers. ...

The Roosevelt Administration, packed with reformers aspiring to forge all elements of society into a cooperative unit (a reaction to the worldwide specter of business-labor "class struggle"), was fairly amenable to the idea of cooperation among producers.

The Administration insisted that business would have to ensure that the incomes of workers would rise along with their prices. The product of all these impulses and pressures was the National Industrial Recovery Act (NIRA) which was passed by Congress in June 1933. The NIRA established the National Planning Board, also called the National Resources Planning Board (NRPB), to assist in planning the economy by providing recommendations and information. Fredric A. Delano was appointed head of the NRPB. The National Industrial Recovery Act (NIRA) or National Recovery Act (NRA) of June 16, 1933, was part of President Franklin Delano Roosevelts New Deal. ...

The NIRA guaranteed to workers the right of collective bargaining and helped spur some union organizing activity, but much faster growth of union membership came before the 1935 Wagner Act. The NIRA established the National Recovery Administration (NRA), which attempted to stabilize prices and wages through cooperative "code authorities" involving government, business, and labor. The NRA included a multitude of regulations imposing the pricing and production standards for all sorts of goods and services. Most economists were dubious because it was based on fixing prices to reduce competition.^[15] Historian Jim Power, in FDR's Folly, says that the above-market wage rates dictated by the NRA made it more expensive for employers to hire people, and therefore unnecessarily maintained high unemployment and prolonged the Depression. NRA Blue Eagle poster. ...

To prime the pump and cut unemployment, the NIRA created the Public Works Administration (PWA), a major program of public works. From 1933 to 1935 PWA spent $3.3 billion with private companies to build 34,599 projects, many of them quite large. The Public Works Administration of 1933 (PWA) was a part of the first New Deal agency that made contracts with private firms for construction of public works. ...

NRA "Blue Eagle" campaign

NRA Blue Eagle

At the center of the NIRA was the National Recovery Administration (NRA), headed by former General Hugh Samuel Johnson. Johnson called on every business establishment in the nation to accept a stopgap "blanket code": a minimum wage of between 20 and 45 cents per hour, a maximum workweek of 35 to 45 hours, and the abolition of child labor. Johnson and Roosevelt contended that the "blanket code" would raise consumer purchasing power and increase employment. Image File history File links From US Government Archives website, http://www. ... Image File history File links From US Government Archives website, http://www. ... NRA Blue Eagle The Blue Eagle, a blue-colored representation of the American thunderbird, with outspread wings, was a symbol used in the United States by companies to show compliance with the National Industrial Recovery Act. ... Hugh Johnson (* 1939) is a famous British wine specialist Hugh S. Johnson on the cover of Time Hugh Samuel Johnson (1882 - 1942) was an American soldier and public administrator. ... Child labour is the employment of children under an age determined by law or custom. ...

To mobilize political support for the NRA, Johnson launched the "NRA Blue Eagle" publicity campaign to boost his bargaining strength to negotiate the codes with business and labor. The NRA negotiated specific sets of codes with leaders of the nation's major industries; the most important provisions were anti-deflationary floors below which no company would lower prices or wages, and agreements on maintaining employment and production. In a remarkably short time, the NRA won agreements from almost every major industry in the nation. Six months after the NRA went into effect industrial production dropped twenty-five percent. According to some economists, the NRA increased the cost of doing business by forty percent.^[16] Donald Richberg, who soon replaced Johnson as the head of the NRA said: NRA Blue Eagle The Blue Eagle, a blue-colored representation of the American thunderbird, with outspread wings, was a symbol used in the United States by companies to show compliance with the National Industrial Recovery Act. ...

There is no choice presented to American business between intelligently planned and uncontrolled industrial operations and a return to the gold-plated anarchy that masqueraded as "rugged individualism."...Unless industry is sufficiently socialized by its private owners and managers so that great essential industries are operated under public obligation appropriate to the public interest in them, the advance of political control over private industry is inevitable.^[17]

By the time it ended in May 1935, industrial production was 22% higher than in May 1933. On May 27, 1935, the NRA was found to be unconstitutional by a unanimous decision of the U.S. Supreme Court in the case of Schechter v. United States. On that same day, the Court unanimously struck down the Frazier-Lemke Act portion of the New Deal as unconstitutional. Some libertarians such as Richard Ebeling see these and other rulings striking down portions of the New Deal as preventing the U.S. economic system from becoming a planned economy corporate state.^[18] Governor Huey Long of Louisiana said, "I raise my hand in reverence to the Surpreme Court that saved this nation from fascism."^[19] is the 147th day of the year (148th in leap years) in the Gregorian calendar. ... 1935 (MCMXXXV) was a common year starting on Tuesday (link will display full calendar). ... Holding Section 3 of the National Industrial Recovery Act was an unconstitutional delegation of legislative power to the Executive. ... Dr. Richard M. Ebeling (born 1950) is an American libertarian author and president of the Foundation for Economic Education (FEE) based in Irvington-on-Husdon, NY. He has written and edited numerous books, including the three-volume Selected Writings of Ludwig von Mises. ... This article refers to an economy controlled by the state. ... Huey Pierce Long, Jr. ... This article is about the U.S. State. ... Fascist redirects here. ...

Chart 3: Manufacturing employment in the United States from 1920 to 1940

Employment in private sector factories recovered to the level of the late 1920s by 1937 but did not grow much bigger until the war came and manufacturing employment leaped from 11 million in 1940 to 18 million in 1943.

Legislative successes and failures

In the spring of 1935, responding to the setbacks in the Court, a new skepticism in Congress, and the growing popular clamor for more dramatic action, the Administration proposed or endorsed several important new initiatives. Historians refer to them as the "Second New Deal" and note that it was more radical, more pro-labor and anti-business than the "First New Deal" of 1933-34. The National Labor Relations Act, also known as the Wagner Act, revived and strengthened the protections of collective bargaining contained in the original NIRA. The result was a tremendous growth of membership in the labor unions comprising the American Federation of Labor. Labor thus became a major component of the New Deal political coalition. Roosevelt nationalized unemployment relief through the Works Progress Administration (WPA), headed by close friend Harry Hopkins. It created hundreds of thousands of low-skilled blue collar jobs for unemployed men (and some for unemployed women and white collar workers). The National Youth Administration was the semi-autonomous WPA program for youth. Its Texas director, Lyndon Baines Johnson, later used the NYA as a model for some of his Great Society programs in the 1960s. This article does not cite any references or sources. ... National Labor Relations Act - Wikipedia /**/ @import /skins/monobook/IE50Fixes. ... The American Federation of Labor (AFL) was one of the first federations of labor unions in the United States. ... WPA Graphic The Works Progress Administration (later Work Projects Administration, abbreviated WPA), was created on May 6, 1935 by Presidential order (Congress funded it annually but did not set it up). ... Harry Lloyd Hopkins Harry Lloyd Hopkins (August 17, 1890 – January 29, 1946) was one of Franklin Delano Roosevelts closest advisors. ... The National Youth Administration (NYA) was a New Deal agency in the United States. ... For other uses, see Texas (disambiguation). ... Lyndon Baines Johnson ( August 27, 1908 – January 22, 1973), often referred to as LBJ, was an American politician. ... The Great Society was also a 1960s band featuring Grace Slick, and a 1914 book by English social theorist Graham Wallas. ...

The most important program of 1935, and perhaps the New Deal as a whole, was the Social Security Act,^{[citation needed]} which established a system of universal retirement pensions, unemployment insurance, and welfare benefits for poor families and the handicapped. It established the framework for the U.S. welfare system. Roosevelt insisted that it should be funded by payroll taxes rather than from the general fund; he said, "We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program." One of the last New Deal agencies was the United States Housing Authority, created in 1937 with some Republican support to abolish slums. Social Security, in the United States, currently refers to the Federal Old-Age, Survivors, and Disability Insurance (OASDI) program. ... The United States Housing Authority, or USHA, was an agency created during 1937 as part of the New Deal. ... Slums in Delhi, India. ...

Defeat: court packing and executive reorganization

Main article: Judiciary Reorganization Bill of 1937

Roosevelt, however, emboldened by the triumphs of his first term, set out in 1937 to consolidate authority within the government in ways that provoked powerful opposition. Early in the year, he asked Congress to expand the number of justices on the Supreme Court so as to allow him to appoint members sympathetic to his ideas and hence tip the ideological balance of the Court. This proposal provoked a storm of protest. The Judiciary Reorganization Bill of 1937, frequently called the Court-packing Bill, was a law proposed by United States President Franklin Roosevelt. ... The Judiciary Reorganization Bill of 1937, frequently called the Court-packing Bill, was a law proposed by United States President Franklin Roosevelt. ...

In one sense, however, it succeeded; Justice Owen Roberts, switched positions and began voting to uphold New Deal measures, effectively creating a liberal majority in West Coast Hotel Co. v. Parrish and National Labor Relations Board v. Jones & Laughlin Steel Corporation thus departing from the Lochner v. New York era and giving the government more power in questions of economic policies. Journalists called this change "the switch in time that saved nine." Recent scholars have noted that since the vote in Parrish took place several months before the court-packing plan was announced, other factors, like evolving jurisprudence, must have contributed to the Court's swing. The opinions handed down in the spring of 1937, favorable to the government, also contributed to the downfall of the plan. In any case, the "court packing plan," as it was known, did lasting political damage to Roosevelt and was finally rejected by Congress in July. Owen Josephus Roberts (May 2, 1875 – May 17, 1955) was an Associate Justice of the United States Supreme Court for fifteen years. ... Holding Washingtons minimum wage law for women was a valid regulation of the right to contract freely because of the states special interest in protecting their health and ability to support themselves. ... Holding Congress had the power, under the Commerce Clause, to regulate labor relations. ... Holding New Yorks regulation of the working hours of bakers was not a justifiable restriction of the right to contract freely under the 14th Amendments guarantee of liberty. ... “The switch in time that saved nine” was the name given by the press to the apparent sudden shift by Justice Owen J. Roberts from the conservative wing of the Supreme Court (represented by the Four Horsemen) to the liberal wing (represented by Three Musketeers) in the case West Coast...

At about the same time, the Administration proposed a plan to reorganize the executive branch in ways that would significantly increase the President's control over the bureaucracy. Like the Court-packing plan, executive reorganization garnered opposition from those who feared a "Roosevelt dictatorship" and it failed in Congress; a watered-down version of the bill finally won passage in 1939.

Attacks right and left

Historians on the left denounce Roosevelt for rescuing capitalism when the opportunity was at hand to nationalize banking, railroads and other industries.^[20] Liberal historians argue that Roosevelt restored hope and self-respect to tens of millions of desperate people, built labor unions, upgraded the national infrastructure and saved capitalism in his first term when he could have destroyed it and easily nationalized the banks and the railroads.^[21]

Historians on the right complain that he enlarged the powers of the federal government, built up labor unions, slowed long-term economic growth, and weakened the business community.

A 1936 cartoon shows the GOP building its platform from the conservative planks abandoned by the Democrats.

Historians on the left have denounced the New Deal as a conservative phenomenon that let slip the opportunity to radically reform capitalism. Since the 1960s, "New Left" historians have been among the New Deal's harsh critics.^[22] Barton J. Bernstein, in a 1968 essay, compiled a chronicle of missed opportunities and inadequate responses to problems. The New Deal may have saved capitalism from itself, Bernstein charged, but it had failed to help—and in many cases actually harmed—those groups most in need of assistance. Paul K. Conkin in The New Deal (1967) similarly chastised the government of the 1930s for its policies toward marginal farmers, for its failure to institute sufficiently progressive tax reform, and its excessive generosity toward select business interests. Howard Zinn, in 1966, criticized the New Deal for working actively to actually preserve the worst evils of capitalism. Image File history File links Download high resolution version (1195x1559, 324 KB) Summary US cartoon 1936, parody on American politics Licensing This image is a single panel from the interior of a single issue of a comic book and the copyright for it is most likely owned by either the... Image File history File links Download high resolution version (1195x1559, 324 KB) Summary US cartoon 1936, parody on American politics Licensing This image is a single panel from the interior of a single issue of a comic book and the copyright for it is most likely owned by either the... The New Left is a term used in different countries to describe left-wing movements that occurred in the 1960s and 1970s. ... Howard Zinn (born August 24, 1922) is an American historian, political scientist, social critic, activist and playwright, best known as author of the bestseller[5] , A Peoples History of the United States. ...

Since the 1970s, research on the New Deal has been less interested in the question of whether the New Deal was a "conservative," "liberal" or "revolutionary" phenomenon than in the question of constraints within which it was operating. Political sociologist Theda Skocpol, in a series of articles, has emphasized the issue of "state capacity" as an often-crippling constraint. Ambitious reform ideas often failed, she argued because of the absence of a government bureaucracy with significant strength and expertise to administer them. Other more recent works have stressed the political constraints that the New Deal encountered. Both in Congress and among certain segments of the population conservative inhibitions about government remained strong; thus some scholars have stressed that the New Deal was not just a product of its liberal backers, but also a product of the pressures of its conservative opponents. Theda Skocpol (born May 4, 1947 in Detroit, Michigan) is a sociologist and political scientist at Harvard University, presently serving as Dean of the Graduate School of Arts and Sciences. ...

"Broker state"

The federal government commissioned a series of public murals from the artists it employed. William Gropper's "Construction of a Dam" (1939), is characteristic of much of the art of the 1930s, with workers seen in heroic poses, laboring in unison to complete a great public project.

(Department of the Interior) File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... William Gropper (born 1897 in New York; died 1977) was a U.S. cartoonist, painter, lithographer, and muralist. ...

Government role: balance labor, business and farming

Despite the dismal record in aiding marginal farmers^{[citation needed]}and African Americans^{[citation needed]}, among others—contrasted wit