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Show results for Kindle Store Kindle eBooks. Your recently viewed items and featured recommendations. Douglas proved too inflexible and he quit in Morgenthau made it his highest priority to stay close to Roosevelt, no matter what. Douglas's position, like many of the Old Right , was grounded in a basic distrust of politicians and the deeply ingrained fear that government spending always involved a degree of patronage and corruption that offended his Progressive sense of efficiency. Rather it was an integral part of Roosevelt's overall New Deal". Morgenthau shifted with Roosevelt, but at all times tried to inject fiscal responsibility—he deeply believed in balanced budgets, stable currency, reduction of the national debt and the need for more private investment.
The Wagner Act met Morgenthau's requirement because it strengthened the party's political base and involved no new spending. In contrast to Douglas, Morgenthau accepted Roosevelt's double budget as legitimate—that is a balanced regular budget and an "emergency" budget for agencies, like the WPA, PWA and CCC, that would be temporary until full recovery was at hand. His biggest success was the new Social Security program as he managed to reverse the proposals to fund it from general revenue and insisted it be funded by new taxes on employees.
It was Morgenthau who insisted on excluding farm workers and domestic servants from Social Security because workers outside industry would not be paying their way. While many Americans suffered economically during the Great Depression, African Americans also had to deal with social ills, such as racism, discrimination and segregation. Black workers were especially vulnerable to the economic downturn since most of them worked the most marginal jobs such as unskilled or service-oriented work, therefore they were the first to be discharged and additionally many employers preferred white workers.
When jobs were scarce some employers even dismissed blacks to create jobs for whites. In the end there were three times more African American workers on public assistance or relief than white workers. They operated separate all-black units with the same pay and conditions as white units. Most unions excluded blacks from joining and enforcement of anti-discrimination laws in the South was virtually impossible, especially since most blacks worked in hospitality and agricultural sectors. The New Deal programs put millions of Americans immediately back to work or at least helped them to survive.
The Agricultural Adjustment Acts for example helped farmers which were predominantly white, but reduced the need of farmers to hire tenant farmers or sharecroppers which were predominantly black. While the AAA stipulated that a farmer had to share the payments with those who worked the land this policy was never enforced. Byrnes of South Carolina raised opposition to the appointments because he stood for white farmers who were threatened by an agency that could organize and empower tenant farmers. Initially, the FSA stood behind their appointments, but after feeling national pressure FSA was forced to release the African Americans of their positions.
The goals of the FSA were notoriously liberal and not cohesive with the southern voting elite. Some New Deal measures inadvertently discriminated against harmed blacks.
Thousands of blacks were thrown out of work and replaced by whites on jobs where they were paid less than the NRA's wage minimums because some white employers considered the NRA's minimum wage "too much money for Negroes". However, since blacks felt the sting of the depression's wrath even more severely than whites they welcomed any help.
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New Deal policies helped establish a political alliance between blacks and the Democratic Party that survives into the 21st century. There was no attempt whatsoever to end segregation, or to increase black rights in the South. Roosevelt appointed an unprecedented number of blacks to second-level positions in his administration—these appointees were collectively called the Black Cabinet. The wartime Fair Employment Practices Commission FEPC executive orders that forbade job discrimination against African Americans, women and ethnic groups was a major breakthrough that brought better jobs and pay to millions of minority Americans.
The New Deal was racially segregated as blacks and whites rarely worked alongside each other in New Deal programs. By July , practically all the camps in the United States were segregated, and blacks were strictly limited in the supervisory roles they were assigned. In , when Senator Josiah Bailey Democrat of North Carolina accused him of trying to break down segregation laws Ickes wrote him to deny that:. The New Deal's record came under attack by New Left historians in the s for its pusillanimity in not attacking capitalism more vigorously, nor helping blacks achieve equality.
The critics emphasize the absence of a philosophy of reform to explain the failure of New Dealers to attack fundamental social problems. They demonstrate the New Deal's commitment to save capitalism and its refusal to strip away private property. They detect a remoteness from the people and indifference to participatory democracy and call instead for more emphasis on conflict and exploitation. At first, the New Deal created programs primarily for men as it was assumed that the husband was the " breadwinner " the provider and if they had jobs the whole family would benefit.
It was the social norm for women to give up jobs when they married—in many states, there were laws that prevented both husband and wife holding regular jobs with the government. Many women were employed on FERA projects run by the states with federal funds. It hired single women, widows, or women with disabled or absent husbands.
The WPA employed about , women and they were assigned mostly to unskilled jobs. Women also were hired for the WPA's school lunch program. The Social Security program was designed to help retired workers and widows but did not include domestic workers, farmers or farm laborers, the jobs most often held by blacks. However, Social Security was not a relief program and it was not designed for short-term needs, as very few people received benefits before The New Deal expanded the role of the federal government, particularly to help the poor, the unemployed, youth, the elderly and stranded rural communities.
The Hoover administration started the system of funding state relief programs, whereby the states hired people on relief. With the CCC in and the WPA in , the federal government now became involved in directly hiring people on relief in granting direct relief or benefits. Total federal, state and local spending on relief rose from 3. He and his wife were not on relief, but they were employed by the WPA as statisticians.
Friedman said that Roosevelt deserved considerable credit for relieving immediate distress and restoring confidence. In a survey of economic historians conducted by Robert Whaples, Professor of Economics at Wake Forest University , anonymous questionnaires were sent to members of the Economic History Association. Members were asked to disagree, agree, or agree with provisos with the statement that read: From to , the economy expanded at an average rate of 7.
John Maynard Keynes explained that situation as an underemployment equilibrium where skeptic business prospects prevent companies from hiring new employees. It was seen as a form of cyclical unemployment. There are different assumptions as well. According to Richard L. Jensen , cyclical unemployment was a grave matter primarily until Between and , structural unemployment became the bigger problem. Especially the unions successes in demanding higher wages pushed management into introducing new efficiency-oriented hiring standards.
It ended inefficient labor such as child labor, casual unskilled work for subminimum wages and sweatshop conditions. In the long term, the shift to efficiency wages led to high productivity, high wages and a high standard of living, but it necessitated a well-educated, well-trained, hard-working labor force.
It was not before war time brought full employment that the supply of unskilled labor that caused structural unemployment downsized. At the beginning of the Great Depression, many economists traditionally argued against deficit spending. The fear was that government spending would "crowd out" private investment and would thus not have any effect on the economy, a proposition known as the Treasury view , but Keynesian economics rejected that view. They argued that by spending vastly more money—using fiscal policy —the government could provide the needed stimulus through the multiplier effect.
Without that stimulus, business simply would not hire more people, especially the low skilled and supposedly "untrainable" men who had been unemployed for years and lost any job skill they once had. Keynes visited the White House in to urge President Roosevelt to increase deficit spending.
Roosevelt afterwards complained that "he left a whole rigmarole of figures — he must be a mathematician rather than a political economist". The New Deal tried public works, farm subsidies and other devices to reduce unemployment, but Roosevelt never completely gave up trying to balance the budget. The effects of federal public works spending were largely offset by Herbert Hoover's large tax increase in , whose full effects for the first time were felt in and it was undercut by spending cuts, especially the Economy Act.
According to Keynesians like Paul Krugman , the New Deal therefore was not as successful in the short run as it was in the long run. Following the Keynesian consensus that lasted until the s , the traditional view was that federal deficit spending associated with the war brought full-employment output while monetary policy was just aiding the process. In this view, the New Deal did not end the Great Depression, but halted the economic collapse and ameliorated the worst of the crises.
More influential among economists has been the monetarist interpretation of Milton Friedman [ citation needed ] , which includes a full-scale monetary history of what he calls the "Great Contraction". Friedman concentrated on the failures before and points out that between and the Federal Reserve allowed the money supply to fall by a third which is seen as the major cause that turned a normal recession into a Great Depression. Friedman especially criticized the decisions of Hoover and the Federal Reserve not to save banks going bankrupt. Monetarists state that the banking and monetary reforms were a necessary and sufficient response to the crises.
They reject the approach of Keynesian deficit spending. You have to distinguish between two classes of New Deal policies. One class of New Deal policies was reform: I did not support those. The other part of the new deal policy was relief and recovery Those parts of the New Deal I did support.
Ben Bernanke and Martin Parkinson declared in "Unemployment, Inflation, and Wages in the American Depression" that "the New Deal is better characterized as having cleared the way for a natural recovery for example, by ending deflation and rehabilitating the financial system rather than as being the engine of recovery itself". Challenging the traditional view, monetarists and New Keynesians like J. Bradford DeLong , Lawrence Summers and Christina Romer argued that recovery was essentially complete prior to and that monetary policy was the crucial source of pre recovery.
According to Bernanke, there was also a debt-deflation effect of the depression which was clearly offset by a reflation through the growth in money supply. While Milton Friedman and Anna Schwartz argued in A Monetary History of the United States that the Federal Reserve System had made no attempt to increase the quantity in high-powered money and thus failed to foster recovery, they somehow did not investigate the impact of the monetary policy of the New Deal. The Roosevelt administration had chosen not to sterilize the gold inflow precisely because they hoped that the growth of money supply would stimulate the economy.
Replying to DeLong et al. Vernon argues that deficit spending leading up to and during World War II still played a large part in the overall recovery, according to his study "half or more of the recovery occurred during and ". Eggertsson and Christina Romer, the biggest primary impact of the New Deal on the economy and the key to recovery and to end the Great Depression was brought about by a successful management of public expectations.
The thesis is based on the observation that after years of deflation and a very severe recession important economic indicators turned positive just in March when Roosevelt took office. Consumer prices turned from deflation to a mild inflation, industrial production bottomed out in March , investment doubled in with a turnaround in March There were no monetary forces to explain that turnaround. Money supply was still falling and short-term interest rates remained close to zero. Before March , people expected a further deflation and recession so that even interest rates at zero did not stimulate investment.
However, when Roosevelt announced major regime changes people [ who? With those expectations, interest rates at zero began to stimulate investment just as they were expected to do. Roosevelt's fiscal and monetary policy regime change helped to make his policy objectives credible.
The expectation of higher future income and higher future inflation stimulated demand and investments. The analysis suggests that the elimination of the policy dogmas of the gold standard, a balanced budget in times of crises and small government led endogenously to a large shift in expectation that accounts for about 70—80 percent of the recovery of output and prices from to If the regime change had not happened and the Hoover policy had continued, the economy would have continued its free-fall in and output would have been 30 percent lower in than in Followers of the real business-cycle theory believe that the New Deal caused the depression to persist longer than it would otherwise have.
Cole and Lee E. Ohanian say Roosevelt's policies prolonged the depression by seven years. They claim that the New Deal "cartelization policies are a key factor behind the weak recovery". They say that the "abandonment of these policies coincided with the strong economic recovery of the s". The underlying assumptions of this theory are subject to numerous criticisms and the theory is unable to posit any convincing explanations for the initial causes of the Great Depression. Gallaway and Richard K.
Vedder argue on the basis of libertarian theories that the Great Depression was caused by too high wages which they say had caused a loss of depositor confidence which caused the bank runs. They suggest that without Social Security, work relief, unemployment insurance, mandatory minimum wages and without special government-granted privileges for labor unions, business would have hired more workers and the unemployment rate during the New Deal years would have been 6. Shlaes said that the NRA was misguided because it used price setting to fix monetary problems. According to Shlaes, Roosevelt's experimentation frightened business into inaction and prevented recovery.
The economic reforms were mainly intended to rescue the capitalist system by providing a more rational framework in which it could operate. The banking system was made less vulnerable. The regulation of the stock market and the prevention of some corporate abuses relating to the sale of securities and corporate reporting addressed the worst excesses.
Roosevelt allowed trade unions to take their place in labor relations and created the triangular partnership between employers, employees and government. Kennedy wrote that "the achievements of the New Deal years surely played a role in determining the degree and the duration of the postwar prosperity ".
Paul Krugman stated that the institutions built by the New Deal remain the bedrock of the United States economic stability. Against the background of the — global financial crisis , he explained that the financial crises would have been much worse if the New Deals Federal Deposit Insurance Corporation had not insured most bank deposits and older Americans would have felt much more insecure without Social Security.
The New Deal banking reform was weakened since the s. The repeal of the Glass-Steagall Act in allowed the shadow banking system to grow rapidly. Since it was neither regulated nor covered by a financial safety net, the shadow banking system was central to the financial crisis of — and the subsequent Great Recession. While it is essentially consensus among historians and academics that the New Deal brought about a large increase in the power of the federal government, there has been some scholarly debate concerning the results of this federal expansion.
Historians like Arthur M. Schlesinger and James T. Patterson have argued that the augmentation of the federal government exacerbated tensions between the federal and state governments. However, contemporaries such as Ira Katznelson have suggested that due to certain conditions on the allocation of federal funds, namely that the individual states get to control them, the federal government managed to avoid any tension with states over their rights.
This is a prominent debate concerning the historiography of federalism in the United States and—as Schlesinger and Patterson have observed—the New Deal marked an era when the federal-state power balance shifted further in favor of the federal government, which heightened tensions between the two levels of government in the United States.
Ira Katznelson has argued that although the federal government expanded its power and began providing welfare benefits on a scale previously unknown in the United States, it often allowed individual states to control the allocation of the funds provided for such welfare. This meant that the states controlled who had access to these funds, which in turn meant many Southern states were able to racially segregate—or in some cases, like a number of counties in Georgia, completely exclude African-Americans—the allocation of federal funds.
While Katznelson has conceded that the expansion of the federal government had the potential to lead to federal-state tension, he has argued it was avoided as these states managed to retain some control. As Katznelson has observed, "furthermore, they [state governments in the South] had to manage the strain that potentially might be placed on local practices by investing authority in federal bureaucracies… To guard against this outcome, they key mechanism deployed was a separation of the source of funding from decisions about how to spend the new monies".
However, Schlesinger has disputed Katznelson's claim and has argued that the increase in the power of the federal government was perceived to come at the cost of states' rights, thereby aggravating state governments, which exacerbated federal-state tensions. Schlesinger has utilized quotes from the time to highlight this point, Schlesinger has observed that "the actions of the New Deal, [Ogden L.
They make of a government of limited powers one of unlimited authority over the lives of us all". Moreover, Schlesinger has argued that this federal-state tension was not a one-way street and that the federal government became just as aggravated with the state governments as they did with it. State governments were often guilty of inhibiting or delaying federal policies.
Whether through intentional methods, like sabotage, or unintentional ones, like simple administrative overload—either way these problems aggravated the federal government and thus heightened federal-state tensions. As Schlesinger has also noted that "students of public administration have never taken sufficient account of the capacity of lower levels of government to sabotage or defy even a masterful President". Patterson has reiterated this argument, though he observes that this increased tension can be accounted for not just from a political perspective, but from an economic one too. Patterson has argued that the tension between the federal and state governments at least partly also resulted from the economic strain under which the states had been put by the federal government's various policies and agencies.
Some states were either simply unable to cope with the federal government's demand and thus refused to work with them, or admonished the economic restraints and actively decided to sabotage federal policies. This was demonstrated, Patterson has noted, with the handling of federal relief money by Ohio governor, Martin L. The case in Ohio became so detrimental to the federal government that Harry Hopkins, supervisor of the Federal Emergency Relief Administration, had to federalize Ohio relief.
As Patterson has asserted, "though the record of the FERA was remarkably good—almost revolutionary—in these respects it was inevitable, given the financial requirements imposed on deficit-ridden states, that friction would develop between governors and federal officials".
In this dispute it can be inferred that Katznelson and Schlesinger and Patterson have only disagreed on their inference of the historical evidence. While both parties have agreed that the federal government expanded and even that states had a degree of control over the allocation of federal funds, they have disputed the consequences of these claims. Katznelson has asserted that it created mutual acquiescence between the levels of government, while Schlesinger and Patterson have suggested that it provoked contempt for the state governments on the part of the federal government and vice versa, thus exacerbating their relations.
In short, irrespective of the interpretation this era marked an important time in the historiography of federalism and also nevertheless provided some narrative on the legacy of federal-state relations. In both countries the pressure to reform and the perception of the economic crisis were strikingly similar. When Hitler came to power he was faced with exactly the same task that faced Roosevelt, overcoming mass unemployment and the global Depression. The political responses to the crises were essentially different: The initial perception of the New Deal was mixed. Roosevelt and the New Deal in the United States".
By contrast, enemies of the New Deal sometimes called it "fascist", but they meant very different things. Communists denounced the New Deal in and as fascist in the sense that it was under the control of big business. They dropped that line of thought when Stalin switched to the "Popular Front" plan of cooperation with liberals. Sometimes they will call it 'Fascism', sometimes 'Communism', sometimes 'Regimentation', sometimes 'Socialism'. But, in so doing, they are trying to make very complex and theoretical something that is really very simple and very practical Plausible self-seekers and theoretical die-hards will tell you of the loss of individual liberty.
Answer this question out of the facts of your own life. Have you lost any of your rights or liberty or constitutional freedom of action and choice? After , only few observers continued to see similarities and later on some scholars such as Kiran Klaus Patel , Heinrich August Winkler and John Garraty came to the conclusion that comparisons of the alternative systems do not have to end in an apology for Nazism since comparisons rely on the examination of both similarities and differences.
Their preliminary studies on the origins of the fascist dictatorships and the American reformed democracy came to the conclusion that besides essential differences "the crises led to a limited degree of convergence" on the level of economic and social policy. Wagner and from American business leaders such as the Chamber of Commerce. In economic terms, both ideas were within the general tendency of the s to intervene in the free market capitalist economy, at the price of its laissez-faire character, "to protect the capitalist structure endangered by endogenous crises tendencies and processes of impaired self-regulation".
Stanley Payne , a historian of fascism, examined possible fascist influences in the United States by looking at the KKK and its offshoots and movements led by Father Coughlin and Huey Long. He concluded that "the various populist, nativist, and rightist movements in the United States during the s and s fell distinctly short of fascism". For decades, the New Deal was generally held in very high regard in the scholarship and the textbooks. That changed in the s when New Left historians began a revisionist critique that said the New Deal was a bandaid for a patient that needed radical surgery to reform capitalism, put private property in its place and lift up workers, women and minorities.
The New Left believed in participatory democracy and therefore rejected the autocratic machine politics typical of the big city Democratic organizations. In the s, New Left historians have been among the New Deal's harsh critics. Bernstein 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. Conkin similarly chastised the government of the s for its weak policies toward marginal farmers, for its failure to institute sufficiently progressive tax reform, and its excessive generosity toward select business interests. In , Howard Zinn criticized the New Deal for working actively to actually preserve the worst evils of capitalism. By the s, liberal historians were responding with a defense of the New Deal based on numerous local and microscopic studies.
Praise increasingly focused on Eleanor Roosevelt, seen as a more appropriate crusading reformer than her husband. In a series of articles, political sociologist Theda Skocpol 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. Conservative skepticism about the efficacy of government was strong both in Congress and among many citizens. 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. During the New Deal the communists established a network of a dozen or so members working for the government. They were low level and had a minor influence on policies.
Secretary of Agriculture Wallace got rid of them all in a famous purge in Since , politicians and pundits have often called for a "new deal" regarding an object—that is, they demand a completely new, large-scale approach to a project. Bennett in proposed a "new deal" of regulation, taxation and social insurance that was a copy of the American program, but Bennett's proposals were not enacted and he was defeated for reelection in October In accordance with the rise of the use of U.
The Works Progress Administration subsidized artists, musicians, painters and writers on relief with a group of projects called Federal One. While the WPA program was by far the most widespread, it was preceded by three programs administered by the US Treasury which hired commercial artists at usual commissions to add murals and sculptures to federal buildings.
The first of these efforts was the short-lived Public Works of Art Project , organized by Edward Bruce , an American businessman and artist. The New Deal arts programs emphasized regionalism , social realism , class conflict , proletarian interpretations and audience participation. The unstoppable collective powers of common man, contrasted to the failure of individualism , was a favorite theme. Post Office murals and other public art, painted by artists in this time, can still be found at many locations around the U. For journalists and the novelists who wrote non-fiction, the agencies and programs that the New Deal provided, allowed these writers to describe about what they really saw around the country.
Many writers chose to write about the New Deal and whether they were for or against it and if it was helping the country out. They ranged from subjects on social protest to strikes. Countless theatre productions around the country were staged. This allowed thousands of actors and directors to be employed, among them were Orson Welles, and John Huston. Many of the images appeared in popular magazines. The photographers were under instruction from Washington as to what overall impression the New Deal wanted to give out.
Director Roy Stryker 's agenda focused on his faith in social engineering , the poor conditions among cotton tenant farmers and the very poor conditions among migrant farm workers—above all he was committed to social reform through New Deal intervention in people's lives. Stryker demanded photographs that "related people to the land and vice versa" because these photographs reinforced the RA's position that poverty could be controlled by "changing land practices". Though Stryker did not dictate to his photographers how they should compose the shots, he did send them lists of desirable themes, such as "church", "court day", "barns".
Films of the late New Deal era such as Citizen Kane ridiculed so-called "great men" while the heroism of the common man appeared in numerous movies, such as The Grapes of Wrath Thus in Frank Capra 's famous films, including Mr. Smith Goes to Washington , Meet John Doe and It's a Wonderful Life , the common people come together to battle and overcome villains who are corrupt politicians controlled by very rich, greedy capitalists.
By contrast, there was also a smaller but influential stream of anti-New Deal art. Gutzon Borglum 's sculptures on Mount Rushmore emphasized great men in history his designs had the approval of Calvin Coolidge. Gertrude Stein and Ernest Hemingway disliked the New Deal and celebrated the autonomy of perfected written work as opposed to the New Deal idea of writing as performative labor. The Southern Agrarians celebrated a premodern regionalism and opposed the TVA as a modernizing, disruptive force. Cass Gilbert , a conservative who believed architecture should reflect historic traditions and the established social order, designed the new Supreme Court building Its classical lines and small size contrasted sharply with the gargantuan modernistic federal buildings going up in the Washington Mall that he detested.
The New Deal had many programs and new agencies, most of which were universally known by their initials. Most were abolished during World War II while others remain in operation today. They included the following:. From Wikipedia, the free encyclopedia. This article is about the United States economic program. For other uses, see New Deal disambiguation. The TVA signed into law in Top right: President Roosevelt led the New Dealers; Bottom: A public mural from arts program of the WPA.
Economic development Broad measures Economic growth Empirical evidence Direct democracy Freedom of movement Human enhancement Idea of Progress Industrialisation Linear history Modernity Philosophical progress Philosophy of progress Progressive education in Latin America Progressive rationalism Reform movement Social organization Social progress List of countries Scientific progress Social change Sustainable design Ecological engineering Self-determination Scientific management Scientific method Sustainable development Technological change Techno-progressivism Welfare Women's suffrage.
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