Chapter 26: Franklin Roosevelt and the New Deal 1932-1941
Summary
The Rise of Franklin Roosevelt
Franklin Roosevelt was a wealthy, well-educated, and popular politician whose history of polio made him a more sympathetic figure to the public. He did not share any specifics of his plan to bring the country out of the Great Depression, but his attitude of optimism and possibility contrasted strongly with Hoover’s defeated misery. The 1932 election was never really in question, and Roosevelt won in a landslide. During the four-month interregnum, however, Americans continued to endure President Hoover’s failed policies, which led the winter of 1932–1933 to be the worst of the Depression, with unemployment rising to record levels.
When Roosevelt took office in March 1933, he infused the country with a sense of optimism. He still did not have a formal plan but rather invited the American people to join him in the spirit of experimentation. Roosevelt did bring certain beliefs to office: the belief in an active government that would take direct action on federal relief, public works, social services, and direct aid to farmers. But as much as his policies, Roosevelt’s own personality and engaging manner helped the country feel that they were going to get back on track.
The First New Deal
After assuming the presidency, Roosevelt lost no time in taking bold steps to fight back against the poverty and unemployment plaguing the country. He immediately created a bank holiday and used the time to bring before Congress legislation known as the Emergency Banking Act, which allowed federal agencies to examine all banks before they reopened, thus restoring consumer confidence. He then went on, in his historic first hundred days, to sign numerous other significant pieces of legislation that were geared towards creating jobs, shoring up industry and agriculture, and providing relief to individuals through both refinancing options and direct handouts. Not all of his programs were effective, and many generated significant criticism. Overall, however, these programs helped to stabilize the economy, restore confidence, and change the pessimistic mindset that had overrun the country.
The Second New Deal
Despite his popularity, Roosevelt had significant critics at the end of the First New Deal. Some on the right felt that he had moved the country in a dangerous direction towards socialism and fascism, whereas others on the left felt that he had not gone far enough to help the still-struggling American people. Reeling after the Supreme Court struck down two key pieces of New Deal legislation, the AAA and NIRA, Roosevelt pushed Congress to pass a new wave of bills to provide jobs, banking reforms, and a social safety net. The laws that emerged—the Banking Act, the Emergency Relief Appropriation Act, and the Social Security Act—still define our country today.
Roosevelt won his second term in a landslide and continued to push for legislation that would help the economy. The jobs programs employed over eight million people and, while systematic discrimination hurt both women and African American workers, these programs were still successful in getting people back to work. The last major piece of New Deal legislation that Roosevelt passed was the Fair Labor Standards Act, which set a minimum wage, established a maximum-hour workweek, and forbade child labor. This law, as well as Social Security, still provides much of the social safety net in the United States today.
While critics and historians continue to debate whether the New Deal ushered in a permanent change to the political culture of the country, from one of individualism to the creation of a welfare state, none deny the fact that Roosevelt’s presidency expanded the role of the federal government in all people’s lives, generally for the better. Even if the most conservative of presidential successors would question this commitment, the notion of some level of government involvement in economic regulation and social welfare had largely been settled by 1941. Future debates would be about the extent and degree of that involvement.