The New Deal: Crash Course US History #34
Episode 34 The New Deal Hi, Im John Green, this is CrashCourseU.S. history, and today were going to get a little bit contentious, as we discussthe FDR organisations response to the Great Depression: the New Deal. Thats the National Recovery Administration, by the way , not the National Rifle Association or the No Rodents Allowed Club, which Ima card-carrying member of. Did the New Deal boundary the Depression( spoileralert: mehhh )? More controversially, did it destroy Americanfreedom or expand the definition of liberty? In the end, was it a good thing? Mr.Green, Mr. Green. Yes. Ohh, Me from the Past, you are not qualifiedto meet the following statement. What? I was just trying to be, like, provocativeand controversial. Isnt that what does goal? You have the most difficult notions about how to makepeople looks just like you. But regardless , not EVERYTHING about the New Dealwas controversial. This is CrashCourse , not TMZ.intro The New Deal redefined the role played by the federalgovernment for most Americans and it contributed significantly to a re-alignment of the ingredients in theDemocratic Party, the so-called New Deal faction.( Good job with the listing there, historians .) And regardless of whether you think the NewDeal meant greater freedom for more people or was a plot by red shirt wearing Socialists, the New Deal is extremely important in American history. “ve been waiting for”. Im wearing a red shirt. What are you trying to say about me, Stan? As the owner of the means of production, Idemand that you dock the wages of “the authors ” who compiled that joke.So after his mediocre response to the GreatDepression, Herbert Hoover did not have any chance of winning the presidential electionof 1932, but he too flowed like he didnt actually miss the job. Plus, his opponent was Franklin Delano Roosevelt, who was as close to a suffer legislator as the United Nation has ever seen, except for KidPresident. The utterance New Deal came from FDRs expedition, and when he was race FDR suggested that it was the governments responsibility toguarantee all the men a title to make a comfy living, but he didnt say HOW he meant toaccomplish this.Like, it wasnt gonna come from governmentspending, since FDR was calling for a balanced budget and blaming Hoover for spendingso much. Maybe it would somehow magically happen ifwe made alcohol law again and one thing FDR did call for was an end to Prohibition, which was a campaign promise he restrained. After three years of Great Depression, manyAmericans severely needed a liquor, and the authorities concerned tried tax revenue, so no moreProhibition. FDR earned 57% of the vote and the Democratstook control of Congress for the first time in a decade. While FDR gets most of the credit, he didntactually create the New Deal or kept it into influence. It was passed by Congress. So WTFDR was the New Deal? Basically, it was a placed of government programsintended to fix the depression and prevent future depressions.There are a couple of ways historians conceptualizeit. One is to categorize the programs by theirfunction. This is where we watch the New Deal describedas three Rs. The relief programs imparted assistant, generally money, to poor people in need. Recovery platforms were intended to fix theeconomy in the short run and placed people back to work. And lastly, the Run DMC program was designedto increase the sales of Adidas shoes. No, alas, it was reform programs that weredesigned to regulate the economy in the future to prevent future depression.But some of the programs, like Social Security, dont fit easily into one category, and there are some blurred arguments between recoveryand reform. Like, how do you categorize the bank holidayand the Emergency Banking Act of March 1933, for example? FDRs order to close the banks temporarilyalso organized the FDIC, which insures individual lodges against future bank accidents. By the channel, we still have all that stuff, but was it recovery, because it cured the short-term economy by making more stable banks, or was it reform because federal deposit insurance prevents bank rolls? A second acces to think about the New Deal isto divide it into chapters, which historians with their A number one naming creativitycall the First and Second New Deal.This more chronological approach indicatesthat there has to be some kind of cause and effect thing going on because otherwise whywould there be a second New Deal if the first one operated so perfectly? The First New Deal comprises Rooseveltsprograms before 1935, many of which were legislated in the first hundred epoches of his presidency. It turns out that when it comes to gettingour notoriously gridlocked Congress to pass legislation , nothing motivates like crisisand anxiety. Stan can I get the portending filter? We may see this again. So, in a brief break from its mark obstructionism, Congress passed laws establishing the Civilian Conservation Corps, which paid young peopleto build national parks, the Agricultural Adjustment Act, the Glass Stegall act, whichbarred commercial banks from buying and selling furnishes, and the National Industrial RecoveryAct. Which demonstrated the National Recovery Administration, which has lightening bolts in its claws. The NRA was designed to be government plannersand business leaders working together to coordinate industry standards for production, prices, and working conditions. But that entire public-private cooperationidea wasnt much immediate help to many of the deprive unemployed, so the HundredDays reluctantly included the Federal Emergency Relief Administration, to give welfare paymentsto people who were desperate.Alright. Gives go to the ThoughtBubble. Roosevelt worried about people becoming dependenton succor handouts, and preferred programs that procreated temporary jobs. One slouse of the NIRA created the PublicWorks Administration, which proper $33 billion to build stuff like the TriboroughBridge. So much for a balanced budget. The Civil Works Administration, launched inNovember 1933 and eventually applied 4 million people building bridges, schools, and airports. Government intervention reached its highestpoint however in the Tennessee Valley Authority. This program built a series of dikes in theTennessee River Valley to control avalanches, frustrate deforestation, and cater cheap electricpower to beings in the rural areas of provinces in seven southern commonwealths. But, despite all that sweet sweet electricity, the TVA was really controversial because it applied the government in direct rival withprivate fellowships. Other than the NIRA, few achievements were as contentiousas the Agricultural Adjustment Act.The AAA basically handed the government thepower to try to raise farm costs by setting production quotums and farmers to plantless meat. This seemed foolish to the hungry Americanswho watched as 6 million boars were slaughtered and not manufactured into bacon. Wait, Stan, 6 million pigs? Butbacon is good for me … Only property owning farmers actually sawthe benefits of the AAA, so most African American farmers who were holders or sharecropperscontinued to suffer. And the agony was especially acute inOklahoma, Texas, Kansas, and Colorado, where drought composed the Dust Bowl. All this direct government intervention inthe economy was too much for the Supreme Court.In 1936 the court struck down the AAA in U.S.v. Butler. Earlier in the Schechter Poultry case( AKAthe sick chicken case – ultimately a Supreme Court case with an interesting name) the courtinvalidated the NIRA because its regulations delegated legislative powers to the presidentand attempted to regulate regional occupations that did not engage in interstate exchange .[ 1] Thanks, ThoughtBubble. So with the Supreme Court invalidating actsleft and right, it looked like the New Deal was just going to untangle. FDR responded by proposing a principle that wouldallow him to appoint brand-new Supreme court rights if sitting justices reached the age of 70 and failed to retire. Now, this was totally constitutional youcan go ahead at the Constitution, if Nicolas Cage hasnt previously swiped it but itseemed like such a blatant power grab that Roosevelts plan to pack the courtbrought on a huge backlash.Stop everything. Ive only been informed that Nicolas Cagestole the Declaration of Independence not the Constitution. I want to apologize to Nic Cage himself andalso everyone involved in the National Treasure franchise, which is truly a national treasure. Anyway, in the end, the Supreme Court beganupholding the New Deal laws, starting a brand-new period of Supreme Court jurisprudence in whichthe government regulation of the economy was allowed under a very broad reading of thecommerce rider. Because really isnt all commerce interstatecommerce? I mean if I go to Jimmy Johns, dontI exit the nation of hungry and penetrate the mood of satisfied? Thus began the Second New Deal changing focusaway from recovery and towards financial security.Two rules stand out for their far-reachingeffects here, the National Labor Relations Act, also called the Wagner Act, and the SocialSecurity Act. The Wagner Act guaranteed employees the rightto unionize and it generated a National Labor Relations Board to hear disputes over unfairlabor practises. In 1934 alone there were more than 2,000 strikes, including one that involved 400,000 textile proletarians. Oh, its go for the Mystery Document? Man, I please there were a union to preventme from get electrocuted. The regulations here are simple. I suspect the author of the Mystery Document. And Im usually wrong and get shocked.Refusing to allow people to be paid lessthan a living wage preserves to us our own marketplace. There is absolutely no use in producing anythingif you gradually reduce the number of beings able to buy even the cheapest produces. The only behavior to preserve our markets is anadequate wage. Uh I mean you frequently dont make it thiseasy, but Im going to guess that its Franklin Delano Roosevelt. Dang it! Eleanor Roosevelt? Eleanor. Of route it was Eleanor. Gah! The most important union during the 1930 swas the Congress of Industrial Organizations, which set out to unionize part industrieslike sword manufacturing and automobile laborers. In 1936 the United Auto Workers propelled anew tactic called the sit-down strike. Workers at the Fisher Body Plant in Flint, Michigan simply stopped labor, sat down, and occupied the plant.Eventually GM agreed to negotiate, and theUAW won. Union membership rose to 9 million peopleas CIO solidarities helped to stabilize a chaotic hire situation and offered representatives asense of honour and freedom .[ 2] That quote, by the way, is from our old-time buddyEric Foner. God, I love you, Foner. And organizations played an important role in shapingthe dogma of the second New Deal since they are argued that the economic slowdown hadbeen caused by underconsumption, and that the best way to combat the depression wasto raise proletarians incomes so that they could buy lots of stuff. The envisaging went that if parties experiencedless financial insecurity, they would spend more of their coin so there were widespreadcalls for public housing and universal health insurance. And that fetches us to the crowning achievementof the Second New Deal, and/ or the crowning accomplishment of its Communist plot, the SocialSecurity Act of 1935. Social security included unemployment insurance benefits, aid to the incapacitated, aid to poor houses with children, and, of course, retirementbenefits. It was, and is, funded through payroll taxesrather than general tax revenue, and while commonwealth and local governments retained a lotof discretion over how benefits would be distributed, Social security still represented a transformationin the relationship between the federal government and American citizens. Like, before the New Deal, most Americansdidnt expect the government to help them in times of economic distress. After the New Deal the question was no longerif the government should intercede, but how it is desirable to. For a while, the U.S.Government under FDRembraced Keynesian economics, the idea that the government should spend money even ifit entails going into inadequacies in order to prop up demand. And this meant that the state was much morepresent in peoples lives. I mean for some people that required relief orsocial security checks. For others, it signified a errand with the most successfulgovernment employment program, the Works Progress Administration. The WPA didnt time build united states post office, it paid painters to move them beautiful with murals, it paid performers and writers to puttogether frisks, and ultimately utilized more than 3 million Americans every year until itended in 1943. It likewise, by the way, for lots of photographersto take amazing images, which we can show you for free because they are owned bythe government so Im just going to keep talking about how great they are. Oh, look at that one, thats a champion. Okay. Equally transformative, if less visually quickening, was the deepen that the New Deal introduce into American politics. The vogue of FDR and his programs broughttogether metropolitan progressives who would have been Republicans two decades earlier, withunionized craftsmen – often immigrants, left wing intellectuals, urban Catholics and Jews. FDR too gained the support of middle classhomeowners, and he introduced African Americans into the Democratic Party. Who was left to be a Republican, Stan? I approximate there werent numerous, which is whyFDR saved coming re-elected until, you know, he died. But, fascinatingly, one of the biggest andpolitically most important factions in the New Deal Coalition was white-hot southerners, manyof whom were extremely racist.Democrats had reigned in the South sincethe end of renovation, you know since the other party was the working party of Lincoln. And all those Southern democrats who had beenin Congress for so long became important legislative commanders. In actuality, without them, FDR never could havepassed the New Deal laws, but Southerners expected lily-whites to reign the governmentand the economy and they insisted on neighbourhood administered by numerous New Deal programs. And that ensured that the AAA and the NLRAwould exclude sharecroppers, and tenant farmers, and domestic servants, all of whom were disproportionatelyAfrican American. So, did the New Deal tip the depression? No. I symbolize, by 1940 over 15% of the American workforceremained unemployed. But, then again, when FDR took office in 1933, the unemployment rate was at 25%. Maybe the very best evidence that government spendingwas working is that when FDR shortened government subsidies to raises and the WPA in 1937, unemploymentimmediately jump-start back up to approximately 20%. And numerous fiscal historians believe thatits incorrect to say that government spending failed to end the Depression because in theend, at least according to a lot of economists, what brought the Depression to an aim wasa massive government spending program called World War II. So, considering the fact that, is the New Deal genuinely thatimportant? Yes. Because firstly, it converted the shape of theAmerican Democratic Party. African Americans and uniting works becamereliable Democratic referendums. And furthermore, it converted our way of thinking. Like, humanitarianism in the 19 th century meantlimited government and free-market fiscals. Roosevelt worked the term to refer to a large, active state that investigated liberty as greater safety for the average man. And that meaning that liberty is more closelylinked to security than it feels like to, like, democracy from government intervention is still reallyimportant in the way we think about liberty today. No “doesnt matter where” they fell off the contemporarypolitical range, politicians are perpetually talking about impeding Americans safe. Also our tendency to affiliate the New Dealwith FDR himself points to what Arthur Schlessinger called the imperial presidency. That is, we tend to associate all governmentpolicy with the president.Like, after Jackson and Lincolns presidenciesCongress reasserted itself as the most important branch of the government. But that didnt happen after FDR. But above all that, the New Deal changed theexpectations that Americans had of both governments. Now, when things vanish sour, we expect the governmentto do something. Well impart our last word today to EricFoner, who never Foner-s it in, the New Deal reached the government an institution directlyexperienced in Americans daily lives and directly concerned with their welfare .[ 3] Thanks for watching. Ill see you next week. Crash course is become with the help of allof these delightful beings. And it is possible because of your supportat subbable.com. Here at Crash course one wishes to meet educationalvideo for free, for everyone, forever. And thats possible thanks to your subscriptionat subbable.com. You can make a monthly subscription and theprice is up to you.It can even be zero dollars although moreis better. Thanks so much for watching Crash course andas we say in my hometown, dont forget to be awesome. ________________[ 1] Foner. Give me Liberty ebook version p. 870[ 2] Foner. Give me Liberty ebook version p. 873[ 3] Give me Liberty ebook version p. 898.