Judging the New Deal

This section explores the effectiveness of the New Deal. The New Deal, introduced by Franklin D. Roosevelt in the 1930s, is often viewed as a turning point in American history. Supporters argue that the New Deal brought about essential and long-lasting change, offering practical and financial support to millions of Americans and preventing the complete collapse of the US economy. Critics, however, believe that the New Deal fell short of its promises, either going too far or not far enough to address the problems it set out to solve. To assess the effectiveness of the New Deal, it is important to consider its long-term impacts on the economy, society, and different groups of people.

Economic Recovery

Although full employment and prosperity were not restored until 1941, when the US economy geared up for World War II, the New Deal played a crucial role in the recovery process. By the time the war effort began, the economy had improved significantly, thanks to Roosevelt’s policies. Several factors contributed to this recovery:

• Restored confidence in the banking sector and the financial system, as Roosevelt’s policies ensured that only stable and well-managed banks were allowed to reopen following the Emergency Banking Act of 1933.
• Roosevelt’s charisma and his ability to communicate effectively with the American people, particularly through his fireside chats, helped rebuild trust in the government. These radio addresses gave people reassurance and a sense of connection with their president during times of fear and uncertainty.
• The New Deal created jobs and provided financial support for those suffering from unemployment, homelessness, and hunger, which had been rampant during the worst years of the Depression.
• Pensions and insurance for unemployment, which were introduced in 1935, marked a major step in the establishment of a social safety net. Prior to this, the US was the only major industrial country without such provisions. This move helped to provide greater financial security for vulnerable groups, such as the elderly and unemployed.

The Impact of the New Deal on Different Groups

The New Deal had varied impacts on different sections of society, and its benefits were not always equally distributed.

Women

While the New Deal initially did not specifically target women, some programs later provided them with much-needed employment opportunities. However, women still faced significant inequalities, especially in terms of wages and job opportunities:

• Early programs such as the Civilian Conservation Corps (CCC) were mainly aimed at providing work for young men, but later agencies like the Works Progress Administration (WPA) did employ women, though they were generally limited to unskilled jobs.
• The National Recovery Administration (NRA), which sought to regulate wages and working conditions, paid women lower wages than men for the same work, as it was assumed that women were secondary earners in their households. This reflected the prevailing social norms of the time, which expected men to be the primary breadwinners.
• Despite these challenges, Frances Perkins, Roosevelt’s Secretary of Labour, made history as the first woman to hold a cabinet-level position, representing a significant step forward for women in American politics.

Farmers

Farmers were one of the most affected groups during the Great Depression, and the New Deal aimed to offer them much-needed assistance. However, the benefits were not always felt equally across all sectors of agriculture:

• Large-scale farmers were the primary beneficiaries of policies such as the Agricultural Adjustment Agency (AAA), which aimed to raise agricultural prices by paying farmers to reduce production. While this raised prices and farm incomes, the policy also led to the displacement of sharecroppers, particularly in the South, as landowners were encouraged to reduce their labour force to improve farm efficiency.
• The Tennessee Valley Authority (TVA), on the other hand, brought significant improvements to farming in the Tennessee Valley, an area ravaged by soil erosion and flooding. The TVA taught farmers new methods of soil conservation and provided electricity to rural areas, improving agricultural productivity.

However, small farmers and farm workers often did not benefit from the New Deal in the same way. Many continued to live in poverty and faced high levels of displacement as larger agricultural operations thrived.

Workers

The New Deal introduced policies that aimed to improve the lives of skilled and unskilled workers alike. Many of the alphabet agencies were designed to create jobs and improve working conditions:

• The National Recovery Administration (NRA) set standards for wages, working hours, and prices, offering protection to workers in industries that had previously been largely unregulated.
• The 1935 Wagner Act (officially the National Labor Relations Act) was another landmark achievement, as it gave workers the right to form trade unions and bargain collectively with their employers. This marked a significant victory for workers' rights and led to a rise in union membership during the 1930s.
• The New Deal also helped improve working conditions in some industries, but not all workers saw immediate benefits. For example, farm workers and domestic workers were often excluded from union protection.

African Americans

African Americans were disproportionately affected by the Great Depression, and the New Deal’s policies had mixed results for this group:

• The New Deal allocated around 10 per cent of its relief programme budgets to African Americans, and many found work through New Deal agencies, particularly the Works Progress Administration (WPA).
• However, African Americans often faced discrimination and segregation in New Deal programmes. For example, the NRA excluded African Americans from skilled jobs, and the CCC operated segregated camps.
• Roosevelt was reluctant to tackle racial inequality head-on, particularly in the South, where many Democrats supported segregation and white supremacy. As a result, Roosevelt did not push for policies such as a federal anti-lynching bill, which alienated many African American voters.

Despite these challenges, many African Americans began to shift their political allegiance from the Republican Party (the party of Abraham Lincoln, who abolished slavery) to the Democratic Party. This change in political affiliation continued throughout the 20th century.

Native Americans

The Indian New Deal was a major part of Roosevelt’s efforts to improve conditions for Native Americans, and it brought significant changes for many Indigenous communities:

• John Collier, appointed as the Commissioner for Indian Affairs, advocated for the preservation of Native American culture and self-governance, opposing the previous policy of forced assimilation.
• The Indian Reorganization Act of 1934 (also known as the Wheeler-Howard Act) restored a degree of self-government to Native American nations, allowing them to manage their own affairs and communities. The act also provided loans for businesses and created educational opportunities.
• As a result, the death rate among Native Americans declined for the first time in centuries, and their population began to grow. However, many Native American communities still faced high levels of poverty and discrimination, and the full integration of Native American populations into American society remained an ongoing challenge.

The New Deal was a monumental attempt to address the economic and social crises of the Great Depression. While it was successful in many ways, such as restoring confidence in the banking system, creating jobs, and providing relief to vulnerable groups, it was not without its shortcomings. Some groups, like women, African Americans, and small farmers, did not see the full benefits of Roosevelt’s policies. Others, like business leaders and conservative Republicans, opposed the New Deal for its expansive role in the economy.

The New Deal fundamentally reshaped American society and government, introducing key reforms like social security and establishing the welfare state. It laid the groundwork for future social and economic policies, though its true economic recovery was not realised until the mobilisation for World War II.