The New Deal: Crash Course US History #34

CrashCourse
18 Oct 201314:56

Summary

TLDRIn this episode of CrashCourse U.S. history, John Green explores the New Deal, President Franklin D. Roosevelt's ambitious response to the Great Depression. The New Deal transformed the role of the federal government, redefining American expectations and leading to a realignment within the Democratic Party. It introduced relief, recovery, and reform programs, including Social Security and the National Labor Relations Act. While it didn't end the Depression, it fundamentally altered American politics and the perception of government responsibility, emphasizing security over limited intervention.

Takeaways

  • 😀 The New Deal was a series of government programs initiated by President Franklin D. Roosevelt in response to the Great Depression, aiming to provide relief, recovery, and reform.
  • 🤔 The effectiveness of the New Deal in ending the Great Depression is debated, with some suggesting that it did not fully resolve the economic crisis but rather World War II did.
  • 🏛️ The New Deal redefined the role of the federal government in American life, leading to a realignment of political constituents within the Democratic Party, known as the New Deal coalition.
  • 📊 The New Deal can be categorized by its functions: relief programs for the needy, recovery programs to stimulate the economy, and reform programs to regulate the economy and prevent future depressions.
  • 📈 The New Deal was divided into phases, with the First New Deal encompassing programs before 1935, many of which were passed in the first hundred days of FDR's presidency.
  • 🏭 Notable programs included the Civilian Conservation Corps, the Agricultural Adjustment Act, the Glass-Steagall Act, and the National Industrial Recovery Act, which established the National Recovery Administration.
  • 🚫 The Supreme Court initially struck down key New Deal acts like the AAA and NIRA, but later began upholding them, marking a shift in the interpretation of government economic regulation.
  • 👷‍♂️ The Works Progress Administration (WPA) and the Tennessee Valley Authority (TVA) were significant for their impact on employment and infrastructure, although they were controversial for government competition with private enterprise.
  • 🛠️ The Second New Deal shifted focus towards economic security, with landmark legislation like the National Labor Relations Act (Wagner Act) and the Social Security Act, which had profound effects on workers' rights and social welfare.
  • 🔗 The New Deal's impact extended to American politics, solidifying the Democratic Party's support from various groups including African Americans, union workers, and middle-class homeowners.
  • 🌐 The New Deal changed American expectations of government, establishing the idea that the government should intervene in times of economic distress and that liberty is linked to security.

Q & A

  • What was the New Deal and why was it introduced?

    -The New Deal was a series of government programs introduced by President Franklin D. Roosevelt in response to the Great Depression. It aimed to provide relief to the unemployed and poor, recovery of the economy, and reform of the financial system to prevent future depressions.

  • What were the three R's of the New Deal?

    -The three R's of the New Deal were relief, recovery, and reform. Relief programs provided aid to those in need, recovery programs aimed to fix the economy in the short run and put people back to work, and reform programs were designed to regulate the economy to prevent future depressions.

  • What was the significance of the National Industrial Recovery Act (NIRA)?

    -The National Industrial Recovery Act established the National Recovery Administration (NRA), which aimed to coordinate industry standards for production, prices, and working conditions. It was part of the New Deal's recovery programs, intended to stimulate economic growth and improve labor conditions.

  • How did the New Deal redefine the role of the federal government in the lives of Americans?

    -The New Deal expanded the role of the federal government by introducing a range of programs that directly affected citizens' lives, such as Social Security, unemployment insurance, and public works projects. It led to a realignment of constituents in the Democratic Party and a shift in American expectations of government involvement in economic and social welfare.

  • What was the Tennessee Valley Authority (TVA) and why was it controversial?

    -The Tennessee Valley Authority was a program that built a series of dams in the Tennessee River Valley to control floods, prevent deforestation, and provide cheap electricity to rural areas. It was controversial because it put the government in direct competition with private companies.

  • What was the Agricultural Adjustment Act (AAA) and why was it contentious?

    -The Agricultural Adjustment Act gave the government the power to raise farm prices by setting production quotas and paying farmers to reduce crop production. It was contentious because it seemed absurd to hungry Americans who saw food being destroyed while they were in need, and it primarily benefited property-owning farmers, excluding many African American tenant farmers and sharecroppers.

  • How did the New Deal change the American Democratic Party?

    -The New Deal created a new coalition within the Democratic Party, bringing together urban progressives, unionized workers, left-wing intellectuals, urban Catholics and Jews, middle-class homeowners, and African Americans. This realignment made the Democratic Party more diverse and influential in American politics.

  • What was the impact of the National Labor Relations Act, also known as the Wagner Act?

    -The Wagner Act guaranteed workers the right to unionize and established a National Labor Relations Board to hear disputes over unfair labor practices. It led to a significant increase in union membership and played a crucial role in shaping the ideology of the Second New Deal.

  • What was the Social Security Act of 1935 and why was it significant?

    -The Social Security Act of 1935 established a system of social insurance that included unemployment insurance, aid to the disabled, aid to poor families with children, and retirement benefits. It marked a transformation in the relationship between the federal government and American citizens, establishing the expectation that the government should provide economic security.

  • How did the New Deal affect the concept of liberty in the United States?

    -The New Deal expanded the definition of liberty by linking it more closely to security rather than freedom from government intervention. It introduced the idea that a large, active state could provide greater security for the average person, which is still influential in contemporary discussions about the role of government and individual freedom.

  • What was the role of the Works Progress Administration (WPA) in the New Deal?

    -The Works Progress Administration was a government employment program that provided jobs for millions of Americans, funded through public works projects such as building post offices, creating murals, and supporting arts and theater. It was a key component of the New Deal's relief and recovery efforts.

Outlines

00:00

😀 Introduction to the New Deal

The video script introduces the New Deal, a series of government programs initiated by President Franklin D. Roosevelt in response to the Great Depression. It humorously addresses the controversial nature of the New Deal, questioning whether it ended the Depression or impacted American freedom. The script sets the stage for a discussion on the role of the federal government, the re-alignment of the Democratic Party, and the long-term significance of the New Deal in American history. It also highlights the political context of the 1932 election, where FDR's promise of a government guarantee for a comfortable living won him the presidency and a Democratic Congress.

05:03

🏭 The New Deal's Programs and Controversies

This paragraph delves into the specifics of the New Deal, categorizing its programs into relief, recovery, and reform initiatives. Relief programs provided financial aid to the needy, recovery programs aimed to stabilize the short-term economy and create jobs, while reform programs sought to regulate the economy to prevent future depressions. The script discusses the National Industrial Recovery Act, the Agricultural Adjustment Act, and the Tennessee Valley Authority, among others, highlighting their purposes and the controversies they sparked, such as the AAA's impact on farmers and the NIRA's challenge to constitutional norms. It also touches on the Supreme Court's initial resistance to these programs and the subsequent shift in jurisprudence that allowed for greater government regulation of the economy.

10:03

🛠️ The Evolution of the New Deal and Its Impact on American Society

The final paragraph examines the evolution of the New Deal from an emphasis on economic recovery to a focus on economic security, marked by significant legislation like the Wagner Act and the Social Security Act. It discusses the rise of unions and their influence on New Deal policies, the introduction of unemployment insurance, and the transformative effect of the Social Security Act on the relationship between the government and citizens. The script also reflects on the political realignment brought by the New Deal, creating a new Democratic coalition and altering the expectations of Americans regarding government intervention in times of crisis. It concludes by emphasizing the New Deal's lasting impact on American politics and the perception of liberty and government responsibility.

Mindmap

Keywords

💡New Deal

The New Deal refers to a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s in response to the Great Depression. It fundamentally redefined the role of the federal government in the American economy and society, aiming to provide relief, recovery, and reform. In the video, the New Deal is the central theme, with its various programs and effects on American history being discussed in depth.

💡Great Depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. It led to widespread unemployment and economic hardship. In the script, the Great Depression is the context for the New Deal, illustrating the crisis that necessitated government intervention and the various programs that were implemented to combat the economic downturn.

💡National Recovery Administration (NRA)

The National Recovery Administration was a key component of the New Deal, established to create public-private partnerships to coordinate industry standards for production, prices, and working conditions. It aimed to increase industrial production, raise wages, and reduce unemployment. The script humorously distinguishes it from other acronyms but emphasizes its role in the New Deal's recovery efforts.

💡Relief

In the context of the New Deal, 'relief' refers to the government programs aimed at providing immediate assistance, usually in the form of money, to those in need during the Great Depression. The script mentions relief programs as part of the three R's, highlighting their importance in offering aid to the poor and unemployed.

💡Recovery

Recovery programs within the New Deal were designed to stimulate the economy in the short run and put people back to work. The script discusses the Civilian Conservation Corps and the Public Works Administration as examples of such programs, illustrating the government's efforts to revitalize the economy and provide employment opportunities.

💡Reform

Reform programs under the New Deal were created to regulate the economy and prevent future depressions through legislation and oversight. The script cites the Glass-Steagall Act and the establishment of the FDIC as examples of reform measures, showing how they aimed to create a more stable financial system and protect individual deposits.

💡First New Deal

The First New Deal refers to the series of programs and legislation passed during the first part of Roosevelt's presidency, particularly in the first hundred days. The script describes this phase as a time of intense legislative activity, resulting in key acts like the Agricultural Adjustment Act and the National Industrial Recovery Act.

💡Second New Deal

The Second New Deal represents a shift in focus towards economic security and long-term reform, with significant legislation such as the Social Security Act and the National Labor Relations Act. The script explains how this phase built upon the First New Deal, emphasizing the government's role in providing economic security for its citizens.

💡Supreme Court

The Supreme Court of the United States plays a significant role in the script as it initially struck down key New Deal acts like the AAA and NIRA, leading to a constitutional crisis and FDR's controversial court-packing plan. The script discusses the Court's eventual shift to uphold New Deal laws, marking a new era in American jurisprudence.

💡Works Progress Administration (WPA)

The WPA was a major New Deal agency that provided jobs for millions of unemployed people through public works projects, including the construction of public buildings and roads, as well as support for artists and writers. The script highlights the WPA as a successful employment program that left a lasting impact on American infrastructure and culture.

💡Keynesian Economics

Keynesian economics is an economic theory提倡 by John Maynard Keynes, which suggests that government intervention and deficit spending can be used to stabilize the economy during recessions. The script mentions that the U.S. government under FDR embraced this idea, indicating a shift in economic policy that influenced the New Deal's approach to combating the Depression.

Highlights

The New Deal was a set of government programs intended to fix the Great Depression and prevent future depressions.

The New Deal redefined the role of the federal government for most Americans and led to a re-alignment of the Democratic Party's constituents.

FDR's campaign suggested the government's responsibility to guarantee every man a right to make a comfortable living, without specifying how.

The New Deal included an end to Prohibition, providing tax revenue and relief for Americans.

The New Deal was categorized by its function into relief, recovery, and reform programs.

The National Industrial Recovery Act established the National Recovery Administration, aiming for government and business cooperation.

The New Deal's programs were also divided into phases, with the First New Deal comprising Roosevelt's programs before 1935.

The Supreme Court struck down the AAA and NIRA, leading to FDR's controversial court-packing plan.

The Second New Deal shifted focus towards economic security with significant laws like the Wagner Act and the Social Security Act.

The Wagner Act guaranteed workers the right to unionize and created the National Labor Relations Board.

The Social Security Act of 1935 marked a transformation in the relationship between the federal government and American citizens.

The New Deal changed American expectations of government, leading to a belief that the government should intervene in times of economic distress.

FDR's policies brought together a diverse coalition, including urban progressives, unionized workers, and middle-class homeowners.

The New Deal's impact on American politics solidified the Democratic Party's support from African Americans and union workers.

The New Deal is considered important because it changed the shape of the American Democratic Party and our way of thinking about government intervention.

Economic historians believe that World War II, a massive government spending program, ultimately ended the Depression.

The New Deal's legacy includes the idea that liberty is more closely linked to security than to freedom from government intervention.

Transcripts

play00:00

Episode 34 – The New Deal

play00:01

Hi, I’m John Green, this is CrashCourse U.S. history, and today we’re going to get

play00:03

a little bit controversial, as we discuss the FDR administration’s response to the

play00:07

Great Depression: the New Deal.

play00:08

That’s the National Recovery Administration, by the way, not the National Rifle Association

play00:13

or the No Rodents Allowed Club, which I’m a card-carrying member of.

play00:16

Did the New Deal end the Depression (spoiler alert: mehhh)?

play00:20

More controversially, did it destroy American freedom or expand the definition of liberty?

play00:25

In the end, was it a good thing?

play00:27

Mr. Green, Mr. Green.

play00:28

Yes.

play00:29

Ohh, Me from the Past, you are not qualified to make that statement.

play00:32

What?

play00:33

I was just trying to be, like, provocative and controversial.

play00:35

Isn’t that what gets views?

play00:37

You have the worst ideas about how to make people like you.

play00:39

But anyway, not EVERYTHING about the New Deal was controversial.

play00:42

This is CrashCourse, not TMZ.

play00:48

intro The New Deal redefined the role of the federal

play00:54

government for most Americans and it led to a re-alignment of the constituents in the

play00:59

Democratic Party, the so-called New Deal coalition.

play01:01

(Good job with the naming there, historians.)

play01:03

And regardless of whether you think the New Deal meant more freedom for more people or

play01:07

was a plot by red shirt wearing Communists, the New Deal is extremely important in American

play01:13

history.

play01:14

Wait a second.

play01:15

I’m wearing a red shirt.

play01:16

What are you trying to say about me, Stan?

play01:17

As the owner of the means of production, I demand that you dock the wages of the writer

play01:19

who made that joke.

play01:20

So after his mediocre response to the Great Depression, Herbert Hoover did not have any

play01:24

chance of winning the presidential election of 1932, but he also ran like he didn’t

play01:29

actually want the job.

play01:30

Plus, his opponent was Franklin Delano Roosevelt, who was as close to a born politician as the

play01:35

United States has ever seen, except for Kid President.

play01:38

The phrase New Deal came from FDR’s campaign, and when he was running FDR suggested that

play01:42

it was the government’s responsibility to guarantee every man a right to make a comfortable

play01:48

living, but he didn’t say HOW he meant to accomplish this.

play01:51

Like, it wasn’t gonna come from government spending, since FDR was calling for a balanced

play01:54

budget and criticizing Hoover for spending so much.

play01:57

Maybe it would somehow magically happen if we made alcohol legal again and one thing

play02:00

FDR did call for was an end to Prohibition, which was a campaign promise he kept.

play02:05

After three years of Great Depression, many Americans seriously needed a drink, and the

play02:09

government sought tax revenue, so no more Prohibition.

play02:12

FDR won 57% of the vote and the Democrats took control of Congress for the first time

play02:16

in a decade.

play02:17

While FDR gets most of the credit, he didn’t actually create the New Deal or put it into

play02:22

effect.

play02:23

It was passed by Congress.

play02:24

So WTFDR was the New Deal?

play02:27

Basically, it was a set of government programs intended to fix the depression and prevent

play02:31

future depressions.

play02:32

There are a couple of ways historians conceptualize it.

play02:35

One is to categorize the programs by their function.

play02:37

This is where we see the New Deal described as three R’s.

play02:40

The relief programs gave help, usually money, to poor people in need.

play02:44

Recovery programs were intended to fix the economy in the short run and put people back

play02:48

to work.

play02:49

And lastly, the Run DMC program was designed to increase the sales of Adidas shoes.

play02:53

No, alas, it was reform programs that were designed to regulate the economy in the future

play02:58

to prevent future depression.

play02:59

But some of the programs, like Social Security, don’t fit easily into one category, and

play03:04

there are some blurred lines between recovery and reform.

play03:07

Like, how do you categorize the bank holiday and the Emergency Banking Act of March 1933,

play03:12

for example?

play03:13

FDR’s order to close the banks temporarily also created the FDIC, which insures individual

play03:18

deposits against future banking disasters.

play03:20

By the way, we still have all that stuff, but was it recovery, because it helped the

play03:24

short-term economy by making more stable banks, or was it reform because federal deposit insurance

play03:29

prevents bank runs?

play03:31

A second way to think about the New Deal is to divide it into phases, which historians

play03:34

with their A number one naming creativity call the First and Second New Deal.

play03:39

This more chronological approach indicates that there has to be some kind of cause and

play03:42

effect thing going on because otherwise why would there be a second New Deal if the first

play03:46

one worked so perfectly?

play03:47

The First New Deal comprises Roosevelt’s programs before 1935, many of which were passed

play03:52

in the first hundred days of his presidency.

play03:54

It turns out that when it comes to getting our notoriously gridlocked Congress to pass

play03:58

legislation, nothing motivates like crisis and fear.

play04:02

Stan can I get the foreshadowing filter?

play04:05

We may see this again.

play04:06

So, in a brief break from its trademark obstructionism, Congress passed laws establishing the Civilian

play04:10

Conservation Corps, which paid young people to build national parks, the Agricultural

play04:15

Adjustment Act, the Glass Stegall act, which barred commercial banks from buying and selling

play04:20

stocks, and the National Industrial Recovery Act.

play04:23

Which established the National Recovery Administration, which has lightening bolts in its claws.

play04:28

The NRA was designed to be government planners and business leaders working together to coordinate

play04:33

industry standards for production, prices, and working conditions.

play04:36

But that whole public-private cooperation idea wasn’t much immediate help to many

play04:40

of the starving unemployed, so the Hundred Days reluctantly included the Federal Emergency

play04:45

Relief Administration, to give welfare payments to people who were desperate.

play04:49

Alright.

play04:50

Let’s go to the ThoughtBubble.

play04:51

Roosevelt worried about people becoming dependent on relief handouts, and preferred programs

play04:55

that created temporary jobs.

play04:57

One section of the NIRA created the Public Works Administration, which appropriated $33

play05:02

billion to build stuff like the Triborough Bridge.

play05:05

So much for a balanced budget.

play05:06

The Civil Works Administration, launched in November 1933 and eventually employed 4 million

play05:11

people building bridges, schools, and airports.

play05:15

Government intervention reached its highest point however in the Tennessee Valley Authority.

play05:19

This program built a series of dams in the Tennessee River Valley to control floods,

play05:23

prevent deforestation, and provide cheap electric power to people in rural counties in seven

play05:28

southern states.

play05:29

But, despite all that sweet sweet electricity, the TVA was really controversial because it

play05:33

put the government in direct competition with private companies.

play05:37

Other than the NIRA, few acts were as contentious as the Agricultural Adjustment Act.

play05:42

The AAA basically gave the government the power to try to raise farm prices by setting

play05:47

production quotas and paying farmers to plant less food.

play05:50

This seemed ridiculous to the hungry Americans who watched as 6 million pigs were slaughtered

play05:54

and not made into bacon.

play05:57

Wait, Stan, 6 million pigs?

play06:00

But…bacon is good for me...

play06:02

Only property owning farmers actually saw the benefits of the AAA, so most African American

play06:06

farmers who were tenants or sharecroppers continued to suffer.

play06:10

And the suffering was especially acute in Oklahoma, Texas, Kansas, and Colorado, where

play06:15

drought created the Dust Bowl.

play06:17

All this direct government intervention in the economy was too much for the Supreme Court.

play06:21

In 1936 the court struck down the AAA in U.S. v. Butler.

play06:25

Earlier in the Schechter Poultry case (AKA the sick chicken case - finally a Supreme

play06:29

Court case with an interesting name) the court invalidated the NIRA because its regulations

play06:35

“delegated legislative powers to the president and attempted to regulate local businesses

play06:40

that did not engage in interstate commerce.”[1] Thanks, ThoughtBubble.

play06:43

So with the Supreme Court invalidating acts left and right, it looked like the New Deal

play06:47

was about to unravel.

play06:48

FDR responded by proposing a law that would allow him to appoint new Supreme Court justices

play06:53

if sitting justices reached the age of 70 and failed to retire.

play06:57

Now, this was totally constitutional – you can go ahead at the Constitution, if Nicolas

play07:01

Cage hasn’t already swiped it – but it seemed like such a blatant power grab that

play07:05

Roosevelt’s plan to “pack the court” brought on a huge backlash.

play07:09

Stop everything.

play07:10

I’ve just been informed that Nicolas Cage stole the Declaration of Independence not

play07:13

the Constitution.

play07:14

I want to apologize to Nic Cage himself and also everyone involved in the National Treasure

play07:19

franchise, which is truly a national treasure.

play07:22

Anyway, in the end, the Supreme Court began upholding the New Deal laws, starting a new

play07:26

era of Supreme Court jurisprudence in which the government regulation of the economy was

play07:30

allowed under a very broad reading of the commerce clause.

play07:34

Because really isn’t all commerce interstate commerce?

play07:37

I mean if I go to Jimmy John’s, don’t I exit the state of hungry and enter the state

play07:42

of satisfied?

play07:43

Thus began the Second New Deal shifting focus away from recovery and towards economic security.

play07:48

Two laws stand out for their far-reaching effects here, the National Labor Relations

play07:52

Act, also called the Wagner Act, and the Social Security Act.

play07:55

The Wagner Act guaranteed workers the right to unionize and it created a National Labor

play07:59

Relations Board to hear disputes over unfair labor practices.

play08:02

In 1934 alone there were more than 2,000 strikes, including one that involved 400,000 textile

play08:08

workers.

play08:09

Oh, it’s time for the Mystery Document?

play08:10

Man, I wish there were a union to prevent me from getting electrocuted.

play08:14

The rules here are simple.

play08:15

I guess the author of the Mystery Document.

play08:17

And I’m usually wrong and get shocked.

play08:19

“Refusing to allow people to be paid less than a living wage preserves to us our own

play08:24

market.

play08:25

There is absolutely no use in producing anything if you gradually reduce the number of people

play08:30

able to buy even the cheapest products.

play08:33

The only way to preserve our markets is an adequate wage.”

play08:36

Uh I mean you usually don’t make it this easy, but I’m going to guess that it’s

play08:40

Franklin Delano Roosevelt.

play08:42

Dang it!

play08:43

Eleanor Roosevelt?

play08:45

Eleanor.

play08:46

Of course it was Eleanor.

play08:48

Gah!

play08:49

The most important union during the 1930s was the Congress of Industrial Organizations,

play08:53

which set out to unionize entire industries like steel manufacturing and automobile workers.

play08:58

In 1936 the United Auto Workers launched a new tactic called the sit-down strike.

play09:03

Workers at the Fisher Body Plant in Flint, Michigan simply stopped working, sat down,

play09:08

and occupied the plant.

play09:09

Eventually GM agreed to negotiate, and the UAW won.

play09:13

Union membership rose to 9 million people as “CIO unions helped to stabilize a chaotic

play09:18

employment situation and offered members a sense of dignity and freedom.”[2]

play09:23

That quote, by the way, is from our old buddy Eric Foner.

play09:25

God, I love you, Foner.

play09:26

And unions played an important role in shaping the ideology of the second New Deal because

play09:30

they insisted that the economic downturn had been caused by underconsumption, and that

play09:34

the best way to combat the depression was to raise workers’ wages so that they could

play09:39

buy lots of stuff.

play09:41

The thinking went that if people experienced less economic insecurity, they would spend

play09:45

more of their money so there were widespread calls for public housing and universal health

play09:49

insurance.

play09:50

And that brings us to the crowning achievement of the Second New Deal, and/or the crowning

play09:54

achievement of its Communist plot, the Social Security Act of 1935.

play09:58

Social Security included unemployment insurance, aid to the disabled, aid to poor families

play10:03

with children, and, of course, retirement benefits.

play10:05

It was, and is, funded through payroll taxes rather than general tax revenue, and while

play10:10

state and local governments retained a lot of discretion over how benefits would be distributed,

play10:15

Social Security still represented a transformation in the relationship between the federal government

play10:19

and American citizens.

play10:21

Like, before the New Deal, most Americans didn’t expect the government to help them

play10:24

in times of economic distress.

play10:27

After the New Deal the question was no longer if the government should intervene, but how

play10:31

it should.

play10:32

For a while, the U.S. government under FDR embraced Keynesian economics, the idea that

play10:36

the government should spend money even if it means going into deficits in order to prop

play10:40

up demand.

play10:41

And this meant that the state was much more present in people’s lives.

play10:44

I mean for some people that meant relief or social security checks.

play10:47

For others, it meant a job with the most successful government employment program, the Works Progress

play10:52

Administration.

play10:53

The WPA didn’t just build post offices, it paid painters to make them beautiful with

play10:58

murals, it paid actors and writers to put together plays, and ultimately employed more

play11:02

than 3 million Americans each year until it ended in 1943.

play11:05

It also, by the way, payed for lots of photographers to take amazing photographs, which we can

play11:11

show you for free because they are owned by the government so I’m just going to keep

play11:15

talking about how great they are.

play11:16

Oh, look at that one, that’s a winner.

play11:18

Okay.

play11:19

Equally transformative, if less visually stimulating, was the change that the New Deal brought to

play11:23

American politics.

play11:24

The popularity of FDR and his programs brought together urban progressives who would have

play11:28

been Republicans two decades earlier, with unionized workers - often immigrants, left

play11:33

wing intellectuals, urban Catholics and Jews.

play11:36

FDR also gained the support of middle class homeowners, and he brought African Americans

play11:40

into the Democratic Party.

play11:41

Who was left to be a Republican, Stan?

play11:43

I guess there weren’t many, which is why FDR kept getting re-elected until, you know,

play11:47

he died.

play11:48

But, fascinatingly, one of the biggest and politically most important blocs in the New

play11:51

Deal Coalition was white southerners, many of whom were extremely racist.

play11:55

Democrats had dominated in the South since the end of reconstruction, you know since

play11:59

the other party was the party of Lincoln.

play12:00

And all those Southern democrats who had been in Congress for so long became important legislative

play12:05

leaders.

play12:06

In fact, without them, FDR never could have passed the New Deal laws, but Southerners

play12:09

expected whites to dominate the government and the economy and they insisted on local

play12:14

administration of many New Deal programs.

play12:16

And that ensured that the AAA and the NLRA would exclude sharecroppers, and tenant farmers,

play12:22

and domestic servants, all of whom were disproportionately African American.

play12:26

So, did the New Deal end the depression?

play12:28

No.

play12:29

I mean, by 1940 over 15% of the American workforce remained unemployed.

play12:33

But, then again, when FDR took office in 1933, the unemployment rate was at 25%.

play12:39

Maybe the best evidence that government spending was working is that when FDR reduced government

play12:44

subsidies to farms and the WPA in 1937, unemployment immediately jumped back up to almost 20%.

play12:51

And many economic historians believe that it’s inaccurate to say that government spending

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failed to end the Depression because in the end, at least according to a lot of economists,

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what brought the Depression to an end was a massive government spending program called

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World War II.

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So, given that, is the New Deal really that important?

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Yes.

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Because first, it changed the shape of the American Democratic Party.

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African Americans and union workers became reliable Democratic votes.

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And secondly, it changed our way of thinking.

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Like, liberalism in the 19th century meant limited government and free-market economics.

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Roosevelt used the term to refer to a large, active state that saw liberty as “greater

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security for the average man.”

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And that idea that liberty is more closely linked to security than it is to, like, freedom

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from government intervention is still really important in the way we think about liberty

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today.

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No matter where they fall on the contemporary political spectrum, politicians are constantly

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talking about keeping Americans safe.

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Also our tendency to associate the New Deal with FDR himself points to what Arthur Schlessinger

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called the “imperial presidency.”

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That is, we tend to associate all government policy with the president.

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Like, after Jackson and Lincoln’s presidencies Congress reasserted itself as the most important

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branch of the government.

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But that didn’t happen after FDR.

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But above all that, the New Deal changed the expectations that Americans had of their government.

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Now, when things go sour, we expect the government to do something.

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We’ll give our last words today to Eric Foner, who never Foner-s it in, the New Deal

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“made the government an institution directly experienced in Americans’ daily lives and

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directly concerned with their welfare.”[3] Thanks for watching.

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I’ll see you next week.

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Crash Course is made with the help of all of these nice people.

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And it is possible because of your support at subbable.com.

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Here at Crash Course we want to make educational video for free, for everyone, forever.

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And that’s possible thanks to your subscription at subbable.com.

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You can make a monthly subscription and the price is up to you.

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It can even be zero dollars although more is better.

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Thanks so much for watching Crash Course and as we say in my hometown, don’t forget to

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be awesome.

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________________ [1] Foner.

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Give me Liberty ebook version p. 870 [2] Foner.

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Give me Liberty ebook version p. 873 [3] Give me Liberty ebook version p. 898

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Related Tags
New DealFDRGreat DepressionEconomic RecoverySocial SecurityPolitical ShiftLiberty DebateRoosevelt EraGovernment RoleCrashCourse US