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The '''New Deal''' was the name coined by President [[Franklin D. Roosevelt]], a [[Democratic Party|Democrat]], for otherwise disjointed [[Socialism|socialist]] programs he conducted throughout the [[Great Depression]], especially from 1933-36. His program had three aspects: Relief, Recovery and Reform. It sought to provide immediate Relief for the millions of unemployed in the [[Great Depression]]. It was intended to promote Recovery of the economy to normal standards--a goal he did not fully achieve. It involved a series of Reforms, especially in the financial system and labor relations. The basic issue was how to deal with the severely damaged economy --and great social misery--caused by three years of the [[Great Depression]].  Conservatives endorsed parts of the '''First New Deal''' (the 1933 programs)  and rejected the more radical '''Second New Deal''' (the 1934-35 programs). 

The '''New Deal''' was the name coined by President [[Franklin D. Roosevelt]], a [[Democratic Party|Democrat]], for otherwise disjointed programs he conducted throughout the [[Great Depression]], especially from 1933-36. His program had three aspects: Relief, Recovery and Reform. It sought to provide immediate Relief for the millions of unemployed in the [[Great Depression]]. It was intended to promote Recovery of the economy to normal standards--a goal he did not fully achieve. It involved a series of Reforms, especially in the financial system and labor relations. The basic issue was how to deal with the severely damaged economy --and great social misery--caused by three years of the [[Great Depression]].  Conservatives endorsed parts of the '''First New Deal''' (the 1933 programs)  and rejected the more radical '''Second New Deal''' (the 1934-35 programs).   

 

 

The New Deal was popular among voters leading to the formation of the [[New Deal Coalition]], which made the Democrats the majority party during the [[Fifth Party System]] into the 1960s. However a conservative coalition that formed in 1937-38 blocked most additional programs after 1937, and during the war years (1941-45) rolled back many of the relief efforts on the grounds they were no longer needed since full employment was achieved.  The "reforms" that regulated the economy were mostly dropped in the deregulation era (1974-87), except for oversight of Wall Street, which conservatives approved because it increased investor confidence.   

   

   

The [[New Deal Coalition]] dominated national politics until it split apart in the 1960s. Ever since it has been the holy grail of liberals seeking to restore their former glory.

The [[New Deal Coalition]] dominated national politics until it split apart in the 1960s. Ever since it has been the holy grail of liberals seeking to restore their former glory.

Although the New Deal did not fully solve the economic catastrophe that was on the verge of destroying the US economy in early 1933, it achieved many of its objectives and the period of 1933-37 saw some sectors return to economic growth.   

Although the New Deal did not fully solve the economic catastrophe that was on the verge of destroying the US economy in early 1933, it achieved many of its objectives and the period of 1933-37 saw some sectors return to economic growth.   

==Broker State==

==Broker State==

The New Deal created the "Broker State", where different interest groups compete in the national market. The government became a mediator between those interest groups, giving power to those who has enough political and economic power to demand it. One of the limitations of this Broker States was that minority groups were often ignored since they did not have political power.

The New Deal created the "Broker State", where different interest groups compete in the national market. The government became a mediator between those interest groups, giving power to those who has enough political and economic power to demand it. One of the limitations of this Broker States was that minority groups were often ignored since they did not have political power.

==Economic planning==

==Economic planning==

 

As the Depression set in, terms like “[[planned economy]]” and “national planning” became the watchwords of the day. <ref>[http://www.independent.org/publications/article.asp?id=1468 ''FDR: The Man, the Leader, the Legacy''], Ralph Raico, Future of Freedom Foundation, April 1, 2001. Retreived from The Independent Institute.org 06/17/07.</ref> They had been used by theoriticians for years and popularized by best-selling writers like George Soule and Stuart Chase, who lauded the Soviet Gosplan (central planning), asking plaintively, “Why should the Russians have all the fun of remaking a world?” One prominent [[Brain Trust]]ers was [[Rexford Guy Tugwell]]. Tugwell was a follower of the school of thought known as "Institutional Economics". His official position was assistant secretary of agriculture, that is, second in command to [[Henry A. Wallace]], but his influence extended far beyond that. Tugwell had traveled to the Soviet Union in 1927 and observed through scientific economic planning the Soviets were able to “carry out their industrial operations with a completely thought-out program.” “The future,” he announced, “is becoming visible in Russia.”  Tugwell scorned the [[free market]] as anarchical, an uncoordinated muddle of hopelessly conflicting aims and purposes. It would have to be replaced by national planning, or technocracy, another shibboleth of the day, implying rule by the technical experts and managers, <ref>James Burnham, ''The Managerial Revolution'', (1966).</ref> like himself.

 

As the Depression set in, terms like “[[planned economy]]” and “national planning” became the watchwords of the day. <ref>[http://www.independent.org/publications/article.asp?id=1468 ''FDR: The Man, the Leader, the Legacy''], Ralph Raico, Future of Freedom Foundation, April 1, 2001. Retreived from The Independent Institute.org 06/17/07.</ref> They had been used by theoriticians for years and popularized by best-selling writers like George Soule and Stuart Chase, who lauded the Soviet Gosplan (central planning), asking plaintively, “Why should the Russians have all the fun of remaking a world?” The most prominent of the [[Brain Trust]]ers and the man often considered the chief ideologist of the “first New Deal” (roughly, 1933–34), was [[Rexford Guy Tugwell]]. Tugwell was a follower of the school of thought known as Institutional Economics, founded by the eccentric writer on economics, [[Thorstein Veblen]]. His official position was assistant secretary of agriculture, that is, second in command to [[Henry A. Wallace]], but his influence extended far beyond that. Tugwell had traveled to the Soviet Union in 1927 and observed through scientific economic planning the Soviets were able to “carry out their industrial operations with a completely thought-out program.” “The future,” he announced, “is becoming visible in Russia.”  Tugwell scorned the [[free market]] as anarchical, an uncoordinated muddle of hopelessly conflicting aims and purposes. It would have to be replaced by national planning, or technocracy, another shibboleth of the day, implying rule by the technical experts and managers, <ref>''The Managerial Revolution'', James Burnham, Indiana University Press, Bloomingham 1966.</ref> like himself.

   

   

In the spring of 1935, responding to the setbacks in the Court, a new skepticism in Congress, and the growing popular clamor for more dramatic action, the administration proposed or endorsed several important new initiatives. Historians refer to them as the "Second New Deal" and note that it was more radical, more pro-labor and anti-business than the "First New Deal" of 1933-34. The [[National Labor Relations Act]], also known as the '''Wagner Act''', revived and strengthened the protections of collective bargaining contained in the original (and now unconstitutional) NIRA. The result was a tremendous growth of membership in the labor unions comprising the [[American Federation of Labor]]. Labor thus became a major component of the New Deal political coalition.   

In the spring of 1935, responding to the setbacks in the Court, a new skepticism in Congress, and the growing popular clamor for more dramatic action, the administration proposed or endorsed several important new initiatives. Historians refer to them as the "Second New Deal" and note that it was more radical, more pro-labor and anti-business than the "First New Deal" of 1933-34. The [[National Labor Relations Act]], also known as the '''Wagner Act''', revived and strengthened the protections of collective bargaining contained in the original (and now unconstitutional) NIRA. The result was a tremendous growth of membership in the labor unions comprising the [[American Federation of Labor]]. Labor thus became a major component of the New Deal political coalition.   

Roosevelt nationalized unemployment relief through the [[Works Progress Administration]] (WPA), headed by close friend [[Harry Hopkins]].  It created hundreds of thousands of low-skilled blue collar jobs for unemployed men (and some for unemployed women and white collar workers).  Applicants for WPA jobs did not have to be Democrats, but their foremen quickly explained that Roosevelt created their paychecks and that conservative Republicans wanted to abolish the program.   

Roosevelt nationalized unemployment relief through the [[Works Progress Administration]] (WPA), headed by close friend [[Harry Hopkins]].  It created hundreds of thousands of low-skilled blue collar jobs for unemployed men (and some for unemployed women and white collar workers).  Applicants for WPA jobs did not have to be Democrats, but their foremen quickly explained that Roosevelt created their paychecks and that conservative Republicans wanted to abolish the program.   

The [[NYA|National Youth Administration]] was the semi-autonomous WPA program for youth. Its Texas director, [[Lyndon Baines Johnson]], later used the NYA as a model for some of his [[Great Society]] programs in the 1960s.

The [[NYA|National Youth Administration]] was the semi-autonomous WPA program for youth. Its Texas director, [[Lyndon Baines Johnson]], later used the NYA as a model for some of his [[Great Society]] programs in the 1960s.

In the very long run, the most important program of 1935, and perhaps the New Deal as a whole, was the [[Social Security Act]], which established a system of retirement pensions for people in the industrial sector (not including farmers or household workers) and unemployment insurance, as well as welfare benefits for poor families and the handicapped. It established the framework for the U.S. welfare system. Roosevelt insisted that it should be funded by payroll taxes rather than from the general fund; he said, "We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program."  With the [[Unified Budget Act]] <--source--> the Social Security Trust Fund was used to fiance the Vietnam War and Great Society programs.  The original payroll witholding was 1% of the workers gross income, with Roosevelt pledging it would never exceed 3%. Today it 6.2% and 12.4% for self-employed workers - one sixth of a workers lifetime earnings when Medicare is factored in.  The withholding is on the first dollar of income with no deductions or exemptions allowed to offset contributions, and a worker was no claim or control over the assets in his account.  If a worker dies before retirement, his estate has no claim on his lifetime contributions.   

 

In the very long run, the most important program of 1935, and perhaps the New Deal as a whole, was the [[Social Security Act]], which established a system of retirement pensions for people in the industrial sector (not including farmers or household workers) and unemployment insurance, as well as welfare benefits for poor families and the handicapped. It established the framework for the U.S. welfare system. Roosevelt insisted that it should be funded by payroll taxes rather than from the general fund; he said, "We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program."  With the [[Unified budget Act]] <-source-> the Social Security Trust Fund was used to fiance the Vietnam War and Great Society programs.  The original payroll witholding was 1% of the workers gross income, with Roosevelt pledging it would never exceed 3%. Today it 6.2% and 12.4% for self-employed workers - one sixth of a workers lifetime earnings when Medicare is factored in.  The withholding is on the first dollar of income with no deductions or exemptions allowed to offset contributions, and a worker was no claim or control over the assets in his account.  If a worker dies before retirement, his estate has no claim on his lifetime contributions.   

   

   

Social Security remains by far the single largest program driving the growth of [[National Debt]]; since it is value of [[labor]] that is withheld, the more people [[emjployment|employed]], the higher wages are paid. the more hours worked including overtime, all is added to the national debt as a promise by the federal government repay at some future date.  And given that it is labor driving the creation of federal debt, the national debt cannot be paid down by labor.  This is refered to as the "structrual flaw" in the original Social Securioty Act.  Further, FDR's assertion that "no damn politician can ever scrap my social security program" would not withstand a Constitutional challenge.  In American people are born free, and no politician can the pledge that some future Congress elected by free citizens can refuse to honor the promises to pay seniors given that benefits are paid out from current workers earnings on a "pay as you go" basis, and are not held in a trust fund.  

Social Security remains by far the single largest program driving the growth of [[National Debt]]; since it is value of [[labor]] that is withheld, the more people [[emjployment|employed]], the higher wages are paid. the more hours worked including overtime, all is added to the national debt as a promise by the federal government repay at some future date.  And given that it is labor driving the creation of federal debt, the national debt cannot be paid down by labor.  This is refered to as the "structrual flaw" in the original Social Securioty Act.  Further, FDR's assertion that "no damn politician can ever scrap my social security program" would not withstand a Constitutional challenge.  In American people are born free, and no politician can the pledge that some future Congress elected by free citizens can refuse to honor the promises to pay seniors given that benefits are paid out from current workers earnings on a "pay as you go" basis, and are not held in a trust fund.  

   

   

One of the last New Deal agencies was the [[United States Housing Authority]], created in 1937 with some Republican support to abolish slums.

One of the last New Deal agencies was the [[United States Housing Authority]], created in 1937 with some Republican support to abolish slums.

===Defeat: Court Packing and Executive Reorganization===

===Defeat: Court Packing and Executive Reorganization===

See the detailed guide at [[New Deal Bibliography]]

See the detailed guide at [[New Deal Bibliography]]

* Alter, Jonathan. ''The Defining Moment: FDR's Hundred Days and the Triumph of Hope'' (2006), popular account

* Alter, Jonathan. ''The Defining Moment: FDR's Hundred Days and the Triumph of Hope'' (2006), popular account

 

* Badger, Anthony J. ''The New Deal: The Depression Years, 1933-1940.'' (2002) good general survey from British perspective

* Badger, Anthony J. ''The New Deal: The Depression Years, 1933-1940.'' (2002) general survey from British perspective

 

* Best, Gary Dean. ''The Critical Press and the New Deal: The Press Versus Presidential Power, 1933-1938'' (1993) looks at conservative papers and magazines [http://www.questia.com/library/book/the-critical-press-and-the-new-deal-the-press-versus-presidential-power-1933-1938-by-gary-dean-best.jsp online edition]

* Best, Gary Dean. ''The Critical Press and the New Deal: The Press Versus Presidential Power, 1933-1938'' (1993) looks at conservative papers and magazines [http://www.questia.com/library/book/the-critical-press-and-the-new-deal-the-press-versus-presidential-power-1933-1938-by-gary-dean-best.jsp online edition]

 

* Chafe, William H. ''The Achievement of American Liberalism: The New Deal and Its Legacies.'' (2002) [http://www.questia.com/PM.qst?a=o&d=99839056 online edition], liberal peaise

* Chafe, William H. ''The Achievement of American Liberalism: The New Deal and Its Legacies.'' (2002) [http://www.questia.com/PM.qst?a=o&d=99839056 online edition]  

 

* Conkin, Paul K. ''The New Deal.'' (1967), a brief New Left critique.

* Conkin, Paul K. ''The New Deal.'' (1967), a brief New Left critique.

* Dubofsky, Melvyn, ed. ''The New Deal: Conflicting Interpretations and Shifting Perspectives.'' (1992), reader

* Dubofsky, Melvyn, ed. ''The New Deal: Conflicting Interpretations and Shifting Perspectives.'' (1992), reader

* Eden, Robert, ed. ''New Deal and Its Legacy: Critique and Reappraisal'' (1989), essays by conservative scholars

* Eden, Robert, ed. ''New Deal and Its Legacy: Critique and Reappraisal'' (1989), essays by conservative scholars

 

* Graham, Otis L. and Meghan Robinson Wander, eds. ''Franklin D. Roosevelt: His Life and Times.'' (1985). A very useful encyclopedic reference.

* Graham, Otis L. and Meghan Robinson Wander, eds. ''Franklin D. Roosevelt: His Life and Times.'' (1985). An encyclopedic reference.

* Himmelberg, Robert F. ''The Great Depression and the New Deal'' (2001) 185 pp. [http://www.questia.com/PM.qst?a=o&d=101548706 online edition], reader

 

* Kennedy, David M. ''Freedom From Fear: The American People in Depression and War, 1929-1945.'' (1999), the best scholarly overview; [http://www.questia.com/PM.qst?a=o&d=52284041 online edition]  

* Himmelberg, Robert F. ''The Great Depression and the New Deal'' (2001) 185 pp. [http://www.questia.com/PM.qst?a=o&d=101548706 online edition]

 

* Kennedy, David M. ''Freedom From Fear: The American People in Depression and War, 1929-1945.'' (1999), major survey by leading scholar online edition]  

 

* Kirkendall, Richard S. . "The New Deal As Watershed: The Recent Literature," ''The Journal of American History,'' Vol. 54, No. 4. (Mar., 1968), pp. 839-852. [http://links.jstor.org/sici?sici=0021-8723%28196803%2954%3A4%3C839%3ATNDAWT%3E2.0.CO%3B2-F in JSTOR], historiography

* Kirkendall, Richard S. . "The New Deal As Watershed: The Recent Literature," ''The Journal of American History,'' Vol. 54, No. 4. (Mar., 1968), pp. 839-852. [http://links.jstor.org/sici?sici=0021-8723%28196803%2954%3A4%3C839%3ATNDAWT%3E2.0.CO%3B2-F in JSTOR], historiography

 

* Leuchtenberg, William E. ''Franklin D. Roosevelt and the New Deal, 1932-1940''. (1963). The  standard scholarly history.

* Leuchtenberg, William E. ''Franklin D. Roosevelt and the New Deal, 1932-1940''. (1963). The  standard interpretive history.

* McElvaine Robert S. ''The Great Depression'' 2nd ed (1993), social history, by a liberal

 

* McJimsey, George. ''The Presidency of Franklin Delano Roosevelt'', (2000)

* McElvaine Robert S. ''The Great Depression'' 2nd ed (1993), social history

 

* McJimsey, George. ''The Presidency of Franklin Delano Roosevelt'', 2000.

 

* Milkis, Sidney M. and Jerome M. Mileur, eds. ''The New Deal and the Triumph of Liberalism'' (2002)

* Milkis, Sidney M. and Jerome M. Mileur, eds. ''The New Deal and the Triumph of Liberalism'' (2002)

* Mitchell, Broadus. ''Depression Decade: From New Era through New Deal, 1929-1941'' (1964), overview of economic history [http://www.questia.com/PM.qst?a=o&d=98065455 online edition]

* Mitchell, Broadus. ''Depression Decade: From New Era through New Deal, 1929-1941'' (1964), overview of economic history [http://www.questia.com/PM.qst?a=o&d=98065455 online edition]

* Moley, Raymond. ''After Seven Years'' (1939), conservative memoir by ex-Brain Truster [http://www.questia.com/library/book/after-seven-years-by-raymond-moley.jsp online edition]

* Moley, Raymond. ''After Seven Years'' (1939), conservative memoir by ex-Brain Truster [http://www.questia.com/library/book/after-seven-years-by-raymond-moley.jsp online edition]

* Powell, Jim ''FDR's Folly: How Roosevelt and His New Deal Prolonged the Great Depression'' (2003) sharp attack from the right

* Powell, Jim ''FDR's Folly: How Roosevelt and His New Deal Prolonged the Great Depression'' (2003) sharp attack from the right

 

* Shlaes, Amity. ''The Forgotten Man: A New History of the Great Depression'' (2007), 480pp, popular conservative attack

* Shlaes, Amity. ''The Forgotten Man: A New History of the Great Depression'' (2007), 480pp, popular

 

* Sitkoff, Harvard. ed. ''Fifty Years Later: The New Deal Evaluated.'' (1984).  A friendly liberal evaluation.

* Sitkoff, Harvard. ed. ''Fifty Years Later: The New Deal Evaluated.'' (1984).  A friendly liberal evaluation.

==External links==

==External links==

* [http://newdeal.feri.org/ New Deal Network] massive collection of photos and primary sources

* [http://newdeal.feri.org/ New Deal Network] massive collection of photos and primary sources

 

*[http://www.nisk.k12.ny.us/fdr/ FDR cartoon archive] hundreds of editorial cartoons from all political points of view (copyright has expired)

*[http://www.nisk.k12.ny.us/fdr/ FDR cartoon archive] hundreds of editorial cartoons (copyright has expired)

 

* [http://www.digitalbookindex.com/_SEARCH/search010histus20-30sdepressiona.asp online full-text primary sources]

* [http://www.digitalbookindex.com/_SEARCH/search010histus20-30sdepressiona.asp online full-text primary sources]

   

   

[[Category:New Deal]]

[[Category:New Deal]]

[[Category:Great Depression]]

[[Category:Great Depression]]