Franklin Delano Roosevelt & The New Deal: Successful or Not? *** Jacob Schulman March/April 2008 AP American History Mr. Davis “If you treat people right they will treat you right... ninety percent of the time.” ‐Franklin Delano Roosevelt AP United States History 2008 Free­Response Questions The College Board: Connecting Students to College Success
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2008 AP UNITED STATES HISTORY FREE­RESPONSE QUESTIONS UNITED STATES HISTORY
SECTION II
Part A
(Suggested writing time—45 minutes)
Percent of Section II score—45
Directions: The following question requires you to construct a coherent essay that integrates
your interpretation of Documents A-K and your knowledge of the period referred to in the
question. High scores will be earned only by essays that both cite key pieces of evidence from the
documents and draw on outside knowledge of the period.
1. To what extent was Franklin Roosevelt’s “New Deal” successful in alleviating the problems created by the Great Depression in the period from 1929‐1940. In your response, be sure to evaluate any and all opinions to this statement. Document A Source: Roosevelt, Franklin D. “First Inaugural Address.” March 4, 1933. American Inaugurals. Rubinstein, Harry. New York: Thomson Gale, 2003. 226‐228. “This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—
nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance…Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men.” Document B Source: Roosevelt, Franklin D. “First Fireside Chat: The Banking Crisis.” March 12, 1933. “This bank holiday, while resulting in many cases in great inconvenience, is affording us the opportunity to supply the currency necessary to meet the situation. …no sound bank is a dollar worse off than it was when it closed its doors last week… The new law allows the twelve Federal Reserve Banks to issue additional currency on good assets…the banks that reopen will be able to meet every legitimate call. The new currency is being sent …to every part of the country. It is sound currency because it is backed by actual, good assets.” ‐ 1 ‐ 2008 AP UNITED STATES HISTORY FREE­RESPONSE QUESTIONS Document C Source: Hill, T. Arnold. “An Emergency is On!” September 1933. “NEGRO workers are being discharged by employers whose belief in white supremacy will not tolerate their paying Negroes a wage equal to that paid whites…some are suggesting that the codes of the National Industrial Recovery Act provide a dual wage scale—one that will allow the option of paying a smaller wage to Negroes than to whites. Such a position is economically unsound and socially unjust…This condition will tend to perpetuate the age‐old strife between the two groups and make for actual warfare at a time when it takes little to forment either racial or industrial discord… …It is impossible to have national recovery as long as one‐ninth of the nation’s workers are not given the opportunity to recover.” Document D Source: Kirby, Rollin. “Back to 1929…Roosevelt is a RED!” 1934. ‐ 2 ‐ 2008 AP UNITED STATES HISTORY FREE­RESPONSE QUESTIONS Document E Source: Aubrey Williams, Asst. WPA Administrator and Director of the National Youth Administration. “The Problem of Unemployment.” January 16, 1935. “You and I know that the problem of unemployment does not stem directly from industrial depression. Depression aggravates unemployment and in the present instance has brought it to a nearly unbearable intensity…I do not think you will accuse me of pessimism when I say that unemployment‐‐or better, disemployment‐‐is, like the airplane, the radio, the weather and taxes, here to stay. Civilization has done a great job of marching ahead in the last fifty years but it has been to the harsh, metallic beat of engines. Man has been thrust aside to make way for the machines, and the human carnage has not been reckoned. The stretch‐out, the speed‐up, and the soul‐destroying regimentation of the production line are the grim symbols of our progress, and as they have been applied, a toll in human values has been taken.” Document F Source: “A. L. A. Schechter Poultry Corp. v. United States 295 U.S. 495 (1935).” May 2, 1935. 4. The delegation of legislative power sought to be made to the President by § 3 of the National Industrial Recovery Act of June 16, 1933, is unconstitutional (pp. 529 et seq.), and the Act is also unconstitutional, as applied in this case, because it exceeds the power of Congress to regulate interstate commerce and invades the power reserved exclusively to the States (pp. 542 et seq.). Id., p. 258. But it is evident that, in its widest range, "unfair competition," as it has been understood in the law, does not reach the objectives of the codes which are authorized by the National Industrial Recovery Act. The codes may, indeed, cover conduct which existing law condemns, but they are not limited to conduct of that sort. The Government does not contend that the Act contemplates such a limitation. It would be opposed both to the declared purposes of the Act and to its administrative construction. ‐ 3 ‐ 2008 AP UNITED STATES HISTORY FREE­RESPONSE QUESTIONS Document G Source: US Unemployment Rate Chart from 1929‐1944 via <http://www.fasttrackteaching.com/Charts7_ New_Deal_Unemployment.html>. Data verified with US Census Bureau information database. Document H Source: Epstein, Abraham. “’Social Security’ Under the New Deal.” September 4, 1935. “it was too good to be true. The President spoke of "social security," and who could be against that? True, he did mention "social insurance," but why bother to discover the meaning of so strange a term? Of several hundred articles and newspaper stories on social security appearing during the past year, less than a score attempted an analysis of social insurance Social security was identified with old‐age pensions, for an ardent twenty‐year campaign for old‐age security had brought about a tremendous popular demand for old‐age protection… Its [social security’s] fate now lies with the courts. The federal grants for pensions in old age, to dependent mothers, to the blind, and to varied child‐welfare and public‐health activities are sound and constitutional. They mark truly advanced steps and genuine progress. The unemployment‐insurance and old age contributory insurance plans, however, are administratively and socially unwise.” Document I Source: Roosevelt, Franklin D. “Second Inaugural Address.” Jan 20, 1937. “…we have begun to bring private autocratic powers into their proper subordination to the public’s government. The legend that they were invincible—above and beyond the processes of a democracy—has been shattered. They have been challenged and beaten…we have undertaken to erect on the old foundations a more enduring structure for the better use of future generations.” ‐ 4 ‐ 2008 AP UNITED STATES HISTORY FREE­RESPONSE QUESTIONS Document J Source: Hanes, Richard C., and Hanes, Sharon M. Great Depression and New Deal Primary Sources. New York: Thomson Gale, 2003. Document K Source: Editorial, The New York Herald­Tribune. February 8, 1937. “In this one hundred and sixty‐first year of the independence of the United States, President Roosevelt has brought forward a proposal which, if enacted into law, would end the American State as it has existed throughout the long years of its life. Yet, beneath this veneer of politeness, the brutal fact is that President Roosevelt would pack the Supreme Court with six new justices of his own choosing. No President of the United States ever before made the least gesture toward attempting to gain such a vast grant of power. Mr. Roosevelt demands it, calmly, artfully. By one legislative act, availing himself of the one loophole in the Constitution—the failure to specify the number of members in the Supreme Court—
he would strike at the roots of that equality of the three branches of government upon which the nation is founded, and centralize in himself the control of judicial, as well as executive functions. It was a French King, Louis XIV, who said, "L'etat, c'est moi"—"I am the State." The paper shell of American constitutionalism would continue if President Roosevelt secured the passage of the law he now demands. But it would be only a shell.” ‐ 5 ‐ Jacob Schulman March/April 2008 The Effectiveness of Franklin Roosevelt’s New Deal The Stock Market Crash of 1929 signified the end to an era affectionately known as the “Roaring Twenties” and the “Jazz Age.” Although it wasn’t the only cause of the Depression, it was certainly a major factor in the abrupt ending of an era. The crash, coupled with a trade imbalance, a falling economy, and declining faith in the banks, made a severe financial depression appear imminent. The transition from the booming and upbeat decade of the twenties, to the stark and downtrodden thirties was one of the most significant decade changes in all of American history. The leadership of Herbert Hoover early in this new time was not enough to rally the country after the crash of the economy, and his lack of a genuine desire to help the American people and his hard rugged individualism ideals contributed to his demise in the 1932 presidential election in which he only won six states. However, the rising politician Franklin Roosevelt was able to tap into the hearts of the American people, and he won in a landslide victory. Although polio left him paralyzed from the waist down, he was energetic and forthright in his desire to get the nation back on its feet, even if he couldn’t stand on his own. His set of relief programs, which became known as the “New Deal” would prove to be an extremely effective measure in combating the Depression laden United States. When he accepted the presidency, Roosevelt declared that “the only thing we have to fear is fear itself—…”, words that appealed to a highly vulnerable and uneasy American public (Document A). Although it had its minor setbacks that stemmed partially from its overzealous desires and certain constitutionally flawed programs, for the most part, Roosevelt’s New Deal was extremely effective in addressing and solving Depression problems such as banking, unemployment, and social reform through his “alphabet soup” programs. One of the first obstacles that Roosevelt took on after assuming the presidency was to reinstate faith in the American banking system. This grave task seemed to be impossible at the outset of the Depression, but imperative if the country was to fully recover. In most of his programs, -1-
Roosevelt enlisted the help of the “Brains Trust”, a nickname given to the three Columbia professors that helped advise Roosevelt. Raymond Moley, Rexford Tugwell, and Adolf Berle were skilled economists and bright professors. The nickname was given to them by the New York Times in 1901 (Bondi, 223). “Runs” on the banks had forced thousands of banks to shut their doors due to lack of capital to back their investments. Overnight, millions of Americans had lost not only their fortunes, but also their confidence in the banking system. By 1932, over $2 billion was lost in private accounts, and the money supply contracted by over 31% (Huppi). For a period of time, “scrip” was used as a replacement for money to pay wages because there was simply no money to be used (Phillips, 88). Because of the dire conditions, Roosevelt made it his first priority to get the banks back up and running. In order to facilitate such a momentous task, he ordered a “Bank Holiday” on March 5, 1933, just one day after his inauguration. Immediately, all banks across the nation were ordered to close for a period of time for them to be restructured, only allowed to open upon investigation by the Treasury. (Moser, 58). Roosevelt used his “fireside chats” to get into the homes of millions of Americans via the radio, a tactic that made him seem much more human and more communicable to the average American. His first Fireside Chat, which focused on the banking crisis, assured Americans that the problem would be solved through his new legislation and programs to bring the banks on a solid footing (Bondi, 112). In the chat, he proclaimed that “[the bank holiday] is affording us the opportunity to supply the currency necessary to meet the situation…” and that the new laws would enable the banks to reopen as much sounder, legitimate institutions (Document B). Although he acknowledged that the temporary closing of the banks was an inconvenience, he assured the American public that it would be worth it for the currency to be backed by meaningful assets. While the banks were closed, FDR was able to get Congress to pass the Emergency Banking Act, which provided a means for which the banks to reopen. Upon investigation by the Treasury, banks would be permitted to open once they were sound and had been approved (Hanes, 35). Banks were reopened very swiftly in attempts to get money flowing again. To make people more secure about -2-
allowing their money to be held in banks, the Roosevelt administration passed the Federal Deposit Insurance Corporation, or FDIC. This new government program set out to insure all money in accounts up to $5,000 (Phillips, 84). For the first time, the government was itself guaranteeing the money in banks, and people could finally be at ease knowing that their money was not going to disappear again. As a result of the reforms and improvement to the banking situation, the number of bank failures dropped from over 4,000 in 1933, to less than 500 in 1934 (Blight et al, 708). Roosevelt’s first task had become a major success, and his success would continue when it came to his next big obstacle—unemployment. As a result of the lack of capital and decrease of purchases, employers often had no choice but to lay off workers in attempts to cut even greater losses. As stated by one historian, the Depression was more than just an economic crisis, it was a “personal tragedy for millions of individuals” (McElvaine, 13). The laying off of workers propelled a seemingly endless cycle, because if people were unemployed, they wouldn’t have money to spend and put back into the economy. It quickly became evident that Roosevelt needed to tackle this major overarching issue of unemployment. Aubrey Williams, Assistant WPA Administrator expressed the dire situation in her speech “The Problem of Unemployment” in Buffalo, NY. She simply states, “unemployment…is, like the airplane, the radio, the weather and taxes, here to stay.” She believes that it has been, in part, caused by industrialization and things of that nature, but, nevertheless, it must be solved (Document E). Williams was also a major leader of the National Youth Administration, trying to help kids affected by the Depression (Bondi, 162). As a result, Roosevelt made the unemployment issue an especially major part of the “Second New Deal”, the time period from April 1935 to June 1938 in which he directly responded to his critics, as well. (Hanes, 65). During this time, the government focused on putting people back to work, often employing people themselves instead of relying on the private sector to create more opportunities. The Civilian Conservation Corps, or, CCC, gave jobs to more than two million men in parklands (Hanes,179). The PWA, or Public Works Administration, built -3-
bridges, highways, ports, and roads to get people working again. However, the biggest program in the fight against unemployment was the Works Progress Administration, which was originally called the Work Projects Administration. The WPA employed over 8.5 million people and engaged in numerous public works projects for the nation. The total cost of the program was over $11 billion but it was the boom that the country really needed to stimulate the economy and get people back to work and money moving again (McElvaine, 56). There were countless other programs created to employ more Americans as well. Additional programs created more opportunities for people to get back to work. As seen by the unemployment chart in Document G, after reaching an all time high of about 25% unemployment in 1932, the unemployment rate dropped significantly in the following years, down to just below 15% in 1937. This downward trend helps to signify the progress that the nation was making, and the success that Roosevelt was achieving with his New Deal programs. As people got more jobs, union membership became another hot issue. The National Labor Relations Act, or the Wagner Act, guaranteed collective bargaining and protected workers in unions. This angered big business, and again showed FDR’s allegiance to workers (Hanes, 54). Additionally, the cartoon in Document J, portrays FDR as a doctor, using his countless abbreviations, as “remedies” to cure the sick economy. Roosevelt made it very apparent that he saw employment as a major step towards recovery, and he intended to do anything possible to get people back to work. As more and more people went back to work, additional aspects of the employment situation came into play. Now that people were working again, Roosevelt thought that they deserved some type of government protection and that they ought to be taken care of. One of the biggest programs that concerned peoples’ welfares was the Social Security Act. Social Security has a connotation as being more left‐wing but in reality, the implementation in the US was much more conservative. Frances Perkins, the first woman in a presidential cabinet and FDR’s Secretary of Labor, was a major advocate of the bill (McElvaine, 54). Under this act, both employers and employees would be paying for it, not the government. A tax was placed on wages that would automatically go to that person’s -4-
social security fund. Although it would be helpful to people in the long run, it was somewhat counterproductive because it took away money that people could have used in the current time (Moser, 50). Abraham Epstein, the speaker in Document H, discusses how he believed social security was a retroactive and counterproductive measure. He said that it was “identified with” things like old‐age pensions and things of that nature, but it really didn’t do anything to help. He even goes on to say that the old‐age insurance plans and unemployment insurance aspects of Social Security were “administratively and socially unwise,” and he seemed to think that it would be halted by Supreme Court intervention. Feelings similar to those of Epstein were prevalent during the time period. Employers and big business head honchos were angry about this new legislation; they didn’t believe that it was fair to them. FDR called his critics “economic royalists” and “greedy businessmen” (McElvaine, 59). As more and more of FDR’s “alphabet soup” reform programs were passed, tension grew between the president and his big business counterparts. The Fair Labor Standards Act established, for the first time, a minimum wage, and banned all child labor. To encourage workers to unionize and pursue their best interests, the National Labor Relations Act was passed (McElvaine, 70). This act guaranteed the right to organize and collective bargaining to workers, so that they would be in a better position against managers (Moser, 61). FDR’s programs had certainly made a big splash in terms of workers’ rights, and his advances, although helpful, alienated his administration’s relationship with industry. Although the New Deal was successful with banking and employment, it isn’t to say that there were no major snags for Roosevelt. Issues arose over constitutionality of certain programs, and the Supreme Court intervened on multiple occasions. The National Industrial Recovery Act, or NIRA, was another major foundation of the New Deal. This established the NRA, or National Recovery Administration, which made sure the NIRA was followed. Roosevelt believed that the government had to work cooperatively with business to raise prices by limiting competition so that the economy could start to rally back. The NIRA suspended antitrust laws and mandated certain “codes of fair -5-
competition” that fixed prices and wages to try and help the economy (Bondi). However, with the Supreme Court decision in Schechter Poultry Corp vs US, the NIRA was declared unconstitutional. It was declared that it indeed exceeded the power of Congress “to regulate interstate commerce” and that it was taking over duties that ought to be given to the states (Document F). However, the “sick chicken case” was not the only case in the New Deal that evoked the response of the Supreme Court. In Butler vs US, the AAA was repealed. This act, which originally aimed to increase farm prices by paying farmers to intentionally not farm all of their land, was deemed unconstitutional because the federal government was involving itself in a state issue (Hakim, 103). The act, which was actually detrimental to the status of poorer blacks that sharecropped and were tenant farmers, was formally repealed in 1936. In response to these rulings, FDR was accused of trying to “pack the court” by mandating that justices retire within six months of becoming 70, or an additional justice would be added each six months. This sparked major outrage, and FDR received much bad press for it, and as a result, he backed down from trying to make it actually happen (Hanes, 63‐64). The Editorial in Document K expresses the general feelings pretty well. The author likens FDR’s attempted adding of justices to Louis XIV’s reign in absolutist France. The piece shows how some people thought Roosevelt was becoming a little too powerful, and expresses the doubts that many people had of his increasingly powerful administration. In addition to being plagued by Supreme Court intervention, the New Deal’s effectiveness was restrained by Roosevelt’s constant fighting with big business. In his second inaugural address, Roosevelt declared “…we have begun to bring private autocratic powers into their proper subordination…” and that they were no longer “invincible” (Document I). The pragmatic and worker‐
favoring programs of FDR sowed the seeds for a definite showdown between the titans of industry and the president himself. Angry owners and corporate people called FDR a Socialist, and accused him of trying to destroy American capitalism (Rubinstein, 232). Indeed, big business was able to succeed in some regards due to the rulings in the Schechter and Butler cases. In 1934, a suspected -6-
conspiracy was uncovered that planned to overthrow FDR. “The Business Plot”, or the Plot Against FDR, was the supposed plot of business leaders and companies to try and take out FDR as the president. A committee created to investigate the “Bonus Army” and its march on Washington became the initial foray for the House Un‐American Activities Committee. Testimonials of General Smedley Butler were backed with evidence, but ultimately the investigation was thrown out and deemed to be nothing substantial (Wolfe). However, it goes to show that the pent up tension between FDR and big business was definitely considerable and fully apparent. The political cartoon in Document D accentuates this assertion. The cartoonist links Wall Street, ideals of the 20s, and the Republicans and indirectly hints that no one can find the correct solution. Also, the statements that Roosevelt is “a Red” hint that big business did think that FDR was very socialist in his programs and aid. One last criticism that many people had of FDR was that he didn’t actually have a fully thought out plan. Most believe that he simply tried things and if they worked, continued them, and tried something else if they didn’t. This point is shown in the political cartoon in Document J as well, where FDR says that “…we may have to change remedies if we don’t get results.” The struggle between the FDR administration and big business was one of the major setbacks in the New Deal, and held it back from doing all it could in certain regards. In addition to his problems with big business, FDR was met with some increased anger from minority groups. Blacks, who often worked in the most menial, low‐paying jobs, were usually the last to get hired, and the first to be fired (McElvaine, 121). The speaker in Document C is emotionally aroused by the injustice that he feels. He believes that the NIRA enables big business to lawfully pay black workers less than whites. According to Mr. Hill, and African American man, “such a position is economically unsound and socially unjust.” The arguments of Mr. Hill are by no means unique, and similar problems existed for African Americans all over the country. Although FDR quelled many of the complaints of blacks by openly showcasing his “Black Brain Trust”, or group of African American advisors, Roosevelt refused to sign bills eliminating the poll tax and lynching. Black farmers formed -7-
the Southern Tenant Farmers’ Union in 1934 in an attempt to secure more rights for themselves and to stake their place. Additionally, American Indians benefitted from the New Deal, but only received a fraction of the relief as the majority groups of whites. More money was allotted to the Bureau of Indian Affairs, but it was still barely anything compared to the billions of dollars being spent on white Americans. FDR’s improvements to the banking system, unemployment, and social reforms during the New Deal outweighed the issues that he had with Big Business, Supreme Court intervention, and neglect of minority groups during the time period of reform sparked by the Great Depression. In this incredibly uneasy time for America, Franklin Roosevelt offered support, strength, and hope to the American people. As a result, he was elected four times, more than any other president. Legislation like the FDIC and the Emergency Banking Act were able to restore faith in the banks, and allow people to feel more secure about their money being safe. Countless programs like the CCC and WPA were able to get people back to work and earning money so that they would have more money to spend and put back into the economy. The Social Security Act provided unemployment insurance, old age pension plans, and other similar social reform pieces. Unfortunately, FDR was unable to fully aid ethnic groups, and most minorities were not covered by the reform policies of the New Deal. Additionally, the court‐packing scheme and repealing of multiple New Deal programs showed that FDR was indeed fallible, and that people thought he was assuming too much power for the presidency. Finally, the ongoing struggles with Big Business prevented the New Deal from reaching its full potential, for cooperation could have led to even more help to the normal workers. Although it would ultimately WWII that would pull the US fully out of the economic crisis, FDR and his relief programs were definitely an excellent start and his progress was definitely significant. -8-
WORKS CITED A Historical Reader: The Great Depression. Evanston, IL: nextext, 2002. Williams, Aubrey. “The Problem of Unemployment.” 16 January 1935. 31 March 2008. New Deal Network. (*Document E) Blight, David W. and Norton, Mary Beth, et al. A People and A Nation. New York: Houghton Mifflin Company, 2001. Bondi, Victor. American Decades: 1930‐1939. New York: Gale Research Inc, 1995. “Charting the New Deal and Unemployment.” Fast Track Teaching. 29 March 2008. <http://www.fasttrackteaching.com/Charts7_New_Deal_Unemployment.htm
l> (*Document G) Editorial, The New York Herald­Tribune. February 8, 1937. (*Document K) Epstein, Abraham. “’Social Security’ Under the New Deal.” The Nation (founded 1865). 4 September 1935. 141.3661 (261). <http://newdeal.feri.org/nation/na35261.htm> (*Document H) Hakim, Joy. A History of Us: Book 9‐ War, Peace, and All That Jazz. New York: Oxford University Press, 1999. Hanes, Richard C., and Hanes, Sharon M. Great Depression and New Deal Primary Sources. New York: Thomson Gale, 2003. (*Document J) Hill, T. Arnold. “An Emergency is On!” Opportunity, Journal of Negro Life 11.9 (1933): 280. (*Document C) Huppi, Tom. “Timeline of the Great Depression.” 31 March 2008. <http://www.huppi.com/kangaroo/Timeline.htm> Kirby, Rollin. “Back to 1929…Roosevelt is a RED!” Cartoon. 1934. The Depression and the New Deal: A History in Documents. Ed. Oxford University Press, New York, NY. (*Document D) Moser, John E. The President’s Position: Debating The Issues‐ Presidents from Hoover Through Truman, 1929‐1953. Vol. 5. Westport, Connecticut: Greenwood Press, 2002. McElvaine, Robert S. The Depression and New Deal: A History in Documents. New York: Oxford University Press, 2000. New Deal Network. “A. L. A. Schechter Poultry Corp. v. United States 295 U.S. 495 (1935).” May 2, 1935. 26 March 2008. <http://newdeal.feri.org/court/295US495.htm> (*Document F) Our Documents: 100 Milestone Documents from the National Archives. New York: Oxford University Press, 2003. Roosevelt, Eleanor. “In Defense of Curiosity.” Great Depression and New Deal Primary Sources. Hanes, Richard C., and Hanes, Sharon M. New York: Phillips, Cabell. “The First One Hundred Days.” A Historical Reader: The Great Depression. Evanston, IL: nextext, 2002. 83‐98. Roosevelt, Franklin D. “First Inaugural Address.” American Inaugurals. Rubinstein, Harry. New York: Thomson Gale, 2003. 226‐228. (*Document A) Roosevelt, Franklin D. “Second Inaugural Address.” American Inaugurals.
Rubinstein, Harry. New York: Thomson Gale, 2003. 229‐233. (*Document I) Rubinstein, Harry. American Inaugurals. Rubinstein, Harry. New York: Thomson Gale, 2003. Williams, Aubrey. “The Problem of Unemployment.” (*Document E) Wolfe, L. “FDR vs The Banks: Morgan’s Fascist Plot, and How It Was Defeated.” The American Almanac. 27 June 1994. 3 April 2008. <http://www.members.tripod.com/american_almanac/morgan1.htm>