Episode 11

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Published on:

1st Aug 2025

S2E11 - Great Depression and New Deals

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Transcript
Speaker:

Hello y'all.

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It's me.

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It's me.

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It's Dr.

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G.

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And welcome back to Star Spangled Studies.

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In our last episode, we checked out

the:

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twenties, the decade of innovation

and prosperity, but also a decade that

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seethed with a lot of underlying tension.

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An era that would in spectacular

fashion crash deeply in giving us the

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biggest economic despair in American

history, the Great depression,

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and the bold and controversial and

transformative response of the New Deal.

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So let's go.

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The dawn of the 1920s found the

United States in a peculiar state.

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The nation was emerging from the shadow

of the Great war, A conflict that our

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textbook in chapter 22 highlighted,

and it left it grappling with the

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quote, the shock of World War I,

the explosion of racial violence and

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political repression in 1919, and.

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Bolstered by the Bolshevik

Revolution in Russia, a red

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scare compounding this unease.

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The devastating influenza pandemic

of:

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700,000 Americans leaving an

indelible mark of loss and anxiety.

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Waves of labor strikes in even

anarchist bomb plots further unsettled

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the populace yearning for stability.

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This Desire for calm was a direct

response to decades of profound upheaval.

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The unfulfilled promises of reconstruction

and the Gilded Age cast a long shadow,

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particularly in southern states where

economic vulnerability and entrenched

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racial hierarchies persistent.

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The failure to secure lasting

equality for African Americans

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during that period directly shaped

the racial landscape of the:

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And this subsequent New Deal era with what

our textbook noted that many Americans

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quote, revived with millions of new

members, the Ku Klux Klan end quote.

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Simultaneously, the gilded ages rapid

industrialization had birthed immense

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fortunes, but also stark in inequalities.

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Teaming urban centers grappling

with new social problems and fierce

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conflicts between capital and labor.

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These preexisting fault

lines, racial injustice.

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Economic disparity and social tensions

were the very ground upon which the

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glittering prosperity of the 1920s was

constructed, and ultimately the ground

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that would give way to its collapse.

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If you recall the administrations of

Warren g Harding and his successor,

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Calvin Coolidge firmly steered the

nation towards a pro-business agenda.

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Coolidge famously declared, quote,

the chief business of the American

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people is business End quote.

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This wasn't merely an

endorsement of commerce.

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It was a guiding philosophy that

championed minimal government and

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intervention and prioritized economic

growth above nearly all else.

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Politics, like significant tax cuts

often refer to as the Mellon plan, aim

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to reduce the burden on corporations and

the wealthy, with the belief that this

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would stimulate investment and prosperity.

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High protective tariffs were enacted

to shield American industries from

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foreign competition and a general

trend towards deregulation took hold.

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This era witnessed the

blossoming of the mass consumer

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culture we talked about last.

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Episode a phenomenon intrinsically

linked to the industrial capacity.

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Built in the preceding decades, new

technologies flooded the market,

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automobiles, radios, as well as a host

of household appliances promising to

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transform American life as one farm

wife succinctly put it, when asked

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why her family bought a car before.

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Indoor plumbing, like

I said, last episode.

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Why you can't go to town in a bathtub.

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The automobile in particular

became the symbol of freedom and

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aspiration and fueling all of

this was the advertising industry.

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Ads created the first we need to have

this now and we cannot wait, sort of

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mentality in the consumer culture and

crucially then this became a consumer's

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paradise, but it was accessed then

through expansion of consumer credit.

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If you need to have it now

and you don't have the money.

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You gotta pay with credit.

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The buy now pay later became

the middle class mantra by:

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As I had mentioned last episode, a

staggering 75% of cars were purchased on

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credit, as well as a similar percentage

of radios and furniture followed suit.

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This.

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Coolidge prosperity, as it was known,

was for many a tangible reality in

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rising wages as well as accessible goods.

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Yet this prosperity, while

dazzling on the surface, concealed

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growing economic vulnerabilities.

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The heavy reliance on consumer credit and

installment plans created a prosperity

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that was built on debt, making the

economy exceptionally sensitive to

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any shocks in consumer confidence.

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Or credit availability.

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While wages did rise for some,

they often didn't keep pace with

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the desire for new goods, further

fueling the need for more credit.

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I.

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Thanks advertisers.

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Simultaneously, the pro-business

environment and the strategies like

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welfare, capitalism, where companies

offered benefits to discourage

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unionization, like we saw with Ford, led

to a decline in the power of labor unions.

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This suppression of organized

labor may have kept wedge wages

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from rising more broadly, thus

increasing the dependence on credit.

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To participate in the consumer boom.

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The keeping up with the Joneses

became harder and harder.

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Therefore, the glittering prosperity

of the roaring twenties was built

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off somewhat precarious foundation,

widespread debt and the unequal

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distribution of its benefits, leaving

the economy highly susceptible to a

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downturn, and boy did a downturn show up.

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The very industrial production

capacity honed in the Gilded Age now

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churned out goods at an incredibly.

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Debt leverage population and was

urged to consume through advertising,

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but they had to do so without the

broad based purchasing power or the

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robust safety nets to sustain this

model through a significant crisis.

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The roaring twenties with all its

exuberance and excesses came to a

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screeching halt on October 29th, 1929,

a day forever, seared in American memory

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as Black Tuesday, the stock market, which

had climbed two dizzying heights, fueled

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by rampant speculation and easy credit.

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Collapsed as our textbook vividly

describes quote, stock values evaporated.

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Shares of US Steel

dropped from $262 to $22.

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General motor stock fell from $73 a share

to $8 four fifths of John d Rockefeller's

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Fortune the greatest in American history.

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Vanished end quote.

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But the crash itself was more

a symptom than the sole cause

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of the Great Depression.

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Several underlying weaknesses had been

developing throughout the twenties.

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As we had talked about wealth inequality.

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It was stark.

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While per capita income rose,

the wealthiest 1% saw their

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income skyrocket by 75%.

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Benefiting from the conservative tax

policies and easy credit, that channel

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money into speculative investments.

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Rather than a broader economic

foundations domestic demand for durable

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goods like automobiles and radios,

which had fueled much of the decades,

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growth was beginning to saturate.

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By the late 1920s, you really

only needed one radio, and at this

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time, most people only had one car.

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When these products failed to

sell, continuously growing upwards,

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inventories piled up, leading to

production, cutoffs and layoffs.

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In factories further shrinking

consumer purchasing power.

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This all happened before the crash.

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The agricultural sector had actually

been in a state of depression for much

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of the 1920s, not getting into the

boom, as the urban areas tended to

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post-war recovery in Europe, reduced

demand for American farm products and

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domestic overproduction coupled with

widespread soil exhaustion led to falling

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prices and mounting farm foreclosures.

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This rural collapse acted as a

significant drag on the national economy.

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Through the 1920s, you can think of

it this way, a kind of canary in the

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coal mine, and it largely went unheated

by policy makers who were mesmerized

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by industry and financial growth.

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The agricultural crisis was a long

standing, unaddressed problem that

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significantly amplify the impact of the

financial crash when it finally came.

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Internationally.

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President Herbert Hoover signed the

Smoot Harley Tariff in:

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to protect American industries, and

it backfired spectacularly Other

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nations retaliated with their own

tariffs causing international trade.

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To plummet from 36 billion in 1929

billion in:

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This economic nationalism of

tariff battles choked the global

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market at a time when they were

most needed to be cooperating.

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Finally, the human element of

the panic played a critical role

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as fear of a depression spread.

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People rushed to withdraw

their money from banks.

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The Federal Reserve in an attempt to

curb speculation, had raised interest

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rates and tighten credit, which

inadvertently put more pressure on

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banks that were already struggling.

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Bank runs became common, and

th thousands of banks failed.

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The banks went bankrupt and it

wiped out the savings of millions.

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If the bank is bankrupt and can't give

you your money, you don't have any money.

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In 1930 alone, 1,352

banks closed their doors.

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By 1932, that number had

risen to nearly:

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This cascade of failures demonstrated

the profound fragility of a

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financial system built on speculation

and insufficient regulation.

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The devastating consequences of

policies intended to be protectionists.

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In an increasingly

interconnected global economy,

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as the nation spiraled into

economic despair, president Herbert

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Hoover found himself at the helm.

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His philosophy was deeply rooted in

what he termed American individualism.

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And a belief in volunteerism.

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And this shaped his administration's

response to the greatest

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depression we had ever seen.

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In a 1932 speech, as the crisis

deepened and the presidential election,

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loomed Hoover warned against the

proposals of his opponent, Franklin

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d Roosevelt stating quote, I.

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This campaign is more than

a contest between two men.

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It is a contest between two

philosophies of government.

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Opponents are proposing changes

in so-called new deals, which

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would destroy the very foundations

of our American system.

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End quote.

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This captures his ideological

resistance to the kind of large

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scale federal intervention that

many were beginning to demand as

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the depression continued to worsen.

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Initially, Hoover relied on appeals

to private charity and urged

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local and state governments to

take the lead in relief efforts.

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He established one of the most tone

deaf presidential organization names

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the president's organization of UN

on Unemployment Relief, POUR, poor.

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Most people are poor, POOR.

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Terrible job.

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But he established this to coordinate

these voluntary efforts, but private

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charities were quickly overwhelmed

by the sheer scale of the suffering.

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Even as bankers and businessmen urged

more direct federal action, Hoover

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remained hesitant, famously stating in

:

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of a world economic depression End quote.

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His administration did

eventually take some steps.

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The Reconstruction Finance

Corporation, the RFC, which was

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created in 1932, was authorized to

provide emergency loans to banks and

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railroads and other large businesses.

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While this represented a significant

use of direct government aid, it

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was criticized by figures like.

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Congressman Fiorello LaGuardia as a quote,

millionaire's dole because it appeared to

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prioritize financial institutions giving

them money, bailing them out instead

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of the direct needs of the millions

of struggling citizens in the country.

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Some public projects like the Hoover

Dam, though its primary purpose,

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wasn't initially depression relief.

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It became a symbol of such efforts, and

it was also undertaken under Hoovers.

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Presidency.

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Hoover's responses, however, were

fundamentally constrained by his

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deep-seated belief in limited

government and individual self-reliance.

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These ideals traditionally celebrated

in America, proved tragically inadequate

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for the unprecedented systemic crisis

of the Great depression itself.

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Americans.

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Weren't having any of it.

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His associational, a concept he championed

as Secretary of Commerce, which encouraged

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voluntary cooperation between government

and business, lacked the coercive power

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needed to combat the economic free fall.

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Hoover's presidency, thus became a

poignant illustration of the clash

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between cherished American ideals

and the harsh new realities of a

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modern industrial economy in crisis

revealing the profound limitation.

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Of those older ideals.

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The Great Depression was not

an abstract economic event.

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It was a period of profound

human suffering that reshaped the

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lives of millions of Americans.

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Unemployment skyrocketed,

reaching nearly 25%.

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By 1933, higher among African

Americans was closer to 50%

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unemployed, and many more people were.

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Underemployed poverty became a grim

reality for vast swaths of the population.

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Shanty towns mushroomed, and they

were derisively called Hoovervilles,

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and they sprang up on the outskirts

of cities and in public parks.

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They were makeshift shelters for

the homeless and the destitute.

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Added to all of this was the

environmental catastrophe of the

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dust pole in the Great Plains, which

compounded this economic misery, years

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of unsustainable farming practices.

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Encouraged by the earlier push of westward

expansion and agricultural mechanization

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combined with a severe drought turned

fertile farmlands into a barren wasteland.

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Dust storms choked the sky and

they buried homes in black clouds.

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Anne-Marie Lowe in her dust bowl diary

captures the desolation quote, life

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in what the newspapers call the dust

bowl is becoming a gritty nightmare.

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End quote.

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Lawrence Fida, a Kansas farmer

chronicled his own desperate

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struggle against the elements.

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Quote, fighting in the frontline

trenches, putting in crop after crop

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year after year, only to see each crop

in turn destroyed by the elements.

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This crisis was in many ways,

a manmade disaster amplified by

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nature, revealing the ecological and

social vulnerabilities created by

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unchecked agricultural expansion.

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This dual crisis of economic

depression and ecological devastation

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spurred a massive wave of migration.

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Families often referred to as oakies,

even though they came from states

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beyond Oklahoma and included places

like Arkansas, Missouri, and Texas,

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they had lost their farms and they

headed west primarily to California

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in search of work in a new life.

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Their journey was immortalized in John

Steinbeck's:

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wr, and it became a powerful symbol

of the depression's human cost and

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the shattering of the American dream.

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For many Steinbeck had this

to say about his effort.

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Quote, I've done my damnest to

rip the reader's nerves to rags.

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And indeed the novel provoked intense

contemporary reactions, both praise

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for its empathy and condemnation for

its stark betrayal of the suffering.

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The poem, I'd Rather Not Be on

Relief by Lester Hunter himself.

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A Dust Bowl migrant gives voice to the

pride and desperation of these displaced

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workers, and he wrote this quote, we have

to live in lean tos or else we live in a

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tent for when we buy our bread and beans.

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There's nothing left for rent.

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End quote.

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Yet, despite such hardship,

hunter's poem also reflects a

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strong sense for self-sufficiency.

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Quote.

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I'd rather not be on the rolls

of relief or work on the WPA.

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We'd rather work for the farmer if the

farmer could raise the pay end quote.

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Bertha McCall of the National Traveler's

Aid Association testified before

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Congress in 1940 about these moving

people, as she called them, noting that.

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Contrary to popular belief, they were

not simply quote bums and hobos, but

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often quote, enterprising and energetic

individuals and families who had

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been displaced by economic necessity.

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Their plight underscored the systemic

nature of the crisis in the inadequacy

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of existing supports systems.

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Now, the summer of 1932

witnessed a particularly grim

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chapter in Hoover's presidency.

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The Bonus Army incident over 15,000

unemployed World War I veterans.

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Many of them with their families

converged on Washington dc.

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They were petitioning for the early

payment of a bonus promised to them for

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their wartime service in World War I.

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A bonus that was not due to

be given to them until:

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But given the dire economics of

the time, this bonus represented

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for many, the only lifeline.

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They established a large hooverville in

Anacostia flats and called themselves

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the bonus expeditionary force.

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They marched, they demonstrated, and

they voiced their frustration in one

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common complaint being quote, while

there were billions for bankers, there

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was nothing for the poor end quote.

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President Hoover concerned about

the federal budget opposed the

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bill for immediate payment, and the

Senate ultimately voted it down.

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While many veterans dispersed a

significant number remained Hoover

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labeled them insurrectionists

and ordered their removal.

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The task fell to General Douglas

MacArthur, who accompanied by Major

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Dwight d Eisenhower and Major George S.

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Patton, led an army detachment

including infantry, cavalry, and tanks

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against the veteran's encampment.

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The result was a shocking spectacle.

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As our textbook describes it,

troops chased men and women tear gas

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children and torched the shanty town.

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Two marchers were shot and

killed, and an infant reportedly

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died from exposure to tear gas.

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The national media broadcast, the

images and accounts of this violent

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dispersal, and the American public

was appalled the site of the US Army

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attacking its own unarmed veterans, men

who had served heroically in World War.

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I was a profound shock to the nation.

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It starkly contrasted with the

patriotic fervor the government

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had cultivated during the war with

campaigns like the Liberty Bonds that

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called upon citizens for sacrifice.

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The bonus Army incident became

a potent symbol of the Hoover

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Administration's perceived insensitivity

and inability to connect with the

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suffering of ordinary Americans.

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And how could he?

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He was a millionaire in his own right.

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It was a public relations catastrophe that

further discredited traditional responses

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to the social unrest and dramatically

amplified the public's yearning for a

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new deal, one that would prioritize the

welfare of its citizens over millionaires.

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Like Hoover,

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the election of 1932, then was a.

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Watershed moment.

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Franklin Delano Roosevelt, the Democratic

governor of New York, promised a new

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deal for the American people and he won

a landslide victory over Herbert Hoover.

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This was a clear mandate

for decisive action.

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Upon taking office in March

of:

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confronted the banking crisis.

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He declared a national bank

holiday, closing all banks to halt

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the run on banks and allowed for

assessment and reorganization.

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This was the first major step in what had

become known as the first a hundred days,

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a period of intense legislative activity

that laid the groundwork for the new deal.

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Central to Roosevelt's approach was

his ability to communicate directly

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with the American people through

his fireside chats on the radio.

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These informal addresses explain complex

policies in simple reassuring terms,

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helping to restore public confidence.

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After his first fireside chat in March

of 19 33, 1 listener wrote, I felt

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that he walked into my house, sat down

and in plain and forceful language,

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explained to me how he was tackling the

job I and my fellow citizens gave him.

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End quote.

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Another listener from Minneapolis

wrote, quote, I have regained faith in

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the banks due to your earnest beliefs.

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I had decided that as soon as the

banks in Minneapolis reopened,

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I would withdraw my money.

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When you said that people's money

would be safer in banks than under

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their mattresses, I decided to

leave my money just where it is.

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End quote.

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His May 7th, 1933 Fireside chat further

outlined the new deals aims, discussing

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initiatives like the civilian Conservation

Corps, mortgage relief for farmers

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and homeowners, and the forthcoming

National Industrial Recovery Act.

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Always emphasizing a partnership between

the government and the citizenry.

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The first new deal unleashed a

fury and flurry of alphabet soup

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agencies, the Agricultural Adjustment

Act, the A a A aimed to raise

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farm prices by paying farmers to

reduce production of certain crops.

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While it did increase pro crop prices,

it was criticized for its impact on

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sharecroppers and tenant farmers,

many of whom were displaced when

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landowners took land out of cultivation.

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The National Industrial Recovery

Act created the National Recovery

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Administration, which sought to

stabilize industry through codes of

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fair competition, setting minimum wages

and maximum hours, and importantly,

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guaranteeing workers' rights to

organize under Section seven A.

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Businesses displayed the Blue Eagle

to show compliance, but the NRA faced

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criticism for being overly bureaucratic

and sometimes favoring large corporations.

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The Civilian Conservation Corps,

the CCC provided jobs for young

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unemployed men in conservation

projects like reforestation, soil

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erosion control, and park development.

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In a 1935, message to Congress.

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Roosevelt emphasized its value, quote,

more important than the material gain.

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It is the improvement we find in moral

and physical wellbeing of our citizens

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who have been enrolled in the core oral

histories from CCC workers like Ashton

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Burris from Camp Roosevelt recalled the

work quote, the first work I'd done was

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help cut the right of way for that road.

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James Cree, another enrollee,

described the structured daily life.

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Get up at a certain time.

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Went to eat at a certain time.

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Everything was pretty much on schedule.

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End quote.

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Another was the Tennessee

Valley Authority, the TVA.

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It was a bold experiment in regional

development aimed at controlling

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floods, improved navigation, and

generate hydroelectric power for the

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impoverished Tennessee Valley region.

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Financial reforms were

also key to this new deal.

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The Glass Stegel Act created the

Federal Deposit Insurance Corporation,

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the FDIC, to ensure bank deposits

restoring faith in the banking system.

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Well go to a bank today.

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You'll see a sign that says FDIC, the

Securities and Exchange Commission.

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The SEC was established to regulate

the stock market and prevent

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the abuses that contributed to

the crash in the first place.

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The first new deal was largely

experimental, a series of pragmatic

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responses to an unprecedented crisis.

384

:

It marked a significant expansion

of federal power and responsibility.

385

:

I.

386

:

However, these early programs had

often contradictory outcomes and did

387

:

not fundamentally dismantle existing

power structures, particularly

388

:

those related to race and class.

389

:

For instance, the AAA's benefits

often flow to landowners rather

390

:

than the sharecroppers and tenants

farmers themselves who worked the

391

:

land disproportionately harming

African American agricultural workers.

392

:

Nras code sometimes sanctioned

lower pay scales for black workers

393

:

and CCC camps were segregated.

394

:

This, while the first new deal

provided crucial relief and began to

395

:

restore the national confidence, its

implementation was frequently filtered

396

:

through and sometimes reinforced

existing societal inequalities.

397

:

These actions may be

better labeled inactions.

398

:

Where often the result of political

compromise is necessary to pass the

399

:

sweeping legislation, particularly to

appease those powerful Southern Democrats.

400

:

Now, despite all the bold initiatives,

the New Deal quickly drew criticism from

401

:

both the left and the right, reflecting

the deep ideological divisions that

402

:

were gripping the nation from the left.

403

:

Critics argued Roosevelt wasn't

going far enough for everybody.

404

:

I.

405

:

Senator Huey p.

406

:

Long of Louisiana the flamboyant

Kingfish captivated many with

407

:

his share our wealth program.

408

:

He proposed a radical wealth

redistribution famously to quote,

409

:

clearing quote, every family to

be furnished by the government.

410

:

A homestead allowance, no family's

annual income would be less than

411

:

2000 to $2,500 long advocated for.

412

:

Capping personal fortunes and

providing pensions and free education

413

:

financed by taxing the rich.

414

:

His populist appeal was undeniable,

though he was assassinated in

415

:

1935 before he could mount a

serious presidential challenge.

416

:

Another powerful voice from the

left was Father Charles Coughlin, a

417

:

Catholic priest from Detroit, whose

radio sermons reached millions.

418

:

Initially, a supporter who coined

the phrase Roosevelt or ruin.

419

:

Coughlin, grew, disillusioned.

420

:

He attacked Roosevelt for his

quote, not being tough enough on

421

:

the money changers in bankers.

422

:

And in 1936 speech, he lamented quote,

Roosevelt or Ruin is the order of

423

:

the day because the money changers

have not been driven from the temple.

424

:

End quote.

425

:

Coughlin advocated for monetary

reforms like the nationalization of

426

:

bank and the free coinage of silver.

427

:

His messages increasingly became tinged

with antisemitism and fascist sympathies,

428

:

and by the end of the decade, he had

swung completely to the right, eventually

429

:

leading to his silencing by the church.

430

:

From the right wing of things.

431

:

The American Liberty League

formed in:

432

:

business leaders and disaffected

Democrats like Al Smith and John W.

433

:

Davis mounted a fierce opposition.

434

:

They condemned the new deal as

an assault on individual liberty,

435

:

an assault on free enterprise,

and on the Constitution itself.

436

:

In their pamphlets and speeches,

they branded programs like the

437

:

A A A As, quote, A trend towards

fascist control of agriculture.

438

:

And they argued that the Social

Security Act would quote Mark the end

439

:

of democracy 1 19 36 League pamphlet.

440

:

The New Deal versus Democracy declared

that quote, the New deal has sought to

441

:

destroy the American system of government,

composed of three coordinate branches, and

442

:

to upset the dual sovereignty as between

state and nation, which the Constitution

443

:

provides these diverse criticisms,

underscore the profound ideological

444

:

battle wage during the New deal.

445

:

Roosevelt, how to navigate a treacherous

political landscape caught between

446

:

those demanding more radical change

and those fearing he was dismantling

447

:

American capitalism and liberty.

448

:

The New Deal, therefore, was not merely

a collection of government programs.

449

:

It was the crucible in which

competing visions for America's

450

:

future were fiercely debated.

451

:

Forcing a national reckoning with the

social contract in an industrial democracy

452

:

facing ongoing economic hardship

and spurred by these critiques.

453

:

Roosevelt launched a new wave

of legislation in:

454

:

referred to as the second new deal.

455

:

This phase aimed at more fundamental

long-term reforms as well as

456

:

a broader social safety net.

457

:

The cornerstone of the second new deal

was the Works Progress Administration,

458

:

the WPA, and it was established in 1935.

459

:

The WPA became the nation's largest

employer putting millions to work on

460

:

a vast array of public work projects,

including the constructions of roads,

461

:

bridges, public buildings, and parks.

462

:

It also famously included arts programs

like the Federal Writers Project.

463

:

Federal Theater Project and the

Federal Art Project, which provided

464

:

employment for artists, writers and

performers, and created actually a

465

:

rich cultural legacy while lauded

for providing crucial employment.

466

:

By 1943 had employed 8.5

467

:

million people.

468

:

The WPA also faced criticism for

alleged boondoggling and inefficiency.

469

:

While some projects reportedly

cost significantly more than

470

:

private sector equivalents.

471

:

Perhaps the most enduring legacy

of the second new deal is the

472

:

Social Security Act of 1935.

473

:

This landmark legislation established a

system of old age pensions, unemployment,

474

:

insurance, and aid to dependent children,

and the disabled funded through payroll

475

:

taxes on employees and employers.

476

:

It created a crucial safety

net for millions of Americans.

477

:

However, its passage was not

without controversy then or now.

478

:

Contemporary debates at the time

highlighted its limitations, particularly

479

:

the exclusion of agricultural and domestic

workers from its initial provisions,

480

:

a decision that disproportionately

affected African Americans and many

481

:

women reflecting the political compromise

is necessary for its enactment.

482

:

Labor also received a significant

boost with the passage of the NA

483

:

National Labor Relations Act of 1935,

commonly known as the Wagner Act.

484

:

This act affirmed the right of workers

to organize unions and engage in

485

:

collective bargaining and establish

the National Labor Relations Board

486

:

to oversee union elections and

investigate unfair labor practices.

487

:

President Roosevelt in signing this

act stated quote, A better relationship

488

:

between labor and management is

the high purpose of this act.

489

:

The Wagner Act led to a surge in union

membership, empowering workers in a

490

:

way unseen since the Gilded Age, I.

491

:

And finally, the Labor, the Fair Labor

Standards Act of:

492

:

national minimum wage set, maximum

working hours, and significantly

493

:

abolished oppressive child labor.

494

:

This act aimed to create a

baseline of decent working

495

:

conditions across the nation.

496

:

The second new deal represented a more

structured and arguably more radical phase

497

:

of Roosevelt's response to the depression.

498

:

It fundamentally reshaped the

relationship between American

499

:

government and its citizens.

500

:

Established a lasting federal

response for social welfare and

501

:

significantly strengthened the

position of organized labor.

502

:

Yet these transformative achievements

were still products of their time

503

:

marked by political compromises

that often perpetuated existing

504

:

inequalities, particularly along

lines of race and gender as we'll.

505

:

Explore next.

506

:

The new deal's impact was far from

uniform across the diverse tapestry

507

:

of American society from the South.

508

:

Programs like the Agricultural Adjustment

Administration left a mixed legacy while

509

:

aiming to stabilize agricultural prices.

510

:

AAA policies often benefited landowners

at the expense of the sharecroppers

511

:

and tenant farmers, as I mentioned

earlier, and a significant number

512

:

of those were African Americans.

513

:

As one analysis pointed out, landowners

can make more money leaving land

514

:

until leading to the eviction of over

black farmers in:

515

:

alone, the Tennessee Valley Authority.

516

:

However, the.

517

:

Brought much needed modernization,

electricity and flood control

518

:

to a vast impoverished region,

transforming its landscape and economy.

519

:

Yet even with these interventions,

deep seated poverty and racial

520

:

hierarchy, persistent in the south.

521

:

For the African Americans nationwide.

522

:

The New Deal offered both opportunity

but also profound disappointments.

523

:

Discrimination was rampant in

many of these government programs.

524

:

The CCC camps were segregated.

525

:

NRA codes sometimes permitted lower pay

for black workers for the same jobs.

526

:

And the Federal housing authority.

527

:

The FHA often refuse to guarantee

mortgages for black families trying

528

:

to buy homes in white neighborhoods.

529

:

A practice known as redlining.

530

:

The Social Security Act initially

excluded agricultural and domestic workers

531

:

occupations in which a large percentage

of where African Americans were employed.

532

:

President Roosevelt, who relied on the

support of powerful Southern Democrats in

533

:

Congress, often shied away from directly

challenging Jim Crow, or supporting

534

:

federal anti-lynching legislation.

535

:

However, there were avenues of progress,

specifically the works Progress

536

:

Administration was generally colorblind

in its employment practices, particularly

537

:

in northern cities, and it provided

crucial jobs for many African Americans,

538

:

the National Youth Administration.

539

:

Thanks.

540

:

In part to the advocacy of figures like

Mary McLeod Bethune ensured that black

541

:

youth received a fairer share of the aid.

542

:

Bethune was a prominent black

educator and became a key figure in

543

:

Roosevelt's unofficial black cabinet,

an informal group of African American

544

:

advisors who lobbied for black

interests within the administration.

545

:

While their direct policy influence

was often limited by the political and

546

:

racist realities of the time, their

presence marked an important step in black

547

:

political engagement at the federal level.

548

:

Women also played significant roles

and experienced mixed outcomes.

549

:

Under the New Deal, Eleanor

Roosevelt, the First Lady, emerged

550

:

as a powerful and independent

voice tirelessly advocating for the

551

:

poor, for minorities and for women.

552

:

She famously declared as the first lady.

553

:

She was now quote in a position

where I can do the most good

554

:

to help the most people.

555

:

She used her platform to bring

attention to new deal programs

556

:

and push for greater inclusivity.

557

:

Francis Perkins made history as

the first female cabinet member

558

:

serving as the Secretary of Labor.

559

:

She was the principal architect of

the Social Security Act and champion

560

:

legislation for unemployment insurance,

minimum wage, and the abolition of child

561

:

labor, driven by a desire, as she put

it, quote, unemployment insurance, old

562

:

age insurance, and health insurance.

563

:

However, despite these individual

achievements and some gains

564

:

through new deal programs.

565

:

Broader progress on equal terms for

women, such as the proposed Equal Rights

566

:

Amendment stalled during this period.

567

:

The New Deal, therefore, is a complex

tapestry of progress and compromise.

568

:

It offered unprecedented federal

intervention and relief, yet its

569

:

application was often shaped and

constrained by the enduring structures

570

:

of racial and gender inequality.

571

:

The political necessity of appeasing

Southern Democrats meant that many

572

:

programs failed to fully address.

573

:

And sometimes possibly even exacerbated

the economic and social injustices rooted

574

:

in the failed promises of reconstruction.

575

:

This complicated legacy would in turn lay

some of the groundwork for the intensified

576

:

civil rights movement in the decades

to follow as African Americans having.

577

:

Tasted both the potential and

the limitations of federal action

578

:

escalated their demands for

full citizenship and equality.

579

:

As the depression deepened and

Roosevelt's new deal expanded the role

580

:

of the federal government, anxiety

among conservative business elites

581

:

grew these fears culminated in one of

the most bizarre and debated episodes

582

:

of the era, the business plot of 1933.

583

:

Retired Marine Corps major General Smedley

Butler, a popular and highly decorated

584

:

military figure, testified before a

congressional committee that a group

585

:

of wealthy businessmen and financiers.

586

:

Had approached him with a plan to

overthrow President Roosevelt and install

587

:

a fascist style dictator with Butler

himself envisioned as the leader of a

588

:

massive veterans army to carry out the

coup butler who had become a vocal critic

589

:

of American imperialism and capitalism

famously stated that he had been quote.

590

:

High class muscle man for big business,

for Wall Street and the bankers.

591

:

His testimony, detailed meetings with

individuals like Gerald McGuire, a bond

592

:

salesman tied to JP Morgan interest,

who allegedly outlined the plot.

593

:

While the Congressional Committee

concluded that such a plot had been

594

:

discussed, no criminal prosecutions

followed and many in the press at

595

:

the time dismissed it as far fetched.

596

:

However, the business plot whether

a fully realized conspiracy or

597

:

an overblown alarm reflected the

genuine and extreme anxieties of some

598

:

powerful conservative circles about

the direction of the New deal and

599

:

its perceived threat to capitalism.

600

:

So much so that they were

willing to try fascism.

601

:

It also underscores the concerns

about fascism in the:

602

:

were not solely in Europe.

603

:

Indeed, American reactions to Mussolini's

rise in Italy in the:

604

:

varied, so we have to keep that in mind.

605

:

I.

606

:

Beyond the business plot.

607

:

There were other homegrown, fascist

and extremist groups in the:

608

:

such as William Dudley Pellys

Silver Shirts, or the Silver Legion.

609

:

These groups often fueled by antisemitism,

by xenophobia and anti-communist hysteria.

610

:

Echoed some of the rhetoric

of European fascist movements.

611

:

While these domestic fascist movements

never achieved mass political

612

:

power, their existence alongside

the business plot highlights the

613

:

intense ideological polarization of

the depression era and the extent to

614

:

which some were willing to consider.

615

:

Anti-Democratic alternatives in

response to the economic crisis of

616

:

the Great Depression, as well as the

transformative policies and government

617

:

intervention of the New deal.

618

:

So the new deal's momentum, so

powerful in its initial years

619

:

began to wane by the late 1930s.

620

:

A significant blow came with the

Roosevelt recession of 19 37, 19

621

:

38, just as the economy seemed to be

recovering, a sharp downturn occurred.

622

:

Industrial production

once again, declined.

623

:

And unemployment, which had.

624

:

Fallen had now jammed back up to 14.3%

625

:

in May of 1937 and up even

% in June of:

626

:

Economists and historians attribute

this recession to several factors,

627

:

including Roosevelt's attempt to

balance the budget by reducing federal

628

:

spending and the new social security

taxes, taking money out of circulation

629

:

before benefits began to be paid.

630

:

This economic setback weakened

public and political confidence.

631

:

In the ongoing efficacy of more

new deal spending, simultaneously

632

:

conservative opposition in Congress,

which had been present throughout the

633

:

New Deal, began to grow more potent.

634

:

A bipartisan conservative coalition

comprising of many Southern Democrats

635

:

and Northern Republicans, increasingly

and blocked further new deal legislation.

636

:

Historian James T.

637

:

Patterson notes this coalition

successfully opposed key administration

638

:

measures such as the Fair Labor Standards

and Housing Bill of:

639

:

and reorganization bills in 1938 and 1939.

640

:

This growing resistance signal, the

shift in the political landscape

641

:

making further large scale domestic

reforms increasingly difficult.

642

:

Perhaps the most significant factor in

the decline of the new deal's impetus was

643

:

the ominous rise of international threats.

644

:

The expansionist ambitions of the

fascist Nazi Germany and Europe and

645

:

the Imperial Japan and Asia began

to dominate national attention in

646

:

resources as President Roosevelt himself

acknowledged in December of:

647

:

The focus had shifted from Dr.

648

:

New Deal, the specialist

in internal medicine to Dr.

649

:

Win the war, the ortho Orthopedic surgeon.

650

:

While some new deal agencies like the

WPA and CCC were shut down during the war

651

:

years, the underlying shift in national

priority from domestic reform to military

652

:

preparedness and foreign policy was

ady well underway by the late:

653

:

The end of the New deal was not a singular

event, but a gradual fading, driven by

654

:

a confluence of economic stumbles, a

resurgent conservative political block,

655

:

and the overwhelming overshadowing

imperative of an impending global war.

656

:

I.

657

:

This transition illustrates the

contingent nature of reform movements

658

:

and how external crises can profoundly

reshape domestic priorities, pushing

659

:

aside even the most ambitious programs

for social and economic change.

660

:

The decade spanning the Roaring twenties,

the Great Depression and the New Deal,

661

:

irrevocably transformed the United States.

662

:

The freewheeling prosperity and

cultural dynamism of the:

663

:

way to the deepest economic crisis in

the nation's history, a crisis that

664

:

challenged the very foundations of

American capitalism and democracy.

665

:

In response, Franklin d Roosevelt's New

Deal ushered in an unprecedented expansion

666

:

of federal power and responsibility,

fundamentally altering the relationship

667

:

between the government and its citizens.

668

:

The New deal's legacy is

complex, but also enduring.

669

:

It established a crucial social

safety net with programs like social

670

:

insecurity, enshrined vital labor rights

through the Wagner rock, and left the

671

:

physical imprint on the landscape.

672

:

Through the works of the CCC and

the TVA, it demonstrated that the

673

:

federal government could and would

interfere to address economic

674

:

catastrophe and social distress.

675

:

However, the New Deal was also

a product of its time marked by

676

:

compromises that often perpetuated

racial and gender inequalities.

677

:

Its benefits were not evenly

distributed, particularly in the

678

:

South, where the political power of

conservative Democrats often blunted

679

:

efforts towards racial justice.

680

:

Echoing the unfinished business of

reconstruction, the exclusion of

681

:

many African Americans and women

from key new deal protections laid

682

:

the groundwork for future struggles

for civil rights inequality.

683

:

As the 1930s drew to a close, the

immediate crisis of the depression

684

:

began to recede, partly due to the

new deals efforts, but increasingly.

685

:

Due to the economic stimulus of

impending war, the nation while

686

:

changed, carried with it the unresolved

legacies of these tumultuous decades.

687

:

The anxieties about modernity, the

deep cultural fissures, the questions

688

:

about economic justice and the role

of government, these would continue

689

:

to shape American life to this day.

690

:

And as the shadows of global conflict

lengthened, America stood on the

691

:

cusp of another transformative

era, world War ii, a conflict that

692

:

would further test its ideals and

redefine its place in the world.

693

:

In his second inaugural address,

Roosevelt spoke of the ongoing journey.

694

:

We are determined to make every

American citizen the subject of

695

:

his country's interest and concern.

696

:

The test of our progress is

not whether we add more to the

697

:

abundance to those who have much.

698

:

It is whether we provide enough for

those who have too little end quote.

699

:

As America faced new global challenges,

the question of how to live up to

700

:

that ideal for all of its citizens.

701

:

Remained.

702

:

I'm Dr.

703

:

G and I'll see y'all in the past.

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Star-Spangled Studies
Star-Spangled Studies is a college-level U.S. history podcast created by professional historian Dr. G—built for students, teachers, and curious listeners alike. Season 1 covers the era from 1865 to the present, using The American Yawp, a free and open educational resource (OER) textbook, as its guide. Each episode unpacks key events, movements, and ideas that shaped the modern United States—through rich narrative, scholarly insight, and accessible storytelling.

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