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The '''New Deal''' was a  programme of Congressional enactments and Presidential orders that was introduced in the United States during the 1933–1938 period for the purpose of providing for the relief, recovery and reform of its economy in response to the events of the [[Great Depression]]  
The '''New Deal''' was [[President Franklin Delano Roosevelt]]'s legislative program. As implemented during the 1933-1938 period, it included numerous congressional enactments and presidential orders that were intended to provide economic relief, recovery, and reform. Its purposes were to relieve the suffering of the American people in the throes of the [[Great Depression]], and its execution 


:''(For an annotated list of New Deal measures see [[/Addendum|the addendum subpage]])''
:''(For an annotated list of New Deal measures and institutions see [[/Addendum|the addendum subpage]])''
:''(For the sequence of New Deal legislative measures see [[/Timelines|the timelines subpage]])''
:''(For the sequence of New Deal legislative measures see [[/Timelines|the timelines subpage]])''


==Overview: "The Three Rs"==
==Background==
Apart from its emergency measures, the New Deal had three components: relief, recovery, and  reform - ''The Three RS''.


The ''Relief'' component was intended to put the unemployed to work and  help those hardest hit by the depression.  It expanded the previous administration's  work relief program, and added an extensive further  sequence of  employment-generating schemes,  followed by the introduction of a number of social security and unemployment insurance systems.
Roosevelt first promised "a new deal for the American people" in his acceptance speech at the 1932 Democratic National Convention.


The ''Recovery'' component was intended to return the country to prosperity by direct government intervention in its economy. It included programmes of financial assistance to banks and mortgage-lenders, subsidies to farms and busineses, the encouragement of trade union  membership, and the maintenace of wage levels.  
:''(The background to the New Deal is described in the article on the [[Great Depression in the United States]] and its economic implications and international context are described in the article on the [[Great Depression]].)''


The ''Reform'' component included the creation of the ''Federal Deposit Insurance Corporation'', which had the immediate purpose of restoring confidence in the country's banks and the longer term purpose of regulating their conduct; and the setting up of the ''Securites and Exchange Commission'' to regulsate other parts of it financial system.
==Overview: the three Rs==
The New Deal had three components: relief, recovery, and reform - ''The Three RS''.


==A review of the programmes==
The ''Relief'' component was intended to put the unemployed to work and  help those hardest hit by the depression.  It expanded the previous administration's  work relief program, and added an extensive further  sequence of employment-generating schemes,  followed by the introduction of a number of social security and unemployment insurance systems.


===Emergency measures===  
The ''Recovery'' component was intended to restore confidence in the banks and otherwise to  return the country to prosperity by restricting  competition, controlling  prices and raising real wages, by industrial and farming subsidies, and by infrastructure  investment.  


====The "Bank Holiday" and the Emergency Banking Act====
The ''Reform'' component consisted mainly legislation designed to regulated the conduct of the banks and of the remainder of the financial system.


The exceptionally severe [[US banking crises of 1931-33]] had led to the failure of large numbers of banks and by March 1933, many of the survivors were on the point of closing their doors to depositors <ref> for details see "Bottom" in ''Time Magazine'' (March 13, 1933) online at [http://www.time.com/time/printout/0,8816,745289,00.html]</ref> After the President's four-day closure of the banking system he put before Congress the ''Emergency Banking Act'' much of which had been drafted  by officials of the previous administration. It provided for the reopening sound banks under Treasury supervision, and made provision for substantial federal loans to those that.  Three-quarters of the remaining  banks in the [[Federal Reserve System]] reopened within the next three days, and currency and gold flowed back into them within a month, thus stabilizing the banking system. (Their depositors eventually received 85 cents on the dollar of their deposits.) Despite Presidential opposition, Congress  also created the ''Federal Deposit Insurance Corporation'' which insured deposits for up to $5,000, - and which put an immediate  stop to the plague of "runs" on banks.
==The New Deal programs==
===The Financial Sector===
The New Deal addressed the financial sector as the first, and probably most important, area for recovery.  As the nation was enduring yet another bank crisis at the time of Roosevelt's inauguration, Roosevelt addressed the emergency first with relief measures. Reform measures for both the banking and securities industries followed in June.  As recovery measures, these acts were successful in ending the banking crisis and restoring public confidence in U.S. banks.


====The Economy Act====
===="Bank Holiday" and the Emergency Banking Relief Act====
As a result of pressure from "deficit-hawks" among its members (who feared that the government's would cause a large departure from the President's election promise of a balanced budget), Congress passed the ''Economy Act'' which cut the salaries of government employees and cutting pensions to veterans by 40 percent, and reduced government expenditure by about  $500 million a year.
The exceptionally severe banking crises of 1931-33 led to the failure of large numbers of banks and by March 1933 many of the survivors were on the point of closing their doors to depositors.<ref>for details, see "Bottom" in ''Time Magazine'' (March 13, 1933) online at [http://www.time.com/time/printout/0,8816,745289,00.html]</ref>  Just one day into his presidency, Roosevelt declared a "bank holiday," effectively putting all financial transactions to a halt.  Four days later, when Congress convened, it passed the [[Emergency Banking Relief Act]] in just seven hours.  Much of the law had been drafted by [[Herbert Hoover|Hoover]] administration officials and provided for reopening sound banks under Treasury Department supervision. Three-quarters of the remaining banks in the [[Federal Reserve System]] reopened within the next three days and currency and gold flowed back into them within a month, thus stabilizing the banking system.  


===Relief programmes===
====Economy Act====
The administration launched a series of programmes and agencies to provide work for the unemployed, the largest of which were the ''Civilian Conservation Corps'', the ''Civil Works Administration'', the ''Federal Emergency Relief Administration'' the ''National Youth Administration'', and largest of all, the ''Works Progress Administration'' (WPA). (The numbers employed by last-mentioned reached  3.3 million in November 1938.<ref>According to Nancy Rose' Put to Work.</ref> and although there had by then been a major reduction in level of  unemployment even then amounted to 12.5% of the working population<ref>Darby, Michael R.''Three and a half million U.S. Employees have been mislaid: or, an Explanation of Unemployment, 1934-1941.'' Journal of Political Economy 84, no. 1 (1976): 1-16.</ref>.)
As a result of pressure from "deficit-hawks" among its members (who feared that the government's would cause a large departure from the President's election promise of a balanced budget) as well as being a plank in the Democratic Party's 1932 campaign platform, Congress passed the ''Economy Act'' which cut the salaries of government employees and cutting pensions to veterans and reduced government expenditure by about $500 million a year.


===Recovery programmes===
====Banking Act====
====The Farm Programs====
Many Americans believed that the financial system needed reform and regulation in order to preserve public confidence and maintain economic stability.  The [[Banking Act of 1933]] created the [[Federal Deposit Insurance Corporation]] which insured individual depositors for up to $5,000. Banks and thrifts need not have been member of the [[Federal Reserve System]] in order to participate. The Banking Act also incorporated the [[Glass-Steagall Act]] of 1933 which sought to further protect commercial depositors by prohibiting commercial banks from engaging in the more risky activity of investment banking. Lastly, the Banking Act created the [[Federal Open Market Committee]] which gave to the Federal Reserve Board of Governors greater powers over monetary policy.
This program began with the [[Agricultural Adjustment Act]], creating the [[Agricultural Adjustment Administration]] (AAA), which Congress passed in May 1933.   The AAA implemented a provision for crop reductions known as the "domestic allotment" system of the act. Under this system producers of corn, cotton, dairy products, hogs, rice, tobacco, and wheat would decide on production limits for their crops. The AAA would then pay land owners subsidies for leaving some of their land idle with funds provided by a new tax on food processing. Farm prices were to be subsidized up to the point of parity.  Some crops were ordered to be destroyed and some livestock slaughtered to maintain prices.    Farm incomes increased significantly in the first three years of the New Deal. However, consumers bore the brunt of higher food prices and were "horrified with its policy of enforced scarcity."<ref>Cushman, Barry (1998). Rethinking the New Deal Court. Oxford University Press. p. 34</ref> A Gallup Poll printed in the Washington Post revealed that a majority of the American public opposed the AAA.<ref>Cushman, Barry (1998). Rethinking the New Deal Court. Oxford University Press. p. 34</ref>


Roosevelt, [[Eleanor Roosevelt]], and many New Dealers were highly sympathetic to the marginal farmers who lived on the land in severe poverty, especially in the South. Major programs addressed to their needs included the [[Resettlement Administration]] (RA), the [[Farm Security Administration]] (FSA), the [[Rural Electrification Administration]] (REA), the [[Tennessee Valley Authority]] (TVA) and rural welfare projects sponsored by the WPA, NYA, Forest Service and CCC, including school lunches, building new schools, opening roads in remote areas, reforestation, and purchase of marginal lands to enlarge national forests.
====Federal Securities Act====
The [[Federal Securities Act]] required that financial information in stocks and bonds be fully disclosed. This was at first regulated by the [[Federal Trade Commission]] but Congress later created the [[Securities and Exchange Commission]] to regulate this market.


====Infrastructure pojects====


The best of big "hard" infrastructure projects being carried out under the New Deal examples are the results of the [[PWA|Public Works Administration (PWA)]] <ref name=PWA>[http://www.bartleby.com/65/pu/PublicWo.html PWA - Public Works Administration,The Columbia Encyclopedia, Sixth Edition, 2001-05]]</ref>, a former U.S. government agency established by Congress as the Federal Administration of Public Works, pursuant to the [[National Industrial Recovery Act]], and the almost legendary [[Tennessee Valley Authority]] (TVA) <ref name=TVA>[http://www.tva.gov/abouttva/history.htm TVA - Tennessee Valley Authority: From the New Deal to a New Century]]</ref>, both of which, President Roosevelt ran, more or less directly. The [[PWA]] became, with its ''"[[multiplier-effect]]"'' and first two-year budget of $3.3 billion (then an enormous sum), the driving force of America’s biggest construction effort up to that date. By June 1934 the agency had distributed its entire fund to 13,266 federal projects and 2,407 non-federal projects. For every worker on a [[PWA]] project, almost two additional workers were employed indirectly. The [[PWA]] accomplished the electrification of rural America, the building of canals, tunnels, bridges, highways, streets, sewage systems, and housing areas, as well as hospitals, schools, and universities; every year it used up roughly half of the concrete and one-third of the steel of the entire nation. <ref name=ROOSELVELT1>[http://www.kansaspress.ku.edu/mcjfdr.html McJIMSEY, George. ''The Presidency of Franklin Delano Rooselvelt'', American Presidency Series. University Press of Kanasas, April 2000. ISBN 978-0-7006-1012-9]</ref>  
===Relief programs===
The administration launched a series of programmes and agencies to provide work for the unemployed, the largest of which were the ''Civilian Conservation Corps'', the ''Civil Works Administration'', the ''Federal Emergency Relief Administration'' the ''National Youth Administration'', and largest of all, the ''Works Progress Administration'' (WPA).  (The numbers employed by  last-mentioned reached  3.3 million in November 1938.<ref>According to Nancy Rose' Put to Work.</ref> and although there had by then been a major reduction in level of unemployment even then amounted to 12.5% of the working population<ref>Darby, Michael R.''Three and a half million U.S. Employees have been mislaid: or, an Explanation of Unemployment, 1934-1941.'' Journal of Political Economy 84, no. 1 (1976): 1-16.</ref>.)


The projects to develop the "hard" infrastructure of the country were flanked by measures to improve its "soft" counterpart: important social measures, which for the first time in U.S. history, established the concept of a [[minimum wage]], created insurance for the unemployed, sick and old, established decent health care, and abolished child labor. The [[Works Progress Administration]] (later Work Projects Administration, abbreviated [[WPA]]), was created on May 6, 1935 by Presidential order (Congress funded it annually but did not set it up). It was the largest and most comprehensive [[New Deal|New Deal agency]], employing millions of people and affecting every locality. The crowning achievement of these measures was the [[Social Security Act of 1935]].  This law was overturned by the Supreme Court, so that Roosevelt had to pass it in another form the [[Wagner Act of 1935]], the "Bill of Rights" of American labor.
Other programmes established the concept of a minimum wage, created insurance for the unemployed, sick and old, established healthcare support systems, and abolished child labor. However, it is often claimed that the most important  of the relief  measures that were introduced was the ''Social Security Act of 1935''.
Many of the New Deal <ref name=NEWDEAL'>[http://eh.net/bookreviews/library/0219 ROSENOF, Theodore. ''Economics in the Long Run: New Deal Theorists and Their Legacies, 1933-1993''. Chapel Hill: University of North Carolina Press, 1997. ISBN 0-8078-2315-5.]</ref> regulations were abolished or scaled back in 1975-1985 in a bipartisan [[neoliberal]] wave of [[deregulation]]. However various of them, such as the [[Federal Housing Administration]] (FHA) <ref name=FHA>[http://www.fha.com/fha_loans.cfm Federal Housing Administration]</ref>, the [[Social Security Administration]] (SSA) <ref name=SSA>[http://www.ssa.gov/SSA_Home.html SSA - U. S. Social Security Administration]</ref> , the [[Tennessee Valley Authority]] (TVA) <ref name=TVA>[http://www.tva.gov/abouttva/history.htm TVA - Tennessee Valley Authority: From the New Deal to a New Century]]</ref>, the [[Federal Deposit Insurance Corporation]] (FDIC) <Ref name=FDIC>[http://www.fdic.gov/ FDIC - Federal Deposit Insurance Corporation]</ref>, the [[Securities and Exchange Commission]] (SEC) <ref name=SEC>[http://www.sec.gov/about/whatwedo.shtml SEC - U.S. Securities and Exchange Commission]</ref> and the so called [[Glass-Steagall Act]] sections of the original [[Banking Act]] of June 1933, (sections 16, 20, 21 and 32), which regulates Wall Street, won widespread support and continue to this day.


===Recovery programmes===
====The Farm Programs====
Several measures were introduced to arrest the fall in agricultural prices that had been causing hardship in the country's farming industry.  The first [[Agricultural Adjustment Act]], which was passed on May 12, 1933, created the [[Agricultural Adjustment Administration]].  This agency negotiated restrictions on the production of corn, cotton, dairy products, hogs, rice, tobacco, and wheat, and compensated farmers for the crops and livestock that they did not produce from funds raised by a tax on food processing.  Since the law went into effect after the 1933 crops had been sown and animals born, the agency had to order that crops be destroyed and livestock slaughtered in order to meet the 1933 production restrictions. 


====Business, labor, and government cooperation====
In 1935, the Supreme Court in ''[[United States v. Butler]]'' ruled the Agricultural Adjustment Act unconstitutional for having one segment of the population directly supported by taxes paid by a different segment. But as this program was working to improve farm profitability, Roosevelt and Congress rewrote the law to meet the Court's scruples. During the program's first three years because of the restrictions on supply, food prices rose and farm incomes increased significantly. The Agricultural Adjustment Act has not been repealed by Congress and has been many times amended, the latest being in the 1990s.
 
The Roosevelt administration insisted that business would have to ensure that the incomes of workers would rise along with their prices.  The product of all these impulses and pressures was the [[National Industrial Recovery Act]] (NIRA) which was passed by  Congress in June 1933. The NIRA established the [[National Planning Board]], also called the National Resources Planning Board (NRPB), to assist in planning the economy by providing recommendations and information. Fredric A. Delano was appointed head of the NRPB.
 
The NIRA guaranteed to workers the right of collective bargaining and helped spur some union organizing activity, but much faster growth of union membership came after the 1935 Wagner Act. The NIRA established the [[National Recovery Administration]] (NRA), which attempted to stabilize prices and wages through cooperative "code authorities" involving government, business, and labor. The NRA included a multitude of regulations imposing the pricing and production standards for all sorts of goods and services. Some ridiculed it as the "National Run Around."  Most economists were dubious because it was based on fixing prices to reduce competition.<ref>Parker</ref> Historian Jim Power, in ''FDR's Folly'' says that the above-market wage rates dictated by the NRA made it more expensive for employers to hire people, and therefore unnecessarily maintained high unemployment and prolonged the Depression.
 
To prime the pump and cut unemployment, the NIRA created the [[Public Works Administration]] (PWA), a major program of public works. From 1933 to 1939 PWA spent $6 billion with private companies to build 34,500 projects, many of them quite large.


====The control of prices and wages====
In spite of the success of the program for addressing farm profitability, a Gallup Poll printed in the ''Washington Post'' revealed that a majority of the American public opposed the AAA.<ref>Barry Cushman, ''Rethinking the New Deal Court'' (New York: Oxford University Press, 1998), 34.</ref>


At the center of the NIRA was the National Recovery Administration (NRA), headed by former General [[Hugh Samuel Johnson]]. Johnson called on every business establishment in the nation to accept a stopgap "blanket code": a minimum wage of between 20 and 40 cents an hour, a maximum workweek of 35 to 40 hours, and the abolition of child labor. Johnson and Roosevelt contended that the "blanket code" would raise consumer purchasing power and increase employment.
Several other agencies were also introduced to help farmers and rural America, including the [[Resettlement Administration]], the [[Farm Security Administration]], the [[Rural Electrification Administration]], and the [[Tennessee Valley Authority]]. The government also sponsored rural welfare projects such as the provision of school lunches, the building of new schools, the opening of roads in remote areas, and the transfer of marginal lands to national forests.


The NRA negotiated specific sets of codes with leaders of the nation's major industries; the most important provisions were anti-deflationary floors below which no company would lower prices or wages, and agreements on maintaining employment and production. In a remarkably short time, the NRA won agreements from almost every major industry in the nation. Six months after the NRA went into effect industrial production dropped 25 percent.  
====Infrastructure Projects====
A number of  infrastructure projects were created by the [[PWA|Public Works Administration (PWA)]] <ref name=PWA>[http://www.bartleby.com/65/pu/PublicWo.html PWA - Public Works Administration,The Columbia Encyclopedia, Sixth Edition, 2001-05]]</ref>, that had been  established by  the ''National Industrial Recovery Act'', and the ''Tennessee Valley Authority'' <ref name=TVA>[http://www.tva.gov/abouttva/history.htm TVA - Tennessee Valley Authority: From the New Deal to a New Century]]</ref>. By June 1934 the Public Works Administration  had created over 13,000 federal projects and  over2,000 non-federal projects, including rural electrification, canals, tunnels, bridges, highways, streets, sewage systems, and housing areas, as well as hospitals, schools, and universities.<ref name=ROOSELVELT1>[http://www.kansaspress.ku.edu/mcjfdr.html McJIMSEY, George. ''The Presidency of Franklin Delano Roosevelt'', American Presidency Series. University Press of Kansas, April 2000. ISBN 978-0-7006-1012-9]</ref>.


====The Wagner Act====
====Industrial Policies====
The [[National Labor Relations Act]] (July 5), also known as the Wagner Act, revived and strengthened the protections of collective bargaining contained in the original (and now unconstitutional) NIRA. The result was a tremendous growth of membership in the labor unions comprising the [[American Federation of Labor]]. Labor thus became a major component of the New Deal political coalition. Roosevelt nationalized unemployment relief through the [[Works Progress Administration]] (WPA), headed by close friend [[Harry Hopkins]]. It created hundreds of thousands of low-skilled blue collar jobs for unemployed men (and some for unemployed women and white collar workers). Applicants for WPA jobs did not have to be Democrats, but their foremen quickly explained that Roosevelt created their paychecks and that conservative Republicans wanted to abolish the program. The [[National Youth Administration]] was the semi-autonomous WPA program for youth.  
The cornerstone of New Deal industrial policy was the [[National Industrial Recovery Act]] (NIRA).  This law followed the same logic that underpinned the farm programs: excessive competition and overproduction was driving prices down and making producers unprofitable. Business unprofitably lowered wages and employment, which, in turn, reduced demand.<ref name=Cole>Harold L. Cole, "[http://www.economics.hawaii.edu/research/seminars/02-03/02-21.pdf New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis]," Federal Reserve Bank of Minneapolis Research Department Staff Report XXX, February 2003.</ref>  To reverse this situation, the NIRA encouraged collusive agreements to refrain from price competition and to strengthen the bargaining power of labor unions.  
In the very long run, the most important program of 1935, and perhaps the New Deal as a whole, was the [[Social Security (United States)|Social Security Act]] (August 14), which established a system of universal retirement pensions, unemployment insurance, and welfare benefits for poor families and the handicapped. It established the framework for the U.S. welfare system. Roosevelt insisted that it should be funded by payroll taxes rather than from the general fund; he said, "We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program."  One of the last New Deal agencies was the [[United States Housing Authority]], created in 1937 with some Republican support to abolish slums.


===Reform===
To manage the collusive agreements among business, the NIRA created the [[National Recovery Agency]] (NRA).  The NRA worked with business [[trade association]]s to develop codes of production for each industry.  These codes set production and price limits, quality levels, and other measures for products.  Businesses were also asked to accept a "blanket code" covering all industries which set a minimum wage of between 20 and 40 cents an hour, and a maximum working week of 35 to 40 hours.  By 1934, National Recovery Agency's codes covered over 500 industries, and nearly 80 percent of private, non-agricultural employment.


==Constitutional implications==
NIRA also established the [[Public Works Administration]] to employ millions of workers not finding jobs in industry.  The NIRA's section 7(a) also required businesses to recognized labor unions when workers organized them and to negotiate collective bargaining agreements with them.


===Constitutional change===
On May 27, 1935, the Supreme Court ruled in ''[[Schechter Poultry Corp. v. United States]]'', 295 U.S. 495 (1935) that the National Industrial Recovery Act was an unconstitutional delegation of legislative power, mainly because of Congress had delegated its lawmaking power to NRA to write national economic policy and because of its suspension of the antitrust laws.  President Roosevelt objected to the Court’s decision, declaring that "The fundamental purposes and principles of the NIRA are sound.  To abandon them is unthinkable.  It would spell the return to industrial and labor chaos." 


===Objections===
However, in practice the NIRA was an abysmal failure.  The trade associations did not write fair and impartial production codes aiming towards overall industrial recovery.  Since many trade associations were led by single dominant businesses, the codes tended to favor them to the detriment of the smaller and less powerful producers, and the NRA was powerless to redress this situation.  Additionally, some major manufacturers, such as the [[Ford Motor Company]], simply refused to participate at all.  Thus when the law was declared unconstitutional and in spite of his public protestations, Roosevelt proposed no wholesale replacement for the act as he had done for the AAA.


By 1934, the Supreme Court began declaring significant parts of the New Deal unconstitutional.  The programs were quickly fixed to pass muster, but in 1937 Roosevelt stunned the nation by a surpise proposal to pack the Supreme Court by adding five new justices. The proposal failed and Roosevelt permanently alienated many conservative Democrats; however the Supreme Court started upholding New Deal laws. Justices then started retiring, allowing Roosevelt to selected a majority of the Court. By 1942, the Supreme Court had almost completely abandoned its "judicial activism" of striking down congressional laws. The Supreme Court ruled in ''[[Wickard v. Filburn]]'' that the [[Commerce Clause]] covered almost all such regulation allowing the necessary expansion of federal power to make the New Deal "constitutional".
Some other aspects of the act, however, were successful to Roosevelt's eyes.  As a partial replacement for Section 7(a), Congress passed the [[National Labor Relations Act]] also known as the "Wagner Act" which made negotiations with labor unions compulsory, and created the [[National Labor Relations Board]] with the duty to enforce the provisions of the Act.  In 1938, Congress passed the [[Fair Labor Standards Act]], which created a minimum wage and standard work hours.


On May 27 1935, the NRA was found to be unconstitutional by a unanimous decision of the U.S. Supreme Court in the case of [[Schechter v. United States]].<ref> On that same day, the Court unanimously struck down as unconstitutional the Frazier-Lemke Act that put a moratorium on farm mortgages.</ref>
==The effects of the New Deal programs==
===Social implications===
It is widely accepted, however, that - in the short term, at least - the New Deal averted, a great deal of poverty-induced suffering. Before the  creation of the New Deal, America did not have a national social security system such as were then common in  Europe, but only scattered locally-administered provisions comparable to the Elizabethan poor law <ref>[http://www.baas.ac.uk/resources/pamphlets/pamphdets.asp?id=7#ch1 James  Patterson: '' The Welfare State in America, 1930-1980'', British Association for American Studies 1981]</ref>. By 1933, the incomes of millions of American families had fallen below subsistence level. and but for New Deal relief, many would have died of starvation. Objective evidence on the subject is scarce, but studies using such statistics as had been available at the time suggest that the New Deal  raised  fertility rates, reduced death rates <ref>[http://d.scribd.com/docs/27j9x4nrydolrk3f4dj5.pdf Price  Fishback, Michael Haines, and Shawn Kantor: ''Births, Deaths, and New Deal Relief During the Great Depression'', NBER Working Paper 11246, September 2002]</ref> and crime rates <ref>[http://ideas.repec.org/p/nbr/nberwo/12825.html Ryan Johnson, Shawn Kantor and Price V. Fishback: ''Striking at the Roots of Crime: The Impact of Social Welfare Spending on Crime During the Great Depression''. NBER Working Paper 12825, January 2007]</ref> compared with what would have happened without it.


===Political implications===


In 1936, the Supreme Court declared the AAA to be [[Constitutionality|unconstitutional]], stating that "a statutory plan to regulate and control agricultural production, [is] a matter beyond the powers delegated to the federal government..." The AAA was replaced by a similar program that did win Court approval. Federal regulation of agricultural production has been modified many times since then, but together with large subsidies it is still in effect in 2007.
====The New Deal's constitutionality====
The rationale of the National Industrial Recovery Act, in particular implied the permanent <ref> The President introduced it as a change "for all time" as reported in the article on the [[National Recovery Administration]]</ref> abandonment of the existing system of free-market capitalism. It encountered bitter opposition by the business community, and it was frequently challenged as unconstitutional.


===Defeat: Court Packing and Executive Reorganization===
In 1935, in the landmark case of ''[[Schechter Poultry Corp. v. United States]]'',<ref>295 U.S. 495 (1935)</ref> the Supreme Court ruled unanimously that the National Industrial Recovery Act was an unconstitutional delegation of congressional authority. The following year, in ''[[United States v. Butler]]'',<ref>297 U.S. 1 (1936)</ref> it declared the Agricultural Adjustment Act of 1933 to be "a matter beyond the powers delegated to the federal government." In addition, on the same day that it handed down the ''Schechter'' decision, the Court ruled against Roosevelt's firing of a [[Federal Trade Commission]] official Hoover had appointed in the case of ''[[Humphrey's Executor v. United States]]''.<ref>295 U.S. 602 (1935)</ref> While this was not a ruling on the constitutionality of any New Deal initiative directly, it undermined the program's assumption of an expansive role for the federal executive branch and threatened the president's capacity to press forward with his programmatic agenda.
Roosevelt, however, emboldened by the triumphs of his first term, set out in 1937 to consolidate authority within the government in ways that provoked powerful opposition. Early in the year, he asked Congress to [[Judiciary Reorganization Bill of 1937|expand the number of justices on the Supreme Court]] so as to allow him to appoint members sympathetic to his ideas and hence tip the ideological balance of the Court. This proposal provoked a storm of protest.  


In one sense, however, it succeeded; Justice [[Owen Josephus Roberts|Owen Roberts]], switched positions and began voting to uphold New Deal measures, effectively creating a liberal majority in ''[[West Coast Hotel Co. v. Parrish]]'' and ''[[National Labor Relations Board v. Jones & Laughlin Steel Corporation]]'' thus departing from the ''[[Lochner v. New York]]'' era and giving the government more power in questions of economic policies. Journalists called this change "[[the switch in time that saved nine]]." Recent scholars have noted that since the vote in Parrish took place several months before the court-packing plan was announced, other factors, like evolving jurisprudence, must have contributed to the Court's swing. The opinions handed down in Spring 1937, favorable to the government, also contributed to the downfall of the plan. In any case, the "court packing plan," as it was known, did lasting political damage to Roosevelt and was finally rejected by Congress in July.
In 1937, President Roosevelt responded with a proposal to "pack" the Supreme Court by adding five new justices. The court packing proposal failed, but the Court subsequently began upholding New Deal legislation, and by 1942 it had nearly  abandoned its  earlier [[judicial activism]].


At about the same time, the administration proposed a plan to reorganize the executive branch in ways that would significantly increase the president's control over the bureaucracy. Like the Court-packing plan, executive reorganization garnered opposition from those who feared a "Roosevelt dictatorship" and it failed in Congress; a watered-down version of the bill finally won passage in 1939.
===Economic implications===


==Political implications==
====Recovery====
[[Image:FDR0415.JPG|framed|Roosevelt's energetic public personality--"the only thing we have to fear is fear itself," and his "[[fireside chats]]" helped restore confidence.]]
The extent to which the New Deal hastened or hampered America's recovery from the Great Depression is a matter of continuing controversy. There are, nevertheless, a few aspects of the question on which there is some semblance of a consensus. For example, few would now question the proposition that the restoration of confidence in the banking system was a necessary condition for recovery, or the success of  Roosevelt's actions in that respect. But there is evidence to suggest that the effect of the National Industrial Recovery Act was to delay recovery <ref name=Cole/> by  introducing a seriously damaging reinforcement into the "stickiness" of wage-determination. Opinions differ concerning the effectiveness of the New Deal's fiscal stimulus, but since that stimulus  was in any case, small by comparison with the downturn <ref>[http://krugman.blogs.nytimes.com/2008/11/08/new-deal-economics/, Paul Krugman: ''New Deal economics'', New York Times February 20, 2009]</ref>, that question is not now considered to be of overwhelming  importance compared with the other issues that arise.  


===Fiscal Conservatism===


The New Deal tried public works, farm subsidies and other devices to reduce unemployment, but FDR never completely gave up trying to balance the budget. 


Fiscal conservatism was a key component of the New Deal, as Zelizer (2000) demonstrates.  It was supported by Wall Street and local investors and most of the business community;  mainstream academic economists believed in it, as apparently did the majority of the public. Conservative southern Democrats, who favored balanced budgets and opposed new taxes, controlled Congress and its major committees.  Even liberal Democrats at the time regarded balanced budgets as essential to economic stability in the long run, although they were more willing to accept short-term deficits.  Public opinion polls consistently showed public opposition to deficits and debt.  Throughout his terms, Roosevelt recruited fiscal conservatives to serve in his administration, most notably [[Lewis Douglas]] the Director of Budget from 1933 to 1934, and [[Henry Morgenthau Jr.]], Secretary of the Treasury from 1934 to 1945.  They defined policy in terms of budgetary cost and tax burdens rather than needs, rights, obligations, or political benefits.  Personally the president embraced their fiscal conservatism.  Politically, he realized that fiscal conservatism enjoyed a strong wide base of support among voters, leading Democrats, and businessmen.  On the other hand there was enormous pressure to act–and spending money on high visibility programs attracted Roosevelt, especially if it tied millions of voters to him, as did the WPA. 
:''(For a more detailed examination of the economic consequences of the New Deal, see the article on the [[Great Depression]], and its Tutorials subpage [http://en.citizendium.org/wiki/Great_Depression/Tutorials] and for a summary of the relevant economic statistics see the Tutorials subpage of the article on the Great Depression in the United States [http://en.citizendium.org/wiki/Great_Depression_in_the_United_States/Tutorials].)''
 
The Economy Act of 1933, passed early in the Hundred Days, was Douglas' great achievement. It  reduced federal expenditures by $500 million, to be achieved by reducing veterans’ payments and federal salaries.  Douglas cut government spending through executive orders that cut the military budget by $125 million, $75 million from the Post Office, $12 million from Commerce, $75 million from government salaries, and $100 million from staff layoffs.  As Freidel concludes, "The economy program was not a minor aberration of the spring of 1933, or a hypocritical concession to delighted conservatives. Rather it was an integral part of Roosevelt's overall New Deal."<ref>Freidel 1990, p. 96</ref> Revenues were so low that borrowing was necessary (only the richest 3% paid any income tax before 1942.)  . 
 
Morgenthau shifted with FDR, but at all times tried to inject fiscal responsibility; he deeply believed in balanced budgets, stable currency, reduction of the national debt, and the need for more private investment .  The Wagner Act met Morgenthau’s requirement because it strengthened the party’s political base and involved no new spending.  In contrast to Douglas, Morgenthau accepted Roosevelt’s  double budget as legitimate–that is a balanced regular budget, and an “emergency” budget for agencies, like the WPA, PWA and CCC, that would be temporary until full recovery was at hand.  He fought against the veterans’ bonus until Congress finally overrode Roosevelt’s veto and gave out $2.2 billion in 1936.  His biggest success was the new Social Security program; he managed to reverse the proposals to fund it from general revenue and insisted it be funded by new taxes on employees.  It was Morgenthau who insisted on excluding farm workers and domestic servants from Social Security because workers outside industry would not be paying their way.<ref>Zelizer 2000; Savage 1998</ref>
 
 
 
===Government Role: balance labor, business and farming===
The government was now committed to providing at least minimal assistance to the poor and unemployed; to protecting the rights of labor unions; to stabilizing the banking system; to building low-income housing; to regulating financial markets; to subsidizing agricultural production; and to doing many other things that had not previously been federal responsibilities.
 
Thus, perhaps the strongest legacy of the New Deal, in other words, was to make the federal government a protector of interest groups and a supervisor of competition among them. As a result of the New Deal, political and economic life became politically more competitive than before, with workers, farmers, consumers, and others now able to press their demands upon the government in ways that in the past had been available only to the corporate world. Hence the frequent description of the government the New Deal created as the "broker state," a state brokering the competing claims of numerous groups.  If there was more political competition, there was less market competition. Farmers were not allowed to sell for less than the official price. The transportation industry (especially airlines, trucking and railroads) was tightly regulated so that every firm had a guaranteed market and management and labor had high profits and high wages, all at the cost of high prices and much inefficiency.  Quotas in the oil industry were fixed by the [[Railroad Commission of Texas]] with the federal [[Tom Connally|Connally]] Hot Oil Act of 1935<ref>The Handbook of Texas Online: [http://www.tsha.utexas.edu/handbook/online/articles/CC/mlc3.html Connally Hot Oil Act of 1935]</ref> guaranteeing that illegal "hot oil" would not be sold.  To the New Dealers, the free market meant "cut-throat competition" and they considered that evil.  Not until the 1970s and 1980s would most of the New Deal regulations be relaxed.
 
 
A major result of the full employment at high wages was a sharp, permanent decrease in the level of income inequality.  The gap between rich and poor narrowed dramatically in the area of nutrition, because food rationing and price controls guaranteed a reasonably priced diet to everyone.  Large families that had been poverty-stricken in the 1930s had four or five or more workers, and shot to the top one-third income bracket.  Overtime made for huge paychecks in the munitions factories; white collar workers were fully employed too, but they did not receive overtime and their salary scale was no longer much higher than the blue collar wage scale.
 
 
==Economic implications==
Keynes visited to the White House in 1934 to urge President Roosevelt to do more deficit spending. Roosevelt complained to Labor Secretary [[Frances Perkins]], "He left a whole rigmarole of figures--he must be a mathematician rather than a political economist." 
 
===Prolonged/Worsened the Depression===
A 1995 survey of economic historians and economists asked "Taken as a whole, government policies of the New Deal served to lengthen and deepen the Great Depression."  Of the economists 27% agreed and 51% disagreed. Of the economic historians, only 6% agreed and 74% disagreed. (the rest were in the partly agree/disagree group).<ref> See [http://eh.net/lists/archives/eh.res/feb-1997/0010.php]</ref>
 
The minority view is represented by Harold L. Cole and Lee E. Ohanian who conclude that the "New Deal labor and industrial policies did not lift the economy out of the Depression as President Roosevelt and his economic planners had hoped," but that the "New Deal policies are an important contributing factor to the persistence of the Great Depression." They conclude that the New Deal "cartelization policies are a key factor behind the weak recovery." They say that the "abandonment of these policies coincided with the strong economic recovery of the 1940s."<ref>Cole, Harold L and Ohanian, Lee E. [http://www.economics.hawaii.edu/research/seminars/02-03/02-21.pdf ''New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis''], 2004.</ref> Lowell E. Gallaway and Richard K. Vedder conclude that the "Great Depression was very significantly prolonged in both its duration and its magnitude by the impact of New Deal programs." They argue that without Social Security, work relief, unemployment insurance, and especially without the labor unions, business would have hired more workers and the unemployment rate would have been lower. <ref>''Gallaway, Lowell E. and Vedder, Richard K. ''Out of Work: Unemployment and Government in Twentieth-Century America'', New York University Press; Updated edition (July 1997).</ref> Few economists or economic historians have agreed with these speculations. The New Deal years 1933-36 (or indeed the FDR years 1933-45) showed the highest growth rates in the history of the American economy.
 
==Outcomes==
=== Depression Statistics ===
<ref> Angus Maddison, ''The World Economy: Historical Statistics'' (OECD 2003); Japan is close, see p 174</ref> however, recovery was slow --by 1939 GDP per adult was still 27% below trend.<ref name="Cole">Cole, Harold L and Ohanian, Lee E. [http://www.economics.hawaii.edu/research/seminars/02-03/02-21.pdf ''New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis''], 2004.</ref>  And, throughout the New Deal the median joblessness rate was 17.2 percent and never went below 14 percent.
 
Apart from building up labor unions, the New Deal did not substantially alter the distribution of power within American [[capitalism]].


==References==
==References==
 
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The New Deal was President Franklin Delano Roosevelt's legislative program. As implemented during the 1933-1938 period, it included numerous congressional enactments and presidential orders that were intended to provide economic relief, recovery, and reform. Its purposes were to relieve the suffering of the American people in the throes of the Great Depression, and its execution

(For an annotated list of New Deal measures and institutions see the addendum subpage)
(For the sequence of New Deal legislative measures see the timelines subpage)

Background

Roosevelt first promised "a new deal for the American people" in his acceptance speech at the 1932 Democratic National Convention.

(The background to the New Deal is described in the article on the Great Depression in the United States and its economic implications and international context are described in the article on the Great Depression.)

Overview: the three Rs

The New Deal had three components: relief, recovery, and reform - The Three RS.

The Relief component was intended to put the unemployed to work and help those hardest hit by the depression. It expanded the previous administration's work relief program, and added an extensive further sequence of employment-generating schemes, followed by the introduction of a number of social security and unemployment insurance systems.

The Recovery component was intended to restore confidence in the banks and otherwise to return the country to prosperity by restricting competition, controlling prices and raising real wages, by industrial and farming subsidies, and by infrastructure investment.

The Reform component consisted mainly legislation designed to regulated the conduct of the banks and of the remainder of the financial system.

The New Deal programs

The Financial Sector

The New Deal addressed the financial sector as the first, and probably most important, area for recovery. As the nation was enduring yet another bank crisis at the time of Roosevelt's inauguration, Roosevelt addressed the emergency first with relief measures. Reform measures for both the banking and securities industries followed in June. As recovery measures, these acts were successful in ending the banking crisis and restoring public confidence in U.S. banks.

"Bank Holiday" and the Emergency Banking Relief Act

The exceptionally severe banking crises of 1931-33 led to the failure of large numbers of banks and by March 1933 many of the survivors were on the point of closing their doors to depositors.[1] Just one day into his presidency, Roosevelt declared a "bank holiday," effectively putting all financial transactions to a halt. Four days later, when Congress convened, it passed the Emergency Banking Relief Act in just seven hours. Much of the law had been drafted by Hoover administration officials and provided for reopening sound banks under Treasury Department supervision. Three-quarters of the remaining banks in the Federal Reserve System reopened within the next three days and currency and gold flowed back into them within a month, thus stabilizing the banking system.

Economy Act

As a result of pressure from "deficit-hawks" among its members (who feared that the government's would cause a large departure from the President's election promise of a balanced budget) as well as being a plank in the Democratic Party's 1932 campaign platform, Congress passed the Economy Act which cut the salaries of government employees and cutting pensions to veterans and reduced government expenditure by about $500 million a year.

Banking Act

Many Americans believed that the financial system needed reform and regulation in order to preserve public confidence and maintain economic stability. The Banking Act of 1933 created the Federal Deposit Insurance Corporation which insured individual depositors for up to $5,000. Banks and thrifts need not have been member of the Federal Reserve System in order to participate. The Banking Act also incorporated the Glass-Steagall Act of 1933 which sought to further protect commercial depositors by prohibiting commercial banks from engaging in the more risky activity of investment banking. Lastly, the Banking Act created the Federal Open Market Committee which gave to the Federal Reserve Board of Governors greater powers over monetary policy.

Federal Securities Act

The Federal Securities Act required that financial information in stocks and bonds be fully disclosed. This was at first regulated by the Federal Trade Commission but Congress later created the Securities and Exchange Commission to regulate this market.


Relief programs

The administration launched a series of programmes and agencies to provide work for the unemployed, the largest of which were the Civilian Conservation Corps, the Civil Works Administration, the Federal Emergency Relief Administration the National Youth Administration, and largest of all, the Works Progress Administration (WPA). (The numbers employed by last-mentioned reached 3.3 million in November 1938.[2] and although there had by then been a major reduction in level of unemployment even then amounted to 12.5% of the working population[3].)

Other programmes established the concept of a minimum wage, created insurance for the unemployed, sick and old, established healthcare support systems, and abolished child labor. However, it is often claimed that the most important of the relief measures that were introduced was the Social Security Act of 1935.

Recovery programmes

The Farm Programs

Several measures were introduced to arrest the fall in agricultural prices that had been causing hardship in the country's farming industry. The first Agricultural Adjustment Act, which was passed on May 12, 1933, created the Agricultural Adjustment Administration. This agency negotiated restrictions on the production of corn, cotton, dairy products, hogs, rice, tobacco, and wheat, and compensated farmers for the crops and livestock that they did not produce from funds raised by a tax on food processing. Since the law went into effect after the 1933 crops had been sown and animals born, the agency had to order that crops be destroyed and livestock slaughtered in order to meet the 1933 production restrictions.

In 1935, the Supreme Court in United States v. Butler ruled the Agricultural Adjustment Act unconstitutional for having one segment of the population directly supported by taxes paid by a different segment. But as this program was working to improve farm profitability, Roosevelt and Congress rewrote the law to meet the Court's scruples. During the program's first three years because of the restrictions on supply, food prices rose and farm incomes increased significantly. The Agricultural Adjustment Act has not been repealed by Congress and has been many times amended, the latest being in the 1990s.

In spite of the success of the program for addressing farm profitability, a Gallup Poll printed in the Washington Post revealed that a majority of the American public opposed the AAA.[4]

Several other agencies were also introduced to help farmers and rural America, including the Resettlement Administration, the Farm Security Administration, the Rural Electrification Administration, and the Tennessee Valley Authority. The government also sponsored rural welfare projects such as the provision of school lunches, the building of new schools, the opening of roads in remote areas, and the transfer of marginal lands to national forests.

Infrastructure Projects

A number of infrastructure projects were created by the Public Works Administration (PWA) [5], that had been established by the National Industrial Recovery Act, and the Tennessee Valley Authority [6]. By June 1934 the Public Works Administration had created over 13,000 federal projects and over2,000 non-federal projects, including rural electrification, canals, tunnels, bridges, highways, streets, sewage systems, and housing areas, as well as hospitals, schools, and universities.[7].

Industrial Policies

The cornerstone of New Deal industrial policy was the National Industrial Recovery Act (NIRA). This law followed the same logic that underpinned the farm programs: excessive competition and overproduction was driving prices down and making producers unprofitable. Business unprofitably lowered wages and employment, which, in turn, reduced demand.[8] To reverse this situation, the NIRA encouraged collusive agreements to refrain from price competition and to strengthen the bargaining power of labor unions.

To manage the collusive agreements among business, the NIRA created the National Recovery Agency (NRA). The NRA worked with business trade associations to develop codes of production for each industry. These codes set production and price limits, quality levels, and other measures for products. Businesses were also asked to accept a "blanket code" covering all industries which set a minimum wage of between 20 and 40 cents an hour, and a maximum working week of 35 to 40 hours. By 1934, National Recovery Agency's codes covered over 500 industries, and nearly 80 percent of private, non-agricultural employment.

NIRA also established the Public Works Administration to employ millions of workers not finding jobs in industry. The NIRA's section 7(a) also required businesses to recognized labor unions when workers organized them and to negotiate collective bargaining agreements with them.

On May 27, 1935, the Supreme Court ruled in Schechter Poultry Corp. v. United States, 295 U.S. 495 (1935) that the National Industrial Recovery Act was an unconstitutional delegation of legislative power, mainly because of Congress had delegated its lawmaking power to NRA to write national economic policy and because of its suspension of the antitrust laws. President Roosevelt objected to the Court’s decision, declaring that "The fundamental purposes and principles of the NIRA are sound. To abandon them is unthinkable. It would spell the return to industrial and labor chaos."

However, in practice the NIRA was an abysmal failure. The trade associations did not write fair and impartial production codes aiming towards overall industrial recovery. Since many trade associations were led by single dominant businesses, the codes tended to favor them to the detriment of the smaller and less powerful producers, and the NRA was powerless to redress this situation. Additionally, some major manufacturers, such as the Ford Motor Company, simply refused to participate at all. Thus when the law was declared unconstitutional and in spite of his public protestations, Roosevelt proposed no wholesale replacement for the act as he had done for the AAA.

Some other aspects of the act, however, were successful to Roosevelt's eyes. As a partial replacement for Section 7(a), Congress passed the National Labor Relations Act also known as the "Wagner Act" which made negotiations with labor unions compulsory, and created the National Labor Relations Board with the duty to enforce the provisions of the Act. In 1938, Congress passed the Fair Labor Standards Act, which created a minimum wage and standard work hours.

The effects of the New Deal programs

Social implications

It is widely accepted, however, that - in the short term, at least - the New Deal averted, a great deal of poverty-induced suffering. Before the creation of the New Deal, America did not have a national social security system such as were then common in Europe, but only scattered locally-administered provisions comparable to the Elizabethan poor law [9]. By 1933, the incomes of millions of American families had fallen below subsistence level. and but for New Deal relief, many would have died of starvation. Objective evidence on the subject is scarce, but studies using such statistics as had been available at the time suggest that the New Deal raised fertility rates, reduced death rates [10] and crime rates [11] compared with what would have happened without it.

Political implications

The New Deal's constitutionality

The rationale of the National Industrial Recovery Act, in particular implied the permanent [12] abandonment of the existing system of free-market capitalism. It encountered bitter opposition by the business community, and it was frequently challenged as unconstitutional.

In 1935, in the landmark case of Schechter Poultry Corp. v. United States,[13] the Supreme Court ruled unanimously that the National Industrial Recovery Act was an unconstitutional delegation of congressional authority. The following year, in United States v. Butler,[14] it declared the Agricultural Adjustment Act of 1933 to be "a matter beyond the powers delegated to the federal government." In addition, on the same day that it handed down the Schechter decision, the Court ruled against Roosevelt's firing of a Federal Trade Commission official Hoover had appointed in the case of Humphrey's Executor v. United States.[15] While this was not a ruling on the constitutionality of any New Deal initiative directly, it undermined the program's assumption of an expansive role for the federal executive branch and threatened the president's capacity to press forward with his programmatic agenda.

In 1937, President Roosevelt responded with a proposal to "pack" the Supreme Court by adding five new justices. The court packing proposal failed, but the Court subsequently began upholding New Deal legislation, and by 1942 it had nearly abandoned its earlier judicial activism.

Economic implications

Recovery

The extent to which the New Deal hastened or hampered America's recovery from the Great Depression is a matter of continuing controversy. There are, nevertheless, a few aspects of the question on which there is some semblance of a consensus. For example, few would now question the proposition that the restoration of confidence in the banking system was a necessary condition for recovery, or the success of Roosevelt's actions in that respect. But there is evidence to suggest that the effect of the National Industrial Recovery Act was to delay recovery [8] by introducing a seriously damaging reinforcement into the "stickiness" of wage-determination. Opinions differ concerning the effectiveness of the New Deal's fiscal stimulus, but since that stimulus was in any case, small by comparison with the downturn [16], that question is not now considered to be of overwhelming importance compared with the other issues that arise.


(For a more detailed examination of the economic consequences of the New Deal, see the article on the Great Depression, and its Tutorials subpage [2] and for a summary of the relevant economic statistics see the Tutorials subpage of the article on the Great Depression in the United States [3].)

References

  1. ↑ for details, see "Bottom" in Time Magazine (March 13, 1933) online at [1]
  2. ↑ According to Nancy Rose' Put to Work.
  3. ↑ Darby, Michael R.Three and a half million U.S. Employees have been mislaid: or, an Explanation of Unemployment, 1934-1941. Journal of Political Economy 84, no. 1 (1976): 1-16.
  4. ↑ Barry Cushman, Rethinking the New Deal Court (New York: Oxford University Press, 1998), 34.
  5. ↑ PWA - Public Works Administration,The Columbia Encyclopedia, Sixth Edition, 2001-05]
  6. ↑ TVA - Tennessee Valley Authority: From the New Deal to a New Century]
  7. ↑ McJIMSEY, George. The Presidency of Franklin Delano Roosevelt, American Presidency Series. University Press of Kansas, April 2000. ISBN 978-0-7006-1012-9
  8. ↑ 8.0 8.1 Harold L. Cole, "New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis," Federal Reserve Bank of Minneapolis Research Department Staff Report XXX, February 2003.
  9. ↑ James Patterson: The Welfare State in America, 1930-1980, British Association for American Studies 1981
  10. ↑ Price Fishback, Michael Haines, and Shawn Kantor: Births, Deaths, and New Deal Relief During the Great Depression, NBER Working Paper 11246, September 2002
  11. ↑ Ryan Johnson, Shawn Kantor and Price V. Fishback: Striking at the Roots of Crime: The Impact of Social Welfare Spending on Crime During the Great Depression. NBER Working Paper 12825, January 2007
  12. ↑ The President introduced it as a change "for all time" as reported in the article on the National Recovery Administration
  13. ↑ 295 U.S. 495 (1935)
  14. ↑ 297 U.S. 1 (1936)
  15. ↑ 295 U.S. 602 (1935)
  16. ↑ Paul Krugman: New Deal economics, New York Times February 20, 2009
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