Was the New Deal a good deal?
Since shortly after the treaty that ended World War I, the world economy struggled. Germany was straddled with harsh reparation debts and their economy stalled. Farm income in the United States fell dramatically with the end of wartime price supports, and with nearly half of the U.S. population living in rural areas, American buying power plunged. At the same time, the U.S. imposed tariffs on imported items, helping manufacturing but raising prices for consumers. The stock market boomed, and investors poured money into stocks far beyond their earning capacity. Eventually, these and other factors combined to bring the stock market crash of 1929 and the beginning of the greatest economic downturn ever experienced in the United States.
Herbert Hoover and the Market Crash
Herbert Hoover was elected president in 1928 and assumed office while prosperity was still running high. When the market crashed in October, he and many other economists saw it as a temporary slide and predicted quick recovery. As unemployment continued to rise and business slumped, Hoover proposed some new efforts by the federal government. His main idea was to provide incentives and financial supports to business to get firms hiring and selling again. He favored lower taxes and a balanced budget. He also encouraged greater volunteer contributions to charities for the poor and unemployed, but he opposed any direct relief efforts to individuals fearing the welfare would discourage the unemployed from looking for work.
New Deal Programs
Anger against Hoover grew rapidly through 1931 and 1932, leading to the election of Franklin Delano Roosevelt. While Roosevelt also talked about balanced budgets during the campaign, he changed courses between his November election and March inaugural as national conditions became worse. With the Democratic majorities in Congress that were elected with him, Roosevelt pushed through a remarkable agenda of programs that radically changed the relationship of individuals to the federal government. The New Deal created work programs like the Works Progress Administration and the Public Works Administration that put people to work on public parks, roads, bridges and other infrastructure projects and hired teachers and artists. The Civilian Conservation Corps hired, fed and clothed teenage boys and sent most of their salaries back to support their families. The Agriculture Adjustment Act provided payments to farmers who agreed to limit their production. It was Roosevelt's policy that, in times of recession, the government should spend to spur economic growth, even if that means adding to the federal debt.
While New Deal programs provided a safety net to hundreds of thousands of American families, there is debate among economic historians about their overall effectiveness. What finally ended the Depression was American entry into World War II with a military draft and government contracts for planes, tanks, ships, munitions, uniforms and farm products. However, on the political side, the hope that the New Deal offered those struggling, including many Iowa farm families, was a factor that prevented rebellions against the government at all levels. It also reconfigured the American political landscape as African Americans, other urban-based minorities and labor unions leaving the Republican Party to form a strong Democratic coalition.
Supporting Questions
How did Franklin Roosevelt’s policies differ from Herbert Hoover's?
- White House Insider Theodore Joslin's Account of the Depression and Herbert Hoover's 1932 Presidential Campaign, 1932 (Document)
- "Untitled" Clifford Berryman Depression-Era Cartoon, December 23, 1932 (Political Cartoon)
- President Herbert Hoover's Letter to Senator Simeon Fess , February 21, 1933 (Document)
- "That Conquering Cooperative Spirit!" March 7, 1933 (Political Cartoon)
- "A Capitol Hill May Day Parade," May 1, 1933 (Image)
- President Franklin Delano Roosevelt's Campaign Address at Madison Square Garden, October 31, 1936 (Document)
How did the New Deal affect the relationship between citizens and the national government?
- Depression-Era Breadlines, ca. 1932 (Image)
- Men Stringing Rural Tennessee Valley Authority (TVA) Transmission Lines, 1933 (Image)
- "The New Deal" Mural, ca. 1934 (Image)
- Letter from Edwin Locke to Depression-Era Photographer Arthur Rothstein, July 14, 1936 (Document)
- Impoverished Family of Nine during the Great Depression in New Mexico, August 1936 (Image)
- "A Day In the Life of a New Dealer" Newspaper Article, October 20, 1936 (Document)
- People Waiting for Relief Checks in Calipatria, California, March 1937 (Image)
- Interview with Italian Munitions Worker Charles Fusco, 1938 (Document)
- Federal Writers' Project Interview of Henry Gill, between 1938 and 1939 (Document)
- Two Teenage Girls Participating in the National Youth Administration in Iowa, 1940 (Image)
- "American Guide Week" Pamphlet, 1941 (Document)
How effective were New Deal policies in bringing relief from the effects of the Great Depression for all Americans?
- Letter from Edgar Harlan to H.O. Bernbrook, April 30, 1932 (Document)
- Indian Reorganization Act, 1934 (Document)
- Interview with Dr. M. Santos, a Cuban Immigrant, between 1936 and 1939 (Document)
- Constitution and Bylaws of the Sac and Fox Tribes in Iowa, December 20, 1937 (Document)
- Emanuel Verschleiser's Letter to President Franklin Roosevelt, 1938 (Document)
- Interview with Farmer Ernest Boney in South Carolina, 1938 (Document)
- American Indian Tribes, Reservations and Settlements in the United States, 1939 (Map)
- Interview with Vivian Morris from Harlem, New York, June 29, 1939 (Document)
- Interview with Eugenia Martin about Reconstruction, November 1939 (Document)
- "Our New Army of National Defense," March 26, 1941 (Political Cartoon)
- National Youth Administration Work Center in Brooklyn, New York, ca. August 1942 (Image)
| New Deal Source Set Teaching Guide |
| Printable Image and Document Guide |
Constitution and Bylaws of the Sac and Fox Tribes in Iowa, December 20, 1937
Description
After the U.S. Congress created the Indian Reorganization Act of 1934, the Meskwaki established their own constitution. This document is the constitution and its by-laws as it was created in 1937. The preamble states, "We, the Mesquakie Indians, enrolled members of the Sac…
American Indian Tribes, Reservations and Settlements in the United States, 1939
Description
This document is a map from 1939 that shows the American Indian tribes, reservations and settlements in the United States.
Interview with Dr. M. Santos, a Cuban Immigrant, between 1936 and 1939
Description
This document is an interview with Dr. M. Santos, a Cuban immigrant, and was interviewed in part for a program within the Works Progress Administration. His oral history included information about his time in Cuba and early days in the United States, as well as a rebuke of…
Emanuel Verschleiser's Letter to President Franklin Roosevelt, 1938
Description
The document is an interview conducted by the Federal Writers' Project in New York with Emanuel Verschleiser, an elderly Jewish man. In the interview, Verschleiser strongly supports the actions of President Franklin Delano Roosevelt and he offers strong opposition…
Interview with Farmer Ernest Boney in South Carolina, 1938
Description
This oral history was collected as part of the South Carolina Writers' Project. Ernest Boney was a white farmer who provided a history of his life in South Carolina. His son received help from the National Youth Administration to finish at Clemson. The excerpt focuses on…
Interview with Vivian Morris from Harlem, New York, June 29, 1939
Description
This document is an interview with Vivian Morris, who was a garment work in Harlem, New York. The interview was completed in 1939.
Interview with Eugenia Martin about Reconstruction, November 1939
Description
This source is an oral history collected as part of the Federal Writers' Project. Eugenia Martin was the daughter of slaves and she recounted her family's story prior to Reconstruction. In her recent history, she recounts how the death of her husband led her to…
White House Insider Theodore Joslin's Account of the Depression and Herbert Hoover's 1932 Presidential Campaign, 1932
Description
Theodore Joslin was one of President Herbert Hoover's closest White House advisors in 1932. In his diary, Joslin captured important daily developments, including the president's mood and reactions. The selected excerpts cover the end of Hoover's 1932 presidential campaign…
"Untitled" Clifford Berryman Depression-Era Cartoon, December 23, 1932
Description
With the Great Depression now entering its fourth year and conditions for the average American continuing to worsen, the government still needed funds to operate. Cartoonist Clifford Berryman highlighted the desperation of the period with his famous Uncle Sam demanding…
President Herbert Hoover's Letter to Senator Simeon Fess, February 21, 1933
Description
Following a conversation with Senator Simeon Fess on February 20, 1933, President Herbert Hoover wrote Fess to record his analysis of key events and developments during the first five periods of the Great Depression. Hoover's letter was written during the darkest days of…
"That Conquering Cooperative Spirit!" March 7, 1933
Description
The Great Depression was at its worst in 1933 with unemployment at its peak. Millions of American families lacked food. Cartoonist Clifford Berryman tries to show that even the small relief efforts of the Herbert Hoover administration were paying off. In his cartoon,…
"A Capitol Hill May Day Parade," May 1, 1933
Description
President Franklin Delano Roosevelt's first "Hundred Days" were characterized by a flood of legislative proposals designed to alleviate the problems resulting from the Great Depression, namely high unemployment, feeding the hungry millions, restoring business confidence and…
President Franklin Delano Roosevelt's Campaign Address at Madison Square Garden, October 31, 1936
Description
In this campaign radio address from Madison Square Garden, President Franklin Delano Roosevelt announced a second set of measures to combat the Great Depression, which become known as the Second New Deal. These included a series of new relief programs, such as the Works…
Depression-Era Breadlines, ca. 1932
Description
This black and white photograph depicts a long breadline with a number of men waiting for food in New York City. Under President Herbert Hoover, there was an absence of substantial government relief programs during 1932. Free food was distributed with private funds in some…
Men Stringing Rural Tennessee Valley Authority (TVA) Transmission Lines, 1933
Description
This black and white photograph shows men putting up power lines. The work was made possible through the creation of the Tennessee Valley Authority (TVA), one of the New Deal programs created in President Franklin Delano Roosevelt's first term in office.
"The New Deal" Mural, ca. 1934
Description
This image is of a mural that was created in 1934 by artist Conrad Albrizio. The mural places President Franklin Delano Roosevelt in the center of workers from various background, genders and ethnicities.
Letter from Edwin Locke to Depression-Era Photographer Arthur Rothstein, July 14, 1936
Description
This document is a letter sent by Edwin Locke to photographer Arthur Rothstein. It outlines the type of photographs the government would like captured regarding the aftermath of the drought. The instructions focus on a desire for dramatic photographs showing harsh…
Impoverished Family of Nine during the Great Depression in New Mexico, August 1936
Description
This photograph shows part of am impoverished family of nine on a New Mexico highway. This family was made up of Depression-era refugees from Iowa. The family left Iowa in 1932 because of the father's poor health. The father was an auto mechanic laborer, and the family…
"A Day In the Life of a New Dealer" Newspaper Article, October 20, 1936
Description
This article was published in the Centerville Daily Iowegian and Citizen newspaper on October 20, 1936. The piece juxtaposes the increase in the national debt with what occurs in a "Newdealers" day.
People Waiting for Relief Checks in Calipatria, California, March 1937
Description
This 1937 photograph was taken by Dorothea Lange, and it depicts a long line of men, women and children waiting in line for relief checks. The checks were part of a government assistance program to help families after a drought.
Interview with Italian Munitions Worker Charles Fusco, 1938
Description
This is an interview with Charles Fusco, a resident of Connecticut and Italian immigrant, and it was conducted as part of the Federal Writers' Project. Fusco talks about his family history, as well as his thoughts on recent events in Europe and the introduced New Deal…
Federal Writers' Project Interview of Henry Gill, between 1938 and 1939
Description
This is an interview with Henry Gill, a resident of Connecticut, and it was conducted as part of the Federal Writers’ Project. The interviewee discusses the perspectives of members of his community, as well as his own regarding New Deal programs which were prompted by an…
Two Teenage Girls Participating in the National Youth Administration in Iowa, 1940
Description
The photograph depicts two young women cutting wood strips for doll beds in Farmington, Iowa. The young women were participating in the National Youth Administration, which began during President Franklin Delano Roosevelt's first term in office. Young men and women would…
"American Guide Week" Pamphlet, 1941
Description
This poster has a stylized eagle and quote from President Franklin Roosevelt about the Federal Writers' Project. The intent of the poster was to celebrate the work of the Federal Writers' Project in creating works that highlight the contributions of each state.
National Youth Administration Work Center in Brooklyn, New York, ca. August 1942
Description
The photograph shows two young men receiving training from the Works Progress Administration in New York. The men are in machine shop practice and are shown setting up shaper work to cut 45-degree angles at the base for a surface gauge. The National Youth…
Letter from Edgar Harlan to H.O. Bernbrock, April 30, 1932
Description
This document is a letter from from Iowa historian Edgar Harlan to Hon. H.O. Bernbrock of Waterloo. Harlan recounts his time on the Tama reservation and hearing about the hunger and poverty within the Meskwaki tribe. He then asks Bernbrock why members of the tribe…
Indian Reorganization Act, 1934
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Description
This document is the Indian Reorganization Act, also known as the Wheeler-Howard Act. This legislation replaced the allotment policy that had dominated federal-American Indian affairs for nearly 50 years. It also promoted American Indian self-determination and the revival…
"Our New Army of National Defense," March 26, 1941
Description
This scene, drawn by Clifford Berryman, depicts the general scene visible at factories and plants across the country as workers during this time engaged in widespread strikes. The strikes were aimed at gaining higher wages as the United States was in the final stages of its…
Additional Resources:
- The Living New Deal
This web resource has images and locations highlighting work in communities across the country by the individuals through New Deal programs. - Americans React to the Great Depression
This web resource from the Library of Congress has a variety of resources on individuals experiences with the Great Depression. - Race During the Great Depression
This web resource from the Library of Congress has a variety of resources on individuals experiences with the Great Depression. - "New Deal SAC" - Stanford History Education Group
This web resource has documents that directly relate to how effective the New Deal programs were for Americans.
Iowa Core Social Studies Standards (9-12th Grade)
Listed below are the Iowa Core Social Studies content anchor standards that are best reflected in this source set. The content standards applied to this set are high school-age level and encompass the key disciplines that make up social studies for 9th through 12th grade students.
| No. | Standard Description |
| SS-US 9-12.16. | Examine labor and governmental efforts to reform and/or maintain a capitalistic economic system in the Great Depression. |
| SS-US 9-12.21. | Analyze change, continuity and context across eras and places of study from civil war to modern America. |
| SS-US 9-12.24. | Critique primary and secondary sources of information with attention to the source of the document, its context, accuracy, and usefulness such as the Reconstruction amendments, Emancipation Proclamation, Treaty of Fort Laramie, Chinese Exclusion Act, Roosevelt’s Corollary to the Monroe Doctrine, Wilson’s Fourteen Points, New Deal Program Acts, Roosevelt’s Declaration of War, Executive Order 9066, Truman Doctrine, Eisenhower’s Farewell Speech, Gulf of Tonkin Resolution, Test Ban Treaty of 1963, Brown vs. Board of Education decision, Letter from a Birmingham Jail, and the Voting Act of 1965. |
| SS-US 9-12.25. | Analyze how regional, racial, ethnic and gender perspectives influenced American history and culture. |
| SS-US 9-12.27. | Evaluate Iowans or groups of Iowans who have influenced U.S. History. |
| SS-Gov. 9-12.13. | Evaluate the powers and responsibilities of local, state, tribal, national, and international civic and political institutions, how they interact and the role of government in maintaining order. (21st century skills) |
| SS-Gov. 9-12.24. | Analyze how people use and challenge public policies through formal and informal means with attention to important judicial processes and landmark court cases. (21st century skills) |
| SS-Gov. 9-12.25. | Evaluate the intended and unintended consequences of the implementation of public policy, specifically looking at the bureaucracy, citizen feedback, public opinion polls, interest groups, media coverage, and other related topics. (21st century skills) |
| SS-Econ.9-12.13. | Apply the concept of scarcity when making economic decisions. |