Depression and a New Deal
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Transcript of Depression and a New Deal
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Depression and a New Deal
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1929 to 1932 Stock market crash fall 1929 Local private relief agencies
overwhelmed, many disappeared Became clear public agencies had to
respond Clear poverty was result of social
and economic (not psychological) factors
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Hoover’s Response Hoover against “dole” and federal aid Thought public assistance would
demoralize and enslave recipients Approved bill for starving cattle but
opposed one to help starving farmers Saw public works employment programs
as dangerous ideas
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Roosevelt as N.Y. Governor Wicks Act – first state unemployment
relief act Created Temporary Emergency Relief
Admin under direction of social worker, Harry Hopkins
Roosevelt also passed an Old Age Pension in NY
“Government is not the master but the creature of the people.”
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Roosevelt Elected President 1932 Initiated many programs to deal with
immediate crisis -- alphabet soup Civilian Conservation Corps (reforestation,
flood and fire) Public Works Administration (building
projects) National Youth Admin (part time jobs for
high school & college students)
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U.S. Housing Authority (loans to build public housing)
Basic idea – get people working, restore confidence
Use the principle of work relief – earning not charity
People could retain their dignity
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Federal Emergency Relief Act
FERA -- similar to NY measure established by Wicks Act
Headed by Harry Hopkins Federal money to states to be
administered by states and localities Each local office had to have at least
one social worker on staff
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Roosevelt Didn’t Like Relief Saw relief as temporary Saw need for more permanent measure
to deal with dependency on long range basis
Saw current crisis as result of social and economic forces of industrialization
Summer 1934 appointed Committee for Economic Security
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Committee on Economic Security Chaired by Frances Perkins and
Harry Hopkins Edwin Witte (economist) and Wilbur
Cohen major influences Committee report submitted in
January 1935 and Social Security Act passed in August 1935
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Frances Perkins Secretary of Labor under FDR First woman to hold a cabinet post (1933-
1945) Appointed by Truman to head Civil Service
Commission in 1945 Commitment to improving the lives of
workers; Deeply influenced by labor movement & Triangle fire
Educated in economics and sociology; worked in settlement houses, among other things
Active for women’s suffrage
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Contributory Old Age Insurance Workers and employers taxed to
finance retirement benefits (Old Age Insurance)
Benefits based on how much they had earned and how long they had worked
Encourage older workers out of jobs to make way for young
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Unemployment Insurance Employers taxed for this purpose by
federal government Federal government returned funds
to states if they set up unemployment insurance programs
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Public Assistance Old Age Assistance: federal government
would help states provide aid to old who could not participate in Social Security
Feds gave money to states for help for single parent families with dependent children (expansion of mother’s aid)
Beginnings of AFDC – not controversial
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Social Security Act Built on previous precedents Welfare only to aged and young
“deserving poor” Tied benefits to stable long term
labor force participation Left out a lot of people from social
insurance initially No health insurance
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New Ideas Helped prevent destitution and
dependency Not a matter of individual weakness Federal aid to states for social
welfare Federal government assumed
responsibility for welfare of citizens
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Effects on Social Work Profession Created many new jobs for social workers Created demand for new schools of social
work Social workers learned about rural
poverty Return of interest in social reform Social workers gained prestige Social work became accepted part of
government in a modern state
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What Ended the Depression? Deficit spending Mobilization for World War II