THE SLUMP AND THE NEW

DEALFEDERAL WELFARE PROGRAMMES IN

THE USA

HISTORICAL BACKGROUND.

‘UNIQUE PHENOMENON’ (GARRATY, 1973:907).

POPULATION OF 123 MILLION.

50 MILLION WORKFORCE, 6.5 MILLION OAPS.

CONSEQUENCES.

OVER 14 MILLION BECOME UNEMPLOYED.

NATIONAL INCOME DECLINED FROM $81 BILLION IN 1930 TO $39 BILLION IN 1933 (ROE,1985).

SOCIAL ISSUES.

RESOURCES DEPLETED.

POLITICAL CONSEQUENCES.

FIRST WAVE OF NEW DEALS.

BANKING ACT 1933.

AGRICULTURAL ADJUSTMENT ACT (AAA)1933.

NATIONAL INDUSTRIAL RECOVERY ACT (NIRA) 1933

FEDERAL EMERGENCY RELIEF ACT (FERA) 1933.

SECOND WAVE OF NEW DEALS.

CIVILIAN CONSERVATION CORPS (CCC) 1932.

CIVIL WORKS ADMINISTRATION (CWA) 1933.

WORKS PROGRESS ADMINISTRATION (WPA) 1935

SOCIAL SECURITY ACT 1935.PENSIONS.

CONTRIBUTORY UNIVERSAL SCHEME.

5 STATES INITIATE.

UNEMPLOYMENT.

WISCONSIN INITIATES.

UNCONSTITUTIONAL.

DEPENDENT DISABLED, MOTHERS AND CHILDREN.

President Franklin D. Roosevelt signs the original Social Security Act on

August 14, 1935

OPPOSITION.

INTERFERES WITH THE FREE-MARKETS.

SUPPORTS INEQUALITIES.

DID NOT CREATE ECONOMIC RECOVERY.

ROOTED IN PRINCIPLE OF LESS ELIGIBILITY.

RECAP: GERMAN RESPONSE TO THE SLUMP

• JOB CREATION:

• GRANTS AND LOANS FOR BUILDING/REPAIRING HOUSES

• INVESTMENT INTO TRANSPORT; RAILWAYS AND ROADS

• TAX INCENTIVES

• 1934 – ‘NEW PLAN’ OF 4 YEAR INDUSTRIAL EXPANSION

• CARTELS

• AUTARCHY

• FAMILY POLICY:

• MARRIAGE LOANS FOR WIVES LEAVING THE WORK FORCE

• DEBT REDUCTION WITH CHILD BIRTH

• MEDALS FOR REPRODUCTION

• SOCIAL PROTECTION:

• SOCIAL INSURANCE NATIONALISED

• PLANS FOR TAX-FUNDED PENSIONS IN THE 1940S

• DAF REPLACES TRADE UNIONS

DIFFERENCES IN DEALING WITH THE SLUMP

Germany America

Policy Target: Volksgemeinschaft – National Community

Policy Target: Emergency Relief and Social Control

Creation of jobs to stimulate the economy

Creation of jobs as an emergency measure

Stimulation of demand Little stimulation of demand

Nationalised Social Insurance

The Social Security Act of 1935

WAS THE NEW DEAL A RESPONSE TO DEMOCRATIC PRESSURE OR AN EXERCISE IN SOCIAL CONTROL?

WELFARE TO WEAKEN THE POOR AND MUTE SOCIAL DISORDER (CLOWARD AND PIVEN);

MANY SOCIAL HISTORIANS REJECTED THEIR THESIS;

‘NEW DEAL CANNOT BE SIMPLY EXPLAINED BY CLASS STRUGGLE’ (SKOCPOL, 1995);

SOCIAL PROVISIONS WERE DESIGNED TO MEET THE NEEDS OF UNEMPLOYED;

PLURALISTS EMPHASISED THE IMPORTANCE OF SOCIETAL INFLUENCE ON THE POLITICAL PROCESS (SKOCPOL, FINEGOLD, GOLDFIELD, 1990);

CONCLUSION‘INCOMPLETE WELFARE STATE’ (SKOCPOL, 1995);

THE NEW DEAL OPENED POSSIBILITIES FOR OLD-AGE PENSIONS AND OTHER INSURANCES;

SOCIAL SECURITY ACT OF 1935 CREATED A BASIS FRAMEWORK FOR THE U.S SOCIAL POLICY, AND IT IS STILL IN PLACE;