Showing posts with label New Deal. Show all posts
Showing posts with label New Deal. Show all posts

Friday, 14 August 2020

F. D. ROOSEVELT'S NEW DEAL, 'THE SOCIAL SECURITY ACT'

The Social Security Act of 1935
Today, The Grandma is still at home. She is reading some news about the future of some social benefits and she thinks that winter is coming for social rights. A new economical crisis is emerging and, as always, the weakest people are going to pay the party, in y¡that case unemployed and retired ones.

On a day like today in 1935, a law enacted by the 74th United States Congress and signed into law by US President Franklin D. Roosevelt was approved, the Social Security Act of 1935, a law that was part of Roosevelt's New Deal domestic program that tried to rose up American economy and employment.

The Grandma wants to talk about this law to remember that the most important thing for a government is the protection of its citizens and the creation of labour opportunities and the distribution of richness between all of them.

The Social Security Act of 1935 is a law enacted by the 74th United States Congress and signed into law by US President Franklin D. Roosevelt.

The law created the Social Security program as well as insurance against unemployment. The law was part of Roosevelt's New Deal domestic program.

By the 1930s, the United States was the only modern industrial country without any national system of social security. In the midst of the Great Depression, the physician Francis Townsend galvanized support behind a proposal to issue direct payments to the elderly.


Responding to that movement, Roosevelt organized a committee led by Secretary of Labor Frances Perkins to develop a major social welfare program proposal. Roosevelt presented the plan in early 1935 and signed the Social Security Act into law on August 14, 1935. The act was upheld by the Supreme Court in two major cases decided in 1937.

The law established the Social Security program. The old-age program is funded by payroll taxes, and over the ensuing decades, it contributed to a dramatic decline in poverty among the elderly, and spending on Social Security became a major part of the federal budget.

The Social Security Act also established an unemployment insurance program administered by the states and the Aid to Dependent Children program, which provided aid to families headed by single mothers.

The Social Security Act, 1935
The law was later amended by acts such as the Social Security Amendments of 1965, which established two major healthcare programs: Medicare and Medicaid.

Industrialization and the urbanization in the 20th century created many new social problems and transformed ideas of how society and the government should function together because of them. As industry expanded, cities grew quickly to keep up with demand for labor. Tenement houses were built quickly and poorly, cramming new migrants from farms and Southern and Eastern European immigrants into tight and unhealthy spaces. Work spaces were even more unsafe.

By the 1930s, the United States was the only modern industrial country in which people faced the Depression without any national system of social security though a handful of states had poorly-funded old-age insurance programs.

The federal government had provided pensions to veterans in the aftermath of the Civil War and other wars, and some states had established voluntary old-age pension systems, but otherwise, the United States had little experience with social insurance programs. For most American workers, retirement during old age was not a realistic option.

In the 1930s, the physician Francis Townsend galvanized support for his pension proposal, which called for the federal government to issue direct $200-a-month payments to the elderly. Roosevelt was attracted to the general thinking behind Townsend's plan because it would provide for those no longer capable of working, stimulate demand in the economy, and decrease the supply of labor.

More information: Our Documents

In 1934, Roosevelt charged the Committee on Economic Security, chaired by Secretary of Labor Frances Perkins, with developing an old-age pension program, an unemployment insurance system, and a national health care program.

The proposal for a national health care system was dropped, but the committee developed an unemployment insurance program that would be largely administered by the states. The committee also developed an old-age plan; at Roosevelt's insistence, it would be funded by individual contributions from workers.

In January 1935, Roosevelt proposed the Social Security Act, which he presented as a more practical alternative to the Townsend Plan. After a series of congressional hearings, the Social Security Act became law in August 1935.

During the congressional debate over Social Security, the program was expanded to provide payments to widows and dependents of Social Security recipients. 

The Social Security Act, 1935
Job categories that were not covered by the act included workers in agricultural labor, domestic service, government employees, and many teachers, nurses, hospital employees, librarians, and social workers.

The program was funded through a newly-established payroll tax, which later became known as the Federal Insurance Contributions Act tax.

Social Security taxes would be collected from employers by the states, with employers and employees contributing equally to the tax. Because the Social Security tax was regressive, and Social Security benefits were based on how much each individual had paid into the system, the program would not contribute to income redistribution in the way that some reformers, including Perkins, had hoped.

In addition to creating the program, the Social Security Act also established a state-administered unemployment insurance system and the Aid to Dependent Children, which provided aid to families headed by single mothers.

Compared with the social security systems in Western Europe, the Social Security Act of 1935 was rather conservative. However, it was the first time that the federal government took responsibility for the economic security of the aged, the temporarily unemployed, dependent children, and the handicapped.


In 1940, Social Security benefits paid totaled $35 million and rose to $961 million in 1950, $11.2 billion in 1960, $31.9 billion in 1970, $120.5 billion in 1980, and $247.8 billion in 1990, all figures in nominal dollars, not adjusted for inflation. In 2004, $492 billion of benefits were paid to 47.5 million beneficiaries. In 2009, nearly 51 million Americans received $650 billion in Social Security benefits.

During the 1950s, those over 65 continued to have the highest poverty rate of any age group in the US with the largest percentage of the nation's wealth concentrated in the hands of Americans under 35.

By 2010, that figure had dramatically reversed itself with the largest percentage of wealth being in the hands of Americans 55-75 and those under 45 being among the poorest. Elder poverty, once a normal sight, had thus become rare by the 21st century.

Reflecting the continuing importance of the Social Security Act, biographer Kenneth S. Davis described the Social Security Act the most important single piece of social legislation in all American history.

More information: History


The program for social security that is now pending
before the Congress is a necessary part of the future
unemployment policy of the government.

Franklin D. Roosevelt

Friday, 24 July 2020

THE DUST BOWL, THE BIG DROUGHTS IN NORTH AMERICA

The Dust Bowl, The USA, 1930's
Today, The Grandma is relaxing at home. She has corrected the last exams of The Watsons and she has decided to read a little.

She has chosen an amazing theme, the Dust Bowl, the period of severe dust storms that greatly damaged the ecology and agriculture of the American and Canadian prairies during the 1930s.

On a day like today in 1935, the Dust Bowl heat wave reached its peak, sending temperatures to 43 °C in Chicago and 40 °C in Milwaukee.

This phenomenon explains how important is to know and respect nature and not alterating it. Nowadays, we listen to a lot of stories about climate change but, in fact, is something very old, as old as the direct influence of the human on nature.


The Dust Bowl was a period of severe dust storms that greatly damaged the ecology and agriculture of the American and Canadian prairies during the 1930s; severe drought and a failure to apply dryland farming methods to prevent the Aeolian processes (wind erosion) caused the phenomenon.

The drought came in three waves, 1934, 1936, and 1939–1940, but some regions of the High Plains experienced drought conditions for as many as eight years.

With insufficient understanding of the ecology of the plains, farmers had conducted extensive deep plowing of the virgin topsoil of the Great Plains during the previous decade; this had displaced the native, deep-rooted grasses that normally trapped soil and moisture even during periods of drought and high winds.


More information: Smithsonian

The rapid mechanization of farm equipment, especially small gasoline tractors, and widespread use of the combine harvester contributed to farmers' decisions to convert arid grassland, much of which received no more than 250 mm of precipitation per year to cultivated cropland.

During the drought of the 1930s, the unanchored soil turned to dust, which the prevailing winds blew away in huge clouds that sometimes blackened the sky. These choking billows of dust -named black blizzards or black rollers -travelled cross country, reaching as far as the East Coast and striking such cities as New York City and Washington, D.C. On the plains, they often reduced visibility to 1 m or less.

Associated Press reporter Robert E. Geiger happened to be in Boise City, Oklahoma, to witness the Black Sunday black blizzards of April 14, 1935; Edward Stanley, the Kansas City news editor of the Associated Press, coined the term Dust Bowl while rewriting Geiger's news story.


The Dust Bowl, The USA, 1930's
While the term the Dust Bowl was originally a reference to the geographical area affected by the dust, today it usually refers to the event itself, the term Dirty Thirties is also sometimes used.

The drought and erosion of the Dust Bowl affected 400,000 km2 that centered on the panhandles of Texas and Oklahoma and touched adjacent sections of New Mexico, Colorado, and Kansas.

The Dust Bowl forced tens of thousands of poverty-stricken families to abandon their farms, unable to pay mortgages or grow crops, and losses reached $25 million per day by 1936 (equivalent to $460,000,000 in 2020). Many of these families, who were often known as Okies because so many of them came from Oklahoma, migrated to California and other states to find that the Great Depression had rendered economic conditions there little better than those they had left.

The Dust Bowl has been the subject of many cultural works, notably the novel The Grapes of Wrath (1939) by John Steinbeck, the folk music of Woody Guthrie, and photographs depicting the conditions of migrants by Dorothea Lange.

The Dust Bowl area lies principally west of the 100th meridian on the High Plains, characterized by plains which vary from rolling in the north to flat in the Llano Estacado. Elevation ranges from 760 m in the east to 1,800 m at the base of the Rocky Mountains. The area is semiarid, receiving less than 510 mm of rain annually; this rainfall supports the shortgrass prairie biome originally present in the area.


More information: History Collection

The region is also prone to extended drought, alternating with unusual wetness of equivalent duration. During wet years, the rich soil provides bountiful agricultural output, but crops fail during dry years. The region is also subject to high winds.

During early European and American exploration of the Great Plains, this region was thought unsuitable for European-style agriculture; explorers called it the Great American Desert.


The lack of surface water and timber made the region less attractive than other areas for pioneer settlement and agriculture.

The federal government encouraged settlement and development of the Plains for agriculture via the Homestead Act of 1862, offering settlers 65 ha plots.


With the end of the Civil War in 1865 and the completion of the First Transcontinental Railroad in 1869, waves of new migrants and immigrants reached the Great Plains, and they greatly increased the acreage under cultivation.

The Dust Bowl, The USA, 1930's
An unusually wet period in the Great Plains mistakenly led settlers and the federal government to believe that rain follows the plow, a popular phrase among real estate promoters, and that the climate of the region had changed permanently.

While initial agricultural endeavours were primarily cattle ranching, the adverse effect of harsh winters on the cattle, beginning in 1886, a short drought in 1890, and general overgrazing, led many landowners to increase the amount of land under cultivation.

Recognizing the challenge of cultivating marginal arid land, the United States government expanded on the 65 ha offered under the Homestead Act -granting 260 ha to homesteaders in western Nebraska under the Kinkaid Act (1904) and 130 ha elsewhere in the Great Plains under the Enlarged Homestead Act of 1909.

Waves of European settlers arrived in the plains at the beginning of the 20th century.


A return of unusually wet weather seemingly confirmed a previously held opinion that the formerly semiarid area could support large-scale agriculture. At the same time, technological improvements such as mechanized plowing and mechanized harvesting made it possible to operate larger properties without increasing labour costs.

The combined effects of the disruption of the Russian Revolution, which decreased the supply of wheat and other commodity crops, and World War I increased agricultural prices; this demand encouraged farmers to dramatically increase cultivation. For example, in the Llano Estacado of eastern New Mexico and north western Texas, the area of farmland was doubled between 1900 and 1920, and then tripled again between 1925 and 1930.


More information: The Balance

The agricultural methods favoured by farmers during this period created the conditions for large-scale erosion under certain environmental conditions.


The widespread conversion of the land by deep plowing and other soil preparation methods to enable agriculture eliminated the native grasses which held the soil in place and helped retain moisture during dry periods. Furthermore, cotton farmers left fields bare during winter months, when winds in the High Plains are highest, and burned the stubble as a means to control weeds prior to planting, thereby depriving the soil of organic nutrients and surface vegetation.

After fairly favourable climatic conditions in the 1920s with good rainfall and relatively moderate winters, which permitted increased settlement and cultivation in the Great Plains, the region entered an unusually dry era in the summer of 1930. During the next decade, the northern plains suffered four of their seven driest calendar years since 1895, Kansas four of its twelve driest, and the entire region south to West Texas lacked any period of above-normal rainfall until record rains hit in 1941.

When severe drought struck the Great Plains region in the 1930s, it resulted in erosion and loss of topsoil because of farming practices at the time. The drought dried the topsoil and over time it became friable, reduced to a powdery consistency in some places.


The Dust Bowl, The USA, 1930's
Without the indigenous grasses in place, the high winds that occur on the plains picked up the topsoil and created the massive dust storms that marked the Dust Bowl period.

The persistent dry weather caused crops to fail, leaving the plowed fields exposed to wind erosion. The fine soil of the Great Plains was easily eroded and carried east by strong continental winds.

On November 11, 1933, a very strong dust storm stripped topsoil from desiccated South Dakota farmlands in just one of a series of severe dust storms that year. 


Beginning on May 9, 1934, a strong, two-day dust storm removed massive amounts of Great Plains topsoil in one of the worst such storms of the Dust Bowl. The dust clouds blew all the way to Chicago, where they deposited 5500 tonnes of dust. Two days later, the same storm reached cities to the east, such as Cleveland, Buffalo, Boston, New York City, and Washington, D.C. That winter (1934–1935), red snow fell on New England.

On April 14, 1935, known as Black Sunday, 20 of the worst black blizzards occurred across the entire sweep of the Great Plains, from Canada south to Texas. The dust storms caused extensive damage and appeared to turn the day to night; witnesses reported that they could not see five feet in front of them at certain points.


Denver-based Associated Press reporter Robert E. Geiger happened to be in Boise City, Oklahoma, that day. His story about Black Sunday marked the first appearance of the term Dust Bowl; it was coined by Edward Stanley, Kansas City news editor of the Associated Press, while rewriting Geiger's news story.

More information: The Atlantic

The greatly expanded participation of government in land management and soil conservation was an important outcome from the disaster. Different groups took many different approaches to responding to the disaster. To identify areas that needed attention, groups such as the Soil Conservation Service generated detailed soil maps and took photos of the land from the sky.

To create shelterbelts to reduce soil erosion, groups such as the United States Forestry Service's Prairie States Forestry Project planted trees on private lands. Finally, groups like the Resettlement Administration, which later became the Farm Security Administration, encouraged small farm owners to resettle on other lands, if they lived in drier parts of the Plains.

During President Franklin D. Roosevelt's first 100 days in office in 1933, his administration quickly initiated programs to conserve soil and restore the ecological balance of the nation. Interior Secretary Harold L. Ickes established the Soil Erosion Service in August 1933 under Hugh Hammond Bennett.

In 1935, it was transferred and reorganized under the Department of Agriculture and renamed the Soil Conservation Service. It is now known as the Natural Resources Conservation Service (NRCS).

As part of New Deal programs, Congress passed the Soil Conservation and Domestic Allotment Act in 1936, requiring landowners to share the allocated government subsidies with the labourers who worked on their farms.


Under the law, benefit payments were continued as measures for production control and income support, but they were now financed by direct Congressional appropriations and justified as soil conservation measures. The Act shifted the parity goal from price equality of agricultural commodities and the articles that farmers buy to income equality of farm and non-farm population.

Thus, the parity goal was to re-create the ratio between the purchasing power of the net income per person on farms from agriculture and that of the income of persons not on farms that prevailed during 1909–1914.

More information: Soap Boxie


As a young girl, I saw commitment in my grandmother,
who helped Grandpa homestead our farm on the Kansas prairie.
Somehow they outlasted the Dust Bowl, the Depression,
and the tornadoes that terrorize the Great Plains.

Sheri L. Dew