By Bea Lumpkin
(Author's note: Someone may want to develop this important subject. At the time I wrote this about 14 years ago, I looked into criteria for selecting the local infrastructure projects. It was a huge mobilization of many layers of government. There are still streets in far SE side of Chicago, put in by WPA.)
"...the principal factor in our economic recovery was the expenditure of public funds for public works, work relief, direct relief, and the agricultural adjustment and resettlement programs" To this summary, Frances Perkins, Roosevelt's Labor Secretary and first woman cabinet member, added some prophetic words:
"We have learned enough about the effect of public expenditures when private expenditures fall during a depression to make the country and the Congress aware of the value of a public works program. If we are to attach our will to a program of maximum employment, as the Congress provided in 1945 by passing the Full Employment bill, we shall have good use for that knowledge. The experience of the Roosevelt era will be of vast importance..." 277
Since Perkins wrote those words, the Full Employment Act was strengthened in 1981, a victory won by labor's massive Solidarity Day March. But plant closings and downsizing the work force have continued, creating unemployment and underemployment affecting 20 million workers. Still the federal government refuses to carry out the Full Employment Act although the job situation remains bleak. Jobs for the unemployed has become a major issue for the 1992 elections.
On this issue there is a lot to learn from the job struggles of the 30's. With no social security or relief programs established before the 30's, workers had to fight for every single gain that was made. Their struggles won a response from the new government of Franklin D. Roosevelt (FDR), just elected on a program of relief for the unemployed. A combination of humanistic feelings and a desire to save the capitalist system led Harry Hopkins, a key Roosevelt aide, to write:
"If we had no other reason for it than to keep the system going, ways would have to be figured out by which the worker could buy back his full share of the goods he helped to put through the mill of national business.." Hopkins said ," We are sometimes accused of stirring up class hatreds when we say such things." Still he stuck to the belief that "there is no need for any American to be destitute, to be illiterate." Hopkins, Spending to Save, 179
How did the public works program "jump start" the economy in the 30's? By putting the country back to work on useful, government funded, work projects. Just 16 days after November 9, 1933, when the money was made available for Civilian Works Administration, 814,511 unemployed were put to work. "Two weeks later, that number reached nearly 2,000.000 and by mid-January, 4,263,644" (Ruth Norrick, Labor Today, Jan. 1983). Today, with computers, it could be done even faster.
How large was the commitment? Of the many programs including direct relief, W.P.A. was the largest and its funding did not exceed 2 billion dollars per year. In present day terms a similar amount, adjusted for the increase in the country's GNP (Gross National Product), would require 212 billion dollars. (In 1934 GNP was 49 billions dollars and in 1989 it was 5,200 billions.)
Large housing projects were among the first projects begun by CWA and later, the WPA. Perkins tells why: "No type of public works better illustrates the opportunity to put large numbers of people to work, both on the site and in the supply and transportation of materials, and to make, at the same time, proud and worthy contributions to the community. River control projects, having for their purpose prevention of floods, development of irrigation and prevention of soil erosion, were also among the early undertakings approved. Schools, health and hospital centers, where those facilities were lacking, as well as sound, well-planned highway projects, also received early approval."
The unemployed today have not been allowed to establish large Hoovervilles, the shanty towns set up by the unemployed in the 30's. For example, the City of Chicago has just ordered the removal of the 1-room "mad" houses, built by friends of the homeless. In fact, there are probably more homeless now than in the bad years of the 30's because much low cost housing has been demolished or gentrified. If anything, large housing construction projects are probably needed more now than in the 30's.
What was the economic impact of the public works programs? First Perkins describes how bad it was: "National income had declined from $81 billion to $39 billion. Banks were collapsing throughout the nation. Relief stations were closing down for lack of funds. Hunger marchers were on parade. Food riots were becoming more common. Crime, born of the need for food, clothing, and other necessities of life, was on the upsurge." 183
After the jobs projects began, the improvement was dramatic. In 1934 the national income was $49 billion. By 1937 it was $71 billion. Perkins 273 But there was another downturn, as Perkins points out (277) "When things began to get a little better after 1936, there was a disposition on the part of Congress and many others to believe that the time had come to retrench on public works expenditure. A retrenchment policy was put into effect. The recession of 1937 was undoubtedly the result."
The purchasing power of workers in private industry was also going up because the Wagner Labor Relations Act, minimum wage, overtime after 40 hours, and abolition of child labor was encouraging union organization and ending the competition of children with their parents in the work place.
WPA had one fault that its director, Harry Hopkins, acknowledged in his book suitably titled, Spending to Save. About a half million people, certified as eligible, never got WPA jobs because funds were not adequate. Workers who were not citizens were not eligible for WPA. Other federal jobs programs also had their faults, such as the military control of the CCC or Civilian Conservation Camps for youth.
Still the overall picture is overwhelmingly positive. The National Youth Administration supplied support which helped 400,000 students continue in school. Rural Electrification and road building brought the country's farms into the 20th century. The precedent was set for a still publicly owned authority that ccontinues to save consumers millions of dollars, the Tenessee Valley Authority. Projects such as producing hot lunches for school children, clothing and mattresses for the unemployed, and health services not only provided jobs for women but established sorely needed social services. Throughout the nation, 60% of all patients were receiving free medical care through the federal health projects.
Millions of fish were placed in rivers and lakes, thousands of acres of malarial lands were made habitable, and 200,000 drought-stricken families were aided with water conservation projects. WPA theater and art projects created a renaissance of art in the United States, not for the privileged few, as Hopkins said, but for all the people to enjoy. But most spectacular of all were the construction projects:
8,000 communities built or repaired water, sewers 168
6,000 communities built or repaired schools
7,000 built or repaired other public buildings
170 installed or repaired electric utilities
Thousands of acres of malarial lands made habitable
200,000 drought stricken families aided, water conserv.
400,000 women employed
250,000 garment workers made 30 million garments
hot school lunch program, home nursing
federal health projects, free care to 60% of nation's patients. immunized children
250,000 received literacy training, WPA teachers
Arts aided, unemployed professionals employed
visual and performing arts "democratization of culture" introduced hot lunches, day care children of working mothers, literacy, naturalization classes
166: 44,000 mi of roads, repaired 200 000 more. built 7,000 bridges over 10,000 culverts. 2700 mi storm & sanitary sewers, 9000 mi irrigation, drainage ditches. 2000 mi levees, ,1000 mi new water mains. built 400 pumping stations, 2000 playgrounds, 800 parks, 350 swimming pools, 4000 athletic fields
In short, as Hopkins summed it up, the WPA construction projects were needed, even if there had been no unemployment problem.
Another first for WPA was the employment of people formerly considered handicapped but given the chance, did their jobs very well. WPA paid the local prevailing wage. In any case, there was a minimum wage which in some areas was higher than the prevailing wage.
FDR's guidelines for works projects could serve the U.S. today:
1. The projects should be useful
2. Projects shall be of a nature that a considerable proportion of the money spent will go into wages for labor.
3. Projects which promise ultimate return to the Federal Treasury of a considerable proportion of the costs will be sought.
4. Funds allotted for each project should be actually and promptly spent and not held over until later years.
5. In all cases projects must be of a character to give employment to those on the relief rolls.
6. Projects will be allocated to localities or relief areas in relation to the number of workers on relief rolls in those areas.
source Harry Hopkins biography by Henry Adams 1977
These are just the prescription for a massive public housing program which could provide homes for the homeless and the hidden homeless, jobs for the unemployed, and job training for young workers. We have a job to do in November 1992
gnp 1928 81 billion
1930 39 billion perkins 183
May 22, 1933 FERA fed emer relief adm $500 million + state part plus another $850 million spent in 10 months, including Civil Works. FERA in brief life spent 4 billion on all project
broke the back of the depression 185
"never thought it was the complete answer, it kept people alive and instilled courage. In looking back, one sees that it provided a substantial stimulus to the revival of industry by creating purchasing power in a class previously destitute, and that it had a tremendous effect on raising the standards of living of the poorest and lowest paid people."
WPA July 38-39 spent over $2 billion
p 190 "many...did better on WPA than ever before in their lives. ..Among these were the handicapped, and it was not until the war years that they were again used to advantage. Many handicapped people got good jobs during the war and did them well. Business men learned to use the blind, the deaf, and the lame."
Perkins 273 quoting Jesse Jones, head Reconstruction Finance Corp:
1933 the national income was $42 billion. In 1934 $49 billion. 1937, $71 billion
276. "I think, on the whole, the original selections in the first year of public works laid the basis for the sound understanding we now have of the type of public works which will give the most employment per thousand dollars expended and will be of the greatest permanent advantage to the economic and cultural life of the people.
"Large housing projects were among the first approved, slum clearance in particular. No type of public works better illustrates the opportunity to put large numbers of people to work, both on the site and in the supply and transportation of materials, and to make, at the same time, proud and worthy contributions to the community. River control projects, having for their purpose prevention of floods, development of irrigation and prevention of soil erosion, were also among the early undertakings approved. Schools, health and hospital centers, where those facilities were lacking, as well as sound, well-planned highway projects, also received early approval.
277. "When things began to get a little better after 1936, there was a disposition on the part of Congress and many others to believe that the time had come to retrench on public works expenditure. A retrenchment policy was put into effect. The recession of 1937 was undoubtedly the result.
"It is my opinion that the principal factor in our economic recovery was the expenditure of public funds for public works, work relief, direct relief, and the agricultural adjustment and resettlement programs."
..."We have learned enough about the effect of public expenditures when private expenditures fall off during a depression to make the country and the Congress aware of the value of a public works program. If we are to attach our will to a program of maximum employment, as the Congress provided in 1945 by passing the Full Employment bill and making this the policy of the United States, we shall have good use for that knowledge. The experience of the Roosevelt era will be of vast importance to those who, in the next twenty-five years, begin the administration of this new policy."277 Perkins
Accomplishments WPA
put 3,500,000 people to work (Charles. Minister of Relief, 131)
parks: Fairmont West Va, Orland, IN (Charles 230-1)
Millions of fish placed in streams and lakes
Safety from floods
river front homes, Ohio River, Cincinnati, O, Evansville IN etc
flood control levees
schools built, WPA teachers
post office buildings
almost every county in the US Charles 231
Inadequacies
350,000 - 900,000 certified for WPA but not hired, n.s.f.
aliens not eligible
1937 poll, over 75% in every part of US wanted WPA continued (Charles 235)
Harry Hopkins Spending to Save
Only just complaint: relief not adequate 99
4 million destitute families, their responsibility
CWA, WPA not work relief, feels public ward
work program, job for wages
work relief : made work. but WPA, project needed doing even if no unemployed 114-5
brilliant, talented and able men without a job. 90% NYC architects unemployed/
CWA mostly construction but projects for clerical, women, technicians, artists, doctors and nurses, other professionals.
CWA followed by FERA, both short duration
1935 Emergency Relief Appropriation Act for Federal works 166
PWA non-federal projects
CCC
Federal-state highway program
Rural Electrification
Resettlement
Works Progress Administration: aim:"put 3,500,000 persons to work. Paid prevailing local wage rates, security monthly minimum, differs from region to region. annual $350 (southeast) to $780. 80% goes for labor, rest plus sponsor's for materials Hopkins 167
mostly construction, farm to market roads (70% were dirt roads before, pulled farmers out of the mud
8,000 communities built or repaired water, sewers 168
6,000 communities built or repaired schools
7,000 built or repaired other public buildings
170 installed or repaired electric utilities
Thousands of acres of malarial lands made habitable
200,000 drought stricken families aided, water conserv.
400,000 women employed
250,000 garment workers made 30 million garments
hot school lunch program, home nursing
federal health projects, free care to 60% of nation's patients. immunized children
250,000 received literacy training, WPA teachers
Arts aided, unemployed professionals employed
visual and performing arts "democratization of culture" introduced hot lunches, day care children of working mothers, literacy, naturalization classes
166: 44,000 mi of roads, repaired 200 000 more. built 7,000 bridges over 10,000 culverts. 2700 mi storm & sanitary sewers, 9000 mi irrigation, drainage ditches. 2000 mi levees, ,1000 mi new water mains. built 400 pumping stations, 2000 playgrounds, 800 parks, 350 swimming pools, 4000 athletic fields
"...there is no need for any American to be destitute, to be illiterate..." "We are sometimes accused of stirring up class hatreds when we say such things. On the contrary.." "The ways by which more and more people can have their rightful share of the national income I shall leave to the experts, the legislators, and to forces of labor who are intent on bringing this about. If we had no other reason for it than to keep the system going, ways would have to be figure out by which the worker could buy back his full share of the good he helped to put through the mill of national business. Hopkins 179
180 Hopkins "One may believe that the human being should come first...
There is reason to think that the present system is capable of giving to all its workers those things which are now the expectations of a comparative few...Wages must be raised and hours lowered. Unfair profits will have to be translated into lower unit price...young boys removed from competition with their fathers."
NYA 400,000 students aided to continue schooling Hopkins
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