"Democracy Can't Live in These Houses": Senator Paul Douglas Advocates a Federal Housing Program to Clear Slum Areas

Abstract: The Federal Housing Administration, established in 1934, helped middle-income families buy new homes and improve existing ones. Federal loans for low-cost housing, however, became available only after passage of the Wagner-Steagle Housing Act of 1937, and then only in modest amounts. To address a growing crisis, President Harry S. Truman, as part of his "Fair Deal" initiative, called for new slum clearance and housing legislation. Despite accusations of "socialized housing" and opposition from the real estate and construction industries, on July 15, 1949, Truman signed into law a bill providing $1.5 billion in loans and grants.Available to localities, this money would, in the President's words, "open up the prospect of decent homes in wholesome surroundings for low-income families now living in the squalor of the slums." In the following article published just prior to the bill's passage, Illinois Senator Paul Douglas, a professor of economics and former New Deal supporter, argued for effective legislation. Despite the law's progressive intent, urban renewal programs ultimately destroyed formerly vibrant neighborhoods. These programs were also used throughout the South and in Northern cities to strengthen segregation by relocating African-Americans away from white school districts.

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