1933 - 1939
Dec 26, 2015
1933 - 1939
Learning Targets
•Students will be able to explain the different programs that made up the New Deal and the Second New Deal and their impact on American society
Roosevelt Takes Office• Election of 1932
Hoover was blamed for much of the effects of the depression
Franklin Delano Roosevelt (FDR) elected president
Program for dealing with depression called the New Deal
Roosevelt was outgoing, confident, and gave hope to the American people
Former governor of New York Married to his cousin, Eleanor
Roosevelt
Roosevelt Takes Office• Polio
FDR contracted polio in 1921 which paralyzed his legs
FDR refused to let people see him as handicapped – all photos showed him standing or seated – never in a wheel chair
FDR established a foundation for polio victims
Entertainer Eddie Cantor suggested every American donate a dime
Drive became known as the March of Dimes and in 1945 FDR’s face was placed on the dime
First New Deal• The Hundred Days
First hundred days of FDR’s administration – flood of bills passed into law
Emergency Banking Relief Act – closed all banks and re-opened those that were financially sound
Fireside Chats – FDR talked over radio directly to the American public to explain problems and solutions
First New Deal Established Security and
Exchange Commission (SEC) – regulated stock exchange and prevented fraud
Glass-Steagall Act – separated commercial banking from investment banking
Federal Deposit Insurance Corporation (FDIC) – provided government insurance for bank deposits up to a certain amount
First New Deal• Farms
Agricultural Adjustment Administration (AAA) – paid farmers not to grow food to raise crop prices
Killed livestock to raise meat prices
Large commercial farmers mostly benefitted
Small farmers, many poor black and white sharecroppers hurt by program
First New Deal• Industry
National Industrial Recovery Act (NIRA) – suspended anti-trust laws and allowed businesses, labor, and government to set up rules for industry
National Recovery Administration (NRA) – ran the program set up by the NIRA. Businesses that agreed to rules were given the Blue Eagle to show participation
First New Deal• Relief Programs
The Civilian Conservation Corps (CCC) – offered jobs to young men 18 – 25 years old building national parks, working in forests, and constructing dams
Federal Emergency Relief Administration (FERA) – gave money to states to administer through their relief programs
Public Works Administration (PWA) – began public construction projects like dams and roads. Required companies to hire blacks
First New Deal Civil Works
Administration (CWA) Hired workers directlyEmployed over 4 million
peopleBuilt airports, schools,
playgrounds & parks, and playing fields
CWA abolished in 1934 and workers fired
Why?
The Second New Deal• New Deal programs had
not significantly impacted the Great Depression• Unemployment still high• Government in deficit
spending – government borrowing money to operate • FDR gaining opposition
from other groups
The Second New Deal• Huey Long
Most serious threat Democratic senator from
Louisiana Populist / Boss of political
machine Attacked the rich Established 27,000 “Share Our
Wealth” clubs nationwide If third party candidate in 1936
election could split Democratic vote and give election to Republicans
Assassinated 1935
The Second New Deal• Father Coughlin
Catholic Priest – Detroit Populist Popular radio show Called for heavy taxes on
wealthy and nationalization of banking system
1935 established National Union for Social Justice – Democrats feared would become 3rd party
The Second New Deal• The Townsend Plan
Dr. Francis Townsend Proposed federal
government pay pension of $200 to every citizen over age 60
Recipients would have to retire and spend entire pension check each month
What would this accomplish?
Elderly politically mobilized – threatened 1936 election
The Second New Deal• First New Deal failed to
generate economic recovery• Second New Deal launched
to speed up recovery• Works Progress
Administration (WPA) Employed workers in public
works projects (roads, dams, airports, etc.)
Artists hired to create murals in public buildings
Actors & musicians employed
The Second New Deal• The Supreme
Court New Deal meeting
resistance in Congress
Supreme Court struck down NIRA in Schecter v. United States
The Second New Deal• Rise of Labor Unions
1935 National Labor Relations Act (aka Wagner Act) – guaranteed right of labor to organize and bargain collectively
Law established National labor Relations Board – organized factory elections by secret ballot
Set up process of Binding Arbitration – neutral party would listen to both sides and decide the issue
The Second New Deal• The Committee for Industrial
Organization (CIO) – organized labor where it did not yet exist especially in auto and steel industries• Sit-Down Strikes – workers
stop working but refuse to leave the factory• CIO grew to largest union –
changed name to Congress of Industrial Organizations
The Second New Deal• 1935 Social Security Act
Goal to provide security for elderly and unemployed workers
Workers paid into the program
Provided monthly retirement benefit at age 65
Provided unemployment insurance
Left out farmers and domestics (65% of black workers)
The New Deal Coalition• Blacks and women
supported by First Lady Eleanor Roosevelt• FDR appointed first
female cabinet member – Frances Perkins (Secretary of Labor)• Great Depression turned
the black vote to Democrats
The New Deal Coalition• The Election of 1936
Republican nominee Alfred Landon
Left-wing threats to FDR weak (Huey Long assassinated in 1935)
Union Party formed with Townsend and Coughlin but had no leadership
Landslide victory for FDR
The New Deal Coalition• Court-Packing Plan
Supreme Court declared the AAA unconstitutional
FDR developed plan to retire some judges and increase number from 9 to 15
Public saw this as power play – hurt FDR’s reputation
• Roosevelt Recession 1937 unemployment surged FDR cut spending – economy
tanked Keynesian Economics – deficit
spending
The New Deal Coalition• Last Reforms
National Housing Act – help for low-cost housing
Farm Security Administration – gave loans to tenant farmers so they could purchase farms
Fair Labor Standards Act – established protection for workers, abolished child labor, and established 40-hour work week
The New Deal Coalition• Legacy of New Deal
Late 1930’s saw more resistance to FDR from Republicans and Southern Democrats
New Deals had limited success in dealing with Depression
FDR did NOT end the Depression Federal government had taken far
greater powers Broker State – US government
working out conflicts between different groups
Safety Net – safeguards and programs that protected Americans from economic disaster