FDR and the New Deal

FDR and the New Deal

Outcome:• Americans are ready for a change by 1932• Hoover blamed for doing nothing• FDR wins (23 million to 16 million votes) - In acceptance speech FDR promises “a

new deal for the American people”

The Election of 1932

Republican President

Herbert Hoover

Democrat Governor of NY Franklin D.

Roosevelt

vs.

FDR Background Info

Born 1882 in Hyde Park, NY - 5th cousin of Theodore Roosevelt

Attended Harvard &Columbia Law School

Married in 1905 toEleanor Roosevelt

1910 elected to NewYork state Senate

FDR Background Info

1913 appointed AssistantSecretary to Navy by Wilson

1920 Democratic Nominee for Vice President w/Cox

1921 stricken w/Polio (paralyzed from waist down)

1928 elected Governor of New York

Prior to FDR’s inauguration as president:• Handpicks advisors (professors, lawyers,

journalists) nicknamed his Brain Trust• Develops the New Deal FDR’s

program to ease the problems of the Great Depression

President-Elect

Three Goals of New Deal: 1. Relief (immediate help for the needy)

2. Recovery (temporary programs to restart economy)

3. Reform (programs to prevent another depression)

Hundred Days: period of intense activity by FDR’s administration once taking office

The Hundred Days

Outcome: • Congress passes 15 pieces of New Deal legislation• Expanded the governments role in the economy

Fireside Chats:• Informal radio talks from FDR to the American

people• Discusses issues of concern and explained New

Deal programs

The New Deal

Outcome: • American public felt like FDR was talking directly to

them and their needs were going to be met

Step 1 Reform: Banking and Financial Reforms• Closes all banks (Bank Holiday) (March 5, 1933 1 day after taking office)

• Emergency Banking Relief Act – Treasury Dept. inspects banks– Banks that were sound can open & those that can’t pay debts

remain closed– Banks which need help can receive loans from govt.

The New Deal

Outcome: • Revived American’s confidence in banks

The New Deal• Glass-Steagall Act

– Established the Federal Deposit Insurance Corp. (FDIC)– Provided federal insurance for individual bank accounts

up to $5,000

Outcome: • Reassured customers that their money was safe

Roosevelt signing the Glass-Steagall Act in 1933 FDIC logo (1933)

The New Deal Federal Securities Act

– Required corporations to provide complete information about their stocks

– Corporations were made liable for any misrepresentations

Outcome: • Regulated the stock market• Americans gain some confidence back in the stock market

Roosevelt signing the Glass-Steagall Act in 1933 SEC logo (1934)

Securities and Exchange Commission (SEC) – Prevent anyone with inside

information from “fixing” the stock market for their personal profit

Step 2 Recovery: Help the American economy w/jobs• Agricultural Adjustment Act (AAA)

– Goal = raise crop prices by reducing supply– Govt. would pay farmers NOT to seed every acre– Govt. would pay cotton growers to plow under existing crops– Govt. would pay hog farmers to slaughter a % of their pigs

The New Deal

Outcome: • Upset many who were hungry to purposely destroy food• Overall…. prices did rise and farmers made more money

• Tennessee Valley Authority (TVA) – Goal = develop the badly depressed Tennessee River Valley– Govt. paid for projects in the region which created jobs

» Repair and Construct Damns» Provide Flood Control» Institute Hydroelectric power

The New Deal

Outcome: • Provided much needed jobs and improved the overall

economy of the region

• Civilian Conservation Corps. (CCC) – Goal = provide relief through work projects which provide jobs – Govt. paid men, gave lodging, food, & uniforms (age 18-25) to:

» Build Roads » Develop new and existing Parks» Plant Trees» Help with soil-erosion and flood-control

The New Deal

Outcome: • Provided 3 million men with jobs and wages• Provided new infrastructure within America• Helped reforest the Great Plains to prevent another Dust Bowl

National Industrial Recovery Act (NIRA) – Provided money to states to create jobs– Created the 3 following programs:

The New Deal

Outcome: • Built 40,000 schools• Paid 50,000 rural teachers salaries• Built 500,000 miles of roads

1. Public Works Administration (PWA)

– built large-scale public works such as dams, bridges, hospitals, and schools

– Goal: provide jobs & stimulate the economy

2. Civil Works Administration (CWA)

– built bridges and various public buildings

– Goal: rapidly create manual labor jobs for millions of unemployed workers

3. National Recovery Administration (NRA) – Goal = establish codes of fair practice for industries

» Set prices of products» Established standards for products

The New Deal

Outcome: • Limited production and established prices• Led Congress to guarantee workers right to unionize and

bargain collectively

Step 3 Relief: Help Americans at home

The New Deal

Home Owners Loan Corp. (HOLC)

- Govt. will provide loans to homeowners who faced foreclosure

Federal Housing Admin. (FHA)

- Govt. backed loans for mortgages & home repairs

The New Deal

Outcomes: • Assisted the

unemployed with jobs, food, and clothing

• Enabled needy Americans to re-gain their self-confidence and self-respect

Federal Emergency Relief Admin. (FERA) - Govt. funded 500 million for direct state relief of the needy- Provided food & clothing to unemployed, elderly, and ill- Provided work relief to those unemployed

How to pay for the New Deal?

Deficit Spending

Deficit Spending: Spending more money than thegovernment receives in revenue

Answer “Deficit Spending is a

necessary evil only to be used

in a great time of crisis”

Outcome….

Opposition Emerges

Liberal Critics: • New Deal didn’t go

far enough to help the poor and reform the nation’s economic system

Conservative Critics: • FDR spent too much

money on direct relief• FDR used New Deal to

take federal control of business and the economy

Other Critics: • New Deal interfered with a

free-market economy

The Critics

Three American Critics

Charles Coughlin: • Catholic priest &

radio host• Accused FDR of NOT

doing enough to fight the depression

Dr. Francis Townsend: • Doctor & California

Health Officer• FDR NOT doing enough

to help poor & elderly• Suggests a pension plan

for the elderly

Huey Long: • Senator of Louisiana• His Solution: Share the Wealth

- suggests higher taxes on rich & redistribute money to the poor (Robin Hood Theory)

1935: Supreme Court rules the NIRA unconstitutional1936: Supreme Court rules the AAA unconstitutional

Supreme Court Reacts

“The Supreme Court will

dismantle my New Deal”1937: FDRproposes aCourt ReformBill to appoint6 new justices

Americans & Congressaccuse FDR of violatingthe U.S. Constitution

1937: a justice retires &FDR appoints a liberaljudge who supports theNew Deal

Outcome:• Overwhelming victory for FDR• Democrats win in both Houses• 1st time Blacks vote Democrat• 1st time Labor backs a

candidate

The Election of 1936

Republican Kansas Gov. Alfred Landon

Democrat President Franklin D. Roosevelt

vs.

Second New Deal to address the problems of the elderly, the poor, and unemployed

Second Hundred DaysCreates the……

The Second New Deal

Second New DealFarmers

Soil Conservation andDomestic Allotment Act:

– Paid farmers for cutting out crops which deplete the soil

– Rewards farmers for using soil conservation methods

Second AgriculturalAdjustment Act (1938):

– Brought back most features of 1st AAA

– Removed the tax to pay for farm subsides (part ruled unconstitutional)

Second New DealFarmers

ResettlementAdministration:

– Govt. provides loans to small farmers to buy land

– Replaced by

Farm Security Administration:– Govt. loaned money to

tenant farmers to buy land– Govt. established camps for

migrant workers

Second New DealWorkers

Works Progress Administration:– Purpose: to provide the unemployed with jobs in:

• Teaching• Construction• Garment Making• The Arts• Other

Second New DealWorkers

Wagner Act:– Re-established collective bargaining rights – Protected workers right to join unions– Prohibited unfair labor practices– Created National Labor Relations Board (NLRB)

to hear cases about unfair labor practices

Fair Labor Standards Act:– Set maximum hours of work a week (40 hrs)– Set up a federal minimum wage (25 cents)– Set rules for employment of those under 16– Banned hazardous work for those under 18

Second New DealElderly and Workers

Social Security Act:– Three Parts:1. Old-age insurance for retirees 65

and older (plus their spouses)2. Unemployment compensation

system3. Aid to families with dependent

children and the disabled

Second New Deal

National Youth Administration:– Purpose: to provide education, jobs,

counseling, and recreation for youth

Young People

Second New Deal

Rural Electrification Administration (REA)– Purpose: Govt. financed and

worked with electrical companies to bring electricity to rural areas

Utilities and Regulations

Public Utility Holding Company Act– Purpose: to regulate public

utilities– Outlawed ownership of

utilities by multiple holding companies

Women– Provided some women with the opportunity

to increase their political influence and to promote women’s rights

Effects of New Deal

Eleanor Roosevelt- Transforms role of the First Lady- Led fight for equality for woman

African Americans– Eleanor Roosevelt protests against racial

discrimination and urged the President improve their situation

– Black Cabinet African American leaders who advised FDR on racial issues

Effects of New Deal

Mary McLeod Bethune: member of the Black Cabinet

- Believed the New Deal created a “new day” for African Americans- She noted that African Americans gained unprecedented access to the White House and positions within the government under FDR

Native Americans– New Deal helped the lives of Native Americans– Indian Reorganization Act: moved away from

assimilation and more towards autonomy – Ownership of “Reservation Land” to the Native

Americans

– Native American lands would belong to entire tribe

– Native Americans could attend school on reservations

– Tribes can elect tribal councils to govern reservations

Effects of New Deal

New Political Coalition– New Deal Coalition brought together southern

whites, northern blue-collar workers, poor mid-western farmers, and African Americans• Prior to FDR, African Americans voted Republican• Gave power to the Democrats from 30s-mid 90s

Effects of New Deal

Expands Power of the Government

– Govt. broke from the tradition of laissez faire

– Govt. was expected to intervene

Effects of New Deal

Created a Welfare State– Govt. assumes the responsibility for

providing for the welfare of children and the poor, elderly, sick, disabled, and unemployed• This was new to the U.S., the

American people had never been given aid by the gov’t before

Environment– Following in the footsteps of

his cousin FDR set aside 12 million acres of land for new national parks

Effects of New DealChanges the Presidency

– President plays greater role in govt.– Led to an amendment to be added:

• 22nd Amendment limits the amount of terms a president can serve– Why ?

Overall The New Deal:• Provided relief and reform • Expanded role of the govt.• Increased power of presidency• Provided new opportunities for women• Improved the lives of Native Americans

Effects of New Deal

*Please Note* - The New Deal DID NOT end the Great Depression - WWII DID with its massive military spending