The Great Depression and the New Deal 1933-1939 The country needs and…demands bold, persistent experimentation. It is common sense to take a method and.

The Great Depression The Great Depression and the New Dealand the New Deal

1933-19391933-1939The country needs and…demands bold, persistent The country needs and…demands bold, persistent

experimentation. It is common sense to take a experimentation. It is common sense to take a method and try it. If it fails, admit it frankly and try method and try it. If it fails, admit it frankly and try

another. But above all, try something.another. But above all, try something.

Franklin Roosevelt, 1932 Franklin Roosevelt, 1932

The Election of 1932The Election of 1932 11 million Americans unemployed 11 million Americans unemployed

(1932)(1932) RepublicansRepublicans re-nominated Herbert re-nominated Herbert

Hoover at convention in ChicagoHoover at convention in Chicago Republican Platform-Republican Platform- praised praised

Republican anti-depression Republican anti-depression policies, “sort of” promised to end policies, “sort of” promised to end prohibitionprohibition

DemocratsDemocrats met in Chicago (June met in Chicago (June 1932) nominated Franklin D. 1932) nominated Franklin D. Roosevelt Roosevelt

Democrat Platform-Democrat Platform- end prohibition, end prohibition, linked depression to Hoover & linked depression to Hoover & Republicans, balance budget, social Republicans, balance budget, social programs & economic reforms programs & economic reforms

Franklin RooseveltFranklin Roosevelt (FDR) (FDR) Born to a wealthy family- NYBorn to a wealthy family- NY 55THTH cousin to Theodore Roosevelt cousin to Theodore Roosevelt graduated Harvardgraduated Harvard Served NY legislatureServed NY legislature Governor of NYGovernor of NY Nominated VP (1920 with James Cox) LOST!Nominated VP (1920 with James Cox) LOST! Assistant Sec. of Navy- just like TR!Assistant Sec. of Navy- just like TR! 1921- Struck with Polio- wore metal braces on legs1921- Struck with Polio- wore metal braces on legs FDR’S WIFE- Eleanor Roosevelt (FDR’s distant FDR’S WIFE- Eleanor Roosevelt (FDR’s distant

cousin!) cousin!) Roosevelt commanded public media- deep concern Roosevelt commanded public media- deep concern

for the “forgotten man”– seen as a traitor to his classfor the “forgotten man”– seen as a traitor to his class Accepted his party nomination –in person (a 1st – set Accepted his party nomination –in person (a 1st – set

a precedent).--- Promised a “new deal” for Americaa precedent).--- Promised a “new deal” for America

The Election Campaign 1932The Election Campaign 1932

DemocratsDemocrats (FDR)- attacked Republicans (FDR)- attacked Republicans FDR presented himself as vibrant (“Roosevelt is FDR presented himself as vibrant (“Roosevelt is

Robust”)Robust”) Preached the Preached the New DealNew Deal for forgotten man (remained for forgotten man (remained

vague on details) vague on details) Speeches written by members of “Speeches written by members of “the Brain Trustthe Brain Trust” ”

(young college professors who later developed new (young college professors who later developed new deal programsdeal programs

Promised “Promised “bold experimentationbold experimentation”” Theme Song- “Happy Days Are Here Again” Theme Song- “Happy Days Are Here Again”

Hoover’s CampaignHoover’s Campaign Remained in the Whitehouse at first- working Remained in the Whitehouse at first- working

through lunch etc.through lunch etc. Supporters- “the Worst is Past” “It Might Have Been Supporters- “the Worst is Past” “It Might Have Been

Worse”Worse” Hoover took to the stump—faith in American Hoover took to the stump—faith in American

enterprise, individual initiative, urged support for enterprise, individual initiative, urged support for Hawley-Smoot Tariff Hawley-Smoot Tariff

FDR WinsFDR Wins

How did FDR win?How did FDR win? Dissatisfaction with Hoover- Change!!!Dissatisfaction with Hoover- Change!!!

The New Deal Coalition-The New Deal Coalition- black Americans (esp. in black Americans (esp. in Northern cities) abandoned the Republican Party Northern cities) abandoned the Republican Party & voted for FDR & voted for FDR

Black voters joined white working class, farmers Black voters joined white working class, farmers & others to elect FDR & others to elect FDR

Inauguration day- March 4,1933- speech attacked Inauguration day- March 4,1933- speech attacked “moneyed interests”- vowed war on depression, “moneyed interests”- vowed war on depression, “the only thing we have to fear is fear itself”“the only thing we have to fear is fear itself”

Hoover believed that the uncertainty & fear Hoover believed that the uncertainty & fear surrounding FDR’S victory made the depression surrounding FDR’S victory made the depression worse! worse!

FDR & THE 3 R’sFDR & THE 3 R’s New Deal Programs had 3 goals: New Deal Programs had 3 goals: Short-TermShort-Term (1 (1stst 2 years) 2 years) Relief- Relief- FDR favored direct relief to individualsFDR favored direct relief to individuals Recovery- Recovery- use deficit-spending on public works to use deficit-spending on public works to

revive economy (short range)-1revive economy (short range)-1stst 2 years 2 yearsLong TermLong Term ReformReform- (Long Term) – reform current & past - (Long Term) – reform current & past

abuses that had brought on the Depression. abuses that had brought on the Depression. * Restructure capitalism– not replace it* Restructure capitalism– not replace it

1.1. The Bank Holiday-The Bank Holiday- FDR closed the banks on his first FDR closed the banks on his first full day in office (March 6-10) full day in office (March 6-10)

Government examiners would inspect banks- Government examiners would inspect banks- banks reopen if financially soundbanks reopen if financially sound

when banks reopened- deposits outnumbered when banks reopened- deposits outnumbered withdrawals (Emergency Banking Relief Act 1933)withdrawals (Emergency Banking Relief Act 1933)

The New Deal- The 1The New Deal- The 1stst Hundred Days Hundred Days FDR called a joint session of Congress (majority FDR called a joint session of Congress (majority

Democrat) Democrat) 11stst Hundred Days- members passed a large Hundred Days- members passed a large

number of bills & programs (many old number of bills & programs (many old progressive ideas)progressive ideas)

Old Progressive ideasOld Progressive ideas: unemployment insurance, : unemployment insurance, old age insurance (SS), min. wage, restriction of old age insurance (SS), min. wage, restriction of child labor, conserve & develop natural resourceschild labor, conserve & develop natural resources

Congress gave some of its legislative power to Congress gave some of its legislative power to the President- later the SC will rule against New the President- later the SC will rule against New Deal programs based on thisDeal programs based on this

**AP Test writers- want you to know which **AP Test writers- want you to know which programs were not part of New Deal also.programs were not part of New Deal also.

Banking & Monetary Recovery & ReliefBanking & Monetary Recovery & Relief

Emergency Banking Relief ActEmergency Banking Relief Act (1933)- gave (1933)- gave president power to regulate bank transactions & president power to regulate bank transactions & foreign exchange & reopen solvent banks.foreign exchange & reopen solvent banks.

Glass-Steagall Banking Reform Act-Glass-Steagall Banking Reform Act- FDIC FDIC introduced (originally insured deposits up to introduced (originally insured deposits up to $5000)- virtually ends chronic bank failures.$5000)- virtually ends chronic bank failures.

1933- FDR took US off gold standard = 1933- FDR took US off gold standard = “managed currency”= inflation= relieve debtor’s “managed currency”= inflation= relieve debtor’s & stimulate new production. (US purchases gold & stimulate new production. (US purchases gold for $35 oz. 1934--- up from $21 in 1933)for $35 oz. 1934--- up from $21 in 1933)

Feb. 1934- FDR returned US to gold standard for Feb. 1934- FDR returned US to gold standard for international trade only= gold coins= collectors international trade only= gold coins= collectors items items

Job CreationJob Creation FDR uses “fireside chats” to encourage & FDR uses “fireside chats” to encourage &

inform the citizens.inform the citizens. FDR – urged “pump priming” – government $FDR – urged “pump priming” – government $

$ assistance to encourage industrial recovery.$ assistance to encourage industrial recovery.

1.1. Civilian Conservation CorpCivilian Conservation Corp (CCC)- young men (CCC)- young men hired by US to help with reforestation, hired by US to help with reforestation, firefighting, flood control, swamp drainage– firefighting, flood control, swamp drainage– sent money home.sent money home.

Helped conserve natural resources & human Helped conserve natural resources & human resources resources

2. 2. Federal Emergency Relief ActFederal Emergency Relief Act (FERA)- $3 (FERA)- $3 Billion to states for public works– put adults to Billion to states for public works– put adults to work! work!

CCCCCC

•Created in April 1933. •Within 4 months, 1300 CCC

camps were in operation. •300,000 men in 1933 between

ages 18 and 25 •Signed up for 6 months and

made $30.00 a month. •1933 and 1941 over 3,000,000

men served in the CCC . •GoalGoal: Keep teenage young men off the street and away

from the job market.•Develop job skills and improve

environment

Planted trees, built public parks, drained Planted trees, built public parks, drained swamps to fight malaria, restocked rivers swamps to fight malaria, restocked rivers with fish, worked on flood control projects with fish, worked on flood control projects and a range of other work that helped to and a range of other work that helped to

conserve the environment.conserve the environment.

Planted trees, built public parks, drained Planted trees, built public parks, drained swamps to fight malaria, restocked rivers swamps to fight malaria, restocked rivers with fish, worked on flood control projects with fish, worked on flood control projects and a range of other work that helped to and a range of other work that helped to

conserve the environment.conserve the environment.

Housing ReliefHousing Relief Agricultural Adjustment ActAgricultural Adjustment Act (AAA)- $ (AAA)- $

$MILLIONS to farmers to meet mortgages. $MILLIONS to farmers to meet mortgages. Home Owner’s Loan CorporationHome Owner’s Loan Corporation (HOLC)- (HOLC)-

Refinance mortgages on non-farm home Refinance mortgages on non-farm home loans (helped about 1 million).loans (helped about 1 million).

Job Creation-Job Creation-

1933 (late)- 1933 (late)- Civil Works AdministrationCivil Works Administration (CWA)- (CWA)- under auspices of FERA both HEADED BY under auspices of FERA both HEADED BY HARRYHARRY HOPKINSHOPKINS; provided jobs during ; provided jobs during winter of 1933 to 10’s of thousands (leaf winter of 1933 to 10’s of thousands (leaf raking)- highly criticized! raking)- highly criticized!

•1933- 11933- 1stst Hundred Days ($13 Hundred Days ($13 Billion Dollars)Billion Dollars)

•Develop a poor section of the Develop a poor section of the Southeast U.S.Southeast U.S.

•Stimulate the economy and Stimulate the economy and produce cheap electricity.produce cheap electricity.

•Control floods, planting new Control floods, planting new forests.forests.

• set up to test fairness of set up to test fairness of utility rates.utility rates.

TVATVA

94 percent94 percent of property owners and 98 percent of tenants of property owners and 98 percent of tenants did not have electricity. did not have electricity.

30 percent30 percent of property owners and 41 percent of tenants of property owners and 41 percent of tenants had no toilet facilities whatsoever had no toilet facilities whatsoever

65 percent65 percent of property owners of property owners and and 78 percent78 percent of tenants had of tenants had to travel at least 300 yards to to travel at least 300 yards to

get their household water. get their household water.

8 percent8 percent of property owners of property owners and and 3 percent3 percent of tenants owned of tenants owned

radios (usually battery radios (usually battery operated).operated).

39 percent39 percent of property owners of property owners and and 23 percent23 percent of tenants had of tenants had phonographs (including record phonographs (including record

players that were operated with players that were operated with a hand crank). a hand crank).

TVATVA

50 percent50 percent of property of property owners and owners and 25 percent25 percent of of tenants read newspapers.tenants read newspapers.

26 percent26 percent of property of property

owners and owners and 16 percent16 percent of of tenants owned automobiles.tenants owned automobiles.

7 percent7 percent of property owners of property owners

and and 4 percent4 percent of tenants of tenants owned trucks.owned trucks.

TVATVA

TVA MAPTVA MAP

TVA CRITICISMTVA CRITICISM

Critics of the New DealCritics of the New Deal Critics on the right & left found the New Deal Critics on the right & left found the New Deal

lackinglacking Unemployment was still high after the Unemployment was still high after the

programs passed in the 1programs passed in the 1stst 100 days 100 days1.1. Father Charles Coughlin-Father Charles Coughlin- Catholic priest Catholic priest

(Mich.) with a radio show (40 million fans); (Mich.) with a radio show (40 million fans); wanted “social justice”.wanted “social justice”.

2.2. Senator Huey P. LongSenator Huey P. Long (Louisiana)- “Share (Louisiana)- “Share Our Wealth” Program; “Make Every Man a Our Wealth” Program; “Make Every Man a King”– every family would get $5000 (by King”– every family would get $5000 (by taking money from rich)taking money from rich)

Threatened to challenge FDR for presidential Threatened to challenge FDR for presidential nomination in 1936– but was killed by an nomination in 1936– but was killed by an assassin. assassin.

Critics of the New DealCritics of the New Deal

3.3. Dr. Francis Townsend-Dr. Francis Townsend- retired doctor; supported by retired doctor; supported by senior citizens.senior citizens.

Called for old age help- $200 month to citizens 60 Called for old age help- $200 month to citizens 60 years old or older to be spent within a month= later years old or older to be spent within a month= later FDR & Congress will create Social Security based FDR & Congress will create Social Security based on the idea. on the idea.

1935-Works Progress Administration1935-Works Progress Administration (WPA)- (WPA)- employment for employment for usefuluseful projects (brought on by projects (brought on by criticism); headed by Harry Hopkins.criticism); headed by Harry Hopkins.

$ 11 Billion on 1000’s of public buildings, bridges, $ 11 Billion on 1000’s of public buildings, bridges, roads (9 million people employed over 8 years).roads (9 million people employed over 8 years).

Federal Number 1-Federal Number 1- part of WPA; employed actors, part of WPA; employed actors, writers, musicians– highly criticized program.writers, musicians– highly criticized program.

* Sent writers to collect oral histories– slave * Sent writers to collect oral histories– slave narratives!! Etc.narratives!! Etc.

•Works Progress Administration (WPA), the

New Deals main relief agency.

•People employed by the WPA at its peak was more

than 3 million

•2,500 hospitals

•5,900 schools

•13,000 playgrounds

•125,000 public buildings

wpawpa

Women & the New DealWomen & the New Deal Secretary of Labor- Secretary of Labor- Francis PerkinsFrancis Perkins; 1; 1stst

woman cabinet member in the US.woman cabinet member in the US. Mary McLeod Bethune-Mary McLeod Bethune- director of Office of director of Office of

Minority Affairs- highest ranking African-Minority Affairs- highest ranking African-American woman. American woman.

Margaret Meade- (1901-1978)Margaret Meade- (1901-1978) anthropologist; helped popularize cultural anthropologist; helped popularize cultural anthropology. anthropology.

•One of the most important features of the New DealNew Deal.

•1935- Established a retirement for persons over 65 funded by a tax on wages paid

equally by employee and employer.

•Old age insurance

•Protect Americans who were unable to support themselves.

•Unemployment compensation

•Compensation to disabled workers and assistance to

widows and children

Industry & Labor Industry & Labor

1.1. National Recovery AdministrationNational Recovery Administration (NRA)- (NRA)- part of the NIRA: combined immediate part of the NIRA: combined immediate relief with long range recovery; industries relief with long range recovery; industries work out “fair competition” set wages & work out “fair competition” set wages & hours worked.hours worked.

Unions granted right to organize, Unions granted right to organize, collective bargaining –through union reps!collective bargaining –through union reps!

Yellow dog contracts forbiddenYellow dog contracts forbidden Restrictions on child laborRestrictions on child labor ““blue eagle" program- blue eagle" program- 1935- NRA declared unconstitutional by 1935- NRA declared unconstitutional by

SC; *SC; *Schechter “sick chicken” caseSchechter “sick chicken” case. .

•Also called the National National Recovery ActRecovery Act.

•Helped businesses organize codes setting prices and

minimum wage.

•Put people back to work at decent jobs, wages and

working conditions.

•Businesses were not forced to join this.

Industry & LaborIndustry & Labor2. 2. Public Works AdministrationPublic Works Administration (PWA)- ALSO (PWA)- ALSO

PART OF THE NIRA: Industrial recovery & PART OF THE NIRA: Industrial recovery & unemployment relief.unemployment relief.

Headed by Harold IckesHeaded by Harold Ickes $4 Billion spent over 4 years= 34,000 $4 Billion spent over 4 years= 34,000

projects (public buildings, highways, projects (public buildings, highways, parkways)parkways)

Grand Coulee DamGrand Coulee Dam

Repeal of ProhibitionRepeal of Prohibition Gave federal government extra revenueGave federal government extra revenue 11stst 100 days- legalized wine & beer 100 days- legalized wine & beer 1933- officially repealed by 1933- officially repealed by 2121stst Amendment Amendment

(1933)(1933)

Paying Farmers not to farmPaying Farmers not to farm Farmers suffered from low prices & overproductionFarmers suffered from low prices & overproduction Mortgages foreclosed – corn burned as fuel, Mortgages foreclosed – corn burned as fuel,

destruction of crops to drive up pricesdestruction of crops to drive up prices1.1. Agricultural Adjustment Act (Agricultural Adjustment Act (AAA)AAA) used artificial used artificial

scarcity; est. “parity prices” (same real value as in scarcity; est. “parity prices” (same real value as in 1909-1914).1909-1914).

US gov’t paid farmers to reduce crop acreage US gov’t paid farmers to reduce crop acreage To pay for the program- Tax processors of farm To pay for the program- Tax processors of farm

products= consumers pay higher prices for consumers products= consumers pay higher prices for consumers (TAXING ONE GROUP & GIVING MONEY TO ANOTHER)(TAXING ONE GROUP & GIVING MONEY TO ANOTHER)

EffectEffect- raised farm incomes- raised farm incomes Criticized for waste– destruction of needed crops & Criticized for waste– destruction of needed crops &

animalsanimals SC declared it unconstitutional 1936- PART ABOUT SC declared it unconstitutional 1936- PART ABOUT

COLLECTING TAX FROM PROCESSORS TO PAY COLLECTING TAX FROM PROCESSORS TO PAY FARMERS.FARMERS.

Paying Farmers not to FarmPaying Farmers not to Farm2. 2. Soil Conservation & Domestic AllotmentSoil Conservation & Domestic Allotment Act Act

(1936)- caused farmers to withdraw acreage from (1936)- caused farmers to withdraw acreage from production & plant soil saving crops like soybeans.production & plant soil saving crops like soybeans.

3. 1938- 3. 1938- Second AAA-Second AAA- continued conservation continued conservation payments; acreage restrictions on specific crops= payments; acreage restrictions on specific crops= “parity payments” “parity payments”

* NO TAXATION OF PROCESSORS TO PAY FARMERS* NO TAXATION OF PROCESSORS TO PAY FARMERS Farmers got fairer prices & bigger share of national Farmers got fairer prices & bigger share of national

incomeincome

The Dust BowlThe Dust Bowl CausesCauses: over production in the 1920’s (over plowing, : over production in the 1920’s (over plowing,

dry farming techniques), drought of 1933.dry farming techniques), drought of 1933. Areas affected- eastern Colorado to western Areas affected- eastern Colorado to western

Missouri; Missouri; OklahomaOklahoma & & ArkansasArkansas most affected! most affected! In 5 years- 350,000 Okies & Arkies moved to In 5 years- 350,000 Okies & Arkies moved to

CaliforniaCalifornia John Steinbeck-John Steinbeck- The Grapes of Wrath-The Grapes of Wrath-1. Frazier-Lemke Farm

Bankruptcy Bill- suspension of foreclosures on farms for 3 years. (1935)

2. Resettlement Administration- remove near-farmless farmers to better land.

* CCC planted more than 200 million trees on prairies.

Reforming Bankers & BusinessReforming Bankers & Business1.1. Federal Securities ActFederal Securities Act “Truth in Securities Act” (1 “Truth in Securities Act” (1stst

100 days)- required promoters to swear to the 100 days)- required promoters to swear to the soundness of stocks & bonds.soundness of stocks & bonds.

2.2. 1934- 1934- Securities and Exchange CommissionSecurities and Exchange Commission (SEC)- (SEC)- A watchdog for the stock market. (still exists).A watchdog for the stock market. (still exists).

3.3. The Public Utility Holding Company ActThe Public Utility Holding Company Act (1935)- (1935)- “death sentence” for the utility holding company “death sentence” for the utility holding company unless deemed useful economically.unless deemed useful economically.

The New Deal & LaborThe New Deal & Labor After the Supreme Court axed the “blue eagle”- Congress After the Supreme Court axed the “blue eagle”- Congress

wanted to ensure protection of labor.wanted to ensure protection of labor.1.1. *The Wagner (National) Labor Relations Act*The Wagner (National) Labor Relations Act (1935)- asserted (1935)- asserted

the right to labor to organize & bargain collectively (with its the right to labor to organize & bargain collectively (with its own reps).own reps).

Unskilled workers began to organize= Unskilled workers began to organize= John L. LewisJohn L. Lewis (United (United Mine Workers)= formed Mine Workers)= formed Committee for IndustrialCommittee for Industrial OrganizationOrganization (CIO) WITHIN THE AFL. (AFL wanted to organize according to (CIO) WITHIN THE AFL. (AFL wanted to organize according to skill & trade)skill & trade)

1936- AFL – suspended CIO UNIONS associated with AFL1936- AFL – suspended CIO UNIONS associated with AFL Lewis & CIO- moved into the auto industry (used “sit-down” Lewis & CIO- moved into the auto industry (used “sit-down”

strike)= strike)= General Motors Sit Down StrikeGeneral Motors Sit Down Strike GM- GM- RECOGNIZED CIO AS SOLE BARGAINING AGENTRECOGNIZED CIO AS SOLE BARGAINING AGENT 2. 2. Fair Labor Standards ActFair Labor Standards Act (1938)- set up min. wage (40 (1938)- set up min. wage (40

cents/hour) & max. hours (40 hours per week); outlawed child cents/hour) & max. hours (40 hours per week); outlawed child labor (under 16 & 18 if dangerous)labor (under 16 & 18 if dangerous)

Excluded blacks, agricultural workers, women, Mexican-Excluded blacks, agricultural workers, women, Mexican-AmericansAmericans

Labor organization boomed= supported FDR & DEMS Labor organization boomed= supported FDR & DEMS 1938- CIO broke with AFL COMPLETELY= 1940= 4 MILLION 1938- CIO broke with AFL COMPLETELY= 1940= 4 MILLION

STRONG (INCLUDING 200,000 BLACKS) STRONG (INCLUDING 200,000 BLACKS) CIO- FAVORED ORAGNIZATION OF ALL WORKLERS IN CIO- FAVORED ORAGNIZATION OF ALL WORKLERS IN

A PARTICULAR INDUSTRY. A PARTICULAR INDUSTRY.

Criticisms of the New DealCriticisms of the New Deal Waste, incompetence, confusion, cross-purposes, graftWaste, incompetence, confusion, cross-purposes, graft Employment of Communists, leftist professors Employment of Communists, leftist professors FDR accused of being too cozy with Jewish interests FDR accused of being too cozy with Jewish interests

(“RosenField”) (“The Jew Deal”)(“RosenField”) (“The Jew Deal”) Growth of the national government- Federal Growth of the national government- Federal

government became the single largest businessgovernment became the single largest business Growth of the national debt- to $ 40,440, 000,000 by Growth of the national debt- to $ 40,440, 000,000 by

1939.1939. Class warfare- “Why soak the successful?” Class warfare- “Why soak the successful?” FDR’s court packing scheme & purging of Congress FDR’s court packing scheme & purging of Congress

(“one man super government”) (“one man super government”)

1936 Election1936 Election Democrats re-nominated FDR on New Deal Programs Democrats re-nominated FDR on New Deal Programs Republicans nominated Alfred M. Landon (MODERATE); Republicans nominated Alfred M. Landon (MODERATE);

Platform condemned New Deal deficit & wastePlatform condemned New Deal deficit & waste Key Republican backers- Hoover & the Key Republican backers- Hoover & the Liberty LeagueLiberty League

(wealthy conservatives bound to fight against New Deal (wealthy conservatives bound to fight against New Deal Socialism)Socialism)

Landon carried only Vermont & MaineLandon carried only Vermont & Maine Democrats retained majorities in Congress (2/3 in Democrats retained majorities in Congress (2/3 in

House & Senate)House & Senate) Class warfare– needy economic groups vs. greedy Class warfare– needy economic groups vs. greedy

economic groupseconomic groups FDR –strong coalition: blacks, South, urbanites & poor FDR –strong coalition: blacks, South, urbanites & poor

(New Immigrants- Catholics & Jews)(New Immigrants- Catholics & Jews) FDR appointed Catholics' to one of every four federal FDR appointed Catholics' to one of every four federal

judgeships judgeships

**FDR’s Court Packing Scheme**FDR’s Court Packing Scheme 7 of 9 cases involving New Deal programs declared 7 of 9 cases involving New Deal programs declared

unconstitutional by 1937.unconstitutional by 1937. Court was ultra-conservative (6 of 9 SC members= over Court was ultra-conservative (6 of 9 SC members= over

70 years old)70 years old) FDR asked Congress for a bill- permit him to add a new FDR asked Congress for a bill- permit him to add a new

justice to the SC for every member over 70 who would justice to the SC for every member over 70 who would not retire (max. membership=15).not retire (max. membership=15).

Congress (both houses & parties) condemned the Congress (both houses & parties) condemned the proposal= “dictator bill”= attempting to thwart checks & proposal= “dictator bill”= attempting to thwart checks & balances.balances.

Justice Owen Roberts- (conservative) began voting with Justice Owen Roberts- (conservative) began voting with liberalsliberals

SC –upheld other New Deal proposals: SS, Wagner etc.SC –upheld other New Deal proposals: SS, Wagner etc. Congress voted full pay to Justices over 70 who retired= Congress voted full pay to Justices over 70 who retired=

one justice replaced by Hugo Black (New Dealer)one justice replaced by Hugo Black (New Dealer) Court Packing- major political mistake by FDR= Court Packing- major political mistake by FDR=

ARROUSED CONSERVATIVES OF BOTH PARTIES. ARROUSED CONSERVATIVES OF BOTH PARTIES.

The Roosevelt RecessionThe Roosevelt Recession 1933-1937 (FDR’s 11933-1937 (FDR’s 1stst Term)- did not end the Term)- did not end the

Depression.Depression. 1936- unemployment = 15% (down from 25% in 1936- unemployment = 15% (down from 25% in

1933)1933) Recovery= modestRecovery= modest 1937- economy took a downward turn.1937- economy took a downward turn.

CausesCauses:: Social Security taxes- had begun to take money Social Security taxes- had begun to take money

from payroll checks= less money to spend.from payroll checks= less money to spend. FDR administration cut back on spending (job FDR administration cut back on spending (job

creation).creation). April 1937- FDR adopted theories of John Maynard April 1937- FDR adopted theories of John Maynard

Keynes (Keynesianism) = US policy for decades. Keynes (Keynesianism) = US policy for decades.

The New Deal Comes to a Close The New Deal Comes to a Close 1937 FDR urged Congress (more conservative now)- to 1937 FDR urged Congress (more conservative now)- to

reorganize national administration= efficiency= failed.reorganize national administration= efficiency= failed.

1.1. 1939- 1939- The Reorganization Act-The Reorganization Act- gave FDR limited gave FDR limited powers to reform the national administration= powers to reform the national administration= Executive Office of White House created.Executive Office of White House created.

* New Dealers accused of having huge war chest- relief * New Dealers accused of having huge war chest- relief checks often came about election time??checks often came about election time??

2. Hatch Act2. Hatch Act (1939)- act barred federal administrative (1939)- act barred federal administrative officials from campaigning except highest policy officials from campaigning except highest policy makers; forbade use of government finds for makers; forbade use of government finds for campaigning.campaigning.

Forbade collection of campaign funds from people Forbade collection of campaign funds from people getting relief checks.getting relief checks.

By 1938- the NEW DEAL HAD LOST MOMENTUMBy 1938- the NEW DEAL HAD LOST MOMENTUM 1938- Republicans (11938- Republicans (1stst time) made gains in time) made gains in

Congressional elections Congressional elections

Impact of the New DealImpact of the New Deal A program of Reform-not revolution (restructure capitalism-not A program of Reform-not revolution (restructure capitalism-not

replace it)replace it) New Deal had partially reduced unemployment & reviving the New Deal had partially reduced unemployment & reviving the

economyeconomy Democratic Party= a major partyDemocratic Party= a major party Helped African-Americans & others survive DepressionHelped African-Americans & others survive Depression US did not fully emerge from Depression until massive military US did not fully emerge from Depression until massive military

expenditures of WWII.expenditures of WWII.

Failures of the New Deal:Failures of the New Deal: Did not directly confront racial prejudiceDid not directly confront racial prejudice Did not integrate armed forcesDid not integrate armed forces Did not contain programs to protect civil rightsDid not contain programs to protect civil rights Did not establish Bureau of Indian AffairsDid not establish Bureau of Indian Affairs Did not nationalize basic industriesDid not nationalize basic industries Did not recognize unionization of migrant workers Did not recognize unionization of migrant workers

•When Bing recorded this song in October, 1932, one out of every four Americans who

wanted work could not find work.

•The banking system was near collapse.

•Record sales had plummeted because Americans did not have the money for such

luxuries.

•No song captures the dark spirit of the Great Depression more than "Brother, Can You

Spare a Dime?"

•Bing recorded the song shortly before President Roosevelt's

election and it went to No. 1 in the charts.

Bing Crosby

They used to tell me I was building a dream, and so I followed the mob,

When there was earth to plow, or guns to bear, I was always there right on the job.

They used to tell me I was building a dream, with peace and glory ahead,

Why should I be standing in line, just waiting for bread?

Once I built a railroad, I made it run, made it race against time.

Once I built a railroad; now it's done. Brother, can you spare a dime?

Once I built a tower, to the sun, brick, mortar and lime;

Once I built a tower, now it's done. Brother, can you spare a dime?

Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum,

Half a million boots went marching through Hell,

And I was the kid with the drum!Say, don't you remember, they called me Al;

it was Al all the time. Hey don't you remember, I'm your pal?

Buddy, can you spare a dime?

Once I built a railroad, I made it run, made it race against time.

Once I built a railroad; now it's done. Brother, can you spare a dime?

Once I built a tower, to the sun, brick, mortar, and lime;

Once I built a tower, now it's done. Brother, can you spare a dime?

Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum,

Half a million boots went marching through Hell, And I was the kid with the drum!

Say, don't you remember, they called me Al; it was Al all the time.

Say, don't you remember, I'm your pal? Brother, can you spare a dime?