FDR and the New Deal
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Transcript of 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