Chapter 34 NotesChapter 34 Notes

AP US HistoryAP US History

Mrs. MarshallMrs. Marshall

Franklin Delano Roosevelt (Democrat)Franklin Delano Roosevelt (Democrat)

Elected to the presidency in 1932,1936, Elected to the presidency in 1932,1936, 1940 and 19441940 and 1944

In 1932 election Democrats also gained In 1932 election Democrats also gained control of Congress.control of Congress.

Twentieth AmendmentTwentieth Amendment

““Lame Duck” Amendment-1933-changed Lame Duck” Amendment-1933-changed the date of presidential inauguration the date of presidential inauguration from March to noon of January 20th.from March to noon of January 20th.

3 goals of the New Deal (3 R’s)3 goals of the New Deal (3 R’s)

Roosevelt’s policiesRoosevelt’s policies

Relief-laws necessary to meet the Relief-laws necessary to meet the needs of people without food, shelter needs of people without food, shelter and basic necessitiesand basic necessities

Recovery- to help businesses and Recovery- to help businesses and agriculture start up againagriculture start up again

Reform- to solve economic problems Reform- to solve economic problems and prevent future depressionsand prevent future depressions

Brain TrustBrain Trust

a group of unofficial a group of unofficial

advisors to FDR, they helped him advisors to FDR, they helped him

formulate policies which became known formulate policies which became known

as the New Deal.as the New Deal.

Hundred Days Hundred Days name given to the 73rd name given to the 73rd Congress which passed the bulk of Congress which passed the bulk of New Deal legislation in just over 3 New Deal legislation in just over 3 monthsmonths

Emergency Banking ActEmergency Banking Act-closed all -closed all

insolvent lending institutions and insolvent lending institutions and

allowed Treasury Department to only allowed Treasury Department to only

reopen solvent Banks.reopen solvent Banks.

Glass-Steagall Banking Reform Act ofGlass-Steagall Banking Reform Act of

19331933

Provided for FDIC-Federal Deposit Provided for FDIC-Federal Deposit

Insurance Corporation which insures Insurance Corporation which insures

individual deposits in accountsindividual deposits in accounts

““fireside chats” were FDR’s radio fireside chats” were FDR’s radio

addresses to the American people. He addresses to the American people. He

gave 30 of these.gave 30 of these.

CCC-Civilian Conservation CorpsCCC-Civilian Conservation Corps

Employed single males between ages of Employed single males between ages of

18 and 25. Paid $30 a month with $22 18 and 25. Paid $30 a month with $22

being sent home. Based with armed being sent home. Based with armed

forces, they lived in camps where they forces, they lived in camps where they

planted trees, prevented erosion, built planted trees, prevented erosion, built

public parks, and other things to public parks, and other things to

conserve the environment.conserve the environment.

Federal Emergency Relief Act (FERA)Federal Emergency Relief Act (FERA)

Headed by Harry HopkinsHeaded by Harry Hopkins

Authorized $3 billion in immediate grantsAuthorized $3 billion in immediate grants

to states for relief projectsto states for relief projects

Agricultural Adjustment Act Agricultural Adjustment Act (AAA)(AAA)

Raised food prices by lowering Raised food prices by lowering production. Placed a tax on canners, production. Placed a tax on canners, millers and other food processors and millers and other food processors and used the income to pay farmers to used the income to pay farmers to produce less.produce less.

Land was removed from production.Land was removed from production.

By 1936, farmer’s income was about By 1936, farmer’s income was about 50% higher.50% higher.

Home Owner’s Loan Corporation Home Owner’s Loan Corporation (HOLC)(HOLC)

Allowed homeowners to exchange their Allowed homeowners to exchange their mortgages for bonds with better terms mortgages for bonds with better terms to keep then from being foreclosed on.to keep then from being foreclosed on.

NRA-National Industrial NRA-National Industrial Recovery ActRecovery Act

Goal was to stimulate competition and Goal was to stimulate competition and reduce unemployment. Business that reduce unemployment. Business that cooperated received the “blue-eagle” cooperated received the “blue-eagle” seal of approval and displayed the seal of approval and displayed the motto “we do our part”motto “we do our part”

Public Works Administration Public Works Administration (WPA)(WPA)

supervised the construction of roads,supervised the construction of roads,

public buildings and other projects while public buildings and other projects while

providing employment. Headed by Harold providing employment. Headed by Harold

Ickes, Secretary of InteriorIckes, Secretary of Interior

Civil Works Administration Civil Works Administration (CWA)(CWA)

Emergency relief program designed to Emergency relief program designed to

put 4 million jobless to work on federal, put 4 million jobless to work on federal,

state and local projects.state and local projects.

Headed by Harry Hopkins.Headed by Harry Hopkins.

Critics of FDR:Critics of FDR:

Father Charles Coughlin- Catholic Father Charles Coughlin- Catholic priest. Once a supporter of FDR but priest. Once a supporter of FDR but later turned against him and became later turned against him and became one of his harshest critics.one of his harshest critics.Dr. Francis Townshend- retired Dr. Francis Townshend- retired physician who developed a plan in physician who developed a plan in which government would impose a 2% which government would impose a 2% sales tax to provide seniors a monthly sales tax to provide seniors a monthly income of $200income of $200

Huey (Kingfish) Long- governor and Huey (Kingfish) Long- governor and later senator of Louisiana. Program later senator of Louisiana. Program was called “Share Our Wealth”-called was called “Share Our Wealth”-called upon federal government to guarantee upon federal government to guarantee every family in the nation and annual every family in the nation and annual income an everyone over 60 would income an everyone over 60 would receive an old-age pensionreceive an old-age pension

Two phases of New Deal:Two phases of New Deal:

First New Deal concentrated on relief First New Deal concentrated on relief and recovery programs. and recovery programs.

Second New Deal concentrated on Second New Deal concentrated on reform.reform.

Works Progress Administration Works Progress Administration (WPA)(WPA)

Created by congress in 1935 ,headed Created by congress in 1935 ,headed by Harry Hopkins. Was started to fund by Harry Hopkins. Was started to fund projects and create jobs. People were projects and create jobs. People were paid to build buildings, roads, dams, paid to build buildings, roads, dams, bridges, paint murals on buildings, bridges, paint murals on buildings, entertain and write.entertain and write.

Became most widely criticized of the Became most widely criticized of the New Deal agenciesNew Deal agencies

Mary McLeod Bethune Mary McLeod Bethune

became the highest ranking African became the highest ranking African American female in FDR’s administration. American female in FDR’s administration. Appointed director of the Office of Appointed director of the Office of Minority Affairs in the National Youth Minority Affairs in the National Youth Administration( a program designed to Administration( a program designed to help youth with urban programs) Also, help youth with urban programs) Also, helped organize the “Black Cabinet”-a group of helped organize the “Black Cabinet”-a group of influential African Americans’ that advised FDR influential African Americans’ that advised FDR on racial issues.on racial issues.

Dust BowlDust Bowl

of the 1930’s lasted about a decade.of the 1930’s lasted about a decade.

Affected the region of the Great Plains.Affected the region of the Great Plains.

Factors contributing to the Dust Bowl:Factors contributing to the Dust Bowl:

DroughtDrought

Dry-farming techniquesDry-farming techniques

WindWind

Soil erosionSoil erosion

Many people packed up and left the Great Many people packed up and left the Great

Plains. Most migrants headed to Plains. Most migrants headed to

California.California.

John Steinbeck’s John Steinbeck’s The Grapes of WrathThe Grapes of Wrath

showed the suffering caused by the Dust showed the suffering caused by the Dust

Bowl.Bowl.

Resettlement ActResettlement Act

1935 –moved farmers who were victims 1935 –moved farmers who were victims

of the Dust Bowl to better land.of the Dust Bowl to better land.

Indian Reorganization Act Indian Reorganization Act of 1934of 1934

Attempted to reverse the forced Attempted to reverse the forced assimilation of Native Americans into assimilation of Native Americans into white society.white society.

John Collier- appointed by FDR as John Collier- appointed by FDR as Commissioner of Indian AffairsCommissioner of Indian Affairs

Federal Securities ActFederal Securities Act

provided for creation of the Securities provided for creation of the Securities

and Exchange Commission (SEC) which and Exchange Commission (SEC) which

regulates the stock exchange. Joseph regulates the stock exchange. Joseph

Kennedy was the first to head the Kennedy was the first to head the

commissioncommission

Tennessee Valley Authority (TVA)Tennessee Valley Authority (TVA)

proved to be the most socialistic of the proved to be the most socialistic of the

New Deal agencies. Public corporation New Deal agencies. Public corporation

was established to construct dams and was established to construct dams and

power plants along Tennessee Riverpower plants along Tennessee River

Social Security Act (1935)Social Security Act (1935)

Purpose was to provide insurance through a Purpose was to provide insurance through a

tax levied on employers and a retirement tax levied on employers and a retirement

system based on contributions from both system based on contributions from both

employers and employees.employers and employees.

Provides:Provides:Unemployment insuranceUnemployment insuranceOld-age pensionsOld-age pensionsEconomic provisions for the Economic provisions for the blind/disabledblind/disabledSupport for physically handicappedSupport for physically handicappedDelinquent children /other dependantsDelinquent children /other dependants

FDR viewed this as his “supremeFDR viewed this as his “supremeachievement”achievement”

Wagner Act (National Labor Relations Wagner Act (National Labor Relations

Act)Act) 1935 1935

Gave labor the right to bargain Gave labor the right to bargain

collectively. Most beneficial to unskilled collectively. Most beneficial to unskilled

workersworkers

Fair Labor Standards Act-Fair Labor Standards Act-1938-set 1938-set

maximum hours at 44 hours per week maximum hours at 44 hours per week

and set minimum wage at 25 cents per and set minimum wage at 25 cents per

hour. Set rules for employment of hour. Set rules for employment of

workers under 16 and banned hazardous workers under 16 and banned hazardous

work for those under 18.work for those under 18.

Francis PerkinsFrancis Perkins- Secretary of Labor for - Secretary of Labor for

FDRFDR

1st female to hold a cabinet post.1st female to hold a cabinet post.

1955 AFL and CIO merged1955 AFL and CIO merged

American Federation of Labor and American Federation of Labor and

Congress of Industrial OrganizationCongress of Industrial Organization

1936 election:1936 election:

FDR defeats Alfred LandonFDR defeats Alfred Landon

New Deal CoalitionNew Deal Coalition-a group of voters -a group of voters

made up of southern whites, urban made up of southern whites, urban

voters, African American’s and union voters, African American’s and union

workers who supported FDRworkers who supported FDR

Roosevelt and the “Court-packing” Roosevelt and the “Court-packing” scheme:scheme:

Called for all federal judges to retire by Called for all federal judges to retire by 70. If they failed to do so, the president 70. If they failed to do so, the president could appoint another judge to serve in could appoint another judge to serve in tandem with each one over 70. This tandem with each one over 70. This would allow FDR to appoint 6 more would allow FDR to appoint 6 more justices. (Increasing size to 15)justices. (Increasing size to 15)

By 1937 economy had improved. By 1937 economy had improved.

Politicians urged FDR to cut back on New Politicians urged FDR to cut back on New

Deal programs. Economy slid back Deal programs. Economy slid back

slightly but he did not begin a third slightly but he did not begin a third phase phase

of the New Deal.of the New Deal.

Reasons why FDR did not launch a thirdReasons why FDR did not launch a third

phase:phase:

He did not want any more deficit He did not want any more deficit spendingspending

He was concerned over events in He was concerned over events in EuropeEurope

Opinions on New DealOpinions on New Deal

Conservative CriticsConservative Critics- said it made the - said it made the government too big and powerful. That government too big and powerful. That it got in the way of free enterprise, that it got in the way of free enterprise, that it made people not want to work, that it made people not want to work, that the government should not be involved the government should not be involved in the economy.in the economy.

Liberal Critics- Liberal Critics- said the New Deal did notsaid the New Deal did not

do enough. Should have done more to do enough. Should have done more to

end the differences between the rich and end the differences between the rich and

the poor.the poor.

Supporters of the New DealSupporters of the New Deal

said it was well balanced between savingsaid it was well balanced between savingcapitalism and reforming capitalism.capitalism and reforming capitalism. Pointed out lasting benefits:Pointed out lasting benefits:

It expanded the power of the federal It expanded the power of the federal governmentgovernmentGave the government a greater role in Gave the government a greater role in shaping the economyshaping the economyRelieved the suffering of millions of Relieved the suffering of millions of AmericansAmericans

The New Deal caused the federal The New Deal caused the federal government to go into debt—federal government to go into debt—federal deficit rose.deficit rose.

New Deal did not end the depression---New Deal did not end the depression---WWII ended the depression and caused WWII ended the depression and caused federal deficit to decrease.federal deficit to decrease.