The New Deal

Main IdeaIn 1933 Franklin Delano

Roosevelt became president of a suffering Nation. He quickly sought to address the country's needs, with mixed results.

Focus QuestionsWhat were the key events of the

presidential election in 1932?What was the nature of Franklin

and Eleanor Roosevelt's political partnership?

What initial actions did Roosevelt take to stabilize the economy?

How did the New Deal run into trouble in Roosevelt’s first term?

The Election of 1932Joblessness was on the rise and banks

were collapsing in record numbers.Many Americans placed the blame on

President Hoover for conditions and looked to remove him.

Franklin Delano Roosevelt (FDR) was selected as the Democratic candidate for President.

FDR’s as New York’s governor launched groundbreaking reforms which contrasted from Hoover’s insistence on limited government interaction.

The 1932 CampaignFDR promised relief for the poor and

public works programs to provide jobs. The main effort relied on attacking

President's Hoover response to the Great Depression, or lack of action.

He also criticized Hoover for spending too much money, and promised to spend less.

Most of FDR’s speeches were vague; not tying him down to promises or policies

VictoryRoosevelt received more than

57% of the popular vote, and got all Electoral votes except for 6 states.

Also Democrats gain control of both the House and Senate.

FDR’s InaugurationThe purpose of the speech was to

declare war on the Great Depression.

Hence the line: “We have nothing to fear, but fear itself.”

FDR assured that country will survive and prosper through the crisis.

Fireside ChatsFireside chats were a series of

radio broadcasts where the nation was addressed by FDR over the radio.

The chats spanned a variety of topics, usually some relevant issue to the Nation, and to gain support for resolutions.

The effect of these chats was calming to the nation.

The Hundred DaysPresident Roosevelt called congress into

an emergency session to deal with situations facing the country.

The first situation was to handle the banking crisis.

The Emergency Banking Act passed allowing the government to examine, correct problems, and close banks as needed.

Within days banks reopened and people returned money ending the crisis.

The Hundred DaysThe bank crisis resolution was the start

of what known as the Hundred Days.Additional banking reforms were passed

under the Glass-Steagull Act, creating the Federal Deposit Insurance Corporation (FDIC)

People no longer needed to fear losing their money if banks closed.

In the time of 99 days with congress, FDR pushed congress to implement parts of his program, the New Deal.

The New DealThe New Deal aimed to fulfill

three goals:1. Relief2. Recovery3. Reforms

The combination of these efforts would attempt to end suffering, fix the economy, and prevent future economic problem.

Trouble for the New DealSeveral leaders emerged to criticize

the New Deal.Huey Long felt that policies

towards banks were too kindLong setup the Share our Wealth

Society which proposed heavy taxes on the wealthy.

Charles Coughlin was critical of banks and financial leaders and preached to the nation regarding it.

Francis Townsend said the new deal for not doing enough to help the elderly.

He proposed a plan to provide pensions for people over the age of 60

CCC – Civilian Conservation CorpsSought to address unemployment in

people age 18-25.They worked on conservation projects

restoring forests, beaches, and parks.Workers earned only $1 a day but

received free board and job training. From 1934 to 1937, this program funded similar programs for 8,500

Relief- CCC taught the men and women of America how to live independently

AAA- Agricultural Adjustment ActGave farmers a subsidy, or

government payment to grow fewer crops.

Fewer crops would increase demand for those crops.

Tried to raise farm prices. It used proceeds from a new tax to pay farmers not to raise specific crops and animals.

Recovery

SEC- Securities and Exchange Commission This commission would serve as

the government watchdog over the nation’s stock market.

The SEC regulated the stock market. Congress also gave the Federal Reserve Board the power to regulate the purchase of stock

Reform

WPA- Works Progress Administration This agency provided work for 8

million Americans. The WPA constructed or repaired

schools, hospitals, airfields, roads, and more.

Unemployed writers, musicians, artists, actors, and photographers temporarily went on the federal payroll,

Relief

FERA- Federal Emergency Relief Administration This agency sent funds to

depleting local relief agencies. Within two hours, $5 million were given out.

It was believed that men should be put to work and not be given charity.

The program also funded public work programs

Relief- Revitalized many deteriorating relief programs.

NIRA – National Industrial Recovery ActMandated that businesses in the

same industry work together to set prices and production levels.

Normally this would have been viewed as a violation of the Sherman Antitrust Act.

Recovery

PWA- Public Works AdministrationManaged the 3.3 billion dollars

given to NIRA for public works programs.

Relief/Recovery- Was responsible for putting people back to work in construction projects.

TVA- Tennessee Valley AuthorityThis program was charged with

developing the natural resources of the Tennessee River Valley.

It built dams to control floods and aid navigation along the river.

It would also provide hydroelectric power to be used by industries.

Reform

Beyond the Hundred DaysIt was determined that FDR had

delivered on the promise to act for the country.

It was admitted though that some of the acts passed were failures.

Acts were continued to be passed after this time.

CWA- Civil Works Administration

This public work program gave the unemployed jobs building or repairing roads, parks, airports.

It provided employment to over 4 million workers.

paid an average of $15 a week--many in useful construction jobs such as repairing schools, laying sewer pipes, building roads.  Some CWA jobs, however, were criticized as useless (e.g., leaf raking)

Relief

Indian Reorganization ActReversing previous policies, it

recognized the tribe as key unit for tribe organization.

Limited the sale of Indian lands and provided assistance in developing resource, economy, and culture.

Limited rights of self rule was granted.

Reform

Eleanor RooseveltShe served as the eyes and

ears of FDR.Eleanor also put her efforts in

social issues, for example to stop lynching's of African Americans.

She served as a delegate to the United Nations.

Problems of the New Deal1935 court cases were reaching

the courts considering the New Deal.

Schechter Poultry Corporation v United States found NIRA unconstitutional.

United States v Butler found that the AAA tax for subsidies unconstitutional .

2nd New Deal With courts dismantling major

parts of the New Deal, the economy stubbornly refused to get better.

Roosevelt passed the Second New Deal to provide new relief.

Social Security would be the centerpiece of this Deal.

Social Security 1935Provided guaranteed regular

payments for people 65 and older.

Also included a program for people who were unemployed and looking for jobs.

This was to counteract Townsend’s proposition.

To avoid taxing people, hampering recovery, people were excluded.

Reform

1936 ElectionsCritics still existed: American

Liberty League were unhappy that FDR was against Big Business.

Republican’s felt the New Deal was bureaucratic and creating a planned economy.

Despite this democrats still had a landslide victory.

Court Packing- 1937Frustrated that the courts had

struck down parts of the New Deal, FDR tried to reorganize the supreme court

Judiciary Reorganization Bill or the Court Packing Bill would be expanding the supreme court by 6 justices.

The plan was struck down in end making the attempt look clumsy.

New Deal in doubtAt the end of 1937 the country

suffered another setback, a drop in the stock market.

FDR looked to use large sums of money to help the people again.

John Maynard Keynes, a British economist, supported the plan .

The economy did rebound in 1938 because of FDR’s spending.

Impact of the New DealThe relief programs were successful

putting millions into the hands of the people.

The recovery efforts were wiped out by the downturn of 1937-1938.

The reforms were long lasting, like the FDIC, Securities and Exchange Commission, and WPA.

It also change the role of government into a bigger one, where people would look to for help.

End of the New DealLate 1937, anti-New Deal

Senators challenged FDR to:◦Cut Taxes◦Balance the budget◦Return power to states

This group was strong enough to challenge and stop most legislature.

1938 ElectionsFDR face opposition in congress

even from his own party.FDR hand picked candidates to

compete against incumbent senators.

The president also went to the southern states to influence the votes.

In each case the candidate lost, and FDR lost the needed support to pass more New Deal Programs.

Review

1. What did FDR do during 1932 to get elected? What did he criticize?

2. What were the fireside chats and what effect did they have?

3. What were the three parts of the new deal? Give an example of a program for each part.

4. What did Eleanor Roosevelt do?

5. What court cases declared parts of the New Deal Unconstitutional? Why was the AAA Unconstitutional?

6. What was the key part to the 2nd New Deal? What did this program do and why is it important.

7. What is court packing? Did it work or hurt FDR?

8. What were some of the impacts of the New Deal?