The US Between Wars

FDR and the New Deal

The Supreme Courtand the New Deal

National Recovery Act (May, 1935) Ruled industry codes were illegal exercise of legislative

power by president Ruled government regulating local business not engaged

in interstate commerce violated law

Agricultural Adjustment Act (Jan. 1936) Unconstitutional exercise of congressional power over

local economic activities

Minimum wage (June 1936) New York had tried to set minimum wage for women &

children Court ruled it a breach of “right to contract”

I’m sorry, but the court says I must chuck you back in.

The First New Deal

March 1933 – June 1936

Transformed the role of government Constructed numerous public facilities Provided relief for millions of citizens Did not end the depression Did not win judicial approval

Worker’s Demands

Better wages End to employer’s arbitrary power Basic civil liberties for workers

Right to picket Right to distribute literature Right to meet to discuss grievances

All these things required union recognition

United Auto Workers“Sit-In” Strike

C.I.O.’s Call for Federal Action

Economic and social security

Public housing

Universal health care

Old age insurance

Voices of Protest

Huey P. Long

RCC Priest

Charles

Coughlin

Share Our Wealth

1934

“Every Man a King”

“Kingfish

Called for Redistribution of Wealth Confiscation of most of the wealth of the richest

Americans Immediate $5,000 grant to all citizens Guaranteed job and annual income ($2,500) for

all workers

“Kingfish”

The New Deals

First New Deal: 1933 – 1935 Focused on short term ECONOMIC RECOVERY Designed to provide immediate recuperative

programs for all groups

Second New Deal: 1935 – 1938 Focused on ECONOMIC SECURITY Designed to provide a more radical redistribution of

power away from big business and toward coal workers, farmers, and consumers.

The Social Security Act

Transformed relationship between government and citizens Before 1930s, discussion was

should government intervene in the economy

After New Deal, question was how government should intervene

Government assumed a responsibility for guaranteeing Americans a living wage and protecting them against economic and personal misfortune

Presidential Election of 1936

“A Reckoning with Liberty”

Two opposing concepts of liberty became central issue

FDR’s (and the Democrats) definition tied liberty to maintaining an acceptable standard of living

His opponents (Republicans) tied it to freedom from powerful government

The New Deal Coalition

Organized labor Southern whites Northern blacks Protestant farmers Urban Jews & Catholics Industrial workers Middle class home owners Republican progressives

The “Court-Packing” Fight

FDR feared that the Supreme Court might invalidate social security, Wagner Act & other measures of the Second New Deal

In a ploy to change the balance of the court, FDR proposed that the number of justices be increased from 9 to 15

Amid cries that he was trying to become a dictator, Congress rejected the idea

Accomplished his purpose anyway

The Court-Packing Fight

Court Packing:Prelude to Tyranny?

The Court-Packing Fight

The political cost: Revealed fissures in his governing coalition Angered congressional leaders Misjudged popular sentiment for sanctity of the court Effectively ended his mastery of Congress and Dem.

Party Served as a lightening rod for his opponents New coalition blocked nearly every presidential

reform initiative between 1937 and mid-1960s

Assessing the New Deal

Part 1

Greatly expanded the role of Government in the American economy

Made government an independent force in management/labor relations

Required employers to negotiate w/ unions Told farmers what they could and could not plant Insured bank deposits Regulated the stock market

Assessing the New Deal

Part 2 Loaned money to home owners Provided payments to unemployed and elderly Transformed the physical environment Restored faith in Democracy Redrew the map of American politics Did not generate prosperity