The New Deal

1. The New Deal

2. Main Idea • In 1933 Franklin Delano Roosevelt became president of a suffering Nation. He quickly sought to address the country's needs, with mixed results.

3. Focus Questions • What 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?

4. The Election of 1932 • Joblessness 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.

5. The 1932 Campaign • FDR 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

6. Victory • Roosevelt 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.

8. FDR’s Inauguration • The 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.

9. Fireside Chats • Fireside 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.

10. The Hundred Days • President 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.

11. The Hundred Days • The 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.

12. The New Deal • The New Deal aimed to fulfill three goals: • Relief • Recovery • Reforms • The combination of these efforts would attempt to end suffering, fix the economy, and prevent future economic problem.

13. Trouble for the New Deal • Several leaders emerged to criticize the New Deal. • Huey Long felt that policies towards banks were too kind • Long 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.

14. 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

15. CCC – Civilian Conservation Corps • Sought 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

16. AAA- Agricultural Adjustment Act • Gave 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

17. 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

18. 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

19. 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.

20. NIRA – National Industrial Recovery Act • Mandatedthat 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

21. PWA- Public Works Administration • Managed 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.

22. TVA- Tennessee Valley Authority • This 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

23. Beyond the Hundred Days • It 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.

24. 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

25. Indian Reorganization Act • Reversing 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

26. Eleanor Roosevelt • She 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.

27. Problems of the New Deal • 1935 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 AAAtax for subsidies unconstitutional .

28. 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.

29. Social Security 1935 • Provided 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

30. 1936 Elections • Critics 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.

31. Court Packing- 1937 • Frustrated that the courts had struck down parts of the New Deal, FDR tried to reorganize the supreme court • Judiciary Reorganization Bill or the CourtPacking Billwould be expanding the supreme court by 6 justices. • The plan was struck down in end making the attempt look clumsy.

32. New Deal in doubt • At 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.

33. Impact of the New Deal • The 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.

34. End of the New Deal • Late 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.

35. 1938 Elections • FDR 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.

36. Review • What did FDR do during 1932 to get elected? What did he criticize? • What were the fireside chats and what effect did they have? • What were the three parts of the new deal? Give an example of a program for each part. • What did Eleanor Roosevelt do?

37. 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?