Franklin D. Roosevelt and the New Deal

1. Franklin D. Roosevelt and the New Deal

2. Agricultural overproduction – Midwest Industrial overproduction – East Unequal distribution of wealth Over-extension of credit Causes of the great depression

3. Hoover played the game of confidence. “Prosperity is right around the corner.” No government assistance. How Hoover Dealt with it.

4. Hoover though business should self-regulate. Wanted a balanced budget Was not well liked by his political foes. Seen as a “Do-Nothing President” Reasons for ineffectiveness

6. Election of Franklin D. roosevelt

8. Banking System had collapsed The country believed it was leaderless Position when FDR Came into office.

9. I never saw him—but I knew him. Can you have forgotten how, with his voice, he came into our house, the President of these United States, calling us friends..."—Carl Carmer, April 14, 1945 

10. RELIEF RECOVERY REFORM

12. Emphasis: reform Political Position: conservative Primary aim: economic recovery Philosophy: economic nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity) Objectives: higher prices for agriculture and business Beneficiaries: big business and agricultural business First New Deal

13. Purpose: Restore confidence in the banking system Passed unanimously in Congress Federal examiners to survey the nation’s banks and issue licenses to those that were financially sound. Belief that their money would now be secure if they put it back into the banks Emergency Banking Relief Act

14. Purpose: Recovery of Industry Created a partnership of business, labor, and government to attack the depression. Use of: price controls, high wages, codes of fair competition. NRA: National Recovery Act

15. Purpose: the recovery of agriculture Paid farmers who agreed to reduce production of basic crops: cotton, wheat Money came from: tax on processors who passed the cost on to consumers. First Agricultural Adjustment Act

16. Purpose: Relief Gave outdoor work to unemployed men between the ages of 17 and 29. $30 per month Civilian Conservation Corp. (CCC)

17. Emphasis: reform Political Position: liberal Primary aim: permanent reform Philosophy: international economic cooperation and economic abundance Objectives: increased purchasing power and social security for public Beneficiaries: small farmers and labor Second New Deal

18. Became law in 1935 Major goal: to provide some security for the elderly and for unemployed workers Core: monthly retirement benefit when workers stopped at age 65. Unemployment insurance Social security Administration

19. Purpose: recovery for agriculture Paid farmers for conservation. Restricted the production of staple crops. Second Agricultural adjustment act

20. Fear the Roosevelt would abandon the gold standard People were doing “bank runs” – withdrawal all of their money By March of 1933 over 4,000 banks had closed. Governors declared a bank holiday to close the remaining banks before they lost money. ****CALLED CONGRESS INTO A SPECIAL SESSION, CLOSED ALL BANKS**** Bank “Holiday”

21. Refusal to simply give money to the unemployed. Recipients were more likely to maintain work skills and self-respect if they earned their money Creation of Governmental agencies that would organizes work programs for the unemployed. Unemployment

22. Created as part of the National Recovery Administration, the Public Works Administration provided jobs working in public works all across the nation. Public Works Administration

23. The Works Progress Administration provided millions of jobs working on public works projects across the nation. In 1939 the name was changed to Works Projects Administration. Works Progress Administration

24. Recovery of the United States economy

25. Home Owner’s Loan Corporation Bought mortgages from homeowners who were behind on payments Restructured them with longer terms of repayment and lower interest rates. 10% of homeowners received HOLC Only helped those still employed, it foreclosed on those who were unemployed Mortgage relief

26. The Home Owners Loan Corporation purchased and insured 20% of urban homes in the country. Home Owners Loan Corporation

27. The FHA opened home ownership to a new group of people by lowering required down payments and increasing repayment periods. Federal Housing Administration

28. Search for effective reform

29. The Glass-Steagall Act separated commercial banking from investment banking. To protect depositors: Federal Deposit Insurance Corporation (FDIC) Greatly increased public confidence in the banking system. Banking: Glass-Steagall act (FDIC)

30. Securities Act of 1933 Required companies that bought and sold stocks and bonds to provide complete and truthful information to investors. Creation of the Securities and Exchange Commission (SEC) to regulate the stock market and prevent fraud. Stock market: SEC

31. Guaranteed workers the right to organize unions without interference from employers, and the ability to bargain collectively National Labor Relations Board (NLRB) – organized factory elections by secret ballot to determine if the workers wanted a union. Wagner act (NLRB)

32. After the Wagner Act A burst of labor activity Committee for Industrial Organization – helped workers in industries without unions, to form unions. Organize unions with all workers skilled and unskilled. Labor’s response: Formation of CIO

33. 1938 After NIRA was dismantled by the Supreme Court The Fair Labor and Standards Act of 1938 provided more protection for workers, abolished child labor, and established a 40-hour workweek. Labor standards Act

34. Controversial aspects of the new deal

35. Schechter Poultry Corp v. United States, 1935 Constitutional issues

36. Activity Schechter poultry corpv. United States (1935)

37. Roosevelt’s court-packing proposal

38. 1940: Third Term Controversy

39. Unclear rules for presidential succession FDR would serve for almost four full terms A look back at the constitution Passage of the 22nd Amendment (1951)