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Chapter 33. The Great Depression and the New Deal, 1933–1939. I. FDR: Politician in a Wheelchair. FDR’s personality formed because of paralysis His wife, another personal & political asset Franklin Roosevelt’s political appeal Strong orator, popular depression governor of N.Y.
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Chapter 33 The Great Depression and the New Deal, 1933–1939
I. FDR: Politician in a Wheelchair • FDR’s personality formed because of paralysis • His wife, another personal & political asset • Franklin Roosevelt’s political appeal • Strong orator, popular depression governor of N.Y. • Nominated by Democrats (1932) • Balanced budget • Sweeping social reforms
II. Presidential Hopefuls of 1932 • Franklin D. Roosevelt (Democrat) • Preached a New Deal for the “forgotten man,” • Plan was vague and somewhat contradictory • Herbert Hoover (Republican) • Usually campaigned from the White House • Kept faith in American free enterprise, individual initiative
III. Hoover’s Humiliation in 1932 • 1932 election • A distinct shift of blacks to the Roosevelt camp • 1932 election results • 22,809,638 for Roosevelt; 15,758,901 for Hoover • The electoral count 472 to 59
IV. FDR and the Three R’s: Relief, Recovery, Reform • The New Deal - FDR’s econ & social program • Relief. Recovery. Reform. • Hundred Days (March 9-June 16, 1933) • Nationwide banking holiday • Congress follows FDR’s lead (Rubber stamp congress) • New Dealers - Embraced progressive ideas • Unemployment and old age insurance, Minimum wage • The conservation and development of natural resources • Restrictions on child labor • Tennessee Valley Authority
V. Roosevelt Manages the Money • Glass-Steagall Banking Reform Act 1933 • Federal Deposit Insurance Corporation (FDIC) • A “managed currency” (inflation) introduced • Gold bought at increasing prices ($21-35 in 1 year) • Roosevelt turned to the radio • “fireside chats” • Confidence returned; banks opened their doors
VI. Creating Jobs for the Jobless • Overwhelming unemployment (~25%) • Civilian Conservation Corps (CCC) • The most popular New Deal “alphabetical agencies” • Hard-pressed Special groups relief • Agricultural Adjustment Act (AAA) • Home Owners’ Loan Corporation (HOLC) • Civil Works Administration (CWA) (1933) • Least popular program, shovel leaning, “make-work”
VII. A Day for Every Demagogue • The appearance of demagogues • Father Coughlin (A “microphone messiah”) • Dr. Francis E. Townsend • Senator Huey P. Long (The “Kingfish”) • Links between demagogues, fascism, and crisis • Authoritarianism was the answer elsewhere • Works Progress Administration (WPA) • Built public buildings, bridges, stadiums, roads, artworks • Critics said WPA meant “We Provide Alms”
VIII. New Visibility for Women • First Lady Eleanor Roosevelt • Variety of political / social efforts • Francis Perkins • Secretary of Labor (1st female cabinet member) • Mary McLeod Bethune • Minority Affairs Director • Margaret Mead • 34 books, American Museum of Natural History • Pearl S. Buck • The Good Earth (1931)
IX. Helping Industry and Labor • The National Recovery Administration (NRA) • The most complex, far-reaching New Deal projects • NRA’s “fair competition” codes • Self-made rules for both management and labor • SCOTUS Schechter ruling killed the NRA • The liquor industry: repeal of the prohibition • 21st Amendment
X. Paying Farmers Not to Farm • Agricultural Adjustment Administration (AAA) • Created “artificial scarcity” to establish “parity prices” • Paid growers to reduce their crop acreage • Ruled unconstitutional in 1936 • The Second Agricultural Adjustment Act (1938) • Soil Conservation & Domestic Allotment Act (1936) • Farmers paid to plant soil-conserving
XI. Dust Bowls and Black Blizzards • The Dust Bowl: Nature’s unplanned scarcity • Drought, wind, human misdeeds triggered the storms • John Steinbeck, The Grapes of Wrath (1939). • Indian Reorganization Act (1934) (“Indian New Deal”) • Encouraged tribes to establish local self-government • To preserve their native crafts and traditions • It helped to stop the loss of Indian lands
XII. Battling Bankers and Big Business • Securities and Exchange Commission (SEC) 1934: • Designed as a watchdog administrative agency • The Public Utility Holding Company Act of 1935 • Designed as a watchdog administrative agency
XIII. The TVA Harnesses the Tennessee • The Tennessee Valley Authority (TVA) (1933) • Part of “planned economy” • Federally built, owned dams • Benefits • Employment, cheap power, low cost housing, reforestation, better navigation, flood control • Conservative reaction to “socialistic” program • Would limit program to Tennessee valley • Caused westerners to want their own programs • Columbia, Colorado, and Missouri Rivers
XIV. Housing and Social Security • Federal Housing Administration (1934) • Building industry stimulated through small loans • Social Security Act (1935) • Unemployment insurance and old-age pensions • Has since expanded to include more people • Not as comprehensive as European nations • Republican opposition was bitter (“cult of leisure”)
XV. A New Deal for Labor • Wagner Act/National Labor Relations Act (1935) • National Labor Relations Board • Effective unions began to organize • Conservatives were upset (private property) • Fair Labor Standards Act (1938) • Minimum-wage/maximum-hours, No child labor • Congress of Industrial Organizations (CIO) • 4 mil members (1940), battled rival A.F.L. for control
XVI. Landon Challenges “the Champ” • The presidential election of 1936 • Democrats renominated FDR (New Deal platform) • Republicans nominate Alfred M. Landon • Attacked Franklin “Deficit” Roosevelt for his radicalism • The political battle of 1936 • The most bitter campaign since 1896 • “Class warfare”- the needy vs the greedy • Election returns of 1936 • Popular vote was FDR 27,752,869 to 16,674,665 • The electoral count FDR 523 to 8 • Dems win veto-proof House and Senate
XVII. Nine Old Men on the Bench • SCOTUS ultra-conservative and old (6 over 70) • 7 of 9 nominated by Republicans • FDR regarded them as conservative obstructionists • Roosevelt’s failed “court packing” scheme • Increase size of SCOTUS from 9 to 15 • FDR accused of trying to be a dictator