Franklin D. Roosevelt and the New Deal

1. Franklin D. Rooseveltand the New Deal Redefined Democracy: Political Rights  EconomicSecurity  Social Justice

2. Reasons for Hoover’s Ineffectiveness • thought business should be self-regulating • desperate to balance the budget • lacked political finesse • Hoover was viewed as a “do-nothing president”

3. Franklin D. Roosevelt’s Appeal • perceived as a man of action • “can-do” attitude • projected an air of friendliness and confidence • knew how to handle the press • willing to experiment • two-term governor of New York • distant cousin of former president Theodore Roosevelt • Results: a landslide for Democrats (both presidency and Congress)

5. Situation When FDR Entered Office • In March 1933, the country was virtually leaderless, banking system had collapsed • 20th Amendment (Feb. 1933) moved presidential elections from March to January did not apply (to avoid “lame duck” issues) Inaugural address, “The only thing we have to fear is fear itself….”

6. The “Brain Trust” During the “lame duck” period, FDR worked with a group of advisors: professors lawyers journalists They became known as the “Brain Trust” - worked with FDR to create THE NEW DEAL “a new deal for the American people”

7. 3 Goals of the New Deal • Relief: for the needy, provided jobs for the unemployed, protected farmers from foreclosure • Recovery: economic, get the economy back into high gear • Reform: financial, to regulate banks, abolish child labor, conserve farm lands

8. First Hundred Days • March 9 – June 16, 1933 • Congress passed more than 15 major pieces of New Deal legislation • Significantly expanded the federal government’s role in the nation’s economy

9. Fireside chats – radio talks about issues of public concern; explained New Deal; Americans felt like FDR was speaking directly to them

10. Prohibition Repealed - 1933 In order to raise government revenues by taxing alcohol; 21st Amendment passed

11. Concerns with the New Deal • policy of deficit spending (spending more money than the government receives in revenue) • FDR felt it was a necessary evil - only to be used at a time of great economic crisis • supported by British economist John Maynard Keynes

12. Criticisms of Conservative Opponents • American Liberty League • felt New Deal violated respect for and rights of individuals and property • added to the national debt ($35 billion) • wasted money on relief and encouraged idleness • violated the Constitution & States’ rights • increased power of the Presidency

13. Senator Huey Long (Louisiana) • an early supporter of the New Deal • turned against FDR • planned to run for president • advocated a Share-Our-Wealthplan • guaranteed annual income of at least $5,000 for every American • to be financed by confiscating wealth of people who made over $5 million per year • Slogan: “Every Man a King!” • Very popular – 1935 claimed 7.5 million members of Share-Our-Wealth clubs • Killed by Dr. Carl Weiss at a rally (Long died at hospital; Weiss killed at scene)

14. Father Charles E. Coughlin • radio priest from Detroit • combined economic, political and religious ideas • favored a guaranteed annual income • wanted nationalization of banks • claimed there was an international bankers conspiracy and Jews were responsible • Anti-Semitic views led to downfall

15. Dr. Francis E. Townsend • an elderly physician from CA • felt FDR’s plan didn’t do enough for poor and elderly • created a pension plan for the federal government to pay $200 per month to unemployed people over 60 • plan financed by a 2% national sales tax and each pensioner would be required to spend the money in 30 days; stimulating the economy

16. The Election of 1936 Popular Vote: 60.80% Alfred Landon: 36.5% Electoral Vote: 98.5%

17. Protection of New Deal Accomplishments • Steps FDR took to protect New Deal accomplishments (both failed): • Court-Packing Plan (proposed increasing Supreme Court from 9 to 15 members, caused in revolt in Dem. Party) • Election of 1938 • evidence that FDR interfered in a state campaign upset voters • Republicans gained strength in both houses of Congress

18. Decline of New Deal Reform after 1937 • Court-packing plan made Congress irritable • Recession of 1937-38 weakened confidence in New Deal measures (spending cuts in order to balance budget), led to Republican strength in Congress • Conservative Democrats ; voted with Republicans to block New Deal legislation • Increasing focus on foreign affairs

19. Impact: The New Deal • Government responsibility: • for the health, welfare, and security, as well as the protection and education of its citizens • Extension of Democracy: • defined the concept of democracy; it now included not only political rights but economic security and social justice as well • Revitalized politics: • Reasserted presidential leadership • Parties seen as vehicle for the popular will, instrument for effective action

20. How does the Great Depression end? Does the bombing of Pearl Harbor by the Japanese pull America from economic crisis? Yes? No? It is still debated today! Pearl Harbor October, 1941