1933 - 1941

1. 1933 - 1941 Roosevelt and the New Deal 1933 - 1939 Chapter 18

2. Roosevelt’s Rise to Power • 1932 - Republicans nominated Herbert Hoover to run for a second term as president. • Democratsselected New York Governor Franklin Delano Roosevelt (FDR). HOOVER FDR

3. FDR's PROMISE: A "NEW DEAL" FOR AMERICANS New Deal

4. FDR’s policies to end the depression - the New Deal. • Roosevelt won the election in a landslide. • Wealthy NY family; Harvard and Columbia Law School. • Cousin of President Theodore Roosevelt. • Married TR’s niece, Eleanor.

5. FDR’s political career started in 1910 as Progressive NY state senator. • Asst. Secretary of the Navyunder Woodrow Wilson. • 1920 – contracted polio, a paralyzing disease. • Roosevelt did not give up. • He relied on his wife, Eleanor, to keep his name prominent in politics.

6. Narrowly won race for New York governor. • During his term as governor, Roosevelt used government powerto help people deal with the economic challenges of the time. • His struggle with polio made voters feel he understood their hardships. • His popularity in New York paved the way for his run for president.

7. THE NEW DEAL

8. Roosevelt Is Inaugurated • FDR won the November 1932 presidential election, but his inauguration would not occur until March 1933. • During this time, the depression worsened; unemployment continued to rise, bank runs increased, and people began converting their money into gold.

9. People began taking gold and currency out of banks (bank runs), resulting in over 4,000 banks collapsingby March 1933. • Many governors declared bank holidayswhich closed remaining banks before bank runs could put them out of business. CLOSED

10. The Hundred Days Begins • Between March 9 and June 16, 1933, referred to as the Hundred Days, FDR sent many bills to Congress. • Congress passed 15 major acts to help during the economic crisis. • This period is called the First New Deal.

11. Fixing the Banks and the Stock Market • The first thingFDR needed to do was to restore confidence in the banking system. • He declared a nationalbank holiday and called Congress into special session. • Emergency Banking Relief Act; required federal examinersto survey the nation’s banks to determine which banks were financially sound and stable.

12. In FDR’s first “fireside chat,” on the radio, he assured listeners that the banks were now secure. • The following day deposits in every city outweighed withdrawals, ending the banking crisis.

13. New regulations for banks and stock market were implemented with the Securities Act of 1933 and the Glass-Steagall Banking Act. • Under the Securities Act of 1933, companies that sold stocks and bonds had to provide complete and truthful information to their investors.

14. The Securities and Exchange Commission (SEC) was created to regulate the stock market and prevent fraud.

15. Glass-Steagall Act separated commercial from investment banking. • Depositors’ money could no longer be risked by banks speculating on stock market. • Created the Federal Deposit Insurance Corporation (FDIC); provided government insurance for bank deposits up to a certain amount.

16. Managing Farms and Industry • FDR asked Congress to pass the Agricultural Adjustment Act– a plan that paid farmers not to raise certain crops to lower crop production. • Administered by the Agricultural Adjustment Administration (AAA). • Increased prices, and helped some farmers, but thousands of tenant farmers were unemployed, homeless.

17. The National Industrial Recovery Act (NIRA) suspended antitrust laws and allowed business, labor, and government to cooperate in setting up voluntary rules, known as codes of fair competition, for each industry. • The program was run by the National RecoveryAdministration (NRA), and it urged consumers to buy only from companies who signed agreements with the NRA.

18. The gains of the NRA were short-lived and actually caused industrial production to fall. • It was declared unconstitutional by the Supreme Court in 1935.

19. Spending and Relief Programs • FDR supported a series of government agencies to begin work programs for the unemployed. • The Civilian Conservation Corps (CCC) - unemployed men aged 18 to 25 worked with national forestry service planting trees, fighting forest fires, and building reservoirs.

20. By the time it closed in 1942, the CCC had employed three million men. CCC

21. In 1933 Congress authorized the Public Works Administration to begin a series of construction projects, creating additional jobs.

22. Harry Hopkins, the head of FERA, set up the Civil Works Administration (CWA), which hired workers directly and put them on the government payroll. • It was shut down when Roosevelt became fearful of the amount of money spent on the program. Harry Hopkins

23. The most important aspect of Roosevelt’s New Deal was the change in the spirit of the American people. • People became hopeful and optimistic, and their faith in America was restored.

24. NEW DEAL "ALPHABET" AGENCIES

26. Challenges to the New Deal • Support of FDR & the New Deal began to fade in 1935. • “Was the New Deal working?” • FDR used deficit spending to pay for the New Deal. • He borrowed moneyto pay for his programs.

27. Left-wing Democrat senator Huey Long proposed taking property from the rich and dividing it up among the poor. • Charles Coughlin, Catholic priest in Detroit, gave further support to Huey Long's ideas through his popular radio broadcast. Huey Long Charles Coughlin

28. Dr. Francis Townsend, former public health official, proposed that the federal government pay citizens over the age of 60 a pension of $200 a month. • This would increase spending and create additional jobs for younger people. Dr. Francis Townsend

29. Launching the Second New Deal • In 1935 Roosevelt’s second New Dealbegan with a series of programs and reforms to speed up recovery and provide economic security to every American. • Roosevelt hoped the plan would increase his chances of being reelected in 1936.

30. The Works Progress Administration (WPA) was a federal agency headed by Harry Hopkins. • It spent $11 billion over several years creating jobsfor workers. The Riverwalk in San Antonio was one of many WPA projects.

32. The WPA’s most controversial aspect was offering work to artists, musicians, theater people, and writers. A mural painted on a wall in a public building. The artist’s work was financed by the Works Progress Administration with taxpayer dollars. WPA art

33. In the Supreme Court case Schechter v. United States, the court struck down the National Industrial Recovery Act. • The Court ruled that the Constitution did not allow Congress to delegate its powers to the executive branch. • It ruled the NIRA codes unconstitutional.

34. The Rise of Industrial Unions FDRbelieved that: More labor unions Higher wages More spending Better economy!!!

35. 1935 - National Labor Relations Act (Wagner Act) was passed; guaranteed workers the right to organize unions without employer interference. • Set up the National Labor Relations Board (NLRB); organized factory elections by secret ballot to determine if workers wanted to form a union.

36. Binding arbitration was also set up. A neutral party would listen to both sides and decide the issue. • This gave dissatisfied union members a process to voice their complaints. • In 1935 the Committee for Industrial Organization(CIO)was formed to organize industrial unions.

37. At the General Motors auto-body plant in Cleveland, Ohio, workers protested with a sit-down strike where they stopped working but refused to leave the plant. • Workers at the company’s plant in Flint, Michigan, did the same.

38. The United Auto Workers (UAW) was formed and quickly became one of the most powerful unions in the United States.

39. The Social Security Act • The Social Security Act, passed in 1935, provided security for the elderly, unemployed workers, and other needy people. • Provided a monthly retirement benefit and unemployment insurance. • Workers paid premiums in order to receive benefits.

40. Social Security helped many people, but initially it left out many of the neediest members of society, such as farmers and domestic workers. Unemployed men signing up for Social Security benefits. Section 3-22

41. FDR’s Second Term • Millions of voters owed their jobs, homes, and bank accounts to the New Deal. • By 1936, Democrat Party membership shifted from mainly white Southerners to include farmers, laborers, African Americans, new immigrants, ethnic minorities, women, progressives, and intellectuals. • First Lady Eleanor persuaded her husband to address some of their issues. Ex: Secy. of Labor, FrancesPerkins, was the first woman appointed to a cabinet post.

42. Roosevelt won the 1936 election in one of the biggest landslides in American history.

43. The Supreme Court did not support the FDR’s New Deal programs. • In January 1936, the Court declared the Agricultural Adjustment Actto be unconstitutional. • After the election, FDR tried to change the political balance of the Supreme Court with a court-packingplan. Section 4-7

44. Roosevelt sent Congress a bill to increase the number of justices on the Supreme Court. • It was a political mistake and split the Democrat Party. • Americans felt it would give the president too much power.

45. By 1937, FDR had another problem….the government was spending too much money on New Deal programs, so he cut some of them. Unemployment skyrocketed AGAIN! Debate on what to do……..

46. The Last New Deal Reforms • Roosevelt’s successes were limited in his second term in office. • New Deal legislation began to get blocked as Congress began to turn against the New Deal. • The New Deal era ended by 1939.

48. The Legacy of the New Deal • The New Deal had limited success, but….. • * Gave Americans a stronger sense of security • * Helped to balance competing economic interests • * Established the broker state; helped work out conflicts among different interests • * New public attitude toward government • * Gave Americans a safety net that providedsafeguards and relief programsto protect them from economic disaster

49. Reviewing Key Terms Define Match the terms on the right with their definitions on the left. D __ 1. process whereby a neutral party hears arguments from two opposing sides and makes a decision that both must accept __ 2. role of the government to work out conflicts among competing interest groups __ 3. a monetary standard in which one ounce of gold equaled a set number of dollars __ 4. method of boycotting work by refusing to work but refusing to leave the establishment A. gold standard B. fireside chats C. deficit spending D. binding arbitration E. sit-down strike F. Social Security Act G. broker state H. safety net G A E

50. Define Match the terms on the right with their definitions on the left. B __ 5. radio broadcasts made by FDR to the American people to explain his initiatives __ 6. something that provides security against misfortune; specifically, government relief programs intended to protect against economic disaster __ 7. government practice of spending borrowed money rather than raising taxes, usually an attempt to boost the economy A. gold standard B. fireside chats C. deficit spending D. binding arbitration E. sit-down strike F. Social Security Act G. broker state H. safety net H C Chapter Assessment 2