FDR and the New Deal

1. FDR and the New Deal 1933-1940

2. Franklin Delano Roosevelt • Starting with his first inaugural address, in 1933, FDR offers hope and the promise of a “New Deal” for Americans – helping restore Americans’ sense of hope • FDR also began regular “fireside chats” over the radio with the American people – his confidence helped renew people’s hopes for the future

3. New Deal • FDR’s New Deal was a promise of programs to ease the effects of the GD • In FDR’s first hundred days in office, he launched programs to provide relief, create jobs, and stimulate the economy • Banks were his first step – FDR ordered all banks close on Mar 5, 1933, until the govt could regulate them to prevent failures – “Bank Holiday”

4. First Hundred Days • FDR also pushed the Glass-Steagall Banking Act – it established the FDIC (Fed Deposit Insurance Corp) • The Securities and Exchange Commissionis set up to regulate the stock market • The Federal Emergency Relief Administration (FERA)gives aid to local relief agencies and funds public works programs

5. First Hundred Days • Public Works Programs were govt-funded projects to build public facilities and provide jobs and $$ • The Civil Works Administration (CWA) and Civilian Conservation Corps (CCC) helped provide jobs to young men restoring parks, building roads, and planting forests

7. First Hundred Days • The govt also turned to help businesses with the creation of the National Recovery Administration (NRA) – helped established codes for business practices – regulated wages, controlled working conditions, production, prices, and set the first minimum wage for workers

8. First Hundred Days • One of the most important parts of the NRA was the Public Works Admin (PWA) – launched massive building projects of dams, bridges, and roads • FDR also turned to help homeowners who had failed to pay loans – he created the Federal Housing Admin (FHA) – still active today – improved housing standards and conditions, insured loans, and helped people buy/keep homes

9. First Hundred Days • Farmers also needed help – FDR sets up the Agricultural Adjustment Administration (AAA) – to try to raise prices thru subsidies or govt $$ • The AAA actually paid farmers to plow under their crops and dairy farmers to pour out milk supplies (why??) – many people could not understand why the govt destroyed food while millions were without enough food

11. Tennessee Valley Authority • The one public works project that most impacted our area was the Tennessee Valley Authority (TVA) – this project built hydro-dams and helped provide flood-control, recreational areas, and electricity, to rural areas in TN,AL,GA,NC,VA,KY • Govt agencies created to help people – unlike anything govt had done before

13. “Brain Trust” and Eleanor • FDR surrounded himself with key advisors called the “brain trust,” who helped him draft policies • He also relied heavily on his wife, Eleanor, who traveled around the nation, reporting conditions to FDR, and endearing her husband to the American people – his eyes and ears

14. Frances Perkins • FDR appoints the first woman to a Cabinet post – Frances Perkins – Secretary of Labor – and many Af-Ams to key positions • Despite all these efforts, the programs of the first 100 days fails to bring significant economic improvement, and public support turns to criticism

15. The Supreme Court also attacks FDR’s programs, declaring some unconstitutional • To combat this opposition, FDR launches a second “New Deal” – this one addressed to ordinary Americans, whom had felt left out of the earlier reforms • The 2nd ND included more social welfare benefits, strict control of business, and higher taxes on the rich

17. Second New Deal • The Works Progress Admin (WPA) provides work for more than 8 million citizens building playgrounds, schools, hospitals, and supporting artistic and literary work • The 2nd New Deal addresses the hardships of farmers, farm workers, and sharecroppers, by loaning $$ to farmers, and setting up camps for migrant workers

19. Second New Deal • The govt undertakes rural electrification (REA) increasing the demand for electric appliances, which in turns benefits manufacturing companies and local merchants • Unions benefit when Congress passes the Wagner Act which legalizes collective bargaining and outlaws blacklists – names of those who aren’t allowed to work

20. Social Security • And, in 1935, Congress passes the Social Security Act, setting up the SS system to provide financial security ($$) to people who could not support themselves – offered 3 types of insurance: • Old-age pensions and survivors’ benefits – retired workers and widows

22. Social Security • Unemployment insurance – the govt would give $$ to workers who lost their jobs • Aid for dependent children, the blind, and the disabled – gave $$ to states to help support needy people • No other program marked the expansion of the federal govt’s role as a caretaker of its citizens more than the SSS

23. Election of 1936 • Most Americans support FDR’s efforts, and FDR wins reelection in 1936 by the largest landslide in our nation’s history – only Maine and Vermont did not vote for FDR • The landslide victory showed that most Americans supported the New Deal – yet there were many critics forming

24. New Deal Support Weakens • Although most Americans supported FDR and the New Deal – many became disappointed • Minimum wage set at 25 cents/hr, well below what most were making • Progressives and Socialists believed the ND had not done enough to distribute the nation’s wealth equally

25. Upton Sinclair • Socialist writer – The Jungle – believed the entire economic system needed to be reformed – sought very socialistic changes in his EPIC plan (End Poverty in California) • Under the EPIC plan, state govt would take over factories and farms • Political opponents began to smear Sinclair, and his desire for the governorship of CA was smashed

27. New Deal and Gender • Women and A-A were paid less $$ for the same job than white men, and were discriminated against in what jobs they could get – New Deal programs actually preferred (and accepted) only young, strong, men • No ND provision protected domestic service, the largest female occupation

28. New Deal and Race • The ND actually reinforced segregation in the South and discrimination in the North – barred A-A from serving in professional jobs • In the North, even in black neighborhoods, white-owned businesses continued to employ whites only – even while accepting govt $$

29. African-Americans and ND • Even with this apparent discrimination, FDR was widely supported by A-A – WHY?? • FDR appointed more A-A to policymaking positions • The Roosevelts (both) also seemed genuinely concerned about the fate of A-A – Their concern for the average A-A led to their popularity

30. New Deal Resistance • FDR met with stiff resistance from the American Liberty League, which charged the ND with limiting individual freedom and as being “un-American” • They claimed that the Social Security $$ paid in each paycheck penalized hardworking Americans by taking their $$

31. Rise of Demagogues • Others contended that the ND had not done enough – chief among this group were two demagogues – leaders who manipulate people by scaring them with half-truths and deceptive promises • Among these were Father Charles E. Coughlin, and Huey Long

32. Father Charles Coughlin • A priest who used the radio to attack the ND – although he was often contradicting himself on issues • He once called for the nationalization – govt takeover – of banks and the redistribution of wealth • By the end of the 1930s, Coughlin was becoming very radical – praising Hitler and others – and he lost his public support

33. Huey “Kingfish” Long • Of Louisiana, once governor, and US Senator, he began to called for real change – the redistribution of wealth • Under his “Share-Our-Wealth” plan, he would limit individual income to $1 million, the rest would be taken by the govt by income taxes and redistributed to every family – with a minimum of $5,000 and an annual income of $2,500

35. Huey Long • Long’s programs attracted many followers, and helped push FDR to pass new taxes on the rich • Long’s desire for the presidency, though, was cut short in 1935 when an assassin killed him • Long and Coughlin never seriously threatened FDR, but their influence warned FDR that he must find solutions to the problems, or risk losing support

36. FDR also received criticism for his efforts to “pack” the US Supreme Court – when the SC struck down many of FDR’s early New Deal programs, he sent a bill to Congress allowing him to appoint six new Justices – allowing him to “pack” the court with friendly judges • Strong opposition forced FDR to withdraw the motion, but he still got to appoint (thru deaths and retirement) 8 justices to the Supreme Court

37. Modern-Day Critics • Many modern-day critics have claimed the ND hindered economic recovery through high taxes and undermined the free-enterprise system by taking control of key industries • They also criticize the ND’s deficit spending – paying out more $$ than the govt receives – which made less $$ available for private borrowing

38. Bloated Government • Others criticize how the federal govt became so “bloated” and dangerously powerful and encouraged inefficient use of resources (spilt milk) • Also critics attack the policy of heavy taxes to pay for the programs – which they saw as taking $$ out of the pockets of Americans

39. 1937 Recession • The ND led to improvement, but in 1937 the economy collapsed into arecession – a period of slow business activity • People had less $$ to spend and some expensive programs were cut to slow the national debt – the amount of $$ the govt borrowed that had to be paid back • FDR does expand some programs and the economy improves some

40. Labor Unions • During this time, ND protections helped labor unions grow and unskilled workers are organized in a coalition – alliance of groups with the same goals – into the new Congress of Industrial Organizations • Through sit-down strikes – strikes where laborers stop work but refuse to leave – workers become more successful in improving conditions

42. Labor for Workers • However, these strikes tended to erupt into violence, and they were outlawed by the Supreme Court in 1939 • The New Deal projects had provided many jobs for unemployed artists, musicians, writers, and theatre people • Many of these left an enduring cultural legacy on American society – John Steinbeck, Orson Welles, and Dorothea Lange

44. New Deal Legacy • Radio becomes a major source of entertainment as well as movies • Many bridges, dams, tunnels, public buildings, and hospitals built during the ND will last long into the future • Most of all, New Deal programs offered hope at a difficult time – they were doing something to try to help

45. New Deal Legacy • The New Deal also profoundly changed ideas about the roles of government and the President • Govt becomes the caretaker of the people and the President becomes the most powerful piece for a while • Economic recovery will not come until well into the 1940s, and then, because of another world war