The New Deal ”Relief, Recovery, and Reform”

1. The New Deal”Relief, Recovery, and Reform” “The only thing we have to fear……………..is fear itself”

2. Launching the New Deal

3. Restoring Confidence • Fireside Chats – Media is kind to FDR (No photos in wheelchair) • Economy Act – Cut Federal Salaries – Balance Budget • Repeals Prohibition – 21st Amendment (1933) • Emergency Banking Act – Bank Holiday – only “sound” banks can open

4. Agricultural Adjustment • AAA – (1933) reduce production, end surplus • Farmers determine production limits, gov’t subsidizes the rest • Subsidies go to land owners – hurts sharecroppers and tenant farmers • Income up 50% in 3 years • Favors big farms

5. Industrial Recovery • NIRA – Loosened Anti-Trust laws • NRA – “Blanket code” – minimum wage, maximum work, no child labor, price stability • Create purchasing power • Very good for business – some don’t like it • NRA declared unconstitutional in Schecter vs. U.S.

6. Regional Planning • TVA – Flooding control and energy for rural areas

7. Financial Reform • Off of gold standard for money • Created inflation, but people had money • Glass-Steagal Act – Creates FDIC • Curb irresponsible activity by banks • Truth in Securities Act - SEC

8. The Growth of Federal Relief • FERA – money goes to states for them to allocate as they see fit • Farm Credit – refinance mortgages at lower interest rates • CCC-Parks, trees, reserves • HOLC – refinanced home mortgages • FHA – insure mortgages for new construction and repairs • Congress is “rubber stamping” FDR’s plans

9. The New Deal in Transition

10. Attacks from the Left and Right • Right – Led by DuPont & American Liberty League • Arouse public about FDR being like a dictator • Says New Deal is an attack on free enterprise • Left – Communists & Socialists – small and ineffective, but want gov’t to do more

11. Popular Protest • Dr. Frances Townsend – wants 60+ pensions – led to Social Security • Father Charles Coughlin – radio Show/Wants FDR to be more radical • Huey Long – Radical from Bayou, creates the “Share our Wealth Plan” • All prove to FDR that he may need to be more flexible and more radical

12. The “Second” New Deal • More against big business/tax reform of wealthy • Wagner Act – Creates NLRA/Unions get more credibility/FDR gets more votes

13. Labor Militancy • Business can’t control gov’t as much • AFL losing numbers (too many unskilled laborers) • John Lewis breaks from Mine Workers Union to start CIO • CIO takes all comers, eventually merges with AFL

14. Organizing Battles • UAW – Sit down strike – no gov’t assistance for either side • 80% of all unions win, business is more receptive • SWOC – Memorial Day Massacre

15. Social Security • Frances Perkins – Secretary of Labor (1st Woman in Cabinet) • Insurance vs. Welfare / Aid to Dependant Children

16. New Directions in Relief • WPA – Harry Hopkins/$2.1 million to build airports and schools • Spawned federal arts projects, music, theatre • National Youth Admin – kids go to college • Emergency Housing Admin – Public Housing

17. The 1936 Referendum • Alf Landon runs – very weak candidate • Huey Long – assassinated • FDR wins 61% of vote • Democratic re-alignment – west, south, farmers, blacks, poor, unemployed

18. The New Deal in Disarray

19. The Court Fight and The “Purge” • Court is conservative – strike down NRA & AAA • Court Packing – court is “overworked”, add 6 more judges to bench • Court starts to support FDR, he loses moderate support, especially in South

20. Retrenchment and Recession • 1937 national income just $10 million under pre-depression numbers • FDR sees opportunity to stop inflation • Roosevelt Recession – cuts back on WPA, reduces spending • Goes after trusts again • Fair Labor Standards Act – Minimum Wage and Work Hours • Congress stops “rubber stamping”

21. Limits and Legacies of the New Deal

22. The Idea of the “Broker State” • Federal government is mediator in business problems • No harmony in U.S., elevate new groups to compete • Labor is stronger • Rise in Interest Groups -Homeowners -Elderly -Unemployed -Farmers -Workers

23. African Americans and the New Deal • Eleanor is the “Key” • Marian Anderson at the Lincoln Memorial • “Black Cabinet” – Mary McLeod Bethune • Lynching, Poll Tax remain, Segregation still around • FDR is not a hero to blacks, but not an enemy either

24. The New Deal and the “Indian Problem” • Indian Reorganization Act • Redistributed land to re-gain heritage • Tried to reverse Dawes Act • Tribe is unit of government that Native Americans had to go through to sell land, negotiate with other governments, etc..

25. Women and the New Deal • Francis Perkins – 1st Female Cabinet Member • It is promoted that Women should step aside for men in times of employment • New Deal doesn’t hurt Women, but it doesn’t help either

26. The New Deal and the West • Received the most attention from FDR • Farms • Energy • Dams • TVA • REA

27. The New Deal and the National Economy • Economy never “recovered” under New Deal – WWII did the job • Economic Development of West & South • New groups emerge in business competition • Creation of a Welfare State

28. The New Deal and American Politics • Federal power grows / President is focal point of government • Democrats went from disarray to a strong coalition (WHO are they?) • People EXPECT government to do things (Hoover was right?)