MR. LIPMAN’S APUS CHAPTER 33 POWERPOINT

1. MR. LIPMAN’S APUS CHAPTER 33 POWERPOINT FDR and the Great Depression 1930’s

2. Keys to the Chapter • FDR AND ELEANOR ROOSEVELT • ELECTION OF 1932 - CHANGING POLITICAL PARTY BASE • THE FIRST HUNDRED DAYS • THE THREE R’S AND THE SAFETY NET • FINANCIAL INDUSTRY REFORM • THE GROWTH OF LABOR UNIONS • THE DUST BOWL MIGRATION • COURT PACKING PLAN FAILURE

3. FDR: Wealth / Polio / “Traitor to his class” • Eleanor becomes his legs and conscience • Promises “a new deal for forgotten man” • FDR wins big but vote more anti Hoover than pro FDR • Blacks switch to the Democratic Party in a big way

4. FDR with Eleanor Roosevelt

5. America’s working man who FDR says he was elected to represent

6. Election of 1932

7. November 1932 – March 1933 – Hoover’s lame duck period • He could not take long-range action w/o FDR • Roosevelt refused to be tied down by Hoover on war-debt or anti-inflationary policy • Republicans argued that FDR deliberately allowed Depression to worsen to give himself more glory March 4th Inauguration: “The only thing we have to fear is fear itself”. America will change forever.

8. Three R’s: Relief, Recovery, and Reform • New Deal’s goals • Short-range – relief and immediate recovery • Long-range – reform of abuses that had produced the boom and bust cycle • Hundred Days focused on short-term problems; long-term reforms came later • Passed reforms that industrialized Europe already had • Unemployment insurance, old-age insurance, minimum-wage regulations, conservation and development of natural resources, restrictions on child labor

10. THE FIRST 100 DAYS & TERMINOLOGY • Bank Holiday • Fireside “Chats” • Beer and Wine legalized and later in 1933 Prohibition is repealed • “Prime the Pump” to lower 25% unemployment (CCC – civilian conservation corp.) • Farming Relief (AAA)- Subsidies not to grow {but in 1936 Supreme Ct. will rule it unconstitutional} • FERA ($3 billion to state’s to pay relief $} • CWA pays for temporary “make work”

11. TVA is created {short term means work but long term means change the power monopoly in America – many argue it is socialism} • FSA (Federal Securities Act) • HOLC (homeowners loan corp. will buy up mortgages- allow people to stay in homes) • Glass-Steagall Banking Act (FDIC) • Pvt. Gold Surrender (reform currency and build up Government reserves) • NRA – Additional power to labor- reduce hours worked and create minimum wage (but Supreme Court will later rule it unconstitutional)

12. PWA (thousands of road jobs across USA) and will later be followed by the WPA • SEC created to govern securities industry • FHA created to provide needed housing • NLRA created to protect workers and will establish the NLRB aiding unions • SSA created in 1935 (social security was strongly opposed then by Republicans) it reflects America’s change from Laissez-Faire to Safety Net.

13. The TVA Area

14. Failures Before and After the Glass-Steagall Banking Reform Act of 1933

15. Why US went off the gold standard • Want inflation to relieve debts and stimulate production • Government bought up gold at increasing prices to encourage people to bring in their gold from home • Price per ounce went up from $21 (1933) to $35 (early 1934) • Attacked by “sound money” conservatives • 1934 – 1971 – limited gold standard • For international trade, US would pay debts in gold if requested at 1 ounce for every $35 owed • Domestic circulation of gold (as money) prohibited to force everyone to use paper money. • 1971 – Nixon took US completely off gold standard & since we have been on the “Fiat” system.

16. 1935 - Schechter Poultry v. United States • The “sick chicken case” • Court ruled that NRA unconstitutional • Congress could not delegate its legislative power to executive branch • Congress itself could not regulate a local business – Commerce clause only applied to interstate business not intrastate business FDR WILL BEGIN TO THINK OF A WAY TO GET AROUND THE SUPREME COURT

17. LABOR GROWS STRONGER UNDER FDR • UMW (United Mine Workers) union grows under John L. Lewis • UAW (United Auto Workers) union grows and has sit-down strike at GM at Flint, Mich. Wins official recognition as bargaining unit. • Unions strongly support FDR and help him win elections in 1936 and 1940

18. The Growth of Labor Union Membership, 1933–1946-----------------1980s -2005 has seen large union membership decline

19. The Dust Bowl • Late 1933 – drought struck Great Plains • Rainless weeks &winds removed tons of topsoil • Reached from Colorado to Missouri • Causes of the dust storms • Natural causes • Farming marginal land during WWI • Dry-farming techniques (leaving land fallow in summer) • Mechanization tore up more land than previously (using horses) OKIES MIGRATE TO CALIFORNIA (“Grapes of Wrath”)

20. Route 66-The Dust Bowl Express

21. Okies on the Road to California-----------They brought it all with them because there was nothing to return to

22. Farm bankruptcy act gave extension of time to pay for farmers in trouble 1934

23. PEOPLE TO KNOW FROM THE DECADE • Secretary of Labor Frances Perkins • First woman cabinet member • Mary McLeod Bethune • Highest-ranking black in FDR’s administration (minority affairs) • Father Coughlin (anti-semetic) • Huey Long (Kingfish from N.Orleans) • Dr. Charles Townsend (stimulate economy by giving everyone $200 @ month they must spend) • Margret Meade (new ideas on sexuality and gender roles) • Pearl Buck- author the good earth

24. Policies toward Indians • Indian Reorganization Act of 1934 • Reversed assimilation policies of Dawes Act (1887) & encouraged tribes to preserve culture and set up self-government Election of 1936 - FDR big over Landon and Congress stays solidly Democratic. FDR coalition includes Unions, Blacks, Immigrants and anyone getting government assistance (As AL Smith said “You don’t shoot Santa Claus”) FDR sees landslide as a mandate to continue the policies of the New Deal

25. The Supreme Court Problem Ultra conservative • 6 of 9 justices were over 70 • Ruled against New Deal 7 of 9 times it came before them, usually 5 to 4 majorities • Roosevelt appointed no justices in first term • Following inauguration in 1937 he decides to “pack the court” (now because of 20th amendment moved to Jan. from March)

26. Congress and the American People turn against FDR and accuse him of threatening the Constitution itself.

27. “A switch in time saves nine” • Justice Owen J. Roberts, previously conservative, began to vote with the liberals • March 1937 – court upheld state minimum wage law for women • Reversal of a similar case from1936 • 1937 – Congress voted full pay for retired justices over 70 • One of the oldest conservatives retired • Replaced by more liberal Hugo Black • New Deal laws upheld by new majority

28. 1933 – 1937 – Depression continued during Roosevelt’s first term • Unemployment still at 15% (but down from high of 25%) • 1937 – the “Roosevelt recession” (word created to avoid using the word depression) • Economy took sharp downturn • Social Security ate into payroll checks • Administration had cut back on spending to keep budget balanced (as close as possible) • Hatch Act of 1939 • Barred fed workers from campaigning or soliciting for votes • Banned government funds for political purposes • Stopped collection of contributions from people on relief

29. John Maynard Keynes • British economist advocated government running deficits during bad economic times to heat up the economy • Borrowed $ paid back when times were better • Opposed by Friedrich Hayek who argues that it makes government too powerful and temp. programs will become permanent • Starting in 1937 FDR announces he will follow Keynesian policy and budget deficits grow

30. Criticisms of the New Deal • Waste, incompetence, and graft (bribery) • Fear it was remaking US into communist or socialist state • Increased size and power of bureaucracy • Doubling of deficit ($19 billion to $40 billion); although WWII would increase it to $258 billion • Business believed it could get US out of Depression w/o government interference • Despite years and billions, US was still in Depression

31. Argument in favor of the New Deal • Relief – not the economy – was primarily what Gov’t was attacking • Graft was minimal compared to amount spent • Government’s obligation to help the masses • Capitalism saved from collapse (purged worse abuses to save it from itself) • Fairer distribution of income achieved • Stopped more radical solutions to Depressions • Kept armed revolt and upheaval occurring in Europe out of US

32. Final Word on FDR He drove “the car” down middle road • Called greatest American conservative • Chose middle road between radical conservatives who wanted little or no government action and radical left-wingers who wanted to end capitalism • Both Hamiltonian and Jeffersonian • Supported big-government action • Remembered the “forgotten man” THE AMERICAN SAFETY NET IS CREATED AND IT WILL ONLY GROW LARGER