Franklin D. Roosevelt and the New Deal

1. Franklin D. Roosevelt and the New Deal

2. The US in 1932 • Economy at rock bottom- on the verge of complete collapse • 7 million homeless • Banks were closed in 38 states • Dust Bowl • 25% out of work

3. The Dust Bowl

4. The Political Beliefs of Franklin Roosevelt vs. Herbert Hoover • Franklin Roosevelt (FDR) was a Liberal • Liberals believe that the federal government should rescue the economy • On the other hand, Herbert Hoover was a conservative • Conservatives believe the federal government should stay out of it allow charities and churches to voluntarily rescue the economy (Voluntarism-the depression would cure itself (Laizze Faire) • Most Americans agreed with FDR- we were buried too deep in the depression and needed the government to come to the rescue

5. FDR’S v. HOOVER’S PHILOSOPHY Keynesianor "pump priming" economics based on the work of economist John Maynard Keynes. he argued that money should be invested in the working class. spending would then increase with new money in circulation. as spending increased it was expected that business would expand to meet the new demand and hire new workers. this would bring on more spending and more growth. FDR supported this philosophy the opposite of this plan was the republican plan by Hoover, Coolidge and Harding-believed in supply side or "trickle down" economics- money was to be invested at the top, in business. then businesses would expand, hire new workers and this in turn would spur on spending and further economic growth.

6. Hoover

7. To be fair, Hoover and his admin did try to fix the Depression HOOVER RELIEF AND GOVERNMENT “MAKE WORK” CONSTRUCTION PROJECTS CONSTRUCTION OF THE HOOVER DAM IN NEVADA EMPLOYED THOUSANDS WHO NEEDED JOBS

8. THE BONUS MARCH MAY –JULY 1932 • The Bonus Army was a group of WW I veterans who had been denied early bonus payments for service in the war. they organized a protest march on DC in 1932. • 20,000 men set up a tent city, vowing to stay until they got their money. • fearing a communist plot, Hoover sent in the army (led by future generals of the army Douglas Macarthur and Dwight D. Eisenhower) to break up the peaceful demonstration. BONUS MARCHERS SET UP CAMP IN WASHINGTON D.C.

9. SOME BONUS MARCHERS BROUGHT THEIR FAMILIES

10. BONUS MARCHERS RALLY AT THE CAPITOL STEPS

11. PRESIDENT HOOVER SENT THE ARMY TO DISPERSE THE BONUS MARCHERS

12. one veteran and an infant were killed, 50 protestors and some police officers were injured. the marchers dispersed. there was another smaller march in the next year. President Hoover was widely criticized for his handling of the situation. shacks of the Bonus Army after they were forced out

13. The Election of 1932 • FDR defeated Hoover in a “landslide” victory 57% to 40% • FDR:“I pledge you-I pledge myself to a new deal for the American people” • People liked FDR’s warmth and energy, despite the fact he was paralyzed by polio

15. THE FDR INAUGURATION, MARCH 4, 1933 SEVERAL WEEKS BEFORE HE HAD NARROWLY ESCAPED AN ASSASSINATION ATTEMPT WHERE THE MAYOR OF CHICAGO WAS KILLED

16. So long, sad times;Go 'long, bad times!We are rid of you at last.Howdy, gay times!Cloudy gray times, You are now a thing of the past.'Cause happy days are here again!The skies above are clear again.Let us sing a song of cheer againHappy days are hear again!Altogether shout it now!There's no one who can doubt it now,So let's tell the world about it nowHappy days are here again!Your cares and troubles are gone;There'll be no more from now on.Happy days are here again,The skies above are clear again;Happy days are here again! They used to tell me I was building a dream,And so I followed the mobWhen there as earth to plough or guns to bearI was always there right on the job.The used to tell me I was building a dreamWith peace and glory aheadWhy should I be standing in line just waiting for bread?Once I built a railroad, made it run,Made it race against time.Once I build a railroad, Now its doneBrother, can you spare a dime?Once I built a tower, to the sunBrick and rivet and lime,Once I built a tower,Now its doneBrother, can you spare a dime?Once in khaki suitesGee, we looked swellFull of that Yankee Doodle-de-dum.Half a million boots went sloggin' thru Hell,I was the kid with the drum.Say, don't you remember, they called me AlIt was Al all the timeSay, don't you remember I'm your Pal!Buddy, can you spare a dime? DEPRESSION ERA SONG LYRICS: BROTHER CAN YOU SPARE A DIME (L) AND HAPPY DAYS ARE HERE AGAIN (ABOVE)

17. The First 100 Days of the New Deal • “the only thing we have to fear is fear itself” • The first New Deal programs began in 1933

18. The First 100 Days (con’td) • The programs, quickly pushed through Congress, were established with 3 goals: 1. Relief for the needy by creating jobs 2. Economic Recovery- rebuild the economy 3. Reform intended to keep these problems from happening again

19. FDR’s Fireside Chats • FDR addressed the nation by radio to help Americans understand the programs • Reassured people that it was safer to keep their money in reopened banks rather than stuffed under a mattress

20. FDR’s Fireside Chats • March 9th the first things FDR got Congress to do during his First 100 days was to declare a Bank Holiday which closed banks for 3 days-weak ones stay closed, the rest re-opened w/ government support

21. FDR USED THE RADIO GIVING “FIRESIDE CHATS” TO EXPLAIN HIS PROGRAMS TO THE AMERICAN PEOPLE

22. Major New Deal Programs The First 100 Days

23. Men laboring under the 1. WPA (Works Progress Administration)

24. Construction of the DuPont Highway-Rt. 13 during the New Deal

25. PUBLIC WORKS ADMINISTRATION PROJECT, U.S. ARMY CORPS OF ENGINEERS, BONNEVILLE POWER DAM IN OREGON UNDER CONSTRUCTION COMPLETED

26. 2. AAA: AGRICULTURAL ADJUSTMENT ACT-rescued the farming industry • FARM CREDIT ADMINISTRATION LOANED $100 MILLION TO FARMERS IN ITS FIRST SEVEN MONTHS. • WHEAT AND CORN FARMERS WERE PAID NOT TO PLANT • HOGS WERE KILLED TO RAISE PORK PRICES FOR FARMERS. THE AAA PAID FARMERS TO KILL 5 MILLION BABY PIGS AND 200,000 SOWS. • THE RESULTS OF AAA INTERVENTIONS WERE THAT BY 1936 FARM INCOME WAS UP 50%, SURPLUSES REDUCED AND PRICES ROSE.

27. 3. CCC: CIVILIAN CONSERVATION CORPS CREATED JOBS IN A SEMI-MILITARY MANNER FOR YOUTH 18-25 FROM FAMILIES RECEIVING RELIEF. OVER 2 MILLION YOUNG PEOPLE WERE ENROLLED BY 1941. THEY WERE PAID $30 A MONTH WITH A PORTION BEING SENT TO THEIR FAMILIES.

28. 4. FEDERAL EMERGENCY RELIEF ADMINISTRATION (FERA) THIS GAVE EMERGENCY CHECKS DIRECTLY TO UNEMPLOYED PERSONS TO SURVIVE THE WINTER. IT GAVE MATCHING GRANTS TO STATES TO BOLSTER LOCAL RELIEF EFFORTS AND IT SET UP CAMPS FOR UNEMPLOYED WOMEN. CAMPS FOR UNEMPLOYED WOMEN IN MAINE  UNEMPLOYED WOMEN'S CAMP

29. LEFT: WPA, BLIND CHILDREN AT WORK IN AN ART CENTER WORKSHOP IN SALEM, OREGON  BELOW: WPA ART MUSEUM IN NEW MEXICO BELOW LEFT: CHINESE STUDENTS IN WPA PRESCHOOL IN SAN FRANCISCO

30. 5. BANKING AND STOCK MARKET REGULATIONS • FDIC: FEDERAL DEPOSIT INSURANCE CORPORATION GUARANTEED INDIVIDUAL DEPOSITS. THIS STABILIZED THE BANKING SYSTEM AND PEOPLE BEGAN PUTTING THEIR MONEY IN BANKS AGAIN. • THE SECURITIES ACT: PASSED IN 1933 AND THE SECURITIES AND EXCHANGE COMMISSION (SEC) PASSED IN 1934 IMPLEMENTED CHANGES THAT CURBED ABUSES IN THE STOCK MARKET.

31. 6. SOCIAL SECURITY ACT 1935 • A SYSTEM OF OLD AGE PENSIONS HAD BEEN ONE OF THE GOALS OF THE PROGRESSIVE MOVEMENT. FDR MADE THIS GOAL A REALITY WITH THE PASSAGE OF THE SOCIAL SECURITY ACT IN 1935. THE ACT CONTAINED SEVERAL PROVISIONS: • UNEMPLOYMENT COMPENSATION FOR LAID OFF WORKERS • COMPENSATION TO DISABLED WORKERS • PAYMENTS TO THE WIVES AND CHILDREN OF DECEASED WORKERS • OLD AGE INSURANCE, OFTEN CONSIDERED THE MOST IMPORTANT FEATURE OF THE ACT

33. SOCIAL SECURITY CREATED MASSIVE AND COMPLEX BOOKKEEPING JOBS FOR FEDERAL AND STATE EMPLOYEES

34. 7. RURAL ELECTRIFICATION ADMINISTRATION (REA) 1935 THE REA MADE LOANS TO RURAL FARM COMMUNITIES THAT WANTED TO BUILD PUBLIC ELECTRICAL UTILITIES. IN 1935 90% OF FARMS DID NOT HAVE ELECTRICITY. BY 1941, THANKS TO THE REA 40% HAD ELECTRICAL POWER.

35. 8. TVA: TENNESSEE VALLEY AUTHORITY TVA TODAY

36. NEBRASKA SENATOR GEORGE W. NORRIS WHOSE IDEA FOR A DEVELOPMENT PROJECT IN THE WHOLE TENNESSEE VALLEY WAS ADOPTED BY FDR. THE TVA WAS A GREAT SUCCESS, BRINGING CHEAP ELECTRIC POWER, CONTROLLING FLOODS, REPLANTING FORESTS AND ENCOURAGING INDUSTRY TO COME TO THE VALLEY. THE TVA IS STILL THE NUMBER #1 PRODUCER OF ELECTRICITY IN THE U.S.

37. THE NEW DEAL COMES UNDER ATTACK FROM BOTH THE LEFT AND RIGHT “IT SEEMS CLEAR THE HONEYMOON IS OVER” (HARLAN STONE, SUPREME COURT JUSTICE COMMENTING ON THE GROWING OPPOSITION TO THE NEW DEAL) LEFTRIGHT LIBERALCONSERVATIVE Those who wanted the government to do even more to end the depression by intervening in the economy New Deal-not Socialistic enough Those who wanted the government to stay out of the economy and let the depression cure itself New Deal-too socialistic POLITICAL SPECTRUM

38. Critics of the New Deal-Went Too Far • Violated the Constitution-federal government too much control • The rich and business leaders felt it over-regulated the economy, restricted free enterprise • Some thought FDR was trying to become a dictator-too much power

39. Critics of the New Deal-Not Far Enough 1. Father Charles Coughlin • Priest from Detroit • “Pagan Deal” • Wanted monetary inflation and nationalization of the banking industry • Radio audience of 30 million

40. Critics of the New Deal-Not Far Enough 2. Dr. Francis Townsend • California • Wanted FDR to do more to assist the elderly • Age 60 and over should get a pension ($200 a month) • “holy cause”-Townsend Clubs • 10 million followers • Influenced the passage of Social Security Act

41. Critic of the New Deal-Not Far Enough- 3. HUEY LONG “EVERY MAN A KING” HUEY WAS GOVERNOR AND LATER A SENATOR FROM LOUISIANA. AS GOVERNOR HE INTRODUCED MANY REFORMS BUT WAS ACCUSED OF ACTING LIKE A DICTATOR.

42. HUEY LONG’SSHARE OUR WEALTH PROGRAM HE WANTED THE FEDERAL GOVERNMENT TO CONFISCATE VIA 100% TAX ALL INCOMES OVER $1 MILLION DOLLARS ($16 MILLION IN 2014 DOLLARS) AND USE THE MONEY TO GIVE EACH FAMILY A HOME AND AN INCOME OF $2500 ($40,000 IN 2014 DOLLARS) A YEAR ALONG WITH A CAR, HOME, RADIOAND FREE COLLEGE EDUCATION FOR EVERY KID. HIS PROGRAM WAS EXTREMELY POPULAR AND HE DECLARED HIMSELF A CANDIDATE FOR PRESIDENT FOR THE 1936 ELECTION. HE WAS ASSASINATED IN SEPTEMBER OF 1935 AND HIS MOVEMENT COLLAPSED. During an argument, Long shouted down everyone by yelling, "Shut up, you sons of b----s, shut up! This is the Kingfish talking!”.

43. ELECTION OF 1936-FDR RE-ELECTED

44. Impact and Legacy of the New Deal

45. 1. FDR and the Supreme Court • The Supreme Court declared some programs unconstitutional • FDR hoped by increasing the # of justices from 9 to 15 he would be able to pick judges who would favor the New Deal programs- “court packing”- he was unsuccessful

46. IN EARLY 1937 ROOSEVELT PROPOSED A JUDICIARY “REORGANIZATION” BILL TO CONGRESS. THIS MANY CONSERVATIVES SAW HIS “COURT PACKING SCHEME” AS PROOF THAT FDR WANTED TO BE A DICTATOR. ROOSEVELT’S SUPPORTERS BELIEVED THAT THE COURT HAD TO BE MODIFIED SO THE NEW DEAL COULD MOVE AHEAD IN BRINGING THE NATION OUT OF THE GREAT DEPRESSION.

48. CARTOONS WARNING OF THE DANGERS OF “COURT PACKING”

49. Other Impacts of the New Deal 2. Role of government increased dramatically-more involved in the economy 3. Banks rescued-the FDIC 4. Rate of unemployment dropped-more jobs 5. Less Business Failures

50. Other Impacts of the New Deal (con) 6. Social Security programs still around today, but in future pensions in danger. 7. Federal Debt (deficit) increased due to increased government spending