FDR & The New Deal

United States History

Franklin D. Roosevelt Political Career

o NY Senate, Assistant Sec of Navy under Wilson, NY Gov.

Personal Lifeo Battle with polioo Wife Eleanor active in politics

What America liked about him:o Energy and Optimismo Creation of Relief Aid to Unemployed in New Yorko Confidence he could improve economy

The New Deal Roosevelt’s policies for ending the Great

Depression

At Roosevelt’s Inaugurationo Most of the nations’ banks on holiday (closing

before bank runs would close them down)o 25% of Americans unemployed

“The only thing we have to fear is fear itself…This nation asks for action, and action now”

New Deal Beginnings The Hundred Days

o March 15, 1933 to June 16, 1933o Congress passed 15 majors acts to resolve

economic woes

Roosevelt favored government intervention in economy

Priority #1: Banking Systemo Emergency Banking Relief Acto Securities and Exchange Commission (SEC)o Federal Deposit Insurance Corporation

(FDIC)

New Deal (continued) FDR creates programs to help with debt

o Why? To give people the ability to spend in the economy and not worry as much about debts on mortgages, farms, etc.

o Home Owners’ Loan Corporationo Farm Credit Administration

Government Control in the Economy & Environmento Agricultural Adjustment Acto National Industrial Recovery Act

& The National Recovery Administrationo Tennessee Valley Authority

New Deal (continued) FDR believed consumption was key to

economic growth and unemployed needed a means to become consumerso Thus, he created programs to get people into

the workforce

Civilian Conservation Corps Federal Emergency Relief Administration Public Works Administration Civil Works Administration

Success of the New Deal

Did not restore prosperity in America, but did improve confidence in banks, saved homes/farms, helped combat unemployment

Americans embraced FDR’s willingness to experiment and change, which helped restore Americans’ faith in their government and nation overall

Critiquing the New Deal

Government Programs Cost $$$o How to pay? Deficit Spending

Criticism about hurting business and states’ rightso Creation of American Liberty League to teach necessity of

respect for rights of person and property

Challenges to the New Dealo Huey Long: Louisiana governor championing downtrodden

(Share Our Wealth)o Father Coughlin: Nationalize banking and inflate the

currency (National Union for Social Justice)o Francis Townsend: Pensions with stipulations on spending to

stimulate economic growth and get more people in the workforce

Second New Deal

Works Progress Administration

Wagner Act and National Labor Relations Boardo Binding Arbitration: Neutral

Party hears arguments and decides on the issues

o CIO (Committee for Industrial Organization) formed in 1935

o Sit-down strike: Stop working inside plant to prevent replacement workers from taking jobs

Social Security Act

Political Change under FDR

African Americans join Democratic Partyo Eleanor Roosevelt & Policies of FDR help fuel

switcho African Americans in administrative

positions

Women join New Deal Coalitiono Frances Perkins: first woman in Cabinet post

(Secretary of Labor)o Appointed many other women to federal

posts

Role of Supreme Courto Court rulings striking down parts of New

Deal piece by pieceo “Court-packing plan”

Recession of 1937 Recovery on track with output approaching

1929 levels, unemployment improving…belief worst is overo FDR decides it is time to balance budget and

cuts some programs like the PWA and WPAo By end of 1937, 2 million people out of work

What to do now?o Morgenthau: Balance budget and cut spendingo Keynesianism: Spend heavily in a recession to

jumpstart economy

Last Hurrah of the New Deal

National Housing Act

Farm Security Administration

Fair Labor Standards Act

By 1939, New Deal had come to an end with Congressional takeover by opponents of New Deal

Recapping the New Deal

Limited successo Unemployment still

higho Recovery not

complete

Sense of Securityo Bankso Businesso Individuals

Greater Role in Economyo Mediation between

groups (broker state)

o “Safety Net” against economic disaster

Criticso Dependency on

Governmento Government too

powerful