Download - FDR & The New Deal
FDR & The New Deal
Election of 1932
• Depression had been going on for 3-years.
• Millions are unemployed, hungry, and homeless.
• The Democrat, Franklin Delano Roosevelt of NY, easily defeats Hoover.
Election of 1932
Who was Franklin Delano Roosevelt?
• Know as—”FDR”
• Born to a very wealthy family in NY.
• Went to Groton, Harvard, & then Columbia Law School.
• Married his distant cousin—Eleanor.
• 5th Cousin of Teddy Roosevelt.
FDR’s Political Career
• Served in the NY state legislature.
• Assistant Sec. of the Navy under Wilson.
• Democratic VP candidate in 1920 (lost).
• 2-Time Governor of NY (1928-1932).
Polio
• In 1921, while vacationing at his family home in Campobello FDR contracts polio.
• He never walks again.
FDR as Pres.
• While running for President, FDR had pledged, “a new deal for the American people.”
• The New Deal became the name for FDR’s programs to end the depression.
• “We have nothing to fear, but fear itself.”
• Only US Pres. Elected 4-times.
The Hundred Days
• The first 3-months after FDR took office, he began a flurry of legislative action aimed at ending the Depression.
• This was called the Hundred Days.
• Immediate impact was minimal; but gave people hope.
The Banking Crisis
• Called for a “Bank Holiday” (closed all banks for 4-days)
• Then only “sound” banks could reopen.
• Others would remain closed until the govt. could develop a way to open them safely.
• Restores public’s confidence in banks again.
• By 1933 ½ of banks are open again.
The 3-R’s
• New Deal Programs were aimed at the 3-R’s:
– A. Relief for the unemployed.– B. Recovery measures to stimulate the
economy.– C. Reform laws to lessen the threat of
another economic disaster.
Reform Laws
• Truth-In-Securities Act —designed to eliminate fraud in the stock market.
• Creates the Securities & Exchange Commission (SEC) to regulate the stock exchange.
• The Glass-Steagall Banking Act —Prohibited banks from investing customers’ savings in the stock market.
– The Glass-Steagall Act also established the Federal Deposit Insurance Corporation (FDIC) Which insures bank deposits in all member banks.
Fireside Chats
• FDR’s regular radio addresses to the nation.
• Very charismatic with public and press.
The Brain Trust
• Brain Trust = Name given to FDR’s advisors.
• Many are college professors from Columbia.
FERA
• To help the unemployed, FDR asked congress to appropriate $500 million to a new agency—the Federal Emergency Relief Administration.
• Headed by Harry Hopkins.
• Gave temporary relief, but did not require work (the dole) and hurt people’s self respect.
• FDR and Hopkins wanted relief programs that would put people to work.
Civil Works Administration
• CWA
• Public works projects.
• 4 million to work
• Run by FERA
• Only for 5-months
Civilian Conservation Corp• CCC
• Put thousands of unemployed men to work on conservation projects.
• Young men 18 – 25.
• Workers built facilities in state and national parks.
• Workers lived in barracks and followed strict schedules (kind of like the army).
• Women were excluded.
• Minorities were limited and segregated.
Review• Describe FDR’s Background.
• FDR was the only pres. to do what?
• How did FDR deal with the banking crisis?
• Define: 100 Days New Deal
Fireside Chats
Brain Trust
CCC
FERA
Agricultural Adjustment Administration
• AAA
• Agency set up to help farmers.
• Paid farmers a subsidy to reduce production. This would cause prices to rise.
• Favored large farmers over small & led to eviction of many tenant farmers and sharecroppers.
• Supreme court rule unconstitutional in 1936. Said the govt. had no authority to tell farmers to limit production.
• New = Soil conservation and Domestic Allotment Act.
National Recovery Administration• Law = National Industrial Recovery Act (NIRA)
• Creates The NRA
• Organization that sought to increase the productivity of industry by relaxing antitrust laws.
• Sets codes-- production levels, prices, quality standards—for various industries.
• Establishes minimum wages and maximum hrs. workers can work.
Problems with NRA• Section 7(a) gave workers the right to form unions but couldn’t be
enforced.
• Codes written by largest businesses and tended to favor them.
• Prices raised artificially.
• Industrial production actually declines.
• Headed by Hugh Johnson
• Supreme Court rules is unconstitutional.
Schechter Bros. v. US
• Poultry biz. In Brooklyn. “Dead Chicken Case”
• Had violated NRA codes.
• Not involved in interstate commerce.• Supreme court ruled NRA was
unconstitutional because Pres. Had taken over legislative powers in drafting codes.
Public Works Administration• PWA
• Was created along with NRA under the national Industrial Recovery Act.
• Provided job for the unemployed to work on public projects.
• Built schools, dams, highways, govt. buildings, low income housing, etc.
• But limited (FDR not sold on deficit spending)
• Headed by Harold Ickes who was too exact and had trouble spending the $.
Tennessee Valley Authority
• TVA
• Built dams in the Tennessee valley to create electricity.
• Also created jobs and enriched the soil.
• But backwater flooded some farmers.
• Business leaders felt it was a socialist program & that it unfairly competed with private businesses.
Norris Dam
2nd New Deal
• 1935
• In response to criticism from left and right.
• More aggressive towards corporate interests and the wealthy.
• Raised taxes on wealthy.
• Wagner Act (National Labor Relations Act). Gives workers the right to form unions.
Social Security Act
• 1935, Social Security Act passed.
• Gave security (money) for the elderly.
• Also people with disabilities, the unemployed, and dependent children and their mothers.
• How Social Security Works:• Employees pay in throughout their careers• Workers got money back in the form of monthly
retirement checks.
Housing for the Poor
• United States Housing Authority (USHA).
• Spent $540 million building apartments for low income people.
National Youth Administration
• NYA
• Youth 16-24
• Provided job training and jobs
Works Progress Administration• WPA
• Big Building Projects—schools, airports, hospitals, playgrounds, etc. LARGER SCALE THAN CWA OR PWA.
• But also put unemployed teachers. Artists, writers, and actors to work.
• Wrote plays glorifying New Deal.
• Oral Histories and travel guides.
• Painted Murals.
WPA
Other banking stuff
• Emergency Banking Act—gives govt. greater control over banks.
• Govt. gives money to banks.