FDRFDRFDRFDRFranklin Delano Roosevelt Franklin Delano Roosevelt

and the New Dealand the New Deal

Before he was Before he was elected president in elected president in 1932, Franklin 1932, Franklin Roosevelt had at one Roosevelt had at one time been nominated time been nominated for vice-president, an for vice-president, an assistant secretary of assistant secretary of the navy and the the navy and the governor of New governor of New York.York.

The Election of 1932The Election of 1932The Election of 1932The Election of 1932

In 1932 Franklin Roosevelt In 1932 Franklin Roosevelt campaigned on the promise that campaigned on the promise that as president he would attack the as president he would attack the Great Depression by giving a Great Depression by giving a “New Deal” for the American “New Deal” for the American people. people.

The 1932 Democratic The 1932 Democratic party platform called for:party platform called for:

repealing prohibition.repealing prohibition. experimenting with bold new experimenting with bold new

programs for social and programs for social and economic reforms .economic reforms .

Balancing the national budget.Balancing the national budget.

The New Deal would cause the The New Deal would cause the National Debt to increase National Debt to increase dramatically in the 1930’s.dramatically in the 1930’s.

One striking feature of the 1932 One striking feature of the 1932 presidential election was that presidential election was that African Americans became a African Americans became a vital element in the Democratic vital element in the Democratic party.party.

Roosevelt WinsRoosevelt Wins

Roosevelt = 22,809,638 votes Roosevelt = 22,809,638 votes (472 electoral votes) (472 electoral votes)

Hoover = 15,758,901 votes (59 Hoover = 15,758,901 votes (59 electoral votes)electoral votes)

The Lame DuckThe Lame Duck While Franklin While Franklin

Roosevelt waited to Roosevelt waited to assume the presidency, assume the presidency, Herbert Hoover tried to Herbert Hoover tried to bind his successor to bind his successor to an anti-inflationary an anti-inflationary policy that would make policy that would make much of the New Deal much of the New Deal impossible.impossible.

Hooverites later Hooverites later blamed blamed Roosevelt’s Roosevelt’s inactivity for inactivity for making the making the Depression worse. Depression worse.

““Happy Happy days are days are here here again…”again…”

FDR and the New DealFDR and the New DealFDR and the New DealFDR and the New Deal

The Hundred DaysThe Hundred Days

Franklin Roosevelt showed great Franklin Roosevelt showed great decisiveness and a disposition decisiveness and a disposition prone to act on intuition.prone to act on intuition.

The most pressing problem The most pressing problem facing Roosevelt was the facing Roosevelt was the banking system followed by the banking system followed by the chaotic currency situation. chaotic currency situation.

In his first act as president In his first act as president Roosevelt declares banking Roosevelt declares banking holiday - holiday -

March 6-10 all banks closed.March 6-10 all banks closed.

FDR summons an FDR summons an emergency session of emergency session of Congress Congress

FDR summons an FDR summons an emergency session of emergency session of Congress Congress

The Hundred Days.The Hundred Days. (March 9 - June 16) (March 9 - June 16)

Giving the president Giving the president unprecedented support Congress unprecedented support Congress passes an enormous amount of passes an enormous amount of remedial legislation - remedial legislation -

The Hundred Days = legislation The Hundred Days = legislation passed in the first hundred days. passed in the first hundred days.

Based on the Three R’sBased on the Three R’s

The Three “R’s”The Three “R’s”

Relief Relief RecoveryRecovery ReformReform

Progressive IdealsProgressive Ideals

Legislation Legislation came from the came from the sidetracked sidetracked ideals of pre-ideals of pre-war war Progressivism Progressivism such as: such as:

Unemployment Insurance, Old-Unemployment Insurance, Old-Age Insurance, Minimum Age Insurance, Minimum Wage, Wage,

ConservationConservation

Arthur Rothstein's "Fleeing a Dust Arthur Rothstein's "Fleeing a Dust Storm"Storm"

Development of Natural Development of Natural Resources, Child Labor Resources, Child Labor restrictions and other Social restrictions and other Social Welfare reforms.Welfare reforms.

Banking ReformsBanking Reforms

Emergency Banking Relief Act Emergency Banking Relief Act passed the first day of the passed the first day of the

special session. special session. Gave FDR broad powers to Gave FDR broad powers to

reform and reopen closed banks.reform and reopen closed banks.

FDR gave a “Fireside Chat” over FDR gave a “Fireside Chat” over radio to reassure the people it was radio to reassure the people it was safe to put their money back in the safe to put their money back in the banks.banks.

Glass-Steagle Banking Reform Glass-Steagle Banking Reform Act (June 16) - created the Act (June 16) - created the Federal Depositors Insurance Federal Depositors Insurance Corporation (FDIC) insured Corporation (FDIC) insured depositors up to $5,000 depositors up to $5,000

(now raised to $100,000). (now raised to $100,000).

FDR ordered all gold to be FDR ordered all gold to be surrendered for paper currency surrendered for paper currency and took the US off the gold and took the US off the gold standard. standard.

Congress canceled gold-payment Congress canceled gold-payment clause of all contracts.clause of all contracts.

Federal Securities Act (truth in Federal Securities Act (truth in securities act) required stock securities act) required stock promoters to give realistic promoters to give realistic appraisal of stock value.appraisal of stock value.

UnemploymentUnemployment Unemployment Relief Unemployment Relief

Act created the Act created the Civilian Conservation Civilian Conservation Corp (CCC) to hire Corp (CCC) to hire young men to work in young men to work in government camps government camps fighting fires and fighting fires and building flood control building flood control projects.projects.

Federal Federal Emergency Relief Emergency Relief Act - created the Act - created the Federal Federal Emergency Relief Emergency Relief Administration Administration run by Harry run by Harry Hopkins - gave $3 Hopkins - gave $3 billion to states billion to states for welfare to the for welfare to the unemployed. unemployed.

FarmersFarmers

First Agricultural Adjustment First Agricultural Adjustment Act - created the Agricultural Act - created the Agricultural Adjustment Administration Adjustment Administration (AAA) (AAA)

paid for by taxing processors of paid for by taxing processors of farm goods.farm goods.

gave subsidies gave subsidies to farmers who to farmers who curtailed curtailed production or production or destroyed excess destroyed excess produce or produce or livestock. livestock.

Created “parity” prices to create Created “parity” prices to create real value of produce before the real value of produce before the war. war.

The program put The program put many small many small farmers out of farmers out of work and was work and was eventually ruled eventually ruled unconstitutional.unconstitutional.

HomeownersHomeowners

Home Owner’s Refinancing Act Home Owner’s Refinancing Act - created the Home Owner’s - created the Home Owner’s Loan Corporation to help Loan Corporation to help refinance non-farm homes. refinance non-farm homes. Lasting until 1936 it refinanced Lasting until 1936 it refinanced over 1 million homes.over 1 million homes.

Conservation of Natural Conservation of Natural ResourcesResources

The CCC was used to reforest The CCC was used to reforest and control erosion in the and control erosion in the National Forests.National Forests.

The Tennessee Valley AuthorityThe Tennessee Valley Authority

The TVA The TVA created a created a massive flood massive flood control project control project on the on the Tennessee Tennessee River.River.

created erosion - abatement, created erosion - abatement, navigational aids and navigational aids and hydroelectric generation dams on hydroelectric generation dams on the Tennessee River. the Tennessee River.

Brought full employment to the Brought full employment to the region.region.

TVA was criticized for being TVA was criticized for being “Creeping Socialism” by “Creeping Socialism” by competing with private industry competing with private industry by selling electricity. by selling electricity.

TVA was considered to be the TVA was considered to be the most radical of the New Deal most radical of the New Deal programs. programs.

“ “Brother can Brother can you spare a you spare a dime……”dime……”

Industrial Recovery and Labor Industrial Recovery and Labor Reform.Reform.Industrial Recovery and Labor Industrial Recovery and Labor Reform.Reform.

National Industrial Recovery ActNational Industrial Recovery Act

National Recovery National Recovery Administration (NRA) Administration (NRA) - created standards of - created standards of “fair competition” - “fair competition” - minimum wage floors minimum wage floors and maximum hours and maximum hours ceilings established. ceilings established.

Labor received the right to Labor received the right to organize and collectively organize and collectively bargain. bargain.

““Yellow Dog” contracts Yellow Dog” contracts outlawed and restriction put on outlawed and restriction put on child labor.child labor.

The complexity The complexity of the program of the program made it made it unpopular.unpopular.

NRA businesses NRA businesses displayed the displayed the Blue Eagle. Blue Eagle.

Law would later be ruled Law would later be ruled unconstitutional in unconstitutional in Schechter v. Schechter v. N.YN.Y. .

The Schechter “sick chicken” The Schechter “sick chicken” case will lead to Roosevelt’s case will lead to Roosevelt’s court packing scheme.. court packing scheme..

Public Works Administration (PWA) - Public Works Administration (PWA) - created massive public works projects created massive public works projects including the Grand Coulee Dam. including the Grand Coulee Dam.

The Beer and Wine Revenue Act The Beer and Wine Revenue Act - allowed the manufacture and - allowed the manufacture and sale of 3.2% beer and wine and sale of 3.2% beer and wine and put tax on its production. put tax on its production.

The 21st The 21st Amendment Amendment (passed later in (passed later in 1933) would 1933) would repeal repeal prohibition.prohibition.

Roosevelt’s New DealersRoosevelt’s New DealersRoosevelt’s New DealersRoosevelt’s New Dealers

Harry HopkinsHarry Hopkins frontman for the New frontman for the New

Deal and Roosevelt’s Deal and Roosevelt’s “administrator of relief” “administrator of relief” - ran the Civil Works - ran the Civil Works Administration, Federal Administration, Federal Emergency Relief Emergency Relief Administration and Administration and Works Progress Works Progress Administration.Administration.

Brain Trust -- college Brain Trust -- college professors and intellectuals professors and intellectuals who authored much of the who authored much of the New Deal legislation.New Deal legislation.

Eleanor Eleanor Roosevelt -- Roosevelt -- champion of the champion of the dispossessed - dispossessed - the poor and the poor and minorities. minorities.

Harold Ickes -- Secretary of Harold Ickes -- Secretary of the Interior and head of the the Interior and head of the Public Works Public Works Administration.Administration.

George W. Norris -- Senator George W. Norris -- Senator from Nebraska - led the fight from Nebraska - led the fight to create the TVA.to create the TVA.

Francis Perkins Francis Perkins -- FDR’s -- FDR’s Secretary of Secretary of Labor and first Labor and first woman cabinet woman cabinet member.member.

Anti - New DealersAnti - New DealersAnti - New DealersAnti - New Dealers

Father Coughlin Father Coughlin Catholic priest whose Catholic priest whose

radio broadcasts on radio broadcasts on “Social Justice” “Social Justice” denounced the New denounced the New Deal as Marxist and Deal as Marxist and attacked Jews for attacked Jews for causing the depression. causing the depression.

His rabid fascism led His rabid fascism led to his ultimate censure to his ultimate censure by the Church.by the Church.

Huey “Kingfish” LongHuey “Kingfish” Long

Demagogic Demagogic Governor of Governor of Louisiana whose Louisiana whose popularity led popularity led many to fear his many to fear his becoming a becoming a dictator,dictator,

He promised his followers to He promised his followers to make “Every Man a King” and make “Every Man a King” and to Share Our Wealth” to Share Our Wealth”

He was assassinated in 1935.He was assassinated in 1935.

Dr. Francis TownsendDr. Francis Townsend

Promised the elderly they would Promised the elderly they would receive a $200 a month pension. receive a $200 a month pension.

Major Legislation of the later Major Legislation of the later New Deal New Deal Securities and Exchange Securities and Exchange

Commission -- created to regulate Commission -- created to regulate exchanges and transactions exchanges and transactions involving securities - involving securities -

first chairman is Joseph Kennedy. first chairman is Joseph Kennedy.

National Housing Act -- created National Housing Act -- created the Federal Housing the Federal Housing Administration which gave loans Administration which gave loans to home buyers and home to home buyers and home owners.owners.

United States Housing Authority United States Housing Authority -- gave loans for low income -- gave loans for low income housing - condemned by housing - condemned by conservatives and landlords.conservatives and landlords.

Reciprocal Trade Agreements -- Reciprocal Trade Agreements -- allows the president to negotiate allows the president to negotiate trade agreements without the trade agreements without the consent of Congress.consent of Congress.

Works Progress Works Progress Administration Administration

run by Harry run by Harry Hopkins - Hopkins -

created to quiet created to quiet the protests of the protests of Long and Long and TownsendTownsend

the WPA the WPA becomes the becomes the best known and best known and most popular of most popular of the New Deal the New Deal programs - programs -

Wagner National Labor Wagner National Labor Relations Act - Relations Act -

creates the Labor Relations creates the Labor Relations Board Board

known as the Wagner Act.known as the Wagner Act.

legitimizes labor unions and legitimizes labor unions and labor rights labor rights

proved most beneficial to proved most beneficial to unskilled labor. unskilled labor.

The Wagner Act was passed The Wagner Act was passed when the Supreme Court found when the Supreme Court found the NRA unconstitutional the NRA unconstitutional

The Wagner Act was declared The Wagner Act was declared constitutional in 1937. constitutional in 1937.

The CIO The CIO

John L. Lewis of the United John L. Lewis of the United Mine Workers formed the CIO - Mine Workers formed the CIO - Committee for Industrial Committee for Industrial Organization. Organization.

The CIO reorganized in 1936 The CIO reorganized in 1936 independent of the AF of L as independent of the AF of L as the Congress of Industrial the Congress of Industrial Organizations.Organizations.

The CIO organized the Flint, The CIO organized the Flint, Michigan sit-down strike of Michigan sit-down strike of 1936. 1936.

More Legislation of the More Legislation of the Second New DealSecond New DealMore Legislation of the More Legislation of the Second New DealSecond New Deal

The Social Security Act - The Social Security Act -

creates the Social Security creates the Social Security System to guarantee pension for System to guarantee pension for elderly over 65 elderly over 65

Paid by a tax on employees and Paid by a tax on employees and employers. Also cared for blind employers. Also cared for blind and disabled. and disabled.

Public Utility Holding Public Utility Holding Company ActCompany Act

Passed in answer to the collapse Passed in answer to the collapse of Samuel Insull’s multibillion-of Samuel Insull’s multibillion-dollar financial empire, dollar financial empire,

it outlawed pyramid holding it outlawed pyramid holding companies.companies.

Soil Conservation Act - Soil Conservation Act -

created land banking to allow created land banking to allow land to lay fallow or to plant soil land to lay fallow or to plant soil binding plants like soybeans.binding plants like soybeans.

2nd Agricultural 2nd Agricultural Adjustment Act - Adjustment Act -

Changed the AAA to correct Changed the AAA to correct problems found unconstitutional problems found unconstitutional such as regulatory taxationsuch as regulatory taxation

The second AAA continued the The second AAA continued the program of conservation program of conservation payments and restriction of payments and restriction of production.production.

The 1936 ElectionThe 1936 Election

Democrats re-nominate FDRDemocrats re-nominate FDR

Republicans turn to the mildly Republicans turn to the mildly liberal governor of Kansas - liberal governor of Kansas - Alfred M. LandonAlfred M. Landon

Called the “poor man’s Hoover” Called the “poor man’s Hoover” by Democratsby Democrats

Wealthy Democrats and Wealthy Democrats and conservative Republicans conservative Republicans formed the American Liberty formed the American Liberty League to fight the creeping League to fight the creeping socialism of the New Deal. socialism of the New Deal.

Roosevelt wins in a landslide Roosevelt wins in a landslide 523 to 8 electoral votes.523 to 8 electoral votes.

Democrats took 2/3rds of both Democrats took 2/3rds of both the houses of Congress.the houses of Congress.

Franklin Roosevelt's reelection in Franklin Roosevelt's reelection in 1936 was assured by his strong 1936 was assured by his strong support from blacks and labor support from blacks and labor unionsunions

The 1936 election was made The 1936 election was made notable by the bitter class notable by the bitter class struggle between the poor and the struggle between the poor and the rich.rich.

Roosevelt’s election Roosevelt’s election the forged the the forged the modern Democratic modern Democratic voter base - poor, voter base - poor, middle-class, blacks, middle-class, blacks, immigrants, immigrants, southerners, urban southerners, urban workers, labor. workers, labor.

The Forgotten Man.The Forgotten Man.

The Second TermThe Second Term

Roosevelt takes the oath of Roosevelt takes the oath of office on January 20, 1937 - the office on January 20, 1937 - the “lame duck” 20th Amendment “lame duck” 20th Amendment has taken effect.has taken effect.

Claiming a mandate to Claiming a mandate to continue the New Deal - he continue the New Deal - he sets his sights on the one sets his sights on the one branch of government not in branch of government not in line with his policies: line with his policies:

The Supreme Court.The Supreme Court.

The Court Packing SchemeThe Court Packing Scheme

Seven out of nine decisions Seven out of nine decisions of the court had gone against of the court had gone against the New Deal.the New Deal.

The court was made up of The court was made up of old, ultra-conservative “Old old, ultra-conservative “Old Guard” appointees.Guard” appointees.

Roosevelt asks Congress to Roosevelt asks Congress to give him the right to appoint give him the right to appoint a new justice for every one a new justice for every one over 70 who refused to retire.over 70 who refused to retire.

This would “pack” the court This would “pack” the court with six new justices.with six new justices.

Congress refused to follow Congress refused to follow and passed only a lower and passed only a lower court reform.court reform.

The Chief Justice did begin The Chief Justice did begin voting with the more liberal voting with the more liberal justices.justices.

Roosevelt suffered his first Roosevelt suffered his first major defeat but eventually was major defeat but eventually was to seat nine Justices - more than to seat nine Justices - more than any president since Washington.any president since Washington.

The Roosevelt RecessionThe Roosevelt Recession

The economy having been slowly The economy having been slowly crawling out of the depression crawling out of the depression began to slow down in 1937.began to slow down in 1937.

The recession caused Congress to The recession caused Congress to balk on passing a government balk on passing a government reorganization bill.reorganization bill.

Congress was becoming more Congress was becoming more conservative over time.conservative over time.

The recession led to FDR The recession led to FDR adopting more “Keynesian” adopting more “Keynesian” deficit spending - economics.deficit spending - economics.

Many economists feel the Many economists feel the depression could have been depression could have been cured with even higher deficit cured with even higher deficit spending.spending.

The Hatch Act was passed in The Hatch Act was passed in 1939 - making it illegal for lower 1939 - making it illegal for lower level federal officials to level federal officials to campaign. campaign.

The The international international crises of 1938-crises of 1938-39 turned the 39 turned the countries countries attention to attention to world affairs. world affairs.