Franklin D. Roosevelt and the New Deal

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

The Dust Bowl

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

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Keynesian or "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.

FDR’S v. HOOVER’S PHILOSOPHY

Hoover

To be fair, Hoover and his admin did try to fix the

Depression

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HOOVER RELIEF AND GOVERNMENT “MAKE WORK” CONSTRUCTION PROJECTS

CONSTRUCTION OF THE HOOVER DAM IN NEVADA EMPLOYED THOUSANDS WHO NEEDED JOBS

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•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.

THE BONUS MARCHMAY –JULY 1932

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SOME BONUS MARCHERS BROUGHT THEIR FAMILIES

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BONUS MARCHERS RALLY AT THE CAPITOL STEPS

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PRESIDENT HOOVER SENT THE ARMY TO DISPERSE THE BONUS MARCHERS

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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

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

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THE FDR INAUGURATION, MARCH 4, 1933

SEVERAL WEEKS BEFORE HE HAD NARROWLY ESCAPED AN ASSASSINATION ATTEMPT WHERE

THE MAYOR OF CHICAGO WAS KILLED

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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?

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!

DEPRESSION ERA SONG LYRICS: BROTHER CAN YOU SPARE A DIME (L) AND HAPPY DAYS ARE HERE AGAIN (ABOVE)

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

The First 100 Days (con’td)• The programs, quickly

pushed through Congress, were established with 3 goals:1. Relief for the needy by creating jobs2. Economic Recovery- rebuild the economy3. Reform intended to keep these problems from happening again

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

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

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

Major New Deal Programs

The First 100 Days

Men laboring under the 1. WPA (Works Progress

Administration)

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

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PUBLIC WORKS ADMINISTRATION PROJECT, U.S. ARMY CORPS OF ENGINEERS, BONNEVILLE POWER

DAM IN OREGON

UNDER CONSTRUCTION COMPLETED

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.

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.

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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

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

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.

6. SOCIAL SECURITY ACT 1935A 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

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SOCIAL SECURITY CREATED MASSIVE AND COMPLEX BOOKKEEPING JOBS FOR FEDERAL

AND STATE EMPLOYEES

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.

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8. TVA: TENNESSEE VALLEY AUTHORITY

TVA TODAY

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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.

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)

LEFT RIGHT LIBERAL CONSERVATIVE

Those who wanted the government to do even

more to end the depression by intervening in the

economyNew 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

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

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

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

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.

HUEY LONG’S SHARE 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, RADIO AND 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!”.

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ELECTION OF 1936-FDR RE-ELECTED

Impact and Legacy of the New Deal

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

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IN EARLY 1937 ROOSEVELT PROPOSED A JUDICIARY “REORGANIZATION” BILL TO CONGRESS.

THISMANY 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.

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48CARTOONS WARNING OF THE DANGERS OF “COURT PACKING”

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 jobs5. Less Business Failures

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

Other Impacts of the New Deal (con)

8. The New Deal greatly helped, but in the end, WW II was most responsible for shifting the economy from just surviving to thriving