Franklin Delano RooseveltAnd the “New Deal”

Hoovers efforts for reform• Voluntary Action- Counted on business leaders to help and

maintain wages• By 1931 wages dropped.

• Agricultural Marketing Act- Designed to stabilize market prices.• Lost $150 million and failed to stabilize

• Spent money on roads and other public projects.• Began construction on Boulder Dam in 1930.• Reconstruction Finance Corporation (RFC)- Lent money to

banks and large industries like railroads and insurance

Hoover Cont.• Bonus Army- 20,000 jobless WWI veterans marched on

Washington.• Wanted pension bonus due in 1945.• House agreed and Senate refused.• Lived in shacks and set up “Hooverville.”• Hoover called in General Douglas Mac Arthur, Major Dwight D.

Eisenhower and Army to move them out.• Conflict was ugly as veterans fought their own military.

• 2 Shot• 1 Baby died• 1 Child blinded

Roosevelt vs. Hoover• Role of government• Hoover- Conservative• FDR- Liberal

Electoral College Results 1932

1932 Election Results• Popular Votes• 22,818,740 Roosevelt• 15,760,425 Hoover

• Electoral Votes• 472 Roosevelt• 59 Hoover

20th Amendment• Hoover lost the election in November 1932• FDR took office in March 1933• Hoover’s “lame duck” period of time triggered change.• Changed inauguration date to January 20th

Roosevelt (D)• 1920 caught Polio, spent rest of 20’s recovering at Warm

Springs, GA.• Harvard educated, NY State Senate, Ass. Sec. of Navy under

Wilson.• Governor of NY 1929-32• Established unemployment commission and relief

administration.• “I pledge myself to a new deal for the American people.” DNC

July 1932

“New Deal”• Americans had to give up their beliefs of “making it on their

own.” They turned to their government.• “So first of all let me assert my firm belief that the only thing

we have to fear… is fear itself.”• FDR’s inauguration 1933

“New Deal”• “Bold, persistent experimentation.”• People welcomed the “New Deal.”• First Hundred Days• Three Goals• Relief- Immediate action taken to halt financial deterioration.• Recovery- Temporary programs to restart the flow of consumer

demand.• Reform – Permanent programs to avoid another depression and

insure citizens against economic disasters.

FDR’s First moves• Bank Holidays• March 5th 1933- 4 days• Emergency Banking Act- inspect bank health

• FDIC• Federal Securities Act• Securities Exchange Commission• Took the American dollar off the gold standard

Second New Deal• More social programs• Stricter controls over business• Stronger support for unions• Higher taxes on the rich• Revenue act of 1935 (Wealth Tax) • Raised Taxes on those with incomes over $50,000 (Individuals

and Businesses)

2nd New Deal Cont.

• Wagner Act (National Labor Relations Board) Allowed for Collective Bargaining and closed shops.• Outlawed black listing and spying on Unions

• Social Security Act• Old age pensions and survivors benefits• Paid in while working then collect at age 65

• Unemployment insurance• Aid for dependant children, the blind and disabled.

• 1936 election won 523-8 in the Electoral College

Conflict of Ideas• Conservative vs. Liberal vs. Radical• Too Much…• Socialization of the nation• Penalizing the wealthy• Limiting freedom

• Not enough…• Upton Sinclair, Socialist on Dem. ticket in CA• Resurgence in Progressivism• Called for redistribution of wealth

New Deal Hits a Bump• Supreme Court strikes down two important programs• NIRA- Gave President law making powers and regulated local

commerce.• AAA- tax that funded farm aid.

• Critics claimed he still was not impacting the normal people.

Who were the Critics of the New Deal?• Demagogues-strategy for gaining political power by playing on

peoples fears or passions using rhetoric or propaganda.

• Women• Jobs went to men and boys• Often excluded from regulations

• African Americans• Southern Segregation continued.• Skilled jobs were not offered to blacks.• SSA Did not cover farm or domestic workers.• Last hired-first fired.• Failed Anti-lynching law in 1938.

Court-Packing• Suggested changing the number of justices from 9 to 15.• 1 new justice for every current justice over the age of 70.• Wanted to lighten the load for the aging justices…• …or swing the tide toward FDR’s favor.

Legacy of the New Deal• Strengthened unions and labor rights• Encouraged organization and cooperation

• American Federation of Labor• Congress of Industrial Organizations

• Era of Strikes• GM, FORD Steel Workers• Sit Down Strikes

Legacy of Culture• Literature, The Grapes of Wrath• Organized community symphonies• WPA • Assisted 6,000 artists• Federal Art Project, put artists to work in public buildings painting

murals and creating portraits.• Federal Theatre Project

Legacy Into Today• Public Works- FDIC, TVA, SEC • Farming- Planting according to the Federal Crop Allotment• SSA- Amendments helped farm workers, women and

dependants• #1 Answer- Restored a sense of HOPE to the American people.

Modern Day Critics• Believed his actions slowed the market.• Created “make work jobs” instead of free market jobs that

should naturally form.• Paying farmers not to plant, expensive and continues.• Deficit Spending • Spending > taxes

• Emergence into WWII stimulated the economy.