The Great DepressionFDR’s “New Deal”

Franklin Delano Roosevelt (FDR)

Eleanor Roosevelt *A woman is like a tea bag- you never know how strong she is until she gets in hot water.

Eleanor Roosevelt - US diplomat & reformer (1884 - 1962)

*Great minds discuss ideas; Average minds discuss events; Small minds discuss people.

•List 5 factors that of the Depression that threatened people and their families in the Great Depression

•List 5 factors that threaten people and their families today.

We have nothing to fear but fear itself.

We have nothing to fear but fear itself.

Brain TrustColumbia University

The Brain Trust, as President Roosevelt's advisors, met with him at his home in New York state throughout the spring and summer of 1932 to come up with a solution for the Depression that was ravaging the country. Moley, Tugwell and Berle all had different ideas of how to correct the Depression but all agreed on one thing: organized intelligence would restore the United States. They wanted to modify and survey the United States' laissez-faire economy by advocating government and big business cooperation and beginning public works projects and state and federal funded relief programs to help deter any future economic downturns.

http://www-rohan.sdsu.edu/~belier/brain_trust.htm

Why FDR in 1932?

1. Black voters shift from Republican to Democrat2. Ruined Republicans

Last preinauguration lame duck period of 4 months

Reform, Recovery, ReliefFirst Hundred Days

•What if the Congress majority had been Republican?

Foundations of these reforms?

• Progressive Mov’t aims sidetracked by

•1. WWI

•2. Old Guard reaction of 1920

US behind European acceptance of social welfare

Banking Relief•Fireside Chats

March 5th 1933 is a Banking Holiday! All banks closed. Soothe fears.

Emergency Banking Relief ActGives treasury dep’t right to inspect banksIf sound, reopen at onceIf insolvent, remain closedNeed help? Loans givenRestored people’s faith in banks

FDR intentionally used “direct, simple, calm, language” to explain problems and his plans to solve them. He sensed that he would be most effective in communicating with the public if he “joined” citizens in their living rooms and kitchens for relaxed conversation. No president had ever made the effort to address his citizenry so directly and informally.

Banking Relief• Glass-Steagall Banking Reform Act - FDIC

• Taken off gold standard (managed currency); buy up gold to create inflation

critics: “baloney dollar”

Creating Jobs Primp the pump Civilian Conservation Corps

(CCC) money sent home. Federal Emergency Relief

Act/Agency under Harry L Hopkins. Civil Works Administration (CWA) critics: “boondoggling” Agriculutural Adjustment Act

(AAA) $ help farmers meet mortgage costs so don’t loose the farm. Parity prices -Raised food prices which gave farmers more money. critics: Paid to destroy food. Made many angry!

Home Owners’ Loan Coporation (HOLC) - refinance mortgages on homes not on farmland

IC - middle class people become

solidly supporting Democrats

Demagoguea person, esp. an orator or political leader, who gains power and popularity by arousing the emotions, passions, and prejudices of the people.a person, esp. an orator or political leader, who gains power and popularity by arousing the emotions, passions, and prejudices of the people.

a person, esp. an orator or political leader, who gains power and popularity by arousing the emotions, passions, and prejudices of the people.

Father Charles Coughlin“Social Justice”

Hate Radio

Dr. Francis E Townsendof California

“Senior Citizens”

Demagoguea person, esp. an orator or political leader, who gains power and popularity by arousing the emotions, passions, and prejudices of the people.a person, esp. an orator or political leader, who gains power and popularity by arousing the emotions, passions, and prejudices of the people.

a person, esp. an orator or political leader, who gains power and popularity by arousing the emotions, passions, and of the people.

Senator Huey P. (“Kingfish”) Long of LouisianaShare Our WealthEvery Man a King

a critic of the Federal Reserve System NRA meant “Nuts Running America”

“the gutsiest, goriest, loudest and lustiest,

the deadliest and damndest orator ever heard on this or any

other earth, the champion boob-bumper

of all time.” (assassinated 1935)

Critics, Crackpots, and Reactions

•Because of all the reaction to FDR’s New Deal proposals...the Works Progress Administration (WPA) 1935 was created. Useful employment; infrastructure work; work for high school students; arts

•IC: Talent nourished, self respect preserved, 1st time fed. gov’t directly and heavily supported the arts

The way ofJefferson, Madison,& Lincoln

The way of Jefferson,Madison, and Lincoln

Radical shortcut

LaborNRA - blue eagles. he NRA sought to use government power to restrain competition and end the downward cycle of wage cuts and price reductions, without abolishing the free market. The administration asked businesses, labor, and consumers to help write new codes for hour limits, minimum wages, and production standards. To encourage voluntary adoption of these new codes, participating businesses were allowed to display a blue eagle logo, and consumers were urged to spend money only where the symbol was displayedN.

Supreme Court declareded the National Industrial Recovery Act (NRA - blue eagles) unconstitutional

Helping Industry and Labor•National Industrial Recovery Act (NIRA) later known as

• NRA

• developed codes for individual industries

• created National Recovery Administration – NRA – set pricesfor many products and established standards

• Fair practice codes jointly set by business reps, workers, & consumers

•Workers given right to unionize

•Critics: Many businesses critical of NIRA

Helping Industry and Labor•National Industrial Recovery Act (NIRA) later known as

• NRA

• Also Civil Works Administration – 4 million immediate jobs

• Critics: said it was “make work”

• CWA built 40,000 schools.

• Paid salaries of 50,000 rural teachers.•Built ½ millionmiles of road

Helping Industry and Labor

•NIRA act authorized the Public Works Administration (PWA) - meant for industrial recovery and unemployment relief

•Grand Coulee Dam in Colorado

•Repeal Prohibition - 21st Amendment

The New Deal Affects Many

GroupsLabor Disputes– John L. Lewis (UMW) & David

Dubinsky ( ILGW) team up to organize industrial unions

*formed Committee for Industrial Organizations Unskilled & semi-skilled workers

got auto & steel industries to recognize the unions

by ’38 – these unions were thrown out of AFL!!Committee changed its name & becomes Congress of

Industrial Organizations (CIO) AFL & CIO stayed separate until ’55

The New Deal Affects Many

GroupsLabor Disputes–One main tactic

of ‘30s – SIT-DOWN STRIKEDON’T WALK OFF THE JOB – sit

down in the plant, but do not work!* You can’t carry on working

w/strikebreakers if people are occupying the plant!

* Some opposed the sit-down as a violation of private property

It was very effective!

The New Deal Affects Many Groups

Labor Disputes– 1937, May 30: Memorial Day Incident, Strikers Killed at Republic Steel

10 people received fatal injuries when city police dispersed a large group of striking steel workers and their sympathizers who were marching in the direction of the plant of the Republic Steel Corporation near Burley Avenue and One Hundred and Sixteenth Street in that city.

This encounter occurred 4 days after the outbreak of a strike of union employees of the corporation and while picketing was in progress in front of the plant.

In addition to the fatalities, none of which was suffered by the police, approximately 90 members of the group were injured (30 by gunfire) and 35 police sustained injury

Helping Industry and Labor

• Supreme Court declares NIRA unconstitutional NIRA wrong b/c it gives legislative powers to the executive branch which is unconstitutional & it gives fed gov’t power to enforce industry codes in states – this goes beyond Federal rights to control interstate trade (Schechter “sick chicken” decision)

Supreme Court strikes down AAA – agriculture is local matter and should be regulated by states not federal gov’t

FDR’s reaction: reorganize federal court system!Critics call this court packing! – violation of separation of powersDidn’t pass Congress but all ok because lots of judges retiredFDR got to choose new judges – one’s who thought like him

Henry Ford “that damn Roosevelt buzard.”

Labor

NRA reintroduced as the National Labor Relations Act or the Wagner Act

• Strongly reasserted right of labor to self-organize and to bargain collectively•Estb. National Labor Relations Board• Then 1938 Congress passed the Fair Labor Standards Act (minimum wage)

Critics: bitterly opposed by industrialists and businessmen (especially in the southern textile industries).

The Fair Labor Standards Act did exclude agriculture, service industries, and domestic workers (i.e. blacks, Mexicans, women)

1887: Pres. Cleveland. Huge budget surplus. Cleveland vetoed bill to give $100,000 in relief for Texas farmers to buy seed during a severe drought. He said,

“Federal aid in such cases...encourages the expectation of paternal care on the part of the gov’t and weakens the sturdiness of our national character.”

By end of 1st 100 days people had benefited tremendously

To do all things FDR had to agree to deficit spending –

spending more $ than gov’t receives in revenue

Deficit spending as necessary evil

FDR’s New Deal did NOT end the Depression

Lots of critics of FDR said he spent too much money

Brain TrustBank Holiday 3/5/1933Federal Securities ActFireside Chat20th Amendment –move inauguration to Jan.

-CCC - Civilian Conservation Corp-AAA - Agricultural Adjustment Act-NRA - National Recovery Administration-Packing the Court