Roosevelt and the New Deal: Assessing the Impact on the United States after the Great Depression

1. Roosevelt and the New Deal Bread & Roses Integrated Arts High School Mr. Jones US History

2. Steps to the PPA: • We will use some of the steps we have learned to assess President Roosevelt’s New Deal Policies and their effects on the United States after the Great Depression. • For more info regarding the Public Policy Analyst steps click below: • Define the problem * • Gather evidence* • Identify causes* • Evaluate a policy* • Develop solutions • Select best solution • http://www2.maxwell.syr.edu/plegal/ppae/ppae1.html

3. Setting the Stage • 1929- Stock Market Crash • Thousands of banks collapse • Decline of production across all markets • 1933- 25% of America unemployed • Song of the Great Depression • “Brother Can You Spare a Dime” • But new hope with election of 1932 • Franklin Delano Roosevelt • “Happy Days Are Here Again”

4. HAPPY DAYS ARE HERE AGAIN- Roosevelt’s Presidential Campaign Song • So long sad timesGo long bad timesWe are rid of you at lastHowdy gay timesCloudy gray timesYou are now a thing of the pastHappy days are here againThe skies above are clear againSo let's sing a song of cheer againHappy days are here again • Altogether shout it nowThere's no oneWho can doubt it nowSo let's tell the world about it nowHappy days are here againYour cares and troubles are goneThere'll be no more from now onFrom now on ...Happy days are here againThe skies above are clear againSo, Let's sing a song of cheer againHappy timesHappy nightsHappy daysAre here again  

5. Big Question • Were the “Happy Days here again” with the New Deal ? • After reading the lyrics to “Happy Days Are Here Again,” in your notebooks, take a few minutes to answer the Big Question.

6. United States Great Depression(Unemployment)

7. 1932 ELECTION • 1 out of 4 was unemployed… • national income was 50% of what it had been in 1929 • Republicans nominated Hoover  no hope • Winner by a landslide = FRANKLIN DELANO ROOSEVELT (Democrat - N.Y. governor)

8. Franklin Roosevelt and the New Deal • FDR brought optimism to the country – spoke to the people- fireside chats • New Deal for the people • Creation of the modern government • Expanded federal government to greatest heights • A controversial expansion • Progressivism firmly entrenched in the Democratic Power • Myth- Hoover did nothing to spark New Deal • Truth- The RFC – Reconstruction Finance Corporation

9. Big Questions for the lesson • Was the New Deal an appropriate response to the Great Depression? • Did it go too far in expanding the federal government? • Was it effective? • How did life change for Americans through its policies? • What were its criticisms • Be sure to think about these questions as you analyze President Roosevelt’s New Deal Policies • Use the following worksheet to document your evaluation • Worksheet4: "Evaluating Existing Public Policies"(HTML)

10. But before we begin another terror of the Great Depression • The Dust Bowl

11. NEW DEAL CARTOON FDR's NEW DEAL Government programs which provided direct relief to suffering Americans through government spending It was a revolution in American society - changed completely the way the government functions ……… • Renew democracy • Restore confidence in the banking • Stimulate economy • Put people back to work. • Restore self confidence Social Engineers Brain Trust How?FDR’s 3 R’s • Relief:ease suffering of the needy • Recovery:begin economic growth • Reform:help prevent future economic crises

12. 100 DAYS 100 days • Rooseveltwas very successful getting New Deal legislation passed-100 days ….FDR and Congress went to work providing for direct relief, recovery and reform. • From March of 1933 to June of 1933, Roosevelt sent 15 proposals to Congress and all 15 were adopted • Congress and President tried anything reasonable to overcome the Great Depression.

13. alphabet NEW DEAL: ALPHABET AGENCIES Part of FDR’s New Deal……Agencies created by the US Govt. to bring about the 3 R’s……Relief, Recovery, and Reform.

14. alphabet NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy WPA / 1933 to 1943 Works Progress Administration Employed 8.5 million workers in construction and other jobs, but more importantly provided work in arts, theater, and literary projects.

15. wpa WPA • Works Progress Administration (WPA), the New Deals main relief agency. • People employed by the WPA at its peak was more than 3 million • 2,500 hospitals • 5,900 schools • 13,000 playgrounds • 125,000 public buildings

17. alphabet NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy • CCC / 1933 to 1942 • Civilian Conservation Corps • Sent 3 million young men to work camps to build bridges, replant forests and other conservation tasks. • Develop job skills and improve environment. • Removed surplus of workers from cities, provided healthy conditions for boys, provided money for families.

18. UNEMPLOYMENT - still a major problem • FDR like Hoover was wary of gov't handouts - he wanted people to earn their keep so gov't agencies were created - temporarily - to address the unemp. problem • CIVILIAN CONSERVATION CORPS (CCC) - in 1933 - set to establish work for young men (18-25) in areas of reforestation, soil conservation, flood control, road construction - also took them out of urban labour markets - but Blacks not permitted to enrol

19. Civil Works Administration • Created up to four million jobs in construction

20. Public Works Administration • Provided jobs constructing huge public works such as bridges and dams • Goals • Create jobs • Strengthen American industry

21. NATIONAL INDUSTRIAL RECOVERY ACT • Also called the National Recovery Act. • Helped businesses organize codes setting prices and minimum wage. • Put people back to work at decent jobs, wages and working conditions. • Businesses were not forced to join this. • Declared unconstitutional by the Supreme Court in 1935 because it violated powers given to excutive branch by legislative branch . • Violated separation of powers, executive not allowed to enforce intrastate commerce

22. NATIONAL INDUSTRIAL RECOVERY ACT

24. NATIONAL INDUSTRIAL RECOVERY ACT (NIRA) and NATIONAL RECOVERY ADMIN (NRA) were established to end animosity between labor and business  all was redirected to industrial growth  fair labor codes established - wages, no child labor, shortened work hours- business people challenged the NRA, claiming it was communist • They formed the LIBERTY LEAGUE - at LL's urging, the Supreme Ct. overturned the NIRA & NRA, claiming that federal government was exceeding its authority (by interfering in state jurisdiction)

25. alphabet NEW DEAL: ALPHABET AGENCIES RECOVERY: Begin Economic Growth AAA / 1933Agricultural Adjustment Act • Protected farmers from price drops and over production.. • US Govt. Paid farmers (subsidies) • not to grow crops, produce dairy products such as milk and butter or raise pigs and lambs. • Goal of raising prices of agriculture • Prevent another Dust Bowl, teach farmers methods of preventing soil erosion.

26. AGRUCULTURAL ADJUSTMENT ACT (AAA) - passed in 1933 to aid farmers- its objective was to restore farmers' purchasing power and to restore the family farm - AAA had farmers cut back on crop production by paying them equivalent SUBSIDIES (paid not to produce) the goal was to increase prices of farm goods - bad side: • 1) food production down when millions were starving • 2) Black sharecroppers were hurt: white landowners paid not to farm so they got rid of Black tenant formers • in 1935, AAA was declared unconstitutional by courts (too much control over individual states), so it was revised and introduced as new legislation- Soil Conservation Act • Second AAA • EX: Food Stamp Act of 1939 - gave away surplus food to poor, also guaranteed (small) farmers a market

27. alphabet NEW DEAL: ALPHABET AGENCIES RECOVERY: Begin Economic Growth • TVA / 1933Tennessee Valley Authority • Federal government built a series of dams to prevent flooding and sold electricity. • First public competition with private power industries.

29. TVA TENNESSEE VALLEY AUTHORITY • Develop a poor section of the Southeast U.S. • Stimulate the economy and produce cheap electricity. • Control floods, planting new forests. • Bring this section into the 20th century. • Controversial- is government overstepping bounds into private sector • 94 percent of property owners and 98 percent of tenants did not have electricity. • 30 percent of property owners and 41 percent of tenants had no toilet facilities whatsoever

30. TVA TENNESSEE VALLEY AUTHORITY • 65 percent of property owners and 78 percent of tenants had to travel at least 300 yards to get their household water. • 8 percent of property owners and 3 percent of tenants owned radios (usually battery operated). • 39 percent of property owners and 23 percent of tenants had phonographs (including record players that were operated with a hand crank).

31. TVA TENNESSEE VALLEY AUTHORITY • 50 percent of property owners and 25 percent of tenants read newspapers. • 26 percent of property owners and 16 percent of tenants owned automobiles. • 7 percent of property owners and 4 percent of tenants owned trucks.

32. TENNESSEE VALLEY AUTHORITY (TVA) - used to promote hydroelectric power, control flooding - lower rates  private industry, manuf. fertilizer fed. gov't. took ownership (nationalization v. privatization)

33. alphabet NEW DEAL: ALPHABET AGENCIES REFORM: Prevent Another Depression FDIC / 1933Federal Deposit Insurance Corporation Created federally insured bank deposits ($2500 per investor at first) to prevent bank failures.

34. Banking Reform • The first phase of the New Deal dealt exclusively with economic reform - FDR believed government legislation/involvement was crucial to stimulate the economy • Step 1 – deal with the banking crisis • BANKING HOLIDAY- banks shut down and subject to government inspection, allowed to open when "healthy"- people's confidence returned in depositing in banks, allowing them to reinvest in the economy.

35. Increasing the Money Supply • Step 3 – Increase the money supply • FDR went off the GOLD STANDARD (government could print more money than Fort Knox gold reserves would allow)- • With more money in circulation, wages and prices increased • More inflation caused dollar value to lower which gave government spending power (Keynesian economics)

36. alphabet NEW DEAL: ALPHABET AGENCIES REFORM: Prevent Another Depression SEC / 1934Securities and Exchange Commission Regulated stock market and restricted margin buying, and frauds.

37. Stock Regulation • Step 2 - Stock market reform • Security Exchange Commission established to police the Stock Exchange -practice of buying on margin was regulated

38. The National Labor Relations Act • The National Labor Relations Act • also called the Wagner Act • It guaranteed workers the right to organize unions without interference from employers and to bargain collectively. • The National Labor Relations Board (NLRB) which organized factory elections by secret to determine whether workers wanted a union. • The NLRB then certified successful unions. • The new law also set up a process whereby dissatisfied union members could take their complaints to binding arbitration, in which neutral party would listen to both sides and decide issues. • The NLRB was authorized to investigate the actions of employers and had the power to issue “cease and desist” orders against unfair practices.

39. The Committee for Industrial Organization • The United Mine Workers union began to work with other unions to organize workers in industries where unions did not exist. • To do this, they formed the CIO • They began with automobile and steel industries—two of the largest industries • In late December 1936, General Motors launched a sit-down strike do to the first sit-down strike due to the demotion of two workers • Violence broke out in Flint when police launched a tear gas assault on one of the smaller plants. • Afterward, GM broke down and recognized the CIO union, United Auto Workers as its employees sole bargaining organization. • This led to others using the sit-down strike as a method in other industries.

40. other agencies had specific mandates too...NATIONAL YOUTH ADMIN. (NYA) - created jobs for young in urban areas • FED. EMERGENCY RELIEF ACT (FERA) - aimed at older workers- these and other similar agencies worked well, but unemp. was still at 6 million in 1941(solution for this would be the ind. boom of WW2) • NEW DEAL - SOCIAL REFORM ASPECT- after 1935, w/ immediate economic relief & reform addressed, New Deal turned to Social Welfare - more legislation... • National Labour Relations Act (aka Wagner Act)- it legitimized unions and labour tactics such as collective bargaining & collective action (strikes, etc...) - it outlawed BLACKLISTS & other anti-union practices

41. SOCIAL SECURITY ACT • One of the most important features of the New Deal. • Established a retirement for persons over 65 funded by a tax on wages paid equally by employee and employer. • Old age insurance • Protect Americans who were unable to support themselves. • Unemployment compensation • Compensation to disabled workers and assistance to widows and children

42. Social Security Act (1935)- feared by opponents as "creeping socialism"- this act typifies the WELFARE STATE - unemployment insurance, old age pensions • Problem: it took some $ out of circulation (payroll deductions) at a time when purchasing power was already low- also, it only covered the unemployed

43. The Election of 1936 • Roosevelt vs Landon • FDR wins in a landslide • this victory gave FDR a mandate to continue his New Deal policies • first objective: to reorganize the Supreme Court - they disallowed some New Deal legislation

44. Supreme Court Congressional opposition was beginning to grow; many of his laws, including the WPA, were taking a long time to get passed and met resistance. • Schechter v. United States • The Schechter brothers had a poultry business in Brooklyn. • They had been convicted in 1933 of violating the NIRA’s Live Poultry Code; they had sold diseased chickens and violated the code’s wage-and-hour provisions. • Known as the “sick chicken case.” • The Supreme Court said that the Constitution did not allow the Congress to lend its powers to the executive; the NIRA was unconstitutional. • This suggested that the Supreme Court would make similar decisions in regards to the New Deal.

45. FDR's COURT PACKING • Supreme Court was striking down New Deal legislation. • Roosevelt proposed a bill to allow the president to name a new federal judge for each who did not retire by age 70 and 1/2. • 6 justices over age limit. • Would have increased the number of justices from 9 to 15, giving FDR a majority of his own appointees on the court. • The court-packing bill was not passed by Congress.

46. LEGACY OF NEW DEAL Criticisms of New Deal • US government and President too powerful • Violated laissez faire • Supreme Court declared NIRA and AAA unconstitutional • Critics: • Father Charles Coughlin • Dr. Francis Townsend • Al Smith • Huey Long • Deficit spending: Govt. spends $$$ to stimulate the economy and help people even if it means US Govt. goes into debt. • Welfare state----Created a population of Americans who relied on the US Govt. to live 100 days

47. FATHER CHARLES COUGHLIN • A Roman Catholic priest. • Radio Priest in Detroit Michigan. • Criticized FDR in weekly radio program. • 10 million listeners. • Criticized FDR’s farm program • Believed an international conspiracy of bankers existed and FDR was influenced by them. • He called for the nationalization of banks and utilities.(US Govt. controls banks, Socialism) • Fascist; Anti-Semitic overtones.

48. DR. FRANCIS TOWNSEND • He wanted the government to help older citizens. • Retired California Physician. • Suggested a $200 per month pension for people over 60.(This is socialism) • Open jobs for the younger unemployed. • Spending all $200 would also be required to boost economic demand. • Townsend Clubs created all over the nation. • Influenced FDR’s creation of Social Security

49. Huey Long “Every Man A King”

50. LEGACY OF NEW DEAL Successes of New Deal AMERICANS IN 1939 WHO WANTED THE NEW DEAL TO CONTINUE WAS 55%….. 37% REGARDED IT AS A BAD INFLUENCE AND WANTED A NEW PRESIDENT…………... • Stimulated the economy • Put people back to work…. • Improved morale and self-confidence of the people • US Govt’s. role changes and became directly involved in helping people • WWII ended the Great Depression not FDR’s New Deal 100 days