FDR & The New Deal

1. FDR & The New Deal

2. Election of 1932 • Depression had been going on for 3-years. • Millions are unemployed, hungry, and homeless. • The Democrat, Franklin Delano Roosevelt of NY, easily defeats Hoover.

3. Election of 1932

4. Who was Franklin Delano Roosevelt? • Know as—”FDR” • Born to a very wealthy family in NY. • Went to Groton, Harvard, & then Columbia Law School. • Married his distant cousin—Eleanor. • 5th Cousin of Teddy Roosevelt.

5. FDR’s Political Career • Served in the NY state legislature. • Assistant Sec. of the Navy under Wilson. • Democratic VP candidate in 1920 (lost). • 2-Time Governor of NY (1928-1932).

6. Polio • In 1921, while vacationing at his family home in Campobello FDR contracts polio. • He never walks again.

7. FDR as Pres. • While running for President, FDR had pledged, “a new deal for the American people.” • The New Deal became the name for FDR’s programs to end the depression. • “We have nothing to fear, but fear itself.” • Only US Pres. Elected 4-times.

8. The Hundred Days • The first 3-months after FDR took office, he began a flurry of legislative action aimed at ending the Depression. • This was called the Hundred Days. • Immediate impact was minimal; but gave people hope.

9. The Banking Crisis • Called for a “Bank Holiday” (closed all banks for 4-days) • Then only “sound” banks could reopen. • Others would remain closed until the govt. could develop a way to open them safely. • Restores public’s confidence in banks again. • By 1933 ½ of banks are open again.

10. The 3-R’s • New Deal Programs were aimed at the 3-R’s: • A. Relief for the unemployed. • B. Recovery measures to stimulate the economy. • C. Reform laws to lessen the threat of another economic disaster.

11. Reform Laws • Truth-In-Securities Act —designed to eliminate fraud in the stock market. • Creates the Securities & Exchange Commission (SEC) to regulate the stock exchange. • The Glass-Steagall Banking Act —Prohibited banks from investing customers’ savings in the stock market. • The Glass-Steagall Act also established the Federal Deposit Insurance Corporation (FDIC) Which insures bank deposits in all member banks.

12. Fireside Chats • FDR’s regular radio addresses to the nation. • Very charismatic with public and press.

13. The Brain Trust • Brain Trust = Name given to FDR’s advisors. • Many are college professors from Columbia.

14. FERA • To help the unemployed, FDR asked congress to appropriate $500 million to a new agency—the Federal Emergency Relief Administration. • Headed by Harry Hopkins. • Gave temporary relief, but did not require work (the dole) and hurt people’s self respect. • FDR and Hopkins wanted relief programs that would put people to work.

15. Civil Works Administration • CWA • Public works projects. • 4 million to work • Run by FERA • Only for 5-months

16. Civilian Conservation Corp • CCC • Put thousands of unemployed men to work on conservation projects. • Young men 18 – 25. • Workers built facilities in state and national parks.

17. Workers lived in barracks and followed strict schedules (kind of like the army). • Women were excluded. • Minorities were limited and segregated.

18. Review • Describe FDR’s Background. • FDR was the only pres. to do what? • How did FDR deal with the banking crisis? • Define: 100 Days New Deal Fireside Chats Brain Trust CCC FERA

19. Agricultural Adjustment Administration • AAA • Agency set up to help farmers. • Paid farmers a subsidy to reduce production. This would cause prices to rise. • Favored large farmers over small & led to eviction of many tenant farmers and sharecroppers. • Supreme court rule unconstitutional in 1936. Said the govt. had no authority to tell farmers to limit production. • New = Soil conservation and Domestic Allotment Act.

20. National Recovery Administration • Law = National Industrial Recovery Act (NIRA) • Creates The NRA • Organization that sought to increase the productivity of industry by relaxing antitrust laws. • Sets codes-- production levels, prices, quality standards—for various industries. • Establishes minimum wages and maximum hrs. workers can work.

25. Problems with NRA • Section 7(a) gave workers the right to form unions but couldn’t be enforced. • Codes written by largest businesses and tended to favor them. • Prices raised artificially. • Industrial production actually declines. • Headed by Hugh Johnson • Supreme Court rules is unconstitutional.

26. Schechter Bros. v. US • Poultry biz. In Brooklyn. “Dead Chicken Case” • Had violated NRA codes. • Not involved in interstate commerce. • Supreme court ruled NRA was unconstitutional because Pres. Had taken over legislative powers in drafting codes.

27. Public Works Administration • PWA • Was created along with NRA under the national Industrial Recovery Act. • Provided job for the unemployed to work on public projects. • Built schools, dams, highways, govt. buildings, low income housing, etc. • But limited (FDR not sold on deficit spending) • Headed by Harold Ickes who was too exact and had trouble spending the $.

28. Tennessee Valley Authority • TVA • Built dams in the Tennessee valley to create electricity. • Also created jobs and enriched the soil. • But backwater flooded some farmers. • Business leaders felt it was a socialist program & that it unfairly competed with private businesses.

30. Norris Dam

31. 2nd New Deal • 1935 • In response to criticism from left and right. • More aggressive towards corporate interests and the wealthy. • Raised taxes on wealthy. • Wagner Act (National Labor Relations Act). Gives workers the right to form unions.

32. Social Security Act • 1935, Social Security Act passed. • Gave security (money) for the elderly. • Also people with disabilities, the unemployed, and dependent children and their mothers. • How Social Security Works: • Employees pay in throughout their careers • Workers got money back in the form of monthly retirement checks.

33. Housing for the Poor • United States Housing Authority (USHA). • Spent $540 million building apartments for low income people.

34. National Youth Administration • NYA • Youth 16-24 • Provided job training and jobs

35. Works Progress Administration • WPA • Big Building Projects—schools, airports, hospitals, playgrounds, etc. LARGER SCALE THAN CWA OR PWA. • But also put unemployed teachers. Artists, writers, and actors to work. • Wrote plays glorifying New Deal. • Oral Histories and travel guides. • Painted Murals.

36. WPA

41. Other banking stuff • Emergency Banking Act—gives govt. greater control over banks. • Govt. gives money to banks.