FDR & The New Deal

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.

Election of 1932

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.

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).

Polio

• In 1921, while vacationing at his family home in Campobello FDR contracts polio.

• He never walks again.

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.

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.

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.

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.

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.

Fireside Chats

• FDR’s regular radio addresses to the nation.

• Very charismatic with public and press.

The Brain Trust

• Brain Trust = Name given to FDR’s advisors.

• Many are college professors from Columbia.

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.

Civil Works Administration

• CWA

• Public works projects.

• 4 million to work

• Run by FERA

• Only for 5-months

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.

• Workers lived in barracks and followed strict schedules (kind of like the army).

• Women were excluded.

• Minorities were limited and segregated.

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

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.

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.

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.

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.

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 $.

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.

Norris Dam

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.

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.

Housing for the Poor

• United States Housing Authority (USHA).

• Spent $540 million building apartments for low income people.

National Youth Administration

• NYA

• Youth 16-24

• Provided job training and jobs

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.

WPA

Other banking stuff

• Emergency Banking Act—gives govt. greater control over banks.

• Govt. gives money to banks.