The New Deal

Review: How did we get here?

WWI left much of the economy operating at a high level. (Production way up)

No one bothered to change how things operated and instead ignored it because its all good….

All good…= Roaring 20’s and “superficial prosperity

Roaring 20’s, a time of ignoring consequences

Review: How did we get here?

Result of ignoring consequences…. Great Depression

Causes Old, Decaying Industrial Base Farming Crisis Easy Credit Unequal distribution of Income

Then the Stock Market crashed and ignited the fire that was the Great Depression.

All blame on Hoover

Election of 1932 Hoover received majority of blame. Roosevelt knew when he won the

presidency when he was nominated by the Democratic Party.

New President, New Deal

Franklin Roosevelt ran on the promise “a new deal for the American people.”

Roosevelt’s New Deal focused on three goals:

– relief for the needy– economic recovery– financial reform

The Three R’s

Relief: immediate act of allowing people to retreat from a bad situation (unemployment, loss of home, welfare)

Recovery: regaining something that was lost or at least beginning to fix what was wrong while having some relief to those harmed. (something that changes what is normal both now to help make things better)

Reform: a longer term change to fix something that was wrong. (correction of a problem so that it is not an issue in the future.

Taking Office

“let me assert my firm belief that the only thing we have to fear is fear itself…”

This exemplified FDR’s belief that the only thing that would obstruct his New Deal is the fear of change that we saw so much of in the Roaring 20’s.

Roosevelt Philosophy

Roosevelt differed greatly in beliefs from Hoover. FDR was much more willing to allow government to get involves to fix the problem.

Roosevelt put his New Deal in place during his first Hundred Days creating 15 major pieces of legislation.

The New Deal

First, fix the broken banking/financial system.– Bank Holiday – Put all banks under government review– First fireside chat, restored public

confidence in banks.Result: Reorganized banking system,

ensured money in banks, and helped make companies more responsible for their stocks.

RECOVERY and REFORM

The New Deal

Help the American People– Help Farmers -> crop prices by

production– Create Jobs -> Create jobs for the

unemployed by allowing them to work through government programs.

– Provide funds to help needy– Give funds to states to create jobs– Helped people keep their homes by

giving them loans to pay their debtsRELIEF and RECOVERY

The Second New Deal

The Second New Deal looked to build on reforms in his first hundred days in office

FDR’s wife Eleanor Roosevelt encouraged him to help the “forgotten man” or the bottom of society (take reforms further)

Second New Deal took government involvement even further

REFORM

The Second New Deal

Labor Relations-> Beyond Relief to Reform– Focused not only on the labor force but

retired workers Wagner Act: Government supported rights of

workers Fair Labor Standards Act: Established

maximum hours and minimum wages for workers

Social Security Act: Insurance for retirees, unemployment compensation, aid to families with dependent children and the disabled.

REFORM

Critics of FDR’s New Deal’s

Liberty League: Conservative group of wealthy businessmen but included Alfred Smith and John Davis (both former Democratic nominees for President) – They believed New Deal programs

violated individual rights and private property.

– They also believed that FDR was attempting to establish a dictatorship

Critics of FDR’s New Deal

Father Charles Coughlin– From Detroit, was a radio priest that

gave sermons that discussed political and economic issues as well as religion.

– He initially supported the New Deal, however turned on FDR when he believed FDR wasn’t going far enough

– His anti-semetic views and the criticism of FDR led to his downfall.

Father Coughlin

Critics of FDR’s New Deal

Dr. Frank Townsend– A medical doctor who did not believe

FDR’s New Deal went far enough, especially when dealing with the elderly

– He proposed a full pension plan for all elderly retirees. His plan was much to expensive to work

– FDR used some ideas from it in his Social Security Act

Dr. Townsend

Critics of FDR’s New Deal

Senator Huey Long– Was also an early supporter of the New

Deal– Long had Presidential aspirations so he

tried to go even further than FDR by proposing a Share the Wealth program.

– The popularity of that program was growing greatly however he was assassinated in 1935 and was never able to challenge FDR for president.

Senator Long

Successful Critic of FDR’s New Deal

Supreme Court – The Supreme Court is responsible to make sure

all the things that government does is allowed by the Constitution.

– The Court struck down two of FDR’s New Deal programs they deemed unconstitutional.

– FDR worried that the Court may dismantle more of his New Deal so he tried to “pack the court” with people who would support him. This outraged many.

– In the end, he was able to change the Court the legal way and they began supporting his New Deal.

Court Packing Bill