The New Deal

FDR’s Plan to pull America out of the Great Depression

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Herbert Hoover“The only trouble with capitalism is Capitalist!”

Prior to the Depression, Hoover was perhaps the most qualified person to ever serve as president.

Nickname: “The Master of Emergencies” Historians say that whoever was president in 1929,

would’ve been voted out…And whoever ran for president in 1932 would’ve won.

In Hoover We Trusted, Now We’re Busted Right place at the right time.

The Rise of FDR

FDR lived a privileged life, in contrast to most average Americans in the United States.– FDR grew up in a Hyde Park estate in central New York.– Wealthy parents; Traveled improve his Life/Education.– According to college classmates, he was a snob, eating at private clubs,

living the “high life”. Christian values: Simplicity, honesty, hard work, and compassion

for the poor.– His mother taught him the wealthy/privileged had an obligation to serve

the public.– Practiced private law, New York state senator, Ran as VP candidate in

1924, New York Governor, Asst. Sec’y Navy.

The Presidential Election of 1932

American public overwhelmingly elected FDR in 1932. “Happy Days are Here Again & a “New Deal”

Happy Days are here again, The skies above are clear againLet us sing a song of cheer again, Happy Days are here again!All together shout it now, there’s no one who can doubt it nowSo let’s tell the world about it now, Happy Days are here again!

Your cares and troubles are gone, ther’ll be no more from now onOh happy days are here again, the skies above are clear again

Let us sing the song of cheer again, Happy Days are here again!

March 1933 After winning the election in November of 1932, a reporter asked the

new President-Elect…– “Mr. President, what do you have in mind for this ‘so called’ New Deal?”– ‘Dear, I have no idea…But we’ll figure something out.’

First day in office focused on mobilizing Fed. Gov. to rescue the nation from the Great Depression.– Promised to execute the New Deal “promptly, fearlessly, &

generously to all people.”– Govt policies based on the needs of “the forgotten, the

unrecognized but the indispensable units of economic power … and the forgotten man at the bottom of the econ. Pyramid,” not govt officials.

First, he declared a bank holiday the day after he took office and wanted to prevent Americans from panicking and withdrawing their money.

The Only Thing We Have To Fear…Restoring Hope in America A. In March of 1933, FDR was a National Hero—he was the

“answer” people were looking for.1. People were excited to see what was in store for America2. Will Rogers, a famous comedian of the day…

“The whole country is behind him, just so he does something. If he burned down the Capital, we would all cheer and say, ‘Well, at least he could get a fire started anyway.’ ”3. In his inauguration in March, he declared: “Executive and Legislative branches may have to depart from their normal balance of authority to get America started again.”4. All together, there were 3 New Deals

The First New Deal*Financial RecoveryNational Banking Holiday Called a special session of Cong and created Emergency

Banking Relief Act & the Economy Act to balance the federal Budget.

Quickness of getting things done re-emphasized the trust of the American people.

Called by his peers a “Man of Action”– By Summer of 1933, 3/4 of banks reopened; Deposited $1 billlion.

FDIC—Federal Deposit Insurance Corporation Insured deposit accounts up to $5,000 (Today = $250,000) Increased confidence in banking system

HOLC—Home Owners Loan Corporation Increased life of loans on mortgages in America Also, allows for cheaper house paymentsFCA—Farm Credit Administration Allowed farmers to extent the credit of their farm loans Lowered interest on farm mortgage payments Created subsidies

– Burn crops, Pour out thousands of gallons of milk, butcher millions of livestock

*Job RecoveryFERA—Federal Emergency Relief Administration Direct aid to poor Americans / jobless people / homeless For every $1 state spent, Fed Govt would spend $3 Most people did not like this…

THEY WANTED JOBS!!– CWA—Civil Works Administration

Raking leaves / Picking up litter / Planting flowers– CCC—Civilian Conservation Corps

• Summer 1933 - 250,000 young men, 17 to 24 employed• Glorified “Boy Scouts” who worked in Nat’l Parks & Forests• Planting trees, repairing park facilities, building wilderness trails, stocking

fish in lakes and rivers.• $30 per month, provided shelter, food, clothing and educational materials.• By 1939, 2.5 mil men put to work, (10% African-Am)

Men working on a CCC project

The WPA

– NIRA – National Industrial Recovery Act • $3 billion in Federal Spending• Roads, tunnels, housing projects –

– created tens-of-thousands of jobs.– TVA—Tennessee Valley Authority

• Flood relief in Tennessee • Hydro-Electric Plants and Dams

– *WPA—Works Progress Administration• Built homes, schools, buildings, roads, parks• Nickname: “Work Pays Americans”*Most successful of all work projects

*Agricultural Recovery AAA—Agricultural Adjustment Act

– $ to farmers to reduce crop yields– Later ruled unconstitutional by USSC

AAA encouraged farmers to plow under and burn millions of acres of crops to diminish supply & raise prices.– Farmers were given $1.5 billion in subsidies– Very Controversial – Reports that 6 mil hogs destroyed,

surpluses of wheat & cotton burned.

Farm Relief

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Cartoon

What do you see here? What does the sick, elderly man represent? The Woman? The Doctor? How is the Doctor trying to help the man? Why are there so many many bottles on the table? What do they symbolize? What message do you think the cartoonist intended to convey? We see a pol cartoon showing FDR as a doctor administering a multitude of medicines

from his New Deal remedies bag to an ailing Uncle Sam. A matronly woman - Congress - watches hopefully. The cartoon suggests that the U.S. government, under the direction of FDR, was willing to try everything to make the depressed economy healthy.

“How do I really connect…?”

Fireside Chats– 13 “fireside chats” to gain America’s trust.– Personable, informal talks delivered thru the

radio.– Explained the simple idea behind each reform.– Listen To Fireside Chat on banking crisis

The Fireside Chats

After listening to fireside chat:What words would you use to describe FDR’s tone?

Who do you think was listening to this address?What techniques are used to connect to his audience?

Why do you think he had the fireside chats?Based on this example,

do you think he was successful?

Critics of the New Deal

New Deal Critics– People in 1935 thought that FDR was not doing enough

for the countryFrances E. Townsend

– $200 / mo by govt– Spend it in 1 week to stimulate the economy

Charles Coughlin– Nationalize the banking system– Would allow the govt to control the banks = no

depression

Every Man A KingHuey Long “Share-Our-Wealth Plan” “Robin Hood” idea that took money from the rich,

and gave to the poor– $250 / month– $5000 to buy home– Free college education– Pension for the retirement ages / Securing the future

Running as 3rd party candidate for election in 1936– Assassinated in 1935 / Probably would’ve won

Other Critics of the New Deal

The American Liberty League– one primary group that attacked FDR was Big Business.

General motors and General Foods – along with con v dem questioned his “socialist” leanings.– They were concerned about skyrocketing fed deficit.

Big Business formed the American Liberty League.– Too much gov interference in private enterprise.– Complained about “sovietizing” the New York Stock Exchange,

railroads, radios, elect power, INDUSTRIAL LABOR.

4.2F: Legacy of the New Deal

Based on the graphs, describe the economy in the late 1920s. How do the data from the late 1920s compare to those of 1933 when

FDR took office? What effect did the New Deal have on GNP, unemployment, business

failures by the late 1930s? What happened to the federal debt between 1933 & 1938, the year

before WWII began in Europe? Based on these figures, was FDR’s New Deal successful? How did U.S. entry into WWII in 1941 affect the economy? Which impacted the economy more, the New Deal or WWII? Why?

4.2F: Legacy of the New Deal

Second Hundred Days Despite criticism, FDR and Cong continued to enact experimental

New Deal policies and programs. FDR/Cong pumped $1 bil into economy. Supreme Court Battle Supreme Court ruled many acts unconstitutional. NIRA especially was ruled unconstitutional ‘37 FDR asked Cong to allow him to appoint 6 new justices (old-age

and slow) Packing the court only offended all segments of society.

4.2F: Legacy of the New Deal

Legacy of the New Deal New came to an end in ‘38.

1) FDR leadership reshaped the role of the presidency.– Strength, dignity, independence like no other position in the world.– Centralization of power in the Oval Office (federal power)

2) Fed gov and its role in American’s lives grew larger – Had more direct contact with the people - Welfare State.

3) FDR and Eleanor – ushered in women into more prominent national roles.

4) Social Security– old-aged care by the gov, regulation of stock market, deficit spending,

insured banking deposits.

4.2F: Legacy of the New Deal

Did it work? Yes and No. Assessment says New Deal partially rescued Americans from the

Great Depression. Unemployment dropped, business failures declined, farmers benefited

from subsidies, public’s confidence in banks increased. Millions of American were aided by the programs. Success was limited. WWII is often credited with moving the U.S. economy from surviving

to thriving. FDR and the New Deal can be applauded for bold activism and

creative experimentation in the search for solutions.