The New Deal

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The New Deal

• A New Deal Fights the Depression

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1932 Election

• Dem. Franklin Delano Roosevelt ran against Rep.
  Herbert Hoover

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FDR

• FDR did not provide details about his New Deal
  Programs, he gave hope to people
  who saw the economy
  declined continually since
  1929

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FDR

• The country was cautiously optimistic when FDR
  took the oath of office

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FDR

• A distant relative of TR, married to TRs
  cousin
• He was paralyzed by polio in 1921
• His wife, Eleanor, was popular and influenced FDR
  to help the poor and less
  fortunate

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Election of 1932
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The New Deal

• Throughout the 32 campaign, FDR offered ideas
  but no concrete solutions
• In his acceptance speech he said, I pledge you,
  I pledge myself, to a new deal for the American
  people.
• They were the 3 Rs

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The New Deal the 3 Rs

• Relief for people out of work
• Recovery for business and the economy as a
  whole
• Reform of American economic institutions

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The New Deal The Brain Trust

• FDR used a group of advisors
• Louis Howe chief political advisor
• The Brain Trust was a group of university
  professors
• Rexford Tugwell
• Raymond Moley
• Adolph A. Berle. Jr

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The New Deal Cabinet Positions

• FDR appointed the most diverse groups of
  people in American history to his
  cabinet African Americans, Catholics, Jews
  and women were included

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The New Deal Cabinet Positions

• Sec. of Labor, Francis Perkins, was the first
  woman to ever serve in a cabinet position

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Francis Perkins is remembered as being the first
woman

• Doctor
• Cabinet member
• Army officer
• presidential running mate

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The first R Roosevelt wanted to accomplish was

• Regulate
• Reform
• React
• Recover

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Roosevelts plan for the economy was called the

• New Deal
• Square Deal
• Fair Deal
• Deal or no Deal

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The only thing to fear is

• the crashing stock market
• uncontrolled immigration
• uneducated, unemployed people
• fear itself

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To assist him with his economic plan, FDR
assembled the

• Roosevelt Roundtable
• Brain Trust
• Depression Duo
• Bright Idea Team (BIT)

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The First 100 days

• Immediately after his inauguration, FDR called
  Congress into a hundred-day-long session.
• Congress passed every request of the president
  passing more legislation than any single Congress
  in history so many they were referred to by
  their initials

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The First 100 Days

• People were flocking to banks to withdraw their
  money and banks were failing at an unprecedented
  rate
• FDR ordered the banks closed on March 6, 1933 and
  went on the radio to explain how the government
  would reorganize the banking system

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The First 100 Days

• FDR used the radio to give fireside chats.
• In the first he explained that banks would reopen
  after the bank holiday
• The public responded and
  re-deposited much of what they had
  taken out.

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The First 100 Days

• Later in 1933, he repealed Prohibition and the
  21st Amendment brought Prohibition to an end
• The sale of liquor
  brought in much needed
  revenue to fund
  his programs

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The First 100 Days

• Financial Recovery Programs
• Emergency Banking Relief Act
• Govt examines banks finances
• Federal Deposit Insurance Corp under the
  Glass-Steagall Act
• FDIC insures bank deposits to 5000

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The First 100 Days

• Financial Recovery Programs
• Home Owners Loan Corp HOLC
• Refinancing to prevent foreclosures
• Farm Credit Administration
• Low interest farm loans
• Federal Securities Act
• Required additional oversight on stock offerings
  and misrepresentation

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The First 100 Days

• Relief for the Unemployed -FERA
• Public Works Admin. PWA
• Sec. of Interior Harold Ickes allotted money to
  states to build roads, bridges, dams etc
• Civilian Conservation Corps CCC
• Federal land projects
• Tennessee Valley Authority TVA
• Dams and power plants

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The First 100 Days

• Industrial Recovery Programs
• National Recovery Admin NRA
• Hugh Johnson attempt to guarantee profits for
  business and fair wages/hours for labor
• Agricultural Adjustment Admin AAA
• Encouraged farmers to decrease production and pay
  subsidies for every acre plowed under

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The First 100 Days

• Industrial Recovery Programs
• National Recovery Admin NRA
• Was found to be unconstitutional by Schechter v.
  US
• Agricultural Adjustment Admin AAA
• Was also found to be unconstitutional

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Other Recovery Programs

• Civil Works Admin CWA, was added to the PWA
  creating more jobs.
• The agency hired
  laborers for temporary
  construction
  projects

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Other Recovery Programs

• Securities and Exchange Commission, SEC created
  to regulate the stock market and place strict
  limits on the kind of speculative practices that
  led to the crash of 29

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Other Recovery Programs

• Federal Housing Administration, FHA
• Gave both the construction industry and
  homeowners a boost by insuring bank loans for
  building new houses or repairing old ones

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The combination of recovery programs were called

• Welfare state
• National Recovery Systems
• alphabet soup
• A B C X Y Z

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To stop the run on banks, FDR

• closed all banks
• printed more currency
• started checking accounts
• limited the amount one could withdraw

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Almost immediately after taking the oath of
office, FDR

• married his cousin, Eleanor
• asked England for assistance
• fired the Brain Trust
• repealed the 18th Amendment

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The Tennessee Valley Authority (TVA) was
responsible for

• replanting natural forests
• creating national parks
• building dams
• building canals

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FDRs New Deal was successful because he

• gave people jobs and paychecks
• created the welfare system
• forbid foreign imports
• lowered prices for goods

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Why FDR Succeeded

• Federal money propped up the American economy,
  increasing its debt
• Without it, America would fall into deep
  depression again
• Frequent fireside chats kept Americans
  optimistic

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The Second New Deal

• FDRs first 2 years were focused on the first of
  3 Rs Recovery
• Democratic victories in the mid-term election
  (1934) gave him the mandate to seek another round
  of laws and programs
• The Second New Deal began in 1935

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The Second New Deal - Relief

• Works Progress Administration, WPA
• Spend billions to employ 3.4 million people who
  had been on relief
• Paid double the relief money but less than
  regular workers
• Painted murals, wrote history, construction
• National Youth Admin, NYA employed high school
  students and young people

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The Second New Deal - Relief

• Resettlement Administration, RA
• Under direction of the Brain Trust, established
  federal camps where migrant workers could
  find decent housing

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John Maynard Keynes

• The writings of British economist, Keynes, taught
  FDR that he made a mistake trying to balance the
  budget

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John Maynard Keynes

• Keynesian economics 101
• In difficult times, the govt should spend well
  above its acceptable levels to initiate economic
  growth
• Deficit spending is like priming the pump
• Put more currency into peoples hands to increase
  the circular flow of money

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John Maynard Keynes is the man

• FDRs financial advisors adopted Keynes theories
  with great success
• As federal spending on public works and relief
  went up, so did employment and industrial
  production

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Supreme Court Packing

• Unhappy with some recovery programs being found
  unconstitutional, FDR chose to reorganize the
  Supreme Court
• His plan called for him appointing a new justice
  for each current justice over the age of 70.5.
• That meant 6 new liberal justices

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Supreme Court Packing

• Critics were disturbed by a plan to tamper with
  the checks and balance system and accused FDR of
  becoming a dictator
• For the first time, Congress refused to send him
  a bill

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Supreme Court Packing

• While FDR was fighting for its passage, several
  justices had backed off their resistance to his
  programs
• In 1937, the USSC upheld the constitutionality of
  the Wagner Act and the Social Security Act

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Supreme Court Packing

• During FDRs second term, several judges retired
  enabling him to appoint 7 judges in line with his
  reforms
• Hugo Black, was the first and shifted the balance
  to a more liberal court

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Demagogues

• Demagogue a person who obtains power by
  appealing to the emotions and prejudices of the
  people
• Some desperate Americans turned these men who had
  immediate solutions to their problems
• Using the radio, they reached homes with
  simplistic schemes for ending evil conspiracies

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Demagogues

• Catholic priest, Father Charles E. Coughlin,
  founded the National Union for Social Justice
  which called for issuing an inflated currency and
  nationalizing all banks
• His attacks became increasingly anti-Semitic and
  Fascist until his superiors told him to stop

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Demagogues

• Retired physician, Dr. Francis E. Townsend,
  proposed that a 2 federal sales tax be used to
  create a special fund from which every retired
  person over 60 would receive 200 per month
• The popularity of this plan persuaded FDR to
  implement the Social Security system.

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Demagogues

• Louisiana Senator, Huey Kingfish Long,
  proposed a minimum 5000 income for each
  American family to be paid by taxing the
  wealthy
• This Share the Wealth program was popular in LA
• He was assassinated while running for president
  in 1936 as a populist

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The New Deal

• The Second New Deal Takes Hold

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Election of 1936

• The Republicans nominated Alf Landon, a
  progressive governor of Kansas, he criticized
  Democratic spending but approved of the New Deal
• FDR won every state except Maine and Vermont and
  received more than 60 of the popular vote

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Like FDR would lose LOL!
Republicans lost their African American voter
base and they never returned
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The Second New Deal - Reform

• National Labor Relations (Wagner Act) 1935
  Replaced the unconstitutional National Industrial
  Recovery Act, guaranteed a workers right to join
  a union and that unions had a right to bargain
  collectively
• The NLRB was empowered to enforce the law and
  make sure workers rights were protected

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The Second New Deal - Reform

• Rural Electrification Administration, REA
  provided loans for electrical cooperative in
  rural areas

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The Second New Deal - Reform

• Federal taxes increased income tax on the very
  wealthy
• Increased the tax on large gifts from parent to
  child and on capital gains (profits from the sale
  of stocks or property)

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The Second New Deal - Reform

• Unemployment compensation was enacted

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Wagner and Social Security

• Wagner Act of 1935 protects rights of workers
  to establish a labor union, to engage in
  collective bargaining and to strike
• Social Security Act of 1935 provides a pension
  for retirees

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Rise of Unions

• Union membership, which slumped in the 1920s,
  shot upward because of the National Industrial
  Recovery Act and the Wagner Act.
• Membership went from 3 million in the early 1930s
  to over 10 million by 1941.

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Rise of Unions

• As unions grew in size, tensions and conflicts
  between rival unions grew
• The AFL was made up primarily of skilled, white
  males and were organized by craft
• A group within the AFL wanted membership opened
  to all workers in an industry regardless of race
  and sex

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Rise of Unions

• In 1935 the industrial unions joined with the
  Committee of Industrial Organizations (CIO), led
  by John L. Lewis (pres. Of the United Mine
  Workers)
• In 1936 the AFL, refusing to accept unskilled
  workers, suspended the CIO union.

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Rise of Unions

• Renamed the Congress of Industrial Organizations,
  (still CIO) became the rival of the AFL
• The CIO organized unskilled workers in the
  automobile, steel and southern textile industries

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Strikes

• Even with a poor economy, strikes were frequent
  in the 30s
• General Motors, 1937
• assembly line workers held a sit-down strike
• Strikers became the
  United Auto Workers
  (UAW)

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Strikes

• Republic Steel, 1937
• 4 picketers were shot but company finally
  recognized the CIO in 1941

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Fair Labor Standards Act

• In 1938, Congress passed the Fair Labor Standards
  Act, establishing
• Minimum wage 40 cents an hour
• 40 hr max work week with time and a half for
  overtime
• Child-labor restrictions for those under 16

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Last Phase of the New Deal

• Recession of 1937-38 caused by the collection
  of SS taxes at the same time the government
  relaxed expenditures for relief and public works
• FDR was trying to balance the budget and reduce
  the national debt

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A Weakened New Deal

• There was no boom in the economy and problems
  remained
• After the court-packing incident, the people and
  Congress were no longer in lockstep with FDR
• The midterm elections of 1938 saw a drop in the
  Democratic majority and Republicans blocked new
  legislation

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A Weakened New Deal

• More and more people were looking at the
  aggressive acts of Adolph Hitler and Nazi Germany
  

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The New Deal

• The Second New Deal Takes Hold

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Life in the depression - women

• Men were seen as the breadwinner for families
• When unemployed fathers searched for work,
  declining incomes forced women into the labor
  pool
• When women found work, they were paid less

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Life in the Depression - Women

• FDR appointed 100 African Americans to positions
  in the federal government
• Mary McLeod Bethune headed the Division of Negro
  Affairs of the National Youth Admin.
• Eleanor Roosevelt supported minorities like no
  first lady had before

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Life in the Depression - Families

• Loss of financial stability and sex-role
  adjustments led to multiple marriages an divorces
• Many men abandoned their families

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Life in the Depression Wage Earners
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Life in the Depression - Blacks

• African American singer, Marian Anderson, was
  suppose to sing at the Daughters of the American
  Revolutions concert hall
• When they refused because she was black, Eleanor
  Roosevelt arranged for her to perform at the
  Lincoln Memorial

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FDR and Civil Rights

• Although women and minorities saw some gains, FDR
  did not support equality
• He refused to support an anti-lynching law and
  lifting poll taxes
• His programs gave lower wages to blacks

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Life in the Depression - Blacks

• The last hired were the first fired
• Their unemployment numbers were higher than the
  national average
• Jobless African Americans were excluded from
  state and local relief programs
• Racial tensions increased

Atlanta camp for unemployed Black women
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Life in the Depression - Blacks

• The New Deal provided some relief for African
  Americans who found low-paying jobs with the WPA
  and the CCC most jobs were segregated

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Life in the Depression - Blacks

• Fair Employment Practices Committee Executive
  Order in 1941 set up a committee to assist
  minorities in gaining jobs in defense industries

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Life in the Depression - Blacks

• FDR agreed to this after A. Philip Randolph
  threatened to march on DC to demand equal
  opportunities for African Americans

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Life in the Depression Native Americans

• John Collier was appointed commissioner of the
  Bureau of Indian Affairs in 1933
• He established conservation and CCC projects on
  reservations and gained Native American
  involvement in the WPA

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Life in the depression Native Americans

• John Collier- appointed as Comm. Of Indian
  Affairs
• The Dawes Act was repealed in 1934 with the
  passage of the Indian Reorganization Act,
  returning lands to Indians and supported the
  preservation of Indian culture
• Critics called this paternalistic

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Life in the depression Mexican Americans

• Mexican-Americans made up much of the
  agricultural labor force in the west and
  southwest
• Competition for jobs and discrimination forced
  many Mexican Americans south to Mexico

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Dust Bowl Farmers

• In the early 1930s a severe drought destroyed the
  crops in the Great Plains
• Poor farming practices and dry
  weather turned the land into
  a dust bowl, blowing away soil
• Thousands of Okies and others migrated to Ca

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Dust Bowl Farmers

• John Steinbeck wrote about their struggle in The
  Grapes of Wrath
• Many farmers moved west to California

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Historical Perspectives

• The New Deal changed how Americans thought about
  the federal government, now demanding assistance
  during hard times
• Some historians refer to the times as a
  revolution but only for white Americans,
  ignoring others
• Other historians see the time as just a political
  response

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The New Deal

• Culture in the 1930s

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The artist Grant Wood Painting American
Gothic
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Also, the 30s closed with some
blockbuster, classic movies -
1939 The Wizard of Oz with Judy Garland Gone With
the Wind, written by Margaret
Mitchell, with Clark Gable and
Olivia De Havilland King
Kong, with gorilla
in 1933
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War of the Worlds
Most people relied on the radio for
entertainment On October 30, 1938 Orson Wells
gave a special performance of War of the
Worlds. His use of interruptions and sound
effects created panic across the country as
people believed that aliens were attacking America
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