1. “New Deal”

2. ELECTION of 1932 Pres. Hoover (Rep) ran for re-election. His campaign promised “Prosperity is just around the corner.” New York Governor Franklin D. Roosevelt was nominated as the presidential candidate for Democrats. Gov. Roosevelt’s campaign had a “can-do” attitude, offered a “New Deal,” and promised “Happy days are here again.” Due to the American public lost faith in Pres. Hoover, the 1932 presidential election saw Franklin Roosevelt (FDR) win in a landslide.

3. 3 1. STUDY THE IMAGE TO THE RIGHT. 2. WHAT EVENT IS DEPICTED IN THE IMAGE? 3. HOW DID AMERICAN’S VIEW FORMER PRES. HOOVER? 4. HOW DID AMERICAN’S VIEW PRES. ROOSEVELT?

4. 4 “LAME DUCK” PRESIDENCY Pres. Roosevelt was elected in November 1932; however, he was unable to take office until March 1933. During this time, the Great Depression worsened and Pres. Hoover was unable to take action because he was a “Lame Duck” president. (Held the title but not the power.) This lead to the passage of the 20th Amendment which designated the date on which the president would be inaugurated to begin a new term as January 20th in the year following the presidential election. *(Nov. 2016 election; sworn in January 20, 2017).

5. THE NEW DEAL FDR and his “Brain Trust” (his advisors) had a plan to end the depression and put the American people back to work, FDR called it the New Deal. A New Deal for the American people meant: Relief, Recovery, Reform. The New Deal saw a change away from government’s prior laissez-faire policies towards the economy. It established the idea the government was responsible to ensure a smooth, stable economy. The New Deal permanently increased the size & power of the federal government!

6. A New Style of Leadership FDR used the radio to speak directly to the American people in his ‘fireside chats’. When FDR was 39, he was struck by polio and he was unable to walk by himself. FDR’s wife Eleanor, served as his eyes and ears by traveling the U.S. in his place. Eleanor spoke strongly for women’s rights, the peace effort, and the poor. ELEANOR ROOSEVELT

7. Women in the Great Depression Women often experienced the Depression as mothers and homemakers. Frances Perkins the 1 st female member of the U.S. Cabinet served as Secretary of Labor. Perkins played a big role in helping FDR with his New Deal legislation. Eleanor Roosevelt rallied women with her book, ‘It’s Up to the Women” as she helped them deal with getting their families through the crisis.

8. In FDR’s 1932 inaugural address he reassured the American public with his famous quote : During the First Hundred Days (The First New Deal) in office: –Pres. Roosevelt passed more than 15 pieces of New Deal legislation. –Outlined the New Deal’s Three R’s - Relief, Recovery, & Reform. –Aimed efforts primarily at RELIEF (direct assistance of needy) & RECOVERY (of economy). –Programs would become known as the Alphabet Soup Laws. When some of the First New Deal programs were declared unconstitutional, Pres. Roosevelt enacted a second set of New Deal programs in 1935. –The focus of the SECOND NEW DEAL programs shifted to RECOVERY (of economy) and REFORM. New Deal Legislation “We have nothing to fear but fear itself”

9. 9 1. STUDY THE IMAGE TO THE RIGHT. 2. HOW IS PRES. ROOSEVELT PORTRAYED? 3. HOW IS CONGRESS PORTRAYED? 4. WHO ARE THEY ATTEMPTING TO “CARE” FOR? 5. WHAT DO THE BOTTLES REPRESENT?

10. Banking Crisis – banks had been failing during the 1930s. Depositors feared banks were unsound and removed their $$$$. Emergency Banking Relief Act, 1933: Pres. Roosevelt declared “bank holidays” & closed all the nation’s banks to prevent further withdrawals. The EBRA also authorized government inspection of the nation’s banks & allowed only sound banks to re-open. Bank closings soon deceased & the public’s faith in the banks was restored. New Deal Legislation: RELIEF

11. Unemployment RELIEF: 1. Federal Emergency Relief – allocated $500 MILLION for emergency relief to state’s for needy. 2. Farm Security Administration - loaned $1 BILLION to help migrant farm workers. 3. Civilian Conservation Corp. – gave young men jobs planting trees, cleaning up parks, etc. 4. Public Works Admin. – created jobs building schools, roads, bridges, other public projects 5. Works Progress Admin. – designed to create as many jobs as quickly as possible such as jobs for artists, writers, and musicians to create murals, plays, and other public artworks. –Programs like the CCC, PWA, WPA, were called the Alphabet Soup Laws New Deal Legislation: RELIEF

12. Priming the Pump –FDR differed from Hoover’s policy of giving money to the public. –FDR wanted to put money into consumers hands hoping to increase their spending thereby increasing demand. New Deal Legislation: RECOVERY Pres. Roosevelt felt the way to recovery was to stimulate demand for goods. 1. STUDY THE IMAGE TO THE LEFT. 2. WHAT IS PRES. ROOSEVELT ATTEMPTING TO DO? 3. WHO CARRIED THE BURDEN? 4. IN YOUR OPINION, WAS THIS A POSITIVE or NEGATIVE POLICY?

13. National Recovery Admin. –Goal was to promote RECOVERY by stopping wage cuts, falling prices, & layoffs. –Set business codes regulating wages, pricing, and practices to ensure fair competition. –Also set standard working hours. –Participating businesses displayed the NRA poster with a “blue eagle” to show commitment to the program. –In Schechter v. Poultry (1935), the Supreme Court ruled the NRA unconstitutional because Congress could not give the President more power than those granted in the U.S. Constitution. New Deal Legislation: RECOVERY

14. 14 Agricultural Adjustment Act –Pres. Roosevelt sought to provide to raise crop prices while reducing production. –The AAA paid farmers to plant less, leave land unseeded or even destroy crops. –The AAA also resulted in the slaughter of approximately 6 million pigs. –Critics upset at destruction of food when many were going hungry. –Policy eventually helped raise crop prices & put more money in farmer’s pockets. –In U.S. vs. Butler (1936), the Supreme Court ruled the power to regulate agriculture belonged to the state NOT the federal government & found the AAA unconstitutional. New Deal Legislation: RECOVERY

15. 15 1. STUDY THE IMAGE AT THE RIGHT. 2. WHAT IS THE NRA? WHAT WAS ITS PURPOSE? 3. DID THE NRA PROVIDE RELIEF, RECOVERY, or REFORM?

16. New Deal Legislation: Reform Reforms were aimed at fixing the defects in the American economy so the Depression would not happen again. These reforms were based on belief that government should protect individuals against risks they could not handle on their own. This would increase the power and presence of the national government in the lives of all Americans into the future. Obamacare is an example of this today. CAN YOU NAME SOME OTHER EXAMPLES OF GOVERNMENT REFORM?

17. Federal Deposit Insurance Corp. – insured banks so people would not lose any savings in the event of a bank failure. Restored faith in banks! Social Security Act - provided the safety net to provide workers with unemployment insurance, an old age pension, or if they died early. –One of the most important achievement of the New Deal. New Deal Legislation: Reform

18. Security & Exchange Comm. –To regulate the stock market and prevent fraud and future crashes. –Made “inside” trading illegal. –Requires companies to provide truthful information on stock offerings. Tennessee Valley Authority –Government owned dams to generate electricity. –Tennessee River Valley was one of the poorest & most depressed areas in the nation. –TVA constructed 20 new dams along the river valley, provided flood control, & created thousands of jobs. National Labor Relations Act –Gave workers right to form unions. New Deal Legislation: Reform

19. Impact of New Deal on Labor Union membership had its greatest growth during the 1930s. Pres. Roosevelt tried to raise wages of labor to help fight the Great Depression. Norris-LaGuardia Act – prohibited the courts or the government from stopping peaceful union strikes as they had in the late 1800s. National Industrial Recovery Act - workers could form unions and employers could not refuse to hire union members. Wagner Act – stimulated unionization by giving Unions the right to collective bargaining. 21st Amendment - ended prohibition. –It provided RELIEF because the American people could legally have a drink in the depression. –It provided RECOVERY because it legalized the alcohol industry which rejoined the national economy. –It provided REFORM because it changed the U.S. Constitution.

20. Reactions to the New Deal The New Deal was generally popular with the American public, but Pres. Roosevelt faced criticism. Liberty League: Believed Pres. Roosevelt was a traitor to his class and was attempting to establish a popular dictatorship with his new powers. Governor Al Smith (NY) a former mentor of Pres. Roosevelt claimed New Deal programs were communistic (TVA, NRA). Dr. Francis Townsend (physician) thought Pres. Roosevelt did NOT go far enough and wanted to give citizens over 65 an additional $200 per month. Father Charles Coughlin (Catholic priest) broadcast radio sermons, felt the New Deal did NOT do enough for the poor. His speeches were popular with nativists who distrusted Wall St., were anti-semitic; & wanted government take over of banks. Senator Huey Long (LA) hoped to win presidency. Proposed to “Share Our Wealth” program - promised every American citizen $5,000 homestead, $2,500 income, free college by taxing the rich. Assassinated in 1935.

21. The Supreme Court and the New Deal The greatest threat to the New Deal was the Supreme Court. Supreme Court struck down New Deal programs of the National Industrial Recovery Act (NIRA) and the Agricultural Adjustment Act (AAA), saying they were unconstitutional. –In 1935, Supreme Court decision in Schechter v. U.S., opined Congress could not give the President more powers than those granted in the Constitution. –In 1936, the Supreme Court ruled in Butler v. U.S., agriculture should be regulated by states, not the federal government. In 1937, Pres. Roosevelt feared the Supreme Court might destroy his New Deal. –Introduced “court reform” bill to allow the President to add a new appointment to the Supreme Court for each justice over 70.5 years old. –If accepted, Pres. Roosevelt would have the right to appoint 6 justices - “packing the Court.”. –Denounced by Congress & the press as a violation of separation of powers. –Bill DID NOT pass.

22. The Court-Packing Scheme 1. STUDY THE TWO IMAGES ABOVE. 2. WHO DOES THE OLD BASEBALL PLAYER REPRESENT? 3. WHY DOES FDR WANT 6 SUBSTITUTES? 4. IN YOUR OWN WORDS, HOW DID THE COURT PACKING SCHEME VIOLATE ‘SEPARATION OF POWERS’?

23. The Court-Packing Scheme 1. STUDY THE IMAGE AT THE RIGHT. 2. HOW IS THE JUSTICE DEPICTED? 3. WHY DID PRES. ROOSEVELT’S WANT TO PACK THE SUPREME COURT? 4. IN YOUR OPINION, DO YOU AGREE OR DISAGREE WITH PRES. ROOSEVELT’S COURT-PACKING PLAN?

24. 24 The Court-Packing Scheme 1. STUDY THE IMAGE TO THE LEFT AND BELOW. 2. DISCUSS THE ISSUES RAISED IN THE IMAGE.

25. Impact of the New Deal Reforms 1. Did not significantly redistribute income. 2. Taxes rose to fund these new government programs. 3. Reasserted necessity of “separation of powers.” 4. Reduced violence in labor relations. 5. SEC protection of investments. The New Deal DID NOT end the Depression. 6. Provided Americans economic security never experienced before (SSA, FDIC, FHA). 7. Growth of federal government, its regulations, and established deficit spending. 8. And the greatest legacy of the New Deal: Americans’ belief the federal government has a responsibility to ensure the health of the nation’s economy and it’s citizens.

26. STAAR Chart Skills Practice USING THE CHART BELOW ANSWER THE QUESTIONS WHICH FOLLOW. 1. WHICH NEW DEAL AGENCY WAS CREATED TO REFORM THE STOCK MARKET? 2. WHICH NEW DEAL AGENCY AIMED TO RESTORE AMERICAN’S FAITH IN THE BANKING INDUSTRY? 3. WHICH NEW DEAL AGENCY HAD THE LARGEST EFFECT ON EDUCATION DURING THE 1930s? 4. WHICH NEW DEAL AGENCIES CREATED JOBS FOR AMERICANS? 5. WHICH NEW DEAL AGENCY IS IN DANGER OF BANKRUPTCY TODAY?