Franklin D. Roosevelt and the New Deal Redefined Democracy: Political Rights  Economic Security  Social Justice Social Justice

Hoover’s Downfall  lassez-faire policies  believed in a balanced national budget  seen as a “do-nothing president”  Americans turn against him: Bonus Army & Hoovervilles

Franklin D. Roosevelt  Americans see him as man of action, strong leader  Friendly, approachable, confident  Used the press to advantage  Open to new ideas  Two-term governor of New York  Cousin of Teddy Roosevelt  Results: landslide victory for Democrats (both presidency and Congress)

FDR vs Hoover 1932 Election

The “Brain Trust” - FDR worked with a group of experts to create New Deal Program - This group of experts (professors, lawyers, journalists, social workers ) became known as the “Brain Trust”

FDR Assumes the Presidency  March 1933: country is virtually leaderless, banking system has collapsed  20 th Amendment (Feb. 1933) moved presidential elections from March to January (effort to fix “lame duck” period)  FDR Inaugural address: “The only thing we have to fear is fear itself….”

3 Goals of the New Deal  Relief : immediate help for the needy, jobs for the unemployed, protection for farmers from foreclosure  Recovery : get the economy moving again  Reform : regulate banks, abolish child labor, conserve farm lands

First Hundred Days  March 9 – June 16, 1933  Congress passed more than 15 major pieces of New Deal legislation  Significantly expanded federal government’s role in the nation’s economy

New Deal Programs: Alphabet Soup  Relief: short-term, get people through until economy recovers  Bank Holiday: closed all banks; could not re-open until government inspectors declared bank sound  Federal Emergency Relief Act (FERA)  Civilian Conservation Corps (CCC)  Works Progress Administration (WPA)

Recovery  National Recovery Administration: asked businesses to voluntarily follow codes that set standard prices, production limits, minimum wages  Agricultural Adjustment Acts: - first AAA: gov. paid farmers to plant fewer crops - second AAA: gov. bought farm surpluses, stored in warehouses until prices went up

Reform  1933: Federal Deposit Insurance Corporation (FDIC): insured deposits so people would not lose their money if bank failed  1933: Tennessee Valley Authority (TVA): built government-owned dams to control flooding, bring electricity to poverty-stricken Tennessee River Valley  1934: Securities and Exchange Commission: regulate stock market to prevent fraud and another crash  1935: Social Security Act: gave workers unemployment insurance, pensions, insurance to families if workers died early

Fireside chats – radio talks about issues of public concern; explained New Deal; Americans felt like FDR was speaking directly to them; gave them hope and confidence in leadership

Prohibition Repealed st Amendment: ends Prohibition -government can collect taxes on liquor, use it to help national economy

Concerns About the New Deal - policy of deficit spending (spending more money than government receives in revenue) - FDR felt this was a necessary evil that had to be used to help fix economic crisis - supported by British economist John Maynard Keynes - opposite of laissez-faire

Criticisms of Conservative Opponents  American Liberty League  said New Deal violated rights of individuals and property  added to national debt wasted money on relief and encouraged idleness  Gave the president too much power

FDR Opponents: Senator Huey Long (Louisiana)  planned to run for president  Advocated Share-Our-Wealth plan  guaranteed annual income of at least $5,000 for every American  financed by confiscating wealth of people who made over $5 million per year  Slogan: “Every Man a King!”  Very popular – 1935 claimed 7.5 million members of Share-Our-Wealth clubs  Killed by Dr. Carl Weiss at a rally

1936 Election

Greatest Threat to New Deal: US Supreme Court  1935 & National Industrial Recovery Act (NIRA) & Agricultural Adjustment Act (AAA) ruled unconstitutional (NIRA = gives president power to regulate businesses that operate within states) - Supreme Court rules that Congress cannot give presidents more power than the Constitution gives them (even during national emergencies)

FDR Attempts to Protect New Deal  FDR afraid Supreme Court might rule that other New Deal programs are unconstitutional  He tries to protect New Deal programs by:  1937: Court-Packing Scheme - plan says presidents can add a new Justice for every Justice over 70 ½ yrs old - would increase court from 7 members to 15 - FDR would have been able to add SIX new Justices

Legacy of New Deal on Government Responsibilities of government: -health, welfare, security, & protection & education of citizens -make sure national economy runs smoothly Expansion of democracy: -concept of democracy now includes economic security & social justice in addition to political rights Role of government: -more involvement in citizens’ lives; more regulations, increased taxes to pay for government programs