NOTES: FDR AND THE NEW DEAL

How to Deal with the Depression  First, trickle down economics  Help the businesses and they will in turn hire more people and raise wages  Fix banks  NCC (National Credit Corp.)  RFC (Reconstruction Finance Corp.)  Both were too little to help  Public Works  Helped in small way; no spending increase meant no big help  Relief  Hoover did not support direct relief  Known as the New Deal (1 st and 2 nd )  Roosevelt took office without a specific plan (“Do something”)  Bank Holiday and Banking Regulation  Stop bank closures and free up money  Direct Government involvement in Farming and Industry  Too much production/ not enough consumption  Debt Relief for Americans  Public Works and Emergency Relief  Increase government spending Hoover’s Plan FDR’s Plan

Election of 1932  When Franklin Delano Roosevelt was nominated, he flew to Chicago and gave the first ever acceptance speech at a nominating convention.  Promised a “new deal” for the American people  Americans saw hope and optimism in FDR

Election of 1932  FDR won in a landslide 472 to 59 (Hoover) electoral votes – 23 million popular votes to less than 16 million.

Election of 1932  When Franklin Delano Roosevelt was nominated, he flew to Chicago and gave the first ever acceptance speech at a nominating convention.  Promised a “new deal” for the American people  As NY governor, had lowered taxes on farmers, reduced utility charges for all, helped unemployed New Yorkers with new state agency  Americans saw hope and optimism in FDR  FDR won in a landslide 472 to 59 (Hoover) electoral votes – 23 million popular votes to less than 16 million.

Start of FDR’s Presidency  Inauguration on March 4, 1933  4,000 banks had collapsed (9 million savings accounts lost)  38 states declared “bank holidays”- close remaining banks to stop bank runs so they don’t go out of business  1 in 4 Americans was unemployed  Inaugural address “…Let me assert that the only thing we have to fear is fear itself… This nation asks for action, and action now!”

FDR’s First Hundred Days  FDR took office with no real plan (“bold, persistent experimentation… try something”)

FDR’s First Hundred Days  Congress passed 15 major acts at FDR’s request  More than any other similar period in US history  These acts together became known as the New Deal

FDR’s First Hundred Days  Bank Holiday –  Closed banks for 4 days  Emergency Banking Relief Act (proposed/ passed on Day 5) – Banks were examined and backed by the Treasury Dept to promise they were safe – ended banking crisis

FDR’s First Hundred Days  FDR took office with no real plan (“bold, persistent experimentation… try something”)  Congress passed 15 major acts at FDR’s request  More than any other similar period in US history  These acts together became known as the New Deal  Bank Holiday –  Closed banks for 4 days  Emergency Banking Relief Act (proposed/ passed on Day 5) – Banks were examined and backed by the Treasury Dept to promise they were safe – ended banking crisis

FDR’s 1 st New Deal  Securities Act of 1933  Created SEC  Glass-Steagall Banking Act  Created Federal Deposit Insurance Corporation (FDIC)  Agricultural Adjustment Administration (AAA)  National Industrial Recovery Act (NIRA)  Run by National Recovery Administration (NRA)  Home Owners’ Loan Corporation (HOLC)  Farm Credit Administration (FCA)  Civilian Conservation Corps (CCC)  Federal Emergency Relief Administration (FERA)  Public Works Administration (PWA)  Civil Works Administration (CWA)  Tennessee Valley Authority (TVA)

The New Deal  Focus on helping people in need  Immediate help to citizens  Relief  Focus on reforming the system  Wants to help faster  Fix things the first New Deal did not First New Deal Second New Deal

2 nd New Deal Programs  Works Progress Administration (WPA)  National Labor Relations Act (Wagner Act)  National Labor Relations Board (NLRB)  Rural Electrification Administration (REA)  Social Security Act (SSA)  Public Utility Holding Company Act  Banking Act  Resettlement Act  Committee for Industrial Organization (CIO)

Critics  Did not do enough to solve the problems of the Depression  Democrat Senator Huey Long  Father Coughlin – radio host, New Deal too moderate  Dr. Francis Townsend  Did too much and gave the government too much power  Expanded federal government spending at expense of states  Deficit spending  American Liberty League Liberals Conservatives

FDR and the Supreme Court  Public supported New Deal Programs but…

FDR and the Supreme Court  Supreme Court voted several of FDR’s New Deal Programs unconstitutional.  NIRA  AAA  SSA and Wagner Act cases were pending in 1936

FDR and the Supreme Court  Court Packing Plan  Claimed court was “overburdened”  Sent bill to add new justice for each one over 70 who did not retire (would have allowed up to 6 new)  Did not pass but Court upheld SSA and Wagner Act

FDR and the Supreme Court  Public supported New Deal Programs but…  Supreme Court voted several of FDR’s New Deal Programs unconstitutional.  NIRA  AAA  SSA and Wagner Act cases were pending in 1936  Court Packing Plan  Claimed court was “overburdened”  Sent bill to add new justice for each one over 70 who did not retire (would have allowed up to 6 new)  Did not pass but Court upheld SSA and Wagner Act

Reaching Out to the People  Fireside chats  From the first week he was in office, FDR had weekly radio addresses to the American people  He used these to sell his New Deal Programs to the American public

More Action  FDR continued to pass legislation to improve the economy in his second term  National Housing Act  Farm Security Administration  Fair Labor Standards Act

More Action  He remained popular and the economy continued to improve  Not quickly  Not steadily  Recession in 1937

More Action  Government's role in the average American’s life increased dramatically (and stayed that way)

More Action  FDR continued to pass legislation to improve the economy in his second term  National Housing Act  Farm Security Administration  Fair Labor Standards Act  He remained popular and the economy continued to improve  Not quickly  Not steadily  Recession in 1937  Government's role in the average American’s life increased dramatically (and stayed that way)