FDR & The New Deal

Franklin Delano Roosevelt, politician from New York The Rise of FDR Franklin Delano Roosevelt, politician from New York Takes break from politics, gets sick with polio (paralyzed legs) Eleanor Roosevelt (wife) gets involved with politics while FDR recovers Elected president in 1932, economy gets worse before his inauguration People worried FDR would get rid of the gold standard—states issue bank holidays FDR had no firm ideology, believed in “bold experimentation” Depended on advisors for information and advice: Some advise FDR get gov’t to help big business get out of Depression Some advise FDR to allow the gov’t to plan the economy, exclude big business Some advocate Wilson’s “New Freedom”, break big business up and regulate the new competition

Fireside Chats: Roosevelt uses the radio to uplift nation The First New Deal Fireside Chats: Roosevelt uses the radio to uplift nation Help for Banks: Federal Deposit Insurance Corp. (FDIC) insures bank deposits Securities & Exchange Commission (SEC) to regulate stock market Glass-Steagall Act: separates investment and commercial banks Home Owners Loan Corp. restructures mortgages (longer period, lower interest) Farm Credit Administration (FCA): helps farmers refinance mortgages Agricultural Adjustment Administration (AAA) controls farm production National Industrial Recovery Act (NIRA) authorizes the National Recovery Administration (NRA) suspends anti-trust laws and supports cooperation between business and government

Alphabet Soup Relief Programs Civilian Conservation Corp. (CCC) puts young men to work with forestry service, Tenn. Valley Authority (TVA) concentrates on infrastructure Federal Emergency Relief Admin. (FERA) funds state-level relief projects Public Works Admin. (PWA) puts young men to work in construction Civil Works Admin. (CWA) combines efforts of PWA and CCC CWA puts 4 million to work (including 300,000 women) CWA builds/improves 1,000 airports, 500,000 miles of road, 40,000 schools, 3.500 parks and playgrounds

Conservatives believed the New Deal regulated business too much Second New Deal Conservatives believed the New Deal regulated business too much Liberals believed did not believe the New Deal regulated or did enough FDR abandons balanced budget and begins deficit spending, new programs Works Progress Admin. (WPA) employs 8.5 million people and spent $11 Million on roads, airports, bridges, and parks as well as public art projects 1935: Supreme Court strikes down the NRA in Schechter Poultry Corp. v. United States Supreme Court’s decision struck down organized labor allowed by NIRA 1935: Congress passes the Wagner Act creating the National Labor Relations Board, binding arbitration and gave unions more leverage—sit down strikes Congress passes the Social Security Act, helping older Americans

Supreme Court threatens to strike down the New Deal FDR Reelected Election of 1936: Democrats forge new party base (working class whites, African Americans, Women, progressives, white southerners, farmers) Supreme Court threatens to strike down the New Deal Roosevelt proposes court-packing plan to appoint new justices Recession of 1937: Roosevelt ended some programs, raises taxes Fair Labor Standards Act: minimum wage National Housing Act: creates U.S. Housing Authority (public housing) The New Deal allowed the U.S. to be a broker state and created a safety net while providing the infrastructure needed for future growth The New Deal did not end the Depression, but helped America recover faster