Chapter Ninth Edition America: Past and Present America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. Franklin D. Roosevelt and the New Deal 26

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The Great Depression 1920s Optimism about good economy 1929 – “Black Thursday” Stock market collapsed, factories closed, unemployment went up, optimism shattered Result in 25% unemployment Wealth of 1920s not distributed boardly enough Profits used for dividends, and stock speculation

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The Great Crash Souring stock prices attract investment Corporate investor’s obsess with speculation on stock market Money not used for wage increases Productivity increased 43%, wages only by 11% Demand for consumer goods declines Businesses laid off workers 1929: Stock market crashed

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Unemployment, 1929–1942

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Effects of the Depression Hardship affected all classes – unemployment and poverty undermined self-worth and caused despair The middle class lost belief in ever- increasing prosperity – hit them hard Thousands of young homeless, jobless 25% unemployed

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Fighting the Depression Republican party struggles to overcome depression Depression gives Democrats opportunity to regain power

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Hoover and Voluntarism Hoover initially sought solution through voluntary action, private charity Aided farmers with Farm Board to buy surpluses and bankers with loans through Reconstruction Finance Corporation Hoover Dam White House business conference Hoover too cautious and too late with programs

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Hoover and Voluntarism Bonus Army and General MacArthur Resisted Democratic efforts to give direct aid to the unemployed – Perceived as indifferent to human suffering – Hoover blamed for the Depression

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Bank Failures, 1929–1933

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The Emergence of Roosevelt Franklin Roosevelt – Born to wealth and privilege – 1921: Crippled by polio – prepared him to be sensitive to downtrodden – 1928: Elected governor of New York – Talented and persuasive politician 1932: Defeated Hoover with farmer- worker- immigrant-Catholic coalition Roosevelt healed division in Democratic party People remembered Bonus Army

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The Hundred Days FDR inaugural inspired with the term “nothing to fear but fear itself” Called special session of Congress Banking system saved from collapse – closed all banks - strong banks saved, weak eliminated – gave money to strong banks and FDIC Fifteen major laws provided relief Tennessee Valley Authority was the most ambitious one – jobs, electricity and modernization to rural South New Deal aimed to reform and restore, not nationalize, the economy

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The Tennessee Valley Authority

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Roosevelt and Recovery National Recovery Administration National economic planning – Industries formulated guidelines and codes to eliminate cutthroat competition, ensure labor peace – Codes favored big business, – NRA ruled unconstitutional because it favored large corporations – not small ones

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Roosevelt and Recovery Agricultural Adjustment Act of 1933 – Farmers paid to take land out of cultivation – farmers must cut production – Prices increased, mainly because of government payments, but Dust Bowl helped by cutting supply – Sharecroppers, tenant farmers dispossessed – Found unconstitutional in 1936 – mainly helped large farms not small ones

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Roosevelt and Relief 1933: Harry Hopkins placed in charge of Relief programs to give aid to unemployed – seen as “color blind” 1933: Civilian Conservation Corps (CCC) provided employment to young people 1935: Works Progress Administration (WPA) placed unemployed on federal payroll Programs never sufficiently funded

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Roosevelt and Reform 1933–1934: Focus on immediate problems 1935: Shift to permanent economic reform,

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Challenges to FDR Critics of FDR demanded radical reforms for small guy Father Charles Coughlin advocated nationalizing banks, anti-Semitism Francis Townsend called for $200 per month pensions to all those over 60 if they spent it within the month Huey Long and the Share the Wealth Clubs called for redistribution of wealth by seizing private fortunes – popular with those not benefiting from New Deal

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Social Security 1935: Social Security Act passed – most significant reform of New Deal Criticisms: – Too few people would collect pensions – Unemployment package inadequate – Too conservative Passed because of duty to help unemployed, aged, and handicapped

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Labor Legislation 1935: Wagner Act – Allowed unions to organize and collectively bargain – New Deal good for Unions – Outlawed unfair labor practices 1938: Fair Labor Standard Act – Maximum hour – Minimum wage – Rural Electrification Administration brought electricity to 90% of farmers who did not have it in 1930

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Impact of the New Deal Had a broad influence on the quality of life in the U.S. in the 1930s Helped labor unions most Helped women, minorities least Harry Hopkins helped minorities

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Rise of Organized Labor 1932: National Recovery Act spurred union organizers Congress of Industrial Organization (CIO) formed by John L. Lewis CIO unionized steel, auto industries 1940: CIO membership hit 5 million, 28% of labor force unionized Promoted all workers – not just skilled

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The New Deal Record on Help to Minorities Crop reduction program allowed whites to fire or evict blacks, Hispanics Public works programs helped by providing employment New Deal figures convinced minorities that the government was on their side 1934: Indian Reorganization Act gave American Indians greater control

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands Women at Work Position of women deteriorated in the ‘30s – Jobs lost at a faster rate than men – Hardly any New Deal programs help Progress in government – Frances Perkins, Secretary of Labor, the first woman cabinet member – Women appointed to several other posts – Eleanor Roosevelt a model for activism

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands End of the New Deal 1936: New Deal peaked with Roosevelt’s reelection and brought about powerful political coalition Blacks shifted from Republican to Democrat (FDR) because FDR hired Blacks in cabinet and Harry Hopkins Congress resisted programs after 1936 New Deal lasted 5 years

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The Election of 1936 FDR’s campaign – Attacked the rich – Promised further reforms – High point of New Deal – downhill after that Democrats won majorities in both houses of Congress FDR coalition: South, cities, labor, ethnic groups, African Americans, poor

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The Supreme Court Fight Supreme Court blocked several of FDR’s first-term programs 1937: FDR sought right to “pack” Court and remove threat to New Deal Congressional protest forced retreat – even Democrats against “packing” the Court FDR’s opponents emboldened

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The New Deal in Decline 1936: Cutbacks for relief agencies 1937: Severe slump hit economy Roosevelt blamed Programs require massive spending that could not be sustained Some feel FDR was too conservative and should have spent more 1938: Republican party revived

Copyright ©2011, ©2007, ©2006 by Pearson Education, Inc. All rights reserved. America: Past and Present, Ninth Edition Divine Breen Frederickson Williams Gross Brands The New Deal and American Life Overall New Deal – Slow and halting New Deal’s limitations: – Depression not ended – Economic system not fundamentally altered – Little done for those without political clout Achievements: – Wagner Act helped labor – Political realignment of the 1930s – Most important was Social Security Act