FRANKLIN D. ROOSEVELT AND THE NEW DEAL America: Past and Present Chapter 26

The Great Depression 1920s optimism drives increase in expectations of a better way of life After 1929 despair sets in

The Great Crash soaring stock prices attract individual, corporate investment stock market crashes – directly affects 3 million – credit crunch stifles business Businesses lay off workers Demand for consumer goods declines

Unemployment,

Effects of the Depression Hardship affects all classes The middle class loses belief in ever- increasing prosperity Thousands of young homeless, jobless

Fighting the Depression Republican attempts to overcome catastrophe flounder Depression gives Democrats opportunity to regain power

Hoover and Voluntarism Hoover initially seeks solution through voluntary action, private charity Eventually aids farmers and bankers Resists Democratic efforts to give direct aid to the unemployed – perceived as indifferent to human suffering – programs seen as incompetent

Bank Failures,

The Emergence of Roosevelt Franklin Roosevelt – born to wealth and privilege – crippled by polio – elected governor of New York – talented politician defeats Hoover with farmer- worker-immigrant-Catholic coalition

The Hundred Days Banking system saved from collapse Fifteen major laws provide relief New Deal aims to reform and restore, not nationalize, the economy

The Tennessee Valley Authority

Roosevelt and Recovery National Recovery Administration – industries formulate codes to eliminate cut- throat competition, ensure labor peace – codes favor big business, unenforceable – NRA ruled unconstitutional Agricultural Adjustment Act of 1933 – farmers paid to take land out of cultivation – prices increase – sharecroppers, tenant farmers dispossessed

Roosevelt and Relief Harry Hopkins placed in charge of RFC to direct aid to unemployed Civilian Conservation Corps provides employment to young people Works Progress Administration place unemployed on federal payroll Programs never sufficiently funded

Roosevelt and Reform focus on immediate problems shift to permanent economic reform

Challenges to FDR Father Charles Coughlin advocates nationalizing banks, anti-Semitism Francis Townsend calls for wealth redistribution from young to the elderly Huey Long calls for redistribution of wealth by seizing private fortunes

Social Security Social Security Act passed Criticisms – too few people would collect pensions – unemployment package inadequate Establishes pattern of government aid to poor, aged, handicapped

Labor Legislation Wagner Act – allows unions to organize – outlaws unfair labor practices Fair Labor Standard Act – maximum hour – minimum wage

Impact of the New Deal Had a broad influence on the quality of life in the U.S. in the 1930s Helps labor unions most Helps women, minorities least

Rise of Organized Labor National Recovery Act spurs union organizers Congress of Industrial Organization (CIO) formed by John L. Lewis CIO unionizes steel, auto industries CIO membership hits 5 million, 28% of labor force unionized

The New Deal Record on Help to Minorities Crop reduction program allows whites to fire or evict blacks, Hispanics Public works programs help by providing employment New Deal figures convince minorities that the government is on their side Indian Reorganization Act gives American Indians greater control

Women at Work Position of women deteriorates in ‘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

End of the New Deal New Deal peaks with Roosevelt’s reelection Congress resists programs after 1936

The Election of 1936 FDR’s campaign – attacks the rich – promises further reforms – defeats Republican Alf Landon Democrats win lopsided majorities in both houses of Congress FDR coalition: South, cities, labor, ethnic groups, African Americans, poor

The Supreme Court Fight Supreme Court blocks several of FDR’s first-term programs FDR seeks right to "pack" Court Congressional protest forces retreat FDR’s opponents emboldened

The New Deal in Decline cutbacks for relief agencies severe slump hits economy Roosevelt blamed, resorts to huge government spending Republican party revives

The New Deal and American Life New Deal’s limitations – depression not ended – economic system not fundamentally altered – little done for those without political clout Achievements – Social Security, the Wagner Act – political realignment of the 1930s