The New Deal Chapter 19 Objective 9.5 Assess the impact of New Deal reforms in enlarging the role of the federal government

“The only thing we have to fear is fear itself” Franklin D. Roosevelt 1933-1945 His inauguration speech Struck with polio which crippled his legs (in his mid adult life) – he worked hard at exercising his legs to gain muscle control and was finally able to walk with braces on his legs with the help of a cane Elected Governor of NY where he became known as a political official who made reforms to help Americans in need By the time he was inaugurated, most of the nation’s banks had closed – 1 in 4 were unemployed & economy was in shambles “The only thing we have to fear is fear itself”

The Election of 1932 Worst year of the Depression to that point. Democrats & Franklin Roosevelt carried all but 6 Republican states (60% vote). FDR promised a “new deal” for the American people= *New Deal became the name of his policies to end the Depression. ** The 3 R’s of the New Deal: Relief, recovery, & reform. *FDR’s advisor’s- “the brain trust”

FDR THE MAN Only child of a wealthy NY family– cousin to Theodore Roosevelt Educated at Harvard & Columbia Law School 1920- VP candidate on Democrat ticket & lost 1921- diagnosed with Polio; eventually had to wear leg braces & used a wheel chair. 1928- Elected Governor of NY Eleanor Roosevelt- his wife= most active first lady in US History (had a weekly Newspaper column, traveled the country, took up causes of the underprivileged.

Roosevelt’s Administration Eleanor Roosevelt Helped bring changes in the White House & the Democrat party – change in demographics The Black Cabinet Included several African Americans he appointed Frances Perkins – 1st Woman Cabinet member - Secretary of Labor Prior to the Great Depression most Democrats were white Southerners & Irish immigrants After Roosevelt entered the office the Democrats grew to include African Americans, laborers, ethnic minorities, women & progressives

In the 1920s, which economic factor was the key cause of the Great Depression? Lack of investment in the stock market Attempts by the US to promote free trade Failure to develop new consumer goods industries Overproduction of farm products and manufactured goods

1st 100 Days *Bank Holiday Emergency Banking Relief Act Closed banks until Congress could pass legislation that would aid banks Emergency Banking Relief Act Required federal officials to survey banks & approve their financial soundness *Fireside Chats Weekly radio address Let Americans know what the government was doing to help the economy Meant to instill confidence in Americans again He was able to push through more legislation than most presidents did in their full terms Presidents today still give a weekly radio address

1st 100 Days – Stock Market & Banks Securities Act Required companies to provide complete & truthful information to investors *Securities & Exchange Commission (SEC) Created to regulate the stock market & prevent fraud *Glass Steagall Act Separated commercial banks & investment banks Commercial banks couldn’t invest deposited money in stock market *Federal Deposit Insurance Corporation (FDIC) Provides government insurance for bank deposits up to $100,000 Results: Greatly increased American confidence in banks

After a terrible drought struck, the Great Plains became known as what? Oz The Breadbasket The Dust Bowl The Oakies

1st 100 Days - Farms Agricultural Adjustment Administration Government would pay farmers a subsidy to not raise certain livestock Effect – farm surplus fell greatly, prices rose & farmers income rose by 50% Large farms benefit but sharecroppers became homeless because owners took their land out of production first

1st 100 Days - Manufacturing National Industry Recovery Act (NIRA) Suspended antitrust laws Allowed business, labor & government to set up rules for each industry National Recovery Administration (NRA) Blue eagle Industrial recovery Consumers urged to buy products with the eagle This pressured companies to go along with their policies Effect – Lost support as manufacturing businesses failed – Supreme Court declared it unconstitutional in 1935

1st 100 Days – Relief Programs Homeowners Corporation Bought mortgages of homeowners behind in their mortgages & restructured them at lower interest rates Farm Credit Administration (FCA) Helped farmers refinance their loans Civilian Conservation Corp (CCC) Offered young men jobs in forestry keeping up national parks & reservoirs CCC - Shelter Belt – 200 million trees planted from Texas to North Dakota to prevent a repeat of the Dust Bowl – also taught their recruits to read & write – closed down in 1942 – put 3 million men to work – helped 80,000 Native Americans reclaim land they owned – 250,000 veterans were among the CCC – also known as Roosevelt’s Tree Army

1st 100 Days – Relief Programs Federal Emergency Relief Administration (FERA) Sent money to state & local governments for relief projects Public Works Administration Began a series of construction projects – highways, dams, sewage, water & schools Civil Works Administration Hired government workers to build airports, roads, schools, playgrounds, parks & athletic fields Civil Works Administration ended after it spent too much money Effect of 1st 100 days: Change in the spirit of the American people

The Second New Deal More programs & reforms to speed up recovery Launched by Roosevelt in 1935 right before the election to help get him reelected

Criticisms of the New Deal Republicans Too many regulations on businesses Expansion of federal government at expense of states’ rights Deficit Spending – no balanced budget Democrats Roosevelt hadn’t gone far enough Wanted shift of wealth from rich to poor The economy showed only slight improvement under the New Deal after 2 years – criticism started to grow Republicans have always wanted a balanced budget

Other Criticisms American Liberty League Huey Long Father Coughlin Business leaders organized to oppose New Deal Huey Long Governor of Louisiana Created programs to help the poor but became corrupt Threatened to run against Roosevelt Father Coughlin Catholic priest in Detroit Popular radio show Thought the New Deal was too moderate

Which of the following is not a New Deal reform that exists today? Social Security Securities & Exchange Commission Project #1 FDIC

The Townshend Plan Dr. Francis Townshend Government should pay citizens over 60 years old a pension of $200/month & in return those citizens should retire Idea was to get older Americans to give up their jobs so more jobs would be available to younger people

The Supreme Court & the New Deal May 1935 Schecter Poultry Company v. US- Supreme Court unanimously struck down authority of NRA. Court ruled that Constitution did not allow Congress to delegate its powers to the president. FDR was worried that the Supreme Court would eventually strike down all of his New Deal! FDR decided to push through a series of 2nd New Deal programs.

Programs of 2nd New Deal *Works Progress Administration Built roads, highways, public buildings & parks Federal Project Number One Division of WPA offered work to artists, musicians, actors & writers *Social Security Act Unemployment system, retirement & disability pensions, child welfare benefits Federal Project Number One – controversial – Why? - things that weren’t needed - Also known as Project #1 - Slave Narratives funded by this program

*The Wagner Act (1935) AKA National Labor Relations Act Guaranteed workers the right to organize unions & to bargain collectively (through union reps). Set up the National Labor Relations Board to supervise union elections, investigate employers. Set up binding arbitration- union members could take complaints to a neutral third party, third party listened to both sides then made a decision.

Industrial Unions National Labor Relations Board Certified unions Authorized to investigate employer actions Committee for Industrial Organization (CIO) Organized industrial unions Focused on steel & auto workers Sit down strikes Workers sat down on the job Workers actually would stop working and sit down Flint, Michigan – GM workers sit down & strike – 44 days stayed in the plants – Dec. 30, 1936 – Feb. 11, 1937 Women workers were sent out when the sit-down started but were integral in their actions as picketers, cooks and members of the Women’s Emergency Brigade that was dispatched for union support at hot spots. At times, these women used themselves as human shields between police and strikers

What prevented banks from being closed completely because of bank runs? New Deal Bank holiday Gold standard Fireside chats

The New Deal Coalition 19 Sec. 3--FDR wins a 2nd Term

The Election of 1936 Republican Alfred Landon (Gov. of Kansas)- liked some New Deal programs but, felt businesses were being shackled by government. Democrat Franklin Roosevelt- voters liked the New Deal- remained popular= WON REELECTION!! WON 60% OF POPULAR VOTE; CARRIED ALL BUT 2 STATES ** New Deal Coalition- FDR won with help a Blacks who joined working class whites, farmers, ethnic minorities, women, new immigrants, progressives, & intellectuals. * Blacks shift from voting Republican to Democrat Jan. 1936- Supreme Court declared the AAA unconstitutional; FDR feared other New Deal programs would be struck down.

Court Packing Plan Supreme Court declared some of FDR’s legislation unconstitutional FDR’s Plan- for every justice over age 70- FDR could appoint a new justice (possible to add 6 justices) Many people (Republican & Democrat) opposed his plan- seen as a power grab. Court backed off his programs & the plan died Hurt FDR’s reputation Encouraged Conservative Democrats to start working with Republicans Roosevelt claimed it was only 9 justices in the way of what the American people wanted Why would he want more justices on the Supreme Court?

Unemployment (% labor force) Economics Unemployment (% labor force) Year Lebergott Darby[61] 1933 24.9 20.6 1934 21.7 16.0 1935 20.1 14.2 1936 16.9 9.9 1937 14.3 9.1 1938 19.0 12.5 1939 17.2 11.3 1940 14.6 9.5 1941 8.0 1942 4.7 1943 1.9 1944 1.2 1945 Recession of 1937 FDR cut spending programs that put people to work. Surge in unemployment Balance budget or create jobs? John Maynard Keynes Keynesian economics Government should spend heavily to jump start the economy Roosevelt brought back programs Keynes became the leading influencer of economics in the western world – even made the cover of Time Magazine in 1965

Last New Deal Reforms National Housing Act Provided money for builders to build low cost housing Farm Security Administration Gave loans to sharecroppers to purchase farms Fair Labor Standards Act Provided more protection for workers, abolished child labor & established a 40 hour work week, & minimum wage 25 cent/hour. 1938- Southern Democrats & Republicans began blocking any new programs= New Deal Ends. Former programs created problems for sharecroppers as they were kicked off land by the owners

New Deal Legacy By 1939 – New Deal ends The Broker State Federal government expected to step in & settle disputes, look after Americans & protect citizens’ interests Creation of a safety net for average Americans in times of economic crisis Increased Federal power 1939 – Congress began fighting the New Deal Critics argue the New Deal made the government too powerful