 United States History

 Political Career o NY Senate, Assistant Sec of Navy under Wilson, NY Gov.  Personal Life o Battle with polio o Wife Eleanor active in politics  What America liked about him: o Energy and Optimism o Creation of Relief Aid to Unemployed in New York o Confidence he could improve economy

 Roosevelt’s policies for ending the Great Depression  At Roosevelt’s Inauguration o Most of the nations’ banks on holiday (closing before bank runs would close them down) o 25% of Americans unemployed  “The only thing we have to fear is fear itself…This nation asks for action, and action now”

 The Hundred Days o March 15, 1933 to June 16, 1933 o Congress passed 15 majors acts to resolve economic woes  Roosevelt favored government intervention in economy  Priority #1: Banking System o Emergency Banking Relief Act o Securities and Exchange Commission (SEC) o Federal Deposit Insurance Corporation (FDIC)

 FDR creates programs to help with debt o Why? To give people the ability to spend in the economy and not worry as much about debts on mortgages, farms, etc. o Home Owners’ Loan Corporation o Farm Credit Administration  Government Control in the Economy & Environment o Agricultural Adjustment Act o National Industrial Recovery Act & The National Recovery Administration o Tennessee Valley Authority

 FDR believed consumption was key to economic growth and unemployed needed a means to become consumers o Thus, he created programs to get people into the workforce  Civilian Conservation Corps  Federal Emergency Relief Administration  Public Works Administration  Civil Works Administration

 Did not restore prosperity in America, but did improve confidence in banks, saved homes/farms, helped combat unemployment  Americans embraced FDR’s willingness to experiment and change, which helped restore Americans’ faith in their government and nation overall

 Government Programs Cost $$$ o How to pay? Deficit Spending  Criticism about hurting business and states’ rights o Creation of American Liberty League to teach necessity of respect for rights of person and property  Challenges to the New Deal o Huey Long: Louisiana governor championing downtrodden (Share Our Wealth) o Father Coughlin: Nationalize banking and inflate the currency (National Union for Social Justice) o Francis Townsend: Pensions with stipulations on spending to stimulate economic growth and get more people in the workforce

 Works Progress Administration  Wagner Act and National Labor Relations Board o Binding Arbitration: Neutral Party hears arguments and decides on the issues o CIO (Committee for Industrial Organization) formed in 1935 o Sit-down strike: Stop working inside plant to prevent replacement workers from taking jobs  Social Security Act

 African Americans join Democratic Party o Eleanor Roosevelt & Policies of FDR help fuel switch o African Americans in administrative positions  Women join New Deal Coalition o Frances Perkins: first woman in Cabinet post (Secretary of Labor) o Appointed many other women to federal posts  Role of Supreme Court o Court rulings striking down parts of New Deal piece by piece o “Court-packing plan”

 Recovery on track with output approaching 1929 levels, unemployment improving…belief worst is over o FDR decides it is time to balance budget and cuts some programs like the PWA and WPA o By end of 1937, 2 million people out of work  What to do now? o Morgenthau: Balance budget and cut spending o Keynesianism: Spend heavily in a recession to jumpstart economy

 National Housing Act  Farm Security Administration  Fair Labor Standards Act  By 1939, New Deal had come to an end with Congressional takeover by opponents of New Deal

 Limited success o Unemployment still high o Recovery not complete  Sense of Security o Banks o Business o Individuals  Greater Role in Economy o Mediation between groups (broker state) o “Safety Net” against economic disaster  Critics o Dependency on Government o Government too powerful