1. Franklin D. Roosevelt and the New Deal Redefined Democracy: Political Rights  Economic Security  Social Justice

2. Causes of the Great Depression  Agricultural overproduction  Industrial overproduction  Unequal distribution of wealth  Over-extension of credit  International economic situation

3. How Herbert Hoover Dealt with the Crisis  He played the game of confidence economics and just kept saying: “Prosperity is right around the corner.”

4. Reasons for Ineffectiveness  Hoover thought business should be self-regulating.  He had a mania for a balanced budget.  He lacked political finesse.

5. Situation When FDR Entered Office  In March 1933, the country was virtually leaderless and the banking system had collapsed.

6. FDR Restored Confidence  In his inaugural address, he said “The only thing we have to fear is fear itself….”  He promised vigorous leadership and bold action, called for discipline and cooperation, expressed his faith in democracy, and asked for divine protection and guidance.

7. FDR’s Personal Qualities  He was a practical politician who practiced the art of the possible.  He was a charismatic person who exhibited a warmth and understanding of people.  He knew how to handle press by focusing attention on Washington.  He provided dynamic leadership in a time of crisis.  He was willing to experiment

8. Purposes of the New Deal  Relief: to provide jobs for the unemployed and to protect farmers from foreclosure  Recovery: to get the economy back into high gear, “priming the pump”  Reform: To regulate banks, to abolish child labor, and to conserve farm lands  Overall objective: to save capitalism

9. First New Deal (1933-1934)  Emphasis: reform  Political Position: conservative  Primary aim: economic recovery  Philosophy: economic nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity)  Objectives: higher prices for agriculture and business  Beneficiaries: big business and agricultural business

10. Civilian Conservation Corp (CCC)  Purpose: relief  Gave outdoor work to unemployed men between the ages of 17 and 29  They received $30 per month, but $22 went back to the family

12. ProgramsAgencyPurpose Civilian Conservation Corps (CCC) Provided jobs to young, unmarried men (and later, women) to work on conservation and resource development projects. Works Progress Administration (WPA) Gave the unemployed work in building construction and arts programs. Public Works Administration (PWA) Sponsored massive public works projects such as dams and hydroelectric plants. National Recovery Administration (NRA) Worked with industries to establish codes outlining fair business and labor practices. National Labor Relations Board (NLRB) Enforced provisions of the Wagner Act, which included the right to collective bargaining and other union rights. Federal Deposit Insurance Corporation (FDIC) Insured bank deposits up to $5,000. Securities and Exchange Commission (SEC) Regulated the stock market and protected investors from dishonest trading practices. Agricultural Adjustment Administration (AAA) Attempted to raise farm prices by paying farmers to lower farm output. Social Security Administration (SSA) Provided old-age pensions, disability payments, and unemployment benefits.

13. WPA Buildings in Atlanta: N. Fulton & Booker T Washington HS, GT Chem Bldg & Dorms, Cyclorama

14. TVA- Tennessee Valley Authority  Dams to control flooding & provide electricity  Replant forests, build industrial plants, create jobs, attract industry w/ cheap power  Monopoly?  Helps one of poorest regions

15. Second New Deal (1934-1941)  Emphasis: reform  Political Position: liberal  Primary aim: permanent reform  Philosophy: international economic cooperation and economic abundance  Objectives: increased purchasing power and social security for public  Beneficiaries: small farmers and labor

16. Social Security Act  Purpose: reform  Gave money to states for aid to dependent children, established unemployment insurance through payroll deduction, set up old-age pensions for retirees.

17. National Labor Relations Act  Purpose: reform  Put restraints on employers and set up a National Labor Relations Board to protect the rights of organized labor to bargain collectively with employers.

18. Reforms  Reform financial system  Insure bank deposits - FDIC  Regulate stock market – SEC (Securities & Exchange Commission)

19. The New Deal on Trial  By 1935, political disunity was evident. There were critics on the right and the left. NEW DEAL

20. Criticisms of Conservative Opponents  Conservative opponents said the New Deal went too far:  socialism (killed individualism)  added to national debt ($35 billion)  wasted money on relief and encouraged idleness  violated the constitution & states rights  increased the power of the Presidency (FDR was reaching toward dictatorship, independence of judiciary threatened, separation of powers shattered)

21. Criticisms of Radical Opponents  Radical opponents said the New Deal did not go far enough.  They were demagogues (rabble- rousers) w/ popular followings, FDR was concerned.

22. Senator Huey Long (LA)  Senator Huey Long said New Deal relief measures were mere crumbs and advocated a share the wealth plan  guaranteed income of $5,000 for everyone, financed by confiscating taxing wealthy (people making over $5 million per year).

23. Father Charles E. Coughlin  Father Charles Coughlin was a rabble-rousing radio priest from Detroit. Advocated nationalization of banking and currency and national resources and demanded a “living wage.”

24. Moderate Legislation  FDR sponsored moderate legislation to silence radical opposition, including:  Social Security Act of 1935 Included provisions for unemployables (dependent children, the disabled, blind), unemployment insurance, and old-age pensions.

25. The Election of 1936  The Election of 1936:  Made the Democratic party the majority party  Created a new Democratic coalition composed of both traditional elements and new elements  Showed that the American people rejected radical solutions to depression

27. The Roosevelt Coalition  While Republicans were still relying on their traditional base of political support (big business, big farmers, and conservatives), Democrats broadened their constituency by appealing to small farmers in the Midwest, urban political bosses, ethnic blue collar workers, Jews, intellectuals, and African Americans.

28. The woman behind the man

29. Eleanor – 6 kids, champion of civil rights, seeking solutions for un- employed, flying with Tuskegee Airmen, advocating for the UN  Persuaded FDR to stay in politics after polio  Often appeared on his behalf  Outspoken  Publically supported causes of the unemployed & WWII refugees and civils rights of women, African & Asian Americans  sometimes obviously disagreed with FDR policies  One of top 10 most admired Americans of the 20 th century

30. Protection of New Deal Accomplishments  FDR frustrated by Supreme Court  They overturned several New Deal agencies & acts  Steps FDR took to protect New Deal accomplishments:  Court-Packing Plan (proposed increasing Supreme Court from 9 to 15 members, caused in revolt in Dem. Party)  This failed  Violation of Separation of Powers??!!

31. Decline of New Deal Reform after 1937  Reasons for decline of New Deal reform after 1937:  Court-packing plan made Congress irritable.  Recession of 1937-38 weakened confidence in New Deal measures. Republicans gained strength in both houses.  Attempted purge of Democratic party failed.  Conservative Democrats were elected to office. Resentful of attempted party purge, they joined ranks with Republicans to block New Deal legislation.  Increasing focus on foreign affairs.

32. The Significance of the New Deal – Lasting Achievements

33. Physical Rehabilitation of Country  Attacked soil erosion  Built dams and planted trees to prevent floods  Reclaimed the grasslands of the Great Plains  Developed water power resources  Encouraged regional reconstruction projects like the TVA and Columbia River project

34. Human Rehabilitation  Established principle of government responsibility for health, welfare, and securityof its citizens  Embraced social security, public health, housing  Entered the domain of agriculture and labor

35. Revitalization of Politics  Strengthened executive branch  Reasserted presidential leadership  Revitalized political party as a vehicle for the popular will and as an instrument for effective action.

36. Extension of Democracy  Redefined the concept of democracy so that it included not only political rights but economic security and social justice as well.

37. Maintenance of a Democratic System  The New Deal maintained a democratic system of government and society in a world threatened by totalitarianism.  Increased size and scope of government to meet needs of the depression  Provided the leadership that enabled Congress to put through the necessary relief, recovery, and reform measures.  Sponsored moderate legislation to neutralize the popularity of radical opponents

38. Labor Unions Increase  The Wagner Act (1935) provided federal protection for unions.  Union membership rose from 3 million in 1933 to 10.5 million by 1941.  The CIO (Congress of Industrial Organizations) was est. by John L. Lewis.  The aim of this organization was to challenge conditions in industry, and their main tool was the strike.

39. An Era of Strikes  Due to the Wagner Act, many unions went on strike.  Including“Sit-down” strikes - employees refuse to leave building - simply sit down and refuse to work.  Most famous sit-down strike - Dec. 31, 1936  UAW (United Auto Workers) occupied GM’s main plant in Flint, Michigan.  GM executives turned off the heat and blocked entry to the plants so that the workers could not receive food.  Violence erupted outside with the picketers.  wives were able to get food to their husbands  GM finally gave in to negotiations.

40. New Deal’s Effect on Culture  The WPA supported unemployed artists, musicians, historians, theater people, and writers. In 1935, the program was called, “The Federal Writers’ Project.”  In the end, 10,000 artists painted some 2,000 murals, 100,000 other paintings, 17,000 sculptures, and many other works.