1. FDR’s plan to end the Great Depression
The New Deal

2. Election of 1932 Republicans re-nominated Hoover
Tarnished by Depression
Conservative agenda towards the economy
Rugged Individualism – gov’t should not help people unemployed
Believed gov’t controls only slowed economic recovery
Community Chests – privately organized welfare

3. Still under Hoover… Reconstruction Finance Corporation (RFC)
Loans from Federal treasury to banks & business – 5,000 firms in 1932
Bonus Army – WWI vets set up tent city in Wash DC demanding $$
Hoover sent in troops to remove them
Under General Douglas MacArthur
Nicknamed the “Battle of Washington”

4. Democrats in 1932 Al Smith wanted to run again (NY, Catholic)
Franklin Delano Roosevelt
Harvard & Columbia, Assist Sec of Navy, Governor of NY, many similarities to his cousin (TR)
Struck with polio in 1921 – recovery made him stronger – most did not know of the paralysis
Won the nomination & band played “Happy Days are Here Again”
Slogan: “I pledge you…a new deal for the American People!”

5. Roosevelt won by a landslide
472 electoral votes to 59 for Hoover

6. First 100 Days 3Rs – relief, recovery, reform
Bank Holiday – closed every bank until it had been checked & found solvent (Stable enough to stay open)
Emergency Banking Bill
Most banks closed for a week
Fireside Chats – radio speeches to explain to public what he was doing
Main reason people trusted him
Proposed New Deal programs
3Rs – relief, recovery, reform

7. Critics of the New Deal
American Liberty League – Republicans & conservative Democrats wanted to defend laissez – faire policies – against any gov’t regs on them
Many major corporations joined (DuPont, GM)
Huey Long – “Share Our Wealth Program”
Extremely liberal Democrat
Federal gov’t confiscate all income over $1 million to give a $5,000 home and $2,000/yr income
Began to run for Pres…was assassinated

8. More criticism… Father Charles Coughlin – on radio – Catholic
Usually covered politics not religion
Claimed FDR in bankers’ pocket
Prejudiced against Jews, felt they were benefiting
Dr. Francis E. Townsend – Townsend Plan
California physician
Federal $ to elderly - $200/ month over 60 yrs old
Plan dropped when realized ½ of gov’t $ would go to 1/11th of the population
Upton Sinclair – Socialist cand. Gov of CA – EPIC/ “End Poverty in Calif” - lost election

9. Supreme Court Actions
1935 Court declared 5 New Deal programs unconstitutional (AAA, NRA, etc)
1936, four other decisions against FDR, including minimum wage law from NY
FDR’s response was to “pack the court”
If a justice didn’t retire at 70, pres had the right to add a new justice for each over 70 (not past 15)
FDR went to 12 justices & be pro- New Deal
Senate killed bill – his 1st defeat in Congress
Will actually get to appoint 7 new justices legally anyway

10. Results…
FDR’s fight with Court did lasting political damage & weakened his popular support
However the Court will uphold the NLRB and Social Security
Ballooning federal deficit
Depression still happening/ unemployment
Congress demanded & got a balanced budget for 1938 – cut many programs
Fair Labor Standards Act – last big win for FDR – est federal minimum wage/ max hours

11. How did the New Deal change the US?
1- Expanded power of the fed gov’t
2 – Extended power of the president
Probably strongest President since Lincoln
3 – Deficit spending by gov’t is now common
Br. Economist John Maynard Keynes favored this
4 – Fed gov’t running social programs
5 – Gov’t demonstrated concern for workers
6 – Conservation movement gained strength