1. The New Deal

2. Review: How did we get here?
WWI left much of the economy operating at a high level. (Production way up)
No one bothered to change how things operated and instead ignored it because its all good….
All good…= Roaring 20’s and “superficial prosperity
Roaring 20’s, a time of ignoring consequences

3. Review: How did we get here?
Result of ignoring consequences….
Great Depression
Causes
Old, Decaying Industrial Base
Farming Crisis
Easy Credit
Unequal distribution of Income
Then the Stock Market crashed and ignited the fire that was the Great Depression.
All blame on Hoover

4. Election of 1932 Hoover received majority of blame.
Roosevelt knew when he won the presidency when he was nominated by the Democratic Party.

5. New President, New Deal
Franklin Roosevelt ran on the promise “a new deal for the American people.”
Roosevelt’s New Deal focused on
three goals:
relief for the needy
economic recovery
financial reform

6. The Three R’s
Relief: immediate act of allowing people to retreat from a bad situation (unemployment, loss of home, welfare)
Recovery: regaining something that was lost or at least beginning to fix what was wrong while having some relief to those harmed. (something that changes what is normal both now to help make things better)
Reform: a longer term change to fix something that was wrong. (correction of a problem so that it is not an issue in the future.

7. Taking Office
“let me assert my firm belief that the only thing we have to fear is fear itself…”
This exemplified FDR’s belief that the only thing that would obstruct his New Deal is the fear of change that we saw so much of in the Roaring 20’s.

9. Roosevelt Philosophy
Roosevelt differed greatly in beliefs from Hoover. FDR was much more willing to allow government to get involves to fix the problem.
Roosevelt put his New Deal in place during his first Hundred Days creating 15 major pieces of legislation.

10. The New Deal First, fix the broken banking/financial system.
Bank Holiday
Put all banks under government review
First fireside chat, restored public confidence in banks.
Result: Reorganized banking system, ensured money in banks, and helped make companies more responsible for their stocks.
RECOVERY and REFORM

11. The New Deal Help the American People
Help Farmers -> crop prices by production
Create Jobs -> Create jobs for the unemployed by allowing them to work through government programs.
Provide funds to help needy
Give funds to states to create jobs
Helped people keep their homes by giving them loans to pay their debts
RELIEF and RECOVERY

12. The Second New Deal
The Second New Deal looked to build on reforms in his first hundred days in office
FDR’s wife Eleanor Roosevelt encouraged him to help the “forgotten man” or the bottom of society (take reforms further)
Second New Deal took government involvement even further
REFORM

13. The Second New Deal Labor Relations-> Beyond Relief to Reform
Focused not only on the labor force but retired workers
Wagner Act: Government supported rights of workers
Fair Labor Standards Act: Established maximum hours and minimum wages for workers
Social Security Act: Insurance for retirees, unemployment compensation, aid to families with dependent children and the disabled.
REFORM

14. Critics of FDR’s New Deal’s
Liberty League: Conservative group of wealthy businessmen but included Alfred Smith and John Davis (both former Democratic nominees for President)
They believed New Deal programs violated individual rights and private property.
They also believed that FDR was attempting to establish a dictatorship

15. Critics of FDR’s New Deal
Father Charles Coughlin
From Detroit, was a radio priest that gave sermons that discussed political and economic issues as well as religion.
He initially supported the New Deal, however turned on FDR when he believed FDR wasn’t going far enough
His anti-semetic views and the criticism of FDR led to his downfall.

16. Father Coughlin

17. Critics of FDR’s New Deal
Dr. Frank Townsend
A medical doctor who did not believe FDR’s New Deal went far enough, especially when dealing with the elderly
He proposed a full pension plan for all elderly retirees. His plan was much to expensive to work
FDR used some ideas from it in his Social Security Act

18. Dr. Townsend

19. Critics of FDR’s New Deal
Senator Huey Long
Was also an early supporter of the New Deal
Long had Presidential aspirations so he tried to go even further than FDR by proposing a Share the Wealth program.
The popularity of that program was growing greatly however he was assassinated in 1935 and was never able to challenge FDR for president.

20. Senator Long

21. Successful Critic of FDR’s New Deal
Supreme Court
The Supreme Court is responsible to make sure all the things that government does is allowed by the Constitution.
The Court struck down two of FDR’s New Deal programs they deemed unconstitutional.
FDR worried that the Court may dismantle more of his New Deal so he tried to “pack the court” with people who would support him. This outraged many.
In the end, he was able to change the Court the legal way and they began supporting his New Deal.

22. Court Packing Bill