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

2. Franklin D. Roosevelt’s Appeal
In 1932 presidential election, FDR was perceived as a man of action.
Hoover was viewed as a “do-nothing president.”
Norman Thomas, the Socialist candidate, was viewed as a radical.
Results: a landslide for Democrats and a mandate to use government as an agency for human welfare.

3. FDR & Democrats create a powerful coalition of rural farmers, urban factory workers, organized labor, women, and African-Americans. Why?

4. Situation When FDR Entered Office
In March 1933, the country was virtually leaderless, the banking system had collapsed, and 1 in 4 workers had no job and no income.

5. 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.
“A new deal for the forgotten man.”

6. 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

7. “Hundred Days”
Unprecedented cooperation between Executive and Legislative branches to pass sweeping legislation to address national needs.
Some examples nicknamed the “Alphabet Soup” Fireside Chats, Bank Holiday, CCC, Gold Standard, FERA, AAA , TVA, HOLC, NIRA, PWA - 15 major bills passed in the first 100 days.
Priming the Pump – Gov’t puts money into circulation to get the economy running again – Keynesian economic policy.

8. 3 Goal of the New Deal
1. Relief: Immediate help, provide jobs and protect farms (FERA, HOLC).
2. Recovery: Longer-term building programs that provide jobs. (CWA, PWA, WPA, TVA, CCC)
3. Reform: Change the system to protect against another G. D. ( regulate banks, SS, FDIC, SEC, Wagner Act)
Overall objective: Save capitalism.

9. FDR the “Great Communicator”
Fireside Chats – weekly (later monthy) radio broadcasts to the entire nation. Clearly explained the problem and the actions gov’t would enact to solve the hardship.
Very reassuring to the American public.
First Fireside
Chat on the Bank Holiday.

10. First New Deal (1933-1934) Emphasis: Relief
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.

11. Bank Holiday
By executive order President Roosevelt closed every bank in America in order to have bank auditors check the books.
Effect: re-established faith in the American banking system. No more bank “runs”.
The very next day, FDR removes the U.S. from the Gold Standard. Ordering a recall of all gold coins and replacing with paper currency. (1st. time since Articles of Confederation gov’t.)

12. National Recovery Act (NRA)
Purpose: recovery of industry.
Created a partnership of business, labor, and government to attack the depression with such measures as price controls, high wages, and codes of fair competition.
Blue Eagle - “WE DO OUR PART.”

13. First Agricultural Adjustment Act (AAA)
Purpose: Help farmers.
Paid farmers to reduce production of basic crops such as cotton, wheat, tobacco, hogs, and corn.
(Notice in the background)

14. Federal Emergency Relief Admin (FERA)
Purpose: Relief.
Gave money to states and municipalities so they could distribute money, clothing, and food to the unemployed.
(This is the start of Welfare.)

15. Civilian Conservation Corp (CCC)
Purpose: Relief.
Gave outdoor work to unemployed men between the ages of 18 and 25.
Conserve national, state, and local environment.
Pay check is sent home to help family.

16. Second New Deal (1934-1941) Emphasis: Reform.
Political Position: liberal.
Primary aim: permanent reform programs.
Philosophy: international economic cooperation and economic abundance.
Objectives: increased purchasing power and social security for public.
Beneficiaries: small farmers and labor.
FDR signing the SS Act 1935.
Notice Frances Perkins behind
the President.

17. Social Security Act – FICA 1935
Purpose: Reform.
Set up old-age pensions, aid to dependent children, and established unemployment insurance.
Very important!!!
The first SS check sent out.

18. 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.
Set the first minimum wage law.
Wagner Act – allow labor to
collectively bargain for contract
issues.

19. Second Agricultural Adjustment Act
Purpose: Recovery for agriculture.
Paid farmers for conservation practices, but only if they restricted production of staple crops (cotton, corn, pigs, milk, etc.)

20. U.S. Housing Authority Purpose: Recovery and reform.
Used federal funds to tear down slums and construct better housing.

21. Roosevelt, the New Deal & Minorities
Black Cabinet - FDR appointed an unprecedented 45 Afr-Am’s to federal executive departments. Met with Eleanor Roosevelt. Led by Mary McLeod Bethune.
Note: Ms. Bethune in center of “cabinet” photo.

22. FDR, New Deal & Minorities
The WPA was secretly instructed by FDR (at Eleanor’s insistence) to set aside 10% of the WPA budget for projects to benefit African-American communities.
Blacks overlooked since Reconstruction.
WPA projects were unskilled building activities led by Hopkins.
PWA projects were skilled building activities led by Harold Ickes.

23. FDR, New Deal & Minorities
Women:
1. Eleanor Roosevelt – FDR’s closest advisor and his “moral compass” on social issues.
2. Francis Perkins – Secretary of Labor (1st. woman cabinet member)
3. Ellen Woodward - Women’s director of FERA.

24. The New Deal on Trial NEW DEAL
By 1935, political disunity was evident. Critics on the right (conservative) and the left (radical).
NEW DEAL

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

26. Conservative Opponents – “the Right”
U.S. Supreme Court – by 1935 the S.C. began to hear challenges to several New Deal programs. The S.C. overturned the NIRA (NRA) in the Schecter Poulty case and the AAA on tax issues. In all, the S.C. used its power of judicial review to overturn 8 New Deal Programs.

27. Liberal Opponents – “the Left”
Radical opponents said the New Deal did not go far enough. They were demagogues (rabble-rousers) and had popular followings, so FDR was concerned.

28. Senator Huey Long (LA)
Senator Huey Long – The New Deal did not do enough. He proposed a share the wealth plan (gov’t income of $5,000 for every American, a house, a car and a radio financed by confiscating wealth of people who made over $5 million per year).
Very radical (socialistic).
The “King Fish.”
“Every man a King”

29. Father Charles E. Coughlin
Father Charles Coughlin was a radio priest from Detroit. His broadcasts were called the “Golden Hour of the Little Flower.” He claimed there was an international bankers conspiracy and Jews were responsible. He advocated nationalization of banking and currency and national resources and demanded a “living wage.”

30. Dr. Francis E. Townsend
Dr. Francis E. Townsend was an elderly physician from CA. He had a plan for the federal government to pay $200 per month to unemployed people over 60.
(Social Security)
This program would help the retired poor and stimulate the economy.

31. Moderate Legislation
FDR sponsored moderate legislation to silence radical opposition:
Revenue Act of 1935 – Response to Huey Long. Increased taxes on large incomes and corporations.
Glass-Steagall Act 1935 – Response to Coughlin. Extended federal control over private banking practices.
Social Security Act of Response to Townsend. Included provisions for Social Security and unemployment insurance.

32. Election of 1936 - re-election
Can you say “landslide” victory?!

33. The Election of 1936 Candidate Party % Popular Vote Electoral Votes
FDR
Democratic
60.3%
523
Alfred E. Landon
Republican
36.56% 8
William Lemke
Radical
1.93%
Norman Thomas
Socialist
0.41% (2.21 in 1932)
Earl Browder
Communist
0.17 (0.25 in 1932)

34. The Roosevelt Coalition
Roosevelt created an alliance of Southern and mid-west farmers, urban labor, city political and labor organizers, ethnic blue collar workers, Jews, intellectuals, and African Americans.

35. Protection of the New Deal
FDR took his “landslide” victory in 1936 as a mandate from the public and decided to defend the New Deal
Court-Packing Plan (FDR proposed increasing Supreme Court from 9 to 15 members, to ”help” the 9 old men “living in a horse and buggy era.”)
Result: FDR’s greatest political blunder. Congress & Am. public outraged by his tampering with the U.S. Constitution & system of checks and balances.

36. Decline of New Deal Reform after 1937
Reasons for decline of New Deal reform after 1937:
Court-packing plan reduced FDR’s credibilty.
Recession of “Roosevelt Recession” weakened confidence in New Deal measures. Republicans gained strength in both houses.
Increasing focus on foreign affairs. (Japan in Pacific – threat to Open Door Policy and Germany/Italy in Europe and Africa.)

37. The Significance of the New Deal

38. 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.

39. Human Rehabilitation
Established the principle that government has responsibility for the health, welfare, and security, as well as the protection and education of its citizens.
Embraced social security, public health, housing.
Entered the domain of agriculture and labor.

40. 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.

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

42. 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.

47. FDR & the New Deal
Was FDR’s New Deal successful in ending the Great Depression?
What did the New Deal do?