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

2. Hoover’s Downfall lassez-faire policies
believed in a balanced national budget
seen as a “do-nothing president”
Americans turn against him: Bonus Army & Hoovervilles

3. Franklin D. Roosevelt
Americans see him as man of action, strong leader
Friendly, approachable, confident
Used the press to advantage
Open to new ideas
Two-term governor of New York
Cousin of Teddy Roosevelt
Results: landslide victory for Democrats (both presidency and Congress)

4. FDR vs Hoover 1932 Election

5. The “Brain Trust”
- FDR worked with a group of experts to create New Deal Program
- This group of experts (professors, lawyers, journalists, social workers ) became known as the “Brain Trust”

6. FDR Assumes the Presidency
March 1933: country is virtually leaderless, banking system has collapsed
20th Amendment (Feb. 1933) moved presidential elections from March to January (effort to fix “lame duck” period)
FDR Inaugural address: “The only thing we have to fear is fear itself….”

7. 3 Goals of the New Deal
Relief: immediate help for the needy, jobs for the unemployed, protection for farmers from foreclosure
Recovery: get the economy moving again
Reform: regulate banks, abolish child labor, conserve farm lands

8. First Hundred Days March 9 – June 16, 1933
Congress passed more than 15 major pieces of New Deal legislation
Significantly expanded federal government’s role in the nation’s economy

9. New Deal Programs: Alphabet Soup
Relief: short-term, get people through until economy recovers
Bank Holiday: closed all banks; could not re-open until government inspectors declared bank sound
Federal Emergency Relief Act (FERA)
Civilian Conservation Corps (CCC)
Works Progress Administration (WPA)
10,000 banks closed during Depression
Bank holiday: prevent more bank runs, increase depositors’ faith in banking system
Who has FERA? Give a summary
Same with CCC, WPA

10. Recovery
National Recovery Administration: asked businesses to voluntarily follow codes that set standard prices, production limits, minimum wages
Agricultural Adjustment Acts:
- first AAA: gov. paid farmers to plant fewer crops
- second AAA: gov. bought farm surpluses, stored in warehouses until prices went up
First AAA: what happens if fewer crops produced? (supply and demand)
1936: Supreme Court declares AAA unconstitutional

11. Reform
1933: Federal Deposit Insurance Corporation (FDIC): insured deposits so people would not lose their money if bank failed
1933: Tennessee Valley Authority (TVA): built government-owned dams to control flooding, bring electricity to poverty-stricken Tennessee River Valley
1934: Securities and Exchange Commission: regulate stock market to prevent fraud and another crash
1935: Social Security Act: gave workers unemployment insurance, pensions, insurance to families if workers died early
TVA: some feared TVA was a form of socialism because the government owned the dams

12. Fireside chats – radio talks about issues of public concern; explained New Deal; Americans felt like FDR
was speaking
directly to them; gave them hope and confidence in leadership

13. Prohibition Repealed - 1933
21st Amendment: ends Prohibition
-government can collect taxes on liquor, use it to help national economy

14. Concerns About the New Deal
- policy of deficit spending (spending more money than government receives in revenue)
- FDR felt this was a necessary evil that had to be used to help fix economic crisis
- supported by British economist John Maynard Keynes
- opposite of laissez-faire

15. Criticisms of Conservative Opponents
American Liberty League
said New Deal violated rights of individuals and property
added to national debt
wasted money on relief
and encouraged idleness
Gave the president too much power

16. FDR Opponents: Senator Huey Long (Louisiana)
planned to run for president
Advocated Share-Our-Wealth plan
guaranteed annual income of at least $5,000 for every American
financed by confiscating wealth of people who made over $5 million per year
Slogan: “Every Man a King!”
Very popular – 1935 claimed 7.5 million members of Share-Our-Wealth clubs
Killed by Dr. Carl Weiss at a rally

17. 1936 Election

18. Greatest Threat to New Deal: US Supreme Court
1935 & 1936
- National Industrial Recovery Act (NIRA) & Agricultural Adjustment Act (AAA) ruled unconstitutional
(NIRA = gives president power to regulate businesses that operate within states)
- Supreme Court rules that Congress cannot give presidents more power than the Constitution gives them (even during national emergencies)
NIRA: president sets up codes of fair practice to regulate businesses that operate within states

19. FDR Attempts to Protect New Deal
FDR afraid Supreme Court might rule that other New Deal programs are unconstitutional
He tries to protect New Deal programs by:
1937: Court-Packing Scheme
- plan says presidents can add a new Justice for every Justice over 70 ½ yrs old
- would increase court from 7 members to 15
- FDR would have been able to add SIX new Justices
Most of the Supreme Court justices were over 70; FDR thinks they are out of touch with what the country really needs
Adding 6 Justices means FDR would have control of Supreme Court (conflicts with separation of powers, checks and balances)

20. Legacy of New Deal on Government
Responsibilities of government:
-health, welfare, security, & protection & education of citizens
-make sure national economy runs smoothly
Expansion of democracy:
-concept of democracy now includes economic security & social justice in addition to political rights
Role of government:
-more involvement in citizens’ lives; more regulations, increased taxes to pay for government programs