1. Chapter 33 The Great Depression and the New Deal, 1933–1939

2. I. FDR: Politician in a Wheelchair FDR’s personality formed because of paralysis His wife, another personal & political asset Franklin Roosevelt’s political appeal – Strong orator, popular depression governor of N.Y. Nominated by Democrats (1932) – Balanced budget – Sweeping social reforms

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4. II. Presidential Hopefuls of 1932 Franklin D. Roosevelt (Democrat) – Preached a New Deal for the “forgotten man,” Plan was vague and somewhat contradictory Herbert Hoover (Republican) – Usually campaigned from the White House Kept faith in American free enterprise, individual initiative

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6. III. Hoover’s Humiliation in 1932 1932 election – A distinct shift of blacks to the Roosevelt camp 1932 election results – 22,809,638 for Roosevelt; 15,758,901 for Hoover – The electoral count 472 to 59

7. IV. FDR and the Three R’s: Relief, Recovery, Reform The New Deal - FDR’s econ & social program – R elief. R ecovery. R eform. Hundred Days (March 9-June 16, 1933) – Nationwide banking holiday – Congress follows FDR’s lead (Rubber stamp congress) New Dealers - Embraced progressive ideas Unemployment and old age insurance, Minimum wage The conservation and development of natural resources Restrictions on child labor Tennessee Valley Authority

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10. Table 33-1 p755

11. V. Roosevelt Manages the Money Glass-Steagall Banking Reform Act 1933 – Federal Deposit Insurance Corporation (FDIC) A “managed currency” (inflation) introduced – Gold bought at increasing prices ($21-35 in 1 year) Roosevelt turned to the radio – “fireside chats” Confidence returned; banks opened their doors

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13. Figure 33-1 p756

14. VI. Creating Jobs for the Jobless Overwhelming unemployment (~25%) Civilian Conservation Corps (CCC) – The most popular New Deal “alphabetical agencies” Hard-pressed Special groups relief – Agricultural Adjustment Act (AAA) – Home Owners’ Loan Corporation (HOLC) – Civil Works Administration (CWA) (1933) Least popular program, shovel leaning, “make-work”

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16. Table 33-2 p758

17. VII. A Day for Every Demagogue The appearance of demagogues – Father Coughlin (A “microphone messiah”) – Dr. Francis E. Townsend – Senator Huey P. Long (The “Kingfish”) Links between demagogues, fascism, and crisis – Authoritarianism was the answer elsewhere Works Progress Administration (WPA) – Built public buildings, bridges, stadiums, roads, artworks – Critics said WPA meant “We Provide Alms”

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27. VIII. New Visibility for Women First Lady Eleanor Roosevelt – Variety of political / social efforts Francis Perkins – Secretary of Labor (1 st female cabinet member) Mary McLeod Bethune – Minority Affairs Director Margaret Mead – 34 books, American Museum of Natural History Pearl S. Buck – The Good Earth (1931)

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29. IX. Helping Industry and Labor The National Recovery Administration (NRA) – The most complex, far-reaching New Deal projects NRA’s “fair competition” codes – Self-made rules for both management and labor SCOTUS Schechter ruling killed the NRA The liquor industry: repeal of the prohibition – 21 st Amendment

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32. X. Paying Farmers Not to Farm Agricultural Adjustment Administration (AAA) Created “artificial scarcity” to establish “parity prices” Paid growers to reduce their crop acreage – Ruled unconstitutional in 1936 The Second Agricultural Adjustment Act (1938) Soil Conservation & Domestic Allotment Act (1936) – Farmers paid to plant soil-conserving

33. XI. Dust Bowls and Black Blizzards The Dust Bowl: Nature’s unplanned scarcity – Drought, wind, human misdeeds triggered the storms John Steinbeck, The Grapes of Wrath (1939). Indian Reorganization Act (1934) (“Indian New Deal”) – Encouraged tribes to establish local self-government – To preserve their native crafts and traditions – It helped to stop the loss of Indian lands

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35. Map 33-1 p765

36. XII. Battling Bankers and Big Business Securities and Exchange Commission (SEC) 1934: – Designed as a watchdog administrative agency The Public Utility Holding Company Act of 1935 – Designed as a watchdog administrative agency

37. XIII. The TVA Harnesses the Tennessee The Tennessee Valley Authority (TVA) (1933) – Part of “planned economy” Federally built, owned dams – Benefits Employment, cheap power, low cost housing, reforestation, better navigation, flood control – Conservative reaction to “socialistic” program Would limit program to Tennessee valley Caused westerners to want their own programs – Columbia, Colorado, and Missouri Rivers

38. Tennessee Valley

39. Figure 33-2 p767

40. XIV. Housing and Social Security Federal Housing Administration (1934) – Building industry stimulated through small loans Social Security Act (1935) – Unemployment insurance and old-age pensions – Has since expanded to include more people – Not as comprehensive as European nations – Republican opposition was bitter (“cult of leisure”)

41. XV. A New Deal for Labor Wagner Act/National Labor Relations Act (1935) National Labor Relations Board – Effective unions began to organize – Conservatives were upset (private property) Fair Labor Standards Act (1938) – Minimum-wage/maximum-hours, No child labor Congress of Industrial Organizations (CIO) – 4 mil members (1940), battled rival A.F.L. for control

42. Memorial Day Massacre @ Republic Steel (1937)

43. General Motors Sit-down Strikers, Flint, Michigan,1937

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46. XVI. Landon Challenges “the Champ” The presidential election of 1936 – Democrats renominated FDR (New Deal platform) – Republicans nominate Alfred M. Landon Attacked Franklin “Deficit” Roosevelt for his radicalism The political battle of 1936 – The most bitter campaign since 1896 “Class warfare”- the needy vs the greedy Election returns of 1936 – Popular vote was FDR 27,752,869 to 16,674,665 – The electoral count FDR 523 to 8 – Dems win veto-proof House and Senate

47. XVII. Nine Old Men on the Bench SCOTUS ultra-conservative and old (6 over 70) – 7 of 9 nominated by Republicans – FDR regarded them as conservative obstructionists Roosevelt’s failed “court packing” scheme – Increase size of SCOTUS from 9 to 15 FDR accused of trying to be a dictator

52. XVIII. The Court Changes Course “Court packing” plan was unsuccessful but… – SCOTUS became more sympathetic to New Deal It upheld the National Labor Relations Act It upheld the Social Security Act – Congress voted full pensions for justices over 70 Resignations & death unpacked the court

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54. XIX. Twilight of the New Deal FDR’s first term didn’t banish the depression – Recovery slow & ‘modest’, unemployment 25% to 15% FDR embraced John Maynard Keynes ideas – Keynesianism, use of gov’t $ to help the economy Hatch Act (1939) – Federal administrative officials can’t campaign By 1938 New Deal lost most of it’s momentum – Republicans gained seats in both houses

57. XX. New Deal or Raw Deal? Foes of the New Deal condemned – Anti-American, anti-capitalistic, socialistic nature – No balanced budget, deficit larger – Big Government - “Bureaucratic meddling” – Stat es’ rights trumped by national government Roosevelt’s leadership was denounced – “one-man supergovernment”, attempted dictatorship Failed to cure the depression

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59. XXI. FDR’s Balance Sheet New Dealers staunchly defended their record – Relieved the worst of the crisis in 1933 – Promoted the “balancing the human budget” – Averted the collapse of America’s economic system – Stopped socialism/ communism rebellion – Fairer distribution of national income achieved – Citizens regained and retained their self-respect – Debt caused by war ($40 bil-1939; $258 bil-1945) – Attacked by left & right, FDR chose a middle road – Preserved American democracy – Unwittingly girded the nation for WW II