FDR

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FDR

• Franklin Delano Roosevelt the New Deal

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Election of 1932
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Franklin Roosevelt

• Assistant secretary of the Navy
• Nominated for VP
• Governor of New York
• President in 1932

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• Roosevelt campaigned on the promise that as
  president he would attack the Great Depression by
  giving a New Deal for the American people

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1932 Democratic party platform called for

• Repealing prohibition
• Experimenting with bold new programs for social
  economic reforms
• Balancing the national budget

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• The New Deal would cause the National Debt to
  increase dramatically in the 1930s

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• One striking feature of the 1932 presidential
  election was that African Americans became a
  vital element in the Democratic party

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Roosevelt Wins

• Roosevelt 22,809,638 votes (472 electoral
  votes)
• Hoover 15,758,901 votes (59 electoral votes)

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Lame Duck Period

• Hoover tried to bind his successor to an
  anti-inflationary policy that would make much of
  the New Deal impossible

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• American economy came to a virtual halt
• Hooverites later blamed Roosevelts inactivity
  for making the Depression worse

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Happy days are here again
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FDR The New Deal
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Based on the Three Rs

• Relief
• Recovery
• Reform

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Progressive Ideals

• Legislation came from the sidetracked ideals of
  pre-war Progressivism such as

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• Unemployment Insurance
• Old-Age Insurance
• Minimum Wage
• Conservation
• Development of Natural Resources
• Child Labor Restrictions

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The Hundred DaysMarch 9-June 16, 1933

• No real plan, but showed great decisiveness,
  acted on intuition, relied on experimentation

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• FDR summons an emergency session of Congress
• The Hundred Days legislation passed in the
  first hundred days

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• Giving the president unprecedented support,
  Congress passes an enormous amount of remedial
  legislation

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• Most pressing problem facing Roosevelt was the
  banking system followed by the chaotic currency
  situation

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Banking Reform
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Banking Holiday

• Roosevelts first act as president
• March 6-10 all banks closed
• Purpose Restore faith in nations banking system

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• Took US off gold standard
• FDR ordered all gold to be surrendered for paper
  currency
• Congress canceled gold-payment clause of all
  contracts

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Emergency Banking Relief Act (1933)

• Passed the first day of the special session
• Gave FDR broad powers to reform reopen closed
  banks

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Fireside Chats

• March 12, 1933 FDR gave a Fireside Chat over
  radio to reassure people it was safe to put their
  money back in the banks
• Works confidence restored

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Glass-Steagle Banking Reform Act (1933)

• Created the Federal Depositors Insurance
  Corporation (FDIC)
• Insured depositors up to 5,000
• Now raised to 100,000

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Home Owners Refinancing Act (1933)

• Created Home Owners Loan Corporation to help
  refinance non-farm homes
• Refinanced over 1 million homes saving banks from
  foreclosures

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Federal Securities Act (1933)

• Truth in securities act
• Required stock promoters to give sworn
  information regarding stock values

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Unemployment Relief
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• Brother can you spare a dime

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Unemployment

• Unemployment Relief Act
• Created the Civilian Conservation Corps (CCC)
• Hired young men to work in government camps
  fighting fires building flood control projects

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Conservation of Natural Resources

• The CCC used to reforest control erosion in the
  National Forests

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Federal Emergency Relief Act (1933)

• Created Federal Emergency Relief Administration
  (FERA) run by Harry Hopkins
• Gave 3 billion to states for welfare to the
  unemployed

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Agricultural Programs

• First Agricultural Adjustment Act (1933)
• Created Agricultural Adjustment Administration
  (AAA)
• Paid for by taxing processors of farm goods

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• Gave subsidies to farmers who curtailed
  production or destroyed excess produce or
  livestock
• Created parity prices to create real value of
  produce before the war

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• Program put many small farmers out of work
  eventually ruled unconstitutional

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Tennessee Valley Authority (1933)

• The TVA created a massive flood control project
  on the Tennessee River

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• Created erosion abatement, navigational aids,
  hydroelectric generation dams on the Tennessee
  River
• Brought full employment to the region

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• TVA criticized for being Creeping Socialism by
  competing with private industry by selling
  electricity
• Considered most radical of the New Deal programs

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TVA MAP
TENNESSEE VALLEY AUTHORITY
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CRITICISM OF THE TVA
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Industrial Recovery Labor Reform
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National Industrial Recovery Act (1933)

• Created standards of fair competition
• Minimum wage floors maximum hours ceilings
  established

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• Labor received the right to organize
  collectively bargain
• Yellow Dog contracts outlawed restriction put
  on child labor
• Complexity of the program made it unpopular

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• National Recovery Administration (NRA)
• NRA businesses displayed the Blue Eagle

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We do our part!
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Public Works Administration (1933)

• PWA created by NIRA headed by Harold L. Ickes
• Created massive public works projects to
  modernize infrastructure (Grand Coulee Dam)

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• Law would later be ruled unconstitutional in
  Schechter v. US
• Schechter sick chicken case will lead to
  Roosevelts court packing scheme

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NEW DEAL ALPHABET AGENCIES
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Beer Wine Revenue Act

• Allowed the manufacture sale of 3.2 beer
  wine
• Put tax on its production

21st Amendment

• Passed later in 1933 repealing Prohibition

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Effects of 1st New Deal
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• Economy improves but did not recover
• GNP rose from 74.2B to 91.4B
• Avg. weekly earnings 16 to 20
• Farm income doubled
• Money supply grew 15
• Unemployment dropped 25 to 20 (but was 3.2
  before 1929)

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Roosevelts New Dealers
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Brain Trust

• College professors intellectuals who authored
  much of the New Deal legislation

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Eleanor Roosevelt

• Conscience of the New Deal
• Champion of the dispossessed
  poor minorities

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Harry Hopkins

• Frontman for the New Deal
• Roosevelts administrator of relief
• Ran the Civil Works Administration, Federal
  Emergency Relief Administration, Works Progress
  Administration

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• Harold Ickes
• Secretary of the Interior
• Head of the Public Works Administration
• George W. Norris
• Senator from Nebraska
• Led fight to create the TVA

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Norris
Ickes
Hopkins
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• Francis Perkins
• First female cabinet member
• FDRs Secretary of Labor

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Anti-New Dealers
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Father Coughlin

• Catholic priest whose radio broadcasts on Social
  Justice denounced the New Deal as Marxist
• Attacked Jews for causing the Depression

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• His rabid fascism led to his censure by the Church

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Huey Kingfish Long

• Demagogic Governor of Louisiana whose popularity
  led many to fear his becoming
  a dictator

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• He promised his followers to make Every Man a
  King to Share Our Wealth
• Assassinated in 1935

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Dr. Francis Townsend

• Promised the elderly they would receive a 200 a
  month pension

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The Second New Deal
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Securities Exchange Commission (1934)

• Created to regulate exchanges transactions
  involving securities
• 1st chairman is Joseph Kennedy

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National Housing Act (1934)

• Created Federal Housing Administration (FHA)
• Gave loans to home buyers home owners

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United States Housing Authority (1937)

• Gave loans for low income housing
• Condemned by conservatives landlords

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Reciprocal Trade Agreements

• Allows President to negotiate trade agreements
  without the consent of Congress

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Works Progress Administration (1935)

• Run by Harry Hopkins
• Created to quiet the protests of Long Townsend

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• Employed 9 million people on public projects
• Cost 11.4 billion employed 40 of workers
• WPA became the best known most popular of the
  New Deal programs

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Wagner Act (1935)

• National Labor Relations Act
• Creates the Labor Relations Board
• Legitimizes labor unions labor rights

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• Proved most beneficial to unskilled labor
• Passed after Supreme Court found the NRA
  unconstitutional
• Declared constitutional in 1937

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The CIO

• Committee for Industrial Organization
• Formed by John L. Lewis of the United Mine
  Workers

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• Reorganized in 1936 independent of the AF of L as
  the Congress of Industrial Organizations
• Organized the Flint, Michigan sit-down strike of
  1936

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More Legislation of the Second New Deal
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Social Security Act (1935)

• Creates the Social Security System to guarantee
  pension for elderly over 65
• Paid by a tax on employees employers
• Also cared for blind disabled

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Revenue Act (1935)

• Raised income tax on higher incomes
  inheritances
• Reversed Andrew Mellons 1920s tax cuts

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2nd Agricultural Adjustment Act

• Changed the AAA to correct problems found
  unconstitutional such as regulatory taxation
• Continued the program of conservation payments
  restriction of production

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Fair Labor Standards Act (1938)

• Minimum wage 40-hour week for interstate
  commerce industries
• Prohibited child labor under age 16
• Labor becomes Democrats ally

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1936 Election

• Democrats re-nominate FDR

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• Republicans turn to the mildly liberal governor
  of Kansas - Alfred M. Landon
• Called the poor mans Hoover by Democrats

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• Wealthy Democrats conservative Republicans
  formed the American Liberty League to fight the
  creeping socialism of the New Deal

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• Roosevelt wins in a landslide 523 to 8 electoral
  votes
• Democrats took 2/3rd of both houses of Congress

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• Franklin Roosevelt's reelection in 1936 was
  assured by his strong support from blacks labor
  unions
• 1936 election was made notable by the bitter
  class struggle between the poor the rich

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• Roosevelts election forged the modern Democratic
  voter base - poor, middle-class, blacks,
  immigrants, southerners, urban workers, labor
• The Forgotten Man

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The Second Term

• 20th Amendment (1933)
• Lame duck Amendment
• Prez, VP, Congress begin terms in January
• Roosevelt takes the oath of office on January 20,
  1937

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• Claimed mandate to continue the New Deal
• Sets his sights on the one branch of government
  not in line with his policies Supreme Court

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Court Packing Scheme (1937)

• 7 of 9 decisions of the court had gone against
  the New Deal
• Court made up of old, ultra-conservative Old
  Guard appointees

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• FDR asks Congress to give him the right to
  appoint a new justice for every one over 70 who
  refused to retire
• This would pack the court with 6 new justices

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• Congress refused to follow passed only a lower
  court reform
• Chief Justice Hughes did begin voting with the
  more liberal justices

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• Roosevelt suffered his first major defeat but
  eventually was to seat 9 Justices - more than any
  president since Washington

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Roosevelt Recession (1937-1938)

• Economy having slowly crawled out of the
  depression began to slow down in 1937

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• Recession caused government to resume direct aid
  programs instead of moving away from deficit
  spending
• Congress became more conservative in 1938
  elections

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• Recession led to FDR adopting more Keynesian
  economics deficit spending
• Many economists feel the depression could have
  been cured with even higher deficit spending

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Hatch Act (1939)

• Made it illegal for lower level federal officials
  to campaign

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Criticisms of the New Deal
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• Failed to cure Depression (WW2)
• Bureaucracy mushroomed
• States power faded
• National debt doubled (19B - 40B)
• Handouts vs. thrift initiative
• Created class conflicts
• Creeping socialism
• Dummy Congress Court Packing
• Millions still unemployed

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Support of the New Deal
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• Saved capitalism (no revolutions)
• Relieved worst of crisis
• Government was morally bound to help its people
• New Deal reforms still important today
• Fairer distribution of wealth
• Return of self-respect
• Middle of the road approach

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• International crises of 1938-39 turned the
  countries attention to world affairs

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The End
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Public Utility Holding Company Act

• Passed in answer to the collapse of Samuel
  Insulls multibillion-dollar financial empire
• Outlawed pyramid holding companies

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Soil Conservation Act

• Created land banking to allow land to lay fallow
  or to plant soil binding plants like soybeans