Ch 12 The New Deal

Hoover – Rugged Individualism 1928 “We were challenged with a... choice between the American system of rugged individualism & a European philosophy of diametrically opposed doctrines ­ doctrines of paternalism & state socialism…The greatness of America has grown out of a political and social system and a method of [a lack of governmental] control of economic forces distinctly its own ­ our American system ­ which has carried this great experiment in human welfare farther than ever before in history.... And I again repeat that the departure from our American system... will jeopardize the very liberty and freedom of our people, and will destroy equality of opportunity not only to ourselves, but to our children. “

Great Depression- one in four Am. workers unemployed. Nation’s Gross National Product fell by 70 percent in constant dollars between One-fifth nation’s banks closed Maynard Dixon ( ), Forgotten Man, 1934

Many Americans blamed Hoover for America’s woes Democrats were looking to win White House for 1 st time in 12 years

The Election of 1932 Franklin Delano RooseveltHerbert Hoover

FDR “Forgotten Man” Speech April 7, 1932 These unhappy times call for the building of plans that rest upon the forgotten, the unorganized but the indispensable units of economic power, for plans like those of 1917 that build from the bottom up and not from the top down, that put their faith once more in the forgotten man at the bottom of the economic pyramid

FDR’s campaign – general statements Promised relief for poor More public works programs – gov funded building programs Lower tariffs Attacked Hoover for his response to Depression Promised to cut Federal Budget

FDR won by 57% Dems took House and Senate

“The only thing we have to fear is fear itself…” 1933 Inauguration of FDR

Fireside Chats – radio addresses to the nation, to increase public’s confidence

FDR believed in times of crisis gov could aid people directly

Eleanor Roosevelt Gathered info for FDR, traveled, attacked social problems – changed role of First Lady

The Banking Crisis Many were withdrawing all their money, ruined many healthy banks FDR issued an executive order to close nation’s banks – a banking holiday – to stop the run on banks, 2 nd day in office

Emergency Banking Act Gave gov officials power to examine banks, correct problems, close if needed Banks reopened with gov assurances that they were on sound financial ground To increase public’s confidence

Glass-Steagall Act Created FDIC (federal Deposit Insurance Corporation Provided gov insurance for depositors’ savings

The Hundred Days FDR pushed Congress to put his new program in place The New Deal - FDR’s plan for overcoming Depression

The New Deal RELIEF – help for those suffering RECOVERY - Gave gov jobs to unemployed REFORMS - Increased gov regulation of the economy

Civilian Conservation Corp To deal with unemployed young men CCC workers constructing a road, 1933

Agricultural Adjustment Act Paid farmers not to grow crops – to raise demand & drive up prices

National Industrial Recovery Act Changed relationship between business & labor by guaranteeing workers right to form unions Front page of the National Industrial Recovery Act, as signed by President Franklin D. Roosevelt on June 16, 1933.

NIRA Mandated that businesses in same industry cooperate to set prices & levels of production During Teddy Roosevelt’s time this was a violation of anti trust laws

Federal Securities Act – forced companies to share certain financial info with public Securities & Exchange Commission (SEC) – gov watchdog over stock market

Tennessee Valley Authority p. 354 Developed resources in the river valley, dams, hydroelectric power

The New Deal changed the relationship between Gov and the people – more active role for gov

Critics of the New Deal Doesn’t go far enough Complete overhaul of capitalism Senator Long, Father Coughlin, Dr. Townsend Goes too far Breaks with traditional American ideals Supreme Court struck down parts of FDR’s programs