I.A. Chapter 25 The New Deal Mr. Robson

4/16 Aim – How successful was FDR’s New Deal? Do Now –

The New Deal - Term used by FDR at Democratic convention that came to symbolize his set of programs Mr. Robson

New Deal Takes Over FDR Style Gifted Politician – could “connect” Experimented with different programs – not a rigid ideologue Utilized new mass media, radio, effectively Fireside “Chats” – radio address to nation – 1st about banking Mr. Robson

New Deal Takes Over FDR Style Vastly expands presidential power Particularly in initiating legislation “Brain Trust” – group of intellectual informal advisors Cabinet – Labor; Francis Perkins, Interior; Harold Ickes Mr. Robson

New Deal Takes Over The 100 Days “Bank Holiday” – all banks closed until audit conducted by Treasury Emergency Banking Act – Introduced in 1st fireside chat Deposits exceed withdrawals, bank closings drastically reduced Mr. Robson

New Deal Takes Over The 100 Days 15 pieced of legislation passed in first 100 days Glass-Steagall Banking Act (1933) – separated commercial and investment banking (repealed in 1999!!!!) Created Federal Deposit Insurance Corp (FDIC) Mr. Robson

Criticism of New Deal Conservative - Liberal -

New Deal Takes Over Under Attack Attack Came from all sides Liberty League – Conservatives and Business leaders – called new deal reckless and “socialist” Supreme Court – Declares NRA unconstitutional – Schechter v. U.S Mr. Robson

New Deal Takes Over Francis Townsend – Old Age Revolving Pension Plan Under Attack – Liberal Francis Townsend – Old Age Revolving Pension Plan Retired Elderly (over 60) to receive monthly stipend Father Coughlin – Priest/Demagogue Mr. Robson

New Deal Takes Over Under Attack – Liberal Huey Long (Kingfish) – Senator from Louisiana threatened to run as 3rd party Flamboyant and popular as Gov. Share our Wealth – True redistribution of wealth Assassinated Mr. Robson

Labor > The rise in union membership This chart traces the percentage of the work force claiming membership in unions between 1860 and 1989. The total number of U.S. union members doubled (from four million to eight million members) between 1930 and 1940, in large measure the result of CIO organizing successes after 1936. 18

1936 – Election New Deal Coalition brought new voters into Democrat Party Urban workers, northern blacks, union members, Catholics, Jews, liberals, middle class worried about unemployed and retirement Held on to white southerners too! FDR wins in landslide Mr. Robson

The Second New Deal Second term far less productive Failed Supreme Court “packing” plan – wanted to add 6 additional justices to conservative court Blocked by congress Regarded as assault on Constitution Eventually gets his way though retirements Mr. Robson

The Second New Deal Stalemate Court defeat, 2nd term (lame duck?), conservative coalition in congress weakens his hand Rise of Dictators in Europe didn’t help! National Housing Act (1937) Fair Labor Standards Act (1938) Mr. Robson

Did the New Deal Work?

Did the New Deal Work?

Long Term Legacy Change in the nature of government – People now accept federal govt. as a welfare agency – Social Security People now accept government role in regulating economy – SEC, minimum wage, child labor, FDIC – How much welfare, regulation will always be debated – Democrat v. Republican