Roosevelt and the New Deal

Lecture 4: The First New Deal A. FDR Takes Office 1. Election of 1932 Republicans re-nominated Herbert Hoover Democrats nominated Franklin Delano Roosevelt FDR won pledging a “new deal for the American people” 2. FDR’s Administration Cabinet was nicknamed “The Brain Trust” FDR was willing to try any idea FDR’s 3 Goals (aka the 3 R’s) Relief – provide immediate relief to Americans (short term) Recovery – improve/stabilize the economy Reform – fix the economic problems that led to the great depression (long term)

1932 Presidential Election

B. Fixing the Banks and the Stock Market 1. Emergency Banking Relief Act Temporarily closed banks Re-opened when the govt. verified they were stable Americans regained faith in banks and deposits outweighed withdrawal 2. “Fireside Chats” FDR’s radio addresses that explained New Deal programs to Americans 3. Securities and Exchange Commission (SEC) Regulated the stock market; stock prices reflected value of company selling stock 4. Glass-Steagall Banking Act Set up the Federal Deposit Insurance Corporation (FDIC) that insured deposits in America’s banks; no more bank failures and bank runs

1. Agricultural Adjustment Act (AAA) C. Managing Farms and Industry 1. Agricultural Adjustment Act (AAA) Paid farmers subsidy payments to not grow crops Lowered supply which increased price of crops 2. National Industry Recovery Act (NIRA) Suspended antitrust laws; made it easier for corporations to expand and make profits Established NRA Codes : set prices, established minimum wages , production quality, etc… D. Providing Debt Relief 1. Home Owners Loan Corporation (HOLC) Govt. refinanced bank mortgages to a lower rate Helped Americans keep their homes out of foreclosure

1. Civilian Conservation Corps (CCC) E. Relief Programs 1. Civilian Conservation Corps (CCC) Employed 3 million young men ages 18-25 in the forestry service Lived in camps and earned $30 a mo. 2. Federal Emergency Relief Administration (FERA) Gave $ to State govts to fund relief projects Headed up by Harry Hopkins 3. Civil Works Administration (CWA) Employed 4 million people in public works project Built airports, schools, roads, playgrounds, parks and sports fields

F. Challenges to FDR and the New Deal 1. American Liberty League Criticized New Deal/FDR for deficit spending in order to create programs Concerned about the increased role and size of the federal govt. 2. Huey Long Popular Governor from Louisiana who believed FDR did not go far enough Promoted “Share our Wealth” plan (take from the rich and give to the poor) 3. Father Coughlin Catholic priest and radio show personality Supported heavy taxes on the rich 4. Dr. Francis Townsend Promoted a plan to provide federal pensions for citizens over 60 years old Believed it would increase spending and promote job creation

1. Works Progress Administration (WPA) G. The 2nd New Deal 1. Works Progress Administration (WPA) Spent $11 Billion on 8.5 million workers Built roads, highways, bridges and airports Provided work for artist, writers, and stage actors 2. Supreme Court Targeted and struck down the AAA and the NIRA FDR retaliated against the Supreme Court through his court packing plan Asked older justices to retire, if they refused FDR could appoint an additional justice to the Supreme Ct. 3. Social Security Act Provided retirement pensions to Americans over the age of 65 Provided payments to the unemployed and disabled

1. National Labor Relations Act (Wagner Act) H. Rise of Labor 1. National Labor Relations Act (Wagner Act) Supreme Ct. took away labor protections in the NIRA Congress gave workers the legal right to organize unions Unhappy workers could take their complaints against their employer to arbitration Labor unions merged together to form the Congress of Industrial Organization (CIO) CIO launch major strikes in the automobile and steel industry

I. Roosevelt’s 2nd Term 1. Election of 1936 2. Roosevelt Recession Republicans nominated Alfred Landon FDR was re-elected with 60% of the popular vote 2. Roosevelt Recession Economy seemed on the verge of recovery and slumped again in 1937 (the Roosevelt Recession) Cabinet promoted a solution based on the ideas of economist John Maynard Keynes During an economic recession the govt. should spend more in order to jumpstart the economy FDR/Congress approved spending $3.75 billion for the PWA, WPA, and other programs

1936 Presidential Election

K. Legacy of the New Deal 1. Role of the Government J. Last Reforms 1. National Housing Act Govt. spent $500 million to create low-income housing 2. Farm Security Act Gave loans to tenant farmers to purchase farms 3. Fair Labor Standards Act Provided protections to workers, abolished child labor, established a 40 hour work week K. Legacy of the New Deal 1. Role of the Government Govt. became permanently responsible for providing a safety net for struggling Americans Increased the size of the government (bureaucracy)