FDR’s plan to end the Great Depression The New Deal

Election of 1932 Republicans re-nominated Hoover Tarnished by Depression Conservative agenda towards the economy Rugged Individualism – gov’t should not help people unemployed Believed gov’t controls only slowed economic recovery Community Chests – privately organized welfare

Still under Hoover… Reconstruction Finance Corporation (RFC) Loans from Federal treasury to banks & business – 5,000 firms in 1932 Bonus Army – WWI vets set up tent city in Wash DC demanding $$ Hoover sent in troops to remove them Under General Douglas MacArthur Nicknamed the “Battle of Washington”

Democrats in 1932 Al Smith wanted to run again (NY, Catholic) Franklin Delano Roosevelt Harvard & Columbia, Assist Sec of Navy, Governor of NY, many similarities to his cousin (TR) Struck with polio in 1921 – recovery made him stronger – most did not know of the paralysis Won the nomination & band played “Happy Days are Here Again” Slogan: “I pledge you…a new deal for the American People!”

Roosevelt won by a landslide 472 electoral votes to 59 for Hoover

First 100 Days 3Rs – relief, recovery, reform Bank Holiday – closed every bank until it had been checked & found solvent (Stable enough to stay open) Emergency Banking Bill Most banks closed for a week Fireside Chats – radio speeches to explain to public what he was doing Main reason people trusted him Proposed New Deal programs 3Rs – relief, recovery, reform

Critics of the New Deal American Liberty League – Republicans & conservative Democrats wanted to defend laissez – faire policies – against any gov’t regs on them Many major corporations joined (DuPont, GM) Huey Long – “Share Our Wealth Program” Extremely liberal Democrat Federal gov’t confiscate all income over $1 million to give a $5,000 home and $2,000/yr income Began to run for Pres…was assassinated

More criticism… Father Charles Coughlin – on radio – Catholic Usually covered politics not religion Claimed FDR in bankers’ pocket Prejudiced against Jews, felt they were benefiting Dr. Francis E. Townsend – Townsend Plan California physician Federal $ to elderly - $200/ month over 60 yrs old Plan dropped when realized ½ of gov’t $ would go to 1/11th of the population Upton Sinclair – Socialist cand. Gov of CA – EPIC/ “End Poverty in Calif” - lost election

Supreme Court Actions 1935 Court declared 5 New Deal programs unconstitutional (AAA, NRA, etc) 1936, four other decisions against FDR, including minimum wage law from NY FDR’s response was to “pack the court” If a justice didn’t retire at 70, pres had the right to add a new justice for each over 70 (not past 15) FDR went to 12 justices & be pro- New Deal Senate killed bill – his 1st defeat in Congress Will actually get to appoint 7 new justices legally anyway

Results… FDR’s fight with Court did lasting political damage & weakened his popular support However the Court will uphold the NLRB and Social Security Ballooning federal deficit Depression still happening/ unemployment Congress demanded & got a balanced budget for 1938 – cut many programs Fair Labor Standards Act – last big win for FDR – est federal minimum wage/ max hours

How did the New Deal change the US? 1- Expanded power of the fed gov’t 2 – Extended power of the president Probably strongest President since Lincoln 3 – Deficit spending by gov’t is now common Br. Economist John Maynard Keynes favored this 4 – Fed gov’t running social programs 5 – Gov’t demonstrated concern for workers 6 – Conservation movement gained strength