New Deal Aim: Did Franklin Roosevelt’s New Deal undermine the constitutional principles of separation of powers and checks and balances?

“Give a man a dole [hand out], and you save his body and destroy his spirit. Give him a job and pay him an assured wage and you saved both the body and the spirit.” -Harry Hopkins, Director of the Federal Emergency Relief Administration (FERA) What is the message behind this quote? Do you agree or disagree? Explain!

Aim: Did Franklin Roosevelt’s New Deal undermine the constitutional principles of separation of powers and checks and balances? Key Terms: FDR’s [First] 100 Days Tennessee Valley Authority (TVA) Social Security Act of 1935 Civilian Conservation Corps (CCC) Works Progress Administration U.S. vs. Butler (1936) Schechter Poultry Corp. v. United States (1935) Courtpacking National Recovery Administration (NRA) Relief, Reform, Recovery [3R’s] Essential Questions: Were the New Deal plans true solutions to the Great Depression? Was the New Deal legislation a temporary fix or a long term solution? Could regulatory and social programs save capitalism? (What is the irony in this question?) 4. Were FDR’s programs/actions a necessity OR an abuse of power?

The Three R’s! Relief – take care of immediate problems (ex. starvation, unemployment) Recovery – create agencies to work toward fair working conditions, temporary and permanent work. Reform – future programs that will reduce the chances of another depression; create regulatory agencies. Some programs were social security – security for the aging and others; and the SEC (Securities Exchange Commission) to regulate stocks.

Hoover’s Solution FDR’s Solution Rugged Individualism Direct Relief Trickle Down Economic Government Regulation Capitalism - an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decisions, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market. **Today there is no such thing as a pure free market economy; we live in a mixed market economy where there are regulations imposed on the market.** (Ie. Minimum wage laws, environmental protection regulations, etc.)

Remedies - Library of Congress 1934 In this political cartoon, there are three important figures: President Franklin D. Roosevelt, Congress, and Uncle Sam. Each of them assumes a role in the cartoon, with FDR as the doctor, Congress as the caretaker, and Uncle Sam as the patient. Uncle Sam represents a sickly America. FDR is the doctor, who has the responsibility to cure or relieve the symptoms of the depression that struck America and its people. FDR gives Uncle Sam many different kinds of “medicine,” including programs like the National Industry Recovery Act, the Civil Works Administration, and the Agricultural Adjustment Act. In addition, FDR is carrying a bag of New Deal “remedies,” which can provide even more relief for America. FDR reassures Congress that the “remedies” do not necessarily guarantee success and changes can be made. At the time, FDR approved and passed many legislations, in hopes of fixing America. Many people were doubting whether these programs would actually help or even make things worst. This political cartoon supports FDR and his policies and puts the New Deal in a positive light. This is because Uncle Sam is shown to be in good spirits, after trying the New Deal medicines. Additionally, the cartoon depicts FDR as a man, who is understanding because he knows that the programs might not work and has a bag of solutions prepared.

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National Recovery Administration (NRA) – combines immediate relief with long-range recovery and reform; assisted industry, labor, and the unemployed; inspired fair competition, hours reduced so employment could be spread among more people, minimum wage levels set. Agricultural Adjustment Administration (AAA) – made available millions of dollars to help farmers meet their mortgages. Through “artificial scarcity” this agency was to establish “parity prices” for basic commodities. “Parity” was the price set for a product that gave it the same real value, in purchasing power, that it had enjoyed during the period from 1909-1914. Eliminates surpluses! Home Owners’ Loan Corporation (HOLC) – refinance mortgages on nonfarm homes. Got FDR and Democrats middle class support! Tennessee Valley Authority (TVA) - (most revolutionary scheme!) an agency that determined how much production and distribution of electricity cost, creating a “yardstick,” a fairness test to ensure proper rates…which affected private companies. (Some argued this was Socialism creeping in to take over!) Social Security Act of 1935 – to cushion future depressions, provided federal-state unemployment insurance, security in old age; provisions even made for handicapped/impaired, delinquent children, and other dependents. Works Progress Administration (WPA) 1935 – employment on useful projects, ex. infrastructure.

When the boss won’t talk Wagner Act (National Labor Relations Act of 1935) – sponsored by NY Senator Robert F. Wagner. Created a labor relations board for enabling labor to engage in self- organization; allowed collective bargaining (fights against “welfare capitalism”). When the boss won’t talk Don’t take a walk; Sit down, sit down. Fair Labor Standards Act (Wages and Hours Bill) 1938 – Industries involved in interstate commerce were to set up minimum-wage and maximum-hour levels. Congress of of Industrial Organizations (new CIO – Committee for Industrial Organization) – The Congress’ President John L. Lewis, labor war on management but also feuded among other labor groups over who had strike jurisdiction. Court Packing – FDR wanted to expand the Supreme Court to guarantee that his legislation would be supported there. Yet, before this came to fruition, Justice Owen J. Roberts, formerly regarded as conservative, began to vote on the side of his liberal colleagues. “A switch in time saves nine.” Even upheld minimum wage for women!?!? Keynesianism – (John Maynard Keynes, British economist) economic theory where the use of government spending (deficit spending) and fiscal policy to “prime the pump” of the economy and encourage consumer spending became the new economic orthodoxy and remained that way for decades.

Impact of FDR’s New Deal Beneficial at the time – 15 pieces of legislation, experimental, trial-and-error Limited to white men, excluded women and African Americans Big government, very involved. The impact of this is that the executive and legislative branch expanded its power – created tension with the judicial branch. It was a push the economy needed. Had black members in his secondary cabinet CIO wanted to include women and blacks Women got more political power. Francis Perkins – sec of labor. Limited economic impact/federal deficit (debt) KEYNSIAN ECONOMICS: Give $ to the people, they’ll spend and improve businesses. Worried about losing support/morale/needing to restore the confidence. More people were working, even though unemployment wasn’t completely eliminated. Second New Deal: Social Reforms focused, helped with housing, getting people out of slums, helped eliminated concentrated disease areas, improved American health and hygiene. Culture – encourage theatre, art, and music. Federal Theatre Act (and WPA) – theatre tickets cheaper, access to the arts, gave artists jobs. Public service. Encouraged cheap, thoughtful leisure.

Impacts Gov’t went into the business of business. Created social assistance programs that never existed before. During Gilded Age business was bigger than govt – social programs were run by Tweed, captains of industry, muckrakers – Jane Addams, Jacob Riis – not govt.

The Red New Deal with a Soviet seal Endorsed by a Moscow hand, Is the New Deal socialism? Do the American people have something to fear? The Red New Deal with a Soviet seal Endorsed by a Moscow hand, The strange result of an alien cult In a liberty-loving land. Hearst Newspaper on “Rooseveltski” (like a Bolshevik-Marxist!) *See “Wealth Inequality in America” on youtube.

Does FDR deserve a rave review? Happy Days Are Here Again! By Jack Yellen and Milton Ager, 1929 FDR Campaign Song, 1932 Happy days are here again. The skies above are clear again Let us sing a song of cheer again – Happy days are here again All together, shout it now – There’s no one who can doubt it now So let’s tell the world about it now Your cares and troubles are gone – There’ll be no more from now on! Happy days are here again… Does FDR deserve a rave review?