FDR and the New Deal Chapter 12

“Priming the Pump” Hoover was seen as largely unresponsive to the problems created by the Great Depression Some of this has to do with his political/econ philosophy Hoover was a believer in Laissez-faire FDR believed the purpose of govt is to serve the people See diagram…

First 100 Days Because of the volume of legislation that FDR got passed in the first 100 days of this administration, all other Presidents have been measured by this standard

3 main areas of the New Deal Relief Recovery Reform

1 st New Deal (1933-1936) Largely aimed at business Focused on providing immediate relief Bank holiday Farm subsidies Federal Emergency Relief Act (FERA) Federal Deposit Insurance Corporation(FDIC)

More 1st new deal programs Tennessee Valley Authority (TVA) Civilian Conservation Corps (CCC) Agriculture Adjustment Act (AAA) National Recovery Act (NRA)

2nd New Deal (1937-1940) Focus on Recovery FDR seen as more liberal Begins to lose support of big business Programs for labor, elderly, young Works Progress Administration (WPA) Wagner Act( allowed unions) Sit-down strikes Avoided replacement workers Fisher Body plant, Flint, Michigan (1936-37) Held plant for months Won right to have UAW as sole union representative Social Security

Critics of the New Deal Huge new expansion of Federal govt Problems should be handled at the State level Too much spending? Cut back some programs and there was a recession in 1937 Too much power in the Executive branch Concerned with check and balance issues

Roosevelt and “Court Packing” 1937 Supreme Court was seen as anti new Deal Struck down AAA Several more programs were up for review Roosevelt is angry (“nine old men”) Sent Congress bill to increase number of justices Force retirement of justices who served over 10 years (and age 70) Roosevelt could get to appoint as many as six new justices

What happened? Congress got angry Split the Democratic party (Southerners worried about segregation, African American leaders worried that future presidents would appoint justices opposed to civil rights) Overreach of executive power Supreme Court got the message? Upheld constitutionality of Wagner Act and Social Security Act Conservative justice resigned, Roosevelt appointed New Deal supporter

Legacy of the New Deal? Did not do as much to end the Depression as is often claimed Did change attitudes Stronger sense of security and stability Safety net was created for citizens Many programs still exist today Should they? Argument over the role of government continues…