Introduction to the New Deal

What We Will Learn What was the New Deal? What did Franklin Delano Roosevelt do during the Hundred Days? Why were Roosevelt’s fireside chats significant?

What you will be able to do Explain what is the New Deal Summarize the initial steps Roosevelt took to reform banking and finance Describe New Deal work programs Identify critics of FDR’s New Deal

Review of What Went Before Early 1900s – Progressive Era Teddy Roosevelt – Time of Reforms Roaring 20s – New Ideas, good economic times Early 1930s – The Great Depression

Election of Roosevelt Franklin Delano Roosevelt elected in 1932 Ran against Herbert Hoover Hoover was unpopular because of Depression Landslide: Roosevelt, 23 million votes; Hoover, 13 million votes

What is the New Deal? Roosevelt elected in 1932, but did not take office until 1933 During the time between election and taking office, FDR Carefully picked advisors – professors, lawyers, journalists Came to be called the “Brain Trust” Developed set of policies to help problems of the Great Depression. This was called…

FDR was related to Theodore Roosevelt New Deal echoed his “Square Deal” Theodore Roosevelt

Why should we care about the New Deal? Some say that that country was in such a bad state, that if not for the New Deal reforms there might have been a revolution or even a fascist take-over, as was occurring in Europe that led to World War II. The New Deal helped put many back to work, improving the economy and giving people hope. Set the ground work for how government works today: Increased government control.

Some programs still exist and are important to us! Federal Deposit Insurance Corp (FDIC) - Protects your money in the bank. Securities and Exchange Commission (SEC) – Helps keep corporations from committing fraud. National Labor Relations Board (NLRB) – Protects workers rights. Social Security Expanded electricity to rural areas Developed policies to help farmers Paved the way for conservation programs

Franklin and Eleanor Roosevelt FDR created New Deal, but Eleanor, his wife, also influential… Franklin and Eleanor Roosevelt Some “first ladies” (wives of presidents) historically stay in the background. Eleanor, however, was influential in her own way and powerfully influence history.

Born into wealthy family in New York state They came from rich families, but their backgrounds gave them empathy with those less well-off… Franklin Roosevelt Eleanor Roosevelt Born into wealthy family in New York state State senator, secretary of Navy, governor of New York Got polio in 1921, paralyzed from waist down Because of his disability, had greater compassion for people Interested in progressive causes Interested in child welfare, housing reform, equal rights for women and civil rights Active speaker, writer, popular in her own right Helped influence FDR’s progressive policies

The Hundred Days Period at the start of FDR’s presidency in which he pushed numerous programs through Congress 15 major pieces of New Deal legislation approved by Congress Expanded government’s role in the economy Opposite of Hoover who believed in limited role of government

Banking & Finance Reform One reason for Depression was unregulated banking practices FDR’s first step was to declare a “banking holiday” in which all banks closed To prevent further withdrawals and “panic” Banks inspected to determine if “solvent” – could stay in business Only those “healthy” could stay in business Restored public confidence in banks

Fireside Chats FDR went on radio to discuss his reforms to the public. Also helped public confidence.

FDR’s Fireside Chat http://www.americanrhetoric.com/mp3clips/politicalspeeches/fdrfirstfiresidechat63496436943.mp3

An alphabet soup of laws Civilian Conservation Corps (CCC) Put young men 18 – 25 building roads,parks , etc By time program ended in 1942, almost 30 million men had been helped Small pay, but better than unemployment National Industrial Recovery Act (NIRA) Provided money to states to build schools and public buildings Provided 4 million jobs in 1933-34 Built 40,000 schools and paid salaries of 50,000 teachers

National Recovery Association (NRA) Established code of fair practice To stop trend of wage cuts, fall prices, and layoffs Federal Housing Administration (FHA) Furnish loans for houses Federal Emergency Relief Association (FERA) Provided direct relief for the needy

Opposition! Roosevelt used deficit spending – spending more money than it received in taxes Some opposed to this Some liberals believed that FDR hadn’t done enough to help the poor and reform economic system Some conservatives believed that this gave government too much power and would lead to socialism (government control of economy)

Supreme Court Struck down NIRA as unconstitutional in 1933. Fear that New Deal would be dismantled. In 1937 FDR asked Congress to approve appointing 6 new justices Call “Court packing bill” – controversial and not approved In 1937, elderly justice retired and Hugo Black , supporter of FDR’s policies appointed Court started ruling in favor of New Deal programs

Hugo S. Black Supreme Court Justice

Other Opposition Charles Coughlin, Catholic priest, used radio to deliver messages Huey Long, U.S. senator from Louisana, wanted to become president Proposed his own welfare program Promised “something for everyone”

Results? New Deal had some impact, but Great Depression continued FDR looked for further reforms – the “Second New Deal”