Unit 6 - Roosevelt Saves the Day

Presidential election of 1932 Franklin Delano Roosevelt (FDR) – Democrat Pres. Herbert Hoover – Republican FDR wins – Hoover blamed for inaction during Depression

The New Deal FDR’s plan to alleviate problems of the Great Depression Three general goals of the New Deal Relief for the needy Recovery – economic recovery Reform – financial reform

The New Deal The Hundred Days Intense period of activity by FDR administration Congress passed over 15 major pieces of legislation Expanded government’s role in the nation’s economy

The New Deal Bank Holiday FDR closed all banks to prevent withdrawals and failures FDR pushed through the Emergency Banking Relief Act Treasury Dept. inspected banks Sounds banks reopened Insolvent banks (could not repay debts) Remained closed Able to receive loans Strengthened public confidence in banks

The New Deal Fireside Chats Informal radio addresses Explained problems and steps being taken to deal with problems

New Deal Legislation Glass-Steagall Act Federal Securities Act Created the Federal Deposit Insurance Corp. (FDIC) Insured individual bank accounts Customers felt money was safe Federal Securities Act Corporations must provide complete and accurate info on all stock offerings

New Deal Legislation Civil Works Administration Provided 4 million immediate jobs Built 40,000 schools, paid 50,000 teachers’ salaries Built 500,000 miles of roads National Recovery Administration (NRA) Set prices Established standards for working hours Banned Child labor Home Owners Loan Corp (HOLC) Provided govt. loans homeowners facing foreclosure Federal Emergency Relief Act (FERA) $500 million for direct relief for the needy

Criticism of the New Deal Required deficit spending – govt. spending more than receiving Too much govt. control of economy, agriculture and industry Approaching socialism

Critics of FDR Father Charles Coughlin Dr. Francis Townsend Catholic Priest broadcast radio sermons Claimed radio audience of 40-45 million Favored guaranteed annual income and nationalization of banks Lost support due to anti-Semitic views Dr. Francis Townsend FDR wasn’t doing enough to help the poor and elderly Senator Huey Long Had presidential ambitions Proposed Share-Our-Wealth plan assassinated

FDR and the Supreme Court Court struck down NIRA and AAA FDR fear Court may dismantle New Deal Court-Packing (1937) FDR wants to appoint 6 new Supreme Court Justices Caused anger and protests in Congress 1937-1941 – Due to resignations, FDR appoints 7 new justices

Second New Deal (1935) Election of 1936 Second burst of activity Focusing on farmers and workers Election of 1936 A vote of confidence for FDR and New Deal FDR easily reelected over Republican Alf Landon Democrats win large majorities in House and Senate First time African Americans voted for Democrats

National Youth Administration (NYA) Provided education, jobs, counseling, and recreation for young people

Social Security Act One of the most important achievements of New Deal Chaired Sec of Labor Francis Perkins (1st female in cabinet) Three major parts Old-age insurance Unemployment compensation Aid to families with dependent children and the disabled

New Deal ends with the beginning of World War II Spending on war materials replaced New Deal spending Lasting effects of the New Deal Expanded the power of the federal government and president More active role in shaping the economy Lasting Programs FDIC SEC NLRB Social Security TVA