Franklin D. Roosevelt and the New Deal Redefined Democracy: Political Rights  Economic Security Social Justice

Hoover’s Downfall lassez-faire policies believed in a balanced national budget seen as a “do-nothing president” Americans turn against him: Bonus Army & Hoovervilles

Franklin D. Roosevelt Americans see him as man of action, strong leader Friendly, approachable, confident Used the press to advantage Open to new ideas Two-term governor of New York Cousin of Teddy Roosevelt Results: landslide victory for Democrats (both presidency and Congress)

FDR vs Hoover 1932 Election

The “Brain Trust” - FDR worked with a group of experts to create New Deal Program - This group of experts (professors, lawyers, journalists, social workers ) became known as the “Brain Trust”

FDR Assumes the Presidency March 1933: country is virtually leaderless, banking system has collapsed 20th Amendment (Feb. 1933) moved presidential elections from March to January (effort to fix “lame duck” period) FDR Inaugural address: “The only thing we have to fear is fear itself….”

3 Goals of the New Deal Relief: immediate help for the needy, jobs for the unemployed, protection for farmers from foreclosure Recovery: get the economy moving again Reform: regulate banks, abolish child labor, conserve farm lands

First Hundred Days March 9 – June 16, 1933 Congress passed more than 15 major pieces of New Deal legislation Significantly expanded federal government’s role in the nation’s economy

New Deal Programs: Alphabet Soup Relief: short-term, get people through until economy recovers Bank Holiday: closed all banks; could not re-open until government inspectors declared bank sound Federal Emergency Relief Act (FERA) Civilian Conservation Corps (CCC) Works Progress Administration (WPA) 10,000 banks closed during Depression Bank holiday: prevent more bank runs, increase depositors’ faith in banking system Who has FERA? Give a summary Same with CCC, WPA

Recovery National Recovery Administration: asked businesses to voluntarily follow codes that set standard prices, production limits, minimum wages Agricultural Adjustment Acts: - first AAA: gov. paid farmers to plant fewer crops - second AAA: gov. bought farm surpluses, stored in warehouses until prices went up First AAA: what happens if fewer crops produced? (supply and demand) 1936: Supreme Court declares AAA unconstitutional

Reform 1933: Federal Deposit Insurance Corporation (FDIC): insured deposits so people would not lose their money if bank failed 1933: Tennessee Valley Authority (TVA): built government-owned dams to control flooding, bring electricity to poverty-stricken Tennessee River Valley 1934: Securities and Exchange Commission: regulate stock market to prevent fraud and another crash 1935: Social Security Act: gave workers unemployment insurance, pensions, insurance to families if workers died early TVA: some feared TVA was a form of socialism because the government owned the dams

Fireside chats – radio talks about issues of public concern; explained New Deal; Americans felt like FDR was speaking directly to them; gave them hope and confidence in leadership

Prohibition Repealed - 1933 21st Amendment: ends Prohibition -government can collect taxes on liquor, use it to help national economy

Concerns About the New Deal - policy of deficit spending (spending more money than government receives in revenue) - FDR felt this was a necessary evil that had to be used to help fix economic crisis - supported by British economist John Maynard Keynes - opposite of laissez-faire

Criticisms of Conservative Opponents American Liberty League said New Deal violated rights of individuals and property added to national debt wasted money on relief and encouraged idleness Gave the president too much power

FDR Opponents: Senator Huey Long (Louisiana) planned to run for president Advocated Share-Our-Wealth plan guaranteed annual income of at least $5,000 for every American financed by confiscating wealth of people who made over $5 million per year Slogan: “Every Man a King!” Very popular – 1935 claimed 7.5 million members of Share-Our-Wealth clubs Killed by Dr. Carl Weiss at a rally

1936 Election

Greatest Threat to New Deal: US Supreme Court 1935 & 1936 - National Industrial Recovery Act (NIRA) & Agricultural Adjustment Act (AAA) ruled unconstitutional (NIRA = gives president power to regulate businesses that operate within states) - Supreme Court rules that Congress cannot give presidents more power than the Constitution gives them (even during national emergencies) NIRA: president sets up codes of fair practice to regulate businesses that operate within states

FDR Attempts to Protect New Deal FDR afraid Supreme Court might rule that other New Deal programs are unconstitutional He tries to protect New Deal programs by: 1937: Court-Packing Scheme - plan says presidents can add a new Justice for every Justice over 70 ½ yrs old - would increase court from 7 members to 15 - FDR would have been able to add SIX new Justices Most of the Supreme Court justices were over 70; FDR thinks they are out of touch with what the country really needs Adding 6 Justices means FDR would have control of Supreme Court (conflicts with separation of powers, checks and balances)

Legacy of New Deal on Government Responsibilities of government: -health, welfare, security, & protection & education of citizens -make sure national economy runs smoothly Expansion of democracy: -concept of democracy now includes economic security & social justice in addition to political rights Role of government: -more involvement in citizens’ lives; more regulations, increased taxes to pay for government programs