Roosevelt and the Great Depression. *FDR* When he was inaugurated unemployment had increased by 7 million. Poor sections (like Harlem) had 50% of the.

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Presentation transcript:

Roosevelt and the Great Depression

*FDR* When he was inaugurated unemployment had increased by 7 million. Poor sections (like Harlem) had 50% of the pop. unemployed Instated the “New Deal” Yea! Frankie!

People everywhere were effected by the depression It wasn’t till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope

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THE NEW DEAL this was the name FDR gave to his new program to fight the Depression it was a revolution in American society - changed completely the way the gov't functions the first phase of the New Deal dealt exclusively w/ eco. reform - unlike Hoover, FDR believed gov't legislation/involvement was crucial to stimulate the economy step 1 - dealt w/ the banking crisis - BANKING HOLIDAY- banks shut down and subject to gov't inspection, allowed to open when "healthy"- people's confidence returned  they redeposited, allowing banks to invest in the economy

The Background 3 A man who was to become one of the most successful and well liked presidents of all time Find out more about him.

The Background Roosevelt soon came to the conclusion that a massive change in the American way of life was needed to tackle the problems. “The nation asks for action and action now.” “Our greatest primary task is to put people to work.” What was needed was a

Banking Banking Acts 1933 and 1935 Investors deposits insured No gambling in securities Fireside chats used to encourage people to put money back into banks Bank Holiday only secure banks allowed to re-open

Industry poor Farming Stock Market Banking Alphabet Agencies Find out more - Internet.

Destitute Federal Emergency Relief Act ( F E R A ) $500 million to state governments to provide relief SuccessesProblems

Destitute - Problems Many states penalized by dollar matching arrangements People treated horribly by states who believed people should help themselves Variations in relief provided – Georgia didn’t provide direct relief.

Destitute - Successes a move away from laissez faire Helped prevent starvation Won political support for the Democrats from the poor Lowered unemployment from 13 million to 6 million by 1941.

SPECIFIC PIECES OF LEGISLATION (direct gov't intervention in the eco.)(called "Alphabet Soup")

Industry The New Deal introduced major breaks with traditional practices. N.R.A. Social Security Act Wagner Act Fair Labor Standards Act

TENNESSEE VALLEY AUTHORITY (TVA) - used to promote hydroelectric power, control flooding - lower rates  private industry, manuf. fertilizer  fed. gov't. took ownership (nationalization v. privatization)

AGRUCULTURAL ADJUSTMENT ACT (AAA) - passed in 1933 to aid formers- its objective was to restore farmers' purchasing power and to restore the family farm - AAA had farmers cut back on crop production by paying them equivalent SUBSIDIES (paid not to produce) - bad side: 1) food production down when millions were starving 2) Black sharecroppers were hurt: white landowners paid not to farm so they got rid of Black tenant formers in 1935, AAA was declared unconstitutional by courts (too much control over individual states), so it was revised and introduced as new legislation EX: Food Stamp Act of gave away surplus food to poor, also guaranteed (small) farmers a market

UNEMPLOYMENT - still a major problem FDR like Hoover was wary of gov't handouts - he wanted people to earn their keep so gov't agencies were created - temporarily - to address the unemp. problem CIVILIAN CONSERVATION CORPS (CCC) - in set to establish work for young men (18-25) in areas of reforestation, soil conservation, flood control, road construction - also took them out of urban labour markets - but Blacks not permitted to enrol

other agencies had specific mandates too...NATIONAL YOUTH ADMIN. (NYA) - created jobs for young in urban areas FED. EMERGENCY RELIEF ACT (FERA) - aimed at older workers- these and other similar agencies worked well, but unemp. was still at 6 million in 1941(solution for this would be the ind. boom of WW2) NEW DEAL - SOCIAL REFORM ASPECT- after 1935, w/ immediate economic relief & reform addressed, New Deal turned to Social Welfare - more legislation... National Labour Relations Act (aka Wagner Act)- it legitimized unions and labour tactics such as collective bargaining & collective action (strikes, etc...) - it outlawed BLACKLISTS & other anti-union practices

Social Security Act (1935)- feared by opponents as "creeping socialism"- this act typifies the WELFARE STATE - unemployment insurance, old age pensions Problem: it took some $ out of circulation (payroll deductions) at a time when purchasing power was already low- also, it only covered the unemployed "Soak The Rich" tax

ELECTION OF FDR won easily (v Repub. Alf Landon - Kansas governor) this victory gave FDR a mandate to continue his New Deal policies first objective: to reorganize the Supreme Court - they disallowed some New Deal legislation FDR wants # of judges changed from 9  15 (to "pack the court") - great opposition, so FDR w/drew this proposal but judges retired & FDR got to appoint new ones  they approved all New Deal legislation

the late 1930's – new Qs arose… FDR concerned w/ int'l issues in 1939 he proposed no new major domestic reform measures (1st time in his pres.) ELECTION OF FDR broke with tradition & ran a 3rd time FDR v. Wendell Wilkie - the big issue here was American support of the Allies (G.B.), now embroiled in WWII v. Nazi Ger. both U.S. pol. parties wanted to support G.B. but to remain neutral - in fact a CONSENSUS had developed b/n the Dems. and Repubs. both parties approved of (most) New Deal legislation & wanted an isolationist foreign policy- FDR won in 1940 (and again in 1944)

IMPACT OF THE NEW DEAL a 3rd revolution in American culture and politics- more gov't involvement but w/in the context of traditional U.S. democracy (not socialist…) New Deal helped in stimulating the U.S. economy, but only WWII would solve any lingering problems  unemployed found jobs in munitions factories and the military as the U.S. became the ARSENAL OF DEMOCRACY New Deal saw expansion of U.S. gov't in : 1) eco. - constant gov't intervention/deficit spending 2) social reform - welfare state - after this pt the U.S. gov't was expected to play a role in any economic crisis so FDR fundamentally reformed (not transformed) American society…