The US Between Wars FDR and the New Deal
The Supreme Court and the New Deal National Recovery Act (May, 1935) Ruled industry codes were illegal exercise of legislative power by president Ruled government regulating local business not engaged in interstate commerce violated law Agricultural Adjustment Act (Jan. 1936) Unconstitutional exercise of congressional power over local economic activities Minimum wage (June 1936) New York had tried to set minimum wage for women & children Court ruled it a breach of “right to contract”
I’m sorry, but the court says I must chuck you back in.
The First New Deal March 1933 – June 1936 Transformed the role of government Constructed numerous public facilities Provided relief for millions of citizens Did not end the depression Did not win judicial approval
Worker’s Demands Better wages End to employer’s arbitrary power Basic civil liberties for workers Right to picket Right to distribute literature Right to meet to discuss grievances All these things required union recognition
United Auto Workers “Sit-In” Strike
C.I.O.’s Call for Federal Action Economic and social security Public housing Universal health care Old age insurance
Voices of Protest Huey P. Long RCC Priest Charles Coughlin
Share Our Wealth 1934 “Every Man a King” “Kingfish Called for Redistribution of Wealth Confiscation of most of the wealth of the richest Americans Immediate $5,000 grant to all citizens Guaranteed job and annual income ($2,500) for all workers “Kingfish”
The New Deals First New Deal: 1933 – 1935 Focused on short term ECONOMIC RECOVERY Designed to provide immediate recuperative programs for all groups Second New Deal: 1935 – 1938 Focused on ECONOMIC SECURITY Designed to provide a more radical redistribution of power away from big business and toward coal workers, farmers, and consumers.
The Social Security Act Transformed relationship between government and citizens Before 1930s, discussion was should government intervene in the economy After New Deal, question was how government should intervene Government assumed a responsibility for guaranteeing Americans a living wage and protecting them against economic and personal misfortune
Presidential Election of 1936 “A Reckoning with Liberty” Two opposing concepts of liberty became central issue FDR’s (and the Democrats) definition tied liberty to maintaining an acceptable standard of living His opponents (Republicans) tied it to freedom from powerful government
The New Deal Coalition Organized labor Southern whites Northern blacks Protestant farmers Urban Jews & Catholics Industrial workers Middle class home owners Republican progressives
The “Court-Packing” Fight FDR feared that the Supreme Court might invalidate social security, Wagner Act & other measures of the Second New Deal In a ploy to change the balance of the court, FDR proposed that the number of justices be increased from 9 to 15 Amid cries that he was trying to become a dictator, Congress rejected the idea Accomplished his purpose anyway
The Court-Packing Fight Court Packing: Prelude to Tyranny?
The Court-Packing Fight The political cost: Revealed fissures in his governing coalition Angered congressional leaders Misjudged popular sentiment for sanctity of the court Effectively ended his mastery of Congress and Dem. Party Served as a lightening rod for his opponents New coalition blocked nearly every presidential reform initiative between 1937 and mid-1960s
Assessing the New Deal Part 1 Greatly expanded the role of Government in the American economy Made government an independent force in management/labor relations Required employers to negotiate w/ unions Told farmers what they could and could not plant Insured bank deposits Regulated the stock market
Assessing the New Deal Part 2 Loaned money to home owners Provided payments to unemployed and elderly Transformed the physical environment Restored faith in Democracy Redrew the map of American politics Did not generate prosperity