Franklin D. Roosevelt and the New Deal

CONGRESS GETS BUSY FDR’s philosophy: get people help & work through “deficit” spending During the famous “100 Days” (March--June 1933), Congress passed 15 major laws (the New Deal)

Purposes of the New Deal The Three Rs Relief: provide immediate help to the desperate Recovery: provide jobs & get the economy going Reform: prevent future depressions

Immediately declares 4-day bank holiday

Created the Federal Deposit Insurance Corporation (FDIC) Insured account holders up to $5,000 (today up to $250,000)

ALPHABET SOUP AGENCIES CCC – Civilian Conservation Corps 3 million men ages 18-25 worked building roads, parks, planting trees Paid $30/month; $22 went to the family

CCC Civilian Conservation Corps

National Recovery Administration (NRA) FDR believed Depression was caused by too much cutthroat competition Created partnership of business, labor & government to set prices, wages, work hours Businesses who participated got to fly Blue Eagle flag Huge government involvment in the economy

ROOSEVELT’S FIRESIDE CHATS FDR communicated to Americans via radio His frequent talks explained to Americans what he was doing

ALPHABET SOUP AGENCIES FERA – Federal Emergency Relief Agency— $500 million in direct relief (food & clothes) to the neediest Americans Citizens wait outside a FERA in Calipatria, CA for relief checks

The Tennessee Valley Authority (TVA) Huge government program to provide work building dams Provided flood control, electricity & irrigation Copyright 2000, Bedford/St. Martin’s

Agricultural Adjustment Act (AAA) Goal: Raise crop prices for farmers Paid farmers who reduced production of basic crops such as wheat, corn In first year 2 million cows & 6 million pigs destroyed

Securities & Exchange Commission (SEC) Created in 1934 to regulate trading practices in stocks and bonds

CRITICS EMERGE Liberals-- FDR’s NOT doing enough! Conservatives—FDR’s doing TOO much and interfering with free market economy

Criticisms of Conservative Opponents New Deal = socialism (killed individualism) Added to national debt ($35 billion) Wasted money FDR reaching toward dictatorship

American Liberty League Forms This conservative organization had $ but was small in numbers

Father Charles Coughlin Every Sunday Coughlin broadcast radio sermons slamming FDR He called for a guaranteed annual income and nationalized banks 45 million listeners Increasingly anti-Semitic remarks cost him support

Dr. Francis E. Townsend Elderly doctor from CA. Wanted government to pay $200/month to people over 60. Each pensioner would have to spend the $ in 30 days. Would be paid for by a 2% national sales tax

Senator Huey Long (LA) Long said New Deal measures were “mere crumbs” and advocated a share the wealth plan ---a guaranteed annual income of $5,000 for every American ---to be paid for by taking wealth of people who made over $1 million per year)

The Second New Deal (1935-36) Many were still out of work FDR took still more action

Works Progress Administration (WPA) Biggest New Deal agency; employed 8 million WPA workers built 850 airports, 651,000 miles of roads and streets, 125,000 public buildings, reservoirs, irrigation, sewage, schools, playgrounds Also hired artists, writers, musicians, photographers to create art The Davis Street School Extension in Atlanta under construction as part of the Works Progress Administration Program, November 2, 1936

Federal Theatre Project

WPA Murals Tam Mural WPA Murals In SF San Geronimo mural

The W.P.A. at Work

REA Rural Electrification Administration 1935

SUPREME COURT REACTS 1935 Struck down NRA as unconstitutional (too much govt control over industry) Also killed AAA (said agricultural was a local not a federal matter) The Supreme Court -- 1935

Wagner Act Guaranteed unions right to organize & bargain collectively Established National Labor Relations Board to mediate disputes

SOCIAL SECURITY ACT Pensions for those over 65 Paid for by tax out of people’s paycheck (payroll tax) Unemployment compensation Aid to families with dependent children & disabled (1st direct welfare program)

Soak the Rich”Act of 1935 Response to Huey Long Increased taxes on large incomes & corporations.

Second Agricultural Adjustment Act Educated farmers how to use land without damaging it Paid farmers to follow conservation practices

FDR & Eleanor campaign by rail in 1936 FDR WINS AGAIN IN 1936 Wide appeal, especially in urban areas Blacks, Jews, Catholics, immigrants all supported the popular president FDR & Eleanor campaign by rail in 1936

Court-Packing Plan FDR frustrated w/Court’s conservative members Proposed increasing Court from 9 to 15 members, so he could appoint supporters Even fellow Democrats outraged

Court packing plan cartoon here

Fair Labor Standards Act (1938) Set minimum wage & maximum 40-hour work week

THE IMPACT OF THE NEW DEAL Opinions range from harsh criticism to high praise – usually along partisan lines Conservatives feel FDR made government too large & powerful Liberals feel govt intervention was necessary and effective

LEGACIES OF THE NEW DEAL FDIC – banking insurance critical to sound economy Deficit spending has became a normal feature of government Social Security is a key legacy of the New Deal in that the Feds have assumed a greater responsibility for the social welfare of citizens since 1935