Redefined Democracy: Political Rights  Economic Security  Social Justice

 Agricultural overproduction  Industrial overproduction  Political decisions  Banking and Money Policies  Stock Market Actions

 In 1932 presidential election, FDR was perceived as a man of action.  Results: a landslide for Democrats

 In March 1933, the country was virtually leaderless and the banking system had collapsed.

 In his inaugural address, he said “The only thing we have to fear is fear itself….”  He promised vigorous leadership and bold action, called for discipline and cooperation

 Talks on the radio about public concerns  Helped restore confidence back in the American people

 He was a practical politician who practiced the art of the possible.  He was a charismatic person who exhibited a warmth and understanding of people.  He knew how to handle press by focusing attention on Washington.  He provided dynamic leadership in a time of crisis.

 Relief: to provide jobs for the unemployed and to protect farmers from foreclosure  Recovery: to get the economy back into high gear, “priming the pump”  Reform: To regulate banks, to abolish child labor, and to conserve farm lands  Overall objective: to save capitalism

 Brains Trust: specialists and experts, mostly college professors, idea men  New Economists: government spending, deficit spending and public works, government should prime economic pump  Roosevelt Cabinet: included conservatives, liberals, Democrats, Republicans, inflationists, anti-inflationists -- often conflicting, compromising, blending ideas

 Emphasis: relief  Primary aim: economic recovery  Philosophy: economic nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity)  Objectives: higher prices for agriculture and business  Beneficiaries: big business and agricultural business

 Purpose: the recovery of agriculture  Paid farmers who agreed to reduce production of basic crops such as cotton, wheat, tobacco, hogs, and corn  Money came from a tax on processors such as flour millers and meat packers who passed the cost on to the consumer

 Purpose: relief  Gave outdoor work to unemployed single men between the ages of 17 and 29  They received $30 per month, but $22 went back to the family

 Purpose: recovery of industry  Created a partnership of business, labor, and government (NRA) to attack the depression with such measures as price controls, high wages, and codes of fair competition

 Political disunity was evident. There were critics on the right and the left. NEW DEAL

 Conservative opponents said the New Deal went too far:  It was socialism (killed individualism)  It added to the national debt ($35 billion)  It wasted money on relief and encouraged idleness  It violated the constitution & states rights  It increased the power of the Presidency (FDR was reaching toward dictatorship, Congress a rubber stamp, independence of judiciary threatened, separation of powers shattered)

 Senator Huey Long said New Deal relief measures were mere crumbs and advocated a share the wealth plan (i.e., a guaranteed annual income of at least $5,000 for every American, financed by confiscating wealth of people who made over $5 million per year).

 Emphasis: reform  Political Position: liberal  Primary aim: permanent reform  Philosophy: international economic cooperation and economic abundance  Objectives: increased purchasing power and social security for public  Beneficiaries: small farmers and labor

 Purpose: reform  Gave money to states for aid to dependent children, established unemployment insurance through payroll deduction, set up old-age pensions for retirees.

 Purpose: reform  Put restraints on employers and set up a National Labor Relations Board to protect the rights of organized labor to bargain collectively with employers.

 Purpose: recovery for agriculture  Paid farmers for conservation practices, but only if they restricted production of staple crops.

 Purpose: recovery and reform  Used federal funds to tear down slums and construct better housing.

The New Deal Relief Immediate action taken to halt the economies deterioration. Recovery "Pump - Priming" Temporary programs to restart the flow of consumer demand. Reform Permanent programs to avoid another depression and insure citizens against economic disasters. Bank Holiday Agricultural Adjustment Act (AAA) Securities & Exchange Commission (SEC) Emergency Banking Act National Industrial Recovery Act (NIRA) Federal Deposit Insurance Corporation (FDIC) Federal Emergency Relief Act (FERA) Home Owners Loan Corp. Social Security Administration Civil Works Administration (CWA) Works Progress Administration (WPA) National Labor Relations Act and National Labor Relations Board (NLRA/NLRB) Civilian Conservation Corps (CCC) Tennessee Valley Authority (TVA) Soil Conservation Act

The New Deal Relief Immediate action taken to halt the economies deterioration. Recovery "Pump - Priming" Temporary programs to restart the flow of consumer demand. Reform Permanent programs to avoid another depression and insure citizens against economic disasters. Bank Holiday Declared so that the panic would be stopped. Agricultural Adjustment Act (AAA) Taxed food processors and gave the money directly to farmers as a payment for not growing food. This decreased supply so price would go up. Securities & Exchange Commission (SEC) Permanent Agency set up to monitor stock market activity and ensure that no fraud or insider trading was taking place. Emergency Banking Act Closed the insolvent banks and only reopened the solvent ones. National Industrial Recovery Act (NIRA) Created the NRA (National Recovery Administration) a consortium of businesses organized by the government and given the power to set rules and regulations for the economy. Members of the NRA displayed a blue eagle. Federal Deposit Insurance Corporation (FDIC) Permanent Agency designed to insure depositors money in savings banks. Originally insured up to $5,000 per depositor today it has increased to $100,000. Federal Emergency Relief Act (FERA) Gave immediate help to those that needed it in the form of cash payments. Home Owners Loan Corp. Gave loans to home owners so they could pay their mortgages. This prevented people from going homeless and prevented banks from going under. Social Security Administration Permanent agency designed to ensure that the older segment of society always would have enough money to survive. The key here is that they would then also be able to spend throughout their lives. Civil Works Administration (CWA) Provided temporary jobs repairing roads and bridges. Works Progress Administration (WPA) Provided long term government jobs building schools and other public works projects. National Labor Relations Act and National Labor Relations Board (NLRA/NLRB) Otherwise known as the Wagner Act it helped unions and thus helped workers. This acted created the NLRB (National Labor Relations Board) which enforced labor law and made sure that fair business practices where upheld. Civilian Conservation Corps (CCC) Temporary jobs to unmarried single adults filling sand bags and helping out at disaster type situations. Participants lived in barracks type housing. Tennessee Valley Authority (TVA) Agency created to build dams in the Tennessee river valley. These dams provided more stable irrigation and cheap hydroelectric power. Soil Conservation Act Laws mandating proper soil maintenance to make sure that another dust bowl was avoided.

 Father Charles Coughlin was a radio priest from Detroit He claimed there was an international bankers conspiracy and Jews were responsible.  He advocated nationalization of banking and currency and national resources and demanded a “living wage.”

 Attacked soil erosion  Built dams and planted trees to prevent floods  Reclaimed the grasslands of the Great Plains  Developed water power resources  Encouraged regional reconstruction projects like the TVA and Columbia River project

 Established the principle that government has responsibility for the health, welfare, and security, as well as the protection and education of its citizens  Embraced social security, public health, housing

 Strengthened executive branch  Reasserted presidential leadership

 Redefined the concept of democracy so that it included not only political rights but economic security and social justice as well.

 The total cost of the current bailout now exceeds $4.6 trillion dollars. It has cost more than all of these government expenditures combined. Figures in parentheses have been adjusted for inflation:  Marshall Plan: Cost: $12.7 billion ($115.3 billion)  Louisiana Purchase: Cost: $15 million ($217 billion)  Race to the Moon: Cost: $36.4 billion ($237 billion)  S&L Crisis: Cost: $153 billion ($256 billion)  Korean War: Cost: $54 billion ($454 billion)  The New Deal: Cost: $32 billion est.($500 billion est.)  Invasion of Iraq: Cost: $551billion ($597 billion)  Vietnam War: Cost: $111 billion ($698 billion)  NASA: Cost: $416.7 billion ($851.2 billion)  TOTAL: $3.92 trillion