FDR & The New Deal

Election of 1932 Depression had been going on for 3-years. Millions are unemployed, hungry, and homeless. The Democrat, Franklin Delano Roosevelt of NY, easily defeats Hoover.

Election of 1932

Who was Franklin Delano Roosevelt? Know as—”FDR” Born to a very wealthy family in NY. Went to Groton, Harvard, & then Columbia Law School. Married his distant cousin— Eleanor. 5 th Cousin of Teddy Roosevelt.

FDR’s Political Career Served in the NY state legislature. Assistant Sec. of the Navy under Wilson. Democratic VP candidate in 1920 (lost). 2-Time Governor of NY ( ).

Polio In 1921, while vacationing at his family home in Campobello FDR contracts polio. He never walks again.

FDR as Pres. While running for President, FDR had pledged, “a new deal for the American people.” The New Deal became the name for FDR’s programs to end the depression. “We have nothing to fear, but fear itself.” Only US Pres. Elected 4-times.

The Hundred Days The first 3-months after FDR took office, he began a flurry of legislative action aimed at ending the Depression. This was called the Hundred Days. Immediate impact was minimal; but gave people hope.

The Banking Crisis Called for a “Bank Holiday” (closed all banks for 4-days) Then only “sound” banks could reopen. Others would remain closed until the govt. could develop a way to open them safely. Restores public’s confidence in banks again. By 1933 ½ of banks are open again.

The 3-R’s New Deal Programs were aimed at the 3- R’s: –A. Relief for the unemployed. –B. Recovery measures to stimulate the economy. –C. Reform laws to lessen the threat of another economic disaster.

Reform Laws Truth-In-Securities Act —designed to eliminate fraud in the stock market. Creates the Securities & Exchange Commission (SEC) to regulate the stock exchange. The Glass-Steagall Banking Act —Prohibited banks from investing customers’ savings in the stock market. –The Glass-Steagall Act also established the Federal Deposit Insurance Corporation (FDIC) Which insures bank deposits in all member banks.

Fireside Chats FDR’s regular radio addresses to the nation. Very charismatic with public and press.

The Brain Trust Brain Trust = Name given to FDR’s advisors. Many are college professors from Columbia.

FERA To help the unemployed, FDR asked congress to appropriate $500 million to a new agency— the Federal Emergency Relief Administration. Headed by Harry Hopkins. Gave temporary relief, but did not require work (the dole) and hurt people’s self respect. FDR and Hopkins wanted relief programs that would put people to work.

Civil Works Administration CWA Public works projects. 4 million to work Run by FERA Only for 5-months

Civilian Conservation Corp CCC Put thousands of unemployed men to work on conservation projects. Young men 18 – 25. Workers built facilities in state and national parks.

Workers lived in barracks and followed strict schedules (kind of like the army). Women were excluded. Minorities were limited and segregated.

Review Describe FDR’s Background. FDR was the only pres. to do what? How did FDR deal with the banking crisis? Define: 100 Days New Deal Fireside Chats Brain Trust CCC FERA

Agricultural Adjustment Administration AAA Agency set up to help farmers. Paid farmers a subsidy to reduce production. This would cause prices to rise. Favored large farmers over small & led to eviction of many tenant farmers and sharecroppers. Supreme court rule unconstitutional in Said the govt. had no authority to tell farmers to limit production. New = Soil conservation and Domestic Allotment Act.

National Recovery Administration Law = National Industrial Recovery Act (NIRA) Creates The NRA Organization that sought to increase the productivity of industry by relaxing antitrust laws. Sets codes-- production levels, prices, quality standards—for various industries. Establishes minimum wages and maximum hrs. workers can work.

Problems with NRA Section 7(a) gave workers the right to form unions but couldn’t be enforced. Codes written by largest businesses and tended to favor them. Prices raised artificially. Industrial production actually declines. Headed by Hugh Johnson Supreme Court rules is unconstitutional.

Schechter Bros. v. US Poultry biz. In Brooklyn. “Dead Chicken Case” Had violated NRA codes. Not involved in interstate commerce. Supreme court ruled NRA was unconstitutional because Pres. Had taken over legislative powers in drafting codes.

Public Works Administration PWA Was created along with NRA under the national Industrial Recovery Act. Provided job for the unemployed to work on public projects. Built schools, dams, highways, govt. buildings, low income housing, etc. But limited (FDR not sold on deficit spending) Headed by Harold Ickes who was too exact and had trouble spending the $.

Tennessee Valley Authority TVA Built dams in the Tennessee valley to create electricity. Also created jobs and enriched the soil. But backwater flooded some farmers. Business leaders felt it was a socialist program & that it unfairly competed with private businesses.

Norris Dam

2 nd New Deal 1935 In response to criticism from left and right. More aggressive towards corporate interests and the wealthy. Raised taxes on wealthy. Wagner Act (National Labor Relations Act). Gives workers the right to form unions.

Social Security Act 1935, Social Security Act passed. Gave security (money) for the elderly. Also people with disabilities, the unemployed, and dependent children and their mothers. How Social Security Works: Employees pay in throughout their careers Workers got money back in the form of monthly retirement checks.

Housing for the Poor United States Housing Authority (USHA). Spent $540 million building apartments for low income people.

National Youth Administration NYA Youth Provided job training and jobs

Works Progress Administration WPA Big Building Projects—schools, airports, hospitals, playgrounds, etc. LARGER SCALE THAN CWA OR PWA. But also put unemployed teachers. Artists, writers, and actors to work. Wrote plays glorifying New Deal. Oral Histories and travel guides. Painted Murals.

WPA

Other banking stuff Emergency Banking Act—gives govt. greater control over banks. Govt. gives money to banks.