The New Deal FDR’s plan to end the Great Depression

Election of 1932 Republicans re-nominated Hoover Tarnished by Depression “if the economy’s good…” “if the economy’s good…” Rugged Individualism – gov’t should not help people unemployed Rugged Individualism – gov’t should not help people unemployed Believed gov’t controls only slowed economic recovery Community Chests – privately organized welfare Community Chests – privately organized welfare

Democrats in 1932 Al Smith wanted to run again (NY, Catholic) Speaker of the H- John Nance Garner (TX) Franklin Delano Roosevelt Harvard & Columbia, Assist Sec of Navy, Governor of NY, many similarities to his cousin Harvard & Columbia, Assist Sec of Navy, Governor of NY, many similarities to his cousin Struck with polio in 1921 – recovery made him stronger – most did not know of the paralysis Struck with polio in 1921 – recovery made him stronger – most did not know of the paralysis Won the nomination & band played “Happy Days are Here Again” Won the nomination & band played “Happy Days are Here Again” Slogan: “I pledge you…a new deal for the American People!” Slogan: “I pledge you…a new deal for the American People!”

Roosevelt won by a landslide 472 electoral votes to 59 for Hoover

First 100 Days Bank Holiday – closed every bank until it had been checked & found solvent Emergency Banking Bill Emergency Banking Bill Most banks closed for a week Most banks closed for a week Fireside Chats – radio speeches to explain to public what he was doing Main reason people trusted him Main reason people trusted him Proposed New Deal programs 3Rs – relief, recovery, reform 3Rs – relief, recovery, reform See worksheet! See worksheet!

Critics of the New Deal Not voiced until starting in 1934 American Liberty League – Reps & conservative Dems wanted to defend laissez – faire policies – against any gov’t regs on them Many major corporations joined (DuPont, GM) Many major corporations joined (DuPont, GM) Huey Long – “Share Our Wealth Program” Extreme liberal Dem – Extreme liberal Dem – Federal gov’t confiscate all income over $1 million to give a $5,000 home and $2,000/yr income Federal gov’t confiscate all income over $1 million to give a $5,000 home and $2,000/yr income Began to run for Pres…was assassinated Began to run for Pres…was assassinated

More criticism… Father Charles Coughlin – on radio – Catholic Usually covered politics not religion Usually covered politics not religion Claimed FDR in bankers’ pocket Claimed FDR in bankers’ pocket Prejudiced against Jews, felt they were benefiting Prejudiced against Jews, felt they were benefiting Dr. Francis E. Townsend – Townsend Plan California physician California physician Federal $ to elderly - $200/ month over 60 yrs old Federal $ to elderly - $200/ month over 60 yrs old Plan dropped when realized ½ of gov’t $ would go to 1/11 th of the population Plan dropped when realized ½ of gov’t $ would go to 1/11 th of the population Upton Sinclair – Socialist cand. Gov of CA – EPIC/ “End Poverty in Calif” - lost election

FCC Established by Communications Act, nd New Deal Regulates all interstate & international communication Originally radio, today TV, cable, satellite Originally radio, today TV, cable, satellite Still exists today

Election of 1936 FDR v. Alfred Landon – Gov of Kansas Landon supported several New Deal programs, promised to help businesses Landon supported several New Deal programs, promised to help businesses Long & Coughlin supporters formed 3 rd party Union Party – ran William “Liberty Bill” Lemke Union Party – ran William “Liberty Bill” Lemke Failed miserably – not one electoral vote Failed miserably – not one electoral vote FDR won again big time – 523 to 8 – 523 to 8

Supreme Court Actions 1935 Court declared 5 New Deal programs unconstitutional (AAA, NRA, etc) 1936, four other decisions against FDR, including minimum wage law from NY FDR’s response was to “pack the court” If a justice didn’t retire at 70, pres had the right to add a new justice for each over 70 (not past 15) FDR went to 12 justices & be pro- New Deal FDR went to 12 justices & be pro- New Deal Senate killed bill – his 1 st defeat in Congress Will actually get to appoint 7 new justices legally anyway Will actually get to appoint 7 new justices legally anyway

Results… FDR’s fight with Court did lasting political damage & weakened his popular support However the Court will uphold the NLRB and Social Security However the Court will uphold the NLRB and Social Security Ballooning federal deficit Depression still happening/ unemployment Congress demanded & got a balanced budget for 1938 – cut many programs Fair Labor Standards Act – last big win for FDR – est federal minimum wage/ max hours

How did the New Deal change the US? 1.Expanded power of the fed gov’t 2.Extended power of the president Probably strongest President since Lincoln Probably strongest President since Lincoln 3.Deficit spending by gov’t is now common John Maynard Keynes favored this John Maynard Keynes favored this 4.Fed gov’t running social programs 5.Gov’t demonstrated concern for workers 6.Conservation movement gained strength 7.renewed people’s faith in democracy