1. FRANKLIN D. ROOSEVELT AND THE NEW DEAL America: Past and Present Chapter 26

2. The Great Depression n 1920s optimism drives increase in expectations of a better way of life n After 1929 despair sets in

3. The Great Bull Market n 1928--soaring stock prices attract individual, corporate investment n 1929--stock market crashes – Directly affects 3 million – Credit crunch stifles business n Businesses lay off workers n Demand for consumer goods declines

4. The Great Depression n Hardship affects all classes n The middle class loses belief in ever- increasing prosperity n Thousands of young homeless, jobless

5. Unemployment, 1929-1942

6. Fighting the Depression n Republican attempts to overcome catastrophe flounder n Depression gives Democrats opportunity to regain power

7. Hoover and Voluntarism n Hoover initially seeks solution through voluntary action, private charity n Eventually aids farmers and bankers n Resists Democratic efforts to give direct aid to the unemployed – Perceived as indifferent to human suffering – Programs seen as incompetent

8. Bank Failures, 1929-1933

9. The Emergence of Roosevelt n Franklin Roosevelt – Born to wealth and privilege – 1921--crippled by polio – 1928--elected governor of New York – Talented politician n 1932--defeats Hoover with farmer- worker-immigrant-Catholic coalition

10. The Hundred Days n Banking system saved from collapse n Fifteen major laws provide relief n New Deal aims to reform and restore, not nationalize, the economy

11. Roosevelt and Recovery n National Recovery Administration – Industries formulate codes to eliminate cut- throat competition, ensure labor peace – Codes favor big business, unenforceable – 1935--NRA ruled unconstitutional n Agricultural Adjustment Act of 1933 – Farmers paid to take land out of cultivation – Prices increase – Sharecroppers, tenant farmers dispossessed

12. Roosevelt and Relief n 1933--Harry Hopkins placed in charge of RFC to direct aid to unemployed n 1933--Civilian Conservation Corps provides employment to young people n 1935--Works Progress Administration place unemployed on federal payroll n Programs never sufficiently funded

13. Roosevelt and Reform n 1933-34--focus on immediate problems n 1935--shift to permanent economic reform

14. Angry Voices n Father Charles Coughlin advocates nationalizing banks, anti-Semitism n Francis Townsend calls for wealth redistribution from young to the elderly n Huey Long calls for redistribution of wealth by seizing private fortunes

15. Social Security n 1935--Social Security Act passed n Criticisms – Too few people would collect pensions – Unemployment package inadequate n Establishes pattern of government aid to poor, aged, handicapped

16. Labor Legislation n 1935--Wagner Act – allows unions to organize – outlaws unfair labor practices n 1938--Fair Labor Standard Act – maximum hour – minimum wage

17. Impact of the New Deal n Roosevelt’s leftward turn erodes support for Coughlin, Townsend, Long n Remains within mainstream of American traditions n Helps labor unions most n Helps women, minorities least

18. Rise of Organized Labor n 1932--National Recovery Act spurs union organizers n Congress of Industrial Organization (CIO) formed by John L. Lewis n CIO unionizes steel, auto industries n 1940--CIO membership hits 5 million, 28% of labor force unionized

19. The New Deal Record on Help to Minorities n Crop reduction program allows whites to fire or evict blacks, Hispanics n Public works programs help by providing employment n New Deal figures convince minorities that the government is on their side n 1934--Indian Reorganization Act gives American Indians greater control

20. Women at Work n Position of women deteriorates in ‘30s – Jobs lost at a faster rate than men – Hardly any New Deal programs help n Progress in government – Frances Perkins, Secretary of Labor, the first woman cabinet member – Women appointed to several other posts – Eleanor Roosevelt a model for activism

21. End of the New Deal n 1936--New Deal peaks with Roosevelt’s reelection n Congress resists programs after 1936

22. The Election of 1936 n FDR’s campaign – Attacks the rich – Promises further reforms – Defeats Republican Alf Landon n Democrats win lopsided majorities in both houses of Congress n FDR coalition: South, cities, labor, ethnic groups, African-Americans, poor

23. The Supreme Court Fight n Supreme Court blocks several of FDR’s first-term programs n 1937--FDR seeks right to "pack" Court n Congressional protest forces retreat n FDR’s opponents emboldened

24. The New Deal in Decline n 1936--cutbacks for relief agencies n 1937--severe slump hits economy n Roosevelt blamed, resorts to huge government spending n 1938--Republican party revives

25. Evaluation of the New Deal n New Deal’s limitations – Depression not ended – Economic system not fundamentally altered – Little done for those without political clout n Achievements – Social Security, the Wagner Act – Political realignment of the 1930s