We will use some of the steps we have learned to assess President Roosevelt’s New Deal Policies and their effects on the United States after the Great Depression.

For more info regarding the Public Policy Analyst steps click below:

Define the problem * Gather evidence * Identify causes * Evaluate a policy * Develop solutions Select best solution

http://www2.maxwell.syr.edu/plegal/ppae/ppae1.html

1929- Stock Market Crash› Thousands of banks collapse › Decline of production across all markets

1933- 25% of America unemployed Song of the Great Depression

› “Brother Can You Spare a Dime” But new hope with election of 1932

› Franklin Delano Roosevelt› “Happy Days Are Here Again”

So long sad timesGo long bad timesWe are rid of you at last

Howdy gay timesCloudy gray timesYou are now a thing of the past

Happy days are here againThe skies above are clear againSo let's sing a song of cheer againHappy days are here again

Altogether shout it nowThere's no oneWho can doubt it nowSo let's tell the world about it nowHappy days are here again

Your cares and troubles are goneThere'll be no more from now onFrom now on ...

Happy days are here againThe skies above are clear againSo, Let's sing a song of cheer again

Happy timesHappy nightsHappy daysAre here again  

Were the “Happy Days here again” with the New Deal ?

After reading the lyrics to “Happy Days Are Here Again,” in your notebooks, take a few minutes to answer the Big Question.

United States Great DepressionUnited States Great Depression(Unemployment)(Unemployment)

United States Great DepressionUnited States Great Depression(Unemployment)(Unemployment)

1932 ELECTION 1 out of 4 was

unemployed… national income

was 50% of what it had been in 1929

Republicans nominated Hoover no hope

Winner by a landslide = FRANKLIN DELANO ROOSEVELT (Democrat - N.Y. governor)

FDR brought optimism to the country – spoke to the people- fireside chats

New Deal for the people Creation of the modern

government› Expanded federal

government to greatest heights

› A controversial expansion Progressivism firmly entrenched

in the Democratic Power Myth- Hoover did nothing to

spark New Deal Truth- The RFC – Reconstruction

Finance Corporation

Was the New Deal an appropriate response to the Great Depression?

Did it go too far in expanding the federal government?

Was it effective? How did life change for

Americans through its policies?

What were its criticisms

Be sure to think about these questions as you analyze President Roosevelt’s New Deal Policies

Use the following worksheet to document your evaluation

Worksheet4: "Evaluating Existing Public Policies"(HTML)

The Dust Bowl

Government programs which provided direct relief to suffering Americans through government spending

It was a revolution in American society - changed completely the way the government functions ……… Renew democracy Restore confidence in the banking Stimulate economy Put people back to work. Restore self confidence

Relief:Relief: ease suffering of the needyRecovery:Recovery:begin economic growth

Reform:Reform: help prevent future economic crises

How? FDR’s 3 R’sHow? FDR’s 3 R’s

Social EngineersSocial EngineersBrain Trust

Roosevelt was very successful getting New Deal legislation passed-100 days100 days

….FDR and Congress went to work providing for direct reliefrelief, recoveryrecovery

and reformreform.

From March of 1933 to June of 1933, Roosevelt sent 15 proposals15 proposals to

Congress and all 15 were adopted15 were adopted

Congress and President tried anything tried anything reasonablereasonable to overcome the Great

Depression.

Part of FDR’s New Deal……

Agencies created by the US Govt.

to bring about the 3 R’s……Relief, Relief, Recovery, and Recovery, and

ReformReform.

WPA / 1933 to 1943WPA / 1933 to 1943Works Progress AdministrationWorks Progress Administration

Employed 8.5 million workers in construction and other jobs, but

more importantly provided work in arts, theater, and literary projects.

RELIEFRELIEF: : Ease Suffering of the NeedyEase Suffering of the Needy

•Works Progress Administration (WPA), the

New Deals main relief agency.

•People employed by the WPA at its peak was more

than 3 million

•2,500 hospitals

•5,900 schools

•13,000 playgrounds

•125,000 public buildings

CCC / CCC / 1933 to 19421933 to 1942Civilian Conservation CorpsCivilian Conservation Corps•Sent 3 million young men to work camps to build bridges, replant forests and other

conservation tasks. •Develop job skills and improve

environment.• Removed surplus of workers from cities,

provided healthy conditions for boys, provided money for families.

RELIEFRELIEF: : Ease Suffering of the NeedyEase Suffering of the Needy

UNEMPLOYMENT - still a major problem

FDR like Hoover was wary of gov't handouts - he wanted people to earn their keep so gov't agencies were created - temporarily - to address the unemp. problem

CIVILIAN CONSERVATION CORPS (CCC) - in 1933 - set to establish work for young men (18-25) in areas of reforestation, soil conservation, flood control, road construction - also took them out of urban labour markets - but Blacks not permitted to enrol

Created up to four million jobs in construction

Provided jobs constructing huge public works such as bridges and dams

Goals Create jobs Strengthen

American industry

•Also called the National Recovery ActNational Recovery Act.

•Helped businesses organize codes setting prices and minimum wage.

•Put people back to work at decent jobs, wages and working conditions.

•Businesses were not forced to join this.

•Declared unconstitutional unconstitutional by the Supreme Court in 1935 because it violated powers given to excutive

branch by legislative branch .

•Violated separation of powers, executive not allowed to enforce

intrastate commerce

NATIONAL INDUSTRIAL RECOVERY ACT (NIRA) and NATIONAL RECOVERY ADMIN (NRA) were established to end animosity between labor and business all was redirected to industrial growth fair labor codes established - wages, no child labor, shortened work hours- business people challenged the NRA, claiming it was communist

They formed the LIBERTY LEAGUE - at LL's urging, the Supreme Ct. overturned the NIRA & NRA, claiming that federal government was exceeding its authority (by interfering in state jurisdiction)

AAA / 1933AAA / 1933 Agricultural Adjustment ActAgricultural Adjustment Act

RECOVERYRECOVERY: Begin Economic : Begin Economic GrowthGrowth

•Protected farmers from price dropsprice drops and over over productionproduction..• US Govt. Paid farmersPaid farmers (subsidies)

•not to grow crops, produce dairy products such as milk and butter or raise pigs and lambs. •Goal of raising prices of agriculture

•Prevent another Dust BowlDust Bowl, teach farmers methods of preventing soil erosion.

AGRUCULTURAL ADJUSTMENT ACT (AAA) - passed in 1933 to aid farmers- its objective was to restore farmers' purchasing power and to restore the family farm - AAA had farmers cut back on crop production by paying them equivalent SUBSIDIES (paid not to produce) the goal was to increase prices of farm goods - bad side:

1) food production down when millions were starving

2) Black sharecroppers were hurt: white landowners paid not to farm so they got rid of Black tenant formers

in 1935, AAA was declared

unconstitutional by courts (too much control over individual states), so it was revised and introduced as new legislation- Soil Conservation Act

Second AAA EX: Food Stamp Act of 1939 - gave

away surplus food to poor, also guaranteed (small) farmers a market

TVA / 1933TVA / 1933 Tennessee Valley AuthorityTennessee Valley Authority

•Federal government built a series of dams to prevent flooding and sold

electricity. •First public competition with private

power industries.

RECOVERYRECOVERY: Begin Economic : Begin Economic GrowthGrowth

•Develop a poor section of the Southeast Develop a poor section of the Southeast U.S.U.S.

•Stimulate the economy and produce Stimulate the economy and produce cheap electricity.cheap electricity.

•Control floods, planting new forests.Control floods, planting new forests.

•Bring this section into the 20Bring this section into the 20thth century. century.

Controversial- is government Controversial- is government overstepping bounds into private overstepping bounds into private

sectorsector

94 percent94 percent of property owners and 98 percent of tenants did not have of property owners and 98 percent of tenants did not have electricity. electricity.

30 percent30 percent of property owners and 41 percent of tenants had no toilet of property owners and 41 percent of tenants had no toilet facilities whatsoever facilities whatsoever

65 percent65 percent of property owners and of property owners and 78 78 percentpercent of tenants had to travel at least of tenants had to travel at least 300 yards to get their household water. 300 yards to get their household water.

8 percent8 percent of property owners and of property owners and 3 3 percentpercent of tenants owned radios (usually of tenants owned radios (usually

battery operated).battery operated).

39 percent39 percent of property owners and of property owners and 23 23 percentpercent of tenants had phonographs of tenants had phonographs (including record players that were (including record players that were

operated with a hand crank). operated with a hand crank).

50 percent50 percent of property of property owners and owners and 25 percent25 percent of of tenants read newspapers.tenants read newspapers.

26 percent26 percent of property of property

owners and owners and 16 percent16 percent of of tenants owned automobiles.tenants owned automobiles.

7 percent7 percent of property owners of property owners

and and 4 percent4 percent of tenants of tenants owned trucks.owned trucks.

TENNESSEE VALLEY AUTHORITY (TVA) - used to promote hydroelectric power, control flooding - lower rates private industry, manuf. fertilizer fed. gov't. took ownership (nationalization v. privatization)

Created federally insured bank deposits ($2500 per investor at first) to prevent bank failures.

REFORMREFORM:: Prevent Another Depression Prevent Another Depression

FDIC / 1933FDIC / 1933Federal Deposit Insurance CorporationFederal Deposit Insurance Corporation

The first phase of the New Deal dealt exclusively with economic reform - FDR believed government legislation/involvement was crucial to stimulate the economy

Step 1 – deal with the banking crisis

BANKING HOLIDAY- banks shut down and subject to government inspection, allowed to open when "healthy"- people's confidence returned in depositing in banks, allowing them to reinvest in the economy.

Step 3 – Increase the money supply

FDR went off the GOLD STANDARD (government could print more money than Fort Knox gold reserves would allow)-

With more money in circulation, wages and prices increased

More inflation caused dollar value to lower which gave government spending power (Keynesian economics)

Regulated stock market and restricted margin buying, and frauds.

REFORMREFORM:: Prevent Another Depression Prevent Another Depression

SEC / 1934SEC / 1934 Securities and Exchange Securities and Exchange

CommissionCommission

Stock RegulationStock Regulation

Step 2 - Stock market reform

Security Exchange Commission established to police the Stock Exchange -practice of buying on margin was regulated

The National Labor Relations Act › also called the Wagner Act› It guaranteed workers the right to organize unions without interference

from employers and to bargain collectively. › The National Labor Relations Board (NLRB) which organized factory

elections by secret to determine whether workers wanted a union. › The NLRB then certified successful unions. › The new law also set up a process whereby dissatisfied union members

could take their complaints to binding arbitration, in which neutral party would listen to both sides and decide issues.

› The NLRB was authorized to investigate the actions of employers and had the power to issue “cease and desist” orders against unfair practices.

The United Mine Workers union began to work with other unions to organize workers in industries where unions did not exist.

To do this, they formed the CIO They began with automobile and steel industries—two of

the largest industries In late December 1936, General Motors launched a sit-

down strike do to the first sit-down strike due to the demotion of two workers

Violence broke out in Flint when police launched a tear gas assault on one of the smaller plants.

Afterward, GM broke down and recognized the CIO union, United Auto Workers as its employees sole bargaining organization.

This led to others using the sit-down strike as a method in other industries.

other agencies had specific mandates too...NATIONAL YOUTH ADMIN. (NYA) - created jobs for young in urban areas

FED. EMERGENCY RELIEF ACT (FERA) - aimed at older workers- these and other similar agencies worked well, but unemp. was still at 6 million in 1941(solution for this would be the ind. boom of WW2)

NEW DEAL - SOCIAL REFORM ASPECT- after 1935, w/ immediate economic relief & reform addressed, New Deal turned to Social Welfare - more legislation...

National Labour Relations Act (aka Wagner Act)- it legitimized unions and labour tactics such as collective bargaining & collective action (strikes, etc...) - it outlawed BLACKLISTS & other anti-union practices

•One of the most important features of the New DealNew Deal.

•Established a retirement for persons over 65 funded by a tax on wages paid equally by

employee and employer.

•Old age insurance

•Protect Americans who were unable to support themselves.

•Unemployment compensation

•Compensation to disabled workers and assistance to

widows and children

Social Security Act (1935)- feared by opponents as "creeping socialism"- this act typifies the WELFARE STATE - unemployment insurance, old age pensions

Problem: it took some $ out of circulation (payroll deductions) at a time when purchasing power was already low- also, it only covered the unemployed

Roosevelt vs Landon FDR wins in a

landslide this victory gave FDR

a mandate to continue his New Deal policies

first objective: to reorganize the Supreme Court - they disallowed some New Deal legislation

Congressional opposition was beginning to grow; many of his laws, including the WPA, were taking a long time to get passed and met

resistance.

Schechter v. United States› The Schechter brothers had a poultry business in Brooklyn. › They had been convicted in 1933 of violating the NIRA’s Live

Poultry Code; they had sold diseased chickens and violated the code’s wage-and-hour provisions.

› Known as the “sick chicken case.”› The Supreme Court said that the Constitution did not allow the

Congress to lend its powers to the executive; the NIRA was unconstitutional.

› This suggested that the Supreme Court would make similar decisions in regards to the New Deal.

•Supreme Court was striking down New Supreme Court was striking down New Deal legislation.Deal legislation.

•Roosevelt proposed a bill to allow the president to name a new federal judge

for each who did not retire by age 70 and 1/2.

•6 justices over age limit. 6 justices over age limit.

•Would have increased the number of justices from 9 to 15, giving FDR a

majority of his own appointees on the court.

•The court-packing bill was not passed by The court-packing bill was not passed by CongressCongress..

•Supreme Court was striking down New Supreme Court was striking down New Deal legislation.Deal legislation.

•Roosevelt proposed a bill to allow the president to name a new federal judge

for each who did not retire by age 70 and 1/2.

•6 justices over age limit. 6 justices over age limit.

•Would have increased the number of justices from 9 to 15, giving FDR a

majority of his own appointees on the court.

•The court-packing bill was not passed by The court-packing bill was not passed by CongressCongress..

100 days

Criticisms of New DealCriticisms of New DealUS government and President too powerfulViolated laissez faireSupreme Court declared NIRA and AAA unconstitutionalCritics:

Father Charles CoughlinDr. Francis TownsendAl SmithHuey Long

Deficit spending: Govt. spends $$$ to stimulate the economy and help people even if it means US Govt. goes into debt.Welfare state----Created a population of Americans who relied on the US Govt. to live

•Believed an international conspiracy of bankersinternational conspiracy of bankers existed and FDR was influenced by them.

•He called for the nationalization of banks and utilitiesnationalization of banks and utilities.(US Govt. controls banks, Socialism)Socialism)

•Fascist; Anti-Semitic overtones.

•A Roman CatholicCatholic priest.

•Radio Priest in Detroit Michigan.

•Criticized FDR in weekly radio program.

•10 million listeners.

•Criticized FDR’s farm program

•Spending all $200 would also be required to boost economic demand.

•Townsend Clubs created all over the nation.

•Influenced FDR’s creation of Social SecuritySocial Security

•He wanted the government to help older citizens.

•Retired California Physician.

•Suggested a $200 per month pension$200 per month pension for people over 60.

(This is socialismThis is socialism)

•Open jobs for the younger unemployed.

Successes of New DealSuccesses of New Deal

100 days

AMERICANS IN 1939 WHO WANTED THE NEW NEW DEALDEAL TO CONTINUE WAS 55%55%….. ….. 37%37% REGARDED IT AS A BAD INFLUENCE AND

WANTED A NEW PRESIDENT…………...

Stimulated the economy

Put people back to work….

Improved morale and self-confidence of the people

US Govt’s. role changes and became directly involved in helping people

WWII ended the Great Depression not FDR’s New Deal

a 3rd revolution in American culture and politics- more gov't involvement but w/in the context of traditional U.S. democracy (not socialist…)

New Deal helped in stimulating the U.S. economy, but only WWII would solve any lingering problems unemployed found jobs in munitions factories and the military as the U.S. became the ARSENAL OF DEMOCRACY

New Deal saw expansion of U.S. gov't in :1) economy. - constant government intervention/deficit spending 2) social reform - welfare state - after this pt the U.S. government was expected to play a role in any economic crisis

Did the New Deal transform or reform American society?