Download - FDR & The New Deal
FDR & The New Deal
United States History
Franklin D. Roosevelt Political Career
o NY Senate, Assistant Sec of Navy under Wilson, NY Gov.
Personal Lifeo Battle with polioo Wife Eleanor active in politics
What America liked about him:o Energy and Optimismo Creation of Relief Aid to Unemployed in New Yorko Confidence he could improve economy
The New Deal Roosevelt’s policies for ending the Great
Depression
At Roosevelt’s Inaugurationo Most of the nations’ banks on holiday (closing
before bank runs would close them down)o 25% of Americans unemployed
“The only thing we have to fear is fear itself…This nation asks for action, and action now”
New Deal Beginnings The Hundred Days
o March 15, 1933 to June 16, 1933o Congress passed 15 majors acts to resolve
economic woes
Roosevelt favored government intervention in economy
Priority #1: Banking Systemo Emergency Banking Relief Acto Securities and Exchange Commission (SEC)o Federal Deposit Insurance Corporation (FDIC)
New Deal (continued) FDR creates programs to help with debt
o Why? To give people the ability to spend in the economy and not worry as much about debts on mortgages, farms, etc.
o Home Owners’ Loan Corporationo Farm Credit Administration
Government Control in the Economy & Environmento Agricultural Adjustment Acto National Industrial Recovery Act &
The National Recovery Administrationo Tennessee Valley Authority
New Deal (continued) FDR believed consumption was key to
economic growth and unemployed needed a means to become consumerso Thus, he created programs to get people into
the workforce
Civilian Conservation Corps Federal Emergency Relief Administration Public Works Administration Civil Works Administration
Success of the New Deal
Did not restore prosperity in America, but did improve confidence in banks, saved homes/farms, helped combat unemployment
Americans embraced FDR’s willingness to experiment and change, which helped restore Americans’ faith in their government and nation overall
Critiquing the New Deal
Government Programs Cost $$$o How to pay? Deficit Spending
Criticism about hurting business and states’ rightso Creation of American Liberty League to teach necessity of
respect for rights of person and property
Challenges to the New Dealo Huey Long: Louisiana governor championing downtrodden
(Share Our Wealth)o Father Coughlin: Nationalize banking and inflate the currency
(National Union for Social Justice)o Francis Townsend: Pensions with stipulations on spending to
stimulate economic growth and get more people in the workforce
Second New Deal Works Progress Administration
Wagner Act and National Labor Relations Boardo Binding Arbitration: Neutral
Party hears arguments and decides on the issues
o CIO (Committee for Industrial Organization) formed in 1935
o Sit-down strike: Stop working inside plant to prevent replacement workers from taking jobs
Social Security Act
Political Change under FDR
African Americans join Democratic Partyo Eleanor Roosevelt & Policies of FDR help fuel
switcho African Americans in administrative positions
Women join New Deal Coalitiono Frances Perkins: first woman in Cabinet post
(Secretary of Labor)o Appointed many other women to federal
posts
Role of Supreme Courto Court rulings striking down parts of New Deal
piece by pieceo “Court-packing plan”
Recession of 1937 Recovery on track with output approaching
1929 levels, unemployment improving…belief worst is overo FDR decides it is time to balance budget and
cuts some programs like the PWA and WPAo By end of 1937, 2 million people out of work
What to do now?o Morgenthau: Balance budget and cut spendingo Keynesianism: Spend heavily in a recession to
jumpstart economy
Last Hurrah of the New Deal
National Housing Act
Farm Security Administration
Fair Labor Standards Act
By 1939, New Deal had come to an end with Congressional takeover by opponents of New Deal
Recapping the New Deal
Limited successo Unemployment still
higho Recovery not
complete
Sense of Securityo Bankso Businesso Individuals
Greater Role in Economyo Mediation between
groups (broker state)
o “Safety Net” against economic disaster
Criticso Dependency on
Governmento Government too
powerful