FDR: The ManFDR: The Man Born in NY to family with $$$$$Born in NY to family with $$$$$ 55thth cousin of Theodore Roosevelt cousin of Theodore Roosevelt Harvard graduateHarvard graduate Served in NY legislature as State Senator, 1910Served in NY legislature as State Senator, 1910 Assistant Secretary of the Navy during WWIAssistant Secretary of the Navy during WWI Ran for VP with Cox in 1920, lostRan for VP with Cox in 1920, lost Stricken with polio in 1921; unable to walk more than a Stricken with polio in 1921; unable to walk more than a

few steps. Constantly wore braces (new FDR memorial)few steps. Constantly wore braces (new FDR memorial) 2-term Governor of New York, 1928-19322-term Governor of New York, 1928-1932 Set up a “brain trust” of top academicians, appointed Set up a “brain trust” of top academicians, appointed

first female cabinet secretary (Frances Perkins, Labor). first female cabinet secretary (Frances Perkins, Labor). Also appointed Mary McLeod Bethune Director of the Also appointed Mary McLeod Bethune Director of the Division of Negro AffairsDivision of Negro Affairs

Another ex-philanderer in the White House (w/Lucy Another ex-philanderer in the White House (w/Lucy Mercer, wife Eleanor’s Secretary)Mercer, wife Eleanor’s Secretary)

The First New DealThe First New Deal FDR assumes office March 4, 1933 (20FDR assumes office March 4, 1933 (20thth

amendment not until 1933)amendment not until 1933) ““The only thing we have to fear is fear itself.”The only thing we have to fear is fear itself.” March 5: FDR proclaims 4 day “bank holiday.” March 5: FDR proclaims 4 day “bank holiday.”

All transactions to cease, and a ban on the All transactions to cease, and a ban on the export of gold, silver, and currency. Gold export of gold, silver, and currency. Gold ownership permitted again in 1975.ownership permitted again in 1975.

March 9: FDR calls special session of Congress. March 9: FDR calls special session of Congress. Hundred Days SessionHundred Days Session ends June 16. ends June 16.

March 12: First “fireside chat”March 12: First “fireside chat”

Fireside Chats Soothe the Fireside Chats Soothe the NationNation

#1—March 12, 1933—Roosevelt goes on #1—March 12, 1933—Roosevelt goes on the radio and explains his banking policy the radio and explains his banking policy Very popular, charming and convincingVery popular, charming and convincing

No chance for the other side to respond!!No chance for the other side to respond!! Fiscal Policy—how the government’s Fiscal Policy—how the government’s

expenditures affect the economyexpenditures affect the economy Monetary Policy—manipulation of the Monetary Policy—manipulation of the

money supply by the governmentmoney supply by the government About 30 were made--FDR also spoke on About 30 were made--FDR also spoke on

other political issues, as exemplified by other political issues, as exemplified by this speech on foreign policy.this speech on foreign policy.

Important 1Important 1stst New Deal Acts: New Deal Acts: BankingBanking

Roosevelt also persuades Congress to pass the Emergency Roosevelt also persuades Congress to pass the Emergency Banking Relief Act—aka the Glass-Steagall Banking ActBanking Relief Act—aka the Glass-Steagall Banking Act

Banned the exportation of gold…promotes saving, not Banned the exportation of gold…promotes saving, not spendingspending

Takes the United States off the Gold Standard, price of Takes the United States off the Gold Standard, price of gold fixed at $35/oz. Paper money can no longer be gold fixed at $35/oz. Paper money can no longer be redeemed for gold. Gold ownership is severely curtailed redeemed for gold. Gold ownership is severely curtailed (lasts until 1975).(lasts until 1975).

Eliminated weak banks merely by identifying themEliminated weak banks merely by identifying them Federal Reserve System was authorized to loan money to Federal Reserve System was authorized to loan money to

well-managed banks in danger of foldingwell-managed banks in danger of folding Established the Federal Deposit Insurance Corporation Established the Federal Deposit Insurance Corporation

(FDIC) to guarantee individual savings up to $5,000 (now (FDIC) to guarantee individual savings up to $5,000 (now updated to $100,000) updated to $100,000)

President given broad powers over all banking President given broad powers over all banking transactions, foreign exchange. 1000 banks reopen; public transactions, foreign exchange. 1000 banks reopen; public confidence increasesconfidence increases

More Important 1More Important 1stst New Deal New Deal ActsActs

Federal Emergency Relief Agency (FERA)—distributed Federal Emergency Relief Agency (FERA)—distributed $500 Million to states so they could save or revive their $500 Million to states so they could save or revive their programs for assisting the poor. Headed by Harry programs for assisting the poor. Headed by Harry Hopkins; favored giving government jobs rather than Hopkins; favored giving government jobs rather than handouts, but understood the severity of the situationhandouts, but understood the severity of the situation

Federal Securities Act of 1933—Required corporations Federal Securities Act of 1933—Required corporations to provide complete information and disclosure on all to provide complete information and disclosure on all transactions (stock offerings). In 1934—Securities and transactions (stock offerings). In 1934—Securities and Exchange Commission started…..to prevent “insider Exchange Commission started…..to prevent “insider trading”trading”

Farm Credit Administration—refinanced mortgages for Farm Credit Administration—refinanced mortgages for farmers who had missed paymentsfarmers who had missed payments

Volstead Act amended: Beer and Wine Act makes Volstead Act amended: Beer and Wine Act makes beverages with 3.2% or less alcohol LEGAL. High tax beverages with 3.2% or less alcohol LEGAL. High tax placed on beverages.placed on beverages.

21st Amendment ratified in December 1933—Most 21st Amendment ratified in December 1933—Most states quickly legalize more potent alcoholstates quickly legalize more potent alcohol

Alphabet Soup Agencies of the 1Alphabet Soup Agencies of the 1stst New New DealDeal

CCC—Civilian Conservation Corps—put CCC—Civilian Conservation Corps—put young men 18-25 to work building roads, young men 18-25 to work building roads, developing parks, planting trees, and developing parks, planting trees, and helping in erosion and flood control helping in erosion and flood control projects. Recipients received $30 a projects. Recipients received $30 a month, with a portion going to month, with a portion going to dependentsdependents

AAA—Agricultural Adjustment Act—sought AAA—Agricultural Adjustment Act—sought to raise crop prices for farmers by limited to raise crop prices for farmers by limited production and by paying farmers not to production and by paying farmers not to farm. Established parity prices. No direct farm. Established parity prices. No direct “dust bowl” assistance during 1934-35“dust bowl” assistance during 1934-35

More Alphabet SoupMore Alphabet Soup

HOLC--Home Owners” Loan HOLC--Home Owners” Loan Corporation—provided government Corporation—provided government loans to homeowners in danger of loans to homeowners in danger of losing their homes due to foreclosure. losing their homes due to foreclosure. Later became FHA—Federal Housing Later became FHA—Federal Housing Administration (still around today)Administration (still around today)

Indian Reorganization Act of 1934—Indian Reorganization Act of 1934—ended the sale of tribal lands under ended the sale of tribal lands under the Dawes Act of 1887. Restored the Dawes Act of 1887. Restored some land to tribessome land to tribes

TVA—Tennessee Valley TVA—Tennessee Valley AuthorityAuthority

Brainchild of George Norris, a Republican Brainchild of George Norris, a Republican ProgressiveProgressive

3 person board of directors established plan for TN 3 person board of directors established plan for TN River Valley Region. 3 Million people live there, River Valley Region. 3 Million people live there, mostly without electricity. Yearly flooding.mostly without electricity. Yearly flooding.

Renovated old dams and built 20 new dams in the Renovated old dams and built 20 new dams in the Tennessee River Valley Tennessee River Valley

Advantages: 1) Put people to work 2) Raised Advantages: 1) Put people to work 2) Raised economic and social standards 3) flood control 4) economic and social standards 3) flood control 4) Created navigable waterway 5) Controlled malaria Created navigable waterway 5) Controlled malaria 6) Recreational lakes/wildlife refuges 7) Irrigation 6) Recreational lakes/wildlife refuges 7) Irrigation 8) ELECTRICITY8) ELECTRICITY

Criticized as “creeping socialism” because it gave Criticized as “creeping socialism” because it gave the government power over utilitiesthe government power over utilities

National Industrial Recovery Act (June National Industrial Recovery Act (June 1933)1933)

NRA had 2 parts: PWA and NRANRA had 2 parts: PWA and NRA PWA-Public Works Administration—provided money to states to PWA-Public Works Administration—provided money to states to

create jobs by building schools and community buildings…failedcreate jobs by building schools and community buildings…failed PWA led to CWA—Civil Works Administration November 1933..4 PWA led to CWA—Civil Works Administration November 1933..4

million jobs during 1933-34 winter. Built 40,000 schools and paid million jobs during 1933-34 winter. Built 40,000 schools and paid 50,000 teachers, also built 500,000 miles of roads50,000 teachers, also built 500,000 miles of roads

NIRA also set up the National Recovery Administration (NRA), NIRA also set up the National Recovery Administration (NRA), which set prices on many products to ensure fair competition. which set prices on many products to ensure fair competition. Headed by General Hugh Johnson.Headed by General Hugh Johnson.

Banned child labor (Adults need jobs)Banned child labor (Adults need jobs) Competing businesses met with representatives of workers and Competing businesses met with representatives of workers and

consumers to draft consumers to draft codes of fair competitioncodes of fair competition Set minimum standards of quality for the production of goods and Set minimum standards of quality for the production of goods and

services (even regulated spurious industries)services (even regulated spurious industries) Businesses bound to each industry’s code of standards by LAWBusinesses bound to each industry’s code of standards by LAW Symbol of industries: a blue eagle with the words “We Do Our Symbol of industries: a blue eagle with the words “We Do Our

Part.”Part.” Unfair comparison to Mussolini and HitlerUnfair comparison to Mussolini and Hitler

CRITICS OF THE NEW DEALCRITICS OF THE NEW DEAL

Many critics attacked FDR’s plans as SocialistMany critics attacked FDR’s plans as Socialist #1 “Critic”: The Supreme Court strikes down AAA and #1 “Critic”: The Supreme Court strikes down AAA and

NRA part of NIRA as unconstitutionalNRA part of NIRA as unconstitutional How NIRA got tossed: How NIRA got tossed: Schechter Brothers found some sanitary codes imposed Schechter Brothers found some sanitary codes imposed

by their industry incompatible with requirements for by their industry incompatible with requirements for Jewish ritualJewish ritual

They also claim that the NRA codes were unjustifiable They also claim that the NRA codes were unjustifiable federal interference in intrastate conferencefederal interference in intrastate conference

Still, fuss was minimal—appeal of NIRA had fadedStill, fuss was minimal—appeal of NIRA had faded Congress takes action to deal with these SC decisionsCongress takes action to deal with these SC decisions 1935—Fair Labor Standards Act (Wagner Act): 1935—Fair Labor Standards Act (Wagner Act):

Employers must recognize and negotiate with labor Employers must recognize and negotiate with labor unions that claimed the support of a majority of a unions that claimed the support of a majority of a company’s employees. (Section 7a of the NRA Codes)company’s employees. (Section 7a of the NRA Codes)

1938—2nd AAA passed. Slightly tempered in form.1938—2nd AAA passed. Slightly tempered in form.

New Deal Critics: PeopleNew Deal Critics: People Father Charles Coughlin—the “Radio Priest” Canadian-born Roman Catholic Father Charles Coughlin—the “Radio Priest” Canadian-born Roman Catholic

priest. Originally favored New Deal, called it “Christ’s deal”priest. Originally favored New Deal, called it “Christ’s deal” A year later, becomes convinced New Deal was wrongA year later, becomes convinced New Deal was wrong Had 10,000,000 listeners at one pointHad 10,000,000 listeners at one point Downfall: praised Mussolini, Anti-Semitic Views, censured by the Vatican, Downfall: praised Mussolini, Anti-Semitic Views, censured by the Vatican,

Catholic Church in the U.S.Catholic Church in the U.S.

Dr. Francis E. Townsend--Physician and Health Officer in Long Beach, CADr. Francis E. Townsend--Physician and Health Officer in Long Beach, CA Devised a pension plan: Seniors would stop work at age 60, receive $200 a Devised a pension plan: Seniors would stop work at age 60, receive $200 a

week, and must spend all that money within a monthweek, and must spend all that money within a month

Huey Long, “The Kingfish”--Senator from LouisianaHuey Long, “The Kingfish”--Senator from Louisiana As Governor, had built roads, hospitals, and provided lunches for childrenAs Governor, had built roads, hospitals, and provided lunches for children Devised “Share Our Wealth” plan: Confiscate all income over $1 Devised “Share Our Wealth” plan: Confiscate all income over $1

million/year million/year Assassinated by a lone gunman (shot in abdomen by Dr. Carl Weiss in Assassinated by a lone gunman (shot in abdomen by Dr. Carl Weiss in

Baton Rouge Sept. 9, 1935, and died Sept. 10 after Dr. Arthur Vidrine failed Baton Rouge Sept. 9, 1935, and died Sept. 10 after Dr. Arthur Vidrine failed to notice kidney wound that caused internal bleeding )to notice kidney wound that caused internal bleeding )

coughlin2.asf

The Second New Deal 1935-The Second New Deal 1935-3737

Democrats win 1934 midterm Democrats win 1934 midterm elections—more impetus for radical elections—more impetus for radical reformsreforms

Social Security Act, 1935: “Old-Age Social Security Act, 1935: “Old-Age and Survivors’ Insurance.” and Survivors’ Insurance.”

National Labor Relations Act (Wagner National Labor Relations Act (Wagner Act), 1935: Labor’s “Magna Carta”Act), 1935: Labor’s “Magna Carta”

WPA, REA, NYAWPA, REA, NYA

Social SecuritySocial Security

Placates Townsend’s supportersPlacates Townsend’s supporters Old-age insurance for retirees 65 and Old-age insurance for retirees 65 and

older…older…supplementarysupplementary income income Unemployment compensationUnemployment compensation Survivor’s InsuranceSurvivor’s Insurance AFDC: Aid to Families with AFDC: Aid to Families with

Dependent ChildrenDependent Children Funded by a payroll tax—mandatory Funded by a payroll tax—mandatory

participationparticipation

Labor’s “Magna Carta” : Labor’s “Magna Carta” : The Wagner Act of 1935The Wagner Act of 1935

Gave employees the right to collective Gave employees the right to collective bargaining, employers had to bargain in good bargaining, employers had to bargain in good faith.faith.

Set up National Labor Relations Board to enforce Set up National Labor Relations Board to enforce actact

Legalized “closed shop”: must belong to union to Legalized “closed shop”: must belong to union to be hiredbe hired

Outlawed spying on union activities and Outlawed spying on union activities and blacklisting—fines could be imposedblacklisting—fines could be imposed

AKA “National Labor Relations Act”AKA “National Labor Relations Act” A later 1938 law banned child labor, established A later 1938 law banned child labor, established

25¢ minimum wage to compliment this law25¢ minimum wage to compliment this law

Second New Deal Cont’dSecond New Deal Cont’d WPA---Works Progress AdministrationWPA---Works Progress Administration Headed by Harry Hopkins, former chief of FERAHeaded by Harry Hopkins, former chief of FERA WPA set out to create as many jobs as possibleWPA set out to create as many jobs as possible Employed 8 million people 1935-43Employed 8 million people 1935-43 Mostly unskilled workers, build roads, airports, Mostly unskilled workers, build roads, airports, Employed teachers, writers, artists, actors, and Employed teachers, writers, artists, actors, and

musicians to create music, art, and scholarly musicians to create music, art, and scholarly studiesstudies

REA- Rural Electrification Administration provided REA- Rural Electrification Administration provided electricity to rural areaselectricity to rural areas

NYA---National Youth AdministrationNYA---National Youth Administration Provided aid and employment to young Provided aid and employment to young

Americans, essentially a work-study programAmericans, essentially a work-study program

The Election of 1936The Election of 1936 Democrats nominate Roosevelt. Roosevelt asks crowds, Democrats nominate Roosevelt. Roosevelt asks crowds,

“Are you better off than you were 4 yrs. ago?”“Are you better off than you were 4 yrs. ago?” Overwhelmingly defeats Kansas Governor Alfred Overwhelmingly defeats Kansas Governor Alfred

Landon (Landon gets the last laugh despite losing his Landon (Landon gets the last laugh despite losing his home state—lives to be 100)home state—lives to be 100)

During campaign, Roosevelt expounded much rhetoric: During campaign, Roosevelt expounded much rhetoric: Anti-big business. Actions did not jibe with his speech. Anti-big business. Actions did not jibe with his speech. Wealth Tax did not take as much money from wealthy Wealth Tax did not take as much money from wealthy incomes as advertised.incomes as advertised.

Utilities that should have been broken up were not.Utilities that should have been broken up were not. Farm workers were not covered by Social Security or Farm workers were not covered by Social Security or

NLRA. Also excluded African American sharecroppersNLRA. Also excluded African American sharecroppers Democrats had support from masses and support of Democrats had support from masses and support of

corporations to finance campaigns—big conflict in years corporations to finance campaigns—big conflict in years to cometo come

FDR’s Response: “Court-Packing Scheme” FDR’s Response: “Court-Packing Scheme” (1937)(1937)

Roosevelt thinks he has a MANDATE. 61% vote for him in ‘36.Roosevelt thinks he has a MANDATE. 61% vote for him in ‘36. Supreme Court has tossed NIRA and AAA. Are TVA, CCC, or Supreme Court has tossed NIRA and AAA. Are TVA, CCC, or

Social Security next?? Roosevelt concerned.Social Security next?? Roosevelt concerned. All judges white men over 60. Conservative.All judges white men over 60. Conservative. Judiciary Act of 1789 says Congress may change # of justices Judiciary Act of 1789 says Congress may change # of justices

at any time.at any time. Roosevelt advances a plan. Mandatory retirement for any SC Roosevelt advances a plan. Mandatory retirement for any SC

Justice over 70. For those who refuse to retire, Roosevelt Justice over 70. For those who refuse to retire, Roosevelt should be able to appoint a new Justice. Also assign more should be able to appoint a new Justice. Also assign more judges to the federal judiciary and expedite appeals process.judges to the federal judiciary and expedite appeals process.

People horrified—Roosevelt is trying to undermine the People horrified—Roosevelt is trying to undermine the Constitution.Constitution.

Silly move…for 2 reasonsSilly move…for 2 reasons Court began to rule in favor of New Deal programs “Switch in Court began to rule in favor of New Deal programs “Switch in

time that saved 9.”time that saved 9.” In the next four years, seven justices retire and President is In the next four years, seven justices retire and President is

able to appoint justices more to his likingable to appoint justices more to his liking

Minorities and the New DealMinorities and the New Deal African Americans:African Americans: President Roosevelt fails to support Civil Rights, but sets up the President Roosevelt fails to support Civil Rights, but sets up the

Office of Minority Affairs to ensure that NYA hires Black Americans. Office of Minority Affairs to ensure that NYA hires Black Americans. Headed by Mary McLeod Bethune.Headed by Mary McLeod Bethune.

Bethune organizes a “Black Cabinet” to advise President Roosevelt Bethune organizes a “Black Cabinet” to advise President Roosevelt on issues affecting African-Americans. Voting patterns shift—ever on issues affecting African-Americans. Voting patterns shift—ever since, African-Americans vote predominantly Democraticsince, African-Americans vote predominantly Democratic

Mexican Americans: Over 500,000 deported during the 1930’s. Mexican Americans: Over 500,000 deported during the 1930’s. Americans need jobs.Americans need jobs.

Native Americans: Native Americans: In 1924, All Native Americans were finally guaranteed full citizenshipIn 1924, All Native Americans were finally guaranteed full citizenship 1933—Roosevelt appoints John Collier as Commissioner of Indian 1933—Roosevelt appoints John Collier as Commissioner of Indian

AffairsAffairs Collier helps create the Indian Reorganization Act of 1934Collier helps create the Indian Reorganization Act of 1934 Prohibits the government from taking over unclaimed reservation Prohibits the government from taking over unclaimed reservation

lands and selling them to people other than Native Americans. lands and selling them to people other than Native Americans. Result: more Native American lands are restored to tribal ownership.Result: more Native American lands are restored to tribal ownership.

Some Native Americans like the act, others feel it will impede Some Native Americans like the act, others feel it will impede progressprogress

Union problems again!!Union problems again!!

1933-1941: Union membership soars1933-1941: Union membership soars AFL—American Federation of LaborAFL—American Federation of Labor Membership restricted to craft unions: Carpenters, plumbers, Membership restricted to craft unions: Carpenters, plumbers,

electricianselectricians Opposed industrywide unionsOpposed industrywide unions Key Labor Unions, with strong leaders:Key Labor Unions, with strong leaders: John L. Lewis (United Mine Workers) and Walter Reuther (United John L. Lewis (United Mine Workers) and Walter Reuther (United

Auto Workers) decide to form Congress of Industrial Organizations, Auto Workers) decide to form Congress of Industrial Organizations, break from AFL. U.S. Steel later agrees to a contract with CIO.break from AFL. U.S. Steel later agrees to a contract with CIO.

Most famous strikes of the 1930s:Most famous strikes of the 1930s: Flint, MI 1936 @ the Fisher Body (GM ) plantFlint, MI 1936 @ the Fisher Body (GM ) plant Sit down strike, police called in to fire tear gas on strikers. Goal: Sit down strike, police called in to fire tear gas on strikers. Goal:

Obtain union recognition (GM did a month later)Obtain union recognition (GM did a month later) Memorial Day Massacre—Chicago @ the Republican Steel Plant: Memorial Day Massacre—Chicago @ the Republican Steel Plant:

State police turn on steelworkers outside the plantState police turn on steelworkers outside the plant

1930s Culture1930s Culture Movies become HUGE—2 hour escapeMovies become HUGE—2 hour escape Gone With the Wind (1939) (Was a best-seller book in Gone With the Wind (1939) (Was a best-seller book in

1936)1936) Clark Gable, Vivian Leigh, Olivia de Havilland Clark Gable, Vivian Leigh, Olivia de Havilland The Wizard of Oz (1939) Judy GarlandThe Wizard of Oz (1939) Judy Garland Mr. Smith Goes to Washington (1939) Jimmy StewartMr. Smith Goes to Washington (1939) Jimmy Stewart

Radio also grows:Radio also grows: Orson Welles: “War of the Worlds” 1938Orson Welles: “War of the Worlds” 1938 Bob Hope, Jack Benny, George BurnsBob Hope, Jack Benny, George Burns Hindenburg broadcast live from Lakehurst, NJ on May 6, Hindenburg broadcast live from Lakehurst, NJ on May 6,

19371937 Writers/Painters: Many funded by the GovernmentWriters/Painters: Many funded by the Government The Grapes of Wrath (1939)..became a movie in 1940The Grapes of Wrath (1939)..became a movie in 1940 Best-known painting of the 1930s…Grant Wood’s Best-known painting of the 1930s…Grant Wood’s

American GothicAmerican Gothic

Results of the New DealResults of the New Deal Social Security Act still in effect todaySocial Security Act still in effect today Ditto TVA, FDIC, SECDitto TVA, FDIC, SEC People felt closer to government—”Fireside Chats”People felt closer to government—”Fireside Chats” Introduction to Deficit Spending…Problematic even Introduction to Deficit Spending…Problematic even

today. (Didn’t follow campaign promises)today. (Didn’t follow campaign promises) National Labor Relations Board continues to functionNational Labor Relations Board continues to function New Deal largely failed as a fix to the depressionNew Deal largely failed as a fix to the depression 1937: Another mini-depression (1933 to 1937 had been 1937: Another mini-depression (1933 to 1937 had been

better)better) Rural areas electrifiedRural areas electrified Infrastructure improved considerablyInfrastructure improved considerably Showed different approaches could work (Hopkins ran Showed different approaches could work (Hopkins ran

FERA differently from the way Ickes ran the CWA )FERA differently from the way Ickes ran the CWA ) Much bureaucratic meddling and regulation. Much bureaucratic meddling and regulation.