FDR’s NEW DEAL

A Change in Leadership • 1932 presidential election:

Americans were ready for a change

• Republicans re-nominated the “Do Nothing” President:

Herbert Hoover

• Socialists nominated a radical:

Norman Thomas

• Democrats nominated a Man of Action:

Franklin Delano Roosevelt

FDR’s Overwhelming Victory

Hoover’s low approval rating

Linked with Thomas’ radical socialism

Led to Roosevelt’s landslide election

Status of the Nation On Inauguration Day

Virtually Leaderless with a Collapsed Economy

FDR Dedicates Himself to America

• He Promised:

Vigorous Leadership

Bold Political Action

Disciplined Decisions

• He Expressed:

Faith in Democracy

Trust in the American People

Belief in Divine Guidance

FDR Reassures the American People

“This great Nation will endure as it has endured, will revive

and will prosper.

So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself —

nameless, unreasoning, unjustified terror which

paralyzes needed efforts to convert retreat into advance.”

FDR’s New Experiment • His Brain Trust:

College Professors

Economists

Skilled Specialists

Legal Experts

• His Cabinet:

Conservatives & Liberals

Democrats & Republicans

Inflationist & Anti-Inflationist

FDR’s Overall Objectives

• Relief: Jobs for the Unemployed

Prevent Farm Foreclosures

• Recovery:

Restore the Economy

Revive Industry

• Ultimate Goal:

Save Capitalism

Launching the New Deal

The First Hundred Days

• FDR Declared a Bank Holiday

Congress passed more than fifteen key pieces of legislation

expanding the governments role in the nation’s economy

• March – June 1933

• Emergency Relief Act:

Bank Inspections by Treasury Department

• Glass-Steagall Act:

Established the FDIC to insure accounts

Launching the New Deal The First Hundred Days

• Federal Securities Act:

Required accurate and truthful disclosure of all stock information to buyers

• National Recovery Act:

Designed to suspend Anti-Trust Laws and stimulate the economy

• Gold Reserve Act:

Requiring all gold to be under the control of the Treasury Department

Launching the New Deal The First Hundred Days

• Agricultural Adjustment Act:

Provided subsidies to farmers who reduced crop production

Designed to help raise crop prices & increase farmer’s profits

• Tennessee Valley Authority:

Created a Federally owned corporation

Designed to provide jobs, flood control, & electricity

Launching the New Deal

Forming the Alphabet Agencies • Civilian Conservation Corps:

Jobs for young single men

Built Rural Roads, National Parks, and Planted Trees

• Public Works Admin:

Jobs for unemployed men

Completed large public works projects

Built Schools, Airports, Dams, and Hospitals

Employed 3 million and Planted 3 Billion Trees

Forming the Alphabet Agencies • Works Projects Admin:

Urban Public Works

Employed unemployed (unskilled male laborers)

Built Courthouses, Post Offices, Public Buildings

• Civil Works Admin:

Temporary employment for skilled rural laborers

Built roads, schools, airports, playgrounds, sewer systems in poor rural areas

Forming the Alphabet Agencies • Federal Housing Administration:

Improved eligibility for families to afford a home loan

Regulated mortgage terms and Interest rates for homes

• Federal Emergency Relief Agency:

Provided jobs for over 20 million people

Initiated work and adult education programs

Forming the Alphabet Agencies • National Youth Administration:

Created education and jobs for America’s young adults

Got troubled youth off the streets and into schools and jobs

• Social Security Act: Designed to provide

Old Age Pension

Unemployment Compensation

Welfare aid for families with dependent children or disabilities

THE NEW DEAL

UNDER ATTACK

The New Deal Under Attack • The U.S. Supreme Court Reacted:

Declaring portions of the 1933 National Industrial Recovery Act Unconstitutional in 1935

Declaring the 1933 Agricultural Adjustment Act Unconstitutional in 1936

• Roosevelt’s Counter-Reaction:

1937 Judicial Procedures Reform Bill (Court Packing Plan) was introduced in Congress

The bill was held up in the Senate Judiciary Review Committee for 165 days and failed to pass

The New Deal Under Attack • Conservative Opponents formed the

American Liberty League:

New Deal went too far!

It was Socialism (killing individualism)

It increased the National Debt ($35 Billion)

It wasted money on relief

It encouraged idleness

It violated States’ Rights

It was Unconstitutional

It increased the power of the President

The New Deal Under Attack • Radical Opponents Criticized FDR publically and on radio:

Popular Demagogues (rabble rousers) stated it didn’t do enough for America’s working class people

Senator Huey Long promoted his “Share the Wealth” speeches:

New Deal Relief programs were mere crumbs off the table

The government needed to guarantee every hard working American at least $5,000 a year

Congress needed to make the wealthy pay of the cost of recovery

The New Deal Under Attack • Radical Opponents Criticized FDR publically and on radio:

“You are giving a little man a biscuit to eat, and you put a barrel of flour more taxes on top of his head to carry.”

“They've got a set of Republican waiters on one side and a set of Democratic waiters on the other side, but no matter which set of waiters brings you the dish, the legislative grub is all prepared in the same Wall Street Kitchen.”

“I’m for the poor man — all poor men, black and white, they all gotta have a chance. They gotta have a home, a job, and a decent education for their children. 'Every man a king' — that's my slogan.”

“A mob is coming here in six months to hang the other ninety-five of you damned scoundrels, and I'm undecided whether to stick here with you or go out and lead them.” (Speech to his fellow Senators)

The New Deal Under Attack • Radical Opponents Criticized FDR publically and on radio:

Father Charles E. Coughlin promoted his “Sixteen Principles for Social Justice:”

Eliminate the International Banking Conspiracy (led by the Jews)

Advocated Nationalization of Banking and Currency

Preservation of all important Public Resources

Demanded a “Living Wage” for all Americans

The New Deal Under Attack

“I need not recall for you that both the laboring and agricultural classes of America are forced to work for less than a living wage, while the owners of industry boastfully proclaim that their profits are increasing.”

• Radical Opponents Criticized FDR publically and on radio:

“As I look back upon these (past few) years . . . . . . . . . I honestly believe that in all history such destruction of ideals and such miscarriage of justice were never chronicled save during the years which witnessed the assassination of Christ.”

“On this earth you must belong to the church militant or get the hell out of it. That's the right word. You're either with me or against me. There is no middle ground in this battle between Christ (America) and the anti-Christ (Communism). If you step out of (the battle), you're worse than those boys who deserted the government. You're deserters, rotten deserters.”

The New Deal Under Attack • Radical Opponents Criticized FDR publically and on radio:

Dr. Francis E. Townsend promoted the ideas of an Old Age Pension Plan:

Government sponsored program to pay people (60+) a pension of

$200 per month

The Program to be financed by a 2% National Sales Tax

Pensioners would be required to spend the money within 30 days to help stimulate the economy

The New Deal Under Attack • Radical Opponents Criticized FDR publically and on radio:

“Of late years it has become an accepted fact that because of man's inventiveness less and less productive effort is going to be required to supply the needs of the race. This being the case, it is just as necessary to make some disposal of our surplus workers, as it is to dispose of our surplus wheat or corn or cotton. But we cannot kill off the surplus workers as we are doing with our hogs; nor sell them to the Chinese as we do our cotton. We must retire them from business activities and eliminate them from the field of competitive effort.”

“It is estimated that the population of the age of 60 and above in the United States is somewhere between nine and twelve million. I suggest that the national government retire all who reach that age on a monthly pension of $200 a month . . .”

The New Deal Under Attack • FDR defends the New Deal Programs publically and on radio:

Franklin D. Roosevelt’s Fireside Chats:

Took advantage of the new “Golden

Age of Radio.”

A series of 30 radio broadcasts on

important topics between 1933-1944

Helped to eliminate misinterpretation of the President’s message by the

Press.

30-45 minutes of positive and straight forward honesty that the average

American could understand.

THE LEGACY OF THE NEW DEAL

The Legacy of the New Deal • The Presidential Election of 1936:

Showed that the American public rejected radical solutions to the Great Depression

Created a Democratic Coalition of both old & new political viewpoints (Including small Midwest farmers, urban political bosses, ethnic blue collar workers, intellectuals, Jews, and

African Americans)

The Democratic Party became the Majority Party, while Republicans tried to rely on their traditional base of political supporters (Businessmen, Farmers, Conservatives)

The Legacy of the New Deal • The Presidential Election of 1936:

Popular and Electoral Votes

FDR (Dem) = 60.3% and 523

Landon (Rep) = 36.56% and 8

The Legacy of the New Deal • Physical Rehabilitation of the Country:

Civilian Conservation Corps:

125,000 miles of roads 46,854 bridges built 89,000 miles of telephone wire 3,000 forest fire lookout towers Over 8 billion trees planted Thousands of hiking trails

Public Works Administration:

11,428 road building projects 29,000 public housing units built 7,488 public schools built 34,000 other projects including

airports, hospitals, bridges, and hydro-electric dams

The Legacy of the New Deal • Physical Rehabilitation of the Country:

Work Projects Administration:

20,000 miles of water mains laid 700 miles of bridges & viaducts 2,409 Firehouses built/renovated 1.5 million illiterate Americans

taught to read and write

Civil Works Administration:

12 million feet of sewer pipe 225,000 miles of roads 40,000 public schools built 3,700 public playgrounds Over 1,000 municipal airports 250,000 public restrooms

The Legacy of the New Deal • Physical Rehabilitation of the Country:

Tennessee Valley Authority:

29 Hydro-electric dams 11 Coal power plants 9 Natural Gas power plants 3 Nuclear Power plants 759 Recreation sites on 485,420

acres

The Legacy of the New Deal • Human Rehabilitation of the Country:

Established the principle that the government is responsible for the health, welfare, security and education of its citizens:

The Legacy of the New Deal • Economic Revitalization of the Country:

The Legacy of the New Deal • Economic Revitalization of the Country:

The Legacy of the New Deal • Political Revitalization of the Country:

Reasserted Presidential leadership and strengthened the executive branch

Redefined the concept of American democracy to include economic security and social justice

Enabled Congress to put through necessary legislation for the relief, recovery, and rebuilding of America

Increased the size and scope of the government to meets the needs of the Great Depression