Chapter 33 The Great Depression and the New

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Chapter 33 The Great Depression and the New Deal, 1933– 1939

Chapter 33 The Great Depression and the New Deal, 1933– 1939

I. FDR: Politician in a Wheelchair • FDR’s personality formed because of paralysis •

I. FDR: Politician in a Wheelchair • FDR’s personality formed because of paralysis • His wife, another personal & political asset • Franklin Roosevelt’s political appeal – Strong orator, popular depression governor of N. Y. • Nominated by Democrats (1932) – Balanced budget – Sweeping social reforms

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II. Presidential Hopefuls of 1932 • Franklin D. Roosevelt (Democrat) – Preached a New

II. Presidential Hopefuls of 1932 • Franklin D. Roosevelt (Democrat) – Preached a New Deal for the “forgotten man, ” • Plan was vague and somewhat contradictory • Herbert Hoover (Republican) – Usually campaigned from the White House • Kept faith in American free enterprise, individual initiative

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III. Hoover’s Humiliation in 1932 • 1932 election – A distinct shift of blacks

III. Hoover’s Humiliation in 1932 • 1932 election – A distinct shift of blacks to the Roosevelt camp • 1932 election results – 22, 809, 638 for Roosevelt; 15, 758, 901 for Hoover – The electoral count 472 to 59

IV. FDR and the Three R’s: Relief, Recovery, Reform • The New Deal -

IV. FDR and the Three R’s: Relief, Recovery, Reform • The New Deal - FDR’s econ & social program – Relief. Recovery. Reform. • Hundred Days (March 9 -June 16, 1933) – Nationwide banking holiday – Congress follows FDR’s lead (Rubber stamp congress) • New Dealers - Embraced progressive ideas • • Unemployment and old age insurance, Minimum wage The conservation and development of natural resources Restrictions on child labor Tennessee Valley Authority

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Table 33 -1 p 755

Table 33 -1 p 755

V. Roosevelt Manages the Money • Glass-Steagall Banking Reform Act 1933 – Federal Deposit

V. Roosevelt Manages the Money • Glass-Steagall Banking Reform Act 1933 – Federal Deposit Insurance Corporation (FDIC) • A “managed currency” (inflation) introduced – Gold bought at increasing prices ($21 -35 in 1 year) • Roosevelt turned to the radio – “fireside chats” • Confidence returned; banks opened their doors

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Figure 33 -1 p 756

Figure 33 -1 p 756

VI. Creating Jobs for the Jobless • Overwhelming unemployment (~25%) • Civilian Conservation Corps

VI. Creating Jobs for the Jobless • Overwhelming unemployment (~25%) • Civilian Conservation Corps (CCC) – The most popular New Deal “alphabetical agencies” • Hard-pressed Special groups relief – Agricultural Adjustment Act (AAA) – Home Owners’ Loan Corporation (HOLC) – Civil Works Administration (CWA) (1933) • Least popular program, shovel leaning, “make-work”

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Table 33 -2 p 758

Table 33 -2 p 758

VII. A Day for Every Demagogue • The appearance of demagogues – Father Coughlin

VII. A Day for Every Demagogue • The appearance of demagogues – Father Coughlin (A “microphone messiah”) – Dr. Francis E. Townsend – Senator Huey P. Long (The “Kingfish”) • Links between demagogues, fascism, and crisis – Authoritarianism was the answer elsewhere • Works Progress Administration (WPA) – Built public buildings, bridges, stadiums, roads, artworks – Critics said WPA meant “We Provide Alms”

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VIII. New Visibility for Women • First Lady Eleanor Roosevelt – Variety of political

VIII. New Visibility for Women • First Lady Eleanor Roosevelt – Variety of political / social efforts • Francis Perkins – Secretary of Labor (1 st female cabinet member) • Mary Mc. Leod Bethune – Minority Affairs Director • Margaret Mead – 34 books, American Museum of Natural History • Pearl S. Buck – The Good Earth (1931)

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IX. Helping Industry and Labor • The National Recovery Administration (NRA) – The most

IX. Helping Industry and Labor • The National Recovery Administration (NRA) – The most complex, far-reaching New Deal projects • NRA’s “fair competition” codes – Self-made rules for both management and labor • SCOTUS Schechter ruling killed the NRA • The liquor industry: repeal of the prohibition – 21 st Amendment

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X. Paying Farmers Not to Farm • Agricultural Adjustment Administration (AAA) • Created “artificial

X. Paying Farmers Not to Farm • Agricultural Adjustment Administration (AAA) • Created “artificial scarcity” to establish “parity prices” • Paid growers to reduce their crop acreage – Ruled unconstitutional in 1936 • The Second Agricultural Adjustment Act (1938) • Soil Conservation & Domestic Allotment Act (1936) – Farmers paid to plant soil-conserving

XI. Dust Bowls and Black Blizzards • The Dust Bowl: Nature’s unplanned scarcity –

XI. Dust Bowls and Black Blizzards • The Dust Bowl: Nature’s unplanned scarcity – Drought, wind, human misdeeds triggered the storms • John Steinbeck, The Grapes of Wrath (1939). • Indian Reorganization Act (1934) (“Indian New Deal”) – Encouraged tribes to establish local self-government – To preserve their native crafts and traditions – It helped to stop the loss of Indian lands

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Map 33 -1 p 765

Map 33 -1 p 765

XII. Battling Bankers and Big Business • Securities and Exchange Commission (SEC) 1934: –

XII. Battling Bankers and Big Business • Securities and Exchange Commission (SEC) 1934: – Designed as a watchdog administrative agency • The Public Utility Holding Company Act of 1935 – Designed as a watchdog administrative agency

XIII. The TVA Harnesses the Tennessee • The Tennessee Valley Authority (TVA) (1933) –

XIII. The TVA Harnesses the Tennessee • The Tennessee Valley Authority (TVA) (1933) – Part of “planned economy” • Federally built, owned dams – Benefits • Employment, cheap power, low cost housing, reforestation, better navigation, flood control – Conservative reaction to “socialistic” program • Would limit program to Tennessee valley • Caused westerners to want their own programs – Columbia, Colorado, and Missouri Rivers

Tennessee Valley

Tennessee Valley

Figure 33 -2 p 767

Figure 33 -2 p 767

XIV. Housing and Social Security • Federal Housing Administration (1934) – Building industry stimulated

XIV. Housing and Social Security • Federal Housing Administration (1934) – Building industry stimulated through small loans • Social Security Act (1935) – Unemployment insurance and old-age pensions – Has since expanded to include more people – Not as comprehensive as European nations – Republican opposition was bitter (“cult of leisure”)

XV. A New Deal for Labor • Wagner Act/National Labor Relations Act (1935) •

XV. A New Deal for Labor • Wagner Act/National Labor Relations Act (1935) • National Labor Relations Board – Effective unions began to organize – Conservatives were upset (private property) • Fair Labor Standards Act (1938) – Minimum-wage/maximum-hours, No child labor • Congress of Industrial Organizations (CIO) – 4 mil members (1940), battled rival A. F. L. for control

Memorial Day Massacre @ Republic Steel (1937)

Memorial Day Massacre @ Republic Steel (1937)

General Motors Sit-down Strikers, Flint, Michigan, 1937

General Motors Sit-down Strikers, Flint, Michigan, 1937

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XVI. Landon Challenges “the Champ” • The presidential election of 1936 – Democrats renominated

XVI. Landon Challenges “the Champ” • The presidential election of 1936 – Democrats renominated FDR (New Deal platform) – Republicans nominate Alfred M. Landon • Attacked Franklin “Deficit” Roosevelt for his radicalism • The political battle of 1936 – The most bitter campaign since 1896 • “Class warfare”- the needy vs the greedy • Election returns of 1936 – Popular vote was FDR 27, 752, 869 to 16, 674, 665 – The electoral count FDR 523 to 8 – Dems win veto-proof House and Senate

XVII. Nine Old Men on the Bench • SCOTUS ultra-conservative and old (6 over

XVII. Nine Old Men on the Bench • SCOTUS ultra-conservative and old (6 over 70) – 7 of 9 nominated by Republicans – FDR regarded them as conservative obstructionists • Roosevelt’s failed “court packing” scheme – Increase size of SCOTUS from 9 to 15 • FDR accused of trying to be a dictator

XVIII. The Court Changes Course • “Court packing” plan was unsuccessful but… – SCOTUS

XVIII. The Court Changes Course • “Court packing” plan was unsuccessful but… – SCOTUS became more sympathetic to New Deal • It upheld the National Labor Relations Act • It upheld the Social Security Act – Congress voted full pensions for justices over 70 • Resignations & death unpacked the court

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XIX. Twilight of the New Deal • FDR’s first term didn’t banish the depression

XIX. Twilight of the New Deal • FDR’s first term didn’t banish the depression – Recovery slow & ‘modest’, unemployment 25% to 15% • FDR embraced John Maynard Keynes ideas – Keynesianism, use of gov’t $ to help the economy • Hatch Act (1939) – Federal administrative officials can’t campaign • By 1938 New Deal lost most of it’s momentum – Republicans gained seats in both houses

XX. New Deal or Raw Deal? • Foes of the New Deal condemned –

XX. New Deal or Raw Deal? • Foes of the New Deal condemned – Anti-American, anti-capitalistic, socialistic nature – No balanced budget, deficit larger – Big Government - “Bureaucratic meddling” – States’ rights trumped by national government • Roosevelt’s leadership was denounced – “one-man supergovernment”, attempted dictatorship • Failed to cure the depression

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XXI. FDR’s Balance Sheet • New Dealers staunchly defended their record – Relieved the

XXI. FDR’s Balance Sheet • New Dealers staunchly defended their record – Relieved the worst of the crisis in 1933 – Promoted the “balancing the human budget” – Averted the collapse of America’s economic system – Stopped socialism/ communism rebellion – Fairer distribution of national income achieved – Citizens regained and retained their self-respect – Debt caused by war ($40 bil-1939; $258 bil-1945) – Attacked by left & right, FDR chose a middle road – Preserved American democracy – Unwittingly girded the nation for WW II