FDR Modern Presidency PreModern 1789 1932 Modern 1933

FDR

Modern Presidency • Pre-Modern 1789 -1932 • Modern 1933 -present • 2 nd American republic? – Theodore Lowi, The Personal Presidency

Why the Modern Presidency? Crisis • The Depression • WW II Solution: Power to the Presidency

Real GDP (per working age person) • Timothy J. Kehoe Professor of Economics, University of Minnesota and Adviser, Federal Reserve Bank of Minneapolis, http: //www. econ. umn. edu/~tkehoe/

GNP Per Capita (relative to 1889 -1929 trend) J. Bradford De. Long, University of California at Berkeley and NBER http: //econ 161. berkeley. edu/TCEH/Slouch_Crash 14. html

Stock Market http: //www. affordablehousinginstitute. org/blogs/us/Stock_market_crash_1929_small. jpg

The Depression in the US

“Hoovervilles”

Herbert Hoover, 1929 -1933

Governor Roosevelt of NY (with former Gov. Al Smith)

John Maynard Keynes: Modern Liberalism

Economic Theory Classical Liberalism (Laissez-faire Capitalism) vs. Modern Liberalism (Keynesian Economics)

Circulation Newmann gets paid!!!!!!!!!!!! Employee enrolls at VCU Employee decides he/she can pay for college Newmann buys bagels, Chinese food, new Pat Metheny CD, sneakers Employees of businesses near VCU get paid

Business Cycle Boom-Bust cycle Self-regulating

But, what if…. Non-self-regulating

Government job?

FDR’s New Deal • FDR Inaugural Speech (text) (audio of oath of office and inaugural speech) • Fireside Chats

How FDR and New Deal Transformed the Presidency and the US 1. Government Role in the Economy 2. President’s Role 3. Enlargement of the Federal Government 4. Precedents 5. Electoral Realignment

1. Government Role in the Economy

The New Deal: Creating Jobs

Works Progress Administration

New Deal: Regulation National Recovery Administration but… Schechter v. US (1935)

New Deal: Redistribution

2. President’s Role

3. Enlargement of the Federal Government

The Government Presidential Appointees (approved by Senate) Career Bureaucracy (civil service, foreign service, career military)

Presidential Appointee Level President Secretary of… Deputy Sec of… Undersecretary of… Assistant Secretary of…

Career vs. Appointee Transition 2000 -2001 Clinton W Career

“Presidential Branch” Executive Office of the President (Staff) Appointees (Line Officials; Legal offices approved by Senate) Career Bureaucracy

Inside the EOP Executive Office of the Presidency (EOP) WHO NSC Staff OMB Staff NEC USTR WHO-White House Office; OMB-Office of Management and Budget; USTR-Office of US Trade Representative; OSTP-Office of Science and Technology Policy; ONDC-Office of National Drug Control Policy OGC OSTP ONDC NSC-National Security Council Staff; NEC –National Economic Council Staff; OGC-Office of Global Communications;

Decision Making President Executive Branch Cabinet Dept EOP Cabinet Dept Presidential Staff

4. Precedents • 100 Days • New Deal as a new social contract • President as provider of services – Not Congress – Not federal government

5. Electoral Realignment • 1860 -1932 (72 years) – 56 years Republican; – 16 years Democratic • 1932 -1980 (48 years) – 32 years Democratic; – 16 years Republican Atlas of Presidential elections

New Deal Coalition • • Democratic South African-Americans Union members Urban North Immigrant/newer ethnic groups Farmers Socialist parties voters

Effect of FDR on US Political Culture Left US Pre 1933 Left-right defined as accepted level of government intervention in the economy: right = less intervention left = more intervention Right

FDR Character

FDR: Polio

Eleanor Roosevelt