The Election of 1932 The depression made Hoover

The Election of 1932 ■ The depression made Hoover the “victim” while Franklin Roosevelt emerged as the “savior”: –In the 1932 election, FDR was able to unite the rural & urban factions of the Democratic party & won a landslide victory –FDR appealed to Protestants & Catholics, farmers & workers, native-born & immigrants

“I pledge you—I pledge myself to a new deal for the American people. ”

The Hundred Days ■ When FDR took over in 1933, the FDR for “broad power of U. S. asked economy wasexecutive on the brink that would be given to me if we were in collapse: fact invaded by a foreign foe. ” –Unemployment was at 25% – 38 states had total bank failure ■ FDR requested from Congress broad executive power to begin his “New Deal” program of economic relief, recovery & reform

“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. ”

The Hundred Days st hundred Banks (notdays, nationalized); ■ In were his 1 regulated FDR Now, the FDIC insures the economic system was reformed st began up histo 1$250, 000 New Deal (1933 -35) deposits (not drastically changed) ■ FDR’s 1 st order of business was to Emergency Banking in Actbanking: of 1933 restore confidence –Declared a 4 -day bank holiday: closed or funded weak banks & opened new gov’t-aided banks –Glass-Steagall Act created the FDIC which guaranteed all bank deposits up to $5, 000

The Hundred Days ■ The greatest success of the First New Deal was its ability to offer relief to unemployed citizens via the Reconstruction Finance Corps –Modest relief checks were doled to 15% of Americans –Federal Emergency Relief Act (FERA) pumped $500 million into state welfare programs

The Hundred Days ■ Relief efforts of the First New Deal created more “alphabet agencies” –Civilian Conservation Corps (CCC) employed urban men –Civilian Works Admin (CWA) hired 4 million men & women –Created the Public Works Admin (PWA) to build public roads, bridges, & buildings

CCC workers paved roads, planted trees, built bridges

The Hundred Days ■ The National Industrial Recovery Act (NIRA) was the 1 st attempt at economic recovery: –Created the National Recovery Admin (NRA) set max hours & minimum wages for workers & stimulated industry by fixing Additional attempts to stimulate the economy prices & setting production limits include taking the U. S. off the gold standard & ■ending Agricultural Adjustment Admin prohibition (21 st amendment) (AAA) subsidized farmers

National Recovery Administration The NRA ended up being too bureaucratic; business cooperation gave way to self-interest & greed

The Hundred Days ■ Some of FDR’s First New Deal focused on long-term reforms –Securities & Exchange Commission (SEC) to regulate the stock market & prevent another stock market crash –Tennessee Valley Authority (TVA) created dams in 7 states to provide cheap hydroelectric power & create jobs

The Tennessee Valley Authority Critics claimed the TVA was too socialistic; Competing electric companies attacked the TVA for selling cheaper electricity & eliminating competition

The Hundred Days ■ The 1 st hundred days of FDR’s administration were temporary solutions to solve problems, but… ■ …psychologically, Americans believed that FDR was actively responding to the Great Depression

Franklin Roosevelt & the Second New Deal (1935 -1938)

Criticism of the First New Deal ■ The failure of the New Deal to end the depression led to growing frustration among Americans –From 1933 -1934, the New Deal focused on immediate problems & did very little to help unskilled workers & sharecroppers –In 1935, FDR shifted approach from economic relief to reform

Challenges to FDR ■ By 1935, signs of discontent with the New Deal were evidenced as 3 critics gained national attention: –Father Charles Coughlin called for nationalizing U. S. banks; used anti-Semitism in radio sermons –Francis Townsend appealed to the elderly with a $200/mo payment plan to anyone over 60 in order to stimulate the economy

Challenges to FDR ■ Louisiana Senator Huey Long proposed his Share the Wealth plan to: Hueythe Long threatened to run –Take from rich—a 100% rd Party candidate but as a 3 tax on allwas personal income over assassinated in 1935 $1 million –Give to the poor—give every American $2, 500 per year

The Second New Deal ■ The 1 st act of the 2 nd New Deal was WPA helped but never employed enough Works (WPA), the (WPA) people. Progress to stimulate. Admin consumer purchase most comprehensive, direct-bearable power—it made the Depression assistance program of the New Deal –The national gov’t hired 10 million Americans in an attempt to stimulate the economy –WPA created building projects, funded artists, & pumped $10 billion into the economy

WPAcared Public Work Project WPA less about what got done as long as work was done: built hospitals, schools, airport fields… but also moved leaf piles & dug ditches

Social Security ■ Social Security Act (1935) was the 1 st U. S. welfare program for the aged, disabled, & unemployed –Old-age pensions to be funded by employers & workers –Unemployment compensation to begin in 1942 funded nat’l taxes but administered by states –Welfare payments for the blind, handicapped, & needy children

■ Liberal critics argued that SS did not do enough ■ Conservative critics argued that SS violated individualism & self -reliance ■ Social Security created America’s 1 st welfare program to help individuals

Labor Legislation ■ Wagner Act (1935) created the Nat’l Labor Relations Board to oversee labor-management affairs –Mandated management The “Magna Carta” for labor to negotiate with unions regarding 40 hours pay, hours, conditions if majority per week 40¢ per hour of workers vote for a union ■ Fair Labor Standards Act (1938) created 1 st minimum wage & maximum hour laws (aimed at helping non-unionized workers)

The gov’t assumed For the 1 st time, the Conclusions gov’t used Keynesian responsibility for the ■ The New Deal was made of 3 health of theup nation's economics (deficit economy citizens spending gov’t recovery, parts: &relief, & &reform relief recovery spending to stimulate The New Deal signaled – New Deal was most successful the economy) the beginning of the in providing immediate relief to welfare state ease economic suffering –The New Deal did not bring economic recovery, redistribute wealth, or end the depression –The New Deal brought major reforms that changed America

The End of the New Deal

The 1936 election saw the birth of a new End of the Democratic coalition that New would Deal last for 30■years: South, reached West, urban, New Deal its labor, high point ethnic groups, & the poor in 1936 when FDRblacks, was re-elected ■ FDR’s experienced more setbacks in his 2 nd term than is 1 st term but he still remained a popular leader

Packing the Supreme Court U. S. v. Butler Schechter v. U. S. (1936) (1935) ■ The Supreme Court was FDR’s last obstacle to overcome: –The Court ruled the NRA & AAA All 9 justices were old, white men; Only 3 unconstitutional were sympathetic to the New Deal; 2 were unpredictable; 4 wanted to block –FDR’s solution was to New ask Deal Justice Willis Vanto Devanter to retire Congress appt 1 planned new justice in 1932, but stayed on because he felt FDR for each justice over 70 yrs old was “unfitted & unsafe for the presidency” –This controversial “court packing” plan would add 6 new justices

Packing the Supreme Court ■ The court-packing scheme was FDR eventually appointed 5 justices to the but Supreme in his 4 terms legal set a. Court scary precedent: –The Senate strongly resisted FDR & the Court defended itself against “ageism” attacks –The crisis ended when the Court declared the Wagner Act & Social Security constitutional & Judge Van Devanter resigned

The End of the New Deal ■ 1938 saw the end of the New Deal –Other than the Fair Labor Standards Act, FDR’s 2 nd term saw no new New Deal programs –FDR’s court-packing plan hurt his relationship with Congress –The “Roosevelt Recession” of 1937 was the result of FDR’s attempt to reduce gov’t spending & balance the budget

Unemployment, 1929 -1942

The Impact of the New Deal

The Impact on Women ■ The New Deal brought few economic benefits to women: –The New Deal allowed for unequal wages; Social Security, the NRA, & minimum wage laws offered little help for women ■ But, women did see gains in gov’t: –The 1 st female cabinet member, Senator, ambassadors, & judges were appointed under FDR

The 1 st. The female cabinet member: 1 st female Senator: Hattie. Perkins Caraway(Dept (D-Arkansas) Francis of Labor)

The Impact on African-Americans ■ The New Deal did little for African Americans: Social Security “looks like a sieve with holes just large enough for the –the Racism & segregation remained majority Negroes to fall through” strongofduring the Depression —NAACP –The NRA allowed lower wage scales workers; The Blacks werefor theblack last hired & allowed first firedfor the eviction of AAA Blacks AAA experienced 50% farmers sharecroppers tenant is a & “continuation of unemployment rate the same rawdid deal” –Minimum wage &old. SS not apply to farmers & domestic

The Impact on African-Americans ■ Despite the inequalities of the New Deal, blacks supported FDR: –FDR hired African-Americans to key gov’t positions “While relief & WPA are not ideal, they are Eleanor Roosevelt spoke out better–than the Hoover bread lines & they’ll have toagainst do until the realdiscrimination thing comes along” racial –The RFC brought assistance to 40% of unemployed blacks through the WPA

The Impact on Mexican-Americans ■ Mexican-Americans fared even less than African-Americans: –The Dust Bowl led to a flood of whites into the agricultural fields in the southwest –Congress created immigration restrictions & allowed for the deportation of illegal residents to reduce state welfare payments –Received few New Deal benefits

The Impact on Native Americans ■ Native-Americans remained the poorest of all U. S. residents but did benefit from the New Deal –The Indian Reorganization Act shifted U. S. Indian policy from Indians as yeoman farmers to unified & autonomous tribes –Many gained employment in the Indian Bureau

The Impact on the South & West ■ The South & West benefited the most from the New Deal: –The AAA helped end Southern dependence on sharecropping in favor of a wage labor system –The West received more work relief & welfare than any region –Hydroelectric power & irrigation programs helped residents

Conclusion: Conclusion The New Deal & American Life

Second Life The New. First Deal and American Hundred Days ■ The New Deal lasted only 5 years majority of laws 10(1933 -1938); million were The 12 million were still unemployed FDR came in 2 bursts in 1933 when & 1935: in 1939 took office in 1933 ■ The New Deal was not very successful economically: –Helped relieve suffering but did not end the Depression –American wealth remained unequally distributed

The New Deal & American Life ■ The New Deal was more successful socially: –Social Security, Wagner Act, & the Fair Labor Standards Act helped elderly & disabled citizens, labor unions, & workers –The New Deal did not help women, minorities, domestic workers, or small farmers

The New Deal and American Life ■ The New Deal was most successful politically: –FDR’s leadership unified a new Democratic voting bloc –FDR used his leadership & optimism to provide a vital psychological lift to help citizens endure the Great Depression