THE NEW DEAL 1 Election of 1932 Herbert

THE NEW DEAL 1

Election of 1932 Herbert Hoover (R) v. Franklin Delano Roosevelt (D) "This campaign is more than a contest between two men. It is more than a contest between two parties. It is a contest between two philosophies of government. “ –Hoover ROOSEVELT WON, AND USHERED IN THE NEW DEAL 2

Eleanor Roosevelt (18841962) 3

Franklin Delanor Roosevelt (1882 -1945) 4

FDR’S LEGACY (1882 -1945) 4 terms, elected 3 times (only president) New Deal program – created welfare state Been viewed as both: National Savior & Socialist who craved more federal power, greatly expanded size/scope of federal government 5

Important to Remember… As late as 1938, after almost a decade of governmental "pump priming, " almost one out of five workers remained unemployed. 6

Still many thought govt. intervention necessary…. "It is my contention that no one should be allowed to write about FDR who did not experience that era. It really is one of those cases of you had to be there. Roosevelt may be a myth. . . today, but 60 years ago that myth looked more like hope. In his fireside chats, he turned our Philco radios into shrines, and when he said that America could not afford to live with one-third of a nation ill-housed and ill-fed, we thought he would do something about it. And he did" (Daniel Schorr, "The FDR 'Myth': You Had To Be There, " Christian Science Monitor, 25 October 1996, 19). 7

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FIRST 100 DAYS - FDR Inauguration day: “The only thing we have to fear is fear itself” First 100 days characterized by: ACTION Centered on: RELIEF, RECOVERY, REFORM AVALANCHE OF BILLS Set up NEW GOVERNMENT AGENCIES Called “ALPHABET SOUP” agencies because of their acronyms Went off: GOLD STANDARD, printed $ not backed by precious metal 9

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NEW PROGRAMS GALORE Emergency Banking Act – Fed. Print $ to banks FDIC – Federal Deposit Insurance Corporation – today insures depositor to $250, 000 per bank 11

ALPHABET SOUP AAA – Agriculture Adjustment Act – stabilize prices, limit overproduction by offering subsidies (free $ to not plant/harvest crops) NRA (NIRA)– National Recovery Act – codes established to regulate business practices TVA – Tennessee Valley Authority – power to rural areas in 7 states CCC – Civilian Conservation Corps – ran by army; young men planted trees, developed trails, stocked lakes w/ fish, built roads, telephone lines, bridges, campsites 12

Lake Lowell Dams reinforced in 1930 s by CCC Pillar constructed by CCC at upper embankment of Lake Lowell 13

CCC IN IDAHO List of Projects http: //idahoptv. org/outdoors/shows/ccc/idaho/idp rojects. html Primary Sources http: //idahoptv. org/outdoors/shows/ccc/show/tra nscript. cfm Idaho CCC Camps http: //idahoptv. org/outdoors/shows/ccc/idaho/ca mps. html 14

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Supreme Court 1935 – Supreme Court ended 1 st New Deal AAA (Agriculture Adjustment Act) and NRA (National Recovery Act) deemed unconstitutional This calls for shift in approach by FDR, as seen in the Second New Deal 17

Practical Roosevelt… Franklin D. Roosevelt was a pragmatist, not an ideologue. He summed up his style of political action when he stated: "Do something. And when you have done that something, if it works, do it some more. And if it does not work, then do something else. " 18

Father Charles Coughlin Roosevelt Supporter-turned-Critic Priest (Catholic) & Political Activist Had widely popular radio show w/ audience near 40 million at peak First…supported New Deal “Christ’s Deal” Hated slow rate of reform & his inability to influence the direction of New Deal Ended up…challenging Roosevelt by launching “National Union for Social Justice” Roosevelt, said Coughlin, had “out-Hoovered Hoover” 19

Father Charles Coughlin (1891 -1979) 20

Huey Long “Kingfish” Another prominent New Deal critic (from left) Thought programs too conservative Governor, Senator Louisiana Redistribution of Wealth "Every man a king, but no one wears a crown" Founded “Share-the-Wealth” society: advocated taxing rich to help the poor Had Presidential aspirations but assassinated in Sept. 1935 21

Roosevelt's years in office in the 1930 s divide into two periods: The First New Deal (1933 -1935) was characterized by relief of the immediate problems of unemployment. The Second New Deal (1935 -1937) was characterized by reform. Increasingly, members of Congress and others called for fundamental reform of society, not just relief of the symptoms of social and economic problems. 22

Still more critics… FDR: Socialist or Capitalist? Business leaders felt New Deal policies hurt their interests Communist-Americans emerged in the U. S. , claiming “Communism is 20 th-century Americanism" Socialist-Americans tried to “preach the gospel of government and collective ownership of the means of production and distribution" 23

POLITICAL RE-CONFIGURATION ROOSEVELT COALITION -NEW GROUP OF DEMOCRATIC VOTERS First time in history, blacks vote for Democratic policies Most prior to this had championed the Republican party of Lincoln and the Radical Republicans who had fought for blacks’ rights As Roosevelt lost support from mainstream America, he looked to minority groups for support of his welfare programs RESULT: Many Americans’ voting habits shift 24

ROOSEVELT COALITION 25

Second New Deal Focus: Social Reform Issues WPA – Works Progress Adminstration – highways, bridges, parks, airports Federal Theater, Arts, Music, Dance, and Writing Project funded unemployed artists & writers BECAME NATION’S 2 ND LARGEST EMPLOYER IN 8 YRS. OF OPERATION 26

“Social” Second New Deal SOCIAL SECURITY FREE $ FROM GOVERNMENT –STIPENDS- FOR AGED, UNEMPLOYED, DEPENDENT CHILDREN NATIONAL LABOR RELATIONS BOARD est. by Wagner Act GOVERNMENT RECOGNIZED, PROTECTED LABOR UNIONS WEALTH TAX ACT – Increased taxes on wealthy 27

ROOSEVELT RECESSION 1937 – BELIEVING ECONOMY RECOVERED, ROOSEVELT CUT BACK ON NEW DEAL PROGRAMS, TO BALANCE BUDGET PLAN BACKFIRED AS UNEMPLOYMENT SPIKED 1. 5% BY MID-YEAR; FARM PRICES FELL; BY AUG. 4 MILLION (MORE) AMERICANS UNEMPLOYED 28

Keynesian (KAYN-zee-uhn) Economics Economic Theory proposed by British economist John Maynard Keynes (KAYNZ) (1883 -1946) Rejected Free Market economics (Adam Smith’s capitalist vision) Theory advocates massive govt. spending— even deficit spending—in times of recession Then—when economy recovers—reduce govt. spending 29

SUPPLY-SIDE ECONOMICS Another approach and theory to economics where: Government Cuts Taxes and Spending Keep more $ in private individuals hands instead of government; individuals solve problem, not govt. Keynesian Economics Is Wrong: Bigger Gov't Is Not Stimulus See video on Youtube and decide for yourself…. You. Tube search“Keynesian Economics Is Wrong: Bigger Gov't Is Not Stimulus” 30

New Deal Legacy GOVERNMENT = PROBLEM SOLVER For the first time, many Americans expected the federal government to play a vital role in the nation's social welfare Created MODERN SOCIAL WELFARE SYSTEM Second World War was what got us out of the Depression, not New Deal Still…. Was it a success in helping Americans? Did New Deal programs/goals align with the Founders’ vision for the United States? 31

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