Essential QuestionEssential Question::– To what extent did Franklin To what extent did Franklin

Roosevelt’s New Deal provide Roosevelt’s New Deal provide relief, recovery, & reform relief, recovery, & reform during the Great Depression?during the Great Depression?

Franklin Franklin Roosevelt & Roosevelt & the First New the First New Deal (1933-Deal (1933-1935)1935)

The Election of 1932The Election of 1932

The depression made Hoover the The depression made Hoover the “victim” while Franklin Roosevelt “victim” while Franklin Roosevelt emerged as the “savior”:emerged as the “savior”:– In the 1932 election, FDR was able to In the 1932 election, FDR was able to

unite the rural & urban factions of the unite the rural & urban factions of the Democratic party & won a landslide Democratic party & won a landslide victoryvictory

– FDR appealed to Protestants & FDR appealed to Protestants & Catholics, farmers & workers, native-Catholics, farmers & workers, native-born & immigrantsborn & immigrants

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

The Hundred DaysThe Hundred Days

When FDR took over in 1933, the When FDR took over in 1933, the U.S. economy was on the brink of U.S. economy was on the brink of collapse:collapse:– Unemployment was at 25%Unemployment was at 25%– 38 states had total bank failure38 states had total bank failure

FDR requested from Congress broad FDR requested from Congress broad executive power to begin his “New executive power to begin his “New Deal” program of economicDeal” program of economic relief,relief, recoveryrecovery && reformreform

FDR asked for “broad executive power that would be given to me if we were in

fact invaded by a foreign foe.”

“Let me assert my firm belief that the only thing we have to fear is fear itself;the only thing we have to fear is fear itself; nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert

retreat into advance.”

Public Relations Efforts: FDR’s Fireside ChatsPublic Relations: Eleanor Roosevelt’s travels

The Hundred DaysThe Hundred Days

In his 1In his 1stst hundred days, FDR began hundred days, FDR began his 1his 1stst New Deal (1933-35) New Deal (1933-35)

FDR’s 1FDR’s 1stst order of business was to order of business was to restore confidence in banking: restore confidence in banking: – Declared a Declared a 4-day bank holiday: 4-day bank holiday: closed or closed or

funded weak banks & opened new gov’t-funded weak banks & opened new gov’t-aided banksaided banks

– Glass-Steagall ActGlass-Steagall Act created the FDIC created the FDIC which guaranteed all bank deposits up which guaranteed all bank deposits up to $5,000to $5,000

Banks were regulated (not nationalized); the economic system was reformed

(not drastically changed)

Emergency Banking Act of 1933

Now, the FDIC insures deposits up to $100,000

“Capitalism was saved in eight days”

The Hundred Days The Hundred Days The greatest success of the First New The greatest success of the First New

Deal was its ability to offer Deal was its ability to offer reliefrelief to to unemployed citizens via the unemployed citizens via the Reconstruction Finance CorpsReconstruction Finance Corps– Modest relief checks were doled to 15% Modest relief checks were doled to 15%

of Americans of Americans – Federal Emergency Relief ActFederal Emergency Relief Act (FERA)(FERA)

pumped $500 million into state welfare pumped $500 million into state welfare programsprograms

The Hundred DaysThe Hundred Days

Relief efforts of the First New Deal Relief efforts of the First New Deal created more “alphabet agencies”created more “alphabet agencies”– Civilian Conservation Corps (CCC)Civilian Conservation Corps (CCC)

employed urban menemployed urban men– Civilian Works Admin (CWA)Civilian Works Admin (CWA) hired 4 hired 4

million men & womenmillion men & women– Agricultural Adjustment AdminAgricultural Adjustment Admin (AAA)(AAA)

subsidized farmerssubsidized farmers

CCC workers paved roads, planted trees, built bridges

CWACWA

Creating drainage system for an airfield Dredging a lake

AAA

Percentage of American Families Percentage of American Families Accepting Government Relief in Accepting Government Relief in 19331933

The Hundred Days The Hundred Days

The The National Industrial Recovery Act National Industrial Recovery Act (NIRA)(NIRA) was the 1 was the 1stst attempt at attempt at economic economic recoveryrecovery::– Created the Created the National Recovery Admin National Recovery Admin

(NRA)(NRA) set max hours & minimum wages set max hours & minimum wages for workers & stimulated industry by for workers & stimulated industry by fixing prices & setting production limitsfixing prices & setting production limits

– Created the Created the Public Works Admin (PWA)Public Works Admin (PWA) to build public roads, bridges, & to build public roads, bridges, & buildings buildings

Additional attempts to stimulate the economy include taking the U.S. off the gold standard &

ending prohibition (21st amendment)

National Recovery AdministrationNational Recovery Administration

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

The Hundred DaysThe Hundred Days Some of FDR’s First New Deal Some of FDR’s First New Deal focused on long-term focused on long-term reformsreforms – Tennessee Valley Authority (TVA)Tennessee Valley Authority (TVA)

created dams in 7 states to provide created dams in 7 states to provide cheap hydroelectric power & create jobs cheap hydroelectric power & create jobs

– Securities & Exchange Commission Securities & Exchange Commission (SEC)(SEC) to regulate the stock market & to regulate the stock market & prevent another stock market crash prevent another stock market crash

The Tennessee Valley The Tennessee Valley AuthorityAuthority

Critics claimed the TVA was too socialistic; Competing electric companies attacked the

TVA for selling cheaper electricity & eliminating competition

The Hundred DaysThe Hundred Days The 1The 1stst hundred days of hundred days of

FDR’s administration FDR’s administration were temporary were temporary solutions to solve solutions to solve problems, but…problems, but…

……psychologically, psychologically, Americans believed Americans believed that FDR was that FDR was actively responding actively responding to the Great to the Great DepressionDepression

The The Hundred Hundred DaysDays

“Even the hand of an iron dictator is in preference to a paralytic stroke”

—Alf Landon (Repub nominee in 1936)

“The whole country is with him, just so he does something. If he burned down the

capitol we would cheer and say ‘well, we at least got a fire started anyhow.’”

—Will Rogers

Essential QuestionEssential Question::– To what extent did Franklin Roosevelt’s To what extent did Franklin Roosevelt’s

New Deal provide relief, recovery, & New Deal provide relief, recovery, & reform during the Great Depression?reform during the Great Depression?

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

Criticism of the First New Criticism of the First New DealDeal

The failure of the New Deal to end The failure of the New Deal to end the depression led to growing the depression led to growing frustration among Americansfrustration among Americans– From 1933-1934, the New Deal focused From 1933-1934, the New Deal focused

in immediate problems & did very little in immediate problems & did very little to help unskilled workers & to help unskilled workers & sharecroppers sharecroppers

– In 1935, FDR shifted approach from In 1935, FDR shifted approach from economic relief to reformeconomic relief to reform

Challenges to FDRChallenges to FDR

By 1935, signs of discontent with the By 1935, signs of discontent with the New Deal were evidenced as 3 critics New Deal were evidenced as 3 critics gained national attention: gained national attention: – Father Charles CoughlinFather Charles Coughlin called for called for

nationalizingnationalizing U.S.U.S. banks;banks; used anti-used anti-Semitism in radio sermons Semitism in radio sermons

– Francis TownsendFrancis Townsend appealed to the elderly appealed to the elderly with a $200/mo payment plan to anyone with a $200/mo payment plan to anyone over 60 inover 60 in orderorder toto stimulatestimulate thethe economyeconomy

Father Charles CoughlinFather Charles Coughlin

Dr. Francis Dr. Francis TownsendTownsend

Challenges to FDRChallenges to FDR Louisiana Senator Huey Louisiana Senator Huey

Long proposed his Long proposed his Share the WealthShare the Wealth plan plan to:to:– Take from the rich— Take from the rich—

a 100% tax on all a 100% tax on all personal personal income over income over $1 million$1 million

– Give to the poor— Give to the poor— give every citizen give every citizen $2,500 per year $2,500 per year

“The Kingfish”

Challenges to FDRChallenges to FDR

The popularity of these opposition The popularity of these opposition voices showed the need for the New voices showed the need for the New Deal to do more to help Deal to do more to help

In the 1934 mid-term elections, the In the 1934 mid-term elections, the Democrats increased their control of Democrats increased their control of Congress & initiated a series of Congress & initiated a series of programs called the programs called the Second New Second New DealDeal (1935-38) (1935-38)

“Boys—this is our hour. We’ve got to get everything we want…now or never.”

—RFC head Harry Hopkins

The Second New Deal The Second New Deal

TheThe 11stst act of the 2 act of the 2ndnd New Deal was New Deal was Works Progress Admin (WPA)Works Progress Admin (WPA), the most , the most comprehensive, direct-assistancecomprehensive, direct-assistance

programprogram ofof thethe NewNew DealDeal– The national gov’t hired 10 million The national gov’t hired 10 million

Americans in an attempt to stimulate the Americans in an attempt to stimulate the economyeconomy

– WPA created building projects, funded WPA created building projects, funded artists, & pumped $10 billion into the artists, & pumped $10 billion into the economy economy

WPA helped but never employed enough people to stimulate consumer purchase

power—it made the Depression bearable

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

WPA InitiativesWPA Initiatives

WPA Health InitiativesWPA Health Initiatives

WPA Arts ProjectWPA Arts Project

WPA Community WPA Community MuralsMuralsConstruction of the Dam

by William Gropper

WPA Music ProjectsWPA Music Projects

WPA Theater ProjectsWPA Theater Projects

WPA Writers ProjectsWPA Writers Projects

Social SecuritySocial Security

Social Security ActSocial Security Act (1935) was the 1 (1935) was the 1stst U.S. welfare program for the aged, U.S. welfare program for the aged, disabled, & unemployeddisabled, & unemployed– Old-age pensions to be funded by Old-age pensions to be funded by

employers & workers employers & workers – Unemployment compensation to begin Unemployment compensation to begin

in 1942 funded nat’l taxes but in 1942 funded nat’l taxes but administered by statesadministered by states

– Welfare payments for the blind, Welfare payments for the blind, handicapped, & needy children handicapped, & needy children

Liberal critics argued Liberal critics argued that SS did not do that SS did not do enoughenough

Conservative critics Conservative critics argued that SS argued that SS violated violated individualism & self-individualism & self-reliance reliance

Social Security Social Security created America’s 1created America’s 1stst

welfarewelfare program to program to help individuals help individuals

Labor LegislationLabor Legislation Wagner ActWagner Act (1935) created the Nat’l (1935) created the Nat’l

Labor Relations Board to oversee Labor Relations Board to oversee labor-management affairslabor-management affairs– Mandated management to negotiate Mandated management to negotiate

with unions regarding pay, hours, with unions regarding pay, hours, conditions if majority of workers vote for conditions if majority of workers vote for a uniona union

Fair Labor Standards ActFair Labor Standards Act (1938) (1938) created 1created 1stst minimum wage & minimum wage & maximum hour laws (aimed at maximum hour laws (aimed at helping non-unionized workers)helping non-unionized workers)

40¢ per hour40 hours per week

The “Magna Carta” for labor

Success of the New Deal Success of the New Deal Programs?Programs?

ConclusionsConclusions

The New Deal was made up of 3 The New Deal was made up of 3 parts: parts: reliefrelief, , recoveryrecovery, & , & reformreform– New Deal was most successful in New Deal was most successful in

providing immediate relief to ease providing immediate relief to ease economic suffering economic suffering

– The New Deal did not bring economic The New Deal did not bring economic recovery or an end to the depressionrecovery or an end to the depression

– The New Deal brought major reforms The New Deal brought major reforms that changed Americathat changed America

For the 1st time, the gov’t used Keynesian

economics (deficit spending & gov’t

spending to stimulate the economy)

The gov’t assumed responsibility for the health of the nation's economy & citizens

The New Deal signaled the beginning of the

welfare state