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Chapter 12: The New Chapter 12: The New DealDeal
Main Idea: In 1933 Franklin Delano Roosevelt became president of a suffering nation. He quickly sought to address the country’s needs with mixed results.
Bell RingerBell RingerIn an April1932 speech, Franklin Delano
Roosevelt criticized the policies of Herbert Hoover as wrongly directed as the “top of the social and economic structure.” By contrast, Roosevelt pledged to help the “forgotten man at the bottom of the economic pyramid.” Only by doing so would the nation’s economic ills be cured, Roosevelt argued. At last, many thought, someone understood the plight of ordinary citizens. The personal connection Roosevelt established that day would serve him well in the months and years ahead.
Review QuestionsReview Questions
In Roosevelt’s view, what was wrong with Hoover’s policies?
How did Roosevelt establish a personal connection with ordinary citizens?
The Election of 1932The Election of 1932
Prior to this, the White House had been controlled by Republicans for 12 years
With increased unemployment and banks collapsing, most Americans blamed Hoover
Franklin Delano Roosevelt emerges as the Democrats candidate
Roosevelt’s riseRoosevelt’s rise
Was a distant relative of Former President Theodore Roosevelt
Served as the Assistant Secretary of the Navy under Woodrow Wilson
Ran for President in 1920 Became Governor of New York in 1929
and launched groundbreaking relief programs to aid victims of the Depression
Provided help to 1 of every 10 New York Famlies
1932 Campaign1932 Campaign
During his campaign Roosevelt promised relief for the poor and more public work programs
Public Works Programs are government funded building programs
Wanted to lower Tariffs Attacked Hoover for spending too much
money, and he promised to cut the federal budget
A Landslide Victory A Landslide Victory
Voters almost unanimously elected Roosevelt (won all but 6 states)
Democrats gained 90 seats in the House of Representatives and 13 Seats in Senate to win majority in Congress
Reading Focus Question Reading Focus Question #1#1
What were the key events of the presidential election of 1932? Many Americans blamed Hoover for
economic problems, Roosevelt promised relief and public works programs to provide jobs
A Political PartnershipA Political Partnership
Roosevelt’s greatest asset was his personality He was optimistic, charismatic, and
confident Roosevelt had contracted polio that left him
in a wheelchair, he worked hard to regain his physical strength, but Americans were really unaware of his physical disability.
Why not? Roosevelt was also a strong communicator
He gave a regular speech over the radio called a “Fireside Chat”
Roosevelt’s PhilosphyRoosevelt’s Philosphy
Roosevelt sometimes gave conflicting messages during his campaign Criticized Hoover for doing too much,
then for not doing enough Believed it was the government’s job
to take direct action to help its people
Eleanor RooseveltEleanor Roosevelt
Was Franklin’s distant cousin, and married While he was still in law school
She traveled and provided him with her insights (what she saw) in her travels
Before this time, the First Lady had no responsibilities
Eleanor Roosevelt however supported several social causes
Tried to stop the lynching of African Americans
Had her own newspaper column “My Day”
Reading Focus Question Reading Focus Question #2#2
What was the nature of Franklin and Eleanor Roosevelt’s political partnership? Their marriage played a vital role in
the president’s political career. Eleanor served as Franklin’s eyes and ears and he valued her insight
Roosevelt takes ActionRoosevelt takes Action
First priority for Roosevelt was to rescue the banking system
Within 2 days of taking office, Roosevelt issued an executive order issuing a “Bank Holiday” Closed all banks temporarily while
Congress passed the Emergency Banking Act
The Emergency Banking Act gave the government the power to examine each bank, determine its soundness, take steps to correct problems, or close banks if necessary
Within days, banks began to stabilize and people began to deposit money
Passed the Glass- Steagall Act creating the FDIC Federal Deposit Insurance Corporation which provided insurance for deposits
The Hundred DaysThe Hundred Days
Hundred Days was the first 100 days in office. Period of intense government activity
Pushed through the New Deal The New Deal had 3 goals
1. Relief for those suffering from the Great Depression
2. Recovery of the Depressed Economy 3. Reforms that would help prevent
serious economic crisis in the future
Civilian Conservation Corps (CCC) was created to address unemployment among young men 18-25
Were paid to work on planting trees and improving parks
Lived in army style camps and were required to send money home to help out their family
The AAA Agricultural Adjustment Act gave farmers a subsidy, or payment, to grow fewer crops.
Why would it be a good idea to grow fewer crops?
The National Industrial Recovery Act (NIRA) mandated that businesses in the same industry cooperate with each other to set minimum prices and levels of production
Also set aside $3.3 million for public works programs
This was managed by the Public Works Administration (PWA)
Federal Securities Act forced companies to share certain financial information with the public
To help investors and restore confidence in markets
In 1934 Congress established the Securities and Exchange Commission
Was the nation’s watchdog over the stock market
Tennessee Valley Authority (TVA) was a program to develop the resources of the Tennessee Valley Built dams to control floods and help
with shipping, and provided hydro elecetric power to rural Tennessee
Reading Focus Question Reading Focus Question #3#3
What initial actions did Roosevelt take to stabilze the economy? Called a bank holiday, had Congress
enact banking reforms, put into place parts of the New Deal
Beyond the Hundred DaysBeyond the Hundred Days
In November 1933 passed the Civil Works Administration Provided work to 4 million workers Built roads, sewer lines, airports, etc
June 1934 Passes Indian Reorganization Act Limited the sales of Indian Lands Provided assistance for Native Americans
to develop their resources
Trouble for the New DealTrouble for the New Deal
Some reformers felt the New Deal had not gone far enough, others believed it went too far
Huey P. Long, Senator of LA believed the New Deal was too friendly to banks and businesses Instead, he wanted to give every family $5,000
to buy a home plus an income of $2500 per year Would finance this with heavy taxes on the rich
Father Charles Coughlin Catholic priest who once supported
Roosevelt Had a weekly radio show Was critical of banks and businesses Became increasingly extreme and
lost public support Dr. Francis Townsend
Believed the New Deal left out older Americans
Opposition from the Opposition from the CourtsCourts
Was growing concern that the New Deal gave the President too much power
Parts of the NIRA and AAA were destroyed
Reading Focus Question Reading Focus Question #4#4
How did the New Deal run into trouble in Roosevelt’s first term? Liberals thought it didn’t do enough,
conservatives thought it went too far, some portions of the new deal were struck down by the Supreme Court
CST Practice Question
One major criticism of the New Deal was that the programsa. Failed to alleviate unemploymentb. Gave too much power to the executive
branchc. Did not include provisions for banking
reformsd. Ceded too much federal decision-making to
state governments
Answer
One major criticism of the New Deal was that the programsa. Failed to alleviate unemploymentb. Gave too much power to the executive
branchc. Did not include provisions for banking
reformsd. Ceded too much federal decision-making to
state governments
CST Practice Question
Which of the following was an important policy or program under Franklin Roosevelt’s New Deal?a. The Federal Reserveb. Smoot-Hawley Tarriff Actc. Civilian Conservation Corpsd. The National War Labor Board
Answer:
Which of the following was an important policy or program under Franklin Roosevelt’s New Deal?a. The Federal Reserveb. Smoot-Hawley Tarriff Actc. Civilian Conservation Corpsd. The National War Labor Board
Section 2: The 2nd New Deal
Main Idea: A new wave of government initiatives starting in 1935 resulted in some strong successes and stunning defeats for President Roosevelt
Bell RingerThe New Deal did not make the Great
Depression vanish. Yet the sense of forward movement it created did help to generate hope. In the Second New Deal, the government increased its commitment to work-relief programs such as the Civilian Conservation Corps (CCC). The men who worked in federal CCC work camps gained job skills, government sponsored education, lifelong friendships and much more. Their work equipped them with the weapons necessary to cope with life’s problems.
Review Questions
What was the Civilian Conservation Corps?
What do you think was the most important thing that the participants in the CCC got out of it and why?
The Second Hundred Days
Because of the success of the New Deal, Democrats had an easy election in 1934.
By 1935, Democrats held ¾ of all Congressional seats
Supreme Court was dismantling parts of the New Deal
Economy was not recovering as quickly as everyone hoped
Liberals wanted more
In the Spring of 1935, Roosevelt launched The Second New Deal Passed laws extending the
governments supervision of banking, raised taxes for the wealthy, launched new relief programs for those still struggling
Emergency Relief
Emergency Relief Appropriations Act did away with most of the direct payments to the poor
Shifted instead to work for pay The Works Progress Administration
(WPA) was the largest peace-time job program in U.S. History Employed 8.5 million people and a cost of
$11 Billion
WPA workers built roads, subways, airports, even zoos
Worked in offices, schools, museums, and factories
Also funded the work of writers, artists, and composers
Employed a total of ¼ of all unemployed people
Result: getting the opportunity to earn a paycheck instead of get a handout boosted the American spirit
Social Security In August 1935 the Social Security
Act was signed into law. This law created the system of Social
Security, which provided a pension, or guaranteed, regular payment to many people over 65.
This system also created a system of unemployment insurance run by the federal government and the states Provided payments to workers who lost
their jobs while they looked for new work
These new pieces of legislation were direct responses to the criticism Roosevelt had previously faced
Reading Focus Question #1
What were the Key programs in the second Hundred Days? The Works Progress Administration,
Social Security
Reviving Organized Labor
The passage of the NIRA was the first real gains laborers had seen since the early 1920’s
By 1934, Labor unions were consistently losing strikes
Roosevelt was reluctant to intervene Supreme Court struck down portions of
NIRA in the Schechter Case In response to destroying NIRA, Roosevelt
supported the Wagner Act
The Wagner Act aka Labor Relations Act Was stronger than NIRA Outlawed anti-labor actions such as
company sponsored unions Established the National Labor
Relations Board to conduct voting in workplaces to determine the demand for unions by workers
Reading Focus Question #2
How did New Deal Programs help revive organized labor? Established the National Labor
Relations Board, outlawed anti-labor practices, and got workers the right to form unions and bargain collectively
The CIO is Born
AFL (American Federation of Labor) had been in existence as a collective union (many smaller unions that represented the interests of skilled workers)
AFL looked down on unskilled workers most of whom were immigrants
John L Lewis, a miner, took advantage of the opportunities in the early 1920’s to create a new union
His group broke away form the AFL to form the CIO, Committee for Industrial Organization. It later changed its name to the Congress of Industrial Organizations
The GM Sit Down Strike In 1936 GM workers launched a sit down
strike In a sit down strike, workers sit down,
refuse to work, and refuse to leave They relied on people outside of the
factory to bring food, and care for their families
This weakened GM because they couldn’t hire substitute workers or “scabs”
Why not?
GM asked the government for help, but they refused
Company shut off electricity and water Also tried to shut off deliveries, but
this led to riots Shut down cost GM millions of dollars
a week in sales (the strike lasted 6 weeks)
GM eventually gave it This successful strike helped unions
gain power again By the 1940’s ¼ of American
workforce was a member of a union
The Election of 1936
Roosevelt’s proposals when he ran for re-election: Bring electricity to more rural
Americans Had signed the Rural Electrification
Administration (REA) into law to loan money to groups that would expand electricity
Number homes with electricity grew from 10% to 90%
Americans Re-elect Roosevelt
Campaigned on his history of legislation, improvement in the economy, decrease in unemployment
Roosevelt had no serious competition for re-election
Republicans attacked Roosevelt for being too bureaucratic and creating a planned economy
Roosevelt won landed another sliding victory, winning 46 of 48 states
Democrats maintained control of Congress
African Americans switched alliance from Repubican to Democrats
Reading Focus Question #3
What were the key events of the 1936 election? Roosevelt worked hard to win votes,
Republican candidate Alf Landon carried only 2 states, Democrats gained in both houses of Congress & won 26 of the 33 races for governor
A Troubled Year The Court Packing Plan
Roosevelt presented legislation to reorganize the Judicial Branch of the Government
Wanted to give the President the power to appoint judges and expand the court to six justices
Concerns that the President was trying to “pack” the Supreme Court with empathizers
His efforts were unsuccessful
Moving Forward
Farm Tenancy Act was passed Tenant farmers were the poorest
group of farmers because they didn’t even own their own land
This act gave them the opportunity to buy land
In March 1937, Supreme Court supported New Deal legislation that required a minimum wage for workers
In May 1937, it also ruled in favor of the Social Security Act
Recovery in doubt Fall of 1937 there was another drop in
the stock market causing another 2 million more people to lose their jobs
Roosevelt became concerned about a growing deficit
A deficit occurs when the government spends more money than it generates
John Maynard Keyes economic philosophy stated that deficit spending could provide jobs and stimulate the economy
Reading Focus Question #4
Why was 1937 a troubled year for Roosevelt and the Second New Deal? Attempt to reorganize the courts was
controversial, Democrats rebelled, sharp drop in the stock market, 2 million Americans lost their jobs
CST Practice Question
One key difference between the American Federation of Labor and the Committee for Industrial Operation was that the
a. CIO represented the interests of unskilled workersb. AFL represented the interests of unskilled workersc. AFL represented unions organized across broad
industriesd. CIO won every confrontation with American
businesses
Answer
One key difference between the American Federation of Labor and the Committee for Industrial Operation was that the
a. CIO represented the interests of unskilled workersb. AFL represented the interests of unskilled workersc. AFL represented unions organized across broad
industriesd. CIO won every confrontation with American
businesses
CST Practice Question
Social Security represented a major change in the relationship between the federal government and the citizens because it
a. Restructured the federal tax systemb. Set up a national pension and healthcare system for
all American workersc. Provided immediate economic relief in the form of
paid jobs on public works projectsd. Promised a government funded pension and
unemployment insurance for many American workers
Answer
Social Security represented a major change in the relationship between the federal government and the citizens because it
a. Restructured the federal tax systemb. Set up a national pension and healthcare system for
all American workersc. Provided immediate economic relief in the form of
paid jobs on public works projectsd. Promised a government funded pension and
unemployment insurance for many American workers
Section 3: Life During the New Deal
Main Idea: The Great Depression and the New Deal had a deep impact on American culture during the 1930’s
Bell RingerWhen Franklin Roosevelt named Frances Perkins to
be the first woman to be named to serve as the secretary of labor, his critics thought that men would not take orders from a woman. However, Perkin’s tireless effort and great skill soon won many admirers and the grudging respect of her enemies. Perkins played a major role in many New Deal programs and she led the team that created the Social Security system. Perkins served in Roosevelt’s cabinet until after his death in 1945, longer than any other member. In the process, she helped advance the cause of women in American government during a time of social change.
Review Questions
Why did Frances Perkins encounter opposition?
What major policies did Frances Perkins help to shape?
Women in the New Deal Eleanor Roosevelt worked to support her
husband’s programs, but also worked to support women’s issues
Ruth Bryan Owen Served as foreign minister to Denmark
Frances Perkins served as Secretary of Labor Was first woman to head an executive office Helped create the social security system
Roosevelt also appointed women to other leadership positions such as director of U.S. Mint and assistant Secretary of the Treasury
Roosevelt was the first President to appoint women to leadership positions
Challenges for Women
Men were paid more than women in work relief programs
Men had more opportunities for employment
African Americans in the New Deal
Roosevelt appointed the first African-American federal judge, William Hastie
African Americans were appointed to various government officials & became known as the “Black Cabinet”
Black Cabinet served as unofficial advisors to the President
Challenges for African Americans
Discrimination remained in American culture Most tenant farmers were African American;
these were the poorest of the farmers Roosevelt didn’t really adjust African-
Americans in New Deal legislation because he didn’t want to alienate Southern Congressman
Despite this, most African-Americans began to support Roosevelt
Reading Focus Question #1
How did the roles of women and African-Americans change during the New Deal? Offered women and African
Americans hope for an expanded role in public life, they also served in prominent government posts
Telling the Story of the Depression
Dorthea Lange was a photographer that documented the Great Depression
In 1935 she worked on behalf of the Farm Security Administration
Her photos raised awareness of the suffering of the poor
Reading Focus Question #2
• How did artists of the era tell the story of the Great Depression?– Their works depicted the struggles of the
working class and the plight of the poor
Popular Entertainment in the 1930’s
Movies continued to be very popular 80 million of the 127 million people in the
U.S. attended the movies weekly Some movies addressed hardships during the
Great Depression, but most movies were an escape route for Americans
Many movies featured dancing Comedy of the Marx Brothers became
popular First full-length animation films were created
Radios continued to grow in popularity Provided ongoing news and differing views
to millions of Americans Also provided religion, music, sports, and
other forms of entertainment such as the Lone Ranger
When H.G. Wells story War of the Worlds was broadcast, listeners believed the world was under attack from Mars
Spread the popularity of jazz Swing/big band music was also introduced
Sports in the 1930’s
Baseball was the most popular sporting event to attend Babe Ruth and Joe Di Maggio were
famous Lou Gehrig dies in the height of his
career of an unexplained illness Boxing also becomes a popular
sport to watch
Reading Focus Question #3
What forms of entertainment were popular during the Great Depression? Movies, radio, jazz, and swing music
Section 4: Analyzing the New Deal
Main Idea: The New Deal had mixed success in rescuing the economy but it fundamentally changed Americans relationship with their government
Bell Ringer
In 1939 the Daughters of the American Revolution (DAR) refused to let Marian Anderson perform in their Washington D.C. auditorium because she was black. Eleanor Roosevelt and other prominent women resigned from the DAR in protest. The First Lady then arranged for Anderson to sing on the steps of the Lincoln Memorial. Some 75,000 people turned out to hear her. Mrs. Roosevelt’s actions on behalf of Marian Anderson were typical of her efforts to aid African Americans. They also show how constrained the New Deal was in confronting racism, That was one battle the President chose not to fight.
Review Questions
Do you think that Eleanor Roosevelt’s resignation from the DAR was appropriate under the circumstances? Why or Why not?
How did the DAR’s refusal result in a triumph for Marian Anderson?
The Impact of the New Deal
“Take a method and try it. If it fails, admit it frankly and try another. But above all try something.”
AS an immediate effect, the New Deal put $$$ in people’s pockets
Social Security and Unemployment became permanent programs
New Deal was less successful in providing jobs
Reasons why the New Deal wasn’t totally successful
Programs were never popular with big business, hurt business confidence and slowed the pace of recovery
Some argue the New Deal legislation was too timid and didn’t spend enough money to reduce unemployment
Successful long-lasting reforms FDIC restored confidence in the
banks and encouraged deposits SEC helped the public regain faith
in the stock market. Investors today still rely on the SEC
Legacy of thousands of miles of highways, bridges, dams, hospitals, schools, murals, and sculptures
Changing Relationships
Relationship between the American people and the government changed Belief that government could help
businesses and individuals achieve greater financial security
People began to look to the government more often for help
Government becomes much bigger
Reading Focus Question #1
What was the impact of the New Deal on the nation in the 1930’s? Helped poor Americans, less
successful in delivering economic recovery changed relationships between government and its people, government became much bigger
Limits of the New Deal Relief programs gave aid to millions of people,
but the program was never intended to be permanent
Relief programs did not provide aid to all who needed them
Pay scales for workers in relief programs were very low intentionally
Level of government assistance varied state to state
Discrimination was rampant throughout relief programs
Reading Focus Question #2
In what ways was the impact of the New Deal limited? Never reached all the people it was
intended to serve, government sponsored jobs didn’t pay well, permitted discrimination
The End of the New Deal In 1937, Roosevelt’s opponents in Congress
demanded cut taxes, balance the budget, and return power to the states
In 1938 Fair Labor Standards Act was passed establishing a minimum wage
What is a minimum wage? Set the maximum hours for a workweek (44) Required that workers receive compensation
of time and a half for every hour worked over 44
The 1938 Election
Roosevelt tried to influence the congressional election of 1938
Efforts backfired, and Republicans gained seats in the House and Senate, increasing the opponents of the New Deal in Congress
After the New Deal After the 1938, Roosevelt lacked the
support to pass more New Deal style legislature
Attention shifted toward conflict in Europe American factories began to mobilize for
the war effort once again Millions of people returned to work Between the end of 1939 and beginning
of 1940, this mobilization led to the end of the Great Depression
Reading Focus Question #3
How did the New Deal come to an end? Court-packing fight, economic
downturn of 1937-1938, stand-off with Congress
