FDR & the New DealFDR & the New DealChapter 14Chapter 14

BackgroundBackground

Born wealthyBorn wealthyMarried his distant cousin Eleanor who Married his distant cousin Eleanor who introduced him to a world he had never seenintroduced him to a world he had never seenTR led Eleanor down the aisle at their marriageTR led Eleanor down the aisle at their marriageServed as NY state senatorServed as NY state senatorAsst Sec of the NavyAsst Sec of the NavyGot polio in 1921Got polio in 1921Became governor of NY in 1928Became governor of NY in 1928As governor when the GD began he became As governor when the GD began he became well known for his innovative relief measureswell known for his innovative relief measuresIn 1932 he was elected presidentIn 1932 he was elected president

Taking OfficeTaking OfficeUnlike Hoover who was reluctant to Unlike Hoover who was reluctant to institute direct relief programs, this was a institute direct relief programs, this was a major goal of FDRmajor goal of FDRFDR filled his gov with Repub, Democrats, FDR filled his gov with Repub, Democrats, liberals & conservativesliberals & conservativesThis select team, known as the This select team, known as the BrainBrain TrustTrust, met before he assumed office and , met before he assumed office and developed the New Deal developed the New Deal This was a program designed to alleviate This was a program designed to alleviate suffering of the GD by focusing on 3 suffering of the GD by focusing on 3 areas:areas:(1) Relief (2) Recovery & (3) reform(1) Relief (2) Recovery & (3) reform

First Hundred DaysFirst Hundred Days

Period of intense legislation – 15 major Period of intense legislation – 15 major pieces of New Deal legislation passed by pieces of New Deal legislation passed by CongressCongress

Both Houses of Congress had democratic Both Houses of Congress had democratic majoritiesmajorities

These laws & others that followed would These laws & others that followed would significantly expand the role of gov’t.significantly expand the role of gov’t.

Bank CrisisBank Crisis

When FDR took office there was a banking crisisWhen FDR took office there was a banking crisis

One of his 1One of his 1stst actions is to ask Congress to pass actions is to ask Congress to pass the Emergency Banking Relief Act-partial bank the Emergency Banking Relief Act-partial bank holidayholiday– If banks were sound they could openIf banks were sound they could open– If they were insolvent, unable to pay debts, they If they were insolvent, unable to pay debts, they

would remain closedwould remain closed– Those that needed some relief would receive gov Those that needed some relief would receive gov

loansloans

This revived public confidence, people deposited This revived public confidence, people deposited funds and the bank crisis was overfunds and the bank crisis was over

Bank & Finance ReformsBank & Finance Reforms

Glass-Steagall Banking Act Glass-Steagall Banking Act Prohibited banks from investing savings in Stock Prohibited banks from investing savings in Stock

MarketMarketEstablished Federal Deposit Insurance Corp (FDIC) Established Federal Deposit Insurance Corp (FDIC)

to safeguard deposits which restored faith in banksto safeguard deposits which restored faith in banksTruth in Securities ActTruth in Securities Act All info about stocks must be accurately disclosedAll info about stocks must be accurately disclosedSecurities & Exchange CommissionSecurities & Exchange Commission

To prevent manipulation of the stock market by To prevent manipulation of the stock market by “rigging” the market with insider info“rigging” the market with insider info

New Deal Goal #1: Relief to UnemployedNew Deal Goal #1: Relief to Unemployed

Fed’l Emergency Relief Adm (Fed’l Emergency Relief Adm (FERAFERA) was ) was passed by Congress with $500m to passed by Congress with $500m to distributedistribute– Direct relief of food, clothing & cash to needyDirect relief of food, clothing & cash to needy

Critics of this program, giving out the Critics of this program, giving out the doledole (gov charity) felt it broke down people’s (gov charity) felt it broke down people’s self esteem & will to workself esteem & will to workFDR then proposed jobsFDR then proposed jobs– Civilian Conservation Corps (Civilian Conservation Corps (CCCCCC) employed ) employed

approx 3m men worked to build roads, trails & approx 3m men worked to build roads, trails & improve nat’l park facilitiesimprove nat’l park facilities

– See pages 455-456See pages 455-456

Civilian Conservation CorpCivilian Conservation Corp

Civilian Conservation Corps BarracksCivilian Conservation Corps Barracks

Civilian Conservation CorpsCivilian Conservation Corps

Public Works Adm –More JobsPublic Works Adm –More Jobs

$3.3 billion to carry out public projects $3.3 billion to carry out public projects such as:such as:– SchoolsSchools– DamsDams– Sewage SystemsSewage Systems– Improving highways, gov bldgsImproving highways, gov bldgs

This provided employment as well as This provided employment as well as stimulate the economystimulate the economy–

Public Works AdministrationPublic Works Administration

Public Works AdministrationPublic Works Administration

National Industrial Recovery ActNational Industrial Recovery Act

Purpose was to promote recovery by Purpose was to promote recovery by establishing codes for fair practice by establishing codes for fair practice by interrupting the trend of wage cuts, falling interrupting the trend of wage cuts, falling prices & layoffs.prices & layoffs.

Govt could not force businesses to adhere Govt could not force businesses to adhere to industry standards so they launched to industry standards so they launched publicity campaignpublicity campaign

This was known as the This was known as the Nat’l Recovery ActNat’l Recovery Act

Those that complied displayed the NRA Those that complied displayed the NRA signsign

Agricultural Adjustment AdminAgricultural Adjustment AdminPurpose was to help farmers by raising Purpose was to help farmers by raising agric prices by cutting productionagric prices by cutting productionGov paid farmers a Gov paid farmers a subsidy subsidy to reduce to reduce agric output to allow prices to riseagric output to allow prices to riseBad timing – when AAA began farmers Bad timing – when AAA began farmers had already planted fields – to adhere to had already planted fields – to adhere to the program they had to plow under those the program they had to plow under those fields and kill livestockfields and kill livestockLed to criticism because they were Led to criticism because they were destroying crops while many Americans destroying crops while many Americans were hungrywere hungry

Tennessee Valley AuthorityTennessee Valley Authority

Built dams along Tennessee River to Built dams along Tennessee River to create hydroelectric power.create hydroelectric power.

Enriched agricultureEnriched agriculture

Promoted tourismPromoted tourism

Provided electricity to 8 statesProvided electricity to 8 states

FDR and the PeopleFDR and the People

Fireside chats became frequent radio Fireside chats became frequent radio broadcastsbroadcasts

FDR explained his programs in simple FDR explained his programs in simple languagelanguage

Held regular press conferencesHeld regular press conferences

Skillful communication restored hope & Skillful communication restored hope & faithfaith

Eleanor’s InfluenceEleanor’s Influence

One of the most active first ladies everOne of the most active first ladies ever

Became FDR’s “eyes and ears”Became FDR’s “eyes and ears”

Embraced many liberal (progressive) Embraced many liberal (progressive) causes such as:causes such as:– Womens Trade Union LeagueWomens Trade Union League– League of Women’s VotersLeague of Women’s Voters– Ending child laborEnding child labor– Promoting better racial relations (Marion Promoting better racial relations (Marion

Anderson incident) Anderson incident)

EvaluationEvaluation

How successful was FDR in each of his How successful was FDR in each of his goals?goals?

ReliefRelief

RecoveryRecovery

ReformReform

The EndThe End