FDR and the NEW DEALFDR and the NEW DEAL

““The only thing we have to The only thing we have to fear is…. fear itself”fear is…. fear itself”

The Election The Election of 1932of 1932

Prosperity isProsperity isjust aroundjust around the cornerthe corner

I promiseI promise a New Deala New Deal!

                           

INTRO to FDRINTRO to FDR

1. Americans ready for a change

2. Elected with 23 million votes (57% of voting population)

3. More of a quarterback…willing to experiment

The New DealThe New Deal Complete Web: “Impact…”Complete Web: “Impact…” Categorize federal programs: Relief Categorize federal programs: Relief

Recovery or ReformRecovery or Reform Read: WPA article and two letters (the last Read: WPA article and two letters (the last

two letters in the “Letters to Eleanor packet” two letters in the “Letters to Eleanor packet” - Describe the impact of job programs - Describe the impact of job programs individuals individuals

Slide show:Complete ChartSlide show:Complete Chart Video: Develop an understanding of the AAAVideo: Develop an understanding of the AAA Laser Disc: Gather and check info on New Laser Disc: Gather and check info on New

Deal programsDeal programs

THE DUST BOWLTHE DUST BOWL

Causes? Effects?Causes? Effects?

Impact of theImpact of the Depression on the Depression on the American People American People

                           

LEGISLATIVE LEADERSHIPLEGISLATIVE LEADERSHIP

1. THE FIRST 100 DAYS1. THE FIRST 100 DAYS

2. PRESIDENT AND ADVISORS WRITE 2. PRESIDENT AND ADVISORS WRITE MAJOR NEW DEAL LAWSMAJOR NEW DEAL LAWS

3. CHECKS AND BALANCES3. CHECKS AND BALANCES

4. INCREASED POWERS OF PRES4. INCREASED POWERS OF PRES..

                           

New Deal New Deal ThemesThemes

FarmersFarmers

Checks Checks and and

BalancesBalances

Executive PowerExecutive Powerand the Role of Governmentand the Role of Government

LaborLabor

                           

Congress: Congress: Legislates ProgramsLegislates Programs

Judicial Branch: Judicial Branch: Determines ConstitutionalityDetermines Constitutionality

Executive BranchExecutive BranchSuggests LegislationSuggests Legislation

                           

FDR – The Great CommunicatorFDR – The Great Communicator

1. GREAT 1. GREAT COMMUNICATION COMMUNICATION SKILLSSKILLS

2. FIRESIDE CHATS – 2. FIRESIDE CHATS – Connection to the Connection to the peoplepeople

3. PRESS CONFERENCES3. PRESS CONFERENCES

4. NEW ROLES FOR THE 4. NEW ROLES FOR THE FIRST LADY, ELEANOR FIRST LADY, ELEANOR ROOSEVELTROOSEVELT

                           

Between March 9Between March 9thth and June 16 and June 16thth 1933 Congress passed more than 15 1933 Congress passed more than 15

major pieces of New Deal Legislationmajor pieces of New Deal Legislation

The First 100 DaysThe First 100 Days

                           

ReliefRelief RecoveryRecovery ReformReform

National Recovery National Recovery Act, 1933Act, 1933

Home Owners Home Owners Loan Corp, 1933Loan Corp, 1933

Federal Housing Federal Housing Administration, Administration,

19341934

Agricultural Agricultural Adjustment Act, Adjustment Act, 1933 and 19371933 and 1937

Emergency Banking Emergency Banking Act, 1933Act, 1933

Federal Emergency Federal Emergency Relief Act, 1933Relief Act, 1933

Public Works Public Works Administration, 1933Administration, 1933

Works Progress Works Progress Administration, 1935 Administration, 1935

Civilian Conservation Civilian Conservation Corps, 1933Corps, 1933

Tennessee Valley Tennessee Valley Authority, 1933Authority, 1933

Glass-Steagall Glass-Steagall Banking Act, Banking Act,

19331933

Securities Securities Exchange Act, Exchange Act,

19341934

Social Security Social Security Act, 1935Act, 1935

National Labor National Labor Relations Act, Relations Act,

19351935

Fair Labor Fair Labor Standards Act, Standards Act,

19381938

                           

THE NEW DEALTHE NEW DEAL

ReliefRelieffor those sufferingfor those suffering

                           

                           

Closed the nation’s banks Closed the nation’s banks (Bank Holiday)(Bank Holiday)

Bank examiners check banksBank examiners check banks

Sound Banks ReopenSound Banks Reopen

Emergency Banking ActEmergency Banking Act

                           

Civil Works Civil Works AdministrationAdministration

(CWA)(CWA)

Public Works Public Works AdministrationAdministration

(PWA)(PWA)

Created 3 million Created 3 million work relief jobs work relief jobs

repairing roads, parks repairing roads, parks and public buildings; and public buildings; replaced with Works replaced with Works

Progress Progress Administration (WPA)Administration (WPA)

Created jobs on Created jobs on government government projects that projects that

increased worker increased worker buying power and buying power and

stimulated the stimulated the economyeconomy

                           

Civilian Civilian Conservation CorpsConservation Corps

(CCC)(CCC)

1. Provide 1. Provide employment for employment for young men between young men between ages of 18-25 ages of 18-25 conserving natural conserving natural resourcesresources

2. $2.5 million men 2. $2.5 million men participated during participated during programs historyprograms history

Federal Federal Emergency Relief Emergency Relief

AdministrationAdministration

Distributed $500,000 to Distributed $500,000 to states and cities for states and cities for

direct relief and work direct relief and work projects for the projects for the homeless and homeless and unemployedunemployed

                           

Tennessee Valley Authority Tennessee Valley Authority (TVA)(TVA)

1. Regional Development Project In 1. Regional Development Project In SoutheastSoutheast

2. Intended to provide jobs, cheap 2. Intended to provide jobs, cheap electricity, flood control through electricity, flood control through construction of damsconstruction of dams

3. Dams and power plants 3. Dams and power plants government ownedgovernment owned

                           

THE NEW DEALTHE NEW DEAL

RecoveryRecoveryfor the sick economyfor the sick economy

                           

National Industrial National Industrial Recovery ACT Recovery ACT

(NIRA)(NIRA)

Agricultural Agricultural Adjustment Act Adjustment Act

(AAA)(AAA)

1. Sought to control 1. Sought to control overproduction and increase overproduction and increase prices of agricultural prices of agricultural productsproducts

2. Paid farmers to reduce 2. Paid farmers to reduce number of acres they number of acres they planted and livestock raisedplanted and livestock raised

3. funded through a tax on 3. funded through a tax on food processorsfood processors

4. Declared unconstitutional in 4. Declared unconstitutional in 1936 (Butler v. U.S)1936 (Butler v. U.S)

1. Established National 1. Established National Recovery Administration Recovery Administration (NRA)(NRA)

2. Suspended nation’s 2. Suspended nation’s anti-trust lawsanti-trust laws

3. Trade Associations 3. Trade Associations developed codes to developed codes to regulate wages, working regulate wages, working conditions, production, conditions, production, pricesprices

4. Declared 4. Declared unconstitutional (Schecter unconstitutional (Schecter Poultry v. U.S.)Poultry v. U.S.)

                           

Home Owners Loan CorpHome Owners Loan Corp

Refinanced mortgages of Refinanced mortgages of middle income home ownersmiddle income home owners

                           

THE NEW DEALTHE NEW DEAL

ReformReformto prevent another Depressionto prevent another Depression

                           

Glass-Steagall Glass-Steagall Banking ActBanking Act

1. Established 1. Established Federal Deposit Federal Deposit Insurance Corp. Insurance Corp. (FDIC)(FDIC)

2. Insured Bank 2. Insured Bank Accounts up to Accounts up to $5,000$5,000

Social Security Social Security ActAct

1.1. Provided old age Provided old age insurance, insurance, unemployment unemployment insuranceinsurance

2.2. Gave assistance to Gave assistance to dependent children dependent children and the elderly, ill and the elderly, ill and handicappedand handicapped

                           

Securities Exchange ActSecurities Exchange Act

11. Required full disclosure of stock . Required full disclosure of stock offered for saleoffered for sale

2. Established Securities and 2. Established Securities and Exchange Commission (SEC) to Exchange Commission (SEC) to regulate stock marketregulate stock market

3. Gave Federal Reserve Board 3. Gave Federal Reserve Board power to regulate purchase of power to regulate purchase of stock on marginstock on margin

                           

National Labor Relations ActNational Labor Relations Act(Wagner Act)(Wagner Act)

1.Guaranteed Labor Right To Organize1.Guaranteed Labor Right To Organize2. Guaranteed Right to collective 2. Guaranteed Right to collective

bargainingbargaining3. Outlawed unfair labor practices like 3. Outlawed unfair labor practices like

blacklistingblacklisting4. Created National Labor Relations 4. Created National Labor Relations

BoardBoard

                           

CRITICISMS OF CRITICISMS OF THE NEW DEALTHE NEW DEAL::

1. OPPOSE INCREASED GOV’T 1. OPPOSE INCREASED GOV’T ROLE IN ECONOMY (CREEPING ROLE IN ECONOMY (CREEPING SOCIALISM)SOCIALISM)

2. OPPOSE INCREASED TAXATION2. OPPOSE INCREASED TAXATION

3. OPPOSE DEFICIT SPENDING3. OPPOSE DEFICIT SPENDING

4. OPPOSE WELFARE PROGRAMS4. OPPOSE WELFARE PROGRAMS

                           

CRITICISMS OF THE NEW DEAL: CRITICISMS OF THE NEW DEAL: COURT PACKINGCOURT PACKING

1. 1. BUTLER V. U.S.BUTLER V. U.S. & & SCHECHTER V. U.S.SCHECHTER V. U.S.

2. FDR PROPOSES INCREASING SIZE OF 2. FDR PROPOSES INCREASING SIZE OF SUPREME COURT FROM 9 TO 15SUPREME COURT FROM 9 TO 15

3. PROPOSAL RAISES SERIOUS 3. PROPOSAL RAISES SERIOUS CONSITUTIONAL ISSUESCONSITUTIONAL ISSUES

4. CONGRESS REJECTS PLAN (Checks and 4. CONGRESS REJECTS PLAN (Checks and Balances)Balances)

                           

NEW DEAL: COURT CASESNEW DEAL: COURT CASES

The United States vs. The United States vs. Schechter Poultry Corporation (1935)Schechter Poultry Corporation (1935)

The Supreme Court rules the the NRA gave The Supreme Court rules the the NRA gave Congress the power to regulate intrastate Congress the power to regulate intrastate

commerce and violated sep of powerscommerce and violated sep of powers

The United States vs. Butler (1936)The United States vs. Butler (1936)The Supreme Court declares the AAA is The Supreme Court declares the AAA is

unconstitutional on the grounds that unconstitutional on the grounds that agriculture is a local, not an interstate agriculture is a local, not an interstate

mattermatter

                           

SCHECTHER (1935)SCHECTHER (1935)

BACKGROUNDBACKGROUND: Schecther Poultry Company : Schecther Poultry Company bought, slaughtered, and sold chickens only in bought, slaughtered, and sold chickens only in NYS and was charged with failing to observe NYS and was charged with failing to observe minimum wage and hour provisions.minimum wage and hour provisions.

ISSUEISSUE: Does the NIRA (and the President) : Does the NIRA (and the President) have the power to regulate certain aspects of have the power to regulate certain aspects of commerce during the Depression?commerce during the Depression?

OPINIONOPINION: Congress, not the President has the : Congress, not the President has the power to regulate commercepower to regulate commerce

                           

BUTLER (1936)BUTLER (1936)

BACKGROUNDBACKGROUND: The 1933 AAA implemented : The 1933 AAA implemented a tax on the processing of agricultural a tax on the processing of agricultural commodities.commodities.ISSUEISSUE: Does the U.S. Congress exceed its : Does the U.S. Congress exceed its power to tax and spend in order to provide for power to tax and spend in order to provide for the general welfare of the US?the general welfare of the US?

OPINIONOPINION: The AAA is unconstitutional : The AAA is unconstitutional because it attempted to regulate and control because it attempted to regulate and control agricultural production, an areareserved to the agricultural production, an areareserved to the statesstates