The New Deal (s)

Chapter 18

Major Themes

• • • Expansion of the Federal Government's power The New Deal: Relief, Reform, Recovery Changes in the relationship/roles between the Federal Government and the People.

Franklin Delano Roosevelt

• • • • Grew up very privileged – “Traitor to His Class” H.W. Brands Graduated from Harvard/Columbia Law School Contracted Polio at 39 – Helped found the March of Dimes Governor of New York 1929 1932

Election of 1932

   Americans view FDR as energetic, optimist, and a leader Franklin Delano Roosevelt (FDR) elected president on his promises of a more proactive federal government FDR Win’s 88.8% of electoral vote 57.42% of popular vote (Hoover 11.1% electoral, 39.64% popular)

The first 100 Days

“The country needs bold persistence and experimentation. Above all else…try something” • •   The New Deal : FDR’s program for combating the Depression – Relief, Recovery, Reform immediately starts sending bill after bill to Congress – Congress passes 15 major pieces of legislation Emergency Banking Relief Act – closed all banks for investigation. Allowed honest ones to reopen Fireside Chats  – radio broadcasts where FDR talks directly Americans; explains his initiatives “The only thing we have to fear, is fear itself.”

Reform

 Security and Exchange Commission (SEC) – regulated stock exchange and prevented fraud  Glass-Steagall Act – separated commercial banking from investment banking  Federal Deposit Insurance Corporation (FDIC) – provided government insurance for bank deposits up to a certain amount

Relief

• • • • • Economic conditions prompted government intervention to create jobs by instituting new programs Tenessee Valley Authority (TVA) – brings electrical power to poverty-stricken rural areas of Tennessee, Mississippi, Alabama and other states; also provided jobs to the area.

Civilian Conservation Corps(CCC) – Offered young men jobs in national forestry services Public Works Administration (PWA) – Federal relief agency, which initiated construction projects to build highways, dams, sewer systems, and other gov. facilities.

Civil Works Administration (CWA) & Works Progress Administration (WPA) – Hired workers directly and put them on gov payroll

Relief/Reform

Farming  Agricultural Adjustment Administration (AAA) : paid farmers not to grow food to raise crop prices  Killed livestock to raise meat prices  Large commercial farmers mostly benefitted  Small farmers, many poor black and white sharecroppers hurt by program

Reform

• Industry  National Industrial Recovery Act (NIRA)  suspended anti-trust laws  businesses, labor, and government set rules  National Recovery Administration (NRA)  ran the program set up by the NIRA  Businesses that agreed to rules were given the Blue Eagle to show participation

Opposition from Right

• • Unemployment still high FDR gaining opposition, especially b/c of his deficit spending – Keynesian economics

• Opposition from the left Huey Long   (D) LA Senator Populist / Boss of political machine Most serious threat; believed New Deal hadn’t gone far enough  Attacked the rich  Established 27,000 “Share Our Wealth ” clubs  Harms” American Dream”  Assassinated 1935

Opposition

Father Coughlin  Populist; Popular radio show  Called for heavy taxes on wealthy and nationalization of banking system • Dr. Francis Townsend The Townsend Plan  Proposed federal government pay pension of $200 to every citizen over age 60  Free up jobs  Elderly rallied to Townsends side  Both men were threatening as a possible 3 rd party, which would assure a Republican victory

The Second New Deal

• •  Second New Deal launched to speed up recovery Works Progress Administration (WPA)  Employed workers in public works projects (roads, dams, airports, etc.)  Artists, Actors & musicians employed Social Security Act  Provided financial security for older Americans, unemployed workers, modest welfare payments  Workers earned right to receive benefits through payroll tax

Unions

• • • 1935 Congress passes the Wagner Act – Guarantees workers the right to bargain and organize – Binding arbitration: dissatisfied union members could take their complaints to a neutral 3 rd party The Committee for Industrial Organization (CIO) – organized labor where it did not yet exist especially in auto and steel industries Sit-Down Strikes – workers stop working but refuse to leave the factory

Constitutional Issues

• • Butler v US – Ruled unconstitutional because it “…is a statutory plan to regulate and control agriculture production, a matter beyond the powers delegated to the federal government” Schechter v US – “sick chicken case” – Schechter brothers violated NIRA’s Live Poultry Code – Court ruled the Constitution did not allow Congress to delegate its powers to the executive branch; ruled NIRA codes unconstitutional

Constitutional Issues

• Court-Packing! – FDR upset that courts keep shooting down New Deal legislation – FDR sends Congress a bill that would increase the number of justices, and allow the president to appoint an additional Justice, up to a maximum of six, for every member of the court over the age of 70 years and 6 months – Hilarity ensued

Recession

• Roosevelt Recession  Output levels rose to pre-Depression highs, everyone thought the Depression was coming to an end  1937 Roosevelt makes slight cuts to some New Deal Programs  Unemployment surged  Proof that New Deal Legislation was beneficial?

Legacy

     Late 1930’s saw more resistance to FDR from Republicans and Southern Democrats New Deals had limited success in dealing with Depression Federal government's powers expanded enormously Broker State – US government working out conflicts between different groups Safety Net – safeguards and programs that protected Americans from economic disaster