FDR and the New Deal

“The only thing we have to fear is fear itself” March 1933

1933 America • High unemployment • Bank failures • poverty • Hunger in shantytowns • “Dustbowl”

FDR “New Deal” http://www.youtube.com/v/amNpx QANk0M

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

FDR’s first “100 Days” 1. Closed the banks for 4 days – “Emergency Banking Act” 2. “Fireside Chats” 3. Slash government spending – “The Economy Act” 4. Amendment 21 – repeal Prohibition!

http://www.youtube.com/v/yhB7Ua Mn0IY&feature=related

The New Deal • The creation of “Alphabet Agencies”

Agricultural Adjustment Act Civilian Conservation Corps Tennessee Valley Authority Public Works Administration

John Maynard Keynes • if the amount of money being saved exceeds the amount being invested – which can happen if interest rates are too high – then unemployment will rise

Keynesian Economics • Government intervention in the economy

Results?

• Unemployment remained high, but decreased greatly through his term • restored hope and self-respect to tens of millions of desperate people • built labor unions • upgraded the national infrastructure • Saved capitalism instead of nationalizing banks and railroads

FDR’s popular appeal • All letters and phone calls to the White House were answered • Fireside Chats brought the President into the American family’s home • Through most of his 1 st term, Americans were unaware of his disability

The negative side…

The Agricultural Adjustment Act

Farmers paid subsidies NOT to plant part of their land AND to kill excess livestock = raised value of goods Tenant farmers and sharecroppers were hit the hardest The drought of 1933 - 1935

New Deal Opponents

Huey “Kingfish” Long

“Share Our Wealth” Against big banking Put a cap on personal fortunes Guaranteed minimum income per family

New Deal Opponents

Charles Coughlin

Early supporter of FDR Attacked communism and socialism Sympathetic to Hitler and antisemitism

New Deal Opponents

Dr. Francis Townsend

Called for greater social security reforms that FDR would offer

New Deal Opponents

Supreme Court

Struck down the NRA Threatened other programs as “unconstitutional”

New Deal Opponents

Employers, Banks, Republicans

Relief is a waste of taxes Communist form of Government!

http://www.youtube.com/v/qqt7b9ve Fo8&feature=related