FDR Born in 1882 5 th cousin of Theodore Roosevelt In 1921 he contracted polio and lost the use of his legs Paralytic Illness Promised Americans a New Deal in 1932 but was vague on the details ID: 786540
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Slide1
FDR, The New Deal, and the Second Deal
Slide2FDR
Born in 1882, 5
th
cousin of Theodore Roosevelt
In 1921 he contracted polio and lost the use of his legs. (Paralytic Illness)
Promised Americans a “New Deal” in 1932 but was vague on the details
He received 57% of the American people’s votes and was easily swept into office.
Slide3New Deal
Roosevelt conceived of the New Deal as an alternative to Nazism and unregulated capitalism.
Hoped to reconcile democracy, individual liberty, ad economic planning.
The view of FDR’s cabinet: Large firms needed to be managed and directed by the government
“This nation asks for action and action now.”
Slide4The Banking Crisis
Taking office in 1933 the banking system is on the verge of collapse.
Bank funds lost stock market value
Panicked depositors withdrew their savings
Banks had to close their doors from all the withdrawals.
Slide5Banking Crisis Continued
March 1933, Roosevelt declares a “
bank holiday
”
Temporarily closed banks, halted operations
March 9, 1933 – Creates the
Emergency Banking Act
, providing funds to shore up banks
The Glass-
Steagall
Act:
kept commercial banks from getting involved in the stock market.
Established the
FDIC
(insurance for individual depositors)
Outcome
: These acts help rescue the financial system and increased government control over the banks.
Slide6The National Recovery Administration (
NRA
)
Part of the first “hundred days” of the Roosevelt administration.
Work with groups of business leaders to establish industry codes that set standards for:
output,
prices
working conditions
Outcome: NRA is another step toward government intervention in the economy.
A step away from an unrestrained economy.
Slide7Slide8Government Jobs
March 1933 (Part of the “hundred days”)
Civilian Conservation
Corps (
CCC
)
Gave unemployed young men work projects
Forest Preservation, wildlife preserves
Program ends in 1942, helped 3 million young men
May 1933 (Part of the “hundred days”)
Federal Emergency Relief Administration (
FERA
)
Made grants to local agencies to help the impoverished
Created temporary jobs
Roads, bridges, infrastructure
Slide9Slide10Public Works Projects
Public Works Administration (PWA)
Used 3.3 billion to build:
Roads
Schools
Hospitals
Civil Works Administration (CWA)
Employed more than 4 million people by 1934
Built, highways, tunnels, courthouses, and airports
Roosevelt dissolved the CWA after high costs and public complaints about creating a class of people dependent on government jobs.
Slide11New Deal and Agriculture
Agricultural Adjustment Act
“Hundred Days” policy initiative
Attempted to increase farm prices, paid farmers not to plant more crops
6 million pigs were ordered to be slaughtered
Succeeded in raising farm prices
Benefits flowed to land owners
NOT TENANTS
Slide12New Deal and Housing
250,000 homes in 1932 were foreclosed
Millions of Americans lived in slums
Roosevelt has the government enter the housing market.
Security of a home is a fundamental right
Federal Housing Administration (
FHA
)
Insured millions of long-term loans for private banks
Slide13New Deal Success?
The New Deal transforms the role of government.
Provide economic relief and security
Constructed numerous public facilities
Relief for millions
A set of experiments, some worked, some did not
The New Deal did not end the Great Depression
20% of the workforce (10,000,000 Americans) was unemployed in 1934
Slide14New Deal Success?
The Court and the New
Deal
Controlled by conservative Republican judges
Roosevelt is a Democrat
The NRA is unanimously voted unconstitutional
The First New Deal starts to ground to a halt
More pressures outside of Washington D.C. propel the administration to newer and more radical policies.
To be Continued………
Link
pick up at 10:00, stop at 17:00
Slide15The Second New Deal
Slide16The Second New Deal
Democrats gain seats in the midterm elections in 1934
Gives Roosevelt the confidence to launch the Second New Deal in 1935
New Dealers believed that the government should focus less on business recovery now and more on redistribution of national income.
Slide17Features of the Second New Deal
New taxes on the large fortunes and corporate profits.
Response to Huey Long’s “Share our Wealth Campaign”
Created the Rural Electrification Agency (REA)
Helped small farmers reduce soil loss
Slide18The Works Progress Administration
Established in 1935
Hired 3 million Americans until it ended in 1943.
Accomplishments of the WPA:
Constructed thousands of public buildings and bridges
Added murals to their construction
Built more than 500,000 miles of road
Built 600 airports
Stadiums, sewage plants, and swimming pools were also built
Employed many out of work white collar workers and professionals
Slide19WPA and
Wagner Act
Promoting the arts was the most famous WPA project.
Hundreds of artists created murals on buildings
Writers produced local histories and guidebooks
Also recorded the histories of hundreds of former slaves
First glimpse of live music and theatre for many Americans
Wagner Act:
empowered the National Labor Relations Board to supervise elections of union reps
Outlawed “unfair labor practices” I.E. firing/blacklisting union organizers
Slide20Social Security
Social Security is the centerpiece of the Second New Deal in 1935.
Concept
: the national government has a responsibility to ensure the material well-being of ordinary Americans.
System of:
unemployment insurance,
old age pensions
Aid to the disabled
Elderly poor
Families with dependent children
Slide21Social Security Continued
The U.S. would now supervise a permanent system of social insurance.
Rather than just temporary relief
Launches the American version of the Welfare State
Income assistance
Health coverage
Social service
Slide22Social Security Continued
Represented a radical transformation of federal government
The question changes:
Pre 1930s: Whether government should get involved
After the New Deal: How should government intervene in the economy
Government assumes responsibility for
A living for Americans
Protection against economic and personal misfortune
Limitations: Domestic Agricultural workers are not covered
I.E. unmarried women and non-whites
Slide23The Election of 1936
Working-class voters provided the majority of the Democratic Party
A fight for the possession of “the ideal of freedom
FDR insists there is a threat posed to freedom by large corporations
Argues this is the main issue of the election
FDR’s opponent is Alfred Landon
Denounces the New Deal programs and Social Security
Landon loses in a landslide
FDR wins with a voting coalition of union workers, southern whites, and northern blacks
Slide24The Court Fight
Roosevelt proposes the President be allowed to appoint a new justice for each one on the court over the age 70
Six of the nine justices were over the age 70
FDR’s aim is to change the balance of power
Congress rejects the plan
FDR’s aim ultimately succeeds
Justices fear future “court packing”
The conservative court starts supporting economic regulations by federal and state governments
Slide25End of the Second New Deal
United States Housing Act, 1937
Build houses for the poorest Americans
Fair Labor Standards Bill
Banned goods produced by child labor from interstate commerce
Sets a 40 cent minimum wage
Required overtime pay for 40+ hour workweeks
Sets federal regulations for wages/working conditions
Slide26End of Second New Deal Continued
1936: economic conditions are improving
FDR reduces the federal funding for farm subsidies
WPA work relief is cut
1937: The results of the federal cuts is disastrous
Unemployment was 14% at the end of 1936
Unemployment rose to 20% at the end of 1937
Keynesian economics takes hold
John Maynard Keynes
Challenges the need for balanced government budgets
Slide27John Maynard Keynes
Large scale spending by the government is necessary during downturns.
Sustains purchasing power and stimulates the economy
It is necessary to maintain large scale spending during economic downturns
Even if it requires deficit spending
Deficit Spending
: Spending more than the government takes in.
Slide28Government Planning for the Great Depression
New
Deal, 1933-1934:
Economic
Recovery
Second
New
Deal, 1935-1936:
Economic
redistribution
Now, 1937-1938:
Public
Spending to combat unemployment and stimulating economic growth
1937-1938 ends the Second New Deal