Franklin D Roosevelt and the New Deal Redefined Democracy Political Rights Economic Security Social Justice Hoovers Downfall l assez faire policies b elieved in a balanced national budget ID: 763674
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Franklin D. Rooseveltand the New Deal Redefined Democracy:Political Rights Economic Security Social Justice
Hoover’s Downfalll assez-faire policiesbelieved in a balanced national budgetseen as a “do-nothing president” Americans turn against him: Bonus Army & Hoovervilles
Franklin D. Roosevelt Americans see him as man of action, strong leaderFriendly, approachable, confidentUsed the press to advantageOpen to new ideasTwo-term governor of New YorkCousin of Teddy RooseveltResults: landslide victory for Democrats (both presidency and Congress)
FDR vs Hoover 1932 Election
The “Brain Trust”- FDR worked with a group of experts to create New Deal Program - This group of experts (professors, lawyers, journalists, social workers ) became known as the “Brain Trust”
FDR Assumes the Presidency March 1933: country is virtually leaderless, banking system has collapsed20th Amendment (Feb. 1933) moved presidential elections from March to January (effort to fix “lame duck” period)FDR Inaugural address: “The only thing we have to fear is fear itself….”
3 Goals of the New DealRelief : immediate help for the needy, jobs for the unemployed, protection for farmers from foreclosureRecovery: get the economy moving againReform: regulate banks, abolish child labor, conserve farm lands
First Hundred DaysMarch 9 – June 16, 1933 Congress passed more than 15 major pieces of New Deal legislationSignificantly expanded federal government’s role in the nation’s economy
New Deal Programs: Alphabet SoupRelief: short-term, get people through until economy recoversBank Holiday: closed all banks; could not re-open until government inspectors declared bank sound Federal Emergency Relief Act (FERA)Civilian Conservation Corps (CCC)Works Progress Administration (WPA)
RecoveryNational Recovery Administration: asked businesses to voluntarily follow codes that set standard prices, production limits, minimum wages Agricultural Adjustment Acts: - first AAA: gov. paid farmers to plant fewer crops - second AAA: gov. bought farm surpluses, stored in warehouses until prices went up
Reform1933: Federal Deposit Insurance Corporation (FDIC): insured deposits so people would not lose their money if bank failed 1933: Tennessee Valley Authority (TVA): built government-owned dams to control flooding, bring electricity to poverty-stricken Tennessee River Valley1934: Securities and Exchange Commission: regulate stock market to prevent fraud and another crash1935: Social Security Act: gave workers unemployment insurance, pensions, insurance to families if workers died early
Fireside chats – radio talks about issues of public concern; explained New Deal; Americans felt like FDR was speaking directly to them; gave them hope and confidence in leadership
Prohibition Repealed - 193321st Amendment: ends Prohibition -government can collect taxes on liquor, use it to help national economy
Concerns About the New Deal - policy of deficit spending (spending more money than government receives in revenue)- FDR felt this was a necessary evil that had to be used to help fix economic crisis- supported by British economist John Maynard Keynes - opposite of laissez-faire
Criticisms of Conservative OpponentsAmerican Liberty League said New Deal violated rights of individuals and propertyadded to national debt wasted money on relief and encouraged idlenessGave the president too much power
FDR Opponents: Senator Huey Long (Louisiana) planned to run for presidentAdvocated Share-Our-Wealth plan guaranteed annual income of at least $5,000 for every Americanfinanced by confiscating wealth of people who made over $5 million per yearSlogan: “Every Man a King!”Very popular – 1935 claimed 7.5 million members of Share-Our-Wealth clubsKilled by Dr. Carl Weiss at a rally
1936 Election
Greatest Threat to New Deal: US Supreme Court1935 & 1936 - National Industrial Recovery Act (NIRA) & Agricultural Adjustment Act (AAA) ruled unconstitutional (NIRA = gives president power to regulate businesses that operate within states) - Supreme Court rules that Congress cannot give presidents more power than the Constitution gives them (even during national emergencies)
FDR Attempts to Protect New Deal FDR afraid Supreme Court might rule that other New Deal programs are unconstitutionalHe tries to protect New Deal programs by: 1937: Court-Packing Scheme - plan says presidents can add a new Justice for every Justice over 70 ½ yrs old - would increase court from 7 members to 15 - FDR would have been able to add SIX new Justices
Legacy of New Deal on GovernmentResponsibilities of government: -health, welfare, security, & protection & education of citizens-make sure national economy runs smoothlyExpansion of democracy:-concept of democracy now includes economic security & social justice in addition to political rights Role of government: -more involvement in citizens’ lives; more regulations, increased taxes to pay for government programs