FDR AND THE NEW DEAL His Administration Represents Change His disability - Polio Eleanor Roosevelt-Very active 1 st Lady Appoints Frances Perkins to Cabinet1 st Woman People Loved Eleanor Was a strong political force in the White House Took bold stances in favor of Civil Rights Roosevelt got to work Began giving weekly fireside chats (radio addresses) to increase people s confidence We have nothing to fear but fear itself Roosevelts First 100 Days FDR pushes legislation through Congress which becomes basis of New Deal Federal government provides immediate relief Roosevelts first official actions: Bank Holiday March 6: Banks are closed and will remain closed until they pass inspections. March 9 th - Emergency Banking Bill- all banks that can meet their financial obligations could reopen and those that couldnt wouldnt March 12 th -Delivered 1 st fireside chart (30 in total) to explain the banking situation. It is safer to put your money in a reopened bank than under the mattress. As banks reopen Americans lined up to redeposit their money In one week the nation, which had lost confidence in everything and everybody, has regained confidence in the government and in itself Walter Lippmann on the impact of the new Democratic government, 1932. New Deal and the 3 Rs Relief Providing direct aid in the form of money, food, clothes, shelter, etc. Recovery Job programs to put people to work Reform Changes in how the economy worked Response to New Deal Roosevelt gets attacked: Liberals thought he didnt do enough Conservatives, especially business interests, thought he did too much Huey Long- Share Our Wealth Program Father Charles Coughlin-called for nationalization of banks and utilities-heavy tax for wealthy and guarantee income for all Dr. Frances Townshend-Anyone over 60 gets $200 a month but had to retire Power of the federal government grew Definitely not laissez faire 2 nd New Deal Historians refer to the new initiatives in the year of 1935 more radical, pro-labor and anti- business than the first new deal ( ) Social Security Act Works Progress Administration Resettlement Administration Tax increase for wealthy Inheritance tax High taxes on corporations The Supreme Court Supreme Court said programs were unconstitutional These attacks worried Roosevelt, prompting him to take action to swing the Court in his favor FDRs Court Packing Scheme FDR proposed a bill to Congress which would allow the President to appoint extra Justices to the Supreme Court anytime a Justice had served 10 years or had passed the age of 70 6 new justices almost immediately, Congress refused to expand the Court Alphabet Soup Many of the laws passed are known by initials, jokingly known as New Deal Alphabet Soup. Civilian Conservation Corps (CCC) Put young men to work Built roads, developed parks, planted trees, and helped in soil erosion and flood-control projects Tennessee Valley Authority (TVA) Built dams on Tennessee River Provided jobs and electricity Securities and Exchange Commission (SEC) Regulated the stock market Federal Deposit Insurance Corporation (FDIC) Guaranteed insurance for people s money People began to put their money back into banks Fair Labor Standards Act (FLSA) Set maximum work hours and minimum wage Social Security Act (SSA) Retirement supplement for people over 65 Unemployment compensation system Aid to families with dependent children and the disabled National Labor Relations Act (NLRA) (Wagner Act) Protected the rights of workers to join unions and bargain together for contracts Prohibited unfair business practices Works Progress Administration (WPA) Built or improved nations highways, dredged rivers and harbors, and promoted soil and water conservation. Election of 1936: Roosevelt Wins Election of 1940 : Roosevelt Wins Election of 1944 : Roosevelt Wins FDR Breaks with Precedent Washington had established the precedent that presidents should only serve two terms. Roosevelt ran and won 4 times. 22 nd Amendment (1947) made an official two term limit. Deficit Spending Government spends money it doesnt have John Maynard Keynes argued that deficit spending was needed to end depression Pump Priming People working on public project Money for consumers People will buy more goods Stimulating the economy US as a Welfare State FDRs New Deal programs also began to shift spending priorities in the budget As Americans became used to the idea of government assistance for the needy, more and more of the federal budget was spent on public welfare programs Changing the Nature of Presidency Increased power of the President and the executive branch Make mass media, an essential tool in advertising and promoting policies Expanded role of the President in managing the economy and social policy Won 3 rd and 4 th term, leading to 22 nd Amendment, which limited Presidents to two consecutive terms. Causes of the Great Depression: Failure of farms and business Stock market crash Sharp decline in prices and production Failure of banks Unemployment and low wages Homelessness Drought, crop failures, and Dust Bowl Effects of the New Deal: Millions employed in new govt programs Banking system is stabilized Regulated stock market restores confidence Social-insurance program aid elderly and poor Agricultural subsidies help farmers Government takes more active role in economy Fireside Chat - FDIC My friends, As you know, we are currently in the midst of a Depression. The American People have lost faith in our banks and businesses, and are starting to lose hope that things will get better. I assure you, this crisis, just like every other difficulty our Great Nation has encountered, will be overcome. What is the main point of the 1 st paragraph? Fireside Chat - FDIC Banks are the cornerstone of capitalism and growth. The money you give them is not held in a vault, but loaned out. If people withdraw their money from the banks, there is no way for entrepreneurs and business owners to get the money they need to start and expand their businesses. What is the main point of the 2 nd paragraph? Fireside Chat - FDIC Previously, the money you have put in banks has been vulnerable. The panics that have swept our country have forced many banks to close, destroying the savings of countless families. What is the main point of the 3 rd paragraph? Fireside Chat - FDIC This will never happen again. I have just created the Federal Deposit Insurance Corporation, the FDIC. From now on, the money you deposit into banks is guaranteed to be there by the Federal Government, meaning that a bank closing will not destroy your savings. There will never again be a need to pull your money out of a bank for fear of losing it. Return your money to the banks without fear of losing it, and let them loan it out to people working to expand our economy. The growth you will see will help What is the main point of the 4 th paragraph? Fireside Chat - FDIC The power to end this Depression is in your hands. Have faith in our banks, and we will all be rewarded. What is the main point of the last paragraph? Your Fireside Chat (LEFT SIDE) For your left side you will create your own fireside chat You will firstly come up with your own New Deal Program and an abbreviation for your program. Then you will create a fireside chat that includes a greeting and at least 2 paragraphs.