The Hundred Days■When FDR took over in 1933, the

U.S. economy was on the brink of collapse:–Unemployment was at 25%–38 states had total bank failure

■FDR requested from Congress broad executive power to begin his “New Deal” program of economic relief, recovery & reform

FDR asked for “broad executive power that would be given to me if we were in

fact invaded by a foreign foe.”

“Let me assert my firm belief that the only thing we have to fear is fear itself;the only thing we have to fear is fear itself; nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert

retreat into advance.”

The Hundred Days■In his 1st hundred days, FDR

began his 1st New Deal (1933-35)■FDR’s 1st order of business was

to restore confidence in banking: –Declared a 4-day bank holiday:

closed or funded weak banks & opened new gov’t-aided banks

–Glass-Steagall ActGlass-Steagall Act created the FDIC which guaranteed all bank deposits up to $5,000

Banks were regulated (not nationalized); the economic system was reformed

(not drastically changed)

Emergency Banking Act of 1933

Now, the FDIC insures deposits up to $250,000

The Hundred Days ■The greatest success of the First

New Deal was its ability to offer relief to unemployed citizens via the Reconstruction Finance Corps

–Modest relief checks were doled to 15% of Americans

–Federal Emergency Relief ActFederal Emergency Relief Act (FERA)(FERA) pumped $500 million into state welfare programs

The Hundred Days■Relief efforts of the First New Deal

created more “alphabet agencies”

–Civilian Conservation Corps Civilian Conservation Corps (CCC)(CCC) employed urban men

–Civilian Works Admin (CWA)Civilian Works Admin (CWA) hired 4 million men & women

–Created the Public Works Admin Public Works Admin (PWA)(PWA) to build public roads, bridges, & buildings

CCC workers paved roads, planted trees, built bridges

The Hundred Days ■The National Industrial Recovery National Industrial Recovery

Act (NIRA)Act (NIRA) was the 1st attempt at economic recovery:–Created the National Recovery National Recovery

Admin (NRA)Admin (NRA) set max hours & minimum wages for workers & stimulated industry by fixing prices & setting production limits

■Agricultural Adjustment AdminAgricultural Adjustment Admin (AAA)(AAA) subsidized farmers

Additional attempts to stimulate the economy include taking the U.S. off the gold standard &

ending prohibition (21st amendment)

National Recovery Administration

The NRA ended up being too bureaucratic; business cooperation gave way to self-interest & greed

The Hundred Days■Some of FDR’s First New Deal

focused on long-term reforms –Securities & Exchange Securities & Exchange

Commission (SEC)Commission (SEC) to regulate the stock market & prevent another stock market crash

–Tennessee Valley AuthorityTennessee Valley Authority (TVA)(TVA) created dams in 7 states to provide cheap hydroelectric power & create jobs

The Tennessee Valley Authority

Critics claimed the TVA was too socialistic; Competing electric companies attacked the

TVA for selling cheaper electricity & eliminating competition

The Hundred Days

■The 1st hundred days of FDR’s administration were temporary solutions to solve problems, but…

■…psychologically, Americans believed that FDR was actively responding to the Great Depression

Franklin Roosevelt & the Second New Deal

(1935-1938)

Criticism of the First New Deal■The failure of the New Deal to end

the depression led to growing frustration among Americans

–From 1933-1934, the New Deal focused on immediate problems & did very little to help unskilled workers & sharecroppers

–In 1935, FDR shifted approach from economic relief to reform

Challenges to FDR■By 1935, signs of discontent with

the New Deal were evidenced as 3 critics gained national attention: –Father Charles CoughlinFather Charles Coughlin called

for nationalizing U.S. banks; used anti-Semitism in radio sermons

–Francis TownsendFrancis Townsend appealed to the elderly with a $200/mo payment plan to anyone over 60 in order to stimulate the economy

Challenges to FDR

■Louisiana Senator Huey Long proposed his Share the WealthShare the Wealth plan to:

–Take from the rich—a 100% tax on all personal income over $1 million

–Give to the poor—give every American $2,500 per year

Huey Long threatened to run as a 3rd Party candidate but was assassinated in 1935

The Second New Deal ■The 1st act of the 2nd New Deal was

Works Progress Admin (WPA)Works Progress Admin (WPA), the most comprehensive, direct-assistance program of the New Deal–The national gov’t hired 10 million

Americans in an attempt to stimulate the economy

–WPA created building projects, funded artists, & pumped $10 billion into the economy

WPA helped but never employed enough people to stimulate consumer purchase

power—it made the Depression bearable

WPA Public Work ProjectWPA cared less about what got done as long as work was done: built hospitals, schools, airport fields… but also moved leaf piles & dug ditches

Social Security■Social Security ActSocial Security Act (1935) was

the 1st U.S. welfare program for the aged, disabled, & unemployed–Old-age pensions to be funded

by employers & workers –Unemployment compensation to

begin in 1942 funded nat’l taxes but administered by states

–Welfare payments for the blind, handicapped, & needy children

■Liberal critics argued that SS did not do enough

■Conservative critics argued that SS violated individualism & self-reliance

■Social Security created America’s 1st welfare program to help individuals

Labor Legislation■Wagner ActWagner Act (1935) created the

Nat’l Labor Relations Board to oversee labor-management affairs–Mandated management to

negotiate with unions regarding pay, hours, conditions if majority of workers vote for a union

■Fair Labor Standards ActFair Labor Standards Act (1938) created 1st minimum wage & maximum hour laws (aimed at helping non-unionized workers)

40¢ per hour40 hours per week

The “Magna Carta” for labor

Conclusions■The New Deal was made up of

3 parts: reliefrelief, recoveryrecovery, & reformreform–New Deal was most successful

in providing immediate relief to ease economic suffering

–The New Deal did not bring economic recovery, redistribute

wealth, or end the depression–The New Deal brought major

reforms that changed America

For the 1st time, the gov’t used Keynesian Keynesian

economicseconomics (deficit spending & gov’t

spending to stimulate the economy)

The gov’t assumed responsibility for the health of the nation's economy & citizens

The New Deal signaled the beginning of the

welfare state

The End of the New Deal

End of the New Deal■New Deal reached its high point

when FDR was re-elected in 1936

■FDR’s experienced more setbacks in his 2nd term than is 1st term but he still remained a popular leader

The 1936 election saw the birth of a new Democratic coalition that would last for

30 years: South, West, urban, labor, ethnic groups, blacks, & the poor

Packing the Supreme Court

■The Supreme Court was FDR’s last obstacle to overcome:–The Court ruled the NRA & AAA

were unconstitutional –FDR’s solution was to ask

Congress to appt 1 new justice for each justice over 70 yrs old

–This controversial “court packing” plan would add 6 new justices

Justice Willis Van Devanter planned to retire in 1932, but stayed on because he felt FDR was “unfitted & unsafe for the presidency”

All 9 justices were old, white men; Only 3 were sympathetic to the New Deal; 2 were unpredictable; 4 wanted to block New Deal

Schechter v. U.S. (1935)

U.S. v. Butler (1936)

Packing the Supreme Court■The court-packing scheme was

legal but set a scary precedent:

–The Senate strongly resisted FDR & the Court defended itself against “ageism” attacks

–The crisis ended when the Court declared the Wagner Act & Social Security constitutional & Judge Van Devanter resigned

FDR eventually appointed 5 justices to the Supreme Court in his 4 terms

The End of the New Deal■1938 saw the end of the New Deal

–Other than the Fair Labor Standards Act, FDR’s 2nd term saw no new New Deal programs

–FDR’s court-packing plan hurt his relationship with Congress

–The “Roosevelt Recession” of 1937 was the result of FDR’s attempt to reduce gov’t spending & balance the budget

Unemployment, 1929-1942

The Impact of the New Deal

The Impact on Women■The New Deal brought few

economic benefits to women:–The New Deal allowed for

unequal wages; Social Security, the NRA, & minimum wage laws offered little help for women

■But, women did see gains in gov’t: –The 1st female cabinet member,

Senator, ambassadors, & judges were appointed under FDR

The 1st female cabinet member: Francis Perkins (Dept of Labor)

The 1st female Senator: Hattie Caraway (D-Arkansas)

The Impact on African-Americans■The New Deal did little for blacks:

–Racism & segregation remained strong during the Depression

–The NRA allowed lower wage scales for black workers; The AAA allowed for the eviction of sharecroppers & tenant farmers

–Minimum wage & SS did not apply to farmers & domestic servants (65% were black)

AAA is a “continuation of the same old raw deal”

Social Security “looks like a sieve with the holes just large enough for the

majority of Negroes to fall through”—NAACP

Blacks experienced 50% unemployment rate

Blacks were the last hired & first fired

The Impact on African-Americans■Despite the inequalities of the

New Deal, blacks supported FDR:

–FDR hired African-Americans to key gov’t positions

–Eleanor Roosevelt spoke out against racial discrimination

–The RFC brought assistance to 40% of unemployed blacks through the WPA

“While relief & WPA are not ideal, they are better than the Hoover bread lines & they’ll have to do until the real thing comes along”

The Impact on Mexican-Americans■Mexican-Americans fared even

less than African-Americans:–The Dust Bowl led to a flood of

whites into the agricultural fields in the southwest

–Congress created immigration restrictions & allowed for the deportation of illegal residents to reduce state welfare payments

–Received few New Deal benefits

The Impact on Native Americans■Native-Americans remained the

poorest of all U.S. residents but did benefit from the New Deal

–The Indian Reorganization ActIndian Reorganization Act shifted U.S. Indian policy from Indians as yeoman farmers to unified & autonomous tribes

–Many gained employment in the Indian Bureau

The Impact on the South & West■The South & West benefited the

most from the New Deal:

–The AAA helped end Southern dependence on sharecropping in favor of a wage labor system

–The West received more work relief & welfare than any region

–Hydroelectric power & irrigation programs helped residents

ConclusionConclusion:The New Deal &

American Life

The New Deal and American Life■The New Deal lasted only 5 years

(1933-1938); The majority of laws came in 2 bursts in 1933 & 1935:

■The New Deal was not very successful economically: –Helped relieve suffering but did

not end the Depression–American wealth remained

unequally distributed

First Hundred Days

Second Hundred Days

10 million were still unemployed

in 1939

12 million were unemployed when FDR

took office in 1933

The New Deal & American Life■The New Deal was more

successful socially:

–Social Security, Wagner Act, & the Fair Labor Standards Act helped elderly & disabled citizens, labor unions, & workers

–The New Deal did not help women, minorities, domestic workers, or small farmers

The New Deal and American Life■The New Deal was most

successful politically:

–FDR’s leadership unified a new Democratic voting bloc

–FDR used his leadership & optimism to provide a vital psychological lift to help citizens endure the Great Depression