FDR and the New DealFDR and the New Deal

FDR: The ManFDR: The Man•Born into wealth•Contracted polio•Married his cousin•Governor of New York•Lab for the New Deal•Energetic, not afraid of trying new ideas (Liberal)•Borrowed from Hoover

1932 Election1932 Election

• Hoover v. Roosevelt• FDR exuded confidence and change

for the nation• Hoover didn’t end the Depression

and Americans believed he just didn’t care about them—no confidence

The Voters and HooverThe Voters and Hoover• Campaign stop in Detroit, Auto workers: “Hang Hoover!”

• Hoover needed extra police protection

• Wisconsin: man found pulling spikes from tracks ahead of Hoover’s train

• Nevada—men caught with dynamite near the train

• Many stops—hit with tomatoes and stink bombs

Election ResultsElection Results

•FDR wins by a landslide—why? •Inauguration speech

Part One: The First New Part One: The First New DealDeal

Tackled these problems:1.Unemployment2.Farming Crisis3.Bank Closings

4.Industrial Production

Banking ChangesBanking Changes•9000 Bank failures (mainly in rural areas—farmers couldn’t pay their loans)•Uninsured accounts•American people—no confidence•March 5th, 1933 (2nd day in office) he closed all banks (bank holiday—actually illegal)•Emergency Banking Relief Act passed (banks inspected; could reopen when “healthy”)•First Fireside Chat

More Financial ChangesMore Financial Changes

•Glass-Steagall (1933): created FDIC ($5000)•Federal Securities Act (1933): Corps. must provide complete stock info (liablity)•SEC (1934): Police of the Stock Market

Agricultural Adjustment ActAgricultural Adjustment Act•Dust Bowl problems•Overproduction (Europe no longer needed our wheat)•They borrowed more to produce more at a lower price•AAA (May 1933) paid farmers not to produce ($100 million to plow under 10 million acres)•Worked—raised farm prices (who could afford?)•Paid for through a food processing tax•US v. Butler: AAA declared unconstitutional

Civilian Conservation CorpsCivilian Conservation Corps•Work for cash and job skills•Unmarried men 18 to 25•Lived in camps away from home•Roads, parks, plant trees, erosion projects•Many trees planted on Great Plains•$30/month ($25 went back to family)•Wore uniforms, taught discipline

National Industrial Recovery ActNational Industrial Recovery Act•Established fair practice codes for industry (central planning)•Goal: raise economic production & prices•Created NRA (set prices on many items; work hours and wage standards)•Businesses (esp. big businesses) created codes with NRA•Declared unconst. in Schechter Poultry v. US

Other First New Deal LegislationOther First New Deal Legislation• Federal Emergency

Relief Administration: States & Fed made direct cash payments to poor

• TVA: Built dams and provided power

• HOLC: lowered home loan payments (prevented foreclosure)

• FHA created• PWA & CWA: public

works projects

The Second New DealThe Second New Deal

Social SecuritySocial Security•Everyone pays into system•Elderly, those who can’t work, and single mothers collected•Unemployment compensation

Wagner ActWagner Act

•Magna Carta for labor•Gov’t guaranteed right of workers to form or join unions•Blacklisting and firing for union activities illegal•Collective Bargaining legalized•NLRB overseer•Union membership tripled

Other Second New Deal Other Second New Deal LegislationLegislation

• Second AAA: took out illegal tax• Farm Security Administration:

Helped tenant farmers become landowners

• WPA: Created many jobs (public works and other jobs—writers, artists, etc.)

• Fair Labor Standards Act: Maximum hours and minimum wages

• National Youth Administration: Gave aid to students (high school & college); provided jobs (clerical jobs at school); headed by Mary McLeod Bethune)

New Deal CriticsNew Deal Critics

• Criticism began with the Court Packing proposal (retirement age @ 70—president replace them)

• Huey Long: “Share Our Wealth” (taxes on wealthy)

• Conservatives: He was making gov’t too powerful & too $$$

• Liberals: He wasn’t doing enough to help the poor

Changes From The New DealChanges From The New Deal

End of the New DealEnd of the New Deal

• What ended the New Deal? 1937 recession

• FDR: worried about the national debt

• Cut government spending

• Did the New Deal end the Great Depression?

• NO! World War II did

African Americans: The SituationAfrican Americans: The Situation

• 1927—African-American unemployment rate

• Last hired, first fired

• Many were stuck—moved to cities & became unemployed; now what?

• What racism existed during this time?

1930s Racism1930s Racism• NIRA paid a lower minimum wage for Blacks

• AAA farmers had checks taken

• FHA kept segregation in neighborhoods

• WPA had lower wages

• Syphilis study (1932 Alabama) no consent

• 1935 Harlem racial riot

What Changed: Movement What Changed: Movement AGAINST RacismAGAINST Racism

• Many African-Americans voted for Democrats (switch from Republicans)

• Great Migration slowed

• Black Cabinet

• Friend in White House (Eleanor)

• Strike against segregation: Marion Anderson (DAR)

• Some New Deal programs open to A-A’s (artists & writers)

What Didn’t ChangeWhat Didn’t Change• Segregation• Racial violence (no

Federal anti-lynching law—why?)

• Racism increased (usually happens during hard times)

• Relief $--local officials didn’t give to blacks

• But…this was the roots of the Civil Rights movement

Other ChangesOther Changes

• Francis Perkins• Laissez-faire: gone

forever• Poverty became an

issue• 4 term president• Wife becomes an

advisor• New Deal coalition