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Chapter 22The New Deal
Mr. Riddlebarger
The Election of 1932● Many Americans blame high
unemployment and collapsing banks on President Hoover.
● Franklin D. Roosevelt (NY) had a record of relief programs as Governor of New York.
● He promises the same as President along with public works programs to try and revive the economy.
1932 Candidates
Franklin D. Roosevelt Herbert Hoover
Roosevelt wins in a landslide
1933 Inauguration
The Forgotten Man● FDR had the ability
to connect with and speak to ordinary people
● Fireside Chats- used the radio to reassure Americans
● His wife, Eleanor, was very active in his presidency.
Roosevelt Presidency● Banking crisis was first priority● Many people had withdrawn all their money
from banks, causing further withdrawals and more banks to collapse.
● Roosevelt orders a bank holiday- the closing of all the nation’s banks.
● Before reopening, banks were examined by government & banking reforms passed (FDIC).
● Public was re-assured and began depositing $$ again.
The Hundred Days● During FDR’s 1st one
hundred days in office, he pushes Congress to pass key parts of his reform program- New Deal.– Relief for those
suffering the effects of the Great Depression
– Recovery of the depressed economy
– Reform that would help prevent serious economic crises in the future.
CCC
● The Civilian Conservation Corps sought to address unemployment with young men
● CCC paid young men to plant trees and improve parks
● Stayed in army-style camps & sent most of earnings to families.
AAA● The Agricultural Adjustment Act gave farmers
a subsidy (payment) to grow fewer crops.● Leads to higher crop prices.
More New Deal Programs● National Industry
Recovery Act (NIRA)-Got businesses to work together to set prices & levels of production– Government gives
labor unions the right to organize.
– Collective Bargaining
● Securities & Exchange Commission (SEC)- watchdog over stock markets
● Tennessee Valley Authority (TVA)- built dams and other projects along Tenn. River to control flooding & created hydro-electric power.
Works Progress Administration
• WPA employed 8.5 million Americans in variety of public-works projects• Built roads, subways,
airports, zoos• Worked in offices,
schools• Funded artists, actors,
composers
“You worked, you got a paycheck and you had some dignity.”
Social Security
• The centerpiece of the second New Deal was the Social Security Act (1938)• It created Social Security• Provided a pension for many people 65 or older
• Retired workers no longer needed to fear hunger and homelessness once they were too old to work.
• Also included system of unemployment insurance.
Reviving Organized Labor
• Passage of NIRA in first New Deal was major step forward.• Workers guaranteed rights to
form unions• Many businesses ignore rules
• Wagner Act • Outlaws anti-Union practices• Establishes National Labor
Relations Board
• Organized labor membership surges
New Deal Troubles● New Deal marks
landmark change in relationship between people and government.
● Government takes a leading role in people’s personal lives.
● Some felt the New Deal didn’t go far enough.
● Conservatives felt it went too far, fearing it would ruin America.
Huey Long“The Kingfish”
● Critic of New Deal● Felt FDR was too friendly to banks & businesses.● Share Our Wealth proposal● Would provide $ for home and minimum income for each
American family● Assassinated
“Communism? Hell no. This plan is the only defense this country's got against communism.”
Father Charles Coughlin● Former FDR
supporter used radio program to criticize nations banking & financial leaders.
● Felt FDR was “double-crossing”
● Anti-Semitic remarks cause influence to decline.
Dr. Francis Townsend● Felt older
Americans were left out of New Deal.
● Proposed plan to provide pensions to people over 60
● His ideas influenced FDR to create Social Security.
OR?
Election of 1936
• FDR campaigns on record of solid achievement
• Kansas Governor Alf Landon is Republican opponent.
• FDR ignores him.
• FDR wins easily & Democrats gain seats in both houses of Congress.
• *** African-Americans shift in vote (REP to DEM)
A Troubled Year-1936Court -Packing Plan
•Determined to overcome obstacles to his programs, FDR makes serious missteps.• The Supreme Court had ruled some parts of the New
Deal unconstitutional■ This angered FDR
• FDR comes up with plan to reorganize court system.•Includes plan for increasing size of Supreme Court (allowing FDR to appoint favorable justices)
Court Plan Fails
• Many, including FDR supporters see it as a scheme to upset balance of power.• Checks &
balances
• Many supporters desert FDR and plan fails.
Recovery in Doubt
• Economy suffers another setback in fall of 1937.
• Stock Market drop leads to 2 million job cuts.
• FDR looks for money to help unemployment but fears growing deficit
• Economy rebounds in summer of 1938
New Roles for Women & African-Americans
▣ New Deal brings great changes in American life & society.◼ Old ways give way to new
▣ Brings hope to blacks and woman for expanded role in society.
▣ “Black Cabinet”- unofficial advisors to FDR▣ Eleanor Roosevelt champions civil rights.▣ New Deal did not address civil rights within
society.
Women in the New Deal▣ Frances Perkins- 1st female
cabinet member (Labor Secretary)
▣ Eleanor Roosevelt plays big role
in administration▣ Problems still to overcome:
unequal pay for same jobs, fewer opportunities.
Roosevelt Perkins
Popular Entertainment in the 1930’s
▣ Despite hard times, Americans still found the means to attend movies
▣ Radio also continued to grow in popularity in 1930’s
▣ Sports attendance suffers in 30’s but not interest.
Both are seen as an escape from the hard times.
Movies/ Radio
▣ Most movies of 1930’s steer clear of reminders of hard times
▣ Musicals, comedy▣ 1st animation (Snow
White), color (Wizard of Oz) and blockbuster (Gone With the Wind)
▣ Plays an important role in American politics.
▣ The War of the Worlds▣ Growth of Jazz▣ Swing music sweeps
country in 30’s
Relief, Recovery, Reform
• Were these promises met with the New Deal?– Millions got aid– Social Security &
unemployment became a part of U.S. government
– Early recovery nearly wiped out by downturn in 1937
Changing Relationships
• New Deal changes relationships in American society– Link between people & government– FDR saw government as a way to help
business and individuals achieve greater economic security
– New government role means a much bigger government
• Move away from laissez-faire
The End of the New Deal
• Court-packing scheme and economic downturn in 1937 hurt FDR support.
• By 1938, New Deal era of reform is basically over.
• Only 1938 legislation- Fair Labor Standards Act- establishes minimum wage and maximum hour week.– Ends child labor– Last major New Deal law– Major victory for labor
After the New Deal
• Opposition to more New Deal reforms is too strong to overcome after 1938.
• American attention begins shifting to events happening abroad.
• Europe appears headed toward war.• International conflict will do what
political struggle couldn’t - End the Great Depression.