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FDR and the First New Deal
Pages 722-726
Describe the background of
FDR.
Objective
Franklin D. Roosevelt
DemocratNew York1933-1945
Aristocratic family values◦ Strong sense of civic duty◦ Competitive athletics◦ Commitment to public service
GrotonHarvard Columbia Law Believed government could
make peoples lives better.
FDR the Man
FDR the Man 1905: Married E. Roosevelt 1910: NY State Senate 1913-20: Asst. Sec of Navy 1920: losing VP candidate 1921: Stricken with polio… 1928: 2 term Governor of NY 1932: elected 32nd President The only 4 term President
First Lady Eleanor Roosevelt
Most active
First Lady in history
FDR’s “social conscience” & advisor
Supports minorities & the poorWrites, speaks & travelsThe “eyes & ears” of FDR
Eleanor Roosevelt
“Once I spent two years in bed trying to move my big toe… After that anything else seems easy” – FDR
1938 FDR founds the March of Dimes to find a cure for polio
1955 Jonas Salk discovers successful vaccine
Today, the organization helps pregnant women have strong, healthy babies.
a “new deal”…“bold and persistent experimentation”…
FDR promises America…
The Election of 1932
FDR HooverElectoral Vote: 472 59◦Popular Vote: 23m 15.7m◦Percentage: 57.4% 39.7%
The Democrats win both houses of Congress
The Election of 1932
Professors, lawyers, and economists
Power of experts to fix the economy
Belief in government-business cooperation
“Economic reform must accept the modern reality of large corporate enterprise based on mass-production and distribution.”
“Brains Trust”
Inauguration Day 1933…
The Beer Act
21st
Repeals 18th
Restoring Confidence March 4, 1933 Inaugural Address
◦ “the only thing we have to fear is fear itself.”◦ The next day, ordered a 4 day “bank holiday”
1300 banks fail in 1930 2000+ fail in 1931
Bank Runs – 20% of all banks close
Police Guarding a Bank
Bank Holiday 1930 = 1300 failures 1931 = 2000 failures Pattern of dishonesty
◦ Stock manipulation◦ Illegal loans◦ Tax evasion
Emergency Banking Act restores confidence
1933 Glass-Steagall Act establishes FDIC and insures individual accounts
Glass-Steagall Banking Act…
How safe is your money?
That "FDIC" logo you see as you walk in the door means that you hold insurance on your deposits.
Depositors are typically protected for up to $100,000.
Banks also carry private banking insurance -- specially designed private coverage to protect deposits in the case of burglaries, robberies,
vandalism, etc.
Requires corporations to provide complete info on all stock offerings
Liable for misrepresentations
SEC regulates the stock market and prevents “rigging” the system.
Federal Securities Act
Radio broadcast that explains to the American people his steps taken to meet the financial crisis.◦ Enormously successful in exuding confidence◦ Exemplified courage◦ Communicated compassion
Emergency Banking Act◦ Healthy banks reopen◦ Federal management of failed banks◦ Mid-March the crisis passes
The “fireside chat”
Fireside chat with FDR…
Describe the government responses under the
Roosevelt administration to the social & economic
problems associated with the Depression.
Objective
The 3 Rs…Relief… Recovery… Reform…
The Goals of the New Deal…
J. Doyle, Phila. Daily News March 3, 1933
The idiom “prime the pump”
To do something in order to make something succeed, especially to spend money
Get the economy going:- Lower taxes- Spend money - Deficit spending
What was Keynesian Economics?...
Emergency Banking ActCivilian Conservation CorpsFed. Emergency Relief Admin.Agricultural Adjustment ActTennessee Valley AuthorityNational Industrial Recovery ActGlass–Steagall Banking ActTruth In Securities Act
Key Legislation of the First New Deal
The CCC Unemployment relief
◦ Protecting and conserving natural resources
◦ Road construction, reforestation, flood control, national parks improvements
◦ R&B + $30.00 per month $25.00 sent home 2.5 million youth 1500 camps
The Civilian Conservation Corp…
FDR visiting a CCC work camp...
The Civilian Conservation Corp…
The CCC…
The Federal Emergency Relief Act◦ $500 million◦ ½ to states for direct relief◦ $3 from state = $1 from fed grants for relief
The FERA
Agricultural Adjustment Act (AAA)…
“The First 100 Days”March 9 - June 16, 1933
The Agricultural Adjustment Act◦ Farm relief◦ Fed. Planning and price setting
Parity pricing Benchmark becomes prosperous years
Subsidies Payments for reducing production
◦ Paid for by new taxes created on food processing
The AAA
Agricultural Adjustment Act
The AAA’s downside Great for large landholders Landlords don’t share the wealth with
tenant farmers Surplus crops, livestock, and milk being
destroyed when so many are hungry
The Tennessee Valley Authority◦ Most controversial◦ Denounced as socialism
Independent Public Corporation◦ Built dams for flood control◦ Cheap hydroelectric power for people in 6 states
Model for government planning improving the social and economic welfare of poor, under-developed region
The TVA
Why is the TVA controversial?
$4.2B on large scale projects
Constructed schools, hospitals, post offices, roads & dams.
Creates jobs
NIRA“The First 100 Days”
Public Works Administration
NIRA – FDR was given the power to manage the nation's business.
Goal: Recovery & create jobsThe NIRA includes:
NRA – National Recovery Admin. PWA – Public Works Admin. - Sec. Int. Ickes
National Industrial Recovery Act (NIRA)
The NRA regulate wages, working hours, prices and recognizes trade unions.
Declared unconstitutional in1935 Congress could not delegate its lawmaking power to the President.
National Recovery Administration (NRA)
NRABlue Eagle
National Recovery Administration
23) Harold Ickes
• Sec. of the Interior
• Leader: Public Works Amin. (PWA)
PWA: Power Dam in Oregon
PWA
PWA
Louisiana State Office Building
