FDR & The New Deal
Election of 1932
• Depression had been going on for 3-years.
• Millions are unemployed, hungry, and
homeless.
• The Democrat, Franklin Delano Roosevelt
of NY, easily defeats Hoover.
Election of 1932
Who was Franklin Delano
Roosevelt?
• Know as—”FDR”
• Born to a very wealthy family in NY.
• Went to Groton, Harvard, & then
Columbia Law School.
• Married his distant cousin—
Eleanor.
• 5th Cousin of Teddy Roosevelt.
FDR’s Political Career
• Served in the NY state
legislature.
• Assistant Sec. of the Navy under
Wilson.
• Democratic VP candidate in 1920
(lost).
• 2-Time Governor of NY (19281932).
Polio
• In 1921, while
vacationing at his
family home in
Campobello FDR
contracts polio.
• He never walks again.
FDR as Pres.
• While running for President, FDR
had pledged, “a new deal for the
American people.”
• The New Deal became the name for
FDR’s programs to end the
depression.
• “We have nothing to fear, but fear
itself.”
• Only US Pres. Elected 4-times.
The Hundred Days
• The first 3-months after FDR took office,
he began a flurry of legislative action
aimed at ending the Depression.
• This was called the Hundred Days.
• Immediate impact was minimal; but gave
people hope.
The Banking Crisis
• Called for a “Bank Holiday” (closed all banks for 4-days)
• Then only “sound” banks could reopen.
• Others would remain closed until the govt. could develop
a way to open them safely.
• Restores public’s confidence in banks again.
• By 1933 ½ of banks are open again.
The 3-R’s
• New Deal Programs were aimed at the 3R’s:
– A. Relief for the unemployed.
– B. Recovery measures to stimulate the
economy.
– C. Reform laws to lessen the threat of
another economic disaster.
Reform Laws
• Truth-In-Securities Act —designed to eliminate
fraud in the stock market.
• Creates the Securities & Exchange Commission
(SEC) to regulate the stock exchange.
• The Glass-Steagall Banking Act —Prohibited
banks from investing customers’ savings in the
stock market.
– The Glass-Steagall Act also established the Federal
Deposit Insurance Corporation (FDIC) Which insures
bank deposits in all member banks.
Fireside Chats
• FDR’s regular radio
addresses to the
nation.
• Very charismatic with
public and press.
The Brain Trust
• Brain Trust = Name given to FDR’s
advisors.
• Many are college professors from
Columbia.
FERA
• To help the unemployed, FDR asked congress
to appropriate $500 million to a new agency—
the Federal Emergency Relief Administration.
• Headed by Harry Hopkins.
• Gave temporary relief, but did not require work
(the dole) and hurt people’s self respect.
• FDR and Hopkins wanted relief programs that
would put people to work.
Civil Works Administration
• CWA
• Public works projects.
• 4 million to work
• Run by FERA
• Only for 5-months
Civilian Conservation Corp
• CCC
• Put thousands of
unemployed men to work
on conservation projects.
• Young men 18 – 25.
• Workers built facilities in
state and national parks.
• Workers lived in
barracks and followed
strict schedules (kind
of like the army).
• Women were
excluded.
• Minorities were limited
and segregated.
Review
• Describe FDR’s Background.
• FDR was the only pres. to do what?
• How did FDR deal with the banking crisis?
• Define: 100 Days
New Deal
Fireside Chats
Brain Trust
CCC
FERA
Agricultural Adjustment
Administration
• AAA
• Agency set up to help farmers.
• Paid farmers a subsidy to reduce production. This would
cause prices to rise.
• Favored large farmers over small & led to eviction of
many tenant farmers and sharecroppers.
• Supreme court rule unconstitutional in 1936. Said the
govt. had no authority to tell farmers to limit production.
• New = Soil conservation and Domestic Allotment Act.
National Recovery Administration
• Law = National Industrial Recovery Act (NIRA)
• Creates The NRA
• Organization that sought to increase the
productivity of industry by relaxing antitrust laws.
• Sets codes-- production levels, prices, quality
standards—for various industries.
• Establishes minimum wages and maximum hrs.
workers can work.
Problems with NRA
• Section 7(a) gave workers the right to form unions but couldn’t be
enforced.
• Codes written by largest businesses and tended to favor them.
• Prices raised artificially.
• Industrial production actually declines.
• Headed by Hugh Johnson
• Supreme Court rules is unconstitutional.
Schechter Bros. v. US
• Poultry biz. In Brooklyn. “Dead Chicken
Case”
• Had violated NRA codes.
• Not involved in interstate commerce.
• Supreme court ruled NRA was
unconstitutional because Pres. Had taken
over legislative powers in drafting codes.
Public Works Administration
• PWA
• Was created along with NRA under the national
Industrial Recovery Act.
• Provided job for the unemployed to work on public
projects.
• Built schools, dams, highways, govt. buildings, low
income housing, etc.
• But limited (FDR not sold on deficit spending)
• Headed by Harold Ickes who was too exact and had
trouble spending the $.
Tennessee Valley Authority
• TVA
• Built dams in the Tennessee
valley to create electricity.
• Also created jobs and enriched
the soil.
• But backwater flooded some
farmers.
• Business leaders felt it was a
socialist program & that it
unfairly competed with private
businesses.
Norris Dam
2nd New Deal
• 1935
• In response to criticism from left and right.
• More aggressive towards corporate interests and the
wealthy.
• Raised taxes on wealthy.
• Wagner Act (National Labor Relations Act). Gives workers
the right to form unions.
Social Security Act
• 1935, Social Security Act passed.
• Gave security (money) for the elderly.
• Also people with disabilities, the unemployed, and
dependent children and their mothers.
• How Social Security Works:
• Employees pay in throughout their careers
• Workers got money back in the form of monthly
retirement checks.
Housing for the Poor
• United States Housing Authority (USHA).
• Spent $540 million building apartments for
low income people.
National Youth Administration
• NYA
• Youth 16-24
• Provided job training and jobs
Works Progress Administration
• WPA
• Big Building Projects—schools, airports, hospitals,
playgrounds, etc. LARGER SCALE THAN CWA OR
PWA.
• But also put unemployed teachers. Artists, writers, and
actors to work.
• Wrote plays glorifying New Deal.
• Oral Histories and travel guides.
• Painted Murals.
WPA
Other banking stuff
• Emergency Banking Act—gives govt.
greater control over banks.
• Govt. gives money to banks.