US History
Chapter 12
The Election of 1932
What?
•Roosevelt offers a “New Deal” for America
•Roosevelt wins with 60% of the vote
2
Roosevelt’s New Deal
What?
•Programs meant to help the country
by getting the government involved in
the economy
Meant to do 3 things
1. Relief - help people out in the short
term
2. Recovery - get the economy back
on its feet
3
3. Reform - keep this from ever
happening again
Bank Holiday - First Step
Why?
•Many banks
had failed,
wiping out
families’ savings
•People lost
confidence in the
banks
4
Depositors Congregate Outside Closed Bank
Bank Holiday - First Step
How?
•Closed banks
for four days to
reorganize
•President explains
in a “fireside chat”
•Confidence
restored
5
Next Step - “Alphabet Soup”
Hundred Days
•In the first 100 days of his administration
Roosevelt passes tons of legislation
Alphabet Soup
•The agencies he
creates (like AAA)
6
Next Step - “Alphabet Soup”
CCC - Civilian Conservation Corps
•18-25 year old
guys get jobs and
send money home
to their families
7
CCC workers in Lassen National Forest, California
Next Step - “Alphabet Soup”
WPA – Works Progress Administration
renamed during 1939 as the Work Projects
Administration; WPA
•Employed 2–3 million people
who worked on depression-era
public works projects.
•It tried to provide one paid job
for all families where the
breadwinner suffered long-term
•Led to the construction and
improvement of over 600,000
miles of roads and the building of
over 800 airports
8
Some WPA programs included adult education
Next Step - “Alphabet Soup”
AAA - Agricultural Adjustment Administration
•Government pays
farmers not to farm
•Meant to cause
prices to rise and
halt overproduction
Criticism
•It encouraged farmers
to destroy crops and
livestock in order to
raise prices, despite
public need for both.
9
Next Step - “Alphabet Soup”
TVA - Tennessee Valley Authority
•example of an energy development project
• Government runs a
hydroelectric power plant
• Provides flood control
• Creation of thousands of
jobs
• Provides cheap power &
fertilizer to the poor region
10
Construction at Norris Dam, which was being built
by the TVA on the Clinch River in Northeastern Tennessee
•Remember the Locks from the Panama
Canal?
11
12
Rural Electricity
•example of an energy development project
One goal was to provide additional help to rural Americans.
Toward this end, Roosevelt in May signed the Rural
Electrification Act. It empowered the Rural Electrification
Administration (REA) to loan money to farm cooperatives and
other groups trying to bring electricity to people living outside
of cities and towns. In many areas, for-profit power
companies had been unwilling to put in the miles of power
lines needed to serve remote, sparsely settled areas. Under
the REA, the numbers of rural homes with electricity grew
from 10 percent to 90 percent in about a decade. Millions of
farmers were finally able to enjoy the benefits of electricity
Technology In what is seen as a parallel to rural
electrification in the 1930s, Congress has earmarked
funds to help bring high-speed Internet service to rural
America today.
13
Next Step - “Alphabet Soup”
FDIC - Federal Department Insurance Corp.
•Insurance for the
$ you put in banks
•Protected
people’s savings
14
Bank Employee Checks Depositor's Account
Next Step - “Alphabet Soup”
SEC - Securities and Exchange Commission
•Watchdog
agency for the
stock market
Federal Securities Act of 1933
•It required that any
publicly traded company
give accurate information
about itself and made
them liable for any
fraudulent
representations.
15
New York Stock Exchange
Next Step - “Alphabet Soup”
FERA - Federal Emergency Relief Admin.
•Gave direct relief ($) to
those who needed it
•Beginnings of a welfare
program
•Begging, bread lines,
and soup kitchens were
how the poor got food
16
Next Step - “Alphabet Soup”
Social Security
•Taxed people currently
working to give payments to
the elderly
• Still being run today
17
Social Security Information Poster
Major New Deal Programs
Agricultural Adjustment Administration (AAA), 1933
Civilian
Conservation
Corps
(CCC),
1933 Provided
jobs onfor
conservation
Encouraged
farmers
to cut
production
in return
a subsidy
Emergency
1933
Gaveneeded
federal
government power to
projects to Banking
young menAct,
whose
families
relief
reorganize and strengthen banks
Tennessee Valley Authority (TVA), 1933 Promoted development
Federal Emergency Relief Administration (FERA), 1933 Provided grants to
projects
fordirect
the relief
Tennessee
River Valley—for
to improve
Federal
Insurance
Corporation
(FDIC), example,
1933 Established
an
states Deposit
for
to the needy
navigation,
produce
electricity,
and control
insurance
program
for deposits
in many
banks floods
Public Works Administration (PWA), 1933 Provided public-works jobs for many
of those needing
relief
Securities
and Exchange
Commission (SEC), 1934 Provided
National Industrial Recovery Act (NIRA), 1933 Encouraged
increased
government
regulation of the
trading on stock
exchanges
cooperation
among businesses
in Provided
establishing
production
Civil
Works Administration
(CWA), 1933
public-works
jobs forand
many of
those
needing relief
labor
practices
National Labor Relations Act (NLRB), 1935 Established the National
Labor Relations
Board to enforce
labor1935
laws
Works
Progress Administration
(WPA),
Provided public-works jobs on a
Federal
Housing Administration (FHA), 1934 Encouraged loans
wide range of projects for many of those needing relief
for renovating
or building
homesand Hours Law), 1938 Established
Fair
Labor Standards
Act (Wages
Social
Security
Act,
1935
Established
pensions
for retirees,
minimum
wages
and
maximum
hours
for many
workersunemployment
insurance,
and aid for certain
groups of low-income
or disabled
people
Rural
Electrification
Administration
(REA),
1935 Encouraged
the delivery of electricity to rural areas
Farm Security Administration (FSA), 1937 Provided assistance to tenant
farmers to help them purchase land or establish cooperatives
18
Programs in red still in existence.
Effects
Impact on California
•Population grew by over 1 million
due to the Dust Bowl
•California Central Valley Project
was developed to protect the area
from devastating drought and
destructive floods, thus helping to
stabilize California's economy
19
Map of CVP facilities in the state of California.
Facility labels and aqueducts are in red, utilized
watercourses and reservoirs are in dark blue, and
other watercourses are in light blue.
Impact on Labor Unions
•Just after WWI, many people began to associate labor unions with communism and
anarchy.
•Decline in memberships during the 1920s was due to much of the work force being
made up of new immigrants, who were difficult to organize.
•Collective Bargaining was legalized in the National
Labor Relations Act of 1935 and strengthened labor
unions
•The rate of membership in labor unions greatly increased between 1935 and 1940.
•The labor movement benefited from FDR's policies.
20
American Federation of Labor (AFL)
•Samuel Gompers was the first president of the
American Federation of Labor
•The creation of American Federation of Labor was the
MOST successful in organizing labor in the United
States
•There were restrictions: an automobile manufacturers'
union would not have been allowed to join because of
the AFL’s disinterest in protecting the rights of
industrial workers relative to craft workers. This led
to the creation of the Committee (or later,
Congress) of Industrial Organizations (CIO) in 1935
21
His Greatest Mistake
Trying to Pack the Supreme Court
What?
•Increase the # of Supreme Court
justices from 9 to 15
Why?
•Kept declaring his programs
unconstitutional (including
National Recovery
Administration, AAA, SEC, etc.)
22
Constitutional Issue: Powers of the President
Schechter Poultry Corporation v. United States (1935)
Why It Matters Can Congress broadly delegate its lawmaking authority to
the administrative agencies of the executive branch? That was the
question the Court faced in Schechter. The Court’s negative ruling
temporarily derailed President Franklin D. Roosevelt’s New Deal
program. However, it also forced Roosevelt and Congress to tailor
future legislation more narrowly.
The
TheImpact
DecisionToday The Supreme Court
later
took an expanded
view of the
Background
of the Case
In its unanimous
decision,
the Court
cited two grounds for finding the mandatory code
commerce
clause
and gave
Congress
system
unconstitutional.
First, it ruled
thatthe
the delegation of rule-making authority to an
In 1933
President
Roosevelt
created
more
authority
to delegate
lawmaking
agency of the executive branch violated the constitutional separation of powers. The
National
Administration
(NRA).
authority
toRecovery
administrative
agencies.
Constitution
places all legislative
power in the Congress. Rules or codes having the force
The NRA supervised
the development
of
Today
is widespread
governmental
of law there
could only
be made by Congress,
not by the executive branch.
mandatory industry-wide codes for
regulation
of business and economic
production,
prices,
and
wages.
The of the Schechter Corporation were not subject
Second, Much
the Court
ruled
that
the activities
matters.
of
the
regulation
is The
done
standards
carried
the
force
of
law.
congressional regulation. Under the commerce clause, Congress can regulate
bytoadministrative
agencies
withinafter
the it
Schechter
Corporation
appealed
interstate commerce
(conducted
in more than
one state), not intrastate commerce
executive
branch.
Above,
President
was convicted
of within
violating
the minimum
(conducted
entirely
a single
state). The Schechter Corporation bought and sold its
George
W.
Bush
meets
with
Senate
wage and
maximum
hourwithin
provisions
of State. So the commerce clause did not
chickens
almost
exclusively
New York
the code
for
live
poultrypolicy.
industry. business.
apply
toto
thediscuss
waythe
that
Schecter
conducted
leaders
energy
23
His Greatest Mistake
Packing the Supreme Court
What did this
cartoonist think
about the Supreme
Court?
24
February, 1937, Richmond (Virginia) Times Dispatch, "Fall In!"
Political Cartoon
President Roosevelt was very upset when the Supreme
Court struck down some of the key provisions of the New
Deal. To protect his new reforms, he attempted to “pack” the
Court by adding more justices. Congress stopped this effort,
marking one of the few great political defeats for the popular
president. Many critics feared that such a change would
threaten the balance of powers as spelled out in the U.S.
Constitution. The following political cartoon originally
included a caption that read, “Oh, So That’s the Kind of a
Sailor He Is!”
25
His Greatest Mistake
Packing the Supreme Court
Results?
•Public grew
angry (FDR
taking too
much power)
•FDR passed
much less
legislation
after this
26
Supreme Court Exterior
The New Deal - Pros and Cons
Pros
•Restored optimism and hope to Americans
•Provided necessary relief to many
•Labor movement benefited
Cons
•Did not really fix the depression
•Left the nation with much debt
•Left people too dependent on government (?)
27
•Conservatives felt it interfered with the free market
economy and was leading toward socialism
Visual Summary
28
Did I tell you about the following?
•
Cutting sheets
•
My grandmother’s high school
principal
•
School lunch in Arizona
•
School dances in L.A.
Life in the 1930s
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