In 1932, President Hoover ran for reelection.
But he had little chance of winning.
• Unemployment stood at 25
percent.
• Bank failures had wiped out
savings.
• The hungry waited for food at
soup kitchens.
Americans
were ready
for a
change.
Hoover’s opponent in the election was
Democrat Franklin D. Roosevelt.
• Harvard graduate
• New York State senator
• Assistant Secretary of the
Navy
• 1920 Nominee for Vice
President
• Polio survivor
• Governor of New York
The two candidates offered very different approaches to
the problems of the Great Depression.
Hoover
State and local
governments and
private agencies
should provide
relief.
Roosevelt
Leadership
should come
from the federal
government.
Roosevelt won in a landslide.
To help him
plan, FDR
sought the
advice of a
diverse group
of men and
women.
His “Brain Trust” consisted of
professionals and academics.
His wife Eleanor Roosevelt
helped him throughout his
presidency. She traveled
widely and acted as the
president’s “eyes and ears.”
Together with his “Brain Trust,” Roosevelt moved quickly
to carry out his promise of giving Americans a New Deal.
During his first
100 days in
office, 15 bills
were passed.
First New Deal
The legislation
had three goals:
relief, recovery,
and reform.
NEW DEAL
• March 1933 and June 1933
• 15 major pieces of
Legislation
• 3 basic categories of
Legislation
NEW DEAL
Relief = to relieve suffering of
the needy
Recovery = lay foundation for
economic growth
Reform = prevent future crisis
NEW DEAL
Relief
Franklin D. Roosevelt
• Banking concerns
–Run on banks contributed to
depression
NEW DEAL
• “Bank holiday” closed all
banks
• FDR declared a four-day bank
holiday, closing the banks so they
could get their accounts in order.
NEW DEAL
• Emergency Bank Act
• Treasury Department
authorized to inspect all
banks
NEW DEAL
• Fireside chats explained
why banks were closing
NEW DEAL
• Those deemed solvent
reopened
• Two thirds reopened
• Restored public confidence
in banking industry
NEW DEAL
• Glass-Stegal banking act
• Established Federal Deposit
Insurance Corporation
(FDIC)
• Insured accounts up to
2,500 dollars
NEW DEAL
• Federal Emergency Relief
Act (FERA)
• Loans to states to create
programs to reduce
unemployment
NEW DEAL
• Civilian Conservation Corp
• Federal Emergency Relief
Act
• Civil Works Administration
Many programs focused on job relief.
Civilian Conservation
Corps (CCC)
Put young men to work
improving national
parks, forests, and
wilderness areas
Federal Emergency
Relief Agency (FERA)
Granted funds to state
and local agencies to
help the unemployed
Civil Works
Administration (CWA)
Gave people jobs on
public-works projects
NEW DEAL
• Civilian Conservation Corps
• (CCC)
1933
put young men to work
NEW DEAL
• Ages between 18-28
• Forest and parks
• Popular of all New Deal
• Temporary employment about
1 year
• Lasted until 1934
NEW DEAL
• Civil Works Administration
(CWA)
• Temporary program
–Get people back to work
–Winter 1934
NEW DEAL
• 4 million had government
jobs
–Make busy work
–Severe criticism
Franklin D. Roosevelt
• SEC (Security and
Exchange Commission)
• Regulated stock market
• Took nation off gold
standard
Franklin D. Roosevelt
• Dollar would compete with
other currency
Franklin D. Roosevelt
»RECOVERY
»Agriculture
Adjustment
»Act
Roosevelt then turned to a series of New Deal programs to
bring relief to the country.
Some programs helped
farmers and those in the rural
South.
• The Agricultural Adjustment
Act sought to end
overproduction and raise crop
prices.
• The Tennessee Valley
Authority (TVA) built dams to
control floods and generate
electricity.
Franklin D. Roosevelt
• Increase farm income by
reducing crop growing
• Paid farmers not to grow
crops
• Tax on food processors
paid the shortfall
Franklin D. Roosevelt
• By 1935 farm income raised
by 50 percent
• However some small and
tenant farmers were forced
off land
Franklin D. Roosevelt
• TVA
–Tennessee Valley Authority
–Developed area that was
eroded
–Over cut forests led to
uncontrollable flooding of
Tennessee River
Franklin D. Roosevelt
• Rural area void of electricity
• Series of dams and locks
• Made river navigable
• Generated electricity for
entire rural region
Franklin D. Roosevelt
• Greatly improved standard
of living
• Conflict between large
utilities and government
• Ashwander v. TVA (1936)
Franklin D. Roosevelt
• Supreme Court ruled in
favor of government
because land to develop
TVA was acquired legally
The Public Works Administration (PWA)
created millions of jobs.
Workers built bridges, dams,
power plants,
and government buildings.
These projects improved the
nation’s infrastructure.
FDR AND THE NEW DEAL
• Created Public Works
Administration (PWA)
• Building projects including dams
and buildings
• Not as successful business did
not trust government
FDR AND THE NEW DEAL
•
•
•
•
•
•
National Recovery Act (NIRA)
“codes of fair competition”
Minimum wage
Maximum hours
Price fixing controls
Collective bargaining
FDR AND THE NEW DEAL
• NRA was collapsing before
it was deemed
unconstitutional by
Supreme Court
NEW DEAL
• Critics of the New Deal
Not everyone, however,
supported the New Deal.
Conservatives charged that it was
making the government too
powerful.
Such critics formed
the American
• Destroying free enterprise
Liberty League.
• Undermining individualism
While
conservatives
thought the New
Deal did too
much, others took
the opposite
position.
Some argued that the
New Deal did not do
enough to end the
depression.
• Socialist Party
• American Communist
Party
The
opponents
who gained
the largest
audience
were
Populist
critics.
Dr. Francis
Townsend
Proposed giving each
person 60 or older $200 a
month to spend
Father
Charles
Coughlin
Used his radio show to
attack the New Deal,
calling it communist
Proposed a “Share Our
Senator
Huey Long Wealth” program that
taxed the rich and gave
money to the poor
NEW DEAL
• Townsend Plan
• Retirement plan for seniors
over 60
• $200 a month
• Workers would retire from
work force thus freeing jobs
NEW DEAL
• Must spend the $200
thus pumping money into
economy
NEW DEAL
• Rejected by Congress but
laid foundation for Social
Security Act
NEW DEAL
• Father Charles Coughlin
NEW DEAL
• Radio personality
• Proposed nationalization
of banks
• Far right
NEW DEAL
• Huey P Long
NEW DEAL
• Supporter of Roosevelt
• In 1932
• Disillusioned wirh New
Deal
NEW DEAL
• Not doing enough
• Proposed a Share the
Wealth Plan
NEW DEAL
• Rich would be taxed and
everyone in US would
receive a payment of
2500 dollars a year
NEW DEAL
• Long’s plan was never
implemented or
discussed
• He was assassinated by
his son-in- law
•Reform
Franklin D. Roosevelt
• Second New Deal
Though progress had been made toward easing the problems of
the Great Depression, Roosevelt knew that much work still needed
to be done.
In 1935, FDR
launched a new
campaign to
help meet the
goals of relief,
recovery, and
reform.
The Second New Deal
Franklin D. Roosevelt
• “pump and prime”
• Stimulate economy plus
giving immediate aid
As FDR planned a new round of spending, critics
charged that New Deal programs, and their high
price tags, were wasteful.
• The government was spending
money it did not have.
• The federal deficit had soared to
$4.4 billion.
• Public-works projects put
money in the hands of
consumers.
• Consumer spending
would stimulate the
economy.
• Deficit spending was
needed to end the
depression.
• Economists call this idea
pump priming.
Deficit spending continued under the second New
Deal.
Franklin D. Roosevelt
• National Youth
Administration
• 1/3 under 24 were
unemployed
• Gave jobs
The Second New Deal aimed to extend social and
economic reforms.
The Works Progress Administration
(WPA) created millions of jobs on publicworks projects.
• Workers built highways and public buildings,
dredged rivers and harbors, and promoted soil
and water conservation.
• Artists were hired to enhance public spaces.
Franklin D. Roosevelt
• National Labor Relations
Act creation of NLRB
• Allowed to workers to elect
• Which union they wanted to
join
Franklin D. Roosevelt
• No discrimination if they
joined a union
Franklin D. Roosevelt
• Social Security
• Pension supported by taxes
for elderly
• Small pension for elderly
• Unemployment
compensation
Such benefits helped reduce poverty among the nation’s
elderly.
Franklin D. Roosevelt
• Support for survivors
• Health insurance
• Health insurance was
dropped in a compromise
Franklin D. Roosevelt
• Banking Act of 1935
–Increased the power of the
Federal Reserve Board
–Federal Housing Authority
• FHA
Franklin D. Roosevelt
• Home loans at discounted
rates
• Increased home ownership
to low and middle class
The Rural Electrification
Administration helped
bring power to isolated
rural areas.
The government provided
price supports for agriculture.
New Deal programs changed the relationship
of the federal government to the American
farmer.
Roosevelt also believed that improving the
standard of living for industrial workers would
benefit the entire economy.
Wagner Act
Fair Labor
Standards Act
• recognized the right of workers to
join labor unions
• gave workers the right to
collective bargaining
• set a minimum wage
and maximum
workweek
• outlawed child labor
Franklin D. Roosevelt
• Republicans gained seats in
election of 1934 and 1938
• Challenged New Deal
• Took many to Supreme
Court
Franklin D. Roosevelt
• New Deal programs were
deemed unconstitutional
• 1938 Roosevelt suggested
to add 4 to 6 judges to court
and replace all over 70
Franklin D. Roosevelt
• This would have swayed the
court
• “Court Packing”
• Proofed to be a mistake for
Roosevelt
Franklin D. Roosevelt
• Failed however several
judges retired allowing
Roosevelt to appoint new
judges
• He got what he wanted
FDR AND THE NEW DEAL
•Legacy of the New
Deal
• 1. Extension of Federal
Power
• 2. Extension of the Power
of the President
FDR AND THE NEW DEAL
• 3. Deficit Spending
• 4. Federal Social
Programs
FDR AND THE NEW DEAL
• 5. Greater Concern for Labor
and Workers
• 6. Conservation Gains
• 7. Renewal of the faith in
Democracy
FDR AND THE NEW DEAL
• New Deal will influence lives to
the present
• Trouble on the Horizon
The New Deal gave women an opportunity to
increase their influence.
Eleanor Roosevelt inspired many
women in her leadership role
during the New Deal.
• Transformed the role of First
Lady from ceremonial to
political activist
• Traveled widely
• Campaigned for FDR
• Offered policy advice
• Wrote a newspaper column
African Americans were
hit especially hard by the
depression.
• The unemployment rate for
African Americans was
nearly 50 percent.
• Many people urged FDR to
help end racial
discrimination.
Roosevelt asked advice of members of his Black
Cabinet, such as Mary McLeod Bethune.
The New Deal’s Commissioner of Indian Affairs, John
Collier, tried to improve
living conditions for Native Americans.
The Bureau of Indian
Affairs encouraged
native religions,
languages, and
customs.
The Indian New Deal:
• Provided funds to build
schools and hospitals
• Created an Indian
Civilian Conservation
Corps
The Indian Reorganization Act of 1934, which restored tribal
control over native lands was considered the centerpiece of the
Indian New Deal.
Roosevelt’s New Deal programs also helped unify a
struggling nation.
• Social and ethnic divisions diminished.
• Immigrant communities gained a greater sense of
belonging.
• Programs such as the WPA and CCC allowed people
of different backgrounds to get to know one another.
With the New Deal, FDR broke from the tradition of
laissez-faire and greatly expanded the role of
government.
New Deal measures
strengthened
capitalism and
encouraged the postWorld War II economic
boom.
• Restored trust in the
banks and the stock
market
• Increased
homeownership
• Protected workers
• Helped modernize rural
America
Thousands of PWA and WPA projects benefited
communities—and local economies—across the country.
At the same time, the New Deal led to the rise of the welfare
state.
In a major policy change,
the New Deal established
the principle that the
federal government was
responsible for the welfare
of all Americans.
FDR also favored federal action to protect the
environment.
• The government established 12 million acres of
new national parks.
• The CCC restored forests and preserved the
environment.
Despite its benefits, the TVA had a mixed environmental
impact, disrupting natural habitats.
Finally, FDR and the New Deal changed the
nature of the presidency itself.