Chapter 16: The New Deal Section 1: Forging a New Deal Section 2: The New Deal’s Critics Section 3: The Last Days of the New Deal TRIVIA! The Constitution said that presidential elections are to be held in November. Inaugurations in March. WHY???? In the old days it took time to get ballots to the counters. It took time for the new president to get to Washington. “Lame Duck” Amendment That left the outgoing president in office for four months. No power – like a lame duck. Congress passed the “Lame Duck” Amendment the 20th Amendment in 1933 – moving the Inauguration to January. Franklin Roosevelt was the last president sworn in in March and the first one to be sworn into office in January. Who was Franklin Roosevelt 1882 – 1945 Rich and spoiled by his mother. Interest in politics came from his distant cousin, Theodore Roosevelt. Smart, well-educated, and ambitious Franklin Roosevelt Married his distant cousin, Eleanor Roosevelt in 1905 Six children, five survived to adulthood. Franklin Roosevelt Lawyer, politician, in New York and in government work. 1921 – contracted polio Never regained the use of his legs Franklin Roosevelt Fight for his life from polio Fight for his life between his mother and wife Franklin Roosevelt Campaigned for a “New Deal” Meant to recall his cousin TR’s “Square Deal” for voters Eleanor Roosevelt 1884 – 1962 Shy daughter of dysfunctional family. Raised mostly by her uncle TR. “Traditional” wife and mother until Franklin’s polio. Became his eyes and ears with the public. FDR: Restoring the Nation’s Hope Building public confidence in the future was essential to calm panic and create support. FDR: Restoring the Nation’s Hope “We have nothing to fear but fear itself.” FDR first inaugural FDR: Restoring a Nation’s Hope The Fireside Chats First Sunday of every month in the evenings. Spoke to the nation as if they were conversing in their living room. Explained what he was trying to do. Eleanor Roosevelt MY DAY columns and radio broadcasts FDR: Restoring a Nation’s Hope Eleanor: The Secret Weapon! The New Deal Recalling his cousin President Theodore Roosevelt’s “Square Deal” for Americans. Progressive belief that government can help people with their problems that TR had started in 1900. The First Hundred Days: The New Deal Roosevelt pushed program after program through Congress to provide relief, create jobs, and stimulate economic recovery. What would you do? With everything that was wrong in the country, what would you do – if you were president – to get people working and prosperous again? Roosevelt: The First Hundred Days Stabilize financial Institutions Provide relief and create jobs Regulate the economy Assist homeowners and farmers The TVA Stabilizing Financial Institutions People needed to be able to trust their banks. Closed ALL banks for ten days. BANKING HOLIDAY. Federal officials went to all banks and went through their records to check their financial health. 2/3 of banks passed the test and reopened. Stabilizing Financial Institutions Americans regained confidence in the banking system. Began to put money in the bank. Established FDIC Govt. regulators check bank books to make sure good loans are being given. Guarantee depositor’s money. Give money to banks to give out as loans to help a local economy. Stabilizing Financial Institutions Regulate the Stock Market. 1933: All companies had to provide information on their finances before they can offer stock for sale. Govt. regulation of buying on margin. Stockwatch and the SEC to monitor stock sales and business. FDR: The New Deal’s First Hundred Days Regulated the value of American money to get more exports of American farm goods and factory goods. FDR: Providing Relief and Creating Jobs Federal Emergency Relief Administration (FERA) Put money into PUBLIC WORKS PROGRAMS – building government facilities. FDR: Providing Relief and Creating Jobs CWA: Civil Works Administration – put the unemployed to work building or improving roads, parks, airports and other facilities. Four million employed. FDR: Providing Relief and Creating Jobs CCC: Civilian Conservation Corps 2.5 million unmarried young men put to work creating and maintaining forests, beaches and parks. $30 a month Free housing, food and medical care. FDR: Regulating the Economy NIRA: National Industrial Recovery Act – June 1933. NRA: National Recovery Act Create fair business practices in the country. Regulate fair wages / minimum wage Encouraged unions Controlled working conditions. FDR: First Hundred Days PWA: Public Works Administration Built Grand Coulee Dam in Washington New York City’s Triborough Bridge The causeway that connects Key West to the Florida mainland. FDR: Assisting Homeowners and Farmers Most middle-income homeowners were behind in their mortgages. HOLC – Home Owners’ Loan Corporation – refinanced mortgages. Made payments more manageable . 1 million loans – but for many it still wasn’t enough to help keep houses. FDR: Assisting Homeowners and Farmers FHA: Federal Housing Administration – improves housing standards and conditions, insures mortgages, stabilizes mortgage market. FDR: Help for Farmers AAA: Agricultural Adjustment Administration, offered subsidies to farmers. If corn was only 50-cents and a farmer needed $1 to stay in business – the government guarantees the other 50-cents. AAA Also encouraged farmers in what to plant and what not to plant. TVA: Tennessee Valley Authority May 1933: Helped farmers and created jobs in one of the least developed regions. Create cheap electric power and recreational opportunities in the entire Tennessee River valley. REA: Rural Electrification Agency 1930s: 90% of Americans in urban areas had electricity. Only 10% of rural areas had electricity. REA changed that! Brought power over 15 years to 98% of farms. Key Players of the New Deal Roosevelt’s “Brain Trust” Informal group of intellectuals who helped draft policies. Key Players of the New Deal: Appointments Frances Perkins: Secretary of Labor Mary McLeod Bethune: Director of the Division of Negro Affairs of the National Youth Administration Key Players in the New Deal Don’t forget Mrs. Roosevelt! Traveled widely for her husband. Advocated for causes. Took stands against Jim Crow laws. The Second New Deal: Second 100 Days More social welfare benefits Stricter controls over business Strong support for unions Higher taxes on the rich. Social Security System 1935 Old Age Pensions and Survivors Benefits Unemployment benefits Aid to dependent children, blind and disabled Did NOT include farmers or domestic servants until 1954 Roosevelt’s Popularity in 1936 Ran against Republican Alfred M. Landon. Electoral Vote: 528-8. Limitations of the New Deal Women African Americans Limitations of the New Deal: Women Codes in Work Projects allowed for women to be paid less than men. Men and boys were to receive preference for jobs. Limitations of the New Deal: African Americans Federal Work Projects in the South reinforced segregation. Not allowed to apply for management jobs or jobs on the TVA. Received lower wages than whites for the work they did get. Limitations of the New Deal: African Americans Because most African Americans were farmers or domestic servants – Social Security did not cover 2/3 of African Americans! African Americans in the New Deal Roosevelt would not push for an anti-lynching law. Too many Southern senators would have blocked every Roosevelt law if he tried to push through to retaliate. African Americans in the New Deal Segregated Northern neighborhoods often had stores owned by whites and employed only white workers. Boycotts “Don’t show where you can’t work” Political Critics of the New Deal It didn’t go far enough! There was still poverty in America. Government needed to own and operate factories and farms. Political Critics of the New Deal It goes too far!!! Republicans didn’t like it. Too much govt. in peoples’ lives. Wealthy people considered paying extra income tax unfair. Roosevelt was a traitor to the rich class. Political Critics of the New Deal Social Security penalized successful rich people by making them pay into the system. Social Security numbers was the first step to making ours a militaristic society. Dog tags with our SS numbers. Other Critics of the New Deal: Demagogues Leaders who manipulate people with half-truths, deceptive promises and scare tactics. Father Coughlin Huey Long Demagogue: Father Coughlin Radio Priest who sermonized to 10 million people. At first liked the New Deal, then turned against it. Openly anti-Semitic (hated and blamed Jews for problems in the country) Praised Hitler. Catholic Church shut him up in 1942. Demagogue: Huey Long Louisiana governor and US senator. Unlike other Southerners he did NOT use racism in campaigns. Improved education Medical care Public services Huey Long BUT: You had to support him to get the services! Broke from FDR because he wanted to raise income tax on the wealthy to 60% Gunned down by a rival. Looking Back on the New Deal Deficit – If the government SPENDS more than it collects in taxes. Yearly number Looking back on the New Deal Roosevelt thought it was more important to get people working. Thought more people working meant more taxes being collected to pay for programs. Deficit Spending. Looking back on the New Deal US Debt – YEARS of deficits add up. The New Deal’s Affect on Culture Federal funds given to support the arts. Literature The Grapes of Wrath – John Steinbeck Their Eyes Were Watching God – Nora Neale Hurston Let Us Now Praise Famous Men – Agee and Evans The New Deal’s Effects on Culture Radio and Movies Comedies on Radio – Jack Benny, George Burns, Gracie Allen Soap Operas – 15 minute dramas meant to create emotional responses in listeners. – Housewives were the target audience. The New Deal’s Effects on Culture Hollywood movies showed common people who triumphed over evil. Mr. Smith Goes to Washington The Wizard of Oz Zany comedies Marx Brothers Disney animation Snow White and the Seven Dwarves Mickey Mouse The WPA and the Arts FDR said arts were not luxuries that people should have to give up in hard times. WPA: Funded unemployed artists, musicians, historians, theater people and writers. The WPA and the Arts Historians wrote state guidebooks and collected life stories of immigrants, former slaves, etc. The WPA and the Arts Sent musicians and actors out to visit the remote areas of the country and perform. Sent musicians out to start community symphonies and give free music lessons. Collected American folk music. The WPA and the Arts Thousands of artists went to work painting 2,000 murals in mostly public buildings. 100,000 paintings 17,000 sculptures Photographs of people in the Depression. What did the New Deal Leave Behind? FDIC monitors banks TVA model of government planning providing jobs, power, flood control and recreation. SEC monitors the Stock Market and businesses. What did the New Deal Leave Behind? Social Security A Legacy of Hope Greatest Achievement of the New Deal Restoring hope in the nation. The nation was more ready for the sacrifices and organization needed for WWII.