FDR and The “New Deal”

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					Hoover and the Great
                    AP Outline

   Depression, 1929-1933
   Wall Street crash
   Depression economy
   Moods of despair
       Agrarian unrest
       Bonus march
   Hoover-Stimson diplomacy; Japan
         Hoover Key Terms

   Great Depression
   Stock Market Crash
   Hoover's Response to The Crash
   Chain Reaction-Unemployment-Bank
   Massive Suffering
          Causes of the Depression

   Uneven Distribution of income
   Stock Market Speculation-
   Excessive Credit
       Buying Stock on Margin
   Over Production of Farm Goods
Great Depression
 Okies and
                Hoover’s Response
   Hoover’s Initial Reaction:
       Conservative Republican
       Thought the poor economy would improve…
       Just another temporary down turn

   Government’s Reaction Made the Depression worse
   Idea- Government cuts (spending) expenditures to balance the
   Raised taxes
   Cut spending
   Significance-problematic action it took $ out of the economy
              Hoover Responses
   No government interference in the economy-
   “The Dole corrupts society” no government help in relief
    of unemployment
   Volunteerism- private charities should help the needy
       People should give to charity
       Called bankers to bolster financial market
       Called industrialist not to lower wages
   “Bank Relief”
   (RFC) Reconstruction Finance Corporation Hoover
    did try to help and support banks and corporations by
    offering loans that would spur the economy.
   Public Works- (limited) Hoover Dam
   No government deficit spending (he changes his
    mind in 1932 and begins deficit spending)
    The “Bonus
   Veterans of World
    War I
   Demonstrate,
    protest, camp out in
    Washington DC
   Hoover orders Army
    to remove
   MacArthur and
    tanks are finally
FDR and The “New Deal”
                        New Deal
   Franklin D. Roosevelt
   Background, ideas
   Philosophy of New Deal
   100 Days; "alphabet agencies"
   Second New Deal
   Critics, left and right
   Rise of CIO; labor strikes
   Supreme Court fight
   Recession of 1938
   American people in the Depression
   Social values, women, ethnic groups
   Indian Reorganization Act
   Mexican American deportation
   The racial issues
  Who is Franklin Delano Roosevelt?
                          •New York, Wealthy
•Huge                     •Cousin to TR, Harvard
personality               Educated
                          •VP Candidate 1920
                          •1921 stricken with
•Self confident           Polio- wheel chair
                          •Under Secretary of
•Charismatic              the Navy, Wilson
•Consummate               •Governor of New York
politician                1928 thru 32

•Father Figure
and Savior
        Democratic Nomination

   Gains nomination by bringing diverse
    groups together-
   Steals the Nomination from Al Smith

   # 1 factor in the election is ECONOMY
              Election of 1932
   FDR believed in        Platform
    Progressive ideals     Low Tariff
   The Government         Unemployment
    serves the people      Insurance
   Truly sympathetic to   Old Age Insurance
    the disadvantaged
   Government needs to
    reform business
       FDR pledged a new deal for
   "I pledge you, I pledge myself, to a new deal for
    the American people." FDR Democratic National
    Convention 1932

   “The Country demands bold persistent
    experimentation.” FDR

   But never said what it would be or how it would
      Inaugural Speech
Election of FDR
“A New Deal For the American People”
Election Map of 1932
        FDR and Democrats win

   Immediately Roosevelt calls together
    experts November –January
   The “Brain Trust”- political, business and
          Overview of FDR Admin
   The New Deal represents the
    greatest expansion of Federal      Funded Public Works
    power in the history of the
    country.                            Projects- WPA, WPA
   Created Foundation Social          Developed Regions of
    Insurance= Social Security,
    Unemployment, Aid to Families       the US- TVA
    with Dependent Children            Strengthened the
    Extended Regulation of
    Economy=regulation of               Democratic Party
    economy= banking, Securities        30yrs in power
    and Exchange Commission
   Supported the Modern labor
                                       Did not End the Great
    movement- labor supports            Depression
   Government intervention in
    Agriculture Economy
FDR Overview
   The EXTREME Politician
   4 Terms as President
   Democrats Controlled
    Congress Too
   Extremely Popular
   Many political rivals-on
    the left and the right
          What is the New Deal?
                The 3-Rs
   The “Brain Trust” created a series of
    programs created by the Federal
    Government that provided for changes to:
   Aid economic development (Recovery)
   Help citizens (Relief)
   Prevent another depression from occurring
    again. (Reform)
                   Three “R”s

   Relief for the people out of work
   Recovery for business and economy
   Reform of American economic institutions
       Laws to prevent another economic collapse
         First 100 Days
   Inaugural speech March 4,
   “The only thing we have to
    fear is fear itself.” Link to speech.
   Offered the American public             First item:
    hope!                                   Bank
   Emergency Session of                    Holiday-
    Congress to approve and                 Emergency
    enact new laws to aid the               Banking Act
      John Maynard
   Keynesian Economics
   Father of deficit spending
   Advocated the use of Government
    spending to mitigate the problems of
    Capitalism in an effort to spur and stabilize
    the economy
   See reading
          Mass Media: RADIO

   “Fireside Chats” “Link to Fireside Chat”
   60 million people
   Offer confidence and hope
   People begin to trust and look to him for
New Deal Legislation (100 Days)
   Repeal Prohibition: 21st
    Amendment                         (TVA) Tennessee Valley
   Revenue Act- Tax Alcohol           Authority
   Agricultural Adjustment Act       (FERA) Federal Emergency
    (AAA)                              Relief Administration Harry
   (NRA) National Recovery            Hopkins- leader
    Administration                    (CCC) Civilian Conservation
   (NIRA) National Industrial         Corps
    Recovery Act                      FHA Federal Housing
   (PWA) Public Works                 Administration
    Administration                    Currency, Banking and Stock
   (WPA) Works Progress               Market Reforms
   (FCC) Federal Communications
Social Insurance- Huge Change
   Federal Government now Steps in to insure the
    social welfare of citizens at a minimum level.

   SS Social Security Act 1935- old age pension
   AFDC Aid to Families with Dependent Children
   Unemployment Insurance
   Federal Aid to people with disabilities
          FDR’s Cabinet
Frances Perkins First woman in
Link            the Cabinet
Secretary of Labor

Harry                First Jew in the
Morgenthau           Cabinet:
Link                 Secretary of the
Harry Hopkins        Closest and
Link                 longest advisor to
Managed FERA         FDR. Lived in
                     White House.
                     All through the
                     war too
                  Critics of FDR
   American Liberty League-big business
   Raskob Chairman of GM
Father Coughlin      Dr. Townsend          Huey P. Long
                     Social Security       “Share the Wealth”
               2nd New Deal

   Goals to create more jobs
   Security against old age-unemployment,
    and illness
   Improve slums and housing
   Social Security-(1935)
   Unemployment Insurance
   Wagner Act- National Labor Relations Act
Labor Rises under the New Deal
   After 1933 Union Membership expands- normally
    this is not the case
   NIRA- sec 7 reaffirms rights of labor to organize
       Rights of labor to collective bargain
   The New Deal allowed for labor protections:
       First under the National Recovery Administration-
       Set minimum wages and prices in effort to create jobs
       NRA is found unconstitutional by Supreme Court-
       Schechter Poultry vs United States
          Supreme Court said Congress could not set prices
           for goods and strikes down NRA.
The New Deal was Pro-Union
   (Senator)Wagner Act
   The National Labor Relations Act gave
    workers the right to negotiate through unions
    of their choice.
   It also prevented employers from interfering
    with union activities
   Established the National labor Relations Board
    to oversee union issues
        Enforce Labor laws
               John L. Lewis
                and the CIO
   Charismatic Leader
   President of the United Mine Workers
   Began as VP of American Federation of
   Wanted to include mass production
    workers in AFL (UNSKILLED WORKERS)
   When AFL resists- he forms CIO
   Congress of Industrial Organizations
   Included unskilled        Women & Blacks Allowed
    workers                   More militant than AFL
   Auto workers              Overall Unions Grow:
   Steel workers             1932- 3million Union
   Textiles                   workers
   Laundries                 1937- 8 million union
   Tobacco                    workers
                              1941- 10 million union
                                                           Memorial Day

   1937: UNITED STATES.                           . Police break the picket line, arresting
   Republic Steel is owned by Cyrus                more than twenty people. As the
                                                    workers attempt to once again
    Eaton,                                          establish their legal picket line, more
   Republic routinely spies on its                 than two hundred police, many armed
    workers and fires anyone                        with non-regulation clubs and tear gas
    engaging in union activity.                     supplied by Republic Steel, fire over
                                                    two hundred shots at the workers and
   The company maintains a stock of                then attack with clubs.
    weapons including guns, tear gas
    and clubs at its various plants for
    use against workers                            When the slaughter is over, four
                                                    workers are dead, six will die later
                                                    from their injuries and about sixty
   When a walkout begins at Republic's             others are wounded, many seriously.
    Chicago mill, police enter the plant to         Many of the dead have been shot in
    drive union organizers out. The                 the back.
    strikers then form a picket line in front
    of the plant's main gate.                      The murders will be remembered in
                                                    the labor movement as the Memorial
                                                    Day Massacre.
        CIO vs. General Motors
   GM employed 240,000 workers
   Detroit/Flint Michigan area
   The first use of “Sit Down Strike” is seen
   Workers go to work, peaceful
    demonstration, refuse to work.

   Government sides with labor and no
    national guard and strike violence
                 GM Gives In
   GM gave in to strikers demands
   United Auto Workers is recognized
   Auto Workers and Steel Workers join the CIO-
   1937- 200,000 Auto Workers
   300,000 steel workers
   Membership grows 4 million
   Represents- pro-union stance of New Deal
   However- some violence still exist in labor
    disputes- Chrysler, Ford, and Republic steel
   How does FDR end up with a “friendly”
    Supreme Court?
           FDR and the Court
   Second Term- 1937
   Economy growing but New Deal still
   Supreme Court was limiting the
    effectiveness of programs
   They reflected conservative- Right Wing
    views= pro-business, reduce government
               The Court in 1937
   Older Generation
   Had different vision of society
   9 Judges- 7 appointed by Republicans
       80% of Judges in lower Fed courts

   Roosevelt was Frustrated:

   FDR proposed to add up to six new judges to
    the Supreme Court and up to 44 judges to lower
    federal tribunals. His scheme was advertised as
    court reform.
    FDR tries to Circumvent the Court

   FDR was afraid that the court would continue to
    limit New Deal reforms- like AAA and National
    Recovery Administration NRA

   Proposal sent to Congress:
   Face value- appoint more judges to make courts
    more efficient
   Truth: add more liberal judges to manipulate the
    process- pro-New Deal judges
   FDR is widely criticized
            FDR’s Plan Backfires

   Public outcry and criticism reduces plan to
   Court becomes more moderate
   Social Security Act upheld
   National labor Relations Board vs. Jones
    and Laughlin Steel:
       Wagner Act is upheld- (Pro Labor Decision)
     “A Shift in Time Saves Nine”

   Rational for Majority Decision- NLRB v
    Jones and Laughlin Steel
   “Unions served to maintain labor peace
    and prevent the disruption of interstate
    commerce; it was thus Constitutional for
    the Federal Government to promote
    Unionization through the mechanisms
    created in the Wagner Act.”
       Liberal Judges Appointed

   Justices Hugo Black
   Justices Frank Murphy
   Justices Felix Frankfurter

   Will have lasting impact on American
                Recession 1938

   New Deal is coming to an end
   1937- 2 new pieces of legislation enacted
       1938- Farm Bill = similar AAA-compensating
        farmers- controlling supply and pricing
       Fair Labor Standards Act-
          Prohibition of child labor
          Minimum wage= .40 cents hour

          40 hour work week
   New Deal is working- people are working
   Relief programs are being successful
   But- the economy is still very bad
       Unemployment
       Production down
   1938 Economy drops again
       Unemployment rises
       Stock Market drops
             Recession and FDR

   FDR thought the Economy was on the rise
   Cuts WPA- PWA –Federally sponsored
   Federal Reserve raises interest rates
       Causes tight credit- reduces the supply of
        credit few
   SS taxes cause money to come out of
FDR Moderates the New Deal and
       people lose jobs
      FDR and Minority

   FDR was sympathetic in general, to African
   Refused to push for a strong Federal Lynching
   He was afraid to alienate the Southern Democrats

   Eleanor was the greatest supporter of African
    American issues and civil rights
Eleanor a Truly
 Human Being

   Eleanor Roosevelt fought for African
    American civil rights and improvement
   She pressured FDR to listen and try to
    improve conditions for African Americans
    in the US
   Supported anti-lynching laws, abolition of
    poll taxes, and
        New Deal Programs and
   New Deal programs like:
   CCC- had segregated units and camps
   NRA paid blacks less
New Deal helped African Americans

   African-Americans, who for many years had
    loyally voted with the Republican Party, switched
    to the Democratic Party as a result of the
    popular New Deal reforms.

   Though discriminated against by nearly every
    New Deal agency, especially in the South, they
    were almost never excluded from assistance
   The New Deal provided African-Americans with
    immediate economic assistance that stood
    between them and complete destitution.
            The Black Cabinet
   Roosevelt was the first president in the
    modern period to even listen and or
    acknowledge African American needs

   He was not overtly supportive because of
    political considerations (Southern
    Democrats) but he did listen and allowed
    for some support
Phillip Randolph- African American
   Leader of the train porter’s
   Becomes spokesman for
    mainstream African
         Indian Reorganization
   The Dawes Plan of 1887, forced Native
    Americans to reorganize their living
    conditions-they had to divide land
   In the New Deal- the reorganization of
    Native land allowed for collective (group)
    ownership, and funding for education, and
    cultural programs-
   Native Americans were not left out.
          Mexican Deportation

   Many Mexican immigrants begin to arrive
    in the 1920s
   When the Depression hits, more come,
    but then a backlash against them occurs
   The competition over jobs causes
    resentment and deportation of over
    500,000 people, mostly in the south-west
            Document Interpretation
   Read the Question before you read documents
   Brainstorm all prior knowledge regarding question
   Create a thesis
   Read each document:
       Brainstorm prior-knowledge for each document-list on the DBQ
       Interpret each document:
       What do you know about the source, author?
       What is the context of the document?
       What is the main message of the document?
       What perspective is being portrayed?
       What is the purpose of the document?
       What is the significance of the document?
       What point could you make with this document in relation to the
       Read and brainstorm 5 documents
    (AAA) Agriculture Adjustment Act

   May 1933                    Effects
   Reduce Crop production      Helped raise prices
    to increase prices          Stabilized Agriculture
   Wheat, Cotton, Corn,        Helped land owners
    Hogs, Rice, Tobacco,
                                Supreme Court struck
   Set production limits        down 1936
   Subsidies- Government           Said constitution does not
    payments to Farmers to           allow government to
    not produce                      require limits on production
                                  Attempted to stabilize
and NRA
   National Industrial
    Recovery Act

   National Recovery

   Public Works
       Government projects to
        build infrastructure and
        provide jobs
       To help NIRA spend money
      Regional Planning: TVA
   Tennessee Valley Authority
   Dams created
   To provide electricity to rural America
   Works Progress Administration      Provided Jobs also to out of
   To provide Work Relief = 2.1        work:
    million Jobs                       Writers
   Gov $ in exchange for work         Artists
   Public buildings                   Musicians
   Schools                            Theater People- actors,
   Post Offices                        directors
   Airports
   Roads                              Funded Emergency Housing
   Bridges                             Division
                                            Provided Public Housing
   Parks
   Federal Emergency          CWA- Civilian works
    Relief Administration       Administration
   The Dole = direct gov      1933-34
    support cash               4 million people get
   FDR and Hopkins             jobs (public works)
    preferred Work Relief      CCC Civilian
                                Conservation Corps
                               Jobs for young men
                               In National Parks
                               Semi-Military
                               Planting trees and
                                building roads etc
        Currency, Banking, and Stock
               Market Reform
   Glass-Stengall Act (Huge)          Truth in Securities Act
       Bank Regulation                 (1933)
       Established FDIC (deposit          Requires truth in stock
        insurance)                          market
       Government regulation of       SEC (1934) Securities and
        banks                           Exchange Commission
   US leaves the Gold                     Regulates the stock market
    Standard (allows                       To prevent another crash
    government impact the
    value of the dollar)

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