Franklin D Roosevelt _ the New Deal - PowerPoint

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					Franklin D Roosevelt
   the New Deal
The New Deal: Big Picture
        • FDR promised America a „New Deal‟
           – It was not clear what new measures might be
           – It was clear that FDR intended to use the full
             power of the gov‟t to get US out of depression
           – This is the time to speak the truth frankly and boldly … So
             let me assert my firm belief that the only thing we have to
             fear is fear itself – nameless, unreasoning, unjustified
             terror which paralyses efforts to convert retreat into
             advance … This nation calls for action and action now …
             Our greatest primary task is to put people to work … We
             must act and act quickly
           – “in the event that the national emergency is still critical, I
             shall not evade the clear course of duty that will then
             confront me. I shall ask the Congress for the one
             remaining instrument to meet the crisis -- broad Executive
             power to wage a war against the emergency, as great as
             the power that would be given to me if we were in fact
             invaded by a foreign foe.”
The New Deal: Big Picture

        • FDR‟s priorities:
           –   Get Americans back to work
           –   Protect their savings and property
           –   Provide relief for sick, old & unemployed
           –   Get American industry & agriculture back on
               their feet
Fact File: The „Hundred Days‟
                 –   4 March: Roosevelt inaugurated
                 –   5 March: closed banks
                 –   9 March: Selected banks reopened
                 –   12 March: Roosevelt‟s first radio „fire-side
                     chat‟. Encouraged Americans to put their
                     money back into the banks. Many did so.
                 –   31 March: The Civilian Conservation Corps
                     (CCC) set up
                 –   12 May: The Agricultural Adjustment Act
                     (AAA) passed
                 –   18 May: The Tennessee Valley Authority
                     (TVA) created
                 –   18 June The National Industrial Recovery
                     (NIR) Act passed
The „Hundred Days‟ Begins
          – „Bank Holiday‟ start of „Hundred Days‟
          – FDR sent 15 proposals to Congress
              • Congress passed all 15

          ‘During the whole Hundred Days Congress,
            people didn’t know what was going on, but
            they knew something was happening,
            something good for them.’
                   – FDR advisor
Roosevelt‟s “Fire-side Chats”
               •   Roosevelt delivered these chats during
                   his presidency.
               •   Roosevelt's first fire-side chat was
                   March 12, 1933 – on banking.
                    –   Over 60 million Americans tuned in
               •   First time an American president used
                   mass media in this way
               •   30 radio broadcasts during presidency
                    –   Reassured American people that the nation
                        was going to recover and shared his hopes
                        and plans for the country.

               •   The chats ranged from 15-45 minutes
               •   80% of the words used were in the one
                   thousand most commonly used words
                   in the English dictionary.
               •   Families would gather around their
                   radios to listen.
Tackling the Banks First
       • FDR gets to work
          – FDR & advisors (later known as the ‘Brains
            Trust’) produced enormous range of sweeping
            measures, starting w/ the „Bank Holiday‟
       • March 5: FDR‟s „Bank Holiday‟
          – Day after inauguration
          – Ordered all banks closed for inspection of
            books by federal officials
          – Sound banks (about 5000) allowed to reopen
          – They were supported by gov‟t money
          – Rules & regulations set up to prevent reckless
            speculation like that leading to Wall Street
          – These two measures were the Emergency
            Banking Act and the Securities Exchange
Banking Fire-side Chat
       • The bank rescue of 1933 was probably the turning point
         of the Depression. When people were able to survive the
         shock of having all the banks closed, and then see the
         banks open up again, with their money protected, there
         began to be confidence. Good times were coming. It
         marked the revival of hope.
          – Raymond Moley, one of Roosevelt‟s advisors during
             the Hundred Days Congress session
Wordle of Banking Fireside Chat Images of Wordles are licensed .
Some New Deals…
             • Federal Emergency Relief
                – Tried to meet immediate needs of the
                – $500 million for soup kitchens,
                  blankets, nursery schools, employment

             • Civilian Conservation Corps
                – Sought to employ young men
                – Men signed up for six month tours of
                – Environmental projects in national
                – Most $$$ went to men‟s families
                – Employed 2.5 million men
Some New Deals…
                Agricultural Administration Act
            •   Prices had fallen so much that it was no longer
                profitable to even harvest the crops.

            •   FDR told Farmers to produce less crops or less

            •   This was controversial, because the Government
                paid the Farmers to do this.

            •   Meat and crops prices increased and the Farmers
                were able to make a profit again.

            •   However, many Farm workers became
                unemployed because there was less work to be
Some New Deals…
 Civil Works Administration
 •   This aimed to provide as many short term jobs as possible
 •   Built and improved roads, airports, schools and other public buildings.
 •   Employed to sweep up leaves in parks and to even frighten pigeons away
     from public buildings.

 Works Progress Administration
 •   Built some public buildings
 •   Gave work to writers, photographers, artists and actors.
     Unemployed writers were paid to write guide books on America.
     Actors were paid to tour the country and perform plays.
Some New Deals…
National Industrial Recovery Act (NIRA) set up two organizations:

                           – Public Works Administration (PWA)‫‏‬
                              • Used gov‟t $$$ to build schools, roads,
                                dams, bridges, airports
                              • Vital to future growth
                              • Employed millions of jobs in the short
                           – National Recovery Administration (NRA)‫‏‬
                               • Improved industrial working conditions
                               • Outlawed child labor
                               • Defined fair wages & sensible production
                               • Sought to get $$$ in hands of workers w/o
                                 overproducing goods & causing a slump
                               • Voluntary, w/ incentive (display NRA symbol)‫‏‬
                               • Over 2 million employers joined
Some New Deals…
 Social Security Administration
                            •     Social Welfare & Social Insurance
                            •     First time Federal gov‟t. got that
                                  involved. Took power away from
                            •     For old age, poverty,
                                  unemployment, and widows and
                                  fatherless children.
                            •     Pay into during your working years
                                  (payroll tax)‫‏‬
                            •     Can retire at 60 and start collecting
                            •     Still in system today
The Tennessee Valley
      • Tennessee Valley touched seven states
      • Great physical problems
         –   Wet season: Tennessee River flooded
         –   Dry season: river reduced to trickle
         –   Farmland in valley was dust bowl
         –   Soil erosion turning valley to desert
      • Great social problems
         – T V folks lived in poverty
         – Most had no electricity
         – No one state could fix problems &
           coordinating seven states was difficult
FDR Signs TVA Into Law
       • FDR set up Tennessee Valley Authority
          –   Independent of states
          –   First goal to build dams to harness river
          –   Dams irrigated lands & produced electricity
          –   Created thousands of new jobs
       • TVA still operates, producing electricity
         at rates below the national average
Fact File: Achievements
                     • Above all, it restored confidence
                       and stopped investors pulling
                       money out of the banks
                     • Banking measures saved 20% of
                       home owners and farmers from
                     • Farmers were 50% better off under
                       AAA by 1936
                     • TVA brought electrical power to
                       underdeveloped areas
                     • Public Works Administration
                       created 600,000 jobs and built
                       landmarks like San Francisco‟s
                       Golden Gate Bridge
                     A New Spirit
                     • The Hundred Days had an immediate effect
                        – Restored confidence in gov‟t
                        – Reporters traveled the country, reported new
                          spirit seen around the country
                        – Historians agree that FDR‟s bold & decisive
                          action did have a marked effect on the American
                                  As Roosevelt described it, the ‘New Deal’ meant that the
                                forgotten man, the little man, the man nobody knew much
                                  about, was going to be dealt better cards to play with …
                                  He understood that the suffering of the Depression had
                                   fallen with terrific impact upon the people least able to
 Frances Perkins                 bear it. He knew that the rich had been bit hard too, but
Secretary of Labor               at least they had something left./ But the little merchant,
                                  the small householder and the home owner, the farmer,
                                    the man who worked for himself – these people were
                                desperate. And Roosevelt saw them as principle citizens of
                                 the United States, numerically and in their importance to
                                   the maintenance of the ideals of American democracy.
                                       Frances Perkins, The Roosevelt I Knew, 1947. Perkins was
                                      Labor Secretary under Roosevelt from 1933. She was the first
                                             female Cabinet member in the nation‟s history
      Thoughts on the Hundred Days
• Wandering around the country with one of New York’s baseball teams, I find
  that [what was] the national road to ruin is now a thriving thoroughfare. It
  has been redecorated. People have come out of the shell holes. They are
  working and playing and seem content to let a tribe of professional warriors do
  their worrying for them
   – Rudd Rennie, a journalist, describes what he saw around the country in the
      early days of the New Deal. From Changing the Tune from Gloom to
      Cheer, 1934.
• The CCC, the PWA, and similar government bodies (the alphabet agencies as
  Americans called them) made work for millions of people. The money they
  earned began to bring back life to the nation's trade and businesses. More
  customers appeared in the shops … As people started to buy again,
  shopkeepers, farmers and manufacturers began to benefit from the money the
  government was spending on work for the unemployed. This process was
  described by Roosevelt as ‘priming the pump’. By this he meant that the money
  the Federal Government was spending was like a fuel, flowing into the nation’s
  economic machinery and starting it moving again.
   – D B O‟Callaghan, Roosevelt and the USA, published in 1966
Was the New Deal a Success?
Aspect 1: Attitudes
      – ND restored Americans‟ faith in gov‟t
      – ND huge gov‟t program. Not possible before
        FDR. Set tone for future gov‟t policies to help
      – ND handled billions $$$ w/o corruption.
        Harold Hopkins distributed $10 Billion yet
        never earned more that $15,000/year. Sec.
        Interior Harold Ickes tapped employee phones
        to ensure no corruption. Ickes also employed
        black Americans, campaigned against anti-
        Semitism & supported Native American causes
      – ND divided USA. FDR & advisors called
        Communists, blamed for undermining
        American values. Ickes & Hopkins accused
        of being anti-business for supporting unions
      – ND undermined local gov’t
Aspect 2: Industrial Workers
  – NRA & 2nd ND strengthened labor unions against industrial giants
  – FDR‟s gov‟t generally sided w/ unions & pressured companies to
    negotiate w/ them
  – Some labor unions combined to form Committee for Industrial
    Organization (CIO) in 1935. This union was large enough to
    negotiate w/ industrial giants
  – Union of Automobile Workers (UAW) was recognized by the two
    most anti-union corporations: General Motors (after major sit-in
    strike in 1936) & Ford (after ballot in 1941)‫‏‬
  – Big business remained immensely powerful in the USA despite
    being challenged by the gov’t
  – Unions were treated w/ suspicion by employers (fear on
    Socialism or worse … Communism!)‫‏‬
  – Many strikes broken up by brutal violence in the 1930s (Ford
    was among the worst using this tactic)‫‏‬
  – Companies such as Ford, Chrysler & Republic Steel employed
    their own thugs or controlled local police forces
Aspect 3: Unemployment & the Economy
    –   ND created millions of jobs
    –   Stabilized American banking system
    –   Cut # of business failures
    –   TVA & other programs brought work & improved quality of life to
        deprived parts of USA
    –   ND projects provided USA w/ valuable infrastructure such as schools,
        roads, power stations
    –   ND never solved underlying economic problems
    –   US economy took longer to recover than most of Europe
    –   Confidence remained low – throughout 1930s Americans spent &
        invested only 75% of what they had before 1929
    –   When FDR cut ND budget in 1937 USA slid back into recession
    –   There were still 6 million unemployed in 1941
    –   Only the USA’s entry into WWII brought an end to unemployment
Aspect 3: Unemployment & the Economy
           ND               FDR cuts       War         USA
          Starts   2nd ND   ND budget   breaks out    enters
                                        in Europe    war Dec

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