FDR and The

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					Hoover and the Great
    Depression
                    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
    Failures
   Massive Suffering
          Causes of the Depression

   Uneven Distribution of income
   Stock Market Speculation-
   Excessive Credit
       Buying Stock on Margin
   Over Produciton of Farm Goods
Great Depression
   Suffering
 Okies and
“Hooverville”
                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
    budget
   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 governments help in
    relief of unemployment
   Volunteerism- private charities should help the needed
       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.

   No government deficit spending (he changes his
    mind in 1933 and begins deficit spending)
    The “Bonus
      March”
   Veterans of World
    War I
   Demonstrate,
    protest, camp out in
    Washington DC
   Hoover orders Army
    to remove
    protestors
   MacArthur and
    tanks are finally
    used
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?
•Huge personality        •New York, Wealthy Family
                         •Cousin to TR, Harvard Educated
•Energetic
                         •VP Candidate 1920
•Self confident          •1921 stricken with Polio- wheel chair
•Charismatic             •Under Secretary of the Navy, Wilson

•Consummate politician
                         •Governor of New York 1928 thru 32
        Democratic Nomination

   Gains nomination by bringing diverse
    groups together-
   Steals the Nomination from 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
                America
   "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 work…
Election of FDR
Election Map of 1932
        FDR and Democrats win

   Immediately Roosevelt calls together
    experts November –January
   The “Brain Trust”- political, business and
    Intellectuals/Academics
                   Key Idea

   The New Deal represents the greatest expansion
    of Federal power in the history of the country.

   The Federal Government will now take on the
    role of supporting Americans through regulation
    of economy= banking, labor supports, Securities
    and Exchange Commission, and Social
    Insurance= Social Security, Unemployment,
    Aid to Families with Dependent Children,
        What is the New Deal?

   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
       First 100 Days
   Inaugural speech March 4,
    1933
   “The only thing we have to
    fear is fear itself.”
   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
    economy.
      John Maynard
         Keynes
   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”
   60 million people
   Offer confidence and hope
   People begin to trust and look to him for
    help
New Deal Legislation (100 Days)
   Repeal Prohibition: 21st
    Amendment                       (TVA) Tennessee Valley
   Revenue Act- Tax Alcohol         Authority
   Agricultural Adjustment         (FDIC) Federal Deposit
    Act (AAA)                        Insurance Corporation
   (NRA) National Recovery         (CCC) Civilian
    Administration                   Conservation Corps
   (NIRA) National Industrial      (FERA) Federal
    Recovery Act                     Emergency Relief
   (PWA) Public Works               Administration Harry
    Administration                   Hopkins- leader
      Other New Deal programs

   (SEC) Security and Exchange Commission
   (FCC) Federal Communications
    Commission
                  Critics of FDR
                           Right
   American Liberty League-big business
   Raskob Chairman of GM
                            Left
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
   The New Deal allowed for labor protections:
       First under the National Recovery Administration-
        (NRA)
       Set wages and prices in effort to create jobs
       NRA is found unconstitutional by Supreme Court-
       Schechter Poultry vs United States
         FDR Was Pro-Union
            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
               John L. Lewis
                and the CIO
   Charismatic Leader
   President of the United Mine Workers
   Began as VP of American Federation of
    Labor
   Wanted to include mass production
    workers in AFL (UNSKILLED WORKERS)
   When AFL resists- he forms CIO
   Congress of Industrial Organizations
        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
    needed
   Supreme Court was limiting the
    effectiveness of programs
   They reflected conservative- Right Wing
    views= pro-business, reduce government
    interference
               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
    ton defeat
   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
    Government
                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
                   1933-1938
   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
    jobs
   Federal Reserve raises interest rates
       Causes tight credit- reduces the supply of
        credit few
   SS taxes cause money to come out of
    economy
FDR Moderates the New Deal and
       people lose jobs
      FDR and Minority
          Groups


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

   Eleanor was the greatest supporter of African
    American issues and civil rights
     Eleanor a Truly Compassionate
             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
            Discrimination
   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
    altogether.
   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
   Leader of the train porter’s
    union
   Becomes spokesman for
    mainstream African
    Americans
         Indian Reorganization
   The Dawes Plan of 1887, forced Native
    Americans to reorganize their living
    conditions-they had to divide land
    individually.
   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
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