The New Deal 1933 -1941 FDR s New

The New Deal 1933 -1941

FDR's New Deal In A Nutshell Franklin Delano Roosevelt assumed the presidency at the darkest hour of the Great Depression, pledging to restore prosperity through expansive government intervention in the economy. While Roosevelt's New Deal did not, in fact, end the Great Depression, it did permanently alter American society and create many of the structures that sustained prosperity following World War II.

Why Should I Care? Why does Franklin Delano Roosevelt still matter, sixty years after he died just 82 days into his unprecedented fourth term in the White House? Because FDR made the modern presidency. Because the New Deal made modern American society. Whether you love FDR's politics and policies or loathe them, it's impossible to imagine the world we live in today without them. That's why Franklin Delano Roosevelt still matters.

Terms and People • Franklin D. Roosevelt – American President elected at the height of the Great Depression • Eleanor Roosevelt – FDR’s wife and First Lady; known for her active role in the administration • New Deal – programs and legislation enacted by FDR during the Great Depression to promote economic recovery and social reform • fireside chat – informal radio broadcast in which FDR communicated with the American people • Federal Deposit Insurance Corporation (FDIC) – government agency that insures bank deposits

Terms and People (continued) • Tennessee Valley Authority (TVA) – government agency that built dams in the Tennessee River valley to control floods and generate electric power • Civilian Conservation Corps (CCC) – New Deal program that provided young men with jobs on environmental conservation projects • National Recovery Administration (NRA) – New Deal agency that promoted economic recovery by regulating production, prices, and wages

Terms and People (continued) • Public Works Administration (PWA) – government agency that improved the nation’s infrastructure and created millions of jobs • Charles Coughlin – Roman Catholic priest who accused FDR of not doing enough to end the depression • Huey Long – Louisiana Senator and New Deal critic

Early New Deal Policies

How did the New Deal attempt to address the problems of the depression? As poverty and homelessness gripped the country, many Americans wondered if the nation could survive the crisis. They hoped a new leader could bring back prosperity—and their faith in democracy.

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.

President Herbert Hoover 1929 -1933

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

President Franklin D. Roosevelt 1933 -1945

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.

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FDR’S NEW DEAL q. RELIEF q. REFORM q. RECOVERY MANY OF HIS PROGRAMS COMBINED ELEMENTS OF ALL THREE 16

PROGRAM TYPE PROGRAM PURPOSE RELIEF FEDERAL EMERGENCY RELIEF ACT (FERA) PROVIDE FUNDS TO STATE RELIEF AGENCIES (WELFARE, UNEMPLOYEMENT) RELIEF WORKS PROGRESS ADMINISTRATION (WPA) GAVE UNEMPLOYED WORK IN BUILDING CONSTRUCTION RELIEF CIVILIAN CONSERVATION CORPS (CCC) PROVIDE JOBS TO YOUNG UNMARRIED MEN TO WORK ON CONSERVATION AND RESOURCE PROJECTS RELIEF NATIONAL YOUTH ADMINISTRATION (NYA) PROVIDE EDU, JOBS, RECREATION FOR AGES 16 -25

PROGRAM PURPOSE RECOVERY FARM CREDIT ADMINISTRATION (FCA) GIVE LONG TERM MORTGAGES TO FARMERS RECOVERY AGRICULTURAL ADJUSTMENT ACT (AAA) PAYING FARMERS $ TO LOWER PRODUCTION RECOVERY RECONSTRUCTION FINANCE CORPORATION (RFC) GOV’T GAVE $ TO OWNERS OF COMPANIES RECOVERY PUBLIC WORKS ADMINISTRATION (PWA) SPONSORED MASSIVE PUBLIC WORKS PROJECTS (DAMS, ETC) RECOVERY HOME OWNERS LOAN CORPORATION (HOLC) PROVIDE LOW COST MORTGAGE FINANCING RECOVERY FEDERAL HOUSING AUTHORITY (FHA) PROGRAM IMPROVE HOUSING CONDITIONS AND STANDARDS (HOME FINANCING) TYPE RECOVERY REFORM PROGRAM PURPOSE ESTABLISHPROVIDE FUNDS TO STATE RELIEF FAIR LABOR AND BUSINESS PRACTICES RELIEF FEDERAL EMERGENCY NATIONAL INDUSTRIAL RECOVERY ACT N(I)RA RELIEF ACT (FERA) AGENCIES (WELFARE, INSURED BANK DEPOSITS UP TO $5, 000 FEDERAL DEPOSIT INSURANCE UNEMPLOYEMENT) CORPORATION (FDIC) RELIEF WORKS PROGRESS GAVE UNEMPLOYED WORK IN ADMINISTRATION (WPA) BUILDING CONSTRUCTION REGULATED THE STOCK MARKET AND PROTECTED INVESTORS SECURITIES EXCHANGE COMMISSION RELIEF CIVILIAN PROVIDE JOBS TO YOUNG UNMARRIED (SEC) CONSERVATION CORPS MEN TO WORK ON CONSERVATION SOCIAL SECURITY ACT PROVIDE OLD AGE PENSIONS (CCC) AND RESOURCE PROJECTS TO BUILD POWER PLANTS, EXTEND POWER LINES, AND WIRING RURAL ELECTRIFICATION ADMINISTRATION LOANS PROVIDE EDU, JOBS, RECREATION FOR HOMES RELIEF NATIONAL YOUTH (REA) ADMINISTRATION (NYA) AGES 16 -25 REFORM TENNESSEE VALLEY AUTHORITY (TVA) PROVIDE HYDROELECTRIC POWER, FLOOD PROTECTION, AND REC IN TN REFORM WAGNER ACT LABOR UNIONS RIGHT TO COLLECTIVE BARGAINING REFORM FAIR LABORS STANDARD ACT ABOLISH CHILD LABOR AND ESTABLISH A MINIMUM WAGE

FDR USED THE RADIO GIVING “FIRESIDE CHATS” TO 19 EXPLAIN HIS PROGRAMS TO THE AMERICAN PEOPLE

FDR’S PHILOSOPHY KEYNESIAN OR "PUMP PRIMING" ECONOMICS BASED ON THE WORK OF BRITISH ECONOMIST JOHN MAYNARD KEYNES. HE ARGUED MONEY SHOULD BE INVESTED IN THE PEOPLE, THE WORKING CLASS. SPENDING WOULD THEN INCREASE WITH NEW MONEY IN CIRCULATION. AS SPENDING INCREASED IT WAS EXPECTED BUSINESS WOULD EXPAND TO MEET THE NEW DEMAND HIRE NEW WORKERS. THIS WOULD BRING ON MORE SPENDING AND MORE GROWTH. THIS PLAN WAS THE OPPOSITE OF THE REPUBLICAN PLAN ASCRIBED TO BY HOOVER AND EARLIER LEADERS. THEY HAD BELIEVED IN SUPPLY SIDE OR "TRICKLE DOWN" ECONOMICS. IN THIS PHILOSOPHY MONEY WAS TO BE INVESTED AT THE TOP, IN BUSINESS. THEN BUSINESSES WOULD EXPAND, HIRE NEW WORKERS AND THIS IN TURN WOULD SPUR ON SPENDING AND FURTHER ECONOMIC GROWTH. 20

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. ”

FDR’S BRAIN TRUST HE SURROUNDED HIMSELF WITH BRILLIANT SOCIAL, ECONOMIC AND POLITICAL THINKERS AS ADVISORS TO HELP DEVELOP STRATEGIES TO PULL THE NATION OUT OF THE DEPRESSION. MANY OF THEIR IDEAS CAME FROM THE BRITISH ECONOMIST JOHN MAYNARD KEYNES. BRAIN TRUST MEMBERS -Harry Hopkins – -Henry Morgenthau -Louis Lowe -Cordell Hull -Frances Perkins – -Sam Rosenman -Raymond Moley -Rexford Tugwell TUGWELL ROSENMAN 22

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.

Roosevelt began with the bank crisis. FDR declared a four-day bank holiday, closing the banks so they could get their accounts in order. In the first of many fireside chats, FDR explained that his actions were to halt bank failures. When the banks reopened, there were no more runs on the banks.

New Leadership: Full speed ahead

FDR took other steps to reform the financial system. Federal Deposit Insurance Corporation (FDIC) Insured bank deposits Securities and Exchange Commission (SEC) Regulated the stock market Such measures helped restore confidence in the economy.

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 (AAA) sought to end overproduction and raise crop prices. • The Tennessee Valley Authority (TVA) built dams to control floods and generate electricity.

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

C. C. C. Boys at Work 18 -25 years old who had a portion of their monthly check withheld and sent back to their families.

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.

Roosevelt also took steps to speed economic recovery. National Recovery Administration (NRA) • Established codes of fair competition • Set minimum wages for workers and minimum prices for goods

POLITICAL CARTOONS ON THE FIRST 100 DAYS 32 OF FDR’S LEGISLATION

THE NEW DEAL COMES UNDER ATTACK FROM BOTH THE LEFT AND RIGHT “IT SEEMS CLEAR THE HONEYMOON IS OVER” (HARLAN STONE, SUPREME COURT JUSTICE COMMENTING ON THE GROWING OPPOSITION TO THE NEW DEAL) LEFT RIGHT LIBERAL CONSERVATIVE THOSE WHO WANTED THE GOVERNMENT TO DO MORE TO END THE DEPRESSION BY INTERVENING IN THE ECONOMY THOSE WHO WANTED THE GOVERNMENT TO STAY OUT OF THE ECONOMY AND LET THE DEPRESSION CURE ITSELF POLITICAL SPECTRUM 33

Not everyone, however, supported the New Deal. Conservatives charged that it was making the government too powerful. • Destroying free enterprise • Undermining individualism Such critics formed the American Liberty League.

WHO WAS IN THE LIBERTY LEAGUE AND WHY DID THEY OPPOSE FDR AND THE NEW DEAL? v. REPUBLICANS AND CONSERVATIVE DEMOCRATS v. AL SMITH, FORMER DEMOCRATIC GOVERNOR OF NEW YORK AND DEMOCRAT PRESIDENTIAL CANDIDATE IN 1928 v. NORTHERN INDUSTRIALISTS AND EXECUTIVES OF MAJOR CORPORATIONS SUCH AS DUPONT AND GENERAL MOTORS v. THOSE WHO BELIEVED NEW DEAL PROGRAMS WOULD BE PAID FOR BY NEW TAXES ON THE RICH AND BUSINESS v. THOSE WHO BELIEVED THE NEW DEAL RAN COUNTER TO THE AMERICAN TRADITION OF INDIVIDUAL RESPONSIBILITY, LOCAL CONTROL, AND THE PRINCIPLES OF LAISSEZ-FAIRE WHERE THE GOVERNMENT DID NOT REGULATE BUSINESS 35 v. THEY FADED AWAY AFTER THE 1936 ELECTION

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 Proposed giving each person 60 or older $200 a Townsend 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

THE LEFT-WING CRITICS THEY WERE A MORE DIVERSE AND COLORFUL GROUP WITH NONTRADITIONAL PLANS FOR ENDING THE DEPRESSION v. HUEY LONG v. FATHER CHARLES COUGHLIN v. FRANCIS E. TOWNSEND v. UPTON SINCLAIR 38

HUEY LONG “EVERY MAN A KING” HUEY WAS GOVERNOR AND LATER A SENATOR FROM LOUISIANA. AS GOVERNOR HE INTRODUCED MANY REFORMS BUT WAS ACCUSED OF ACTING 39 LIKE A DICTATOR.

BY HUEY P. LONG, UNITED STATES SENATOR PEOPLE OF AMERICA: IN EVERY COMMUNITY GET TOGETHER AT ONCE AND ORGANIZE A SHARE-OUR-WEALTH SOCIETY--MOTTO: EVERY MAN A KING PRINCIPLES AND PLATFORM: 1. TO LIMIT POVERTY BY PROVIDING THAT EVERY DESERVING FAMILY SHALL SHARE IN THE WEALTH OF AMERICA FOR NOT LESS THAN ONE THIRD OF THE AVERAGE WEALTH, THEREBY TO POSSESS NOT LESS THAN $5, 000 FREE OF DEBT. 2. TO LIMIT FORTUNES TO SUCH A FEW MILLION DOLLARS AS WILL ALLOW THE BALANCE OF THE AMERICAN PEOPLE TO SHARE IN THE WEALTH AND PROFITS OF THE LAND. 3. OLD-AGE PENSIONS OF $30 PER MONTH TO PERSONS OVER 60 YEARS OF AGE WHO DO NOT EARN AS MUCH AS $1, 000 PER YEAR OR WHO POSSESS LESS THAN $10, 000 IN CASH OR PROPERTY, THEREBY TO REMOVE FROM THE FIELD OF LABOR IN TIMES OF UNEMPLOYMENT THOSE WHO HAVE CONTRIBUTED THEIR SHARE TO THE PUBLIC SERVICE. 4. TO LIMIT THE HOURS OF WORK TO SUCH AN EXTENT AS TO PREVENT OVERPRODUCTION AND TO GIVE THE WORKERS OF AMERICA SOME SHARE IN THE RECREATIONS, CONVENIENCES, AND LUXURIES OF LIFE. 5. TO BALANCE AGRICULTURAL PRODUCTION WITH WHAT CAN BE SOLD AND CONSUMED ACCORDING TO THE LAWS OF GOD, WHICH HAVE NEVER FAILED. 6. TO CARE FOR THE VETERANS OF OUR WARS. 7. TAXATION TO RUN THE GOVERNMENT TO BE SUPPORTED, FIRST, BY REDUCING BIG FORTUNES FROM THE TOP, THEREBY TO IMPROVE THE COUNTRY AND PROVIDE EMPLOYMENT IN PUBLIC WORKS WHENEVER AGRICULTURAL SURPLUS IS SUCH AS TO RENDER UNNECESSARY, IN WHOLE OR IN PART, ANY PARTICULAR CROP. 40

HUEY LONG’S SHARE OUR WEALTH PROGRAM HE WANTED THE FEDERAL GOVERNMENT TO CONFISCATE ALL INCOMES OVER ONE MILLION DOLLARS ($13 MILLION IN 2002 DOLLARS) AND USE THE MONEY TO GIVE EACH FAMILY A HOME AND AN INCOME OF $2000 ($26, 000 IN 2002 DOLLARS) A YEAR. HIS PROGRAM WAS EXTREMELY POPULAR AND HE DECLARED HIMSELF A CANDIDATE FOR PRESIDENT FOR THE 1936 ELECTION. HE WAS MURDERED IN SEPTEMBER OF 1935 AND HIS MOVEMENT COLLAPSED. Huey’s barbeque speech 41

FRANCIS E. TOWNSEND, A DOCTOR IN HIS 60’S CAME UP WITH THE TOWNSEND PLAN WHICH WOULD GIVE EVERYONE OVER 60 $200 ($2523 IN 2002 DOLLARS) A MONTH TO SPEND IN 30 DAYS. 42

FATHER CHARLES COUGHLIN “THE RADIO PRIEST” POPULAR CATHOLIC PRIEST WHO HAD A LARGE RADIO AUDIENCE. HE WAS AN EARLY SUPPORTER OF FDR BUT CHANGED AND BECAME A BITTER CRITIC. HE WAS BOTH AN ANTI- SEMITE AND ANTICAPITALIST "The great betrayer and liar, Franklin D. Roosevelt, who promised to drive the money changers from the temple, had succeeded [only] in driving the farmers from their homesteads and the citizens from their homes in the cities. . . I ask you to purge the man who claims to be a Democrat, from the Democratic Party, and I mean Franklin Double. Crossing Roosevelt. " 43

UPTON SINCLAIR AND THE EPIC MOVEMENT IN CALIFORNIA ANTI- SINCLAIR AD FROM THE 1934 ELECTION SOCIALIST UPTON SINCLAIR, AUTHOR OF THE JUNGLE, RAN FOR GOVERNOR OF CALIFORNIA IN 1934 AS A DEMOCRAT. HIS EPIC (END POVERTY IN CALIFORNIA) ENVISIONED THE STATE BUYING UP CLOSED FACTORIES AND UNUSED LAND PUTTING UNEMPLOYED CALIFORNIANS TO WORK MAKING GOODS AND GROWING FOOD. HE WAS SOUNDLY DEFEATED IN THE ELECTION AND HIS EPIC PROGRAM DIED SOON AFTER. 44

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Despite the critics, the New Deal was popular with most Americans. In his inaugural address, Roosevelt told Americans, “the only thing we have to fear is fear itself. ” FDR succeeded in reducing people’s fear, but the depression was far from over.

Second New Deal

Terms and People • Second New Deal – legislative activity begun by Franklin D. Roosevelt in 1935 to solve problems created by the Great Depression • Works Progress Administration (WPA) – agency that provided job relief through public-works projects • John Maynard Keynes – British economist who supported the policy of deficit spending to help end the depression • pump priming – economic theory that favored public works projects because they put money in the hands of consumers who would buy more goods, stimulating the economy

Terms and People (continued) • Social Security Act – 1935 law that created a pension system for retirees, established unemployment insurance, created insurance for victims of work-related accidents, and provided aid for poverty-stricken mothers and children, the blind, and the disabled • Wagner Act – law that recognized the right of employees to join labor unions and gave workers the right to collective bargaining • collective bargaining – process in which employers negotiate with labor unions about hours, wages, and other working conditions

Terms and People (continued) • Fair Labor Standards Act – law that set a minimum wage and a maximum workweek and outlawed child labor • Congress of Industrial Organizations (CIO) – labor organization founded in the 1930 s that represented industrial workers • sit-down strike – labor protest in which workers stop working and occupy the workplace until their demands are met • court packing – FDR plan to add more justices to the Supreme Court after the Court ruled some New Deal legislation unconstitutional

What major issues did the second New Deal address? As depression continued to grip the nation, President Franklin D. Roosevelt continued to search for solutions. Many of the New Deal programs created by FDR continue to impact Americans today.

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

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.

Economists such as John Maynard Keynes disagreed. • Public-works projects put money in the hands of consumers. • Consumer spending would stimulate the economy. • Deficit spending was needed to end the depression. • Keynes called this idea pump priming. Deficit spending continued under the second New Deal.

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.

The Social Security Act created a pension system for retirees. It also provided • unemployment insurance • insurance for victims of work-related accidents • aid for poverty-stricken mothers and children, the blind, and the disabled

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SOCIAL SECURITY CREATED MASSIVE AND COMPLEX BOOKKEEPING JOBS FOR FEDERAL AND STATE EMPLOYEES 58

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Such benefits helped reduce poverty among the nation’s elderly.

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.

The government also funded irrigation systems, dams, and other water projects in the West. • The Bonneville Dam in the Pacific Northwest controlled flooding and provided electricity to a vast number of citizens. • The government funded the complex Central Valley irrigation system in California.

Roosevelt also believed that improving the standard of living for industrial workers would benefit the entire economy. Wagner Act • recognized the right of workers to join labor unions Fair Labor Standards Act • set a minimum wage and maximum workweek • gave workers the right to collective bargaining • outlawed child labor

As union activity rose, a split emerged in the American Federation of Labor. The AFL represented skilled workers who joined craft or trade unions. The union made little effort to organize workers in the major industries. John L. Lewis formed the Congress of Industrial Organizations (CIO) to unionize industrial workers.

CHILDREN OF SIT-DOWN STRIKERS PARADING IN FLINT ON 2/3/37 65

STRIKES IN THE 1930’S The General Motors Sit-Down Strike Starting December 30, 1936, this building was occupied for 44 days by striking members of the United Auto Workers. The strikers acting in concert with other plants that were closed or to be closed by sit-downs, asked for recognition of the union as sole bargaining representative for all hourly-rated employees of General Motors Corporation. Court injunctions and threats of eviction by both the sheriff of Genesee County and the Flint Police Department did not sway the strikers from their goal. An agreement was reached in Detroit on February 11, 1937, that changed the relationships between the company and its employees. The settlement led to complete unionization of the auto industry in ensuing years and added stability for the union and the company. 66

BATTLE OF THE OVERPASS, MAY 1937: UNION LEADERS WERE BEATEN WHILE PEACEFULLY AIDING WOMEN HANDING OUT LITERATURE. THEY WERE ATTACKED BY “SERVICEMEN” WHO WERE ACTUALLY THUGS AND CRIMINALS HIRED BY HENRY FORD TO STOP UNIONS WITH VIOLENCE. THESE PICTURES WERE PUBLISHED AND GAINED MUCH SUPPORT FOR UNIONS 67

GROWTH IN UNION MEMBERSHIP UNDER FDR 68

In 1936, the CIO’s United Auto Workers Union staged a sit-down strike at General Motors. After 44 days, GM recognized the new union. This success led to others, and union membership soared.

After an overwhelming reelection victory, FDR decided to fight back against the Supreme Court, which had struck down many of his programs. • In 1937, FDR proposed adding up to six new Justices to the Court. • Critics attacked his court-packing plan as an attempt to expand presidential power. • The failed plan weakened Roosevelt politically. • However, 1937 marked a turning point in the history of the Supreme Court. It more willingly accepted a larger role for the federal government.

FDR AND THE SUPREME COURT: 1937 “COURT PACKING SCHEME” THE SUPREME COURT HAD DECLARED FIVE NEW DEAL PROGRAMS UNCONSTITUTIONAL IN 1935. IN 1936, THE COURT STRUCK DOWN FOUR OTHER NEW DEAL INITIATIVES. FDR BEGAN TO SEE THE SUPREME COURT AS AN ENEMY OF THE NEW DEAL AND HIS ATTEMPTS TO END THE DEPRESSION. TO COUNTER THE SUPREME COURT'S NEGATIVE RULINGS HE PROPOSED WHAT BECAME KNOWN AS THE “COURT PACKING SCHEME” WHICH WAS A PLAN TO INCREASE THE NUMBER OF FRIENDLY JUSTICES ON THE SUPREME COURT. THE POLITICAL CARTOONS ON THE FOLLOWING SLIDES TRACE THE EVOLUTION OF FDR’S STRUGGLE TO BRING THE COURT UNDER WHAT SOME CALLED HIS CONTROL. 71

IN EARLY 1937 ROOSEVELT PROPOSED A JUDICIARY “REORGANIZATION” BILL TO CONGRESS. THIS BILL WOULD ALLOW THE PRESIDENT TO APPOINT ONE NEW JUSTICE TO THE SUPREME COURT FOR EVERY CURRENT JUSTICE WHO HAD REACHED 70 YEARS OF AGE AND FAILED TO RETIRE. UNDER ROOSEVELT’S PLAN THE SUPREME COURT COULD HAVE AS MANY AS 15 JUSTICES. MANY CONSERVATIVES SAW HIS “COURT PACKING SCHEME” AS PROOF THAT FDR WANTED TO BE A DICTATOR. ROOSEVELT’S SUPPORTERS BELIEVED THAT THE COURT HAD TO BE MODIFIED SO THE NEW DEAL COULD MOVE AHEAD IN BRINGING THE NATION OUT OF THE GREAT DEPRESSION. 72

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CARTOONS SUPPORTING FDR’S COURT 74 REORGANIZATION PLAN

75 CARTOONS WARNING OF THE DANGERS OF “COURT PACKING”

FDR WAS HURT BY HIS APPOINTMENT OF ONE TIME KKK MEMBER, HUGO BLACK, IN AUGUST OF 1937, TO THE SUPREME COURT. ALTHOUGH HUGO BLACK HAD BRIEFLY BEEN A KLAN MEMBER IN THE 1920’S; HE WAS A LIBERAL SUPPORTER OF FDR AND AFTER BEING CONFIRMED, WAS AN ADVOCATE FOR CIVIL RIGHTS UNTIL HIS RETIREMENT IN 1971. 76

DESPITE FDR’S BEST EFFORTS THE JUDICIARY REORGANIZATION BILL FAILED TO PASS AND HE SUFFERED HIS FIRST MAJOR POLITICAL DEFEAT. HOWEVER, THE SUPREME COURT BEGAN UPHOLDING SOME NEW DEAL LEGISLATION WITH SEVERAL OF THE JUSTICES REVERSING THEIR PREVIOUS POSITIONS. IT APPEARED THE COURT MODERATED ITS OPPOSITION TO NEW DEAL LEGISLATION IN ORDER TO PROTECT ITSELF FROM POLITICAL ATTACKS. IN THE NEXT FEW YEARS, SEVERAL JUSTICES RETIRED AND FDR GOT TO APPOINT NEW JUSTICES MORE FAVORABLE TO HIS POLICIES. 77

Roosevelt faced other challenges to the New Deal. After the economy had begun to improve in 1935 and 1936, FDR cut back on government spending to reduce the deficit. At the same time, interest rates rose. The combination caused the economy to sink again, and unemployment soared. With his support wavering, FDR did not try to push further reforms through Congress.

RECESSION IN THE FALL OF 1937 FDR WAS WEAKENED POLITICALLY BY THE FIGHT OVER THE SUPREME COURT AND FOUND IT HARDER TO DEAL WITH CONGRESS THERE WAS STILL HIGH UNEMPLOYMENT AND MILLIONS WERE STILL SURVIVING ON GOVERNMENT RELIEF PAYMENTS HUGE BUDGET DEFICITS WERE PILING UP IN JUNE OF 1937, CONCERNED OVER THE DEFICITS, FDR HAD CONGRESS CUT SPENDING FOR GOVERNMENT ANTIDEPRESSION MEASURES INCLUDING PUBLIC EMPLOYMENT TO SUCCESSFULLY BALANCE THE BUDGET THE RESULT WAS A SEVERE RECESSION WITH THE STOCK MARKET CRASHING AND 10 MILLION WORKERS LOSING THEIR JOBS FDR WAS FORCED TO QUICKLY POUR MONEY INTO PROGRAMS SUCH AS CCC AND WPA TO ALLEVIATE 79 THE RECESSION

POLITICAL CARTOON REFLECTING THE FEAR AND UNCERTAINTY THE 1937 RECESSION CAUSED 80

Effects of the New Deal

Terms and People ● Black Cabinet – African American leaders who served as unofficial advisers to Franklin D. Roosevelt ● Mary Mc. Leod Bethune – educator and special advisor on minority affair in FDR’s Black Cabinet ● Indian New Deal – 1930 s program that gave Native Americans economic assistance and greater control over their own affairs ● New Deal coalition – diverse group of southern whites, northern blue-collar workers, midwestern farmers, and African Americans that united behind FDR and the New Deal

Terms and People ● (continued) welfare state – government that assumes responsibility for providing for the welfare of children and the poor, elderly, sick, disabled, and unemployed

How did the New Deal change the social, economic, and political landscape of the United States for future generations? The New Deal affected people of many different backgrounds and ways of life. It also fundamentally changed the role of the federal government in the economy, the power of the presidency, and the relationship of the American people to their government.

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

Other women also played important roles in the administration, such as Secretary of Labor Frances Perkins, the first female Cabinet member. However, the New Deal did not fight to end gender discrimination in the workplace. • The WPA and other agencies made an effort to employ men first. • Women could not work for the CCC.

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 Mc. Leod Bethune.

Some New Deal measures unintentionally hurt African Americans.

But he did not always listen. FDR refused to support an antilynching law, fearing political fallout. Some New Deal measures unintentionally hurt African Americans. • Farm subsidies led landowners to evict sharecroppers. • African Americans often did not receive equal wages. • Domestic and farm workers, occupations that employed many African Americans, were exempted from New Deal programs.

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 and the New Deal united diverse groups of Americans into a political powerhouse. The New Deal coalition included southern whites, northern blue-collar workers, midwestern farmers, and African Americans. Democrats were now in the majority.

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 post-World 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.

FDR

Finally, FDR and the New Deal changed the nature of the presidency itself.

Culture in the 1930 s

Terms and People • The Wizard of Oz – popular depression-era film that promised dreams really can come true • Frank Capra – director whose films celebrated American idealism and the triumph of the common man over adversity • War of the Worlds – 1938 radio drama that was so realistic many people feared that Martians were actually invading • Federal Art Project – branch of the WPA that hired artists to create artworks for public buildings

Terms and People (Continued) • mural – large picture painted directly on a wall or ceiling • Dorothea Lange – Farm Security Administration photographer who helped document the plight of America’s farmers • John Steinbeck – author whose depression-era classic The Grapes of Wrath tells the story of a family trying to escape the Dust Bowl • Lillian Hellman – playwright whose works featured strong roles for women and socially conscious subject matter

How did the men and women of the depression find relief from their hardships in the popular culture? Entertainment helped Americans struggling to survive the depression escape their worries—at least for a time. Federal support for the arts added to the era’s rich cultural heritage.

Entertainment was big business during the 1930 s. • Large radio networks were broadcasting giants, while a few film companies dominated the silver screen. • By the end of the 1930 s, nearly two thirds of all Americans attended a movie each week. • Stars made fortunes and attracted loyal followings. Movies, radio, and music reflected the mood of the country.

Most Americans went to the movies to escape their worries during the Great Depression. • The Wizard of Oz • Snow White and the Seven Dwarfs • Frankenstein • Top Hat • Gone With the Wind

In the early 1930 s, gangster films such as Public Enemy reflected the public’s distrust of government. As the New Deal restored confidence, films such as G-Men began portraying government officials as heroes. Director Frank Capra focused on the triumph of the common man over adversity in such films as Mr. Smith Goes to Washington.

Radio was also a vital part of everyday life. • Radio networks such as NBC and CBS entertained millions. • People listened to comedy, drama, news, and FDR’s fireside chats.

Orson Welles’ 1938 radio drama War of the Worlds was so realistic that it caused a national panic when listeners thought that Martians were invading. Radio disc jockeys played the latest tunes on shows like Your Hit Parade and Make Believe Ballroom.

Music provided a happy diversion and a serious outlet for social concerns. “Swing” music played by “big bands” topped the charts. The folk singer Leadbelly described the harsh lives of African Americans. Latin music and dances like the rumba and the samba were popular. Woodie Guthrie wrote ballads about the Dust Bowl and the Okies.

During the New Deal, the federal government provided funding for the arts for the first time in history. The Federal Art Project, Federal Writers’ Project, and Federal Theater Project were all funded by the WPA writers created a series of state guidebooks that recorded the nation’s history and folklore.

WPA artists painted giant murals in public buildings across the nation. Photographers like Dorothea Lange created powerful images of impoverished farmers and migrant workers. “Migrant Mother”

Critics charged that the Federal Art programs were promoting radical or communist views. This led to a drop in congressional funding. Though its funding was cut, the Federal Art programs set a precedent for future funding of the arts and humanities.

Depression-era writers reflected the concerns of Americans from all walks of life. In The Grapes of Wrath, John Steinbeck told the story of an Okie family escaping the Dust Bowl. In Native Son, Richard Wright explored racial prejudice. Lillian Hellman portrayed strong women in her plays.

Comic strips and comic books also were very popular. POW! • Flash Gordon Science Fiction • Dick Tracy Detective Story • Superman The first great superhero comic—showed that ordinary citizens could overcome evil.

Chapter Summary Section 1: FDR Offers Relief and Recovery Within his first 100 days in office, Roosevelt and Congress passed fifteen major laws to offer relief, reform, and recovery. Mrs. Roosevelt played a large role in the Administration. There were many critics of the New Deal. Section 2: The Second New Deal In the Second New Deal, Roosevelt sought far reaching solutions to the causes of the Depression. The problems of workers, the unemployed, the poor, and the elderly were all addressed.

Chapter Summary (continued) Section 3: Effects of the New Deal The New Deal changed the role of the federal government in the lives of American citizens and in the national economy. It created new political coalitions and changed the power of the president. Section 4: Culture of the 1930 s The 1930 s was a golden age for radio and movies. People sought escape from the pain of the Great Depression. It was also the first time that the federal government sponsored art and artists.

• The Depression and Its Victims – the depression had a profound psychological impact on the American people – there were simply no jobs to be found – people who lost jobs at first searched for new ones; after a few months, however, they became apathetic – economic stress brought personal stress – power shifted within families; family size decreased – hopelessness and malnutrition contributed to the lack of political radicalism during the depression

• The Election of 1932 – Democrats chose Franklin Delano Roosevelt of New York to challenge Hoover in 1932 – Roosevelt campaigned on optimism and grand, but unspecified, solutions to the nation’s economic woes – desperate for a change in style and substance, Americans rallied to Roosevelt's promises of a New Deal

– he proposed that the government take whatever steps were necessary to protect individual and public interests – Roosevelt won with an electoral margin of 472 to 59 – the last days of the Hoover administration and a “lame duck” Congress witnessed the nadir of the depression

THE NEW DEAL: 1933 -1941 • The Hundred Days – by the date of Roosevelt’s inauguration, the disintegration of the banking system convinced conservatives and radicals alike of the necessity for government intervention – during the first “hundred days” of Roosevelt’s presidency, Congress passed an impressive body of legislation

– on March 5, 1933, the president declared a “bank holiday” – legislation of the Hundred Days created the Federal Deposit Insurance Corporation (FDIC), forced the separation of investment and commercial banking, extended the power of the Federal Reserve Board, established the Home Owners Loan Corporation (HOLC), and regulated the securities exchange

– Roosevelt had no comprehensive plan of action; rather he employed an ad hoc approach, which sometimes resulted in contradictory policies – although most measures of the Hundred Days were designed to stimulate the economy, the Economy Act reduced salaries of federal employees and cut veterans’ benefits

• The National Recovery Administration (NRA) – the problems of unemployment and industrial stagnation received high priority during the Hundred Days – Congress appropriated $500 million for aid to the needy – the newly created Civilian Conservation Corp (CCC) employed tens of thousands of young men

– the National Industrial Recovery Act (NIRA), a controversial piece of legislation, created the Public Works Administration (PWA), allowed manufacturers to establish price and production limits, established a minimum wage and maximum hours, and guaranteed labor the right to bargain collectively – a variant on the idea of the corporate state, the NIRA envisaged a system of industrywide organizations of capitalists and workers (supervised by government) that would resolve conflicts internally

– the National Recovery Administration (NRA), created by the NIRA, oversaw the drafting and operation of business codes – the NIRA failed to end the depression – dominant producers in each industry supervised the drafting and operation of the codes – they used their power to raise prices and limit production rather than to hire more workers and increase output

– even though the NIRA provided protection for collective bargaining, the conservative and craft-oriented AFL displayed little enthusiasm for enrolling unskilled workers on an industry-wide basis – John Lewis and other labor leaders created an alternative to the AFL by establishing the Congress of Industrial Organizations, formed to organize workers on an industrywide basis without regard to craft

• The Agricultural Adjustment Administration (AAA) – the Agricultural Adjustment Act of 1933 combined compulsory production limitations with government subsidization of staple farm commodities – in effect, the AAA paid farmers to produce less – while some farmers benefited, others, particularly sharecroppers and tenant farmers, did not

• The Tennessee Valley Authority (TVA) – the Tennessee Valley Authority (TVA) Act of 1933 created a board authorized to construct dams, power plants, and transmission lines, as well as to market electrical power to individuals and communities – the TVA also provided a “yardstick” for evaluating the rates and efficiency of private power companies – in addition, the TVA engaged in flood control, soil conservation, and reforestation projects

– the TVA never became the comprehensive regional planning organization some of its sponsors intended; it did improve the standard of living for many in the valley

• The New Deal Spirit – Roosevelt infused his administration with a much needed wave of optimism – Roosevelt’s receptiveness to new ideas and the increased New Deal bureaucracies drew academics and professionals into government service – the New Deal was never a clearly stated ideological movement – it drew heavily on populism, Theodore Roosevelt’s New Nationalism, and the Wilsonian tradition

– Washington became a battleground for special interests – William Leuchtenberg described the New Deal as “interest-group democracy” – the New Deal gave interest groups other than big business a voice in Washington – on the other hand, it slighted the unorganized majority

• The Unemployed – in 1934, at least 9 million Americans were still unemployed, hundreds of thousands of whom were in desperate need – nevertheless, the Democrats increased their majorities in Congress – Roosevelt’s unemployment policies accounted, at least in part, for Democratic successes at the polls – Roosevelt appointed Harry L. Hopkins to head the Federal Emergency Relief Administration (FERA) in 1933

– Hopkins insisted that the unemployed needed jobs, not handouts – in November 1933, he persuaded Roosevelt to create the Civil Works Administration (CWA) – the CWA employed millions on public works projects – the cost of the CWA frightened Roosevelt, who soon abolished it – in 1935, Roosevelt put Hopkins in charge of the new Works Progress Administration (WPA)

– in spite of these efforts, at no time during the depression did unemployment fall below 10 percent of the total work force – Roosevelt’s fear of deficit spending meant that many New Deal measures did not provide sufficient stimulus to the economy

• Literature in the Depression – John Dos Passos published his harshly anticapitalist and deeply pessimistic trilogy, U. S. A. , between 1930 and 1936 – John Steinbeck’s The Grapes of Wrath (1939) perhaps best portrayed the desperate plight of America’s poor – Thomas Wolfe’s autobiographical novels such as Look Homeward Angel (1929) and You Can’t Go Home Again (1940) offered a stark and vivid view of the confusion of urban life and the impact of hard times

– William Faulkner wrote vividly of southern poverty, pride, and racial problems in his novels – between 1929 and 1932, he published The Sound and the Fury, Light in August, As I Lay Dying, and Sanctuary

• The Extremists: Long, Coughlin, Townsend – Roosevelt’s moderation provoked extremists on both the left and right – the most formidable was the “Kingfish, ” Huey Long, a senator from Louisiana – although he never challenged white supremacy, the plight of all poor people concerned him – after initially supporting Roosevelt, Long split from the administration and introduced his “Share Our Wealth” plan, intended to redistribute the nation’s wealth

– less powerful than Long but more widely influential was Father Charles E. Coughlin, the “Radio Priest” – Coughlin urged currency inflation and attacked the alleged sympathy for communists and Jews within Roosevelt’s administration – Coughlin’s program resembled fascism more than anything else

– Dr. Francis E. Townsend proposed “oldage revolving pensions, ” which would give $200 per month to the nation’s elderly on the conditions that they not hold jobs and that they spend the money within thirty days – the collective threat of these radical reformers forced FDR to adopt a bolder approach toward solving the problems of the depression

• The Second New Deal – despite Roosevelt’s efforts, the depression continued unabated – in the spring of 1935, he launched the Second New Deal – the Wagner Act (1935) ensured the right of labor to collective bargaining and prohibited employers from interfering with union organizational activities

– the Social Security Act (1935) established a federal system of old-age pensions and unemployment insurance – the Rural Electric Administration (REA) brought electric power to rural areas – the Wealth Tax (1935) raised taxes on large incomes, estates, and gifts – critics worried that the New Deal restricted liberty – the cost also alarmed them

– by 1936, some members of the administration had fallen under the influence of John Maynard Keynes, who advocated deficit spending to stimulate consumption – Roosevelt never accepted Keynes’s theories, but the imperatives of the depression forced him to increase spending beyond the government’s income

• The Election of 1936 – the election of 1936 matched Governor Alfred M. Landon of Kansas and Roosevelt – although Landon represented moderate wing of Republican party, his campaign was hampered by reactionary views of some of his supporters – Congressman William Lemke of North Dakota ran on the Union party ticket, a coalition of extremist groups. Roosevelt won easily, carrying every state except Maine and Vermont – Democrats also made large gains in city

• Roosevelt Tries to Undermine the Supreme Court – the conservative majority in the Supreme Court declared several major New Deal programs unconstitutional – by 1937, all of the major measures of the Second New Deal appeared doomed – Roosevelt responded by announcing a proposal to increase the number of sitting justices, a thinly disguised attempt to stack the Court with his own appointees – Roosevelt severely misjudged the opposition to the plan

– Congress and public strenuously objected to his tampering with system of checks and balances – the president eventually yielded to pressure and withdrew his plan – alarmed by the attack on the Court, two justices changed their positions and voted to uphold New Deal legislation – moreover, death and retirement created enough vacancies on the Court to allow Roosevelt to appoint a large pro-New Deal majority – nevertheless, Roosevelt’s personal and

• The New Deal Winds Down – the Court battle marked the beginning of the end of the New Deal – a series of bitter strikes, starting in 1937, alarmed the public – in June 1937, FDR responded to a moderate increase in economic conditions by curtailing government expenditures – the resulting “Roosevelt Recession” included a downturn in the stock market, rising unemployment, and declining industrial output

– in response, Roosevelt finally committed himself to heavy deficit spending, beginning in April 1938 – at his urging, Congress passed a $3. 75 billion public works bill, new AAA programs, and the Fair Labor Standards Act – these measures did little to ease the recession and alienated conservatives – particularly after the elections in 1938, a coalition of Republicans and conservative Democrats gained enough power to halt expansion of New Deal reforms

• Significance of the New Deal – the outbreak of World War II ended the depression – the New Deal ameliorated suffering but failed to revive the economy – Roosevelt’s willingness to try different approaches made sense because no one knew what to do – however, his vacillating policies and his desire to maintain a balanced budget often proved counterproductive

– as a result of the New Deal, the nation began to look to the government as the guarantor of its public welfare – Roosevelt expanded the federal bureaucracy and increased the power of the presidency – federal bureaucracies now regulated formerly private sectors – if the New Deal failed to end the depression, the changes it effected altered American life and society

• Women as New Dealers: The Network – largely because of the influence of Eleanor Roosevelt and Molly Dewson, head of the Women’s Division of the Democratic National Committee, the Roosevelt administration employed more women in positions of importance than earlier administrations – Secretary of Labor Frances Perkins became the first woman to hold a cabinet post

– Molly Dewson and Eleanor Roosevelt headed an informal, yet effective, “network” of influential women whose goal was the placement of reform-minded women in government – Eleanor Roosevelt exerted significant influence, particularly in behalf of civil rights

• Blacks During the New Deal – while minimal in 1932, the shift of black voters from the Republican to the Democratic party became overwhelming by 1936 – however, Roosevelt remained unwilling to alienate southern members of Congress and deferred to them on racial matters – new Deal programs often treated blacks as second-class citizens – in 1939, black unemployment was twice that of whites, and wages paid to whites were double those received by blacks

– despite this situation, an informal “Black Cabinet, ” including Mary Mc. Leod Bethune and Charles Forman, lobbied the federal government in behalf of better opportunities for blacks – in the labor movement, the new CIO recruited black members – thus, while black Americans suffered during the depression, the New Deal brought some relief and a measure of hope

• A New Deal for Indians – the New Deal built on earlier policies toward Native Americans – while retaining many paternalistic and ethnocentric attitudes, government policies improved after the appointment of John Collier as Commissioner of Indian Affairs in 1933 – under Collier, the government expressed a willingness to preserve traditional Indian cultures – at the same time, it attempted to improve economic and living conditions

– the Indian Reorganization Act of 1934 allowed a degree of autonomy by attempting to reestablish tribal governments and tribal ownership of Indian lands – some critics, including many Indians, charged Collier with trying to turn back the clock – others attacked him as a segregationist – not all Indians, moreover, particularly those who owned profitable allotments, were willing to yield their privately held land to a tribal corporation

• The Role of Roosevelt – how much credit for New Deal policies belongs to Roosevelt is debatable – Roosevelt left most details and some broad principles to his subordinates – his knowledge of economics was skimpy, and his understanding of many social problems remained superficial – nevertheless, Roosevelt’s personality marked every aspect of the New Deal

– his ability to build and manipulate coalitions made the program possible – he personified the government and made citizens believe that the president cared about the condition of ordinary Americans