FDR - the new deal

what was FDR’s campaign for president like?

• Vauge - offered few policies

• Stressed need for balanced budget

• Implied government needed to do more

• Slogan was a ‘new deal’ promise

How did dislike of Hoover help FDR’s election

• Hoover seen as reason for economic crisis

• Roosevelt generated optimism and hope

• Roosevelt had much more charisma

• Roosevelts record as governor of NY highlighted liberal ideals

What happened economically in the years before Roosevelt’s inauguration

• Major banking crisis - all banks in 32 had closed

• Huge withdrawals of cash from banks

• Senate committee revealed corruption in wall street

• New York stock exchange had closed

• Flight of capital and gold from the USA

• National unemployment over 13 million, no welfare assistance

What was the ‘brain trust’

FDR’s team of advisors, many young academics, who analysed the cause of the crisis to provide solutions for the economic failures.

what constitutional restrictions did FDR face?

• Cabinet members had to be approved by senate

• All new laws had to pass through house and senate

• Congress can over turn a veto with 2/3 majority

• Budget had to be passed by congress

• Supreme court can block any presidential action

Who was Frances Perkins

Former social worker and 1st woman member of the cabinet.

• Advocate for CCC, minimum wage, restriction of child labour, and max working hours

How many pieces of major legislation were passed in FDR’s first 100 days?

At least 15

What was a ‘fireside chat’

An FDR radio broadcast to restore public confidence in the US system, explaining what he is doing and why?

Banking/ economic actions of the new deal

• 4 day bank holiday

• Emergency banking act - federal gov has greater control of banks

• Repeal prohibition

• the Economy act - cut gov spending on some salaries/ pensions

• Off of the gold standard - Dollar dropped in value, matching other countries

• Glass-steagall banking act - prevent speculation with customers money

• Federal insurance of bank deposits

1st new deal - employment

• Created the CCC - employing over 3 million young men in public works

• Set up the federal emergency relief administration to provide relief to unemployed

• Set up PWA, spending $33.3 billion on public works to prevent unemployment

1sr new deal - agriculture

• Created the AAA and Farm credit administration to solve agricultural issues.

• TVA provided electricity to those in rural south and control floods

What is the Securities and Exchange commission

regulator of wall street to prevent another crash

How many men had jobs in 1934 due to the CWA

4.2 million men

Issues still present in 1934-35

• Unemployment at 35%

• Crop droughts and overproduction

• Millions in poverty

• Growing right wing opposition

• Supreme court questioned if many acts were constitutional.

  • Struck down AAA and TVA

major elements of the second new deal

• emergency relief appropriation act

• the social security act

• the 1935 banking act

• wealth tax

what was the emergency relief appropriation act?

Injected $4 billion into us economy to create jobs in labour intensive areas like building roads, schools, airports ect and electification projects.

How many people gained employment via the emergency relief appropriation act?

• 3.5 million unemployed

• 8.5 million overall

what was the social security act?

• Proposed by Frances Perkins

Unemployment insurance if a worker has been laid off, the employer and employee will have contributed to the scheme.

Same system applied to pensions.

What was the 1935 banking act

Gave the federal reserve bank greater control to regulate money supplies and markets

what was wealth tax

designed to tax the highest earners

• didn’t bring in much gov income

• did bring in critics from government

what was the issue with the social security act

• no health care protections - congress felt it was too radical

• 9 million citizens excluded

• Discriminative

How many americans were convered by the social security act?

26 million

What was roosevelt’s political strategy with the south

Conservative white supremacists FDR couldn’t offend white conservative men and African American couldn’t vote (gain no votes)

FDR felt the TVA would bring in many forms of aid without offense

FDR strategy in northern industrial cities

Boss system meant people got things for votes - very corrupt

FDR tried to find ways to appeal to ‘bosses’ who may sway otherwise democratic voters

educated and liberal elite from northeast views

• Where most of his brain trust was from, created many new deal ideas

• more tolerant on racial issues

FDR trade union strategy

• Major cash contributors to party

• trade unions weren’t a united force

• some union leaders deeply conservative

• Disagreements on how far gov should intervene with workers

By the election of 1936, what had FDR done to deescalate the depression

• shift to left in terms of policy

• two new deals

• tax on undistributed corporate profits

• War bonuses to veterans

why did FDR win the 1936 election

• the new deal was popular

• clever in use of patronage

• support from labour movement and african americans who could vote

• Support from those employed by PWA

• 4 million helped homeowners voted for him

• Gratitude from those whose bank deposits had been saved in 1933

Opposition from new deal - supreme court

• ability to declare any act unconstitutional

• All elected by FDR predecessors, no sway

What was the Schechter Poultry corp vs US case

‘sick chicken case’

• Chicken company fined for not following NIRA regulations

• Supreme court ruled gov didn’t have constitutional right to make them choices - essentially struck down NIRA

How did FDR handle the supreme court

• Not well

He criticised the ‘nine old men’ who he thought wanted to take the USA back to the ‘horse and buggy era’

Tried court-blocking (appointing more judges)

angered both public opinion and Congress, which opposed any major change to a revered institution.

When did the supreme court begin supporting FDR

1937 - judges retired or changed mindds

FDR opposition from liberal republicans

Some Republicans less conservative than others, liberal Republicans did not like Roosevelt’s very cautious monetary policy.

• too little money in economy

• helpful as other republicans wanted no money spend and a balanced budget

FDR opposition from intellectuals and academics

Wanted Roosevelt to expand the role of the government. They thought the government should regulate economic life to a far greater extent, including areas such as utilities and banking.

FDR opposition from communist party

Communism was regarded by the vast majority of Americans as dangerous and unamerican. But there were still some opponents calling for more radical change.

FDR opposition from Francis Townsend

proposed giving all those over 60 a pension of $150 a month (later $200). The pension would be paid for by the federal government imposing a tax on the sale of all goods. This would stop those over 60 having to work, freeing up jobs for the young.

20 million signed petition

Didn’t like social security act under cutting and paying.

FDR opposition from Father Coughlin

• Roman catholic priest

• Initially supported new deal, changed mind as it wasn’t radical enough

• Founded national union for social justice - 8 million members

• Radio program

• 80,000 support letters weekly

• Coughlin also became very anti-Semitic. In the end, Roosevelt was able to stop Coughlin broadcasting.

Who was Huey long

Governor and then senator for Louisiana, Long was a powerful speaker feared for his forceful, populist tendencies. He could have been a serious threat to Roosevelt’s re-selection but he was assassinated by a man named Dr. Carl Weiss in 1935.

FDR opposition huey long

• early new deal supporter, not radical enough

• ‘Share our Wealth’ Society in 1934, which proposed heavy taxation of the rich, old age pensions and a grant of $500 for each family (not economically viable)

• wanted to spend more money on public works, education, and welfare

FDR opposition from republicans

a substantial group of Republicans, led particularly by former president Hoover, were fundamentally opposed to the New Deal.

• felt he was dictatorial

• too much gov management

FDR opposition from democrats

The senators and representatives from many of the Southern states tended to be frequently re-elected, and consequently wielded great power in Congress. They were therefore in a position to either ignore Roosevelt’s ideas or to join up with the more conservative Republicans and prevent much in the way of innovation after 1936 in terms of New Deal legislation.

FDR opposition from business and banks

• felt new deal was anti capitalist

• didn’t like being blamed for the crash

FDR opposition from trade unions

• felt gov imposed on their role

FDR opposition from Press

unlike 1932, by 1935 much of the press began to oppose new deal, accusing FDR of taking unprecedented power