3.3.4 Study: Franklin Roosevelt and the New Deal

Franklin Roosevelt and the New Deal

Introduction to Franklin Delano Roosevelt (FDR)

  • Election: 1932, after over two years of economic depression.

  • Promise: Introduced a "new deal" for the American people during his first presidential speech.

  • Public Sentiment: A desire for new leadership; many believed it would initiate recovery.

  • Personal Background: Born into a wealthy family, viewed as a friend to the common person, which led many poor families to name their children after him and display his pictures in homes.

  • Opposition: Many upper-class individuals referred to him as "that man"; disdain for his presidency and policies persisted even years later.

Personal Background of FDR

  • Family: Upper-class New Yorker, only child.

  • Education: Attended Harvard University, later Columbia Law School.

  • Marriage: Married Eleanor Roosevelt, Theodore Roosevelt's niece and his political idol.

  • Political Beginnings: Served as a Democrat in the New York State Senate, appointed as Assistant Secretary of the Navy under Woodrow Wilson.

  • Vice Presidential Bid: Nominated for vice president in the 1920 election, which was unsuccessful but increased his national profile.

  • Health Crisis: At age 39, diagnosed with polio, resulting in the loss of his legs; he maintained a strong public persona despite his disability.

Background on Roosevelt's Political Strategies

Laissez-Faire or Get Involved?

  • Reform Reputation: Elected governor of New York, developed a reformer reputation.

  • Election Context (1932): Candidates Franklin Delano Roosevelt (Democratic) vs. Herbert Hoover (Republican). Different economic management ideologies.

  • Election Outcome: Roosevelt won in a landslide in 1932.

Roosevelt’s Inaugural Address

  • Key Message: "Our greatest primary task is to put people to work."

  • Approach: Advocated for government intervention in job creation, comparing it to a wartime emergency.

  • Famous Quote: "Nothing to fear but fear itself" - instilled confidence in solutions during the Depression.

  • Consultation with Experts: Collaborated with leading economists and reformers.

The Hundred Days

  • New Deal Programs: First three months, termed "the Hundred Days," included initiatives based on the Three Rs:

    • Relief for the Poor

    • Recovery for the Economy

    • Reform of Government and Banks

  • Fireside Chats: A series of 30 evening radio broadcasts to communicate plans and reassure Americans, enhancing his public image.

Banking Policies and Financial Reforms

Emergency Banking Act

  • Bank Holiday: Issued an order to close all banks for four days to stabilize the banking system, allowing only financially sound banks to reopen.

  • Public Reaction: Most perceived this intervention positively, as it aimed to protect their savings.

First Fireside Chat

  • Date: March 12, 1933.

  • Content: Explained banking mechanics; emphasized management of deposits, likening it to maintaining industry and agriculture.

  • Understanding Banking: Addressed widespread misunderstandings about bank operations, where not all deposits are kept as cash reserves.

Key Takeaways from the First Fireside Chat

  • Public Assurance: Promised that while not all banks would reopen, losses would be minimized through supervision and reorganization of stronger banks.

  • Importance of Confidence: Highlighted the critical nature of public trust in the banking system as paramount for recovery.

Three Rs Initiatives

  • Overview of policies aimed at relief, recovery, and reform during the Great Depression.

Major New Deal Programs

  1. Emergency Banking Act: Allowed banks to reopen under Treasury supervision and provided loans to struggling banks.

  2. National Recovery Administration (NRA): Aimed to unite industry, labor, and government to regulate prices and practices.

  3. Glass-Steagall Act: Established the Federal Deposit Insurance Corporation (FDIC) to insulate bank deposits.

  4. Agricultural Adjustment Act: Increased crop prices.

  5. Tennessee Valley Authority (TVA): Stimulated economic growth in the Tennessee Valley region.

  6. Securities Exchange Commission (SEC): Supervised the stock market.

  7. Civilian Conservation Corps (CCC): Employed nearly 3 million young men for conservation work.

  8. National Industrial Recovery Act: Sought to stabilize prices.

  9. Economy Act: Balanced the federal budget through cuts to wages and pensions.

Impact of the Civilian Conservation Corps (CCC)

  • Overview: Job creation for millions of young men, focused on public lands and resources management.

  • Achievements:

    • Planted nearly 3 billion trees.

    • Constructed over 800 parks.

    • Built service buildings and roads in remote areas.

Shift in Political Alliances

Engagement with African Americans

  • Historical Context: African Americans were previously predominantly Republican voters.

  • FDR's Outreach: Engaged African Americans through his administration, referred to as his black cabinet, and created job opportunities.

  • Eleanor Roosevelt's Role: Advocated fiercely for civil rights and equality for African Americans.

Southern Democrats

  • Great Depression Impact: Southern Democrats supported the New Deal due to severe regional economic hardships; compromises were made with conservative factions.

Opposition to the New Deal

Critics of New Deal Programs

  • Huey Long's Plan: Proposed "Share Our Wealth" initiative: a heavy tax on the rich to distribute wealth.

  • Father Coughlin's Critique: A Catholic radio priest who criticized Roosevelt for being overly accommodating to bankers and blamed the Depression on Jews and Communists.

Supreme Court Challenges

  • Constitutional Issues: Some New Deal programs, including the NRA, were deemed unconstitutional due to monopolistic tendencies.

Second New Deal

New Programs Introduction

  • Timeframe: 1935 to 1936; aimed to strengthen economic recovery.

  • Key Initiatives:

    • National Labor Relations Board (Wagner Act): Protected the rights of unions and their ability to organize.

    • Works Progress Administration (WPA): Provided jobs through large public works projects; engaged artists and writers, spending nearly $7 billion (1937-1939).

Economic Context

  • National Debt (1936): Estimated at $83.8 billion, reflecting economic strains.

Townsend Plan

  • Objective: Aimed to provide older Americans with a monthly stipend ($200) to spur consumer spending and support the elderly population.

  • Funding Proposal: Suggested a 2% tax on all business transactions for financing the plan.

Lasting Changes from FDR's Presidency

Political Realignment

  • African American Shift: Realignment of African Americans towards the Democratic Party, representing working-class interests.

  • Broader Implications: Changes defined American political dynamics through the Great Depression and beyond.

  • Public Sentiment: Lyrics from songs like "Ain't We Got Fun" captured the struggles and resilience of citizens during this era, highlighting economic issues like unpaid rent while maintaining optimism amid adversity.

Economic Recovery Under FDR

  • Outcome: While the economy improved during Roosevelt's presidency, it did not return to pre-Depression levels until after Roosevelt's first two terms. By 1939, the president began shifting focus to international issues as global tensions grew.

Key Terms:

a. Franklin Delano Roosevelt (1882 – 1945): The 32nd president of the United States. He was the only president elected to four terms. He led the country out of the Great Depression through a series of social programs known as the New Deal. He led the United States through most of World War II.

b. fireside chats: A series of radio speeches given by President Franklin D. Roosevelt from 1933 to 1944. He used the radio to speak directly to the American people about issues affecting the country.

c. black cabinet: A group of African Americans first known as the Federal Council of Negro Affairs. This group shared its opinions on public policy with President Franklin Roosevelt.

d. Father Charles Coughlin: (1891 – 1979) A Roman Catholic priest who used the radio to reach large groups of listeners during the 1920s and 1930s. His talks were about politics and the economy rather than religion. He was sometimes called the "father of Hate Radio" because he spoke against Jews.

e. Eleanor Roosevelt: (1884 – 1962) The wife of President Franklin Roosevelt. She helped carry out some of her husband's policies and participated in civil rights activities. She was appointed to the United Nations General Assembly by President Truman in 1945 and worked on human rights issues there.

f. FHA: Federal Housing Administration, a New Deal agency created in 1934. Its main purposes are to improve housing standards and conditions and to insure home loans.

g. Huey Long: (1893 – 1935) United States senator and governor of Louisiana. He had strong populist ideas and planned to "share the wealth" through taxes and laws against high salaries. He was known for his complete control over the government of Louisiana.

h. Hundred Days: The first 100 days of President Franklin Roosevelt's presidency. It was during this period that he launched the programs of his New Deal to help the country emerge from the Great Depression.

i. Mary McLeod Bethune (1875 – 1955) was an African American teacher and civil rights leader. She started a school for African Americans in Florida that eventually became an excellent university. She was an adviser to President Franklin Roosevelt.

j. National Labor Relations Board: An agency of the U.S. government. Its main purposes are to investigate unfair labor practices and to organize elections to determine whether workers want to join labor unions.

k. New Deal: A series of economic programs passed by Congress in Franklin Roosevelt's first term as president. These programs and policies were intended to help America get out of the Great Depression.

l. Second New Deal: Programs set up several years after Roosevelt's New Deal. One of these programs was the social security system.

m. WPA: Works Progress Administration, later named Works Projects Administration, the largest New Deal agency. It was founded in 1935 and was responsible for giving jobs to millions of workers on public works projects.

n. Social Security Act: A law passed in 1935 to provide financial aid for people without jobs, health insurance for older people, and a pension, or income, for people who were old enough to retire, or stop working.