The New Deal

1932 Election

  • Democratic candidate Franklin Delano Roosevelt wins the 1932 election.
  • Democrats take control of the US Senate.

“We are at the end of our string. There is nothing more we can do.” - Herbert Hoover as a Lame Duck President

Inauguration Day

  • Hoover believed the promise of a “New Deal” with both socialistic and fascistic; it would lead the country on a “march to Moscow”.

The New Deal

  • FDR promised the American people “A New Deal”

FDR’s New Deal and the 3 R’s

  • Relief
    • Focused on providing relief to those suffering from unemployment and homelessness.
    • Attempts to put as many Americans back to work ASAP.
  • Recovery
    • Focused on agricultural and industrial recovery.
    • Attempted to stimulate the economy by increasing production and supporting workers.
  • Reform
    • Focused on reforming the financial system of the USA

Pragmatism & Brain Trust

  • FDR was known for his “can do” attitude
  • He believed in the value of ideas (pragmatism)- there was no idea he wouldn’t try.
    • If the idea worked, AWESOME…if not, put it in the “tried it” column and move on, but keep trying!
    • Taking action- the world is changing so actions need to change too.
  • Created the Brain Trust
    • A group of professionals organized to advise the President
    • Professors of psychology, economists, etc.

The Bank Holiday

  • 2 days after taking office, FDR declared a bank holiday & closed all banks to prevent further withdrawals (March 6-13, 1933)
  • Emergency Banking Relief Act (3/1933): Banks would be inspected, only financially sound banks would reopen.
    • Renewed confidence in banks

Fireside Chats

  • Weekly radio addresses made by FDR addressing public concerns, in plain English, about the New Deal
  • FDR seemed to personally connect with his audience
  • 1st Chat: Explained banking system to nation, next day people began to deposit their money back in banks

Roosevelt’s Second Term (1936-1940)

  • Wins in a landslide election victory

  • Focus of the Second New Deal: Provide more extensive relief for both farmers and workers

  • Eleanor Roosevelt (First Lady)- traveled the country, observing social conditions

    • Advocated for additional women’s, African American, and minority rights

Helping The Farmers

  • Agricultural Adjustment Act (AAA)- paid farmers for cutting production of soil-depleting crops and rewarded farmers for practicing good soil conservation methods.
    • Brought back in the 2nd New Deal without the provision that was declared unconstitutional.
  • Farm Security Administration (FSA)- aimed to assist tenant farmers and hired photographers and journalists to share their stories with the nation.

Extending Relief

  • Works Progress Administration (WPA)
    • Provided the unemployed with jobs in construction garment making, teaching, the arts, and other fields.
    • WPA made special efforts to help women, minorities, and young people.
  • National Youth Administration (NYA)
    • Provided young Americans with aid and employment during the Great Depression.
    • Provided scholarships to students as well as part time jobs inside and outside of education to assist in paying for their schooling.

Court Packing- FDR loses some favor

  • Court struck down the NIRA in 1935 as unconstitutional and did the same with the AAA in 1936.
  • 1937, FDR tried to get Congress to pass the Court Reform Bill which would allow him to put 6 more justices in the Supreme Court (total of 15).
    • That year FDR was able to appoint a liberal justice, Hugo Black, that shifted the Court to favor more of the New Deal policies and the Court Reform Bill and died in the Senate.
    • FDR would appoint 7 new justices as President.

Improving Labor Conditions

  • National Labor Relations Act (Wagner Act)- The federal government again protected the rights of workers to join unions and engage in collective bargaining with employers.
    • The protection that labor unions gained from the Wagner Act helped them to grow quickly.
  • Social Security Act- provided aid to retirees, the unemployed, people with disabilities, and families with dependent children.

New Deal, New Opportunities

  • Secretary of Labor (Frances Perkins) became America’s first female cabinet member.
    • Played a major role in creating the Social Security system and supervised labor legislation.
  • Roosevelt’s “Black Cabinet”- influential African Americans to advise the Roosevelt administration on racial issues.

New Deal Programs Endure

  • Federal Deposit and Insurance Corporation (FDIC)
    • Monitors the stock market and enforces laws regulating the sale of stocks and bonds.
  • Securities and Exchange Commission (SEC)
    • Insured individuals’ bank accounts, protecting people against losses due to bank failures.
  • National Labor Relations Board (NLRB)
    • Prevents unfair labor practices and to mediate disputes between workers and management.
  • Tennessee Valley Authority (TVA)
    • Constructed dams and power plants in the Tennessee Valley region to generate electricity as well as to prevent floods.

Legacy of the New Deal

  • Thought the New Deal provided relief, reform, and recovery for many Americans, it did not end the Great Depression.
  • President Roosevelt faced rising pressure from Congress to scale back New Deal programs and cut back on spending by the end of the decade.
  • World War II will eventually bring the US and the world out of the Great Depression.