FDR and his New Deal

FDR and his New Deal

Franklin Delano Roosevelt election of 1932 occurred during deepest year of the depression Dem Party ran NY Gov Franklin Roosevelt promised Americans a new deal FDR argued for a more interventionist government he also criticized Hoover s spending and promised to end Prohibition Americans elected FDR in landslide he asked for broader powers (like in wartime) Roosevelt had been confined to wheelchair by polio in 1921 considered retirement but wife Eleanor encouraged him to keep fighting

FDR s New Deal no one knew details of new deal promise as FDR took office FDR did have 3 basic goals relief, recovery, & reform (the three Rs ) Roosevelt started by appointing the Brain Trust to advise him included a group of economists, professors, and politicians Congress passed large amount of legislation within first 3 months bills in First Hundred Days tried to fix bank system and restore public faith fed works projects, farmer subsidies, and a plan for industrial recovery New Deal would revolutionize the role of the federal government

Crafting the New Deal 1933 1935 know as first New Deal began with banking holiday closed all banks for 2 days, only solvent banks could reopen on third day FDR informed public of Emergency Banking Relief Act in his first fireside chat FDR took U.S. off gold standard to help restore Federal Reserve recovered all private gold in exchange for Treasury notes (dollar bills) Glass-Steagall Act established the Federal Deposit Insurance Corporation FDIC provided up to $5,000 of protection for people s deposits Americans could now begin to bank with confidence the first New Deal focused primarily on relief aspect of 3 goals second New Deal (1935 1938) focused on relief and reform both portions created an alphabet soup of new govt agencies FDR had to use deficit spending to fund much of the New Deal

New Deal Employment Strategies Federal Emergency Relief Act (FERA) gave federal $ to states for funding projects that created jobs Public Works Administration (PWA) built roads, bridges, libraries, hospitals, schools, etc. to create jobs Civilian Conservation Corps (CCC) provided jobs for young men Works Progress Administration (WPA) public projects that included nontraditional workers like artists & writers Tennessee Valley Authority (TVA) mainly for the rural Appalachian Mountain region men built dams to provide flood control & cheap electricity

New Deal Recovery and Relief National Recovery Administration (NRA) encouraged fair business practices Agricultural Adjustment Act (AAA) sought to raise the value of crops by paying farmers to limit production ruled unconstitutional by Supreme Court but not before helping many farmers help for homeowners Home Owners Loan Corporation (HOLC) Federal Housing Administration (FHA)

New Deal Reform Fair Labor Standards Act set a minimum wage, maximum hours, and end to child labor Securities and Exchange Commission (SEC) regulated the prices of stocks & bonds still exists Social Security Act provided insurance for elderly Americans still exists Federal Deposit Insurance Corporation (FDIC) provided insurance for people s bank deposits still exists

Minorities minorities faced even more challenges during depression available jobs usually went to white males before anyone else many African Americans supported New Deal and the Dem Party Eleanor urged FDR to appoint relatively high number of blacks to cabinet FDR s Black Cabinet worked on issues like Jim Crow and lynching but many bills never passed because FDR needed white southern Dem vote several fed programs attempted to improve lives of Native Americans 1934 Indian Reorganization Act repealed 1887 Dawes Act return of reservation lands and preservation of tribal culture Mexican Americans often faced discrimination in Southwest many were displaced by okies and then moved back to Mexico other Latinos were even forced to relocate south of the border

Supreme Court Controversy Supreme Court began to challenge several pieces of New Deal FDR made court-packing proposal in attempt to make it easier to pass laws would have added 6 new justices but Judicial Reorganization Bill failed 3 rd term controversy when FDR ran for and won a third term he eventually went on to also win a 4 th term, but died before completion Congress would later pass the 22 nd Amendment two term limit [M]

Criticism critics of the New Deal came from both the Dem and Rep parties conservatives called it socialism and some formed American Liberty League socialists complained that FDR had neglected the forgotten man Louisiana Sen Huey Kingfish Long became famous for critiques Long developed Robin Hood style plan known as Share Our Wealth popular in Louisiana, but Long often used controversial political practices could have challenged FDR for Dem nomination, but assassinated in 1935

Legacy of the New Deal New Deal programs forever changed role of fed govt in America increased size and scope of the fed govt more involved in everyday life Historians still debate about the New Deal s overall effectiveness it provided much-needed relief, but WWII actually ended the depression