The Hundred Days ■When FDR took over in 1933, the U.S. economy was on the brink of collapse:...
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Transcript of The Hundred Days ■When FDR took over in 1933, the U.S. economy was on the brink of collapse:...
The Hundred Days■When FDR took over in 1933, the
U.S. economy was on the brink of collapse:–Unemployment was at 25%–38 states had total bank failure
■FDR requested from Congress broad executive power to begin his “New Deal” program of economic relief, recovery & reform
FDR asked for “broad executive power that would be given to me if we were in
fact invaded by a foreign foe.”
“Let me assert my firm belief that the only thing we have to fear is fear itself;the only thing we have to fear is fear itself; nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert
retreat into advance.”
The Hundred Days■In his 1st hundred days, FDR
began his 1st New Deal (1933-35)■FDR’s 1st order of business was
to restore confidence in banking: –Declared a 4-day bank holiday:
closed or funded weak banks & opened new gov’t-aided banks
–Glass-Steagall ActGlass-Steagall Act created the FDIC which guaranteed all bank deposits up to $5,000
Banks were regulated (not nationalized); the economic system was reformed
(not drastically changed)
Emergency Banking Act of 1933
Now, the FDIC insures deposits up to $250,000
The Hundred Days ■The greatest success of the First
New Deal was its ability to offer relief to unemployed citizens via the Reconstruction Finance Corps
–Modest relief checks were doled to 15% of Americans
–Federal Emergency Relief ActFederal Emergency Relief Act (FERA)(FERA) pumped $500 million into state welfare programs
The Hundred Days■Relief efforts of the First New Deal
created more “alphabet agencies”
–Civilian Conservation Corps Civilian Conservation Corps (CCC)(CCC) employed urban men
–Civilian Works Admin (CWA)Civilian Works Admin (CWA) hired 4 million men & women
–Created the Public Works Admin Public Works Admin (PWA)(PWA) to build public roads, bridges, & buildings
CCC workers paved roads, planted trees, built bridges
The Hundred Days ■The National Industrial Recovery National Industrial Recovery
Act (NIRA)Act (NIRA) was the 1st attempt at economic recovery:–Created the National Recovery National Recovery
Admin (NRA)Admin (NRA) set max hours & minimum wages for workers & stimulated industry by fixing prices & setting production limits
■Agricultural Adjustment AdminAgricultural Adjustment Admin (AAA)(AAA) subsidized farmers
Additional attempts to stimulate the economy include taking the U.S. off the gold standard &
ending prohibition (21st amendment)
National Recovery Administration
The NRA ended up being too bureaucratic; business cooperation gave way to self-interest & greed
The Hundred Days■Some of FDR’s First New Deal
focused on long-term reforms –Securities & Exchange Securities & Exchange
Commission (SEC)Commission (SEC) to regulate the stock market & prevent another stock market crash
–Tennessee Valley AuthorityTennessee Valley Authority (TVA)(TVA) created dams in 7 states to provide cheap hydroelectric power & create jobs
The Tennessee Valley Authority
Critics claimed the TVA was too socialistic; Competing electric companies attacked the
TVA for selling cheaper electricity & eliminating competition
The Hundred Days
■The 1st hundred days of FDR’s administration were temporary solutions to solve problems, but…
■…psychologically, Americans believed that FDR was actively responding to the Great Depression
Franklin Roosevelt & the Second New Deal
(1935-1938)
Criticism of the First New Deal■The failure of the New Deal to end
the depression led to growing frustration among Americans
–From 1933-1934, the New Deal focused on immediate problems & did very little to help unskilled workers & sharecroppers
–In 1935, FDR shifted approach from economic relief to reform
Challenges to FDR■By 1935, signs of discontent with
the New Deal were evidenced as 3 critics gained national attention: –Father Charles CoughlinFather Charles Coughlin called
for nationalizing U.S. banks; used anti-Semitism in radio sermons
–Francis TownsendFrancis Townsend appealed to the elderly with a $200/mo payment plan to anyone over 60 in order to stimulate the economy
Challenges to FDR
■Louisiana Senator Huey Long proposed his Share the WealthShare the Wealth plan to:
–Take from the rich—a 100% tax on all personal income over $1 million
–Give to the poor—give every American $2,500 per year
Huey Long threatened to run as a 3rd Party candidate but was assassinated in 1935
The Second New Deal ■The 1st act of the 2nd New Deal was
Works Progress Admin (WPA)Works Progress Admin (WPA), the most comprehensive, direct-assistance program of the New Deal–The national gov’t hired 10 million
Americans in an attempt to stimulate the economy
–WPA created building projects, funded artists, & pumped $10 billion into the economy
WPA helped but never employed enough people to stimulate consumer purchase
power—it made the Depression bearable
WPA Public Work ProjectWPA cared less about what got done as long as work was done: built hospitals, schools, airport fields… but also moved leaf piles & dug ditches
Social Security■Social Security ActSocial Security Act (1935) was
the 1st U.S. welfare program for the aged, disabled, & unemployed–Old-age pensions to be funded
by employers & workers –Unemployment compensation to
begin in 1942 funded nat’l taxes but administered by states
–Welfare payments for the blind, handicapped, & needy children
■Liberal critics argued that SS did not do enough
■Conservative critics argued that SS violated individualism & self-reliance
■Social Security created America’s 1st welfare program to help individuals
Labor Legislation■Wagner ActWagner Act (1935) created the
Nat’l Labor Relations Board to oversee labor-management affairs–Mandated management to
negotiate with unions regarding pay, hours, conditions if majority of workers vote for a union
■Fair Labor Standards ActFair Labor Standards Act (1938) created 1st minimum wage & maximum hour laws (aimed at helping non-unionized workers)
40¢ per hour40 hours per week
The “Magna Carta” for labor
Conclusions■The New Deal was made up of
3 parts: reliefrelief, recoveryrecovery, & reformreform–New Deal was most successful
in providing immediate relief to ease economic suffering
–The New Deal did not bring economic recovery, redistribute
wealth, or end the depression–The New Deal brought major
reforms that changed America
For the 1st time, the gov’t used Keynesian Keynesian
economicseconomics (deficit spending & gov’t
spending to stimulate the economy)
The gov’t assumed responsibility for the health of the nation's economy & citizens
The New Deal signaled the beginning of the
welfare state
The End of the New Deal
End of the New Deal■New Deal reached its high point
when FDR was re-elected in 1936
■FDR’s experienced more setbacks in his 2nd term than is 1st term but he still remained a popular leader
The 1936 election saw the birth of a new Democratic coalition that would last for
30 years: South, West, urban, labor, ethnic groups, blacks, & the poor
Packing the Supreme Court
■The Supreme Court was FDR’s last obstacle to overcome:–The Court ruled the NRA & AAA
were unconstitutional –FDR’s solution was to ask
Congress to appt 1 new justice for each justice over 70 yrs old
–This controversial “court packing” plan would add 6 new justices
Justice Willis Van Devanter planned to retire in 1932, but stayed on because he felt FDR was “unfitted & unsafe for the presidency”
All 9 justices were old, white men; Only 3 were sympathetic to the New Deal; 2 were unpredictable; 4 wanted to block New Deal
Schechter v. U.S. (1935)
U.S. v. Butler (1936)
Packing the Supreme Court■The court-packing scheme was
legal but set a scary precedent:
–The Senate strongly resisted FDR & the Court defended itself against “ageism” attacks
–The crisis ended when the Court declared the Wagner Act & Social Security constitutional & Judge Van Devanter resigned
FDR eventually appointed 5 justices to the Supreme Court in his 4 terms
The End of the New Deal■1938 saw the end of the New Deal
–Other than the Fair Labor Standards Act, FDR’s 2nd term saw no new New Deal programs
–FDR’s court-packing plan hurt his relationship with Congress
–The “Roosevelt Recession” of 1937 was the result of FDR’s attempt to reduce gov’t spending & balance the budget
Unemployment, 1929-1942
The Impact of the New Deal
The Impact on Women■The New Deal brought few
economic benefits to women:–The New Deal allowed for
unequal wages; Social Security, the NRA, & minimum wage laws offered little help for women
■But, women did see gains in gov’t: –The 1st female cabinet member,
Senator, ambassadors, & judges were appointed under FDR
The 1st female cabinet member: Francis Perkins (Dept of Labor)
The 1st female Senator: Hattie Caraway (D-Arkansas)
The Impact on African-Americans■The New Deal did little for blacks:
–Racism & segregation remained strong during the Depression
–The NRA allowed lower wage scales for black workers; The AAA allowed for the eviction of sharecroppers & tenant farmers
–Minimum wage & SS did not apply to farmers & domestic servants (65% were black)
AAA is a “continuation of the same old raw deal”
Social Security “looks like a sieve with the holes just large enough for the
majority of Negroes to fall through”—NAACP
Blacks experienced 50% unemployment rate
Blacks were the last hired & first fired
The Impact on African-Americans■Despite the inequalities of the
New Deal, blacks supported FDR:
–FDR hired African-Americans to key gov’t positions
–Eleanor Roosevelt spoke out against racial discrimination
–The RFC brought assistance to 40% of unemployed blacks through the WPA
“While relief & WPA are not ideal, they are better than the Hoover bread lines & they’ll have to do until the real thing comes along”
The Impact on Mexican-Americans■Mexican-Americans fared even
less than African-Americans:–The Dust Bowl led to a flood of
whites into the agricultural fields in the southwest
–Congress created immigration restrictions & allowed for the deportation of illegal residents to reduce state welfare payments
–Received few New Deal benefits
The Impact on Native Americans■Native-Americans remained the
poorest of all U.S. residents but did benefit from the New Deal
–The Indian Reorganization ActIndian Reorganization Act shifted U.S. Indian policy from Indians as yeoman farmers to unified & autonomous tribes
–Many gained employment in the Indian Bureau
The Impact on the South & West■The South & West benefited the
most from the New Deal:
–The AAA helped end Southern dependence on sharecropping in favor of a wage labor system
–The West received more work relief & welfare than any region
–Hydroelectric power & irrigation programs helped residents
ConclusionConclusion:The New Deal &
American Life
The New Deal and American Life■The New Deal lasted only 5 years
(1933-1938); The majority of laws came in 2 bursts in 1933 & 1935:
■The New Deal was not very successful economically: –Helped relieve suffering but did
not end the Depression–American wealth remained
unequally distributed
First Hundred Days
Second Hundred Days
10 million were still unemployed
in 1939
12 million were unemployed when FDR
took office in 1933
The New Deal & American Life■The New Deal was more
successful socially:
–Social Security, Wagner Act, & the Fair Labor Standards Act helped elderly & disabled citizens, labor unions, & workers
–The New Deal did not help women, minorities, domestic workers, or small farmers
The New Deal and American Life■The New Deal was most
successful politically:
–FDR’s leadership unified a new Democratic voting bloc
–FDR used his leadership & optimism to provide a vital psychological lift to help citizens endure the Great Depression