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Reform Relief Recovery 3/28/2020 FDR and the New Deal Explain how the Great Depression and the New Deal impacted the American political, social & economic life over time. [Topic 7.10] 1 New Deal Philosophy Reform •Economic institutions Relief •Unemployed •Businesses and Recovery economy 2 1 3/28/2020 First One Hundred Days After being sworn into office on March 4th, FDR called Congress into a special session Congress passed a series of laws that FDR requested, many aimed at restoring public confidence Fireside Chats 3 Reform Emergency Banking Act (1933) Began with a 4-day bank holiday Act re-opened the largest and strongest banks Public confidence was restored as deposits exceeded withdrawals Federal Deposit Insurance Corporation (FDIC) Insured bank deposits up to $2,500 Restricted gold standard to international transactions 4 2 3/28/2020 Fair Labor Standards Act Established regulations on businesses in interstate commerce Minimum wage at 40 cents/hour Maximum standard work week at 40 hours + time-and-a-half for overtime Child labor restrictions on hiring under age 16 C.I.O (Congress of Industrial Organizations) John Lewis Broke away from the AFL in 1936 Organized unskilled workers in the automobile, steel, and southern textile industries 5 New Deal Under Attack Criticism: Didn’t do enough to help the poor or reform the economic system Too much spent on direct relief, too many regulations, deficit spending, too controlling of business, and socialized the economy & interfered with free-market economy Critics that attacked the New Deal offering radical plans to revive the economy Father Charles Coughlin Nationalize the banks and coining of silver dollars Francis Townsend Outraged that older Americans weren’t helped by New Deal Proposed a $200/month for Americans over 60 Huey Long “Share the Wealth” program which would limit anyone person to million dollar threshold, tax the richest and guarantee every American a $5,000 home and annual income of $2,500 Impact With strong support for these ideas, FDR had to “steal the thunder” by incorporating their ideas into his programs – Social Security, lower tax rate and control of big business 6 3 3/28/2020 Supreme Court – 1935 Declared both the NIRA and AAA unconstitutional Court-packing scheme FDR asked Congress for authority to appoint a new Supreme Court justice for every member older than 70 (6 new justices) Seen as a violation of the separation of powers and judicial independence Court became more receptive to the New Deal Over time, FDR was able to appoint 9 new member to the court through retirement 7 Consequences of New Deal African Americans Racial injustice was not addressed CCC camps segregated FDR wouldn’t support legislation on anti-lynching or elimination of poll tax Black officials were appointed to FDR’s administration As a voting bloc, 90% of African Africans switched to Democratic party 8 4 3/28/2020 Women Virtually invisible during the Great Depression as some agencies only hired men In the work place, women faced anger and discrimination Took jobs away from men Received lower minimum wage than men Frances Perkins: Secretary of Labor 12 years in the position; oversaw CCC and PWA Eleanor Roosevelt 9 National Economy and Role of Federal Government New Deal did not bring about full recovery – only the government military spending for WW2 Accelerated the process of the expanding role of the federal government Ensuring health of the economy Ensuring the welfare of the citizens Protections for labor unions Price stability for farmers Providing electricity for rural Americans (REA) Old age insurance for elderly Expanding power of the presidency 10 5 3/28/2020 Relief Measures Civilian Conservation Corps (CCC) Jobs program for unemployed men (18-25) working on conservation projects, planting trees, cutting trails, building reservoirs 2.5 million at $30/month Public Works Administration (PWA) Financed 34,000 construction projects = $6 billion Built 35% of new hospitals/facilities and 70% education buildings Constructed roads, bridges and dams Works Progress Administration (WPA) 3.4 million jobs for construction but also artists/actors/writers employed to paint murals, write histories and perform plays 11 Federal Emergency Relief Administration (FERA) Federal grants to state/local government to operate soup kitchens and other forms of relief for jobless and homeless 1933 - $500,000,000 1935 - $3 billion Tennessee Valley Authority (TVA) Hired unemployed to build dams, operate electric power plants, control flooding and erosion, and manufactured fertilizer Sold electricity to residents at reduced rates 12 6 3/28/2020 Agricultural Adjustment Act (AAA) Increase farm income by paying to leave acres unplanted Prices for wheat, corn, cotton & other ag crops rose Declared unconstitutional in 1935 National Recovery Administration Part of the larger National Industrial Recovery Act Helped each industry set codes defined minimum prices, wages and workers’ hours Allowed workers the right to organize and bargain collectively Declared unconstitutional in 1935 Social Security Administration Established a pension for retired people over age 65 Funded by payroll taxes from employer/employee National government provided a broad range of social welfare for dependent or crippled children, blind, maternal/child welfare Initially excluded farm laborers, domestic servants & self-employed 13 Glass-Steagall Act Increased regulation of banks and limited bank investments of depositors’ money Wagner Act Guaranteed right to join a union and to bargain collectively Outlawed practices that were unfair to labor Established the NLRB (Nat’l Labor Relations Board) to enforce the law Security & Exchange Commission Regulated stock market and limited speculative practices Required full audits of and financial disclosure by corporations to protect investors from fraud and insider trading 14 7 3/28/2020 New Deal Philosophy • Glass-Steagall Banking Act • FDIC – Federal Deposit Insurance Corporation • SEC – Security & Exchange Commission • SSA – Social Security Administration Reform • NLRB – National Labor Relations Board • Fair Labor Standards Act • FERA – Federal Emergency Relief Administration • PWA- Public Works Administration • CCC – Civilian Conservation Corps Relief • TVA – Tennessee Valley Authority • WPA – Works Progress Administration •AAA – Agricultural Adjustment Act •NIRA/NRA – National Industrial Recovery Act/National Recovery Administration Recovery •HOLC – Home Owners Loan Corporation •FHA- Federal Housing Administration 15 16 8.
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