CH. 23.1: A New Deal Fights the Depression

1933-1934

OBJECTIVE:

Identify FDR’s early actions in the New Deal

ANALYSIS:

Compare and Contrast the Campaigns.

Why did FDR win?

Election of 1932SETTING:

11 million unemployedDepression since Oct. 1929Rise of Despots in Europe

ISSUES:Stay the Course (laissez-faire, voluntary reform)New Deal (radical reform, expand federal power)

CANDIDATES:Hebert Hoover, incumbent, RepublicanFDR, Democrat (and don’t forget Eleanor!!!)

OUTCOME:Landslide victory for FDR (472 to 59) mandate for radical reform

"Buy an Auto…" adRecognizing the connection between sales and jobs, this ad asked readers to purchase an automobile and keep workers working so that they too could spend and stimulate the economy. Unfortunately, the number of people with enough money to spend was never enough to rekindle the economy and the Depression continued. (Private Collection)

"Buy an Auto…" ad

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Compare and Contrast FDR and Hoover

http://www.jwod.gov/jwod/about_us/about_us.html http://www.pbs.org/wgbh/amex/hoover/peopleevents/pandeAMEX86.html

The three R’s

• 1. Relief - Immediate action taken to halt the economies deterioration.

• 2. Recovery - "Pump - Priming" Temporary programs to restart the flow of consumer demand.

• 3. Reform - Permanent programs to avoid another depression and insure citizens against economic disasters

“First Hundred Days” Relief, Recovery, Reform

• Relief– Beer Act– CCC– FERA (Fed. Emerg.

Relief Act)– AAA– Home Owners

Refinancing Act– NRA, PWA– Off gold standard

paper economy* “fireside chats”

• Recovery– Banking Holiday/Re-

org.– CCC– TVA– NRA– PWA

• Reform– Beer Act, moves to

repeal prohibition– NRA– FDIC– TVA– Federal Securities Act

http://www.americanrhetoric.com/speeches/fdrfirstfiresidechat.html

Reforming Banking and Finance•Emergency Banking Relief Act

•Restores confidence in Banking Industry

•The Fireside Chat: First “informal” public address

•Restores confidence in banks http://www.youtube.com/watch?v=kFvrL_nqx2c

•Supported by REFORM legislation:

–Glass-Steagall Banking Act of 1933

–FDIC (Federal Deposit Insurance Corporation)

–Federal Securities Act

–Securities and Exchange Commission

RELIEF for the People

• Farmers get

Agricultural Adjustment Act (AAA)

• Youth get

Civilian Conservation Corps (CCC)

• Unemployed get

National Industrial Recovery Act (NIRA)

Dust Bowl and Agricultural Crisis

• AAA (Agric. Adj. Admin.) – artificial scarcity (fails)

• Soil Conservation Act• 2nd AAA (more success)• Dust Bowl• “Okies” & “Arkies”

(The Grapes of Wrath)

CCC workersHere, Civilian Conservation Corps workers plant seedlings to reforest a section of forest destroyed by fire. Before its demise in 1942, the CCC enrolled over two million young men. In addition to its work in conservation, the CCC also taught around thirty-five thousand men how to read and write. (UPI/Bettmann )

CCC workers

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NRA codeThe National Recovery Administration was Roosevelt's main vehicle to restore industrial recovery during his First One Hundred Days. Headed by General Hugh Johnson, the NRA's goal was to mobilize management, workers, and consumers under the symbol of the Blue Eagle; establish national production codes; and get America moving again. (Collection of David J. and Janice L. Frent)

NRA code

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Tennessee Valley Authority

• Part of Hundred Days legislation

• Revolutionary govt. involvement in economy

• Established “fair rate” for electricity

BENEFITS: cheap power, nitrates, flood control, cheap housing, river navigation

CRITICISM: socialist, state-owned industry

Map: The Tennessee Valley Authority

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Review• What was the AAA, CCC, NIRA

How did Roosevelt restore bank confidence?

Relief, Recovery, Reform

What could have been…the Demagogues.

• Huey Long• Father Charles Coughlin• Dr. Francis E. Townsend

Why didn’t America follow the path

of Italy and Germany? http://www.ssa.gov/history/pics/huey.jpg

http://www.ssa.gov/history/pics/Fdrcart2.gif http://usinfo.state.gov/journals/itdhr/0405/ijde/fdr.gif

“Court-packing” Scandal• FDR comes in on landslide• Supreme Court defeated New Deal reforms in 7 major

cases• FDR sees “Old Guard” on court as obstructing his

“mandate”

FDR’s SOLUTION: appoint 6 new judges ( 1 judge for every judge over 72)

REACTION: Negative. Justice Roberts “changes” voting behavior, another retires. Court “packing” plan fails.

IMPACT: Congress and Public alarmed. Threat to Checks and Balances. High-water mark of New Deal. Few new reforms after.