Presidential Election of 1932

• The US economy was failing as the Depression entered its 4th year• In 1932, A desperate US turned away from conservatism & voted for the

Demo candidate- FDR. The election was a blowout. FDR’s optimism & promise of a “New Deal” for Ams echoed with the common people

• However, his optimism could not hide the fact that the US was in crisis– ¼ of Ams were out of jobs (up from 3.2% in 1929)– The stock market had fallen from 224 to 58- proving our econ. Was

unhealthy– 1000s of banks had collapsed; while others seized farms & homes in a

desperate bid to stay afloat.– Am farmers were in worst position of all- Dust Bowl, famine, lost farms,

no technical skills to work in cities so many move west (in a huge migration)

– In cities, workers lost their jobs & began striking- resulting in deaths & injuries (in Detroit, workers chanted “Ford gave bullets for bread” when police fired on unemployed workers protesting/begging for jobs )

– Even schools closed as teachers went unpaid & students moved away

The Rise of FDR

• FDR’s upbringing was in stark contrast to the lives of most Ams.• He grew up in a mansion, took trips to Europe, & ate in private

clubs• However, his parents instilled the values of simplicity, hard work, &

compassion for the poor• After he graduated from Harvard, FDR became a lawyer, later a NY

state senator, & ended up serving as Asst. Sec of the Navy• Just when things were beginning to burgeon w/ his career- he

developed polio & was paralyzed• During his rehabilitation, spokesmen gave out only glowing reports,

but the truth was he never walked again w/out 10 lb braces.• Afterward he helped restructure the Demo Party & served 2 terms

as gov of NY• His commitment to govt taking a part in the recovery of the

Depression swayed many voters in the 1932 election (vs. Hoover’s “rugged individualism”)

Beginning of The New Deal• From his 1st day in office, FDR initiated series of fed programs

designed to rescue US from G.D.• 1st he declared a bank holiday- shutting down every bank in the

nation to prevent the public from continuing to w/draw funds• After this he launched a special session of Congress resulting in a

huge # of laws & programs- it came to be known as the 100 Days• W/in 1 week, Congress passed both the Emergency Banking relief

Act & the Econ Act to balance the budget (they debated over them only 40 minutes b/4 passing them)- both were Hoover left-overs

• By summer of 1933, 75% of nation’s banks back in business & 1 billion had been deposited back in banks

• Besides helping businesses, Congress passed laws aimed at the poor

– The Federal Emergency Relief Act (FERA) provided 500 mill in grants to the unemployed (short-term jobs) in cities

– The Agricultural Adjustment Act was passed to help farmers- raised market prices on livestock & crops- also paid subsidies

– The 100 Days also saw the creation of the TVA- used to build dams in rural TN

• Several factors why New Deal programs successful:– Both Demos & Repubs worked together in Congress– FDR sought advice from wide range of intellectuals- he called Brain Trust-in creating ND

programs– Finally FDR won support from common Ams w/ his fireside chats on the radio- instilling

confidence where before there had been despair and fear.

Work Programs• One of FDR’s most popular programs was the Civilian Conservation Corps (CCC)

a work program est’d to relieve unemployment & poverty among young men. – In ‘33, the govt hired over 250,000 men b/t ages of 17-24 to work in nat’l parks &

forests: planting trees, repairing facilities, building trails, & stocking fish in lakes & rivers

– By ’39, the CCC had provided work for 2.5 million Americans & improved America’s wilderness areas.

• Like the CCC, the Works Progress Administration was a fed prog aimed at ending unemployment.

• Targeted mainly blue-collar workers by funding construction projects across the country- – 650,000 miles of roads, 78,000 bridges, 125,000 bldgs, 700 miles of airport runways

• It also attempted to aid artists by funding Fed. Writers Project, & Fed. Artists Project- – 225,000 concerts given to 150 million people & 475,000 works of art were created

• @ same time, labor made gains from Nat’l Indus. Recovery Act (NIRA)- – Called for govt monitoring of big business to protect workers’ rights

• Govt also supported workers by passing Fair Labor Standards Act– This eliminated child labor, est’d minimum wage, & called for higher OT wages

• Yet, women & minorities cont’d to be underpaid & were often barred from union membership- So some felt the ND only paid lip service to labor struggles

Critics of the New Deal• While most Ams praised the ND for saving the US, others raised questions

about FDR’s approach to ending the GD• Some Af-Ams felt FDR was too concerned w/ Southern white Democratic

voters & was not doing enough to support minorities’ economic gains• Others complained that FDR was exploiting different groups’ neediness in

order to advance his own ambitions (i.e.- creating new programs just to gain votes)

• Others complained b/c of the level of interference the ND took in Ams’ lives– Francis Townsend was CA dr. called for an extensive old-age policy for elderly-

$200/month, but it had to be spent EVERY month (no saving!)– Huey Long said it wasn’t enough & called for the govt to take millionaires’ $$

through taxation & spread it more evenly among the poor -Share Our Wealth -serious contender in ’36 election but killed by an assassin’s bullet

– Fr. Charles Coughlin- a Cath priest & notorious anti-Semite complained that FDR was a tool of big business & part of a Jewish conspiracy-joined w/ Long’s & Townsend's successor Gerald Smith in Union Party but was trounced in election

• Am Liberty League (ALL) was a major opponent of FDR. Composed of members of big business (GM, General Foods, Ford, etc) & conservative Democrats (yes they have those!!) who were alarmed @ FDR’s “socialist leanings.” – They complained that he was trying to “Sovietize” the Stock Exchange, railroads,

radios, electrical power, & esp. labor. • Even as 1.5 million workers went on strike in ‘34 protesting unfair labor

practices & bad conditions, they formed a Citizen’s Army which fought on behalf of employers

2nd Critics New Deal & Its Critics

• In spite of criticism, FDR & Congress to experiment w/ ND progs & policies b/t ’34-35- beginning another set of progs dubbed the “2nd 100 Days”

• FDR & a Demo-dominated Congress dumped 1 billion in dollars (nice alliteration, eh?) into the econ for: – Building public works & granaries for storage during droughts– Grants for writers & artists– Supported rural electrification projects, – Est’d the Social Security System

• However, FDR’s successes making laws didn’t always enjoy the same success with the Supreme Court (whose job it is to determine the constitutionality of laws)-– In ’35, the SC declared certain laws designed to stop farm foreclosures uncon,

then they looked at NIRA (FDR’s centerpiece for econ recovery) & did the same thing.

– FDR grew increasingly frustrated- so he asked Congress for the power to appoint 6 new justices (claiming the current judges were too old & slow to get things done)

• Congress (even a Demo Congress) was stunned @ the idea of his “Court-packing” idea. He succeeded only in offending Congress, alienating the SC, the Demo Party, & the Am public- who all thought it was sneaky

Legacy of the New Deal• Three Legacies of FDR & New Deal• FDR reshaped the presidency & role of government than almost

any other- assuming more power for the executive branch (in proposing laws & type f laws passed)- the fed govt became more centralized

• Related to that the role of the government grew during this time- playing a larger & more direct role in people’s lives. The “welfare state” was created during this presidency as government accepted that it had a duty to take care of the needy

• Third, Minorities became more involved in govt under the ND & cont’d to become more involved in government as decades passed (just like concept of welfare state cont’d to present day)

The Big Idea/Question• Ultimately we have to ask these questions:

• Did it work? & Was he a good president?• According to stats from ’29-’39 the ND was effective in restoring our econ

health.– Rate of unemployment dropped every year from ’34 to ’37– Overall # of business failures decreased during ’30s– Farmers benefited from subsidies (if not other progs like AAA)– Public confidence in banks improved – Overall millions of Ams were aided by ND progs & policies

• However: – Unemployment was still high in ’38 (19%), – The gross National Product (GNP grew at a slow pace – Federal debt increased DRAMATICALLY

• Only WWII shifted the US econ from surviving to thriving– War boosted GNP over 200% & unemployment dropped to 1.9%

• FDR attempted an uncon move w/ his court-packing scheme (& the

consequences would have been disastrous) & some of his progs did not work, but he was willing to try almost anything to help Ams break out of the GD