11.4 f.d.r and the new deal 1933 1939


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11.4 f.d.r and the new deal 1933 1939

  1. 1. Do Now- Focus & Motivate Objective: To examine the effects of the Great Depression Do-Now: Write a reaction to the photo: “Migrant Mother” [Nipomo, CA. 1936], by Dorothea Lange For example, what emotions does it elicit? Why? Explain your thought
  2. 2. Learning Goal NJCCCS: 6.1.12.A.9.a Analyze how the actions and policies of the United States government contributed to the Great Depression.
  3. 3. Hooked on the Horn of Plenty One of the main causes of the  The Great Depression Great Depression was continued the economic overproduction by both farm and destruction of Europe, which factory. had not yet fully recovered from WWI. The nations ability to produce goods had outrun its capacity to consume  In the 1930s, a terrible or pay for them. drought scorched the Mississippi Valley, causing All the money was being invested in thousands of farms to be sold. factories and other agencies of production; not enough money was going into salaries and wages. Overexpansion of credit also contributed to the depression.
  4. 4. The Unemployed, by John LangleyHoward, 1937. In this painting Howardsoberly evokes the dispirited state of millionsof unemployed Americans during the
  5. 5. Rugged Times for Rugged Individuals In the beginning of the Great  Hoover developed a plan in Depression, President Hoover which the government would believed that industry and self- assist the railroads, banks, and reliance had made America rural credit corporations in the great and that the government hope that if financial health was should play no role in the restored at the top of the welfare of the people. economic pyramid, then unemployment would be He soon realized, however, relieved as the prosperity that the welfare of the people trickled down. in a nationwide catastrophe was a direct concern of the  Hoovers efforts were criticized government. because he gave government money to the big bankers who had allegedly started the depression.
  6. 6. “Hooverville” in Seattle, 1934. In the earlyyears of the depression, desperate, homelesspeople constructed shacks out of scavengedmaterials. These shanty-towns sprang up incities across the country.
  7. 7. Home Relief Station, by Louis Ribak, 1935-1936. Destitute anddespairing, millions of hardworking Americans like these had to endure thedegradation and humiliation of going on relief as the pall of depressiondescended over the land
  8. 8. Herbert Hoover Battles the Great Depression President Hoover secured from Congress $2.25 billion for useful public works. (ex. the Hoover Dam) Hoover was strongly opposed to all schemes that he saw as "socialistic." He vetoed the Muscle Shoals Bill, which was designed to dam the Tennessee River and sell government-produced electricity in competition with citizens in private companies. In 1932, Congress established the Reconstruction Finance Corporation (RFC), which was designed to provide indirect economic relief by assisting insurance companies, banks, agricultural organizations, railroads, and state and local governments. Congress passed the Norris-La Guardia Anti-Injunction Act in 1932, outlawing antiunion contracts and fording federal courts to issue injunctions to restrain strikes, boycotts, and peaceful picketing.
  9. 9. Hoover in Media
  10. 10. Routing the Bonus Army in Washington Veterans of WWI were among the hardest hit by the Great Depression. A drive developed for the premature payment of the suspended bonus vetoed by Congress in 1924. The "Bonus Expeditionary Force" (BEF), which claimed about 20,000 people, converged on the capital in the summer of 1932, demanding the immediate payment of their entire bonus. After the BEF refused to leave the capital, President Hoover sent in the army to evacuate the group. The ensuing riots and incidents brought additional public abuse of Hoover.
  11. 11. The Bonus Army in Washington, D.C., 1932. World War I veterans fromMuncie, Indiana, were among many contingents to set up camp in thecapital during the summer of 1932, determined to remain there until theyreceived full payment of their promised bonuses.
  12. 12. Japanese Militarists Attack China In September 1931, Japanese imperialists, seeing that the Western world was bogged down in the Great Depression, invaded the Chinese province of Manchuria. Although a direct violation of the League of Nations, the League was unable to do anything because it could not count on Americas support. In 1932, Secretary of State Henry L. Stimson decided to only diplomatically attack the Japanese aggressors by issuing the Stimson doctrine. It declared that the United States would not recognize any territorial acquisitions achieved by force. Japan ignored the doctrine and moved onto Shanghai in 1932. The violence continued without the League of Nations intervention as WWII was born.
  13. 13. Japanese Aggression in Manchuria. ThisAmerican cartoon lambastes Japan fordisregarding international treaty agreementswhen it seized Manchuria in 1931. The next yearthe Japanese would set up the puppet state of
  14. 14. Hoover Pioneers the Good Neighbor Policy President Hoover brought better relations with Americas Latin American neighbors. An advocate of international goodwill, he withdrew American troops from Latin America. He had engineered the foundation of a "Good Neighbor" policy.
  15. 15. Gearing Towards a New Election As the election of 1932  The Democrats chose neared, unemployment Franklin Delano and poverty brought Roosevelt. He had been dissent of President born to a wealthy New Hoover and a demand for York family and served as a change in policy. the governor of New York. The Republicans nominated Herbert Hoover to run for president in the election of 1932.
  16. 16. FDR: Politician in a Wheelchair  F.D.R. who fought for a hobbling mobility schooled himself in patience, tolerance, compassion and strength of will.  Franklin D. Roosevelts wife, Eleanor Roosevelt, was to become the most active First Lady in history.  She powerfully influenced the policies of the national government, battling for the impoverished and oppressed.  Roosevelts commanding presence and golden speaking voice made him the premier American orator of his generation.
  17. 17. Roosevelt was America’s mostactive First Lady and commandedenormous popularity and influenceduring FDR’s presidency. Hereshe emerges, miner’s cap in hand,from an Ohio coal mine.As a young woman, she workedfor the Woman’s Trade Union, andthe League of Women Voters. Shebrought an unprecedentednumber of women activists withher to Washington.She participated in lobbying,speeches and syndicatednewspaper columns.
  18. 18. Presidential Hopefuls of 1932 In the Democratic campaign of 1932, Roosevelt attacked the Republican Old Deal and concentrated on preaching a New Deal for the "forgotten man." He promised to balance the nations budget and decrease the heavy Hooverian deficits. Although Americans distrust in the Republican party was high because of the dire economic state of the country (Great Depression), Herbert Hoover and the Republican party had hopes that the worst of the Depression was over. Hoover reaffirmed his faith in American free enterprise and individualism.
  19. 19. Who is F.D.R? Stricken with polio and paralyzed from the waist down, F.D.R. was eager to prove he was not an invalid (“Roosevelt is Robust”) Many of his speeches were “ghostwritten” by the Brain Trust [a small group of reform- minded intellectuals] These youngish college professors predominantly wrote much of the New Deal “Out of the Red with Roosevelt”
  20. 20. Hoovers Humiliation in Franklin Roosevelt won the election of 1932 1932 by a sweeping majority, in both the popular vote and the Electoral College. Beginning in the election of 1932, blacks became, notably in the urban centers of the North, a vital element of the Democratic Party.
  21. 21. The Perils of a Lame Duck Hoover, defeated and repudiated, continued to be president for 4 months. As a lame duck, he was helpless to embark upon any long-range policies without the cooperation of Roosevelt who was uncooperative. Roosevelt’s reply to the press? “It’s no my baby,” fought shy of assuming responsibility without authority With Washington deadlocked, the economic machine of the U.S. clanked to a virtual halt 1:4 workers tramped the streets, feet weary and hands idle Banks were locking their doors all over, as people nervously stuffed paper money under mattresses Hooverites, then and later, accused Roosevelt of deliberately permitting the depression to worsen so that he could emerge the more spectacularly as a savior.
  22. 22. Unemployed andFrustrated. Democraticcandidate FranklinRoosevelt offered hope, iffew concrete plans, to themillions struggling to copewith the Great Depression.
  23. 23. Happy Days Are Here Again  The Vanquished and the Victor. A dour Hoover and an ebullent Roosevelt ride to the inauguration ceremonies on March 4th, 1933. This magazine cover was never published, presumably because of the editors’ sensitivity about the attempted assassination of Roosevelt when he was riding in an open car in Florida on February 15th, 1933, less than three weeks earlier. The attempt of Roosevelt’s life ended in the death of Chicago mayor Anton J. Cermak.
  24. 24. Summarizer Why do you think  1. Individually come up Herbert Hoover was so with a reason [utilize the ineffective during the worksheet on Hoover’s Great Depression? policies]  2. Pair up and discuss your answer  3. Report to the rest of the class.
  25. 25. Do-Now
  26. 26. FDR and the Three Rs: Relief, Recovery, Reform Franklin Roosevelt was inaugurated on March 4, 1933. On March 6-10, President Roosevelt declared a national banking holiday as a prelude to opening the banks on a sounder basis. The Hundred Days Congress/Emergency Congress (March 9-June 16, 1933) passed a series laws in order to cope with the national emergency (The Great Depression). Roosevelts New Deal programs aimed at 3 Rs: relief, recovery, reform. Short-range goals were relief and immediate recovery, and long-range goals were permanent recovery and reform of current abuses.
  27. 27. Preemptive Strike Congress gave President Roosevelt extraordinary blank-check powers: some of the laws it passed expressly delegated legislative authority to the president. The New Dealers embraced such progressive ideas as unemployment insurance, old-age insurance, minimum-wage regulations, conservation and development of natural resources, and restrictions on child labor.
  28. 28. Roosevelt Tackles Money and Banking The impending banking crisis caused Congress to pass the Emergency Banking Relief Act of 1933. It gave the president power to regulate banking transactions and foreign exchange and to reopen solvent banks. President Roosevelt began to give "fireside chats" over the radio in order to restore public confidence of banks.
  29. 29. The Champ: FDR Chatting with Reporters. Rooseveltmastered the press as few presidents before or sincehave been able to do. He was also ingenious in findingopportunities to converse wit reporters in situations wherehe could conceal his physical limitations.
  30. 30. Banking and Currency Congress then passed the Glass-Steagall Banking Reform Act, creating the Federal Deposit Insurance Corporation (FDIC). A reform program, the FDIC insured individual bank deposits up to $5,000, ending the epidemic of bank failures. In order to protect the shrinking gold reserve, President Roosevelt ordered all private holdings of gold to be given to the Treasury in exchange for paper currency and then the nation to be taken off the gold standard-Congress passed laws providing for these measures. The goal of Roosevelts "managed currency" was inflation, which he believed would relieve debtors burdens and stimulate new production. Inflation was achieved through gold buying; the Treasury purchased gold at increasing prices, increasing the dollar price of gold. This policy increased the amount of dollars in circulation.
  31. 31. Creating Jobs for the Jobless President Roosevelt had no qualms about using federal money to assist the unemployed in order to jumpstart the economy. Congress created the Civilian Conservation Corps (CCC), which provided employment for about 3 million men in government camps. Their work included reforestation, fire fighting, flood control, and swamp drainage.
  32. 32. Dealing with Unemployment Congresss first major effort to deal with the massive unemployment was to pass the Federal Emergency Relief Act. The resulting Federal Emergency Relief Administration (FERA) was headed by Harry L. Hopkins. Hopkinss agency granted about $3 billion to the states for direct relief payments or for wages on work projects Created in 1933, the Civil Works Administration (CWA), a branch of the FERA, was designed to provide temporary jobs during the winter emergency Thousands of unemployed were employed at leaf raking and other manual-labor jobs.
  33. 33. CCC Workers in Alaska,1939. These Tlingit carversin Alaska’ southeasternpanhandle were part of aCCC project to restoretotem poles. Here theystarted with a pole carved inthe likeness of AbrahamLincoln.
  34. 34. Farmers’ Relief Relief was given to the farmers with the Agricultural Adjustment Act (AAA), making available millions of dollars to help farmers meet their mortgages. The Home Owners Loan Corporation (HOLC) assisted many households that had trouble paying their mortgages.
  35. 35. A Day for Every Demagogue As unemployment and suffering continued, radical opponents to Roosevelts New Deal began to arise. Father Charles Coughlins anti-New Deal radio broadcasts eventually became so anti-Semitic and fascistic that he was forced off the air. Senator Huey P. Long publicized his "Share Our Wealth" program in which every family in the United States would receive $5,000. His fascist plans ended when he was assassinated in 1935. Dr. Francis E. Townsend attracted millions of senior citizens with his plan that each citizen over the age of 60 would receive $200 a month.
  36. 36. Huey Long (21893-1935) Long pursued progressive policies as governorof Louisiana, even while he ruled the state with a dictatorial hand. Aflamboyant and unpredictable populist, he set the orthodox politicalestablishment on its ear, especially after he became a U.S. senator in 1930.Long’s admirers called him the “Kingfish”; Franklin Roosevelt called him“one of the two most dangerous men in the country.” (The other, saidRoosevelt, was General Douglas MacArthur)
  37. 37. The WPA Congress passed the Works Progress Administration (WPA) in 1935, with the objective of employment on useful projects (i.e. the construction of buildings, roads, etc.). Taxpayers criticized the agency for paying people to do "useless" jobs such as painting murals.
  38. 38. 8 Years, 9 million employed. Over a period of 8 years, nearly 9 million people were given jobs, not handouts. The WPA nourished much precious talent, preserved self-respect, and fostered the creation of more than a million pieces of art, many of them publicly displayed.
  39. 39. WPA Mural, by Victor Arnatuoff (1896-1979), 1934. The PedestrianScene, painted on a wall of Coit Tower in San Francisco, was one of aseries of murals commissioned by the federal government to employartists during the Great Depression
  40. 40. New Visibility for Women  Secretary of Labor- Frances Perkins (1880- 1965) became the U.S.A’s first woman cabinet member.  Mary McLeod Bethune (1875-1955), director of the Office of Minority Affairs in the National Youth Administration, served as the highest- ranking African American in the Roosevelt administration
  41. 41. Frances Perkins (1880-1965) at the Site of the Golden Gate BridgeProject, 1935. The First woman cabinet member, Perkins served assecretary of labor under Roosevelt. She was subjected to muchundeserved criticism from male businessmen, laborers, and politicians.They sneered that FDR “kept her in labor” for many years.
  42. 42. Mary McLeod Bethune (1875-1935)The daughter of ex-slaves and founderof a college in Florida, Bethune becamethe highest-ranking African American inthe Roosevelt administration when shewas appointed director of the Officer ofMinority Affairs in the National YouthAdministration (NYA). From this baseshe organized the “Black Cabinet” tomake sure blacks benefitted from thepicketing against segregated hiringpractices at the Peoples Drug Storechain, one of the earliest targets of theblack civil rights movement.
  43. 43. Ruth Benedict Ruth Benedict (1887- 1948) carried on the work of her mentor, Franz Boas, by developing “the culture and  Wrote: Patterns of personality Culture (1934), movement” in the which established 1930s & 1940s the study of cultures as collective personalities and stating they had its own “more or less consistent pattern of thought and action”
  44. 44. Sisters Are Doing It For Themselves  Margaret Mead (1901-1978) wrote about sexuality, gender roles, and intergenerational relationships.  Wrote 34 books and was a curator at the American Museum of Natural History in NYC  Popularized Cultural Anthropology• Pearl S. Buck (1892-1973), Novelist. Raised in China by Presbyterian missionaries, and author of The Good Earth (1931), a tale of Chinese peasantry • Earned the Nobel Prize for literature in 1938, becoming the 3rd American (After Upton Sinclair and Eugene O’Neill)
  45. 45. A Helping Hand for Industry and Labor The National Recovery Administration (NRA) was designed to assist industry, labor, and the unemployed. Individual industries, through "fair competition" codes, were forced to lower their work hours so that more people could be hired; a minimum wage was also established. Workers were formally guaranteed the right to organize and bargain collectively through representatives of their choosing, not through the companys choosing.
  46. 46. Dwindling Support Although initially supported by the public, collapse of the NRA came in 1935 with the Supreme Courts Schechter decision in which it was ruled that Congress could not "delegate legislative powers" to the president and that congressional control of interstate commerce could apply to local fowl business.
  47. 47. PWA and the 21st Amendment  In order to raise federal revenue and provide a level of employment, The Public Works Congress repealed Administration (PWA) was prohibition with the 21st intended for both industrial Amendment in late recovery and for unemployment 1933. relief. Headed by Harold L. Ickes, the agency spent over $4 billion on thousands of projects, including public buildings and highways.
  48. 48. Grand Coulee Dam on the Columbia River, Washington State.The Grand Coulee Damn was one of the most ambitious projects ofthe New Deal’s Public Works Administration. It is one of the fewmanmade constructions visible from outer space, the largest concretestructure in the United States, and the central facility in the ColumbiaBasin Project, which generates electricity for the Pacific Northwestand provides irrigation for half a million acres of Columbia Valleyfarmland- services that have transformed the life of the region.
  49. 49. Do Now: Which new dealprogram did you think was thebest and why? (Base these off the presentations from yesterday) Objectives: Students will be able to...(1) Describe thefunction of the major New Deal programs (2) analyze the info and form opinions on its successHomework: Continue Reading Through Chapter on your Own
  50. 50. Paying Farmers Not to Farm Congress created the Agricultural Adjustment Administration (AAA). It established "parity prices" for basic commodities. "Parity" was the price set for a product that gave it the same real value, in purchasing power, that it had from 1909-1914. The agency also paid farmers to reduce their crop acreage, eliminating surpluses, while at the same time increasing unemployment. The Supreme Court struck down the AAA in 1936, declaring its regulatory taxation provisions unconstitutional.
  51. 51. 2 nd Attempt The New Deal Congress passed the Soil Conservation and Domestic Allotment Act of 1936. The reduction of crop acreage was now achieved by paying farmers to plant soil-conserving crops. The Second Agricultural Adjustment Act of 1938 continued conservation payments; if farmers obeyed acreage restrictions on specific commodities, they would be eligible for parity payments.
  52. 52. Dust Bowls and Black Blizzards Late in 1933, a prolonged drought struck the states of the trans-Mississippi Great Plains. The Dust Bowl was partially caused by the cultivation of countless acres, dry-farming techniques, and mechanization. Sympathy towards the affected farmers came with the Frazier-Lemke Farm Bankruptcy Act, passed in 1934. It made possible a suspension of mortgage foreclosures for 5 years. It was struck down in 1935 by the Supreme Court.
  53. 53. Covering the prairie with wheat in place of natural drought-resistant grasses and leaving unused fields bare mixed with plow-based farming culminating in the loss of fertile topsoil led soil to blow away in the winds.By 1933, 40 blackblizzards occurred andmillions fled theregion. It wasn’t until1939 that the rainreturned and reliefcame.
  54. 54. Resettlement In 1935, President Roosevelt set up the Resettlement Administration, given the task of moving near-farmless farmers to better lands. The Indian Reorganization Act of 1934 encouraged Native American tribes to establish self- government and to preserve their native crafts and traditions. 77 tribes refused to organize under the law, while hundreds did organize.
  55. 55. Learning Goal: NJCCCS 6.1.12.A.10.b Assess the effectiveness of governmental policies enacted during the New Deal period (i.e., the FDIC, NLRB, and Social Security) in protecting the welfare of individuals.
  56. 56. Battling Bankers and Big Business In order to protect the public against fraud, Congress passed the "Truth in Securities Act" (Federal Securities Act), requiring promoters to transmit to the investor sworn information regarding the soundness of their stocks and bonds. In 1934, Congress took further steps to protect the public with the Securities and Exchange Commission (SEC). It was designed as a watchdog administrative agency.
  57. 57. The TVA Harnesses the Tennessee River Zealous New Dealers accused the electric-power industry of gouging the public with excessive rates. 2.5 million of Americas most poverty-stricken people inhabited Muscle Shoals. If the government constructed a dam on the Tennessee River in Muscle Shoals, it could combine the immediate advantage of putting thousands of people to work with a long-term project for reforming the power monopoly. In 1933, the Hundred Days Congress created the Tennessee Valley Authority (TVA). It was assigned the task of predicting how much the production and distribution of electricity would cost so that a "yardstick" could be set up to test the fairness of rates charged by private companies.
  58. 58. Projects-A-Go The large project of constructing dams on the Tennessee River brought to the area full employment, the blessings of cheap electric power, low-cost housing, abundant cheap nitrates, the restoration of eroded soil, reforestation, improved navigation, and flood control. The once-poverty-stricken area was being turned into one of the most flourishing regions in the United States. The conservative reaction against the "socialistic" New Deal would confine the TVAs brand of federally guided resource management and comprehensive regional development to the Tennessee Valley.
  59. 59. More than twenty damns were constructed on the river’s tributaries as partof a massive project to control flooding, generate hydroelectric power, andrevitalize the Tennessee Valley region, while also creating jobs for theunemployed. The shaded area represents the area served by TVA electricpower.
  60. 60. Housing Reform To speed recovery and better homes, President Roosevelt set up the Federal Housing Administration (FHA) in 1934. To strengthen the FHA, Congress created the United States Housing Authority (USHA) in 1937. It was designed to lend money to states or communities for low-cost construction.
  61. 61. Occupied Households with Electric Service- 1900-1960
  62. 62. Social Security The more important success of New Dealers was in the field of unemployment insurance and old-age pensions. The Social Security Act of 1935 provided for federal-state unemployment insurance. To provide security for old age, specified categories of retired workers were to receive regular payments from Washington. Republicans were strongly opposed to Social Security. Social Security was inspired by the example of some of the more highly industrialized nations of Europe. In an urbanized economy, the government was now recognizing its responsibility for the welfare of its citizens.
  63. 63. A New Deal for Unskilled Labor When the Supreme Court struck down the National Recovery Administration (NRA), Congress, sympathetic towards labor unions, passed the National Labor Relations Act of 1935 (Wagner Act). This law created a powerful National Labor Relations Board for administrative purposes and reasserted the rights of labor to engage in self- organization and to bargain collectively through representatives of its own choice.
  64. 64. The CIO The stride for unskilled workers to organize was lead by John L. Lewis, boss of the United Mine Workers. He formed the Committee for Industrial Organization (CIO) in 1935. The CIO led a series of strikes including the sit-down strike at the General Motors automobile factory in 1936. Congress passed the Fair Labor Standards Act (Wages and Hours Bill) in 1938. Industries involved in interstate commerce were to set up minimum-wage and maximum-hour levels. Labor by children under the age of 16 was forbidden. In 1938, the CIO joined with the AF of L and the name "Committee for Industrial Organization" was changed to "Congress of Industrial Organizations."-led by John Lewis. By 1940, the CIO claimed about 4 million members.
  65. 65. General Motors Sit-Down Strikers, Flint, Michigan, 1937. Strikerslike these sometimes kept their spirits up with the song “Sit Down”:When the boss won’t talkDon’t take a walk;Sit down, sit down.
  66. 66. Labor Triumphant. Aftergenerations of struggle,organized labor madedramatic gains inmembership and bargainingpower during the New Dealyears.
  67. 67. Landon Challenges "the Champ" in 1936 As the election of 1936 neared, the New Dealers had achieved considerable progress, and millions of "reliefers" were grateful to their government. The Republicans chose Alfred M. Landon to run against President Roosevelt. The Republicans condemned the New Deal for its radicalism, experimentation, confusion, and "frightful waste." President Roosevelt was reelected as president in a lopsided victory. FDR won primarily because he had appealed to the "forgotten man." He had forged a powerful and enduring coalition of the South, blacks, urbanites, and the poor.
  68. 68. Nine Old Men on the Supreme Bench Ratified in 1933, the 20th Amendment shortened the period from election to inauguration by 6 weeks. FDR took the presidential oath on January 20, 1937, instead of the traditional March 4. Roosevelt saw his reelection as a mandate to continue the New Deal reforms. The ultraconservative justices on the Supreme Court proved to be a threat to the New Deal as the Roosevelt administration had been thwarted 7 times in cases against the New Deal.
  69. 69. NJCCCS Learning Goal 6.1.12.A.10.a Explain how and why conflict developed between the Supreme Court and other branches of government over aspects of the New Deal.
  70. 70. Fight at the Bench With his reelection, Roosevelt felt that the American people had wanted the New Deal. If the American way of life was to be preserved, he argued, and then the Supreme Court had to get in line with public opinion. President Roosevelt released his plan to ask Congress to pass legislation allowing him to appoint one new justice to the Supreme Court for every member over the age of 70 who would not retire; the maximum number of justices would now be 15. Shocking both Congress and the public, the plan received much negative feedback.
  71. 71. Supreme Court, 1932
  72. 72. Judiciary Reorganization Bill President Roosevelt proposed the Judiciary Reorganization Bill (called the "court-packing bill" by its opponents), which would have increased the size of the Supreme Court and permitted the appointment of additional (presumably pro-New Deal) Justices. The bill, however, had many opponents, including Roosevelts own Vice President John Nance Garner, and was defeated in Congress. President Roosevelt was belittled for attempting to break down the checks and balances system among the 3 branches of government.
  73. 73. The Response to Roosevelt’s “Court-Packing”Plan, 1937. Even the Democratic donkey kicked up astorm in opposition to President Roosevelt’s plan toexpand the Supreme Court to as many as fifteen
  74. 74. The Court Changes Course Justice Owen J. Roberts, formerly regarded as a conservative, began to vote liberal. In March 1937, the Supreme Court upheld the principle of state minimum wage for women, reversing its stand on a different case a year earlier. The Court, now sympathetic towards the New Deal, upheld the National Labor Relations Act (Wagner Act) and the Social Security Act. A succession of deaths and resignations of justices enabled Roosevelt to appoint 9 justices to the Court. FDR aroused conservatives of both parties in Congress so that few New Deal reforms were passed after 1937. He lost much of the political goodwill that had helped him to win the election of 1936.
  75. 75. The Twilight of the New Deal In Roosevelts first term, from 1933-1937, unemployment still ran high and recovery had been relatively slow. In 1937, the economy took another downturn as new Social Security taxes began to cut into payrolls and as the Roosevelt administration cut back on spending out of the continuing reverence for the orthodox economic doctrine of the balanced budget.
  76. 76. Keynesianism Economics The New Deal had run deficits for several years, but all of them had been somewhat small and none was intended. Roosevelt embraced the recommendations of the British economist John Maynard Keynes. The newly-accepted "Keynesianism" economic program was to stimulate the economy by planned deficit spending. Keynesianism- An economic theory based on the thoughts of British economist, John Maynard Keynes, holding that central banks should adjust interest rates and governments should use deficit spending and tax policies to increase purchasing power and hence
  77. 77. Reorganization and Hatch Acts In 1939, Congress passed the Reorganization Act, giving President Roosevelt limited powers for administrative reforms, including the new Executive Office in the White House. Congress passed the Hatch Act of 1939, barring federal administrative officials from active political campaigning and soliciting. It also forbade the use of government funds for political purposes as well as the collection of campaign contributions from people receiving relief payments.
  78. 78. Employment Agency, by Isaac Soyer, 1937.Millions of jobless Americans felt the despairSoyer captured in this painting, as depression-era unemployment reached levels never seenbefore or since in American history.
  79. 79. New Deal or Raw Deal? Foes of the New Deal charged the president of spending too much money on his programs, significantly increasing the national debt; by 1939, the national debt was at $40,440,000,000. Lavish financial aid and relief were undermining the old virtue of initiative. Private enterprise was being suppressed and states rights were being ignored. The most damning indictment of the New Deal was that it did not end the depression; it merely administered "aspirin, sedatives, and Band-Aids." Not until World War II was the unemployment problem solved.
  80. 80. FDRs Balance Sheet New Deal supporters had pointed out that relief, not economy, had been the primary objective of their war on the depression. Roosevelt believed that the government was morally bound to prevent mass hunger and starvation by "managing" the economy. FDR was a Hamiltonian in his idea of big government, but a Jeffersonian in his concern for the "forgotten man."
  81. 81. Our Skipper. This pro-FDR cartoon depicts a confident Rooseveltignoring his critics while heading, cheerily toward economic recovery. Infact, FDR’s New Deal brought neither the recovery he promised nor theruin his detractors prophesized. The depression dragged on with onlyperiodic improvement for nearly eight years under his leadership, until thecataclysmic emergency of World War II finally banished unemployment
  82. 82. New Deal AcronymsAcronym DefinitionAAA Agricultural Adjustment AdministrationCCC Civilian Conservation CorpsCWA Civil Works AdministrationFERA Federal Emergency Relief AdministrationFHA Federal Housing AdministrationFSA Farm Security AdministrationHOLC Home Owners Loan CorporationNRA National Recovery AdministrationNYA National Youth AdministrationPWA Public Works AdministrationREA Rural Electrification AdministrationSSA Social Security AdministrationTVA Tennessee Valley AuthorityWPA Work Projects (Progress) Administration
  83. 83. Opponents of the New Deal Who opposed the New Deal? Why did they oppose it? What is deficit spending? What comparisons can you make to our current economy?
  84. 84.  People on the Right:  Thought he was putting too much regulations on Government  Deficit Spending – scared business leaders  Formed American Liberty League – Organized opposition to the New Deal People on the Left:  Believed he had not gone far enough  Wanted more dramatic intervention Opposition from Right & Left
  85. 85. Your task…. Using the chart on the back and the book, identify what those major programs accomplished, and who might have opposed them NJCCCS 6.1.12.C.10.a Evaluate the effectiveness of economic regulations and standards established during this time period in combating the Great Depression.