1 FDR & The New Deal , 1936 & 1938 ELECTIONS Election (D) Franklin Delano Roosevelt vs. (R) Herbert Hoover 1932 Presidential Election

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1 1 FDR & The New Deal , 1936 & 1938 ELECTIONS Election (D) Franklin Delano Roosevelt vs. (R) Herbert Hoover 1932 Presidential Election revolved around The Great Depression FDR attacked Hoover s policies but did not offer his own Promised to put Political & Economic System at the service of the people FDR portrayed optimism & Hoover portrayed gloom FDR won 42 states, 23 million votes & 472 Electoral Votes... Hoover won 6 states, 16 million votes & 59 Electoral Votes FDR promised a new deal with the American people Electoral Map Election (D) FDR vs. (R) Alfred Landon FDR was supported by Political Machines, Labor Unions, Farmers, Minorities, Those on Relief, Moderate Republicans, White Southerners First time since Reconstruction the majority of Northern Blacks voted for a Democrat FDR pledged to continue the New Deal FDR won 46 states, 28 million votes & 523 Electoral Votes... Landon won 2 states, 17 million votes & 8 Electoral Votes Elections Congressional Elections FDR opposed Conservative Democrats who did not support the Second New Deal Democratic critics of FDR won their elections Senate Republicans gained 7 seats House Republicans gained 75 seats Due to Congressional loses, FDR did not propose anymore New Deal Reforms in Congressional Elections 9 The New Deal: Explanation, Critics & Beginnings 10 What was the New Deal? 2 major legislative acts passed between 1933 & 1938 Created gov t controlled programs to pull America

2 Created gov t controlled programs to pull America out of the Great Depression Programs focused on the 3 Rs : Relief: for unemployed & poor Recovery: of economy to normalcy Reform: of financial system to prevent future Great Depressions 11 The New Deal Coalition Created by FDR & included: The Democratic Party, Urban Political Machines, Labor Unions, (racial, ethnic & religious) minorities, liberal farm groups, intellectuals & White Southerners Dominated U.S. politics from 1932 until First New Deal Legislation passed between Dealt with 1) Banking, 2) Industry & 3) Farming Included the creation of the following groups: Farm Credit Admin (FCA), Civilian Conservation Corps

3 Included the creation of the following groups: Farm Credit Admin (FCA), Civilian Conservation Corps (CCC), Federal Emergency Relief Admin (FERA), Agricultural Adjustment Admin (AAA), Tennessee Valley Authority (TVA), Home Owners Loan Corporation (HOLC), Federal Deposit Insurance Corporation (FDIC), National Recovery Admin (NRA), Public Works Admin (PWA), Civil Works Admin (CWA), Securities & Exchange Commission (SEC), Federal Housing Admin (FHA) 13 First New Deal Included the passage of the following laws: Emergency Banking Act, Economy Act, Banking Act of 1933, National Industrial Recovery Act 14 Second New Deal Legislation passed between 1935 & 1938 Dealt with: 1) promoting Labor Unions, 2) relief programs, 3) aid

4 Legislation passed between 1935 & 1938 Dealt with: 1) promoting Labor Unions, 2) relief programs, 3) aid programs for tenant farmers & migrant workers & 4) working conditions Included the creation of the following groups: Works Progress Admin (WPA), Soil Conservation Service (SCS), Rural Electrification Admin (REA), National Youth Admin (NYA), Farm Security Admin (FSA) 15 Second New Deal Included the passage of the following laws: National Labor Relations Act, Social Security Act, Revenue Act of 1935, Agricultural Adjustment Act of 1938, Revenue Act of 1938, Fair Labor Standards Act 16 New Deal & Supreme Court The Supreme Court reviewed & determined several of FDRs proposals unconstitutional during

5 The Supreme Court reviewed & determined several of FDRs proposals unconstitutional during the First New Deal Supreme Court reviewed & determined Social Security Act & National Labor Relation Act constitutional FDR wanted to add 6 new Supreme Court Justices to balance the power of the Nine Old Men Congress rejected this court packing as a power grab By FDR appointed 8 of the 9 Supreme Court Justices 17 New Deal Critics Criticized by Conservatives & Liberals Republican Big Business leaders & wealthy opposed New Deal New Deal was destroying the Constitution & free enterprise Liberal critics included: Francis Townsend (California): wanted to give $200 pension to all citizens over must spend pension within 30 days to stimulate economy

6 Francis Townsend (California): wanted to give $200 pension to all citizens over must spend pension within 30 days to stimulate economy Father Charles Coughlin (Michigan): Urged gov t to nationalize all banks & return to Silver Standard Sen. Huey Long (Louisiana): Share- Our-Wealth program... empower gov t to seize $$ from rich through taxes & provide guaranteed minimum income to every American family 18 Bank Holiday of 1933 Shortly before the First New Deal legislation was passed... FDR called for a Bank Holiday Designed to stop massive bank withdrawals & stock market fall Lasted from March 5 to March 13 FDR went on the radio to explain the Bank Holiday & his New Deal Legislation (radio address became known

7 FDR went on the radio to explain the Bank Holiday & his New Deal Legislation (radio address became known as Fireside Chats ) After banks reopened... US citizens redeposited over half the $$$ which was previously withdrawn On March 15th when the Stock Market reopened... Stock Market saw it biggest ever 1 day percentage increase 19 NEW DEAL PROGRAMS 20 Emergency Bank Act, Banking Act of 1933 & FDIC, Home Owners Loan Corporation EBA: Allowed gov t to regulate all banks & allow financially sound banks to reopen... restored confidence in Banking System Banking Act of 1933: Created FDIC & Branch Banking FDIC: Insured each individual bank deposit up to $5,000 in case of bank closure

8 FDIC: Insured each individual bank deposit up to $5,000 in case of bank closure Branch Banking: allowed for creation of gov t controlled neighborhood banks HOLC: Assisted homeowners who could not pay off mortgages... allowed homeowners to refinance mortgages with help of gov t 21 Farm Credit Admin & Farm Security Admin FDR used executive order to create Farm Credit Admin FCA: Created in Provided lowinterest, long term loans to farmers... allowed farmers to pay off mortgages & back taxes, buy back lost farms & purchase seed, fertilizer & equipment Congress passed Farm Security Admin to help migrant farmers, sharecroppers & tenant farmers FSA: Created in Provided low

9 Congress passed Farm Security Admin to help migrant farmers, sharecroppers & tenant farmers FSA: Created in Provided low interest, long term loans to help tenant farmers & sharecroppers buy farm land. Established camps where migrant workers could seek shelter & medical care 22 Federal Emergency Relief Act, Civil Works Admin, Civilian Conservation Corps FERA: Created to distribute $500 million in relief aid to states & local agencies... Half went to direct distribution for families... other Half went to federal gov t contributing $1 for every $3 state & local gov t gave in relief Led to creation of CWA: Hired 4 million Americans to work local gov t jobs (raking leaves, picking up garbage, etc) & gave over $750 million in wages

10 FERA: Created to distribute $500 million in relief aid to states & local agencies... Half went to direct distribution for families... other Half went to federal gov t contributing $1 for every $3 state & local gov t gave in relief Led to creation of CWA: Hired 4 million Americans to work local gov t jobs (raking leaves, picking up garbage, etc) & gave over $750 million in wages CCC: Provided relief for unemployed men between Over 10 years CCC employed over 2.5 million men... army camps... provided maintenance & landscape work in National Parks & Forests... earned $30 a month 23 Agricultural Adjustment Admin & Act of 1938 AAA: Paid farmers to REDUCE their output of corn, cotton, dairy products, hogs, rice, tobacco, white, etc... gov t paid farmers

11 23 Agricultural Adjustment Admin & Act of 1938 AAA: Paid farmers to REDUCE their output of corn, cotton, dairy products, hogs, rice, tobacco, white, etc... gov t paid farmers subsidies from taxes on farming goods... Reduction in products raised sales prices & farmers income... allowed farmers to spend $ and stimulate economy Agricultural Adjustment Act of 1938: Increased gov t regulation on farmers & crop production... kept prices of goods high by cutting crop production... gave payments to farmers who cut crop production & practiced land conservation 24 Tennessee Valley Authority & Rural Electrification Admin Tennessee River Valley included: Tenn, Alabama, Mississippi, Kentucky & parts of Georgia, NC, SC, WVa, Indian, Virginia Area impacted by: Disease, illiteracy,

12 Agricultural Adjustment Act of 1938: Increased gov t regulation on farmers & crop production... kept prices of goods high by cutting crop production... gave payments to farmers who cut crop production & practiced land conservation 24 Tennessee Valley Authority & Rural Electrification Admin Tennessee River Valley included: Tenn, Alabama, Mississippi, Kentucky & parts of Georgia, NC, SC, WVa, Indian, Virginia Area impacted by: Disease, illiteracy, malnutrition, poverty, deforestation & frequent flooding TVA: Created dams, power stations providing electricity, flood control & recreational facilities for area. Other projects combated malaria, illiteracy & poor standard of living REA: Created to provide electricity and heat to impoverished rural areas... also allowed gov t regulation of

13 Area impacted by: Disease, illiteracy, malnutrition, poverty, deforestation & frequent flooding TVA: Created dams, power stations providing electricity, flood control & recreational facilities for area. Other projects combated malaria, illiteracy & poor standard of living REA: Created to provide electricity and heat to impoverished rural areas... also allowed gov t regulation of interstate production, transmission, sale of gas & electricity <-- kept utility costs low for REA programs 25 National Industrial Recovery Act, Public Works Admin & National Recovery Admin NIRA: Created to stimulate industrial and business activity & reduce unemployment by stabilizing prices, raising wages, limiting work hours & providing jobs... created PWA & NRA PWA: Gov t contracted private firms to build

14 NIRA: Created to stimulate industrial and business activity & reduce unemployment by stabilizing prices, raising wages, limiting work hours & providing jobs... created PWA & NRA PWA: Gov t contracted private firms to build roads, public buildings & other public works projects... between 1933 & 1939 WPA spent over $4 BILLION on over 34,000 projects NRA: Created codes of fair competition... businesses agreed to work together to set hours, prices, wages & production levels. Also guaranteed workers right to organize & bargain collectively through representatives of their own choosing." 26 Securities & Exchange Commission FDR believed in the need to reform business practices Wanted to protect investors from stock

15 26 Securities & Exchange Commission FDR believed in the need to reform business practices Wanted to protect investors from stock fraud Supported the Federal Securities Act which created the Securities & Exchange Commission SEC: which regulates companies that sell public stocks and bonds 27 Works Progress Admin & National Youth Admin After CWA ended, FDR created WPA in 1935 WPA: Spent $5 billion to employ roughly 8.5 million workers... built/rebuilt roughly 350 airports; 100,000 public buildings; 78,000 bridges; 500,000 miles of roads... also created research projects & teaching jobs NYA: Was apart of the WPA... helping young people ages provided high school & college aged

16 WPA: Spent $5 billion to employ roughly 8.5 million workers... built/rebuilt roughly 350 airports; 100,000 public buildings; 78,000 bridges; 500,000 miles of roads... also created research projects & teaching jobs NYA: Was apart of the WPA... helping young people ages provided high school & college aged Americans with part time jobs allowing them to stay in school... helped provide 500,000 jobs... created Division of Negro Affairs within the NYA 28 National Labor Relation Act & Fair Labor Standards Act In 1935 US Supreme Court ruled certain parts of NIRA to be unconstitutional NLRA: Passed in Guaranteed labor s right to organize Unions and to bargain collectively for better wages & working

17 NLRA: Passed in Guaranteed labor s right to organize Unions and to bargain collectively for better wages & working conditions FLSA: Passed in Established minimum wage of 40 cents per hour & maximum hours for businesses partaking in interstate commerce 29 Social Security Act Passed in 1935 Act contained 3 major provisions 1) Provided unemployment insurance to workers who lost their jobs Paid for by: payroll tax on businesses 2) Provided pensions to retired workers older than 65 Paid for by: payroll tax on employers & tax on employee wages 3) Provided payments to individuals with disabilities, the elderly & the wives and children of male workers who had died Paid for by: shared federal & state taxes

18 3) Provided payments to individuals with disabilities, the elderly & the wives and children of male workers who had died Paid for by: shared federal & state taxes