FDR Offer Relief and Recovery

What was the goal of the New Deal?

To bring the country out of Depression

Helping Farmers

A number of New Deal programs aimed at easing the desperate plight of American farmers. For years, the supply of crops grown by American farmers had far exceeded demand. Prices dropped to the point where it was no longer profitable to grow some crops. To counter this, Congress passed the Agricultural Adjustment Act (AAA), which sought to end overproduction and raise crop prices. To accomplish these goals, the AAA provided financial aid, paying farmers subsidies not to plant part of their land and to kill off excess livestock. Many Americans believed it was immoral to kill livestock or destroy crops while people went hungry. Howeveer, by 1934, farm prices began to rise.

Reforming the Financial System/Federal Deposit Insurance Corporation (FDIC)

A number of Roosevelt's proposals sought to reform the nation's financial institutions. One act created the Federal Deposit Insurance Corporation (FDIC), which insured bank deposits up to $5,000. In the following year, Congress established the Securities and Exchange Commission (SEC) to regulate the stock market and make it a safer place for investments.

Roosevelt's Inauguration

Americans had to wait for long months between Roosevelt's election, in November 1932, and his inauguration, in March 1933. Meanwhile, they watched helplessly as thousands of banks collapsed and unemployment soared. What wouuld Roosevelt do to combat the depression? Even the experts did not know what to expect.

Tennessee Valley Authority

Americans living in the Tennessee River valley were among the poorest in the nation. Few had electricity, running water, or proper sewage systems. In 1933, Congress responded by creating a government agency called the Tennessee Valley Authority (TVA). The TVA built a series of dams in the Tennessee River valley to control floods and to generate electric power. The agency also replanted forests, built fertilizer plants, created jobs, and attracted industry with the promise of cheap power.

Public Works Administration

Another New Deal legislative achievement was the Public Works Administration (PWA), which built bridges, dams, power plants, and government buildings. The PWA was responsible for building many important projects still in use today, such as NYC's Triborough Bridge, the Overseas Highway linking Miami and Key West, and the Bonneville Dam on the Columbia River in the Pacific Northwest. These public-works projects improved the nation's infrastructure and created millions of new jobs for workers.

Huey Long

Canadian by birth, Coughlin could not run against FDR in the 1936 election. However, he threatened to throw his support behind an even more popular New Deal critic, Senator Huey Long of Louisiana. Long was an expert performer whose folksy speeches delighted adueicnes. Long's solution to the depression was his "Share Our Wealth" program that proposed high taxes on the wealthy and large corporations, and the redistribution of their income to poor Americans.

Providing Relief and Promoting Industrial Recovery

Congress passed a number of other relief acts. The Federal Emergency Relief Act (FERA) granted federal funds to state and local agencies to help the unemployed. The short-lived Civil Works Administration (CWA) provideed jobs on public-works projects. On another front, Congress created the Home Owners Loan Corporation (HOLC), which loaned money at low interset rates to homeowners who could not meet mortgage payments. The Federal Housing Administration (FHA) insured bank loans used for building and repairing homes.

TVA's Critics

Despite its accomplishments, the TVA attracted a host of critics. Some called the TVA "socialist," because it gave government direct control of a bsuiness. Private power companies complained that they could not compete with the TVA, because the agency paid no taxes. However, the TVA's successes in improving life in the Tennessee Valley have ensured its survival to the present.

Civilian Conservation Corps

During his first hundred days as President, Roosevelt proposed and Congress enacted numerous other relief measures. To counter the depression's devastating impact on young men, FDR created the Civilian Conservation Corps (CCC). The CCC provided jobs for more than 2 million young men. They replanted forests, built trails, dug irrigation ditches, and fought fires. As time went on, programs such as the CCC became more inclusive, extending work and training to Mexican American and other minority youth, as well as to whites. FDR called the CCC his favorite New Deal program.

The First Hundred Days Provide Instant Action

During his first hundred days in office, Rosoevelt proposed and Congres passed 15 bills. These measures, known as the First New Deal, had three goals: relief, recovery, and reform. Roosevelt wanted to provide relief from the immediate hardships of the depression and achieve a long-term economic recovery. He also instituted reforms to prevent future depressions.

Fireside Chats

Eight days after becoming President, Roosevelt delivered an informal radio speech to the American people. This was the first of many presidential fireside chats. They became an important way for Roosevelt to communicate with the American people In the first fireside chat, FDR explained the measures he had taken to stem the run on banks. His calming words reassured the American people. When the bank holiday ended, Americans did not rush to their banks to withdraw their funds. Roosevelt had convinced them that the banks were a safe place to keep their money.

Father Charles Coughlin

Father Charles Coughlin presented an even bigger challenge to FDR. Coughlin, a Roman Catholic priest, had attracted millions of listeners to his weekly radio show. At first, Coughlin supported the New Deal, but in time he broke with FDR, accusing him of not doing enough to fight the depression Coughlin said that Roosevelt had "out-Hoovered Hoover" and called the New Deal "the raw deal." Coughlin mixed calls for the nationalization of industry with anti-Semitic remarks and attacks on "communists" who, he charged, were running the country. By the early 1940s, Coughlin's views became so extreme that Roman Catholic officials forced him to end his broadcasts.

What was one downside of the New Deal?

Government spending increased dramatically.

What actions did President Roosevelt take in response to the Great Depression?

He created a bank holiday to restore public faith in banks; he ended prohibition so that the government could tax the sale of alcohol and raise more money; he set up government agencies to help with relief efforts.

Eleanor Roosevelt

In 1905, Franklin married his distant cousin Eleanor Roosevelt. President Theordore Roosevelt, Eleanor's uncle and Franklin's fifth cousin gave the bride away. In time, Eleanor would become deeply involved in public affairs.

Roosevelt Takes Charge

In 1928, Herbert Hoover had almost no chance of losing his bid for the presidency. In 1932 however, Hoover had almost no chance of winning reelection. The depression had taken its toll. About 25 percent of the population was unemployed. Bank failures had wiped out peoples' savings. The hungry waited on long lines at soup kitchens. Americans were ready for a change. In July of 1932, the relatively unknown governor of New York, Franklin D. Roosevelt, accepted the Democratic Party's nomination for President.

American Liberty League and Critics

In 1934, these critics formed the American Liberty League. Supporters included prominent business leaders, such as Alfred Sloan and Willian Knudsen of General Motors. Leading Democrats, such as John W. Davis, the Democrat's presidential nominee in 1924, and Al Smith, the nominee in 1928, joined the Liberty League because they felt Roosevelt had deserted the Dmocratic Party's principles of a limited federal government.

How did the New Deal help the poor?

It created programs that offered hot lunches, daycare, and food stamps.

What was the WPA?

It was a New Deal program that put unemployed people to work on federal projects such as constructing public buildings (schools and post offices), bridges, and roads.

Franklin Roosevelt

Like Teddy Roosevelt, Franklin rose quickly through the political ranks. After election to the New York State Senate, he served as Woodrow Wilson's Assistant Secretary of the Navy. In 1920, Roosevelt was the Democratic Party's vice presidential nominee. Although the Democrats lost the election, many considered him the rising star of the party.

Roosevelt's Views on Long

Roosevelt viewed Long as a serious political threat. But unlike Roosevelt, Long did not have a deep faith in democracy. Ruling Louisiana as if he owned the state, he made many enemies. In 1935, a political enemy assassinated Long, ending the most serious threat to Roosevelt's presidency.

FDR Swiftly Restores the Nation's Confidence

Roosevelt wasted no time dealing with the nation's number one crisis. Late in 1932, banks had begun to fail in great numbers. A banking panic gripped the nation as frightened depositors lined up outside banks, trying to withdraw their savings. The day after his inauguration, Roosevelt called Congress into a special session and convinced them to pass laws to shore up the natioin's banking system. The Emergency Banking Bill gave the President broad powers--including the power to declare a four-day bank "holiday." Banks all over the country were ordered to close. The closings gave banks time to get their accounts in order before they reopened for business.

Roosevelt Overcame Obstacles

Strangely enough, Americans had chosen a presidential candidate who had never known economic hardship. As a child, Franklin Delano Roosevelt had enjoyed all the priviliges of an upper-class upbringing, including eduation at elite schools and colleges. From his parents and teacher, FDR gained a great deal of self-confidence and a belief that public service was a noble calling.

Roosevelt Vs. Hoover Campaign

The 1932 election campaign pitted Roosevelt against President Herbert Hoover. The two men advocated very different approaches to the problems of the Great Depression. Hoover believed that depression relief should come from state and lcoal governments and private agencies. Roosevelt believed that the depression required strong action and leadership by the federal government. As Hoover noted, "This campaign is more than a contest between two men...It is a contest between two philosophies of government." Hoover's popularity declined as the Great Depression worsened. Even longtime Republicans deserted him. FDR--with the support of those who embraced his ideas as well as those who opposed Hoover's approach--won a landslide presidential victory, defeating Hoover by more than 7 million votes.

The New Deal's Significance

The New Deal had great significance because America's response to the Great depression proved that a democratic society could overcome the challenges presented by the severe economic crisis.

National Recovery Administration

The centerpiece of the early New Deal's recovery program was the National Industrial Recovery Act, which established the National Recovery Administration (NRA). Roosevelt called the NIRA "the most important and far-reaching legislation ever enacted by the American Congress." Working with business and labor leaders, the NRA developed code of fair competition to govern whole industries. These codes established minimum wages for workers and minimum prices for the goods that businesses sold. The idea behind these codes was to increase the wages of workers so they could buy more goods and raise prices so companies could make a profit.

The Right Says "Too Much"

The chief complaint against the New Deal was that it made the government too powerful. Critics contended that the government was telling business how to operate, spending large sums of money, and piling up a huge national debt. To many conservatives, the New Deal was destroying free enterprise and undermining individualism. In a 1934 book entitled The Challenge to Liberty, former President Herbert Hoover described the New Deal as "the most stupendous invasion for the spirit of liberty" in the nation's history. Robert Taft, the son of former President William Howard Taft and a leading Republican in Congress, claimed Roosevelt's programs threatened individual freedom.

Populist Critics Challenge FDR

The most significant criticsm of FDR came from a cluster of figures whose roots were in the Populist movement. They saw themselves as spokesmen for poor Americans, challenging the power of the elite. Roosevelt's strongest critics were Francis Townsend, Father Charles Coughlin, and Huey Long.

Providing Relief and Promoting Industrial Recovery Part 2

These New Deal measures marked a clear break from the policies of the Hoover administration, which had disapproved of direct relief to individuals. The $500 million appropriated for FERA represented the largest peacetime expenditure by the federal government to that time.

Effects of Financial Reforms

These financial reforms helped restore confidence in the economy. Runs on banks ended, largely because Americans now had confidence that they would not lose their lifetime savings if a bank failed. The stock markets also stabilized as regulated trading practices reassured investors.

FDR and Eleanor

Throughout his presidency, FDR depended heavily on his wife, Eleanor. She traveled widely, interacting with the American people and serving as FDR's "eyes and ears." For example, in 1933, the Bonus Army, which had marched on Washington, D.C., in 1932, returned to the capital, seeking an early payment of its bonus for World War I service. Like Hoover, FDR informed the marchers that the government could not afford to pay them their bonus. But unlike Hoover, who had sent the army to evict the Bonus Army, FDR sent Eleanor. She sang songs with the veterans and made them feel that the government cared.

Putting Together a Winning Team

To help him plan the New Deal, FDR sought the advice of a diverse group of men and women. Among the most influential was a group of professionals and academics whom the press nicknamed the "Brain Trust." Roosevelt, a Democrat, displayed his openness by nominating two Republicans, Henry Wallace and Harold Ickes, to serve as his Secretary of Agriculture and Secretary of Interior. Roosevelt also nominated Frances Perkins, a social worker, to serve as his Secretary of Labor. She became the first woman Cabinet member in U.S. history.

Francis Townsend

Townsend, a doctor from Califronia, had a simple program. It called for the federal government to provide $200 a month to all citizens over the age of 60. These funds, he argued, would filter out to the rest of society and produce an economic recovery. To promote this plan, he established "Townsend Clubs" and held meetings that resembled old-time church revivals.

Voters Elect a New President

When FDR pledged a "New Deal," he had only a vague idea of how he intended to combat the depression. Convinced that the federal government needed to play an active role in promoting recory and providing relief to Americans, he experimented with different approaches to see which one worked best.

Opposition to the New Deal Emerges

While Roosevelt had little difficulty gaining support from Congress for his proposals, a minority of Americans expressed their opposition to the New Deal. Some thought the changes it brought were too radical. Others thought that the New Deal was not radical enough. Several of FDR's critics attracted mass followings and made plans to challenge him for the presidency in 1935.

The Left Says "Not Enough"

While conservatives accused FDR of supporting socialism, some leading socialists charged that the New Deal did not do enough to end the depression. Norman Thomas, the Socialist Party's presidential candidate, claimed that FDR's only concern was saving the banking system and ensuring profits for big business. The American Communist Party described the New Deal as a "capitalist ruse."

Polio

While vacationing, FDR slipped off his boat into the chilly waters of the North Atlantic. That evening, he awoke with a high fever and severe pains in his back and legs. Two weeks later, Roosevelt was diagnosed with polio, a dreaded disease that at the time had no treatment. He never fully recovered the use of his legs. FDR did not allow his physical disability to break his spirit. With Eleanor's encouragement, Roosevelt made a political comeback. In 1928, he was elected governor of New York and earned a reputation as a reformer. In 1932, he became the Democrat's presidential candidate, pledgin "a new deal for the American people."