APUSH Chapter 24: The Great Depression and the New Deal: FDR's NEW DEAL: when it was, what it was, supporters, opponents

Economic Adviser:

University professors called the Brain Trust

The Second New Deal

First 2 years focused on recovery and second new deal focused on relief and reform

African Americans

Highest unemployment rates, forced off land, excluded from relief programs, and this all increased racial tensions

People appointed to positions:

african americans, catholics, jews, and women (secretary of labor was a women named frances perkins)

Civilian Conservation Corps

employed young men on projects on federal lands and paid their families small monthly sums

Agricultural Adjustment Administration (declared unconstitutional):

encouraged farmers to reduce production and boost prices by offering to pay government subsidized for every acre they plowed under

Tennessee Valley Authority

experiment in regional development and public planning, hired thousands of people in one of the poorest regions to build dams, operate electric power plants, control flooding/erosion, manufacture fertilizer and it sold electricity at low rates

Industrial unions joined together as the Committee of Industrial Organizations

led by John Lewis, rival of the AF of L and concentrated on unskilled workers in the automobile, steel, and southern textile industries

Repeal of Prohibition Beer-Wine Revenue Act:

legalized the sale of beer and wine

WPA and CCC gave

low-paying jobs for African Americans but they were segregated

Moral support from Eleanor Roosevelt and Interior Harold Ickes who allowed

marian anderson to give a special concert after being refused the use of constitutional hall in DC

Causes of recession

-Government policy was partly to blame -New social security tax reduced spending at the same time that roosevelt was curtailing expenditures for relief and public works

Disability

-Paralyzed by polio in 1921 -Labored to resume in career in politics and regained full power of is upper body

Keynesian Economics

-Writing of Keynes taught Roosevelt that he made a mistake in attempting to balance the budget -said that deficit spending was helpful in difficult times because the government needed to spend well above its tax revenues to initiate economic growth

The Social Security Act

1. Created a federal insurance programed based on the automatic collection of payments from employees and employers through people's working careers 2. the social security trust fund would be used to make payments to retired persons over the age of 65 3. Also helped workers who lost their jobs, people who were blind/disabled, dependent children and their mothers

Conservative Critics

1. Giving the federal government too much power and said that labor laws like the wagner act bordered on socialism/communism 2. Business leaders were alarmed by increased regulations, pro union stance, financing of government programs by means of borrowed money (deficit financing)

Weakened new deal

1. No boom and problems remained 2. Reduced democratic majority in congress 3. Coalition of republicans and conservative democrats blocked further new deal reform legislation 4. Fears from nazi germany diverted attention toward foreign affairs

National Labor Relations (Wagner) Act (1935):

1. replaced the NIRA after it was declared unconstitutional 2. guaranteed a workers rights to join a union and a union's right to bargain collectively 3. Outlawed business practices that were unfair to labor and the National Labor Relations Board was empowered to enforce the law and make sure workers rights were protected

Strikes Automobiles

At the General Motors plant in Michigan, workers insisted on their right to join a union by participating in a sit down strike

Opponents of the New deal

Attacked by liberals, conservative, and demagogues

Bank Holiday

Banks were failing and to restore confidence in the banks, the president ordered the banks to be closed for a bank holiday on March 6, 1933 and would reopen after reorganization

Recession: 1937-1938

Banks were stabilizing, business was increasing, unemployments declined 10%

FDR: The Man

Child of wealthy family, he was a democrat, and cousin of theodore roosevelt

Indian Reorganization (Wheeler-Howard) Act (1934):

Collier won roosevelt's support Congress repealed the dawes act which encouraged american indians to be independent farmers and replaced it with the indian reorganization act which returned lands to the control of tribes and supported preservation of Indian cultures

Liberal Critics

Criticized new deal for doing too much for business and too little for the unemployed and the working poor

Demagogues

Critics proposed simplistic schemes for ending evil conspiracies (Father Coughlin), guaranteeing economic security for the elderly (Dr Townsend) and redistributed wealth (Huey Long)

The Election of 1936

Democratic: Roosevelt for his second term- liked by workers and small farmers and disliked by business Republican: Alf Landon, progressive minded, governor of kansas, criticized democrats for spending too much Results: Roosevelt wins

Steel

Demonstration by union picketers at republican steel in chicago ended in 4 deaths as the police fired into the crowd

Mexican Americans

Discrimination in new deal programs forced thousands to return to Mexico Principal source of agricultural labor in the 1920s

Dust Bowl Farmers

Drought ruined crops in the plains and this region became known as a dust bowl Thousands of "Okies" from Oklahoma and surrounding states migrated westward to california in search of farm/factory work that could not be found and their hardships were shared in The Grapes of Wrath by John Steinbeck

New Deal Philosophy

During the campaign, he had vague promises

Fair Labor Standards Act

Established regulations on businesses in interstate commerce 1. A minimum wage (.40 an hour) 2. Maximum standard work work of 40 hours and extra for overtime 3. Child labor restrictions for those under 16

Fair Employment Practices Committee

Executive order in 1941 set up a committee to assist minorities in gaining jobs in defense industries after philip randolph threatened to march on washington and demand equal job opportunities for african americans

Franklin D. Roosevelt's New Deal

Expanded the size of the federal government, altered its scope of operations, and greatly enlarged presidential powers

Aftermath

In 1937, the supreme court upheld the constitutionality of several new deal laws, like the wagner act, the social security act, and justices retired which allowed roosevelt to appoint new justices who were more sympathetic to his reforms

American Indians AND JOHN COLLIER

John Collier was appointed commissions of the BIA and established CCC projects on reservations and gained american indians involvement in new deal programs

The Supreme Court

Killed both the NRA for business recovery and the AAA for agricultural recovery by declaring them unconstitutional

Last Phase of the New Deal

Lost momentum in the late 30s

Political Adviser:

Louis Howe

Fireside Chats

March 12, 1933: president assurened his listeners that the banks which reopened after the bank holiday were safe Deposits now surpassed withdrawals

100 african americans were appointed to middle level positions like

Mary Bethune who helped improve education and economic opportunities for women

Women

More women sought work but they were accused of taking jobs from men

Eleanor Roosevelt

Most active first lady, newspaper column, gave speeches, and her and franklin ad a respectful relationship

The Three R's

Relief for the people out of work Recovery for business and the economy as a whole Reform of american economic institutions

Reaction

Seen as an attempt to tamper checks and balances and for the first time a bill he proposed was defeated by congress

Rise of Unions

Two new deal measures- National Industry Recovery Act of 1933 and the Wagner Act caused lasting change in labor management by legalizing labor unions

Civil Works Administration:

added to the PWA to create jobs, hired laborers for government construction projects

Significance:

allowed roosevelt to add 6 justices and called a court packing bill

American Liberty League:

anti New deal organization whose purpose was to stop the new deal from subverting the us economic and political system

Depression mentality:

attitude of insecurity and economic concern that would always remain

Public Works Administration

directed by Harold Ickes, allocated money for building roads, bridges, dams, and other public works. Created construction jobs.

National Recovery Administration (declared unconstitutional)

directed by Hugh Johnson they helped each industry set codes for wages, hours of work, levels of production, and prices of finished goods,

American Federation of Labor:

dominated by skilled whiled male workers, were organized according to crafts, and wanted union memberless to be extended to all workers in an industry

Father Charles E Coughlin

founded the national union for social justice (called for issuing an inflated currency and nationalizing all banks)

Federal Housing Administration:

gave construction industry and homeowners a boost by insuring bank loans for building new houses and repairing old ones

Rural Electrification Administration:

gave loans for electrical cooperative to supply power in rural areas

Emergency Banking Relief Act:

government could examine the finances of banks closed during the bank holiday and reopen those judged to be sound

Federal Emergency Relief Administration

grants of federal money to governments that were operating soup kitchens for jobless and homeless. Director of the FERA was Harry Hopkins.

Federal Deposit Insurance Corporation:

guaranteed individual bank deposits, gold standard was restricted to international transactions, americans could not exchange dollars for gold

Glass-Steagall Act:

increased regulation of the banks/limited ow banks could invest customers money

Federal Taxes:

increased the tax of the wealthy, increased the tax on large gifts from parent to child and on capital gains (profits from sale of stocks)

The First 100 Days

passed into law every request of president roosevelt, enacting more major legislation than any single congress in history

Huey Long

prominent national figure by proposing a Share Our Wealth program that promised a minimum annual program of $5000 for every american family, ran for president but was assassinated

Dr. Francis E Townsend

proposed that a 2% federal sales tax be used to create a special fund where every retired person over 60 would receive 200 a month and by spending their money. recipients would stimulate the economy and bring the depression to an end

Effect

proposed that the president would be authorized to appoint to the supreme court an additional justice for each current justice who was older than 70.5

Farm Credit Administration:

provided low interest farm loans and mortgages to prevent foreclosures on the property of indebted farmers

National Youth Administration:

provided part time jobs to help young people stay in high school/college or until they could get another job

Home Owners Loan Corporation:

refinancing of small homes to prevent foreclosures

Securities and Exchange Commission:

regulate the stock market, place limits on speculative practices that led to the wall street crash and required audits/financial disclosure by corporations to protect investors from fraud and insider trade

21st amendment:

repealed the 18th amendment- no more prohibition

Cause

roosevelt wanted to remove the court as an obstacle to the new deal

Soil Conservation Service of 1935:

teach and subsidize the plains farmers to rotate crops, terrace fields, contour plowing, and plant trees to stop soil erosion and conserve water

New law took

the US off gold standard to halt deflation

Works Progress Administration (WPA):

under Harry Hopkins employed 3.4 million men and women who were on relief roles as constructors for bridges, roads, airports, and public buildings and unemployed creators were hired

Resettlement Administration (RA):

under Rexford Tugwell, someone from the Brain trust Provided loans to sharecroppers, tenants, and small farmers and established federal camps where migrant workers could find housing

Greatest strengths:

warm personality, gifts as a speaker, ability to inspire people, governor of NY, instituted a number of welfare/relief programs