Term: 1933-1945, the only president to serve more than 2 terms
THE NEW DEAL
The three R’s (relief, recovery, reform). In FDR's acceptance speech, he promised relief for the people out of work, Recoveryfor the business economy, and Reform for the American economic institutions.
Roosevelt relied on his Brain Trust, a group of university professors, to help him create the New Deal
The First Hundred Days: FDR eneacted numerous laws and agencies (more than any president)
Bank Holiday- March 6, 1933, FDR declared a bank holiday and all banks were closed so that the government could reorganize them.
Fireside Chats with FDR kept Americans hopeful and informed
New Deal “Alphabet” Agencies:
Federal Deposit Insurance Corp. (FDIC)- guaranteed individual bank deposits up to $5,000, reassured those who put their money in banks that they will get at least some of their money back should they ask
Home Loaners Corp. (HOLC)- provided refinancing of small homes to prevent foreclosures
Farm Credit Admin.- provided low-interest farm loans and mortgages to prevent foreclosures on the property of indebted farmers
Federal Emergency Relief Admin. (FERA)- provided grants of federal money to states and local govts. that operated relief programs for the jobless and homeless
Social Security Act- created a federal insurance program based on the collection of taxes from employees and employers throughout people's careers the money would then be put into a trust fund that would make monthly payments to retired persons over 65 yrs. old. Unemployed , disabled also recieved benefits
Opposition to New Deal
Socialists, extreme liberals saw new deal as doing too much for business and not enough for unemployed, also believed that FDR failed to fix problems surrounding ethnic minorities, women, elderly
Conservatives felt that the New Deal gave too much power to govt.
Father Charles E. Coughlin- Catholic priest over the radio wanted inflated currency and nationalizeing of banks
Dr. Francis E. Townsend- proposed a plan for guaranteeing a secure income
Mainly conservative supreme court led FDR to attmept to reorganize the court
Proposed a Court-Packing Bill- president should be authorized to appoint to the Supreme Court an additional justice for each curret justice who was older than 70.5 yrs. old...REJECTED
Republicans and Democrats outraged, but several justices retired and Roosevelt was able to appoint more democratic justices
Many companies resisted union demands => strikes
General Moters Contoversy- workers insisted ontheir right to join a union by participating in a sit down strike => creation of United Auto Workers union, many union organizers were beaten and driven away
Fair Labor Standards Act- minimum wage, a maximum workweek and child-labor restrictions were declared
Weakened New Deal
Recession from 1937-1938,
Social Security tax took away from consumer spending
Keynesian economics told FDR that he was wrong in attempting to balance the budget, Deficit spending was needed to inititate economic growth
Did the New Deal Work?
The programs entailed by the first and second New Deal helped to create a significant number of jobs and to restart the economy. Arguably, the New Deal did little to satiate the economic turmoil of the Great Depression. However, with the great increases in productivity associated with the Second World War the American nation was able to make a complete turnaround to officially restart their economy.
The New Deal did result in the creation of many works and programs that directly benefited the American people. Works and programs initiated by the New Deal improved transportation, leisure and its accessibility, safety, and ownership opportunities. Possibly the most notable, the New Deal greatly improved morale. When Americans gained money to spend they regained their independence and their pride. The growth of the modern Welfare State represented a permanent restructuring of the Federal Government’s role in the economy.
Minorities and Women During the Depression
African-Americans faced difficulties finding jobs, due to discrimination
Eleanor Roosevelt and the New Deal assisted African-Americans in finding job