US 14: Franklin Roosevelt and the New Deals Flashcards
• Key points about who FD Roosevelt was:
○ Wealthy NY background
○ Cousin of Theodore Roosevelt
○ Disabled from 1921, couldn’t walk
○ Won at the expense of his mentor Al Smith in 1932
○ Led America through the Great Depression and WW2 1936-1944
Died in 1945
• Victory of Franklin Roosevelt in 1932
○ Marked as turning point or New Deal Order
○ Charismatic leader who helped people emerge from pessimism and fear (opinion of admirers)
○ VP for Cox in 1920 but lost
○ People in his own party were suspicious and would’ve preferred Al Smith
○ Known for being vague and implicit - did not want to alarm business and didn’t know what he was going to do
○ Won because Republicans looked hopelessly weak thanks to Hoover, won strong victories in HoR and Senate
○ Inaugurated in 1932 but didn’t act for 4 months…
Why didn’t FDR act for his first 4 months and what happened during this time?
power vacuum, Hoover couldn't deal with the Depression, Roosevelt didn't want to do anything before he was in charge on his own -> Hoover met Roosevelt to discuss joint action but didn't go well as he bombarded him with policy suggestions he didn't agree with (Roosevelt didn't want to be seen agreeing with Hoover) Walter Lippman (political advisor) suggested that Roosevelt take dictatorial powers to help country -> 1933 banking crisis worsened, farm crisis deepened and unemployment rose higher
What were features of FDR’s presidential campaign (1932)?
○ Government intervention was needed
○ America needed to abandon the gold standard
○ Business needed to be regulated and reformed, no socialism
People needed hope, song Happy Days are Here Again was used as part
What were policies of the First New Deal and how did the public react?
○ The New Deal saved the nation from the great depression but was met with intense opposition (in the middle, so received criticism from either extreme)
○ The Supreme Court also thought some of his policies were unconstitutional i.e. The Hundred Days - first speech he announced new interventionist policies (15 new laws)
○ Hundred Days - he waited to make psychological impact and convinced people they’d be saved within 100 days
Aim was to rescue the economy from collapse and paralysis (intensely political-economic)
Effects of the ‘Hundred Days’
○ Emergency Banking Act - enforced a banking holiday to last four days, federal reserve given power to issue currency and supervise reopening of banks
○ He convinced people with first ‘fireside’ chat that their money would be safe, so people started to deposit money again
Despite advice from orthodox economists, he didn’t follow this as his intention was to make a political impact - convey that he was different from everyone before
The First New Deal: aim ‘relief and recovery’
• Agricultural Adjustment Administration (1933) - gave farmers federal subsidies to compensate for cutting back overproduction of basic commodities.
• Civilian Conservation Corps (1933) provided work for young men working on conservation projects, such as planting trees
• Tennessee Valley Authority (1934) - coordinated schemes for conservation and regeneration in Southern and Western states.
This was one of the most ambitious schemes, covered seven states and built dams for hydroelectric power, flood control and irrigation
Public works administration (1933), provided more than $3bn for work-creation projects
The First New Deal: aim ‘reform and regulation’
(solve systematic problems) -
• National Recovery Agency (1933) brought government, industry and labour unions together to promote fair practice, stopping price-cutting, wage cuts and job losses
• Emergency Railroad Transportation Act (1934) regulated railroad companies
Securities and Exchange Commission (1934) extended the banking act to set up federal regulation of trading in stocks and shares, and strengthen federal reserve in Washington. Now illegal to buy stocks on credit.
What was the key chronology of ‘The New Deals’?
○ 1933 March: Start of the ‘Hundred Days’
○ 1933-34 May: First New Deal
○ 1935 May: Start of Second New Deal
○ 1936 Nov: Roosevelt re-elected for 2nd term
○ 1937 March: Deadlock with Roosevelt and Supreme Court
○ 1938: End of New Deal legislation
○ 1940 Nov: Roosevelt re-elected for 3rd term
1941 Dec: Entry into WW2
• Successes of the First New Deal:
○ Took US off the gold standard, stabilised financial markets and went against orthodox values
○ Public work schemes provided employment e.g. Civil Works Administration (CWA) helped 4 million workers
○ Psychological achievement in changing national mood
Failures of the First New Deal
○ Agricultural Adjusment Administration never achieved what government hoped for: overproduction of wheat was cut, due to drought and federal policies
○ AAA worsened rural poverty and suffered more because AAA reduced land used for cotton
○ Little direct action to help African Americans, didn’t want to antagonise Southern politicians and business leaders
○ End of 1934, still 22 million unemployed
○ New Deal lead to disillusionment as agriculture crisis worsened
Vocal opposition from Huey Long and Father Coughlin
What was the Second New Deal
○ Roosevelt tried to fight adverse decisions e.g. NRA (National Recovery Agency) was made unconstitutional by Supreme Court -> wanted to put through more radical policies
○ Examples: taxed rich; expanded relief schemes through Works Progress Administration; brought in federal social security benefits; reformed labour relations with Wagner Act
Wagner Act: passed in July 1935, gave employees the right to join a union, collective bargaining and right to strike. With National Labour Relations Board
○ 2nd New Deal taken further 1937-38 by laws that helped farmers, poorer people and housing, minimum wage and 40 hour week .
○ Labour rights and industrial relations were improved by government intervention, TU membership doubled within 5 years.
Agencies of Second New Deal
- FLSA Fair Labour Standards Act (1938) - set minimum wage and 40 hour week
- REA Rural Electrification Administration (1935) - helped youth with education and training
- WPA Work Progress Administration (1935) - major public work scheme to provide jobs and relief
Conflict of ideas over the roles of the federal government: populist opposition
- ‘End Poverty in California’ (EPIC) movement, formed by novelist Upton Sinclair
- ‘Old Age Revolving Pensions Scheme’ promoted by Dr Francis Townsend
- Sunday Night Radio show hosted by ‘radio priest’ Father Charles Edward Coughlin (with 30 million listeners)
1934 Share Our Wealth Movement promised to tax the rich harder and redistribute wealth to each household - 5 million members
Conflict of ideas over the role of the govermment: obstruction from the supreme court
- Some conservative democrats thought he was ‘Sovietising America’ and parts of big business denounced the Deal
- May 1935, struck down ‘Farm Mortgage Act’ which setback Roosevelt and led to long struggle between presidency and judiciary
- Roosevelt won 1936 election, Republican candidate Alf Landon only won 2 states, victory emboldened him to attack the Supreme Court -> new laws (‘Court Packing’ bill)
COURT BACKING BILL - thought of as the biggest blunder in his career, unnecessary
