The Election of ‘32 -FDR and the 1st New Deal Relief, Recovery and Reform
Election Of 1932 • FDR (D) vs. Hoover (R)
Essential Questions: • What did FDR mean when he offered a “New Deal’? • Why was the election of 1932 a turning point in American politics?
FDR Facts • Born in 1882 • Went to Harvard • Lawyer • NY State Senate • Assistant Sec. of the Navy during WWI
FDR Facts II • Married Eleanor Roosevelt • Ran for VP in 1920 • Contracted polio in 1921 • Governor of NY 1929-1932 • Willing to experiment with government roles
Eleanor Roosevelt • Niece of TR • Married FDR in 1905, 6 children • Social Worker • Fought for public housing, gov. reform, birth control, and better conditions for women
Election of 1932 *Hoover -Minimal Gov. Action -Strict view of Gov. -Less Gov. the better
Election of 1932 • FDR -Willing to experiment with the role of Gov. -Supported broadening the role of Gov.
FDR • “Can do” attitude • Confident and Friendly • Compassionate • Inaugural Address 1933 • “ …the only thing we have to fear is fear itself.”
Advisors to FDR • “The Brain Trust” • Raymond Moley (Columbia) • Rexford Tugwell (Columbia) • Felix Frankfurter (Harvard)
FDR’s Cabinet • Sec. of the Interior – Harold L. Ickes • Sec. of Agriculture – Henry A. Wallace • Sec. of the Treasury – Henry Morgenthau • Sec. of Labor- F. Perkins
Essential Questions: • What initial steps did FDR take to reform banking and finance? • What were some New Deal Programs? • Who were the critics of FDR’s New Deal?
The Hundred Days • 3/9/33 to 6/16/33 • Congress passed more than 15 pieces of legislation • Significantly expanded the role of the Federal Gov. in the economy.
Banking Reform • March 5th all banks closed by FDR • Emergency Banking Act – Healthy banks to reopen, management of failed banks. • Increased Gov. regulatory power over money and banking
Banking Reform Part II • First “Fireside Chat” March 1933 • Glass-Steagall Act 1933- Established the FDIC • Federal Securities Act 1933- Established the SEC to regulate the stock market
Prohibition Repealed • FDR pushed Congress to allow the sale and manufacture of beer and wine. • Effort to raise gov. revenues through taxes • 21st Amend. (End of 1933)
Rural Assistance • The Agricultural Adjustment Act (AAA)- Gov. paid farmers to limit production. • $200 million to plow under 10 million acres. • 6 million pigs slaughtered. • $ for farmers and prices raised farm prices
Work Projects CCC – Civilian Conservation Corp – “Tree Army” Employed 3 million men Paid $25 - $30 a month Men lived in work camps Planted 200 million trees, 800 state parks, and 46,000 bridges
More Work Projects * Provided money to states to create jobs in construction of schools and community buildings. Created the (PWA) Part of (FERA)
Work Projects III • Civilian Works Administration (CWA) established in Nov. 1933 • 4 million jobs • Built 40,000 schools • 500,000 miles of road
Tennessee Valley Authority (TVA) • 1933 – Federal Agency to construct dams and power plants along the TN river. *Electricity, Flood Control, Recreation
Recovery in Business • NIRA wanted to promote industrial growth • NIRA established codes of fair practice for employers, employees, and consumers. • Nat. Recovery Adm. (NRA)
National Recovery Administration (NIRA) • Set Prices and established standards • Codes limited production • Workers could unionize and bargain collectively
NIRA/NRA Unconstitutional!! • In 1935 the Supreme Court ruled the NIRA Unconstitutional • They claimed it gave the Pres. too much power • Fed. Gov. was involved in state commerce
Recovery In Housing • Home Owners Loan Corporation (HOLC)- Provided gov. loans to those facing forclosure. • National Housing Act 1934 – created the Federal Housing Administration to give loans for mortgages and repairs.
Providing Relief • Federal Emergency Relief Adm. (FERA) was funded with $500 million for direct relief. • Half given to the states for food and clothing
Providing Relief II- FERA • Helped unemployed, aging, and the ill. • $ was given to states to support work relief programs. (CWA/PWA)
Deficit Spending • More $ was spent on the New Deal than the gov. received in revenue • National Debt increased, no balanced budgets • FDR – “necessary evil” during crisis
John Maynard Keynes • British economist • Gov. should spend to provide $ for consumers • Deficit Spending is necessary to stimulate the economy. • “Priming the Pump”
Liberal Critics • Criticism of The New Deal from the political left • Socialist and Communist • The New Deal did not go far enough to help the poor and reform the econ. system
Conservative Critics • Too much time on direct relief • FDR socialized the economy…big gov. • AAA + NIRA gave gov. too much control • interfered with free-market