1930s

1. 1930s The Great Depression The New Deal Moving toward WWII

2. FDR (like TR) Born wealthy in NY Harvard Grad NY Legislature (senate) NY Gov Nominated VP Assist Sec Navy Unlike TR Suave conciliatory TR: pugnacious, denunciatory Election 1932

3. FDR’s background • Until 1921, 6’2”; strong , athletic, handsome, charming, witty • Sometimes superficial, arrogant; a lightweight • Polio • Fought back to partial mobility • Learned patience • Tolerance, compassion, strength of will • NY Gov, during early Depression • “$ rather than humanity is expendable” • Spent big sums to relieve human suffering • Expressed concern for the ‘Forgotten man’ • Rich said he was a traitor to his class

4. Eleanor Roosevelt • TR’s niece (gave bride away) • Orphaned age 10… to England, raised by maternal Gmother • Returned to NY, renewed friendship w/ FDR • Engaged, married • Invaluable asset w/ health, career • Champion of dispossessed • Conscience of New Deal • Traveled w/ 4 him • Speeches in all campaigns • Syndicated newspaper column: “My Day” • Loved by liberals, condemned by conservatives • Anti-segregation (Marian Anderson @ Lincoln Memorial)

5. FDR’s New Deal for the forgotten man • Vague, somewhat contradictory • Speeches ghostwritten by Brain Trust • Reform minded intellectuals • Youngish college profs • Kitchen cabinet- wrote much of ND • Promised balanced budget + berated H Hooverian debts: throw the spenders out! • Theme Song: Happy Days are Here Again • Fit optimism, promise of action, risks of bold experimentation

6. Hoover • Grim, stays at WH • Worked long hours • Supporters said: half heartedly • “Worst is past”, “It might have been worse”, “prosperity is right around the corner” • Believed that uncertainty & fear produced by FDR’s impeding victory put nation deeper into depression • Predicted: if Hawley-Smoot Tariff repealed, grass will grow in the streets of a hundred cities • Reaffirmed faith in American Free Enterprise

7. 1932 vote • Heavy shift of black vote to Democrats • Last hired = first fired; worst sufferers of depression • Electoral upheaval as much anti-Hoover as pro- Roosevelt • 60% voted Dem; many Socialists deserted Norman Thomas to vote FDR • Both houses get large Dem majority • Hoover= Lame Duck from Nov – Mar 4 33 • Long period of inaction • 20th amendment: New inaug date: Jan 20

8. Winter 32 • Worst days of the depression • 25% unemployment • Banks closed • Hoover offers to work with FDR; declined- no desire to tie to Repub ideas • Hoover accused FDR of letting the depression worsen

9. New Deal philosophy • 3Rs: Relief, recovery, reform • Brain trust etc • Econ advisors: U profs, Rexford Tugwell, Raymond Moley, Adolph A. Berle, Jr • Appointments most diverse ever • African Americans, Catholics, Jews, Women • Frances Perkins Sec Labor 1st woman in cabinet

10. 1st 100 days • Pres called congress into long session • Congress passed every law FDR requested • More legislation than any single congress before • Alphabet soup

11. Bank Holiday • Over 5k banks failed in 1933 alone • Order: all banks closed Mar 6, 1933 to be reopened when they can est solvency

12. Prohibition • Repealed • Beer & Wine revenue act passed • Assured public banks which reopened after the bank holiday are safe • Public response = deposits increase

13. Financial Recovery programs • Emergency Banking Relief Act • Let gov examine finances of banks; reopen those that are sound • FDIC: guarantees deposits up to 5k • HOLC: re re-finance small homes to prevent foreclosures • Farm Credit Admin- low interest farm loans & mortgages to prevent foreclosures

14. Programs for relief of unemployed • FERA: grants of fed. $$ to states, local govs • Operation of soup kitchens, jobless relief programs • Dir. Harry Hopkins – close friend/ advisor of FDR • PWA under sec interior: Harold Ickes $ to state and local govs for building roads, bridges, dams, etc • Source of thousands of jobs • CCC- employed young men 18-24; projects • Pd families sm monthly sums, cleared forests, swamps

15. TVA • Huge expir in regional development and planning • Hired thousands in poorest region- built dams, op’d power plants, controlled floods, erosion, manufactured fertilizers • Sold electricity to residents at low low rates

16. Industrial Recovery Program • Set up NRA- to combine short term relief and long term recovery • Under Hugh Johnson • 2 guarantee reasonable profits for business • Fair wages/ hours for labor • Suspended anti-trust laws; set codes for wages, hours, levels of production, prices of goods • Gave workers right to organize, collectively bargain • Ltd success for 2 yrs till Sup Ct declared unconst: Schecter v US 1935

17. Other programs of first new deal; after first 100 days • CWA: created jobs, hired for temp construction projects; pd for by fed gov • SEC: to regulate stock market and limit speculative practices; ie: margin buying • FHA: helped const & homeowners; insured bank loans for building, repairing homes • Law took us off Gold Standard to halt deflation • Value of $ - 1 oz gold= $35 US • Paper currency no longer redeemable in gold • 1946: Bretton Woods Agreements: back to gold standard exchange • 1971 Nixon Shock: US removed from Gold Standard

18. 2nd New Deal • Summer 1935 • WPA: huge: spent billions to provide jobs: 1935-40 • Employed 3.4 mill; took off relief rolls of local, state govs • Pd two times relief rate; less than going wage • Built bridges, roads, airports, public bldgs • Hired artists, writers, actors: paint murals, write histories, perform plays • NYA: pt time jobs to help youth stay in school, college • RA: $$ loaned to sharecroppers, tenant famers, small farmers • Est’d fed camps: migrant farmer’s housing • Show FDR’s belief: indust workers and farmers need aid more than business owners, priviledged classes

19. NLRA • Wagner Act 1935: Major Labor Law • Replaced NIRA (struck down ’35) • Guaranteed workers rt to join union • Union rights to bargain collectively • Outlawed practices unfair to labor • Set up NLRB to enforce law and mediate labor disputes

20. REA • Provides loans for elect coops to supply power to rural areas

21. Fed Taxes • Revenue Act 1935 • Raised taxes for rich • Raised taxes on large gifts from parents to children • Profits from sale of stock, etc: raised taxes on Capital gains

22. Social Security Act • 1935: created fed insur program based on auto collection of taxes from employees + employers thru workers’ career • Trust fund: makes mo payments to retired over 65 • Incl benefits to workers fired • Disabled, blind, dependant children & moms

23. Election 1936 • Econ is better; still unstable • Dems nom’d FDR to second term • Pop w farmers, workers; not businesses • Reps nom’d Alf Landon: KS, prog gov • Criticized Dems for spending too much • Accepted most of ND • FDR: 60% • New Dem coalition: Solid South, white ethnic groups of cities, mid-western farmers, labor unions, African Americans– 1930s-60s

24. New Deal Opponents • Liberal: Socialits, lib Dems felt ND did too much for businesses • Too little for unemployed, working poor, ethnic minorities, women, elderly • Conservative: said ND gave Fed Gov too much power • WPA, Wagner Act border on Socialism or even Communism • Increased regulations, pro-union stance, borrowing to finance Gov programs (Deficit financing) • Troublesome • 1934: Conserv Dems joined Repubs  anti ND org: American Liberty League (w/ Davis, Smith) • Goal: stop ND from subverting US econ & polit system

25. Rise of Unions • Change in labor relats of 30s due to • NIRA (33) • Wagner Act (35) • Effect: legalized labor unions • Union membership declined in 20s; up in 30s from less than 3 mill to 10 mill by 1941

26. Tensions & conflicts between rival unions • CIO • AFL unions dom’d by skilled white male workers, org’d by craft • Group of unions w/n AFL wanted to open membership to all w/n industry • All races, sexes, unskilled • 35: unions joined to form CIO (John L. Lewis) • Pres: united mine workers • 36: AFL suspended CIO: renamed Congress broke away from AFL + bcm chief rival focus on: organizing unskilled auto, steel, so. Textile workers

27. Tensions 2 • Strikes: frequent • Auto: Flint, MI, 37: sit down strike at assembly line • GM yields to demands, recognized UAW but union organizers were beaten & driven off • Steel: US steel recognized CIO but smaller steel co’s resist Memorial Day 1937- strike of union picketers at Republic Steel • Chicago- 4 dead; Police fired into crowd • Most steel cos deal w/ CIO by 1941

28. Labor Tensions 3 • Fair Labor Standards Act (38) only/last major reform of second term of ND • Host of regs of business in interstate commerce • Min wage (40cents per hr) • Max work week 40 hrs, time ½ • Child labor restrictions for under 16s • 1941 case: US v. Darby Lumber Co • US Sp Ct upheld child labor law under Fair Labor Standards Act

29. Last phase of ND • Recession 37-38 • 33-37: econ gradually improves, banks stable, business earnings up, unemployment down to 15% • 37 recession hits • Causes: soc. Sec. tax reduced spending • Same time: expenditures are down for relief + public works • Attempt to bal. budget & reduce national debt

30. Last phase 2 • Keynesian Econ: accd’g to Keynes: deficit spending is good in difficult times bcs that’s when the gov should spend more than revenue to spur econ growth • Primes the pump • Increases investments, jobs • Theory adopted in 38: positive results: fed spending on pub wks, relief go up; so did employment + production

31. African Americans • Last hired, 1st fired; unemployment is higher than nat’l av. • Racial discrim continues • Excluded from most state, local relief programs • Drove up racial tensions, esp in S • Lynching continues • Little support for civil rights frm FDR • Fears loss of support from white southern dems

32. Af-Ams 2 • improvements: some ND relief: low paying jobs w/ WPA or CCC (segregated) • 39: moral support from: Eleanor R, Harold Ickes (Marion Anderson) • Over 100 Af Ams appointed to middle level positions in fed gov by FDR • Mary McLeod Bethune: supporter of improved edu & econ opps for women • Invited to DC to direct WAY • Est’d fed council on Negro Affairs • To increase Af-Am involvement in ND

33. Fair Employment Practices Committee • Exec order in 1941 • Sets up committee to assist minorities in getting defense jobs • Action taken after threat by A. Philip Randolph (RR Porter’s Union) to march on DC for job opps

34. 1938 elections • Lost Dem majority in Cong • Coalition of Repubs and Conserv Dems block further ND reform • Fears about aggressive Acts of Nazi G divert attention from Domesting to 4n affairs

35. Life in Depression • Depression Mentality • Attitude of insecurity and econ concern- wd always remain, even thru prosperity

36. Women • 2 suppliment family income, more women sought work • Total percent in work force goes up • Accused of taking jobs from men although don’t get heavy factory jobs; lost to all; men didn’t want most jobs avail to women • Even with Eleanor’s push for equality; women’s wages much lower than men’s

37. Dust Bowl Farmers • Severe drought in Gt Plains • Ruined crops • Poor farming techniques, high winds, blew topsoil e of NYC • Farms turn to dust • Farmers  Oakies  CA search for farm or factory jobs • Often not found

38. Supreme Ct • Conservative decisions prove frustrating to FDRs first and second ND • Killed NRA for business recovery • AAA for agri recovery • By deciding laws that created them are unconstitutional • Election results of 36: landslide… mandate? • Court Packing • Proposal: Judicial Reorg Bill 1937: one new Justice for each over age 70.5 (6!) • Reaction: outrage at attempt to temper w/ checks and balances… would give him dictatorial powers! • FDR won’t back down • Neither did congressional opposition • After math: Justices begin to back off resistance to ND • 37 upheld Wagner Act & Soc Sec Act • Several retired in FDR’s second term

39. Demagogues • Appealed to desperate Americans looking for immediate solutions using radio to reach mass audiences • Proposed simplistic schemes for ending evil conspiracy (Father Coughlin) • Guaranteeing econ security for elderly (Dr. Townsend) • Redistributing wealth (Huey Long)

40. Coughlin • Radio Priest.. Weekly radio show • Founded National Union for Social Justice • Called for inflated currency, nationaizing all banks • Attacked ND & became anti Semitic and fascist • Superiors in Church order him to stop broadcasts

41. Townsend • Retired MD, CA • Plan: 2% fed sales tax used to create special fund to give everyone over 60 $200 mo provided they spend it; to stim econ. • Popular plan… leads to Soc Sec

42. Huey Long • Kingfish, LA senator, Share Our Wealth program: • Promise of 5K annual income to all families paid for by taxiing wealthy • Candidate for pres 35 • Assassinated in State Ct House

43. Native Americans • John Collier- Commissioner of Bureau of Indian Affairs- 1933 • Conservation • CCC projects on Reservations • Involvement in WPA and other New Deal programs • Indian Reorganization Act (Wheeler-Howard Act 34) repealed Dawes Act • Returned land to control of tribes & supported preservation of Native Amer. cultures

44. Mexican Americans • Discrimination in CA & SW • Principle source of agri labor since 20s • 30s drought & hi unemployment brings white migrant farm workers • Many Mexican-Americans return to Mexico

45. Ch 34: From Neutrality to War • Going on early in the 30s: • Japan threatens China • Nazi Germany rises with increased nationalism, militarism • Italy tries to expand • US worried about Depression, inceases isolationism

46. Hoover’s foreign policy • Moral efforts (peace conferences and treaties) are ok • So long as we can be isolated • Economic sanctions are bad; and lead to war

47. Asia • Sept ’31: Japan marched into Manchuria • Renamed it Manchuko; est’d puppet gov • League condemns via resolution • Japan stalks out of league • League takes NO action • Proves to be ineffective at keeping peace • Stimson Doctrine: Sec St declares we will not recognize legitimacy of Manchuko • Hoover takes ‘Good Will Tour’ to Latin America 1929 • Ended interventionist policies; w/d troops from Nic. 33 & Haiti 34

48. FDR’s foreign policies 33-38 • Good Neighbor Policy – • w/ L.A. “non-interventionist” • Businesses no longer heavily invested in L.A. • Rise in threats from J + G • FDR wants coop in defending region • Pan American Conferences- • 1933: Uruguay- we pledge no intervention • 1936: Argentina- future disputes will be arbitrated • & if Germany attacks; whole hemisphere resists together • Cuba 34: US nullifies Platt Amendment- keeps rt to Guantanamo Bay base • Mexico 38: Pres Cardenas seized US oil properties • FDR resists demands for intervention; urges negotiations

49. FDR’s econ diplomacy • London Econ Conf: 33- US w/d support when Conf called for stabilized currencies • Conf ends.. No agreement. • Recognition of USSR- 1933 to increase trade and boost econ. • Philippines passed Tydings-McDuffie Act 1934- to provide for independence by 46 and gradual removal of US troops • Reciprocal Trade Agreements- • Lowered tariffs- continued policies of Wm J Bryan & Wilson

50. Abroad • World wide depression military dictatorships • Italy 20s, Japan, Germany 30s , Axis Powers of 40s • Italy: 1922 Benito Mussolini led Fascists (angry war vets, nationalists, anti communists) • March on Rome • Il Duce (leader) • Fascism: people should glorify nation and race by aggressive show of force – • Germany- Nazi Party increased in 20s over econ probs, resentment of Versailles Treaty