I wonder what this program will do?

 

  1. Awaiting the inauguration
    1. Hoover had no influence, and Roosevelt had no power.
    2. Hoover would not help FDR in any way, he wanted FDR to say Hoover’s ideas were good
    3. In February, Michigan’s Governor closed all banks to stop further bank runs – other states followed.
    4. Roosevelt chose a cabinet made up of people with a wide range of opinions and backgrounds
    5. FDR’s inauguration speech “the only thing we have to fear is fear itself”
  2. The hundred days – FDR amazed and excited Americans with the speed he was able to implement his ideas and programs.  These programs gave Americans confidence that the gov’t was capable of solving the nation’s problems.
    1. Emergency Bank legislation – allowed banks to get access to cash, this relieved the bank panics
    2. Volstead Act – legalized the sale of light wine and beer
    3. The Agricultural Adjustment Act (AAA) – plan to increase prices farmers received by limiting production

                                                               i.      Farmers would be subsidized by the gov’t if they did not plant 1/3 to ¼ of their land

                                                             ii.      The Fed. Gov’t would buy non-perishable crops and store them until there was a market for them

                                                            iii.      Larger farmers were helped more than smaller ones, sharecroppers in the South were hurt by the plan—their land was the land taken out of production.

    1. Section 7a – offered federal guarantees that unions could organize legally
    2. Public Works Administration (PWA)– set up to fund projects to produce jobs—little of the $3.3 billion was spent
    3. Civilian Conservation Corps (CCC) – offered work relief jobs instead of handouts – young men worked in the country to build parks, dams, reservoirs, and protect forests and watersheds.
    4. National Recovery Act (NRA) – set minimum wages and maximum hours – if industries agreed to the standards set, the gov’t would agree to limit competition in that industry.  The NRA also eliminated child labor and allowed unions to organize.
    5. Removal of the gold standard – FDR was looking for a way to increase inflation (or at least stop deflation).  He allowed the price of gold to go up (decreasing the value of the dollar)
    6. Lowering of interest rates—this made the cost of a loan go down, more people and business could afford to borrow money.
  1. The rest of the first term – FDR continued to try and improve the nations economy
    1. Amending of the Federal Reserve Act of 1913 – took control away from private banks and created a federal agency to regulate the volume of money and interest rates.
    2. Creation of Securities and Exchange Commission – to prevent and punish fraud in the sale of stocks
    3. Federal Deposit Insurance Corporation (FDIC) – guaranteed the safety of deposits and restored confidence in the banks.
    4. Tennessee Valley Authority – provided electricity to a region of the country that had been neglected by private power companies
  2. Criticism of FDR – initially few opposed Roosevelt’s policies, but as things got a little better, critics on the left and right began to appear.
    1. Conservative critics – Conservatives felt FDR was leading the US on the road to Communism.

                                                               i.      American Liberty League – called for a return to minimalist gov’t.  This action backfired as FDR no longer made any attempt to appease the conservatives of the country.

    1. Liberal critics – some felt that FDR had not done enough to redistribute wealth

                                                               i.      Huey Long – governor of Louisiana.  He called for a huge increase in taxes on the rich to be given directly to the poor.  Long had hopes of becoming Pres. but was assassinated in 1935.

                                                             ii.      Dr. Francis Townsend – proposed a $200 monthly pension to all over the age of 60, the money had to be spent that month.  The plan was not well thought out.

                                                            iii.      Father Charles Coughlin – Royal Oak, Michigan “radio priest” called for the nationalization of the banks – he blamed Jews for the plight of the US.

    1. The Supreme Court – the Supreme Court was still very conservative, they began declaring FDR’s programs unconstitutional.

                                                               i.      The Court struck down the farm mortgage relief act, the National Industrial Recovery Act (Section 7a, and the PWA), the NRA, the AAA, and said that Congress had no right to regulate local businesses.

  1. Roosevelt’s response – FDR used these setbacks to further his aims.  He blamed those who opposed him for the slowness of the recovery.  “If things were done my way…..”.
    1. The Works Progress Administration (WPA) – hired unemployed workers to build schools (Garfield and Washington), roads, and airports.  Artists, writers, and musicians were hired to write guidebooks, stage plays, paint mural etc.
    2. Wagner Act – outlawed unfair labor practices and gave unions powers that had been removed when the S.C. vetoed section 7a.  It also created the National Labor Relations Board to enforce these provisions.
    3. Resettlement Administration (RA) – created to help displaced farmers (this was the “nice” camp in the movie). The goal was to establish cooperative farm communities and resettle farmers on gov’t land.  Little of the money set aside for this program was spent.
    4. Social Security Act of 1935 – provided pensions for the elderly and unemployment compensation.  Created a “safety net” for workers.
  2. Election of 1936
    1. Republicans nominate Alf Landon a very liberal Republican, Liberal critics created the Union party and nominated William Lemke. 
    2. Roosevelt wins in a landslide – carried every state except Maine and Vermont.
  3. “Packing” the Supreme Court
    1. FDR was tired of having the S.C. overturn his programs.  He proposed adding 6 members to the S.C.  His rationale was the elderly members of the court could not keep up with the workload.
    2. It was apparent that the reason was that FDR was tired of losing cases, and the proposal fell apart.
    3. The court suddenly became much more liberal and started finding FDR’s new proposals constitutional.  The threat of action against them caused the court to side with FDR more often.
  4. Union fight
    1. The American Federation of Labor (AFL) still did not want unskilled workers in their union.  A rift between John Lewis (the leader of the United Mine Workers) developed and he was kicked out of the AFL.
    2. Lewis formed the Congress of Industrial Organization (CIO).  This union accepted black workers, women, and the unskilled.
    3. Sit-down strike – first used in Flint against GM.  Workers sat down next to their work area to prevent the use of “scab” labor. 
    4. Henry Ford responded to picketers by hiring Pinkerton detectives to beat them at the Ford Rouge plant.
    5. Union membership grew to 7.2 million by 1939