Lecture Notes: Franklin D. Roosevelt and the New Deal

Introduction to Key Questions

• How did FDR's New Deal attempt to use government power for relief, recovery, and reform?
• What were criticisms of the New Deal, and how did FDR respond?
• What was the New Deal coalition, and how did it change political alignments?
• What were the long-term legacies of the New Deal on the federal government?

Background

• 1928: Hoover elected President, predicted triumph over poverty.
• 1929: Stock market crash, bank failures, unemployment ~25%.
• 1932: Franklin D. Roosevelt (FDR) wins presidency in a landslide.
• Democratic control of Congress.

FDR's Brain Trust and Goals

• Diverse group including women, African-Americans, Jewish and Catholic Americans.
• Goals: Relief, Recovery, Reform (3 R's).
  • Relief: Direct payments to individuals.
  • Recovery: Help businesses re-establish.
  • Reform: Legislation to prevent future depressions.

Key Actions and Legislation

• Bank Holiday to stabilize banks.
• Glass-Steagall Act: Created FDIC.
• 20th Amendment: Changed inauguration date to January 20th.
• SEC Creation: Regulate stock market, prevent insider trading.
• Abandonment of the Gold Standard.
• 21st Amendment: End of Prohibition.
• Agricultural Adjustment Act (AAA): Paid farmers to reduce production.
• Tennessee Valley Authority (TVA): Regional planning, electricity to rural areas.
• Civilian Conservation Corps (CCC): Employment for young men.

Criticisms of the New Deal

• Father Coughlin: Advocated for annual income guarantees.
• Dr. Francis Townsend: Focused on elderly; influenced Social Security.
• Huey Long: Advocated wealth redistribution; assassinated in 1935.

The Second New Deal (1935)

• Increased taxes on the wealthy.
• Works Progress Administration (WPA): Jobs creation beyond manual labor.
• Wagner Act: Protected union rights.
• Social Security Act: Benefits for elderly, disabled, and orphaned children.

Political Shifts and New Deal Coalition

• New Democratic coalition: Southern whites, progressives, labor unions, African-Americans.
• Shift from Republican progressivism to Democratic government intervention.

FDR's Court Packing Plan

• Proposal to expand Supreme Court from 9 to 13 justices.
• Strong opposition and rejection.

Impact on Minorities and Labor

• Increase in opportunities led by Eleanor Roosevelt.
• Discrimination persisted, but some advancements for African and Native Americans.
• Labor gains: Fair Labor Standards Act, union growth.

Legacy of the New Deal

• Expansion of federal government role.
• Support for unions and farm subsidies.
• Shift in political ideologies between Democrats and Republicans.
• Keynesian economics: Government intervention in economic crises.
• Did not end the Great Depression; WWII production did.