FDR: Politician in a Wheelchair
o Handicapped by polio
o Eleanor Roosevelt First Lady
§ One of most active
§ Condemned by conservatives, loved by liberals.
o FDR had sponsored heavy state spending to relieve human suffering.
§ Believed that money rather than humanity expendible.
§ Concern for the “forgotten man”
§ Condemned by rich as the “traitor to his class”.
o Democrats nominated Roosevelt.
§ Platform was repeal for prohibition (more outright than Republican platform), bring out of Hoover depression and social, econ reforms.
§ “I pledge you, I pledge myself to a new deal for the American people”
Presidential Hopefuls of 1932
o Preached a “New Deal” for the forgotteon man.
§ Many of spirit-boosting speeches written by “Brain trust” who authored much of New Deal legislation.
o FDR managed to reaffirm his faith in American free enterprise and individual initiative
Hoover’s Humiliation in 1932
o Lopsided vote for Roosevelt.
o Distinctive shift of blacks where previously loyal to Republicans, now went to Democratic Roosevelt camp.
§ Black Americans among worst sufferers of depression, gradually became urban centers of North.
o Any upstanding Democratic candidate would have won.
o ¼ workers unemployed.
§ During lame-duck president elect was uncooperative w/ Hoover, and economy went to halt.
FDR and the Three R’s
o The only thing we have to fear is fear itself
o Nationwide banking holiday
§ Restore confidence in banks.
o Hundred Days of Congress into special session.
§ Short range goals were relief and immediate recoevery, esp in first two years. Long range goals were permanent recovery and reform of current abuses.
§ Congress gave president a lot of blank-check powers, where it gave legislative authority to the chief executive.
o Embraced some progressive ideas such as unemployment insurance, old age insurance, minimum wage, conservation and development of natural resources and restrictions on child labor.
Roosevelt Tackles Money and Banking
o Emergency Banking Relief Act
§ Regulate banking transactions and to reopen solvent banks
o Roosevelt boosted national spirit through “firesad chats”
§ Gave assurances that it was safe to keep money in reopened bank.
o Emergency or Hundred Days Congress precedent to what the president does in his first 100 days – busy Congress.
§ Glass-Steagall Banking Reform Act which provided for the Federal Deposit Insurance Corporation which insured deposits. Ended banking failures.
o Took the nation off the gold standard so that paper currency is exchanged instead.
§ “managed currency” was on its way.
§ Goal was to have inflation which Roosevelt thought would relieve debtors’ burdens and stimulate new production.
· By making Congress buy gold at higher prices, would increase the amount of dollars in circulation as holders of gold cashed it at elevated prices.
· Later returned the nation to gold standard for int’l trade only.
§ Later pledged to pay foreign bills in elevated gold rate.
Creating Jobs for the Jobless
o Hundred Days Congress created the Civilian Conservation Corps (CCC)
§ Perhaps most popular of “alphabetical agencies”.
§ Provided for 3 million young men jobs.
· Reforestation, firefighting, flood control, swamp drainage.
§ Human resources and natural resources conserved.
o First major effort for adult unemployed was Federal Emergency Relief Act.
§ Immediate relief than long-range recoevery.
§ FERA led by Harry L. Hopkins.
§ $3 billion to states for wages on work projects.
o More immediate relief by Agricultural Adjustment Act (AAA)
§ Available millions of dollars to help farmers meet mortgages.
o Home Owners’ Loan Corporation (HOLC) designed to refinance mortgages on nonfarm homes, assisted a MILLION almost dying households.
o Civil Works Administration (CWA)
§ Under Hopkins as well.
§ Purely temporary jobs created during winter for leaf-raking and small jobs.
A Day for Every Demagogue
o Persistence of unemployment = critics
o Father Charles Coughlin who went by slogan “Social Justice”
o Senator Huey P. Long publicized a “Share Our Wealth” program which promised to give money to each family .
o Dr. Francis E. Townsend had a plan that all older than 60 to receive $200 a month, was clearly impractical.
o Was part of impractical proposals to challenge the persistence of unemployment despite New Deal reform.
o Works Progress Administration (WPA)
§ Employment on useful projects.
§ Spent $11 billion building public buildings, bridges, roads.
§ Nearly 9 mil given jobs.
§ Gave part-time jobs for high school, college students and unemployed as actors, musicians, writers.
A Helping Hand for Industry and Labor
o National Recovery Administration (NRA)
§ Industries to work out codes of “fair competition”
· Hours of labor reduced
· Maximum hours, minimum wages est.
§ Labor guaranteed right to organize and bargain collectively through representatives of own choosing.
· Previously had company’s choosing
· “yellow dog” contract (antiunion) forbidden.
§ Patriotism aroused by mass meetings
§ Blue eagle symbol of NRA. “We do our part”
· But too much self-reliance for scheme to work.
§ Complete collapse in Schechter decision where Congress “could not delegate legislative powers” to executive.
· Congressional control of interstate commerce could not apply to local business
o Public Works Administration (WPA)
§ Also industrial recoevery and unemployment relief.
§ Headed by Harold L. Ickes.
§ Long-range recoevery purpose.
§ $4 billion on projects, public buildings, highways.
· Building of Grand Coulee Dam, largest structure since Great Wall.
· Enabled irrigation of millions of acres of new farmland (when gov was trying to reduce farm surpluses)
o More electrical power produced than TVA.
o Would greatly help in WWII.
o Liquor industry receives boost.
§ Repeal of prohibition = raise needed federal revenue and provide employment.
§ FDR legalized light alcoholic content.
· Tax on every barrel
§ Later fully repealed by 21st Amendment.
Paying Farmers not to Farm
o Farmers previously suffered from low prices and overproduction during WWI
§ Mortgages foreclosed, corn burned for fuel.
o Emergency Congress establishes Agricultural Adjustment Administration (AAA)
§ Note there are two AAAs
§ Established “artificial scarcity”
§ Paid farmers to reduce crop acreage.
· Payments by tax processors of farm products.
§ A lot of food killed while others were starving.
· Raised farm income but increased unemployment at a time when New Deal attempted to decrease it.
§ Supreme Cout kills AAA when declaring regulatory taxing provisions unconstitutional.
o Soil Conservation and Domestic Allotment Act.
§ Paying farmers to plant soil conserving crops to let land lie fallow.
§ Supreme Court approved.
o Second Agricultural Adjustment Act.
§ Acreage restrictions on specified commodities that would be eligible for parity payments.
§ Aimed to give farmers fairer price but more substantial share of national income.
Dust Bowls and Black Blizzards
o Dust Bowl – dust storms which devastated farming in mid west
§ Eastern Colorado to western Missouri.
§ High grain prices during WWI = farmers attempting to plant much more
§ Mechanization of farming = more acres.
· Dry-farming techniques killed land.
o In 5 years 350,000 “Okies” went to Southern California.
§ Portrayed in The Grapes of Wrath by John Steinbeck.
o Frazier-Lemke Farm Bankruptcy Act
§ Suspension of mortgage foreclosures for 5 years (later revised to be 3 years).
o Resettlement Administration
§ Removed near-farmless farmers to better land.
§ 200 million young trees planted on prairies by CCC.
o Native Americans previously suffered under forced assimilation of Dawes Act, but now had the Indian Reorganization Act.
§ Encouraged Indian self-government, preserve local craft, revive tribes’ interest in identity and culture.
§ Not all Indians liked it, 77 would reject while almost 200 would accept.
Battling Bankers and Big Business
o Federal Securities Act
§ Required promoters to transmit to investors sworn information regarding soundness of stocks and bonds.
§ Steps to protect public against fraud of stock market.
o Securities and Exchange Commission (SEC)
§ Watchdog administrative agency where stock markets to operate more as trading markets, less as gambling casinos.
o Attacked public utility holding companies
§ Samuel Insull’s multibillion dollar empire crashed.
§ Public Utility Holding Company Act killed bloated growth except where it may be economically needed.
The TVA Harnesses the TN River
o Electric-power industry great growth in recent decades, attracts attention of New Deal settlers.
§ TN Valley meanwhile had badly eroded river while w/ 2.5 mil of most poverty stricken people in America.
o Tennessee Valley Authority (TVA)
§ Result of zeal of George W. Norris (senator)
§ Was a revolutionary aspect of “planned economy”.
§ To test fairness of rates of private electric companies.
§ Condemned of socialism.
o Brought full employment and cheap electricity.
§ Low cost housing, restoration of eroded soil, reforestation, flood control improved.
§ Led to more federally build dams.
§ Would drive growth of urban West.
Housing Reform and Social Security
o Federal Housing Administration (FHA).
§ Building industry to be stimulated by small loans to householders (for improving houses or building new ones).
§ One of the “alphabetical agencies” to persist after the era.
o United States Housing Authority (USHA)
§ Lent money to states for low cost construction.
§ New building fell short of needs.
§ Strong opposition from real estate promoters, builders, landlords.
§ But slum areas ceased growing, some even sharnk.
o Very important: Social Security Act of 1935
§ Federal state unemployment insurance.
§ Security for old age
§ Provisions for dependents incl. blind, physically handicapped, delinquent.
· Lots of Republican opposition as they felt that people must work to get what they want.
§ Inspired by industrialized nations of Europe.
· 1939 over $45 mil people eligible for SS benefits
A Neal Deal for Unskilled Labor
o Labor began to be more self-assertive.
§ Many walkouts during summer of 1934 San Francisco riots.
§ Sympathetic to unskilled labor.
o Led to Wagner or National Labor Relations Act.
§ Created powerful National Labor Relations Board for reasserting rights of labor to organize and bargain.
§ Unskilled workers began to organize into effect unions.
· Leader was John L. Lewis, leader of United Mine Workers.
· Formed the Committee for Industrial Organization (CIO) within AFL
§ As AFL only showed little sympathy for cause of unskilled labor, older federation suspended association w/ AFL.
o Most common technique sit down strike.
§ Very effective; recog once by General Motors
o US Steel Company voluntarily granted rights to unionize to CIO employees.
§ But other companies incl. Republic Steel Company would massacre workers once.
o Fair Labor Standards Act.
§ Minimum wage, maximum hour
§ Labor by children under 16 (18 if dangerous) forbidden.
· Resented by industrialists who thrived on low wages
§ But excluded agricultural, service and domestic workers.
· Meant blacks, women, Mexicans who were concentrated in these fields did not benefit.
§ But greatly increased FDR support by the wage workers.
o CIO broke w/ AFL later to create Congress of Industrial Organization (new CIO).
§ Also headed by John L. Lewis
§ Some fued w/ AFL
Landon Challenges “the Champ” in 1936
o Republicans nominate Alfrd M. Laondon.
§ Moderate, accepted some New Deal, but didn’t for Social Security Act
§ Backed up by Hoover, called for “holy crusade of liberty”, echoed cry of American Liberty League (who was against socialism).
o Led to one of most lopsided landslide victories ever. 523 to 8 electoral votes.
§ Democrats now have 2/3 seats in House and Senate.
o Election = Republican no longer charged on class war.
§ Meanwhile CIO greatly contributed to FDR’s campaign.
§ Blacks also liked relief checks, and shook of allegiance to Republicans and voted for FDR.
o FDR appealed to the “forgotten man”.
§ Also won over the “New immigrants” Catholics and Jews.
§ 1920s 1/25 federal judge Catholic, FDR made ¼ Catholic.
Nine Old Men on the Supreme Bench
o Roosevelt took oath early due to 20th Amendment which removed part of “lame duck” session of president-elect.
o FDR interp re-election as mandate to continue New Deal.
o Began to think of Supreme Court as an obstacle.
§ Had been stopped 9 times.
§ Was very conservative, and 6 of 9 over 79.
§ None appointed by FDR in single term.
§ Attempted to pack the Court – asked Congress for permission.
· Backfired greatly, not supported by Republicans and even his own Democrats.
The Court Changes Course
o Court more liberal later
§ Justice Owen Roberts previously conservative, began to vote on side of liberals.
§ Later would uphold state minum wage for women, reversing its stand later.
§ Upheld Wagner Act later and Social Security Act.
o Congress later passed court reform bill but only applied to lower courts.
§ Later Court became more friendly to New Deal reforms and many deaths led FDR to appoint more judges to tribunal.
o But aroused conservatives in Congress that FEW New Deal reforms passed after 1937.
The Twilight of the New Deal
o Roosevelt’s first term did not remove depression.
§ Unemployment persisted, down to 15% unemploymentin 1936 after 25% in 1933.
§ Recovery progress pretty slow.
o 1937 recession surprising
§ Government policies caused Social Security taxes to go into debts b/c payrolls not enough.
§ So later listened to John Maynard Keynes (British economist)
· Previously New Deal had run deficits for several years, but many were small.
· 1937 – program to stimulate economy through planned deficit spending.
o Was MAJOR TURNING POINT for gov’s relationship to economy.
o Was “Keynesianism” = reform of economic spending.
o Early 1937 Congress more conservative.
§ Went against FDR efforts to have sweeping reorganization of national administration for more efficiency.
§ Tangled up in previously presumed autocratic “Court-packing”, so defeated.
§ Partially relented through Reorganization Act which gave him limitd powers for admin reforms incl new Executive Office in White House.
o New Dealers accused of having richest campaign chest in history.
§ Gov often sent a lot of relief checks before ballot.
§ Congress passes Hatch Act where federal administrative officials (most) could not have active political campaigning, and use of gov funds for campaign.
· More limits on campaign contributions.
o By 1938 New Deal loses momentum.
§ Congressional elections 1938 = Republicans got into New Deal majorities of Congress though not gaining total control.
§ International crisis = public attention to foreign policy.
New Deal or Raw Deal?
o Foes of New Deal spoke out against contradictions, confusion, the “alphabet soup”.
§ Thought that FDR didn’t really do anything.
§ Accused of confusing noise and movement with progress while others appreciated his do-something approach.
§ Condemned for blossoming of bureaucracy.
o Promises of budget balancing not fulfilled.
§ $ 19 bil in 1932 to $40 bil in 1939.
§ US = unlimited spending.
§ Americans, once self-reliance, now dependent on government.
o Business bitter.
§ Accused New Deal of formenting class strife.
§ Private enterprise being stifled by “planned economy”.
o Aggressive leadership and attempts to get a supergovernment opposed
§ Packing the Court
§ “purging” Supreme Court in 1938 elections where he publicly opposed senators.
o Failed to cure depression.
§ Just relieved it.
§ $20 billion used in 6 years, gap not closed between production and consumption.
§ Even more farm surpluses.
§ Many unemployed still.
§ Only World War II would bring country out of depression
FDR’s Balance Sheet
o Declared that New Deal relieved worst of crisis
o Had the “balancing of the human budge” and accepted that fed gov morally bound to prevent mass hunger.
§ Argued fairer distribution of national income achieved.
§ Reflected popular sentiments against business and may have saved American system from free enterprise.
o Said that he was against capitalists but not capitalism.
o Chose the middle road b/c use of big government, but also concern for “forgotten man”
§ Preserved democracy in times when they were falling in world.
0 comments:
Post a Comment