chapter 32 lecture - oak park usd...iv. fdr and the three r's: relief, recovery, reform (cont.)...

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Chapter 32TheGreatDepressionandtheNewDeal,

1933–1939

Presented by:

Mr. Anderson, M.Ed., J.D.

I.FDR:PoliticianinaWheelchair• Roosevelt's personality

– Shapedbystrugglewithinfantileparalysis:• Putadditionalsteelinhissoul• Sufferinghumbledhim• Schooledhimselfinpatience,tolerance,compassion,andstrengthofwill

– Apersonalandpoliticalassetwashiswife,Eleanor:

– Distant cousin ofFranklin– Overcamemisery ofunhappy childhood– Emerged aschampion ofdispossessed– Ultimately “conscience oftheNew Deal”

I.FDR:PoliticianinaWheelchair(cont.)

– FDR's political careerasmuchhersas itwas his– Mrs.Roosevelt also marched toherown drummer

» Joined Women's TradeUnion LeagueandLeagueofWomenVoters

– Moving into White House, she brought unprecedented number ofwomen activists

– Network helped makehermostactiveFirst Ladyin history– Shepowerfully influenced policies ofnational government

– Shebattled for impoverished andoppressed– Personnel relationship with FDRrocky,due tohis infidelities– Condemned byconservatives and lovedby liberals, shewas oneofmost controversial—and consequential—pub lic figures of1900s

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• FranklinRoosevelt's political appeal:– PremierAmericanoratorofhisgeneration– AspopulardepressiongovernorofNewYork:

• Sponsoredheavystatespendingtorelievehumansuffering

• Believedmoney,ratherthanhumanity,expendable• Revealeddeepconcernforplightof“forgottenman”• Assailedbyrichas“traitortohisclass”

• Democratic National Convention (July1932)inChicago speedilynominated Roosevelt– Democraticplatform:

• Promisedbalancedbudget• Sweepingsocialreforms• FDRflewtoChicagoandacceptednominationinperson

• Hiswords,“Ipledgeyou,IpledgemyselftoanewdealfortheAmericanpeople”

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II.PresidentialHopefuls of1932– Roosevelt:

• ConsistentlypreachedNewDealfor“forgottenman”• Hewasannoyinglyvagueandsomewhatcontradictory• Manyofhisspeechesghostwrittenby“BrainsTrust”(popularlyBrainTrust)

– Small groupof reform-minded intellectuals– Kitchen cabinet, who authored muchNew Deal legislation– FDRrashly promised balanced budget– And berated heavyHooverian deficits

II.PresidentialHopefuls of1932(cont.)

– Hoover:• RemainedinWhiteHouse:

– Conscientiously battling depression– Outoncampaign, supporters halfheartedly assured half-listening voters

– Insisted Roosevelt's impending victorywould plunge nationdeeper into depression

• WithcampaigngoingbadlyforRepublicans,– Hoover took tostump– Reaffirmed his faith in American freeenterprise andindividual initiative

III.Hoover's Humiliation in1932

• Election of1932:– Hooverhadbeensweptintoofficeonrisingtideofprosperity

– Hewassweptoutofofficebyrecedingdepression– Votes:

• 22,809,638forRoosevelt;15,758,901forHoover• Electoralcount472to59• Hoovercarriedonlysixrock-ribbedRepublicanstates

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III.Hoover'sHumiliation in1932(cont.)

• Featuresofelection:– DistinctshiftofblackstoRooseveltcamp

• Victimsofdepression• ShiftedtoDemocraticParty,especiallyinurbancentersofNorth

– HardtimesruinedRepublicans:• Voteasmuchanti-Hooverasitwaspro-Roosevelt• Democratsvoiceddemandforchange:

– A new deal rather than theNewDeal

• Lameduckperiod:– Hoovercontinuedtobepresidentfor4longmonths,untilMarch4,1933• Helplesstoembarkuponanylong-rangepolicieswithoutcooperationofRoosevelt

• President-electuncooperative• HooverarrangedtwomeetingswithRoosevelttogetFDRtoagreetoanti-inflationarypolicythatwouldhavepreventedmostNewDealexperiments

– Inpolitics,thewinner,notloser,callstune

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• Washington deadlocked:– Economyclankedtovirtualhalt– Oneworker infour,unemployed– BankslockedtheirdoorsthroughoutU.S.– SomeHooveritesaccusedRooseveltofdeliberatelypermittingdepressiontoworsensohecouldemergemorespectacularlyassavior

IV.FDRandtheThree R's:Relief,Recovery, Reform

• Inauguration Day,March4, 1933:– Rooseveltdenounced“moneychangers” whobroughtoncalamity

– DeclaredgovernmentmustwagewaronGreatDepression

– Moveddecisively:• Boldlydeclarednationwidebankingholiday,March6-10• SummonedCongressintospecialsessiontocopewithnationalemergency:

IV.FDRandtheThreeR's:Relief,Recovery,Reform(cont.)

• Hundred Days(March9-June 16,1933):– Congresscrankedoutunprecedentedremediallegislation(seeTable32.1)

– Newmeasurestodealwithdesperateeconomy– AimedatthreeR's:relief, recovery, andreform– Short-rangegoals—reliefandimmediaterecoveryintwoyears

– Long-rangegoals—permanentrecoveryandreformofcurrentabuses

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Table 32-1 p746

IV.FDRandtheThreeR's:Relief,Recovery,andReform(cont.)

• Roosevelt's Hundred DaysCongress:– RubberstampedbillsdraftedbyWhiteHouse– Roosevelt's“mustlegislation” gavehimextraordinaryblank-checkpowers

– Someofthenew lawsdelegated legislativeauthoritytochiefexecutive

– PassedmanyessentialNewDeal“threeR's”thoughlong-rangemeasuresaddedlater

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IV.FDRandtheThreeR's:Relief,Recovery,andReform(cont.)

• NewDealers embraced progressiveideas:• Unemploymentinsurance,old-ageinsurance• Minimum-wageregulations• Conservationanddevelopmentofnaturalresources• Restrictionsonchildlabor

– Inventedsomenewschemes:• TennesseeValleyAuthority

– NolongerwouldAmericalookasbackwardinrealmofsocialwelfareasitoncehad

V.RooseveltManagestheMoney

• Bankingchaos—immediate action:– EmergencyBankingReliefActof1933:

• InvestedPresidentwithpowertoregulatebankingtransactionsandforeignexchange

• Toreopensolventbanks

• Roosevelt turned toradio:– Delivered firstof30famous“firesidechats”– Nowsafetokeepmoneyinreopenedbanks– Confidencereturned;banksunlockeddoors

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V.RooseveltManagestheMoney(cont.)

• Glass-Steagall BankingReformAct:– CreatedFederalDepositInsuranceCorporation:

• Insuredindividualdepositsupto$5,000(laterraised)• Endedbankfailures,datingbackto“wildcat”daysofAndrewJackson(seeFigure32.1)

• Declining goldreserves:• FDRorderedallprivateholdingsofgoldbesurrenderedtoTreasuryinexchangeforpapercurrency

• Thentooknationoffgoldstandard• Congresscanceledgold-paymentclauseinallcontracts

Figure 32-1 p747

• Authorizedrepaymentinpapercurrency

– A“managedcurrency” onitsway:• FDR's“managedcurrency” wasinflation:

– Which hebelieved would relieve debtors' burdens– And stimulate newproduction

• Principalinstrumentforachievinginflationwasgoldbuying

– InstructedTreasurytopurchasegoldatincreasingprices—priceofgoldincreasedfrom$21anounce(1933)to$35anounce(1934)• Apricethatheldforfourdecades

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• Policydidincreaseamountofdollarsincirculation• Inflationaryresultprovokedwrathof“sound-money”criticson“baloneydollar”

• GoldschemecametoendinFebruary1934,whenRooseveltreturnedtolimitedgoldstandardforinternationaltradepurposes

– United Statespledged topayforeign bills, if requested, ingold atrateofoneounce ofgold forevery$35 due

• Domesticcirculationofgoldcontinuedtobeprohibited

– Gold coinsbecamecollector's items

VI.CreatingJobs fortheJobless

• Overwhelming unemployment:– Oneoutoffourworkersjobless

• Highestlevelofunemploymentinnation'shistory• Roosevelthadnohesitancyaboutusingfederalmoneytoassistunemployed

• Atsametime“primethepump” ofindustrialrecovery

VI.CreatingJobs fortheJobless(cont.)

• Civilian Conservation Corps (CCC):– MostpopularofNewDeal“alphabeticalagencies”• Providedemploymentinfresh-airgovernmentcampsforaboutthreemillionyoungmen

• Usefulwork—includingreforestation– Firefighting (47 lives lost), flood control, swamp drainage

• Recruitsrequiredtohelpparentsbysendinghomemostoftheirpay

• Bothhumanandnaturalresourcesconserved

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– CriticsofCCC:• Minorcomplaintsof“militarizingthenation'syouth”

– Adultunemployment:• FederalEmergencyReliefAdministration(FERA):

– Under HarryL. Hopkins– Hopkins's agencygranted$3billion tostates fordirect dolepayments orpreferably forwageson work projects

• Relief forhard-pressed specialgroups:– AgriculturalAdjustmentAct(AAA):

• Mademillionsavailabletohelpfarmersmeetmortgages

– HomeOwners' LoanCorporation(HOLC):• Refinancedmortgagesonnonfarmhomes• Assistedamillionbadlypinchedhouseholds• Bailedoutmortgage-holdingbanks• Boltedloyaltiesofrelievedmiddle-classhomeownerssecurelytoDemocraticparty

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• CivilWorksAdministration (CWA)(1933):– SetupbyRoosevelthimself– UnderdirectionofHopkinsviaFERA

• Providedtemporaryjobsduringcruelwinteremergency

• Tensofthousandsofjoblessemployedatleafrakingandothermake-worktasks

• Schemewidelycriticizedaskindoflaborthatputpremiumonshovel-leaningslowmotion

Table 32-2 p749

VII.ADayforEveryDemagogue

• Persistence ofsuffering indicated emergencyrelief measuresneeded– Notonlytobecontinued,butsupplemented– Dangersignalwasappearanceofdemagogues—notablymagnetic“microphonemessiah”:• FatherCharlesCoughlinbeganbroadcastingin1930

– His slogan was“Social Justice”– Hisanti-New Dealmessages went to40million radio fans– Soanti-Semitic, fascistic, and demagogic thathewassilenced in1942byecclesiastical superiors

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VII.ADayforEveryDemagogue(cont.)

– Newbroodofagitatorscapitalizedonpopulardiscontent:• Dr.FrancisE.Townsendpromisedeveryoneoversixty$200amonth

• SenatorHueyP.Long(“Kingfish”)publicizedhis“ShareOurWealth” program

– Promised tomake“EveryManaKing”– Every familywould receive $5,000, supposedly atexpenseofprosperous

– FearofLongbecoming fascist dictator ended when hewasshot byanassassin inLouisiana in1935

– Demagogues(CoughlinandLong)raisedtroublingquestionsaboutlinkbetweenfascismandeconomiccrisis:

– Authoritarian rule strengthened in Japan– Adolf Hitler acquired absolute authority inGermany– Someworried Roosevelt would turn intodictator

• Toquietunrest,CongressauthorizedWorksProgressAdministration(WPA)in1935

– Objective was employment onuseful projects– Agencyultimately spent about $11billion on thousands ofpublic buildings, bridges, andhard-surfaced roads

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• NoteveryWPAprojectstrengthenedinfrastructure– Onecontrolled crickets in Wyoming– Built amonkeypen in Oklahoma City

• MostlovedWPAprograms:– Federal ArtProject—hired artists tocreateposters andmurals

• Critics claimedWPAmeant“WeProvide Alms”• Overeight years,nearly ninemillion peoplegivenjobs, nothandouts:– Nourishedprecioustalent– Preservedself-respect– Fosteredcreationofmorethanamillionpiecesofart,manyofthempubliclydisplayed

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VIII.NewVisibility forWomen

– After19th Amendment,womenbegantocarvemorespaceinpoliticalandintellectuallife

– FirstLadyEleanormostvisiblewomaninRooseveltWhiteHouse

– SecretaryofLaborFrancisPerkins(1880-1965)became firstwomancabinetmember

– MaryMcLeodBethune(1875-1955)• DirectorofOfficeofMinorityAffairsinNationalYouthAdministration—servedashighest-rankingAfricanAmericaninRooseveltadministration

VIII.NewVisibility forWomen(cont.)

• Women'scontribution insocial sciences:– Anthropology:

• RuthBenedict(1887-1948)carriedonworkofhermentor,FranzBoas(1858-1942)

– Bydeveloping “culture andpersonality movement” in1930s and1940s

– Benedict's landmark work:Pattern ofCulture (1934):» Established study ofcultures ascollective personalities» Eachculture, likeeach individual, had itsown “moreorless consistent pattern of thought andaction”

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VIII.NewVisibility forWomen(cont.)

• MargaretMead(1901-1978),studentofBenedict:– Herstudies ofadolescence amongPacific island peoplesadvancedbold new ideas about sexuality, gender roles, andintergenerational relationships

– 34books published andcuratorship atAmerican Museum ofNatural History, NewYork

– Popularized cultural anthropology andachieved celebritystatus rareamongsocial scientists

• PearlS.Buck(1892-1973):– Introduced American readers toChinese peasant society– Herbest selling novel, TheGood Earth (1931)earned NobelPrize forLiterature in1938

– Used her fametoadvancehumanitarian causes

IX.HelpingIndustry andLabor

• National RecoveryAdministration (NRA)– Mostcomplexandfar-reachingofNewDealprojects• Combineimmediatereliefwithlong-rangerecoveryandreform

• Triple-barreled:designedtoassistindustry,labor,andunemployed

– Individual industries would work outcodes of“faircompetition” under which hours of labor would be reduced

– Tospread employment tomorepeople– Aceiling placed onmaximumhours oflabor– A floor placed under wages toestablish minimum levels

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IX.HelpingIndustry andLabor(cont.)

– Laborgrantedadditionalbenefits:• Workersformallyguaranteedrighttoorganize• Andbargaincollectivelythroughrepresentativesoftheirownchoosing—notagentsofcompany'schoosing

• “Yellowdog,” orantiunion,contractexpresslyforbidden

• Certainrestrictionsplacedonuseofchildlabor

• NRA's “faircompetition” codes:– Calledforself-denialbymanagementandlabor– Patriotismarousedbymassmeetingsandparades

– BlueeagledesignedassymbolofNRA– Forbrieftime,anupswinginbusinessactivity

– ProblemsofNRA:• Toomuchself-sacrificeexpectedoflabor,industry,andpublic

• “Ageofchiselry” asunscrupulousbusinessmen(“chiselers”)displayedblueeaglebutsecretlyviolatedcodes

• SupremeCourtkilledNRAinfamed“sickchicken”case– InSchechter (1935)Court ruled:– Congress could not“delegate legislative powers” toexecutive– Declared congressional control of interstate commercecouldnotapply toalocal business

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– PublicWorksAdministration(PWA):• LikeNRA,intendedforindustrialrecoveryandunemploymentrelief

• HeadedbySecretaryofInterior,HaroldL.Ickes• $4billionspenton34,000projects:

– Public buildings, highways, and parkways– GrandCoulee DamonColumbia River (Washington):

» Irrigated millions ofacresofnew farmland» Created moreelectrical power than entire TennesseeValley Authority

» Transformed PacificNorthwest with abundant waterandpower

– Liquorindustry:• Imminentrepealofprohibition:

– Afforded opportunity to raise federal revenue– And provide employment

• HundredDaysCongress– Legalized light wine andbeer with alcoholic content ofnomore than 3.2%byweight

– Levied taxof$5oneverybarrel somanufactured

• ProhibitionrepealedbyTwenty-firstAmendmentin1933(seeAppendix)

– Saloon doors swung open

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X.PayingFarmersNottoFarm

– Sufferingfarmers:• Sincewar-boomdaysof1918,sufferedlowpricesandoverproduction

• Depression—innumerablemortgagesforeclosed

– AgriculturalAdjustmentAdministration(AAA):• Through“artificialscarcity”establish“parityprices” forbasiccommodities

• “Parity” aspricesetforaproductthatgaveitsamevalue,inpurchasingpower,thatitenjoyedfrom1909-1914

X.PayingFarmersNottoFarm(cont.)

• AAAwouldeliminateprice-depressingsurplusesbypayinggrowerstoreducecropacreage

• Millionsraisedbytaxingprocessorsoffarmproducts,whointurnwouldshiftburdentoconsumers

• “Subsidizedscarcity”wouldraisefarmincome• Payingfarmersnottofarmincreasedunemployment• SupremeCourtkilledActin1936• CongresshastenedtopassSoilConservationandDomesticAllotmentActof1936

– Farmerspaid toplant soil-conserving crops or let land liefallow

X.PayingFarmersNottoFarm(cont.)

• EmphasisonconservationapprovedbySupremeCourt

– SecondAgriculturalAdjustmentActof1938:• Continuedconservationpayments• Ifgrowersobservedacreagerestrictionsonspecifiedcommodities,theywouldbeeligibleforparitypayments

• Goaltogivefarmersnotonlyfairerpricebutmoresubstantialshareofnationalincomepartiallyachieved

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XI.DustBowlsandBlackBlizzards

• Nature helped provide unplanned scarcity:– DustBowl:

• Droughtandwindtriggeredduststorms,buttheywerenotonlyculprits:

• Farmersboughtcountlessacresofmarginallandundercultivation

• Dry-farmingtechniquesandmechanizationhadrevolutionizedGreatPlainsagriculture

• Methodsleftpowderytopsoiltobesweptawayatnature'swhim(seeMap32.1)

XI.DustBowlsandBlackBlizzards(cont.)

• Tensofthousandsofrefugeesfledruinedfarms– Manysettled in San Joaquin Valley ofCalifornia– Yettransition wascruel– Dismal storyof these human tumbleweeds realisticallyportrayed by JohnSteinbeck, TheGrapes ofWrath (1939)

– Effortstorelievetheirburdens:• Frazier-LemkeFarmBankruptcyAct(1934):

– Made possible suspension ofmortgage foreclosures for fiveyears—voided nextyearbySupremeCourt

– Revised law, limiting graceperiod to threeyears, unanimously upheld

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• ResettlementAdministration(1935):– Charged with removing near-farmless farmers tobetter land– 200million young treessuccessfully planted onbareprairiesbyyoungmenofCivilian Conservation Corps

• NativeAmericansfeltfar-reachinghandofNewDealreform:

– Commissioner ofIndian Affairs John Collier sought to reverseforced-assimilation polices inplacesince DawesActof1887(seeChap. 26)

– Collier promoted Indian Reorganization Actof1934» “Indian NewDeal” encouraged tribes toestablish localself-government andpreserve native craftsand traditions

– New lawhelpedstoplossofIndianlandsand– Revivedtribes' interestinidentityandculture– NotallNativeAmericansapplaudedit:

• Somedenounceditas“back-to-the-blanket”measurethatwouldmakemuseumpiecesoutofIndians

• 77tribesrefusedtoorganizeunderit,thoughnearly200othersdidestablishtribalgovernments

Map 32-1 p756

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XII.BattlingBankersandBigBusiness– NewDealersdeterminedtoreform“moneychangers”• WhohadplayedfastandloosewithgullibleinvestorsbeforeWallStreetcrashof1929

– “TruthinSecuritiesAct” (FederalSecuritiesAct):• Requiredpromoterstotransmittoinvestorssworninformationregardingsoundnessofstocksandbonds

– SecuritiesandExchangeCommission(SEC)1934:• Watchdogagencytoprotectpublicagainstfraud,deception,andinsidemanipulation

– Stockmarkets would operate moreas trading marts and less asgambling casinos

XII.BattlingBankersandBigBusiness (cont.)

• NewDealers directed fire atpublic utilityholding companies:– Onesuchsupercorporationcollapsedin1932whenSamuel Insull'sfinancialempirecrashed

– PublicUtilityHoldingCompanyActof1935:• “Deathsentence” tosuchbloatedgrowth,exceptwhereitmightbedeemedeconomicallyneedful

XIII.TheTVAHarnessestheTennessee

– Electric-power industryattractedireofNewDealreformersforchargingexcessiverates:• Anindustrythatreacheddirectlyintopocketbooksofmillionsofcustomersforvitallyneededservices

• TennesseeRiverprovidedNewDealerswithopportunity:

– Bydeveloping hydroelectric potential ofentire area,Washington could combine immediate advantage:

» Employment of thousands ofpeople towork

» And long-term project for reforming power monopoly

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XIII.TheTVAHarnessestheTennessee (cont.)

• Tennessee Valley Authority (TVA) (1933)• VisionofSenatorGeorgeW.NorrisofNebraska• Fromstandpointof“plannedeconomy,” byfarmostrevolutionaryofallNewDealschemes

• Determinedtodiscoverpreciselyhowmuchitcosttoproductanddistributeelectricity

• Withthat“yardstick,” fairnessofrateschargedbyprivatecompaniescouldbejudged

• NewDealerspointedwithpridetoamazingachievementsofTVA

Map 32-2 p757

– Benefitstoarea:• Fullemployment• Cheapelectricpower(seeFigure32.2)• Low-costhousing• Abundantcheapnitrates• Restorationoferodedsoil• Reforestation• Improvednavigation• Floodcontrol

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• NewDealersagitatedforparallelenterprisesinvalleysofColumbia,Colorado,andMissouriRivers

• Conservativereactionagainst“socialistic” NewDealconfinedTVA'sbrandoffederallyguidedresourcemanagementandcomprehensiveregionaldevelopmenttoTennesseeValley(seeMap32.2)

Figure 32-2 p758

XIV.Housing andSocial Security

• NewDealhousing policies:– FederalHousingAdministration(1934):

• Buildingindustrystimulatedbysmallloanstohouse-holders:

– For improving their dwellings– Forcompleting new ones

• SopopularitoutlastedageofRoosevelt• Congressbolsteredprogramin1937byauthorizingUnitedStatesHousingAuthority(USHA):

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XIV.Housing andSocial Security(cont.)

– Agencydesigned to lend money tostates orcommunitiesfor low-cost construction

– 650,000 units started, tragically short ofneeds– Collided with opposition fromrealestatepromoters,builders, landlords, andanti-New Dealers

– Still slums areas ceasedgrowing andshrank

• Social Security Act1935:– Unemploymentinsuranceandold-agepensions– Oneofmostcomplicatedandfar-reachinglawsever topassCongress

• Providedforfederal-stateunemploymentinsurancetocushionfuturedepressions

• Providedsecurityforoldage:– Specified categories of retired workers would receive regularpayments fromWashington

– Payments ranged from$10 to$85amonth (raised periodically)– Financed bypayroll taxonemployers andemployees

• Provisionsmadeforblind,physicallyhandicapped,delinquentchildrenandotherdependents

• Republicanoppositionbitter:– “Social Security” must bebuilt upon acult ofwork, not a“cultof leisure,” insisted Hoover

– GOPnational chairman falselycharged thateveryworkerwould have towear ametaldog tagfor life

• SocialSecurityinspiredbyindustrialnationsofEurope• Inurbanizedeconomy,governmentnowrecognizingitsresponsibilityforwelfareofcitizens

• By1939,over45millioneligibleforSocialSecuritybenefits

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• Infuture,othercategoriesadded:– Farmanddomestic workers

» Millions ofpoor menandwomen initially excluded– Incontrast toEurope, wherewelfare programs wereuniversal:

» American workers had tobeemployed» And incertain jobs togetcoverage

XV.ANewDealforLabor

– WagnerAct:• NationalLaborRelationsAct(1935)• Namedaftersponsor,SenatorRobertF.Wagner• CreatedpowerfulnewNationalLaborRelationsBoard:

– Administrative purposes

– Reasserted right of labor toengage in self-organization– Tobargain collectively through representatives of its ownchoice– Considered MagnaCartaof labor, Wagner Actproved tobemajor milestone forAmerican workers

XV.ANewDealforLabor(cont.)

– UndersympatheticNationalLaborRelationsBoard:• Unskilledworkersbegantoorganizeintoeffectiveunions• LeaderwasJohnL.Lewis,bossofUnitedMineWorkers

– Formed Committee for Industrial Organization (CIO)withinskilled-craft American Federation ofLabor (AFL)

– In1936, AFLsuspended CIO– CIO thenmoved into auto industry:

» Resorted tosit-down strike» Refused to leave factorybuilding ofGeneral Motors atFlint,Michigan

» Thus prevented importation of strikebreakers

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– Conservative respecters ofprivate property scandalized– Victory when General Motors recognized CIOas solebargaining agencyfor its employees

• Unskilledworkerspressedadvantage:» USSteelCompany avertedstrike when itgranted rightsofunionization to its CIO-organized employees

» “Little steel” companies fought backsavagely» 1937:Memorial Daymassacre atRepublic SteelCompany plant inSouth Chicago

» After police opened fire, areastrewn with several scoredeadand wounded

• FairLaborStandards Act1938:– AlsoknownasWagesandHoursBill

• Setminimum-wagesandmaximum-hoursforindustriesinvolvedininterstatecommerce

– Goals: 40centsanhour (later raised) and40-hour week

• Laborbychildrenundersixteen(undereighteenifoccupationdangerous)forbidden

• Reformsbitterlyopposedbyindustrialists,especiallytextiles

• Excludedagricultural,service,anddomesticworkers– Meant manyblacks, Mexican Americans, andwomen notbenefit fromact

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• Laborunionizationthrived(seeFigure32.3)– President received valuable support atballot-box from laborleaders and appreciative workers

– CommitteeforIndustrialOrganizationformallyreconstitutedasCongress ofIndustrialOrganizations(newCIO)underJohnL.Lewis• By1940claimedmembershipoffourmillion,including200,000blacks

• JurisdictionalfeudingcontinuedwithAFL:laborseemedmorebentoncostlycivilwarthanonwarwithmanagement

Figure 32-3 p760

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XVI.LandonChallenges“theChamp”

– Upcomingelectionof1936:• DemocratsrenominatedRooseveltonplatformsquarelyendorsingNewDeal

• Republicanshard-pressedtofindacandidate– Settled onhomespun governor ofKansas, Alfred M.Landon– Landon amoderate who acceptedsomeNew Deal reforms butnotpopular SocialSecurity Act

– Republicans condemned NewDealofFranklin “Deficit”Roosevelt for its radicalism, experimentation, confusion, and“frightful waste”

– Landon backedbyHoover (called for“holy crusade forliberty”) and American LibertyLeagueofwealthyconservatives

XVI.LandonChallenges“theChamp” (cont.)

• Rooseveltdenounced“economicroyalists”

– Electionreturns:• LandslideoverwhelmedLandon,whoonlywontwostates—MaineandVermont

• Popularvote:27,752,869to16,674,665• Electoralcount523to8–mostlopsidedin116years• Democratsnowclaimedmorethantwo-thirdsofseatsinHouseandsameproportioninSenate

XVI.LandonChallenges“theChamp(cont.)

– Battleof1936:• MostbittersinceBryan'sdefeatin1896• PartiallyboreoutRepublicanchargesofclasswarfare

– Needyeconomic groups lined upagainst so-called greedyeconomic groups

• CIOcontributedgenerouslytoFDR'scampaign• Manyleft-wingersturnedtoRoosevelt,asthird-partyprotestvotedeclinedsharply

• BlacksswitchedtoDemocraticparty

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XVILandonChallenges“theChamp(cont.)

• Rooseveltwonbecauseheappealedto“forgottenman,”whomheneverforgot

– Somesupporters onlypocketbook-deep: “reliefers”– Roosevelt forgedpowerful andenduring coalition of

» Southerners,

» Blacks, urbanites, andpoor» Marshaled support of“New Immigrants”—mostly Catholicsand Jews—who hadcomeofagepolitically

» In1920s one outofevery25 federal judgeships went toaCatholic

» Roosevelt appointed Catholics tooneoutofevery four

XVII.NineOldMenontheBench

– RoosevelttookpresidentialoathonJanuary20,1937,insteadoftraditionalMarch4:• TwentiethAmendmentratifiedin1933(seeAppendix)

– Swept awaypostelection lameducksession ofCongress– Shortened bysixweeks awkward period before inauguration

• RooseveltinterpretedreelectionasmandatetocontinueNewDeal:

– Tohim, Supreme Court judges were stumbling blocks– Innine major cases involving NewDeal, theyhad thwartedNewDeal reforms seven times

XVII.NineOldMenontheBench(cont.)

– Courtultra-conservative;sixofninejudgesover70• RoosevelthadnotappointedanyonetoCourtinfirstterm

• Somejusticesheldonprimarilytocurb“socialistic”NewDeal

• FDRbelievedvoters(presidentialelectionsof1932and1936andcongressionalelectionsof1934)hadclearlydemonstratedsupportforNewDeal

• ToFDR,Courtobstructingdemocracy

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XVII.NineOldMenontheBench(cont.)

– Roosevelthitonschemetofixproblem:• Provedtobeoneofhismostcostlypoliticalmisjudgments• AskedCongressforlegislationtopermithimtoaddanewjusticetoSupremeCourtforeveryoneoverseventywhowouldnotretire

• Maximummembershipwouldbefifteen• HeallegedCourtfarbehindinitswork—whichprovedtobefalseandbroughtaccusationsofdishonesty

• HeadstrongFDRnotrealizethatCourt,inpopularthinking,hadbecomesacredcow

XVIII.TheCourtChanges Course

– CongressandnationconvulsedoverCourt-packingplan:• FDRvilifiedforattemptingtobreakdelicatechecksandbalancesamongthreebranches

• Accusedofgroominghimselfasdictatorbytryingtobrowbeatjudiciary

• ToRepublicansandsomeDemocrats,basiclibertiesseemedinjeopardy

• Courtsawaxhangingoveritshead:– Justice Owen J. Roberts, aconservative, began tovotewithliberal colleagues

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XVIII.TheCourtChanges Course(cont.)

• In1937,Courtupheldprincipleofstateminimumwageforwomen,reversingits1936decision

• Insucceedingdecisions,CourtbecamemoresympathetictoNewDeal:

– Upheld National LaborRelations ActandSocial SecurityAct

• Roosevelt's“Courtpacking” furtherunderminedwhenCongressvotedfullpayforjusticesover70whoretired:

– Oneofoldest conservatives resigned– Replaced byNewDealer, JusticeHugo Black

– Congressfinallypassedcourtreformbill:• Watered-downversionappliedonlytolowercourts• RooseveltsufferedfirstmajorlegislativedefeatathandsofhisownpartyinCongress

• EventuallyCourtbecamemarkedlymorefriendlytoNewDealreforms

• Successionofdeathsandresignationsenabledhimtomakenineappointmentstotribunal—morethananyofhispredecessorssinceGeorgeWashington

• Clock“unpacked” Court

– Yet inasense,FDRlostbothCourtbattleandwar:• SoarousedconservativesofbothpartiesinCongressthatfewNewDealreformspassedafter1937,yearoffightto“pack” bench

• Withthiscatastrophicmiscalculation,hesquanderedmuchofgoodwillthatcarriedhimtovictoryin1936election

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XIX.TwilightoftheNewDeal

– Roosevelt'sfirsttermdidnotbanishdepression:• Unemploymentpersistedin1936atabout15%,downfrom25%of1933,butstillhigh(seeFigure32.4)

• Recoveryhadbeenmodest• Thenin1937economytookanothersharpdownturn:

– Surprising severe depression-within-the depression thatcritics dubbed “Roosevelt recession”

– Government policies caused nosedive:

» Justasnew SocialSecurity taxesbegan to takeeffect» FDRcutgovernment spending totry tobalance budget

Figure 32-4 p763

XIX.TwilightoftheNewDeal(cont.)

– Rooseveltthendeliberatelyembraced ideasofBritisheconomistJohnMaynardKeynes:• FDRannouncedboldprogramtostimulateeconomybyplanneddeficitspending

• Keynesianism—useofgovernmentspendingandfiscalpolicyto“primethepump” ofeconomyandencourageconsumerspending

• Policybecameneweconomicorthodoxyandremainedsofordecades

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• Roosevelt continued topush remainingreformmeasuresofNewDeal:

• UrgedCongresstoauthorizesweepingreorganizationofnationaladministrationininterestsofefficiency

• Notdone,andthusanotherdefeat• Twoyearslater,CongresspartiallyrelentedandpassedReorganizationAct:

– Gavepresident somepowers foradministrative reforms,including keynew ExecutiveOffice inWhite House

– HatchAct1939:• Barredfederalofficials,excepthighestpolicy-makingofficers,fromactivepoliticalcampaigningandsoliciting

• Forbadeuseofgovernmentfundsforpoliticalpurposes• Forbadecollectionofcampaigncontributionsfrompeoplereceivingreliefpayments

– HatchActbroadenedin1940:• Placedlimitsoncampaigncontributionsandexpenditures

– After some found waysaround it, legislation proveddisappointing

– By1938,NewDeallostitsmomentum:• Rooseveltcouldfindfewnewreforms• Incongressionalelectionsof1938,Republicansscoredvictoriesbutfailedtogaincontrolineitherhouse

• Foreignaffairsincreasinglydominatedpublicdebate

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XX.NewDealorRawDeal?– FoesofNewDealcondemned:

• Allegedwaste,incompetence,confusion,contradictions,andcross-purposes

• Aswellasgraftinalphabeticalagencies—“alphabetsoup,” sneeredAlSmith

• Deploredemploymentof“crackpot” collegeprofessors,leftist“pinkos,” andoutrightCommunists

• ClaimedNewDealerstryingtomakeU.S.A.overinBolshevik-Marxistimageunder“Rooseveltski”

XX.NewDealorRawDeal?(cont.)

• RooseveltaccusedofbeingJewish(“Rosenfield”)andtappingtoomanyJewishleftists(“TheJewDeal”)forhis“DrainTrust”

• Businesspeopleshockedbyleap-before-you-look,try-anything-oncespirit

• “Bureaucraticmeddling”and“regimentation”werebittercomplaintsofanti-NewDealers

• Federalgovernment,withallitsemployees,becameincomparablylargestsinglebusinessincountry

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• Promisesofbudgetbalancingflewoutwindow– National debt in1932 =$19,487,000,000– Skyrocketedby1939 to$40,440,000,000

• Americabecoming“handoutstate;”U.S. stoodfor“unlimitedspending”

• Businessmenbitter:– Accused NewDealof fomenting class strife

– Conservatives insisted laborers and farmersbeingpampered

– Businessmen wantedgovernment offtheir backs

– Private enterprise being stifled by“planned economy,”“planned bankruptcy” and“creeping socialism”

• States' rightsignored,whilegovernmentcompetedinbusinesswithitsowncitizens,under“dictatorshipofdo-gooders”

– Roosevelt'sleadershipdenounced:• “One-mansupergovernment”• HeavyfireagainstattemptstobrowbeatSupremeCourtandcreate“dummyCongress”

– Tried to“purge” Congress ofDemocratswho would notmarch in lockstep with him

– Threesenators whom hepublicly opposed all reelected

• Mostdamning indictment ofNewDeal:– Failedtocuredepression– Floatinginseaofredink,ithadonlyadministeredaspirin,sedatives,andBand-Aids• $20billionpouredoutinsixyearsofdeficitspendingandlending

– Gapnotclosed between production andconsumption– More farmsurplus underRoosevelt than under Hoover– Millions still unemployed in 1939after sixyearsofdrain,strain, andpain

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XXI.FDR'sBalanceSheet– NewDealersstaunchlydefendedrecord:

• Somewaste,butpointedoutthatrelief—noteconomy—hadbeenprimaryobjective

• Somegraft,butarguedithadbeentrivialinviewofimmensesumsspentandobviousneedforhaste

• NewDealrelievedworstofcrisisin1933• Promotedphilosophyof“balancingthehumanbudget”• Washingtonregimetobeused,notfeared• CollapseofAmerica'seconomicsystemaverted• Fairerdistributionofnationalincomeachieved• Citizensabletoregainandretainself-respect

XXI.FDR'sBalanceSheet(cont.)

• Thoughhatedbybusinesstycoons,FDRshouldhavebeentheirpatronsaint

– Deflectedpopular resentments against business– MayhavesavedAmerican system offreeenterprise– Hisquarrel notwith capitalism butwith capitalists

– Purged American capitalism of someof itsworst abuses– Headed offradical swing to left– Claimed thatNewDealdid notbankrupt United States– Massive national debt causedbyWWII,not NewDeal

» National debt =$40billion in1939;$258 billion in 1945

• FDRprovidedboldreformwithoutbloodyrevolution• Upbraidedbyleft-wingradicalsfornotgoingfarenough,byright-wingradicalsforgoingtoofar

– Choosing middle road, Roosevelt has beencalled greatestAmerican conservative sinceHamilton

» Hamiltonian in espousal ofbiggovernment, butJeffersonian inconcern for“forgotten man”

– Demonstrating valueofpresidential leadership, heexercisedpower to relieve erosion ofnation's greatest resource—itspeople

– Helped preserve democracy inAmerica atatime whendemocracies abroad disappearing todictatorship

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• Unwittinglygirdednationforitspartintitanicwarthatloomedonhorizon—awarinwhichdemocracytheworldoverwouldbeatstake

chapter 32 lecture - oak park usd...iv. fdr and the three r's: relief, recovery, reform (cont.)...

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