Franklin D.
Roosevelt
and the New Deal
Redefined Democracy:
Political Rights

Economic Security

Social Justice
Hoover’s Downfall
 lassez-faire policies
 believed in a
balanced national
budget
 seen as a “do-nothing
president”
 Americans turn
against him: Bonus
Army & Hoovervilles
Franklin D. Roosevelt
 Americans see him as man of
action, strong leader
 Friendly, approachable, confident
 Used the press to advantage
 Open to new ideas
 Two-term governor of New York
 Cousin of Teddy Roosevelt
 Results: landslide victory for
Democrats (both presidency and
Congress)
FDR vs Hoover
1932 Election
The “Brain Trust”
- FDR worked with a group of
experts to create New Deal
Program
- This group of experts
(professors, lawyers, journalists,
social workers ) became known
as the “Brain Trust”
FDR Assumes the Presidency
 March 1933: country is
virtually leaderless, banking
system has collapsed
 20th Amendment (Feb. 1933)
moved presidential elections
from March to January (effort
to fix “lame duck” period)
 FDR Inaugural address: “The
only thing we have to fear is
fear itself….”
3 Goals of the New Deal
 Relief: immediate help for
the needy, jobs for the
unemployed, protection for
farmers from foreclosure
 Recovery: get the
economy moving again
 Reform: regulate banks,
abolish child labor, conserve
farm lands
First Hundred Days
 March 9 – June 16,
1933
 Congress passed
more than 15 major
pieces of New Deal
legislation
 Significantly
expanded federal
government’s role
in the nation’s
economy
New Deal Programs: Alphabet
Soup
Relief: short-term, get people through until economy
recovers
Bank Holiday: closed all banks; could not re-open until
government inspectors declared bank sound
Federal Emergency Relief Act (FERA)
Civilian Conservation Corps (CCC)
Works Progress Administration (WPA)
Recovery
 National Recovery Administration: asked businesses to
voluntarily follow codes that set standard prices,
production limits, minimum wages
 Agricultural Adjustment Acts:
- first AAA: gov. paid farmers to plant fewer crops
- second AAA: gov. bought farm surpluses, stored in
warehouses until prices went up
Reform
 1933: Federal Deposit Insurance Corporation (FDIC):
insured deposits so people would not lose their money if
bank failed
 1933: Tennessee Valley Authority (TVA): built
government-owned dams to control flooding, bring
electricity to poverty-stricken Tennessee River Valley
 1934: Securities and Exchange Commission: regulate stock
market to prevent fraud and another crash
 1935: Social Security Act: gave workers unemployment
insurance, pensions, insurance to families if workers died
early
Fireside chats – radio talks
about issues of public concern;
explained New Deal; Americans
felt like FDR
was speaking
directly to them; gave them hope
and confidence in leadership
Prohibition Repealed - 1933
21st Amendment: ends
Prohibition
-government can collect
taxes on liquor, use it to
help national economy
Concerns About the New
Deal
- policy of deficit spending
(spending more money than
government receives in revenue)
- FDR felt this was a necessary
evil that had to be used to help
fix economic crisis
- supported by British economist
John Maynard Keynes
- opposite of laissez-faire
Criticisms of Conservative
Opponents
 American Liberty League
 said New Deal violated rights of individuals and property
 added to national debt
wasted money on relief
and encouraged idleness
 Gave the president too much power
FDR Opponents: Senator Huey
Long (Louisiana)

planned to run for president

Advocated Share-Our-Wealth plan

guaranteed annual income of at least
$5,000 for every American

financed by confiscating wealth of people
who made over $5 million per year

Slogan: “Every Man a King!”

Very popular – 1935 claimed 7.5 million
members of Share-Our-Wealth clubs

Killed by Dr. Carl Weiss at a rally
1936 Election
Greatest Threat to New Deal:
US Supreme Court
 1935 & 1936
- National Industrial Recovery Act (NIRA) & Agricultural
Adjustment Act (AAA) ruled unconstitutional
(NIRA = gives president power to regulate businesses that operate
within states)
- Supreme Court rules that Congress cannot give
presidents more power than the Constitution gives
them (even during national emergencies)
FDR Attempts to Protect New Deal
 FDR afraid Supreme Court might rule that other New
Deal programs are unconstitutional
 He tries to protect New Deal programs by:
 1937: Court-Packing Scheme
- plan says presidents can add a new Justice for every
Justice over 70 ½ yrs old
- would increase court from 7 members to 15
- FDR would have been able to add SIX new Justices
Legacy of New Deal on
Government
Responsibilities of government:
-health, welfare, security, & protection & education
of citizens
-make sure national economy runs smoothly
Expansion of democracy:
-concept of democracy now includes economic
security & social justice in addition to political rights
Role of government:
-more involvement in citizens’ lives; more
regulations, increased taxes to pay for government
programs