New Deal Essay Outline

Thesis is- Hoover made little progress during his time as president but he took action too late. Roosevelt on the other hand took action and his actions were a success.

Talk about in body Paragraphs what is below

Judgement of the "Hows" (Successes / Failures / In-between)


Relief: Emergency Banking Act, FDIC, FERA, which produced the Civil Works Admin. that quickly provided some jobs. Fast immediate actions that addressed hunger and poverty.
Reform: SEC, CCC, AAA, PWA - actions that focused on banking, farming and labor reforms.
Recovery: NRA, TVA, Wagner Act, Social Security - long-term actions that focused on fixing problems of the past so the future would be better.

Consider the success/failure of Hoover's philosophy and programs.

Herbert Hoover's Attempts to Deal with the Great Depression

Philosophy of Government: Believed that a chief function of government was to encourage voluntary cooperation among competing interest groups; believed that the federal government should guide relief measures but not directly participate in them.

0. Had Congress authorize $500 million for Public Works Programs (Hoover Dam is an example of this federal stimulus)
0. Reconstruction Finance Corporation (RFC) - Government lends money($2 billion) to insurance companies, banks, agricultural organizations, railroads, and state and local governments (Trickle Down theory) - Good example of government involvement in economy but too little, too late.
0. Federal Home Loan Bank Act - Lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.


Consider FDR's programs:

Relief: Emergency Banking Act, FDIC, FERA, which produced the Civil Works Admin. that quickly provided some jobs. Fast immediate actions that addressed hunger and poverty.
Reform: SEC, CCC, AAA, PWA - actions that focused on banking, farming and labor reforms.
Recovery: NRA, TVA, Wagner Act, Social Security - long-term actions that focused on fixing problems of the past so the future would be better.

Summary of New Deal:

Did not end the Great Depression
Many agricultural problems unsolved, especially for southern Blacks and tenant farmers
Did restore national hope
Controls were built into the economy to avert future crises
--Federal Securities Act of 1933 and SEC (1934)
The Government as “broker state” between states. (TVA)
Restoration of confidence in U.S. government and economy—but both different than before 1932

Successes of the "Hundred Days"

Banking
TVA and CCC
Farmers
Labor

Restored confidence and stopped investors pulling money out of the banks.
Banking measures saved 20% of homeowners and farmers from repossesion.
Farmers were 50% better off under AAA by 1936.
TVA brought electrical power to underdeveloped areas.
Public Works Administration created 600,000 jobs and built landmarks like San Francisco's Golden Gate Bridge and the Supreme Court Building.

Backlash: Critics of the New Deal:

Critics: Huey Long and Father Coughlin
Legislation and anti-union violence
Court Packing attempt by FDR
New Deal too complicated - too many codes and regulations
Government should not support trade unions; not support calls for higher wages - allow free market to deal with these issues.
TVA creates unfair competition with private businesses.
New Deal schemes like economic programs in the U.S.S.R. - The U.S. is a democratic, free-market.

Court Packing plan by FDR
Anti-union violence

Despite opposition from Republicans and the business community, FDR had the support of voters. He won the 1936 election with the highest margin of victory ever to that point.
He stated: "Everyone is against the New Deal except the voters."


TVA
Authorized in 1933, the Tennessee Valley Authority was envisioned as much more than a series of dams on the Tennessee River and its tributaries. The TVA was expected to have a significant impact on local conservation and environmental health concerns in the region and to contribute to its social and economic improvement. The TVA was controversial from the outset, because it was a federal electrical service that competed with private power interests.


Packing the Supreme Court

Supreme Court Rules NRA unconstitutional in Schechter Poultry Corporation v. U.S. (1935) AAA and other programs would also be ruled unconstitutional.

U.S. found the company in violation of NRA codes because:
It sold diseased chickens
Filed inflated sales claims
Exploited workers
Threatened government workers

Reasoning for decision:
The poultry company was a small company - and most small firms objected the most to limits on hours and wages
Supreme Court Justice Charles Evans Hughes for the majority: “Extraordinary conditions do not create or enlarge constitutional power.”
Congress cannot relegate power to the executive branch, even in an emergency
NRA infringes on “freedom of contract,” through industrial price and wage codes


Supreme Court ruled 5-4 that the federal government overstepped its bounds. NRA unconstitutional. Took power from the states.

FDR decides to "pack" the court with 6 more justices favorable to him.
Constitution doesn't specify number of justices. Since 1869 court had always had 9.
Feb. 1937: FDR asks Congress for power to appoint an additional judge for every current judge over 70, who hadn't retired. (Judiciary Reorganization Bill of 1937) (Court-Packing Plan)
Oops! : Public turned on him. That separation of powers idea. He is acting like a dictator.
Conservative politicians had a great excuse not to support his programs.
Moot point: Court began upholding his other New Deal programs. His biggest critic on the bench retired in May 1937, leaving FDR with a 6-3 majority.
The fight left FDR politically weak. Opponents learned they could "attack" him and still be re-elected.


1937 Recession and 1938 Election


Sept. 1, 1939: World War II begins as Germany attacks Poland - War material orders from the allies helped support American businesses. Once the U.S. entered, unemployment dropped dramatically.


Counter-argument (Consider the opinions of the critics of the "New Deal")

Make a list of the main complaints and suggestions of those who felt the New Deal did not do enough.


Huey Long and his "Share the Wealth" program

Former Governor of Louisiana (1928-32)
Senator during New Deal

Very popular with the common person
Helped build roads, hospitals, provided textbooks and lunches to school children, went after big businesses, such as Standard Oil

"Share the Wealth" program
Large tax on large incomes
100% tax on incomes over $1 million
Redistribute income, pay for public works, provide people with jobs.
National minimum wage
Shortened work week
Immediate payment of WWI bonuses
"Everyman is a King."
Long is assassinated in Sept. 1935, removing possible threat to FDR's second term.