Roosevelt Administration

Roosevelt Administration Great Depression

By far, the most critical issue of the 1932 election was the Great Depression which had beset America in late 1929. Incumbent President Herbert Hoover believed that the federal government should be fiscally responsible for avoiding making the situation worse and that it was not the federal government's role to provide direct relief. The recently unemployed, homeless, and hungry reviled Hoover as insensitive and uncaring. These were not people who had lived on a charity before, but the practical reality was that they needed help. Roosevelt's promise to change course and become directly involved in their plight won him and a majority of Democratic congressional representatives a landslide victory over Hoover and Republicans.

Fig.2 - New Deal Poster

Roosevelt Administration: New Deal

During his 1932 election campaign, Roosevelt promised to deliver a new deal for the American people suffering from the Great Depression. With some cities facing 80 to 90% unemployment levels, many believed that the government needed to act. Roosevelt made bold statements in his inaugural address, comparing the situation of war and the Great Depression to a foreign enemy. With Democratic majorities in both houses of Congress and broad public support, Roosevelt was empowered to take drastic action as the nation had never before seen.

First Hundred Days

Roosevelt wasted little time in acting on his promised New Deal. The following new programs were set up in his first three months.

• Agricultural Adjustment Administration (AAA)
• Public Works Administration (PWA)
• Civilian Conservations Corps (CCC)
• Tennessee Valley Authority (TVA)
• Federal Deposit Insurance Corporation (FDIC)
• Securities and Exchange Commission (SEC)

Functions of New Deal Agencies

The PWA and CCC provided needed temporary jobs to get people back to work. The FDIC protected investors from losing everything when they deposited money, and the SEC was set up to prevent something like the stock market crash from ever happening again. The AAA stabilized crop prices, while the TVA provided cheap electricity and protected against flooding in the seven-state Tennessee Valley region.

The Second New Deal

While the first New Deal was focused on broadly getting the economy back on track and providing temporary employment, the second New Deal concentrated on the long-term improvement of workers' lives. The bedrock of the American social safety net was carved with the second New Deal. Labor unions were strengthened by the Wagner Act, which established the National Labor Relations Review, Board. The Fair Labor Standards Act set a minimum wage and regulations on how many hours a worker must put in. The Social Security Act created new benefits for the retired, widows, unemployed, and disabled.

Roosevelt Administration Policies

Did the New Deal directly end the Great Depression? Most historians would say that the Great Depression didn't end until the massive military spending around WWII came. Nevertheless, by 1941 the economy had significantly recovered, unemployment was down, and the gross domestic product was up. Separating the effects of the New Deal and WWII became tricky as the US economy benefited from supporting the war in Europe by 1940, well before America was directly involved. The New Deal may not have been an instant and total cure, but it significantly improved morale and the lives of workers and prepared the economy for when WWII did arrive.

New Deal Criticism

While many benefitted from the New Deal, some criticized it as socialism. The wealthy bemoaned new taxes to pay for the New Deal and "soak the rich taxes." Some elements of the New Deal were even declared unconstitutional and repealed, such as the Agricultural Adjustment Act. The administration attempted to counter by introducing the "court-packing scheme," a plan to have Congress pass legislation allowing FDR to replace any Supreme Court Justice at 70. Congress did not pass the legislation, but the Supreme Court shortly ruled in the administration's favor on several constitutional challenges to New Deal programs.

Fig.3 - FDR Delivers Fireside Chat

Fireside Chats

A crucial part of Roosevelt's success was his ability to relate to ordinary people. His predecessor, Herbert Hoover, had seemed cold and removed from their problems. Roosevelt utilized the medium of radio in a way. He held what was called his "fireside chats." In the radio broadcasts, Roosevelt spoke directly to the people in a common language. His reassurance that the nation was moving in the right direction and his relatability convinced the public that he would help them.

US Enters WWII

Isolationism was extremely popular in the United States when FDR entered office. Americans mostly felt that entering WWI had been a mistake. The loss of life for what was considered solely foreign interests seemed pointless, and conspiracy theories had even begun to crop up to explain why the US entered the conflict. Getting Americans to view the fight as their own would prove a challenge.

Foreign Policy of FDR before WWII

Roosevelt worked to improve foreign relations and international cooperation. He created new trade agreements with other nations to reverse the controversial tariffs enacted by Hoover. FDR also entered into agreements with France and Britain on currency stability. Congress was still working towards isolationism at the time and passed the Neutrality Act in 1935 to limit the ability of the United States to become involved in foreign conflicts.

Pearl Harbor

Roosevelt's interest in WWII was primarily in aiding the British and France against Germany, yet Japan drew the United States directly into the conflict. As Japan was an ally of Germany, FDR ended trade with the country. It is debated whether FDR purposely allowed renegotiations to break down to provoke Japan into declaring war and giving the United States a reason to enter WWII. The administration was undoubtedly aware that some attack was coming, as they had intercepted Japanese messages. On December 7, 1941, Japan destroyed most of the Pacific Fleet and killed 2,500 people at Pearl Harbor, Hawaii, and the United States declared war the next day.

Roosevelt Administration Years

No other president has been elected three, let alone four times. Many felt that it was appropriate for a President to step aside after their second term as George Washington had done, but this was not a legal requirement. Due to the increasing international conflict in Europe, he made the case that a steady hand was needed to steer the United States through the coming conflict.

Fig.4 - FDR with Allied Leaders

War Leadership

Roosevelt was a leader in solidifying the alliance of WWII. He often met directly, in person, with British leader Winston Churchill to coordinate the war effort. At home, he spoke to Americans directly through the radio to gain their support for the war effort. The war didn't just take the place of the New Deal in his fireside chats; it also provided the economic boost and employment that finally ended the Great Depression.

Roosevelt and Stalin

Although the USSR would soon become the United States' primary adversary after WWII, FDR had sought to make a friend with Soviet leader Joseph Stalin. The USSR took much of the military aid offered by the US but did not do much to coordinate its military activities. In Tehran in 1943 and Yalta in 1945, the "big three" of the US, Britain, and the USSR met on friendly terms to discuss the war and improve cooperation. However, promises that Stalin made at the Yalta about free elections after the war were never honored.

Ill Health and Death

In his last years, FDR suffered from a condition that caused the hardening of the arteries. His health was obviously in decline, which political opponents used against him. Shortly after Yalta, he had to make a speech to Congress while sitting down. On April 12, 1945, he died of a cerebral hemorrhage just months into his final term and shortly before the war's conclusion. His Vice President, Harry Truman, assumed the presidency.