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| | == FDR, the New Deal, and Preparing for War == | | == FDR, the New Deal, and Preparing for War == |
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| − | We have learned that failures in the economy often determine the outcome in the presidential election, as in 2008. The presidential election in 1932 was no different: the Great Depression resulted in a complete transfer from the Republican Party to the Democratic Party, and Democratic Party candidate Franklin Delano Roosevelt won the election. He took his victory as a "mandate" to enact sweeping new legislation in order to lift the country out of the depression. In a nutshell, President Roosevelt (who is often called simply "FDR") started massive federal works and relief programs, and refused to let retire from the presidency after two terms as every other president did (beginning with George Washington). | + | We have learned that failures in the economy often determine the outcome in the presidential election, as in 2008. The presidential election in 1932 was no different: the Great Depression resulted in a complete transfer from the Republican Party to the Democratic Party, and Democratic Party candidate Franklin Delano Roosevelt won the election. The Democratic Party also won a huge number of seats in Congress: 90 seats in the House and 13 seats in the Senate. FDR took his victory as a "mandate" to enact sweeping new legislation in order to lift the country out of the depression. In a nutshell, President Roosevelt (who is often called simply "FDR") started massive federal works and relief programs, and refused to let retire from the presidency after two terms as every other president did (beginning with George Washington). |
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| | President Roosevelt's program became known as the "New Deal," a term that is synonymous with expanded government programs supposedly to help the economy and the unemployed. The New Deal consists of new laws (legislation) and gave jobs to people. Critics of the New Deal point out that if the jobs were really needed, then free enterprise (private companies) would be doing it already. | | President Roosevelt's program became known as the "New Deal," a term that is synonymous with expanded government programs supposedly to help the economy and the unemployed. The New Deal consists of new laws (legislation) and gave jobs to people. Critics of the New Deal point out that if the jobs were really needed, then free enterprise (private companies) would be doing it already. |
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| | The Trade Agreements Act became law in 1934. It amended the Tariff Act of 1930 (Smoot-Hawley Tariff Act) to give authority to negotiate mutual tariff reductions. Many felt that high tariffs were interfering with economy recovery from the Great Depression. | | The Trade Agreements Act became law in 1934. It amended the Tariff Act of 1930 (Smoot-Hawley Tariff Act) to give authority to negotiate mutual tariff reductions. Many felt that high tariffs were interfering with economy recovery from the Great Depression. |
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| | + | Historically, the president's political party almost always loses seats in Congress in the "midterm" election two years after the presidential election. This is because the public grows tired and disgruntled with the performance of the president, and the voters express their discontent by voting for the opposite party. But in 1934, FDR's Democratic Party was a rare exception in that it gained seats in Congress: 9 in the House and 9 in the Senate.<ref>http://hnn.us/articles/1094.html</ref> |
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| | + | The victory by FDR and the Democrats encouraged them to continue their New Deal in 1935. They established the Works Progress Administration, which employed 8.5 million persons between 1935 and 1943 building public works. They also passed the Wagner Act in 1935. It gave unions greater rights and promoted their growth. The Wagner Act also prohibited employer efforts to prevent unionization. It established the National Labor Relations Board to handle disputes. |
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| − | Works Progress Administration employed 8.5 million persons between 1935 and 1943 building public works
| + | At the same time, a fiery labor organizer named John Lewis started the Congress of Industrial Organizations (CIO), which focused on combining garment trade unions (workers unions) and later included auto and steelworkers. Eventually it merged with the AFL in order to become the "AFL-CIO" that is often heard today. |
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| − | Wagner Act in 1935: gives unions rights, promotes their growth; prohibit employer interference, estab. Nat'l Labor Relations Board"
| + | In 1935, the biggest social program of all then passed: the Social Security Act. It provided payments to the elderly by taxing the wages on young workers and employers. It has become a huge liability today, when there are so many old people and relatively few young workers, and the government has repeatedly increased the amount of the tax in order to pay for the "Social Security." |
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| − | Social Security Act 1935: provided old age insurance from tax on wages and tax on employers; biggest federal program now
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| − | Congress of Indust. Organ. (CIO) "1935: labor group formed by fiery John Lewis and garment trade unions, later included auto and steelworkers"
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| | Fair Labor Standards Act in 1938: abolished child labor and set national minimum wage ($.40 per hour) and the 40 hr week | | Fair Labor Standards Act in 1938: abolished child labor and set national minimum wage ($.40 per hour) and the 40 hr week |