FDR’s First New Deal and 100 first days 

On March 4, 1933, when Franklin Roosevelt became president, the country was in a dire state. One in four workers was unemployed, and 250,000 families had lost their homes the previous year. During the harsh winter of 1932-1933, 1.2 million Americans were homeless, and "Hoovervilles," or shantytowns, appeared across the country. Since 1929, about 9,000 banks had failed, wiping out the savings of 27 million families, including 1,456 banks that collapsed in 1932. Farm foreclosures were at a staggering rate of 20,000 per month. The public demanded action, and even conservative leaders were willing to give Roosevelt broad powers to address the crisis.

Just weeks before his inauguration, Roosevelt survived an assassination attempt in Miami, though Chicago’s mayor was killed. Despite the chaos, Roosevelt reassured the public in his inaugural address, famously saying, "The only thing we have to fear is fear itself."

In his first 100 days, Roosevelt passed 15 major laws that reshaped the economy. He called for decisive action, comparing the crisis to a war. His first priority was the banking system. Roosevelt declared a national bank holiday, closing all banks temporarily. His team quickly drafted the Emergency Banking Relief Act, which allowed stable banks to reopen under government supervision and helped struggling banks reorganize. The act also gave Roosevelt greater control over the Federal Reserve. Congress passed it in just eight hours.

Roosevelt addressed the public directly in his first "fireside chat" on March 12, using simple language to explain his actions. When the banks reopened the next day, Americans showed their trust by depositing more money than they withdrew. One advisor later remarked, "Capitalism was saved in eight days."

Roosevelt also tackled other issues. The Federal Emergency Relief Act provided $500 million to state welfare programs. The Home Owners Loan Act offered federal loans and guarantees to help people keep their homes, issuing over $3 billion in loans by the end of Roosevelt's first term. The Glass-Steagall Act guaranteed bank deposits up to $5,000, separated commercial and investment banking, and gave the Federal Reserve more power to stabilize the economy.

Other key measures included leaving the gold standard to devalue the dollar and ease credit, the Agricultural Adjustment Act to support farm prices and production, the National Industrial Recovery Act to regulate the economy, and the Tennessee Valley Authority Act, which brought government involvement in energy production. These early efforts laid the foundation for economic recovery and renewed public confidence in government action.

Second New Deal 

After facing criticism of the New Deal and setbacks from the Supreme Court, Franklin Roosevelt launched the Second New Deal during his re-election campaign in 1936. This wave of legislation introduced transformative policies that reshaped the country for decades.

One key reform was the Banking Act of 1935, which overhauled the Federal Reserve System. Previously dominated by regional reserve banks like the New York Reserve Bank, the system now had a seven-member Board of Governors overseeing policy, including reserve requirements and interest rates. This allowed the federal government to borrow billions for recovery programs by keeping interest rates low.

Another major initiative was the Emergency Relief Appropriation Act of 1935, which allocated $4.8 billion, the largest expenditure in U.S. history at that time. Much of the funding went to the Works Progress Administration (WPA), led by Harry Hopkins. The WPA employed over eight million Americans, or 20% of the workforce, and built thousands of hospitals, schools, and roads. It also funded the Federal One Project, which provided work for about 40,000 artists, producing murals, guidebooks, concerts, and plays. The WPA also supported oral history projects, including interviews with former slaves, and created the National Youth Administration (NYA), offering jobs to students in high school and college.

 

The Social Security Act of 1935 was another cornerstone of the Second New Deal. It established a safety net for vulnerable populations, including the elderly, unemployed, disabled, and dependent children. The act introduced a pension system funded by payroll taxes, though it excluded many domestic and agricultural workers, disproportionately affecting women and African Americans. It also included unemployment insurance and assistance programs for unwed mothers and those with disabilities. These reforms drew ideas from critics like Father Coughlin and Dr. Townsend, whose movements bolstered support for such programs.

The Wagner Act (National Labor Relations Act) was a significant win for industrial workers. It restored protections lost when the Supreme Court struck down earlier labor laws, securing workers’ rights to unionize and bargain collectively. The act established the National Labor Relations Board (NLRB) to oversee labor disputes and enforce workers' rights. It received strong backing from labor leader John L. Lewis and the Congress of Industrial Organizations (CIO), solidifying labor's alliance with the Democratic Party. The act also helped Roosevelt gain substantial support from unions during the 1936 election.

Through these reforms, the Second New Deal not only provided immediate relief but also laid the foundation for lasting changes in banking, labor rights, and social welfare. Roosevelt's policies established a stronger role for the federal government in protecting workers and supporting vulnerable populations.

Third New Deal

Historians have identified two main ideas for a "Third New Deal" that never fully happened. One idea focused on creating a stronger federal government with more power to plan and coordinate policies. In 1937, FDR tried to push through two major laws to make this happen: the Executive Reorganization Bill and the Court-Packing Bill. The Court-Packing Bill, which would have allowed FDR to add more justices to the Supreme Court, sparked a huge controversy and didn't pass. The Executive Reorganization Bill also faced opposition, and only a weaker version passed in 1939.

Another idea for a Third New Deal aimed to expand welfare programs for people who were struggling, in line with FDR’s statement in 1937 about one-third of the nation being in poor conditions. However, after a sharp economic downturn in 1937-1938, efforts to expand social welfare programs were blocked by a growing conservative movement in Congress.

This recession of 1937-1938 changed the way people viewed the economy. Influenced by British economist John Maynard Keynes, many policymakers realized that cutting back on government spending had hurt the economy. They convinced FDR to increase spending again, especially to help the poor and jobless, which helped pull the country out of the recession. This experience led to the idea that government spending could both help people and boost the economy.

In the end, the Third New Deal didn’t fully materialize because of strong conservative opposition, but the lessons learned during the recession of 1937-1938 led to the belief that government spending (especially during times of economic crisis) could help both reform society and improve the economy. This idea, known as Keynesian fiscal policy, became a key part of the liberal agenda moving forward, especially during World War II, when massive government spending helped end the Depression.

Great Depression Impact on Minorities 

The Great Depression affected nearly every group in America, but African Americans were hit the hardest. African Americans were often “Last Hired, First Fired” and had the highest unemployment rates. They were already in lower-paying jobs, so when the economy collapsed, they had less savings to rely on.

By 1932, about half of African Americans were unemployed. In some Northern cities, white workers demanded that African Americans be fired to make room for white workers. Racial violence increased, especially in the South, where lynching surged from 8 in 1932 to 28 in 1933.

Although African Americans had traditionally voted Republican, they began to shift their support to President Franklin Roosevelt. Roosevelt welcomed African American visitors to the White House and had a number of black advisors. Many African Americans felt a sense of hope and inclusion from Roosevelt's efforts to tackle the Depression, especially after hearing his fireside chats, which made them feel more connected to the government.

However, discrimination still existed in New Deal housing and job programs. Roosevelt, for political reasons, did not fully support the legislation pushed by groups like the NAACP. When World War II began, labor leader A. Philip Randolph threatened to organize a march on Washington to protest job discrimination in defense jobs. In response, Roosevelt issued Executive Order 8802, ensuring that all people, regardless of race, color, or national origin, could participate in the defense efforts.

The effects of the Great Depression on African Americans lasted for many years and led to the growth of African American activism. This activism eventually played a key role in the Civil Rights Movement of the 1950s and 1960s. The popularity of President Franklin D. Roosevelt and his New Deal policies also led many African Americans to switch their political support, becoming a key part of the Democratic Party's voter base.

Alternatives for the New Deals

When Franklin Roosevelt became president in 1933, his New Deal policies had little opposition at first. During his first 100 days, he introduced many programs to help people and stabilize the economy. But as the Great Depression continued and unemployment stayed high, more people started to criticize his ideas by 1934.

One group that opposed the New Deal was the American Liberty League. This group, made up of business leaders, Republicans, and conservative Democrats, thought the government was taking too much control. They believed Roosevelt’s programs went against the Constitution and personal freedoms. In 1934, they published a pamphlet to share their concerns.

Other critics felt the New Deal didn’t do enough to help people. Senator Huey Long from Louisiana said Roosevelt’s policies weren’t helping poor families enough. He created a program called “Share Our Wealth,” which focused on redistributing money to make things fairer. His plan included limiting how much money a person could earn and giving every family a guaranteed income.

Still, the problems of the Great Depression weren’t fully solved. By the end of 1934, 20% of people were still unemployed. Groups like the American Liberty League thought Roosevelt’s programs were too much government interference. Wealthy business owners, like the DuPont family, supported this group.

On the other hand, some people pushed for more changes. Writer Upton Sinclair wanted to use empty factories and farms to create jobs. Governor Floyd Olson suggested the government should control important industries. Senator Huey Long had millions of supporters for his “Share Our Wealth” program, which called for more equality in incomes. Although Long was assassinated in 1935, his ideas inspired other movements.

Others who criticized Roosevelt included Father Charles Coughlin and Dr. Francis Townsend. Coughlin was a priest with a popular radio show. At first, he supported Roosevelt but later said the New Deal didn’t go far enough. Townsend focused on helping older people. His plan suggested giving $200 every month to anyone over 60, funded by a small tax on businesses.

Even though Roosevelt faced criticism, the New Deal changed the role of the government. It showed that the federal government could step in to help people during hard times and created programs that laid the foundation for future reforms.

First New Deal (1933–1934)

  1. Emergency Banking Relief Act (1933): Stabilized the banking system by closing weak banks and reopening sound ones.
  2. Economy Act (1933): Reduced federal salaries and benefits to cut government costs.
  3. Beer-Wine Revenue Act (1933): Legalized light alcohol and set the stage for repealing Prohibition.
  4. Agricultural Adjustment Act (AAA) (1933): Paid farmers to reduce crop production to raise prices.
  5. Tennessee Valley Authority (TVA) (1933): Built dams and power plants to modernize the Tennessee Valley.
  6. Civilian Conservation Corps (CCC) (1933): Employed young men in conservation and infrastructure projects.
  7. Federal Emergency Relief Act (FERA) (1933): Provided direct relief funds to states for the unemployed.
  8. Home Owners' Loan Act (1933): Helped homeowners refinance mortgages to prevent foreclosures.
  9. National Industrial Recovery Act (NIRA) (1933): Set fair labor standards and stimulated industrial recovery.
  10. Public Works Administration (PWA) (1933): Funded large-scale infrastructure projects like bridges and schools.
  11. Glass-Steagall Act (1933): Created FDIC to insure bank deposits and separated commercial from investment banking.
  12. Securities Act (1933): Required truthful information in stock offerings to prevent fraud.
  13. Civil Works Administration (CWA) (1933): Provided temporary jobs in public works during the winter.
  14. Gold Reserve Act (1934): Devalued the dollar to boost exports and centralized gold reserves.
  15. Federal Communications Act (1934): Regulated radio, telephone, and communications through the FCC.

Second New Deal (1935-1939)

  1. Social Security Act (1935): Introduced pensions, unemployment insurance, and disability benefits.
  2. Wagner Act (1935): Guaranteed workers’ rights to unionize and bargain collectively.
  3. Works Progress Administration (WPA) (1935): Created millions of jobs in construction, arts, and public projects.
  4. Resettlement Administration (RA) (1935): Relocated struggling families to better land or planned communities.
  5. National Youth Administration (NYA) (1935): Provided jobs and education for youth.
  6. Banking Act of 1935: Strengthened Federal Reserve’s control over the economy.
  7. Revenue Act of 1935: Raised taxes on wealthy individuals and large corporations.
  8. Soil Conservation and Domestic Allotment Act (1936): Encouraged soil conservation practices on farms.
  9. Rural Electrification Act (REA) (1936): Brought electricity to rural areas.
  10. United States Housing Act (1937): Funded public housing for low-income families.
  11. Fair Labor Standards Act (1938): Established minimum wages, maximum hours, and child labor restrictions.
  12. Food, Drug, and Cosmetic Act (1938): Regulated the safety and labeling of food, drugs, and cosmetics.

  • 1933–1937: First Term (The Great Depression and New Deal)

    • FDR's approval ratings were initially very high as he introduced the New Deal to combat the economic crisis.
    • Public support for his programs, such as Social Security and public works projects, remained strong.

  • 1937–1941: Second Term (Court-Packing Plan and Recession)

    • Approval ratings decreased during this term due to controversies, such as his attempt to expand the Supreme Court (the "court-packing plan").
    • The recession of 1937–1938 also caused some public discontent.
    • Ratings improved later as preparations for World War II began.

  • 1941–1945: Third and Fourth Terms (World War II)

    • Approval increased again with U.S. involvement in World War II, as FDR was seen as a strong wartime leader.
    • His leadership during the Pearl Harbor attack and subsequent war effort earned him widespread support.
    • Approval remained relatively high until his death in 1945.

 

 

Why did FDR's Approval Rating Dropped?

  • Court-Packing Plan (1937)

    • FDR proposed adding more justices to the Supreme Court to gain support for his New Deal programs. Many Americans saw this as an overreach of power.

  • 1937–1938 Recession

    • During his second term, the economy worsened again, known as the "Roosevelt Recession." This made people question whether his policies were truly effective in ending the Great Depression.

  • Opposition to the New Deal

    • Some people, especially conservatives and business leaders, felt the New Deal gave the government too much control over the economy. This created divisions in public opinion.

  • Running for a Third and Fourth Term

    • Breaking the tradition of serving only two terms made some Americans uneasy. Critics accused him of wanting to hold onto power for too long.

  • Wartime Struggles

    • Even though World War II boosted his popularity overall, some setbacks in the war or disagreements about wartime policies caused temporary decline in approval.

  • Fatigue with Leadership

    • By his fourth term, some Americans were simply tired of having the same president for so long, especially as new challenges emerged after the war.

 

Why was FDR's Approval Rating Increased During WWII?

 

  • Quick Response to Pearl Harbor

    • After the attack on Pearl Harbor in 1941, FDR gave a speech and quickly led the country into the war. This united Americans, and many felt he was the right person to lead the war.

  • Boost to the Economy

    • The war created millions of jobs and ended the Great Depression. People felt the improvements in their daily lives and gave credit to FDR for managing the economy during wartime.

  • National Unity

    • In times of war, people often come together to support their leader. FDR’s speeches, like his Fireside Chats, helped people feel hopeful and connected.

  • Winning Battles

    • As the U.S. and its Allies started winning important battles, like D-Day, people saw FDR as a key figure in those successes.

  • Confidence in Leadership

    • Roosevelt’s calm and steady leadership reassured people during a difficult time. Many trusted him to guide the country through the war.

 

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