HIST 1378 TTh 2:30-4 PM Lecture 13Outline of Last Lecture FDR and the New Deal- Roosevelt and the Politics of Illusion and Hope- The 3 Rs - First New Deal- Second New DealOutline of Current Lecture FDR and the New Deal (continued)- Roosevelt and the Politics of Illusion and Hope- The 3 Rs - First New Deal- Second New Deal- Military Keynesianism- Recovery in ’37? The Curse of the Balanced BudgetCurrent LectureFDR and The New Deal- New Deal - plan to ease the Great Depression- Roosevelt and the Politics of Illusion and Hopeo Came to office as Democrat- The 3 Rso Relief Government help for people in need (homeless, elderly, no health care)  Soup kitchens, warm blankets, shelters, health careo Recovery  Economic recover, businesses to reopen, jobs to be availableo ReformThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Make sure depression doesn’t happen again, create new laws, rebuild system- First New Deal: Conservative, pro-Business Reformo Roosevelt wanted to save capitalism, wanted to help businesses instead of blamethem for the crisis (had to save industry, agriculture, and banking)o NIRA - National Industrial Recovery Act Felt that overproduction was the problem Wanted businesses to produce less (problem:people don’t have money to buy things)…but theproblem of depression was the problem ofCONSUMPTION. Economy is not fixedo AAA - Agricultural Adjustment Act  Government paid farmers to kill pigs (hogreduction program), dump milkinto sewers in order to cutproduction so prices can go up.(Wow…that’s a terrible idea.People still can’t afford this sohow did this benefit…) Made farm subsidies -government pays you not toproduce goods- Big farmers benefited from thiso SEC - Securities and Exchange Commission (Joseph P. Kennedy) Look after stock marketo FDR separates commercial (buying and selling)/investment (stock firms) banking- Second New Dealo “Thunder on the Left” - said that FDR wasn’t doing enough to help the people who actually NEEDED the help (he helped the rich instead of the poor) o Woody Guthrie - well-known musician who was a communist. Sang songs criticizing bankers. Wrote “This Land is Your Land” emphasizing that the land is not JUST for the richo Will Rogers - comedian who made political satire, spoke in favor of the pooro FDR’s Critics: Sinclair, Townshend, Lewis, Long  Upton Sinclair - created “EPIC” (End Poverty in California), proposes that state purchases empty businesses and farms and give unemployed peoplethese jobs.- This is socialism when you give the workers control of the businesses.- Ran for Democrat and people loved him! Francis Townshend - doctor who worked with elderly, made program for elderly pension John Lewis - union leader, head of mine workers, said that laborers shouldnot vote for FDR Huey Long - populist, wanted socialism in his speech “Share Our Wealth” - some people should not have too much moneyo Social Securityo WPA (Works Progress Administration)  Giving people jobs (public jobs)o Wagner Act - allows workers ability to collective bargaining, strikes, and form labor unions Made National Labor Relations Board Workers go to government to have election for a union (secret ballot) Good idea, but did not end depression BECAUSE FDR did not think Keynes, Wagner Act, etc were good ideas- Military Keynesianismo Judge economy based on employmento If private sector cannot create jobs, then government has too Government is only institution big enough to create jobs- Recovery in ’37? The Curse of the Balanced Budgeto Austerity - you don’t spend money, you don’t run debtso FDR refused to spend money at home to build post office and roads, it would make him look like a socialist, decided to spend money on