1. The new deal

2. Franklin Roosevelt Becomes president in 1932
Campaign speech promised a “new deal for the American people.”
THREE GOALS: relief for the needy, economic recovery, financial reform

3. Early Accomplishments (first 100 days)
Declared a bank holiday on his first day in office
Emergency Banking Relief Act – Treasury Department inspected banks
Glass-Steagall Act – Established the FDIC ($5,000)
Federal Securities Act – Established the SEC to regulate the stock market

4. Fireside Chats Radio talks about public concerns
Explained his New Deal in plain, clear, simple language
Designed to be informal
Tried to explain the role of the average person within the American economy
Spoke as if he was talking to you face to face

6. AAA – Agricultural Adjustment Administration
Intent was to raise crop prices by lowering production
Government paid farmers to leave a portion of every acre unseeded
Cotton – too far advanced – government paid $200 million to plow under million acres of land
6 million pigs slaughtered.

7. Agricultural Adjustment Administration poster

8. CCC – Civilian Conservation Corps
Put year old men to work building roads, developing parks, planting trees, and helping in soil-erosion and flood control projects.
3 million trained by 1932
Wage was $30/month and $25/month was sent straight home to your family

9. Civilian Conservation Corps poster

10. NIRA – National Industrial Recovery Act
Created the PWA
Provided money to states to create jobs in the construction of schools and community buildings

11. CWA – Civil Works Administration
Addressed unemployment that was not covered by the NIRA and the PWA
Immediately provided 4 million jobs during the winter of 1933/34.
Built 40,000 schools
Built 500,000 miles of roads
Paid 50,000 teachers

12. HOLC (home owners loan corp) and the FHA (federal housing administration)
Provided government loans to homeowners who faced foreclosure
Furnish loans for home repairs
The FHA is still with us today

13. Notice the eagle
in the middle

14. FERA – Federal Emergency Relief Fund
$500 million to provide direct relief for the needy
Half was given to states as direct grants to help furnish food and clothing to the unemployed, aged, and ill
The rest went to support work relief programs

15. Deficit Spending
President Roosevelt agreed to spending more money than the government was receiving in revenue.
FDR believed deficit spending was a necessary evil only to be used in a time of crisis.
Keynes – and influential British economist promoted this idea

16. Deficit Spending Millions of American benefitted
Public confidence rebounded
DEFICIT SPENDING – the government spends more than it receives in revenue
LIBERALS – the New Deal is too small
CONSERVATIVES – spending too much and creating socialism

18. THE SECOND NEW DEAL
FDR called on congress to provide more extensive relief for both farmers and workers
Eleanor had deep humanitarian impulses and also influenced him
Reelected in 1936

19. WPA (works progress admin)
Spent $11 billion dollars to create 8 millions jobs for mostly unskilled workers.
Built 850 airports
Constructed or repaired 651,000 miles of road
Erected 125,000 public buildings
Women sewed 300 million garments for the needy

21. NYA (National Youth Admin.)
Created specifically to provide jobs, education, counseling, and recreation for young people.
Provided student aid to high school, college and graduate students
In exchange students worked part time at their schools

22. NYA Journalism Students

23. NYA Auto mechanics

27. CRITICS Huey Long is considered to be the most serious critic
Senator from Louisiana who was running for president
“Share-Our-Wealth” clubs
1935 – 27,000 S.O.W clubs with 7.5 million members
Long was assassinated by a lone gunman

28. Lasting Effects Reformed banking and finance
Government takes a more active role in the economy
Workers benefit from labor standards
Social security provides for the needy
Conservation efforts preserve the environment

29. Success!