4“Brain Trust” – group of FDR’s advisors (professors, lawyers, journalists). Before the inauguration he began working with them on his policies – called the New Deal – 3 goals – immediate relief for the poor/unemployed, economic recovery for businesses near bankruptcy, and financial reform that would prevent future depressions
5The Hundred DaysMarch 9 – June 16, 1933 – period of intense activity when Congress passed 15 major pieces of legislation
6Bank Holiday March 5 – FDR declared a bank holiday – 4 days the banks closed to prevent withdrawals. Banks would receive over a billion dollars from the RFC.Congress - Emergency Banking Relief Act – authorized inspections of the banks – allowed those that were safe to reopen under the supervision of the Federal Reserve. Those unsafe could not reopen. This revived confidence in banks b/c the banks that re-opened were supposed to be sound.FDR - emergency power to regulate credit, currency, and foreign exchange.
7Fireside ChatsRadio addresses that explained his New Deal policies – educated the public, calmed fears, restored confidence.Encouraged people to return their savings to the banks.Chats heard on 150stations by 60 millionFranklin D. Roosevelt's Fireside Chats
8Regulating Banking and Finance Glass-Steagall Act – established the Federal Deposit Insurance Corporation (FDIC) –federal insurance for individual bank accounts up to $5,000.made people feel their money was safe.banks didn’t risk losing the people’s money.
9Federal Securities Act –regulate the stock market. Required corporations to provide complete information on all stock offerings and made them liable for any misrepresentations.Securities and Exchange Commission (SEC) –regulates the stock market – no insider-trading.Regulates the purchase of stock on credit.
10Rural Assistance Agricultural Adjustment Act (AAA) – lower crop productionto increase crop process. The government would pay farmers to leave a certain amount of land unseeded.Also paid hog farmers to slaughter 6 million pigs.Upset the public, but put money in farmers pockets.
11Tennessee Valley Authority (TVA) –renovated 5 existing dams, constructed 20 new ones – created thousands of jobs, provided flood control and electricity.
13Providing Work Projects Civilian Conservation Corps (CCC) – most popular program – young men age 18 – 25 were put to work building roads and bridges, developing 800 state parks, planting trees (200 million planted in the Great Plains to prevent another Dust Bowl), flood control projects. The men were paid $30/month, with $25/month sent back home. Lodging/food provided.
14Public Works Administration – PWA - $3 Public Works Administration – PWA - $3.3 billion to states to create jobs in the construction of schools and other community buildings. Didn’t really work to relieve unemployment, so FDR established theCivil Works Administration – CWA – Nov – 4 million jobs during the winter of ’33 – ’34 – built 40,000 schools, many roads, etc.
15Promoting Fair Practices National Industrial Recovery Act – NIRA – industries – produce only as much as the consumers could afford to buy.Created the National Recovery Administration – NRA – set prices of products (fair competition). Set working hours so that work could be spread out to more people and banned child labor - (16). Guaranteed rights to unionize and bargain collectively.Blue Eagle was the symbol – Philadelphia Eagles got their name from this.
16Food, Clothing, and Shelter Home Owners Loan Corporation – HOLC –government loans to homeownersFederal Emergency Relief Administration – FERA - $500 million in direct relief - money given to states – ½ for food and clothing to the unemployed, aged, and ill, ½ for work relief programs.Headed by Harry Hopkins.This is the beginning of federal welfare
17The New Deal Comes Under Attack Deficit spending – spending more money than the government has coming in in revenue – putting money in the hands of the consumer so they can spend their way out of the depression.Opposition growing to the New Deal. Liberals- New Deal didn’t go far enough to help the poor or to change the economic system. Conservatives – FDR had too much control over agriculture and industry.
18The Supreme Court Reacts 9 elderly Republican men – voting down New Deal programs.1935 – Schecter Poultry Co. vs. United States – NIRA ruled unconstitutional - executive branch stepped over its boundaries when regulating interstate commerce because it was involving itself in local business.1936 – AAA struck down, saying it’s a local matter that should be handled by states, not the federal govt.
19“Court Packing Plan”would allow FDR to appoint up to 6 new justices through a reorganization of the court – 1 for each justice over the age of 70. Senate voted it down.FDR got his wish anyway w/o the reorganization. During his term he was able to appoint7 associate justices and a Chief Justice (Harlan Stone).
20Three Fiery Critics Father Charles Coughlin –– favored guaranteed annual income and nationalization of banks.Dr. Francis Townsend – poor and elderly – provide monthly benefitsHuey Long – Senator from LA – “Share Our Wealth” – all people with incomes over $1 millionwould be heavily taxed with moneygiven to the poor - $5,000/family.
21Section Two The Second New Deal Takes Hold The Second Hundred DaysEconomy improving a little, but unemployment still high (11 million) and production still lagged behind.2nd New Deal, or 2nd Hundred Days – more extensive help for farmers and workers.
22Eleanor RooseveltEleanor Roosevelt – Most active first lady in history – gave speeches, traveled the country.Social reformer – influenced FDR to support minorities and the less fortunate.
23Eleanor Roosevelt - America's most influential First Lady blazed paths for women and led the battle for social justice everywhere By DORIS KEARNS GOODWIN fromEleanor shattered the ceremonial mold in which the role of the First Lady had traditionally been fashioned, and reshaped it around her own skills and her deep commitment to social reform. She gave a voice to people who did not have access to power. She was the first woman to speak in front of a national convention, to write a syndicated column, to earn money as a lecturer, to be a radio commentator and to hold regular press conferences.
24Reelecting FDR1936 Election – Rep – Alfred Landon (Gov. of KS). FDR won big – won all states except Maine and Vermont. Dems also won large majorities in both houses.First time Af-Am voted Dem and 1st time labor unions supported acandidate.
25Helping Farmers2/5 mortgaged their farms, thousands of small farmers still losing their farms1938 – Second AAA – just like the first but didn’t include the tax that was ruled unconstitutional.Resettlement Administration – loans to small farmers to buy land. Government gave equipment and seed to get them started.
26Farm Security Administration – replaced the Resettlement Admin Farm Security Administration – replaced the Resettlement Admin. – helped tenant farmers become landowners and provided camps for migrant workers.
27Roosevelt Extends Relief Works Progress Administration – (WPA ) - provide jobs as quickly as possible for youths, professionals, and other workers.8 million jobs to unskilled workers doing federal construction projects. 850 airports, 651,000 miles of roads, 125,000 buildings, women sewed garments for the poor. FL Keys bridge, Lincoln Tunnel connecting NY to NJ, Fort Knox, finished Hoover Dam.Federal Writers Project –guides to cities, wrote slave narrativesFederal Arts Project –paint city muralsFederal Theater Project – actors toured cities performing
29National Youth Administration – set up to provide jobs, education, counseling and recreation for youth. Students worked part time jobs at their schools, like typing – keep them in school and out of work force if possible. For drop-outs – found other work, like working on highways, parks, buildings.
30Improving LaborNational Labor Relations Act, called the Wagner Act – reestablished the right to collective bargain, the right of workers to join a union, prohibited unfair labor practices (threatening workers, firing union members). Set up the National Labor Relations Board – NLRB – hear testimony about unfair practices and hold votes on union membership.
31Fair Labor Standards Act – 1938 – set maximum hours at 44/week, 40/week after 2 years. Set minimum wage at $.25/hr, $.40/hr by Banned hazardous work under 18. Time and ½ for overtime.
32The Social Security Act 1935 – Social Security Act – 3 parts –old-age insurance for retirees 65 or older and their spouses – ½ funds from worker and ½ for the employer.Unemployment Compensationaid to families with dependentchildren and the disabled –paid for by federal funds.
33Expanding and Regulating Utilities 12.6 % of farms had electricity.Rural Electrification Administration – REA – worked with electric co-ops to get electricity to rural areas (low interest loans). By 1945 – 45%, 1949 – 90% had electricity.Public Utility Holding Company Act – 1935 – outlawed ownership of utilities by multiple holding companies. Hard to enforce b/c of lobbying.
34Section Three The New Deal Affects Many Groups Women Make Their Mark:Frances Perkins – first lady cabinet member – Secretary of Labor.2 female diplomats and a female federal judge.Workplace – still discrimination. NRA even set lower wages for women. CWA hired few women, CCC only men.
35African Americans:100 government positions to AF-Am.Mary McLeod Bethune – head of the Division of Negro Affairs of the National Youth Administration – provide job training. She organized a “Black Cabinet” – gave FDR advice on racial issues.
36Mexican-Americans:Received few benefits, but hoped it would get better.Native Americans:Indian Reorganization Act of 1934 – moved away from assimilation and toward autonomy (independence), gave some reservations to tribal ownership.
37New Deal CoalitionNew Deal Coalition – alignment of diverse groups dedicated to supporting the Dem Party. The coalition – southern whites, urban groups, Af-Am, unionized industrial leaders.
38Labor Unions FlourishUnion members – better working conditions thanks to Wagner Act – made FDR a “friend of labor.”Unions grew to 10 million members.Congress of Industrial Organization – CIO – skilled and unskilled workers.
39Section Five The Impact of the New Deal 1937 – beginning to see an end to the Depression.1939 – New Deal over, FDR watching Europe.Shaping the economy:FDIC – regulates banking.SEC – regulates the stock market.
40New Deal – didn’t end Depression – did create jobs, gave food, money to millions. Govt. did go deeply in debt to do it – deficit –increased $2.9 billion.What ended the Depression? WWII
41Social welfare of its citizens: The Environment: Social Security ActThe Environment:CCC - planted trees, parksTVA – used water power for electricity, prevent floodsAdded national parks, wildlife refuges.