The Election of 1932 People in the U.S. lacked work, food and Hope. They Elected Franklin Delano Roosevelt. In the 4 months between the election and his inauguration he and group of advisors (The BRAIN TRUST) created…
The First 100 Days In the first hundred days: Lasted from March 9 th to June 16 th 1933. 15 new bills to address the Depression were passed. The role of the government power and control of the economy was dramatically increased. More POWER!!!
The First 100 Days He immediately addressed: the problems of: Banking and finance The mood of the people The crisis in farming The lack of jobs
Banking and Finance Roosevelt declared a banking holiday closing all banks in the U.S. Those that were safe would reopen. Those that were unstable would close. Loans were available to help them. He said when the banks opened they would be safe. (Showed everyone a tangible effort.) Emergency Banking Relief Act Emergency Banking Relief Act allowed the government to inspect banks. These steps restored confidence in banks.
Banking and Finance FDIC- Insured deposits in Banks. Created by the Glass-Steagall Act Federal Securities Act- SEC- regulated the stock market Prevented rigging the market
The Mood of the People Roosevelt gave fireside chats. He spoke to people in a consoling and understanding tone.
The 21 st Amendment Repealed Prohibition- Taxes on Alcohol helped raise revenue.
The Crisis in Farming AAA- Agricultural Adjustment Act Raised prices by lowering production Paid farmers not to produce crops. This made some people REEAALLY mad. People were starving.
Creating Jobs & Helping People AAA- Raised crop prices by lowering production. CCC- Gave jobs to men 18-25. They built roads, canals, parks, and flood control. FERA- Gave $500 million in direct aid to the needy. WPA- Created jobs building schools and public buildings. CWA- created 4 million jobs. 40,000 schools, Rural teacher salaries. 500,000 miles of roads. TVA- Gave power to poor areas in the South. Created flood control and jobs. PWA- Gave money to states to construct schools and community buildings HOLC- Provided loans to people facing foreclosure FHA- Provided money for people to buy homes. NYA- to provide education and jobs to young people.
NIRA- The National Industrial Recovery Act NIRA- The National Industrial Recovery Act Aimed to promote industrial growth by creating codes of fair practice. Included the NRA which set prices for many goods. Workers were granted the right to unionize and to bargain collectively.
The Supreme Court The Supreme Court struck down many key New Deal Programs, saying that they were unconstitutional. AAA They said it should be regulated by the states. NIRA- Gave too much power to the executive branch.
So… Roosevelt tried to appoint 6 new Justices to the court. Used pretense that justices were overworked. Very controversial, unpopular, he failed. Eventually, through resignations, he was able to replace seven new justices in the next four years.
The Second New Deal Chapter 23 Section 2 The Second 100 Days 1935 More laws similar to the 1 st 100 days Labor reforms NLRA- The Wagner Act –guaranteed the right of workers to collective bargaining. NLRB- –solved disputes between business and labor and holds union votes. Social Security Act- –unemployment compensation, aid to families with dependent children (disabilities)
The New Deal Effected… Women Many women were named to important positions in Roosevelts government. –Francis Perkins- Secretary of Labor Women still faced discrimination. They were often fired before men were. Why? 1936- 82% of Americans said that a women should not work if her husband did. Overall however, the number of women in the workplace increased to 15.6% by 1940.
The New Deal Effected… African Americans Many were appointed to key positions. The Black Cabinet Were discriminated against by many New Deal organizations. FDR- was sympathetic but never fully supported civil rights. –D–Didn t support anti lynching laws or ending the poll tax.
The New Deal Effected… Mexican Americans Were guaranteed few rights. Suffered as a result of the failure of agriculture.
Opposition to the New Deal But why would anyone oppose it? If it helped so many, who did it hurt?
Opponents to the New Deal People who felt the government was getting too much power. People who felt the New Deal destroyed the free market. People who felt the government didnt do enough. (Rare)
The American Liberty League Businessmen who opposed the New Deal. The New Deal raised prices of goods and increased labor costs.
The American Liberty League was a U.S. organization formed in 1934 by conservative Democrats such as Al Smith (the 1928 Democratic presidential nominee), John W. Davis (the 1924 Democratic presidential nominee), and John Jacob Raskob (former Democratic National Chairman and the foremost opponent of prohibition), Dean Acheson (future Secretary of State under Harry Truman), along with many industrialists, notably Senator Prescott Bush (father of and grandfather of future presidents )and members of the Du Pont family.U.S.DemocratsAl SmithJohn W. DavisJohn Jacob RaskobprohibitionDean AchesonPrescott BushDu Pont family The League stated that it would work to "defend and uphold the Constitution" and to "foster the right to work, earn, save and acquire property." The League spent between $500,000 and $1.5 million in promotional campaigns; its funding came mostly from the Du Pont family, as well as leaders of U.S. Steel, General Motors, General Foods, Standard Oil, Birdseye, Colgate, Heinz Foods, Chase National Bank, and Goodyear Tire and Rubber Company. It reached over 125,000 members and supported the Republicans in 1936.U.S. SteelGeneral MotorsGeneral FoodsStandard OilBirdseyeColgateHeinz FoodsChase National BankGoodyear Tire and Rubber Company In the year of its founding, 1934, the League was allegedly involved in the Business Plot to overthrow President Franklin Delano Roosevelt. The plot is detailed in congressional testimony by Marine Corp Major General Smedley Butler. According to Butler's testimony, the League was founded intentionally as a para-military coup vehicle, an 'American version' of the 1930s French Croix de Feu. Butler said that he was approached to lead a group of 500,000 veterans to take over the functions of government. The final McCormack-Dickstein Committee report agreed with Butler's allegations on the existence of the plot, but no prosecutions or further investigations followed.(Spivak, Seldes, Archer)Business PlotFranklin Delano RooseveltSmedley ButlerCroix de FeuMcCormack-Dickstein Committee
So Why Does This Even Matter to Us? 1. It expanded the role of government in controlling the economy. 2. It established the role of the government in protecting workers rights. 3. It protected farmers. 4. It created strong government control over banks and finance. Keynesian Economics!! 5. It created Social Security.
The Big Picture!! When a crisis occurs in the United States it usually results in increased government power. Which leads to criticism and a debate about freedom versus security. WWII, September 11 th, Vietnam, etc. etc. The New Deal has become a topic for today, because some current politicians disagree with the precedent. They argue that it was a mistake.
History of Southern Illinois By Paul Kelpe, Illinois Federal Art Project, WPA, ca. 1935-39 Gouache
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