2.  Main Idea - After becoming president, Franklin Delano Roosevelt used government programs to combat the Depression  After this section, we should be able to:  Summarize the initial steps Roosevelt took to reform banking and finance  Describe New Deal work programs

3.  Republicans knew that President Hoover wasn’t going to win re-election – too many people blamed him for problems  Democrats nominated Franklin Delano Roosevelt  Can-do attitude  Air of friendliness and confidence  Roosevelt won election of 1932 easily

4.  During the waiting period between his election and inauguration, FDR collected a group of advisers known as his “Brain Trust” to formulate policies for his presidency  Roosevelt proposed a new set of policies to alleviate the problems of the Depression  programs would be known as the New Deal

5.  In his first 100 days as president, FDR helped Congress pass 15 major pieces of his plan  By 1933, many Americans had lost faith in the banking system – FDR wanted to restore that  Emergency Banking Relief Act  authorized Treasury Department to inspect banks and let them re-open if they were sound

6.  FDR started giving fireside chats  radio addresses, to help restore people’s confidence  FDR spoke in clear, simple language to explain the problems with the banks  Banks didn’t hold all the money in cash  People should not lose confidence in the banks because of this  Over the next few weeks, people began to return their money to the banks

7.  Glass-Steagall Act  established the Federal Deposit Insurance Corporation (FDIC)  government would insure accounts of up to $5,000  Securities and Exchange Commission (SEC)  regulate stock market  FDR also persuaded Congress to allow the sale of some alcoholic beverages  Goal was to raise money through taxes

8.  Agricultural Adjustment Act  paid farmers to grow less produce and lower the supply  Farmers plowed under acres of crops or destroyed other produce  Many people angered by the destruction of food when many Americans were starving  However, it helped raise farm prices and put more money in farmers’ pockets

9.  Civilian Conservation Corps  put young men to work building roads, parks, planting trees, etc.  Public Works Administration (created as part of the National Industrial Recovery Act)  gave states money to create jobs in construction of schools and other community buildings

10.  The Home Owners Loan Corporation  provided government loans to homeowners who faced foreclosure  Federal Housing Administration  still helps people get loans for home mortgages and repairs today  Federal Emergency Relief Administration  provided direct relief to the needy

11.  By 1935, the first New Deal programs had improved the economy, but not as much as FDR had hoped  Unemployment still high  Production still lagged behind 1920 levels  First New Deal had been very popular  Election of 1936 was a landslide victory for FDR

12.  Works Progress Administration  set out to create jobs for youths, professionals, and other workers  Used $11 billion to create jobs for more than 8 million workers  Built 850 airports, constructed or repaired 651,000 miles of roads and streets, and put up more than 125,000 public buildings  Many women worked in sewing groups to create clothes for the needy  Helped restore dignity for a lot of people – they worked, they got paid

13.  National Youth Administration  created to provide education, jobs, counseling, and recreation for young people  Provided aid to high school, college, and graduate students  In exchange, students worked at part time jobs at their schools

14.  National Labor Relations Act or Wagner Act – reestablished the right for unions to engage in collective bargaining with employers  They could discuss new contracts with their employers together  Employers couldn’t threaten workers, fire union members, or interfere with unions

15.  Fair Labor Standards Act (1938)  Set maximum work hours at 44 per week, decreasing to 40 after two years  Set minimum wage at 25 cents per hour, increasing to 40 by 1945  Set rules for employment of people under 16 and banned hazardous work for anyone under 18

16.  Social Security Act (1935)  created the social security system  Old-age insurance for retirees 65 years and older and their spouses  Unemployment compensation system  Aid to families with dependent children and the disabled  Provided substantial benefits to many Americans